> 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.

R million Individually
immaterial
acquisitions		  
Assets    
Intangible assets 113  
Property, plant and equipment 52  
Transport fleet 14  
Investments, loans and associates and joint ventures 46  
Inventories 67  
Trade and other receivables 160  
Cash resources 89  
  541  
Liabilities    
Net income tax liabilities 31  
Interest-bearing borrowings 46  
Trade, other payables and provisions 164  
  241  
Acquirees' carrying amount at acquisition 300  
Non-controlling interests (27)  
Net assets acquired 273  
Purchase consideration transferred 352  
Cash paid 331  
Contingent consideration 21  
Excess of purchase price over net assets acquired 79  

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
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.

Other details
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.