Trade and other receivables acquired had gross contractual amounts of R452 million of which R10 million was doubtful. None of the goodwill
is expected to be deductible for tax purposes. Non-controlling interests have been calculated based on their proportionate share of net assets.
Details of contingent consideration
The contingent consideration requires the group to pay the vendors an additional total amount of R75 million over three years if the acquired
businesses’ net profit exceeds certain earnings targets.
Acquisition costs
Acquisition costs for acquisitions concluded during the year amounted to R7 million and have been recognised as expenses in profit or loss
within business acquisition costs.
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Impact of the acquisitions on the results of the group |
Total
Rm |
|
RTT Health
Sciences
Rm
|
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Orwell Trucks
Limited
Rm
|
|
KWS Carriers
(Pty) Ltd
Rm |
|
Individually
immaterial
acquisitions
Rm
|
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From the dates of acquisition, the acquired businesses
contributed: |
|
|
|
|
|
|
|
|
|
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Revenue |
1 514 |
|
697 |
|
324 |
|
246 |
|
247 |
|
Net profit as reported by entity |
67 |
|
31 |
|
6 |
|
9 |
|
21 |
|
Funding costs and amortisation of intangible assets arising on the business combinations |
(34) |
|
(22) |
|
(7) |
|
(3) |
|
(2) |
|
Net profit |
33 |
|
9 |
|
(1) |
|
6 |
|
19 |
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Had all the acquisitions been consolidated from 1 July 2012, the group’s revenue and net profit would have been R94 240 million and
R3 710 million respectively, with the new acquisitions contributing additional revenue of R1 858 million and net profit of R24 million. The net
profit of R24 million has been reduced by the funding costs of R3 million on the cash consideration and by the amortisation of intangible assets
arising on the business combinations of R30 million. |
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