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NOTES TO THE COMPANY ANNUAL FINANCIAL STATEMENTS
CONTINUED
For the year ended 31 May 2014
248
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
2014
R’000
2013
R’000
14.
EMPLOYEE COMPENSATION AND BENEFIT EXPENSE
Salaries and wages
44 878
41 461
Bonuses
3 583
27 770
Equity compensation benefit
4 972
8 138
Other
2 269
2 804
55 702
80 173
The average number of employees for the year is 36 (2013: 36).
15.
OPERATING LOSS
The following items have been charged/(credited), in arriving at operating
loss:
Acquisition-related costs
2 901
98
Audit fees – other
867
474
Audit fees – services as auditors
5 217
4 205
Consulting fees
7 147
3 968
Dividend received**
(10 107)
—
Foreign exchange profit**
(2 908)
(95)
Impairment of loans and investments*
30 136
61 323
Insurance
1 041
1 118
Legal fees
623
432
Management fees received**
(79 944)
(107 380)
Operating lease rentals – premises
(1 826)
(484)
Rental paid
11 871
11 871
Rental recovery
(13 697)
(12 355)
Overseas travel
1 671
1 578
Profit on disposal of property, plant and equipment**
(23)
(73)
Repairs and maintenance
1
6
* An impairment loss of R30.1 million (2013: R54.7 million) was recognised in the current year relating to the impairment of
related party loans in line with our stated accounting policies (refer to note 21). The related party loans have been fully
impaired due to the continuing trading losses in these entities which are not considered to be immediately recoverable.
In the prior year an impairment loss of R6.3 million was recognised on a loan to a third party.
** Included in other income.