> Business combinations during the year
A number of businesses were acquired during the year to complement existing businesses. These businesses are individually and collectively immaterial in terms of size and value. The fair value of assets acquired and liabilities assumed at the acquisition date were as follows.
|Property, plant and equipment
|Investments, loans and associates and joint ventures
|Trade and other receivables
|Net income tax liabilities
|Trade, other payables and provisions
|Acquirees' carrying amount at acquisition
|Net assets acquired
|Purchase consideration transferred
|Excess of purchase price over net assets acquired
Details of contingent consideration
The contingent consideration requires the Group to pay the vendors an additional amount of R21 million over three years if the entities’ net profit after tax exceeds certain profit targets.
Acquisition costs for business acquisitions concluded during the year amounted to R9 million and have been recognised as an expense in profit or loss in the ‘Other non-operating items’ line.
Impact of the acquisitions on the results of the group
From the dates of acquisition the businesses acquired during the year contributed revenue of R1 071 million, operating profit of R22 million. Had all the acquisitions been consolidated from 1 July 2015, they would have contributed revenue of R1 588 million, operating profit of R3 million. The Group’s continuing revenue for the year would have been R116 255 million, operating profit would have been R5 874 million.
Trade and other receivables had gross contractual amounts of R167 million of which R7 million was doubtful. Non-controlling interests have been calculated based on their proportionate share in the acquiree’s net assets. None of the resulting goodwill is deductible for tax purposes.