Wrap Text
Condensed consolidated provisional financial results for the year ended 31 March 2018
PBT Group Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1936/008278/06
JSE share code: PBG
ISIN: ZAE000227781
Condensed consolidated provisional financial results for the year ended 31 March 2018
Notes to the condensed consolidated provisional financial statements
Basis of preparation and accounting policies
Statement of compliance
The condensed consolidated provisional financial statements are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for provisional reports and the requirement
of the Companies Act of South Africa. The JSE Limited Listings Requirements require provisional
reports to be prepared in accordance with the framework concepts and the measurement and
recognition requirements of International Financial Reporting Standards ('IFRS') and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial
Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum,
contain the information required by IAS 34- Interim Financial Reporting. The accounting policies
applied in the presentation of the condensed consolidated provisional financial statements are in
terms of IFRS and are consistent with those presented in the previous consolidated financial
statements.
These condensed consolidated provisional financial statements were prepared under the
supervision of the Financial Director, AM Louw. The Board of Directors approved these financial
statements on 13 July 2018.
Judgements and estimates
Preparing the financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets
and liabilities, income and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated provisional financial statements, significant
judgements made by management in applying the Group's accounting policies and key sources of
estimation uncertainty were the same as those that applied to the consolidated financial
statements in the prior year.
Related party transactions
PBT Group Limited and its subsidiaries ("the Group" or "the Company"), in the ordinary course of
business, entered into various intercompany transactions with related parties. The Company has
related party relationships with subsidiaries and with its key management personnel. There were
no significant changes to these relationships.
Subsequent events
There were no material events subsequent to the reporting date except for the Circular released
for the disposal of Prescient Capital Pty Ltd and its subsidiaries ('Prescient Capital'). Please refer
to note 2 and below for the details of the transaction.
Review of operations
During the period under review, PBT Group Limited entered into an agreement with a consortium
to dispose of Prescient Capital, which does not form part of the Group's core operations. A
circular was released on 23 March 2018 containing the details of the proposed disposal. The date
of posting the supplementary circular, as announced via SENS on 4 April 2018, will be announced
in due course.
The income and expenses associated with Prescient Capital is disclosed as a loss from discontinued
operations in the condensed consolidated provisional statement of profit or loss and other
comprehensive income. The comparative profit from Prescient Capital for the prior year has been
restated to reflect as profits from discontinued operations in the comparative period. The
corresponding earnings per share and headline earnings per share have also been reflected as a
split between continuing and discontinued operations.
- Total loss after tax from continuing operations for the period was R139.4 million
(March 2017: R33.1 million) with loss before tax for continuing operations being R117.4 million
(March 2017: R7.8 million).
- Headline loss per share was 1.55 cents per share (March 2017: earnings 4.62 cents per
share).
- Headline loss per share for continuing operations was 1.35 cents per share (March 2017:
0.8 cents per share).
Headline loss per share for discontinued operations was 0.2 cents per share (March 2017:
earnings 5.42 cents per share).
The weighted average number of shares in issue for the 12 months ended 31 March 2018 was
1 499 205 494 (March 2017: 1 619 927 367).
In terms of International Financial Reporting Standards, the Group performed an impairment test
on Goodwill based on value-in-use and an impairment charge of R118.3m was recognised. Refer to note
3 for further details.
South Africa and Australia
The South African operations continued to produce satisfactory growth in revenue and profit and
we are pleased to report growing demand for our services.
In Australia we experienced a subdued year. In order to grow the business beyond the two major
clients, we accepted lower margin contracts. However, this will provide us with the opportunity
to expand into normal margin business in these clients. A significant amount of time and cost was
spent on proposals and pre-sales initiatives and we hope to profit from these efforts in future.
Middle-East/Africa
The headwinds experienced in the Middle-East/Africa ("MEA") segment of our business resulted in
a loss after tax of R46.4 million for the region. The negative payment culture resulted in very
high interest charges.
An implemented change in the tax law resulted in withholding tax ("WHT") of R15.6 million being
expensed as additional tax paid in the period under review, causing an exceptionally high tax
charge in the financial statements.
The negative trading environment in this segment of our business, necessitated complete
reduction of exposure to this region. Accordingly, we are pleased to report that we have reduced
this exposure by 80% and will no longer be regarded as a separate segment of our business for
future financial periods. This vast effort resulted in very positive cashflow as we succeeded in
collecting the bulk of outstanding debtors in this region.
Dividend
In accordance with the SENS announcement released on 26 May 2017, an excess payout was made
to PBT Group by Prescient Holdings. The cash portion of this excess payout amounted to
R26.2 million, which was paid out to shareholders as a capital reduction on 28 August 2017. No dividend
from normal commercial operations has been declared for the year ended 31 March 2018.
Biannually, the directors consider the payment of a dividend, taking into account prevailing
circumstances and future cash and capital requirements of the Group in order to determine the
appropriate dividend in respect of a particular financial reporting period.
Prospects
South Africa
The explosion in the volume of data created in organisations on a daily basis necessitates the
extraction of information to remain competitive. We have been experiencing sustained and
growing demand for our services in this field over a 19-year period and all indications are that this
trend will continue. Our application development services are also in high demand and are
growing at a sustainable pace. The worldwide shortage of skills creates opportunities, but is also a
constraint as access to these skills is limited. Our client base is of very high quality and is still
expanding in a controlled manner.
Australia
We have spent extensively in man hours and other costs on proposals and pre-sales initiatives in
order to accelerate growth in this region. Our margins are also under pressure because of our long
involvement at a core client. Expansion beyond this key client should restore margins and reduce
client concentration risk.
United Kingdom and Europe
We have identified this region for expansion of our revenue base and have been actively exploring
opportunities. This drive is costly, but we are very confident that this region will contribute
significantly to the bottom line in future. Good relationships have been formed through our
partner network and a small office infrastructure established in Utrecht, Netherlands.
Changes to Management and the Board of Directors
AL Winkler was appointed as independent non-executive director effective 17 May 2017. AM Louw
resigned as Chairman of the board, but continues in his role as Financial Director and AJ Taylor
was appointed as the Chairman of the board on 25 August 2017.
Review of the Independent Auditor
The condensed consolidated provisional financial statements of PBT Group Limited for the year
ended 31 March 2018 have been reviewed by BDO Cape Inc., who expressed an unmodified review
conclusion. The auditor's report does not necessarily report on all of the information contained in
these financial results. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor's engagement they should obtain a copy of the
auditor's report together with the accompanying financial information from the issuer's registered
office.
Forward-looking statements
This announcement contains certain forward-looking statements with respect to the financial
condition and results of the operations of PBT Group Limited that, by their nature, involve risk
and uncertainty because they relate to events and depend on circumstances that may or may not
occur in the future. These may relate to future prospects, opportunities and strategies. If one or
more of these risks materialise, or should underlying assumptions prove incorrect, actual results
may differ from those anticipated. By consequence, none of the forward-looking statements have
been reviewed or reported on by the Group's auditor.
Statement of Financial Position as at 31 March 2018
Figures in Rand thousand Notes 2018 2017
Assets
Non-Current Assets
Property, plant and equipment 6 031 7 792
Goodwill 3 135 666 253 927
Intangible assets 4 675 9 567
Other financial assets 7 25 786 34 330
Deferred tax 2 139 7 352
170 297 312 968
Current Assets
Inventories - 19 787
Trade and other receivables 5 91 269 224 214
Other financial assets 3 206 -
Current tax receivable 1 817 -
Cash and cash equivalents 34 202 38 172
130 494 282 173
Non-current assets held for sale and assets of disposal groups 2 57 121 82 234
Total Assets 357 912 677 375
Equity and Liabilities
Equity
Equity Attributable to Equity Holders of Parent
Stated capital 117 805 144 015
Reserves (39 537) 5 400
Retained earnings 221 402 410 765
299 670 560 180
Non-controlling interest 6 916 12 434
306 586 572 614
Liabilities
Non-Current Liabilities
Other financial liabilities - 35 000
Deferred tax 184 5 920
184 40 920
Current Liabilities
Trade and other payables 35 853 29 369
Current tax payable 1 774 7 669
Provisions 6 791 9 421
Bank overdraft 152 8 081
44 570 54 540
Liabilities of disposal groups 2 6 572 9 301
Total Liabilities 51 326 104 761
Total Equity and Liabilities 357 912 677 375
Statement of Profit or Loss and Other Comprehensive Income
Figures in Rand thousand Notes 2018 2017
Continuing operations
Revenue 556 094 563 766
Cost of sales (457 972) (447 985)
Gross profit 98 122 115 781
Other income 2 756 1 311
Other operating losses 111 18 872
Loss on exchange differences (4 409) (294)
Operating expenses (87 682) (116 744)
Impairment (127 041) (34 074)
Operating (loss) profit (118 143) (15 148)
Investment income 6 034 13 238
Finance costs (5 190) (5 868)
Other non-operating gains (losses) (53) -
(Loss) profit before taxation (117 352) (7 778)
Taxation 6 (22 018) (25 318)
(Loss) profit from continuing operations (139 370) (33 096)
Discontinued operations
(Loss) profit from discontinued operations (42 281) 1 252 626
(Loss) profit for the year (181 651) 1 219 530
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Items that may be reclassified to profit or loss:
Exchange differences on translating foreign operations 193 (8 183)
Other comprehensive income for the year net of taxation 193 (8 183)
Total comprehensive (loss) income for the year (181 458) 1 211 347
(Loss) profit attributable to:
Owners of the parent:
From continuing operations (145 836) (39 351)
From discontinued operations (42 281) 1 256 521
(188 117) 1 217 170
Non-controlling interest:
From continuing operations 6 466 6 255
From discontinued operations - (3 895)
6 466 2 360
Total comprehensive (loss) income attributable to:
Owners of the parent (188 117) 1 208 987
Non-controlling interest 6 466 2 360
(181 651) 1 211 347
Statement of Changes in Equity
Total Non- Total
attributable controlling equity
to equity interest
holders of
Figures in Rand thousand the group
Balance at 01 April 2016 836 437 24 064 860 501
Profit for the year 1 217 170 2 360 1 219 530
Other comprehensive income (8 183) - (8 183)
Total comprehensive income 1 208 987 2 360 1 211 347
for the year
Treasury shares sold 11 166 - 11 166
Equity-settled share based 1 680 - 1 680
payments
Capital distribution (1 381 820) - (1 381 820)
Adjustment to reflect the PBT (53 792) - (53 792)
Group Limited share capital after
the disposal of Prescient
Holdings Proprietary Limited
Termination of foefeitable share (1 281) - (1 281)
plan
Dividends (73 832) (3 304) (77 136)
Acquisitions of non-controlling 12 635 (12 470) 165
interests
Disposal of subsidiary - 1 784 1 784
Total contributions by and (1 485 244) (13 990) (1 499 234)
distributions to owners of
group recognised directly in
equity
Statement of Changes in Equity
Total Non- Total
attributable controlling equity
to equity interest
holders of
Figures in Rand thousand the group
Balance at 01 April 2017 560 180 12 434 572 614
Loss for the year (188 117) 6 466 (181 651)
Other comprehensive income 193 - 193
Total comprehensive Loss for (187 924) 6 466 (181 458)
the year
Capital distribution (72 586) - (72 586)
Loss of control - (2 913) (2 913)
Dividends - (9 065) (9 065)
Change in ownership
-control not loss - (6) (6)
Total contributions by and
distributions to owners of
group recognised directly in (72 586) (11 984) (84 570)
equity
Balance at 31 March 2018 299 670 6 916 306 586
Statement of Cash Flows
Figures in Rand thousand Notes 2018 2017
Cash flows from operating activities
Cash generated from operations 100 371 214 552
Interest income 4 166 5 154
Dividend income 1 868 8 084
Finance costs (5 190) (5 868)
Tax paid (30 059) (19 904)
Dividends paid - (69 275)
Net cash from operating activities 71 156 132 743
Cash flows from investing activities
Purchase of property , plant and equipment (2 017) (7 038)
Sale of property, plant and equipment 340 4 538
Purchase of other intangible assets 4 (273) (1 244)
Loans advanced to group companies - (5 704)
Purchase of financial assets (1 941) (53 104)
Sale of financial assets 5 970 -
Sale of other asset - 429 186
Proceeds on disposal of discountinued operations - 1 317 935
Net cash from investing activities 2 079 1 684 569
Cash flows from financing activities
Reduction of share capital or buy back of shares (26 210) (534 809)
Repayment of other financial liabilities (35 000) -
Movement in loans to directors, managers and employees - 53 830
Proceeds from loans/borrowings - 32 899
Capital distribution - (1 427 822)
Acquisition of shares (8 053) (145)
Net cash from financing activities (69 263) (1 876 047)
Total cash movement for the year 3 972 (58 735)
Cash at the beginning of the year 30 091 88 826
Effect of exchange rate movement on cash balances (13) -
Total cash at end of the year 34 050 30 091
1. Earnings per share
BASIC EARNINGS PER SHARE
The calculation of basic earnings per share at 31 March 2018 was based on the loss attributable to ordinary shareholders of R188.2m
(2017: profit R1 217.2m) and a weighted average of ordinary shares outstanding of 1 499 205 494 (2017: 1 619 927 367), calculated as follows:
31 March 2018 31 March 2017
Profit attributable to ordinary shareholders Total Continuing Discontinued Total
Continuing Discontinued operations operation
R'000 operation operation Restated* Restated*
Profit/(loss) for the year, attributable to owners of the
Company (145 836) (42 281) (188 117) (39 351) 1 256 521 1 217 170
Earnings attributable to FSP Shareholders - - - (5 129) (13 835) (18 964)
Profit/(loss) attributable to ordinary shareholders (145 835) (42 281) (188 116) (44 480) 1 242 686 1 198 206
Weighted average number of ordinary shares Note 2018 2017
In thousands of shares
Ordinary shares at 1 April 1 669 251 1 669 251
Effect of treasury shares held (170 045) (23 022)
Effect of FSP shares - (26 302)
Weighted average number of ordinary shares at 31 March 1 499 206 1 619 927
HEADLINE EARNINGS PER SHARE
Headline earnings per share has been calculated in accordance with Circular 2/2015 issued by the South African Institute of Chartered Accountants.
Diluted earnings per share is equal to basic earnings per share. Diluted headline earnings per share is equal to headline earnings per share.
R'000
Earnings Earnings
attributable to attributable to
Profit before Non-controlling FSP ordinary Cents per
2018 tax Tax interests shareholders shareholders share
Continuing operations
Per the statement of comprehensive income (117 352) (22 018) (6 466) - (145 836) (9.73)
Adjustments
125 600 - - - 125 600 8.38
Continuing operations headline earnings 8 248 (22 018) (6 466) - (20 236) (1.35)
Discontinued operation
Per the statement of comprehensive income (42 118) (163) - - (42 281) (2.82)
Adjustments
Restatement to fair value of discontinue operation 16 371 - - - 16 371 1.09
Impairment loss on goodwill 26 477 - - - 26 477 1.77
Change in fair value of investment property (3 545) - - - (3 545) (0.24)
Discontinued operations headline loss (2 815) (163) - - (2 977) (0.20)
Total
Per the statement of comprehensive income (159 469) (22 181) (6 466) - (118 117) (12.55)
Total Group headline earnings 5 434 (22 181) (6 466) - (23 213) (1.55)
R'000
Earnings Earnings
attributable to attributable to
Non-controlling FSP ordinary Cents per
2017 Profit before tax Tax interests shareholders shareholders share
Continuing operations
Per the statement of comprehensive income (7 777) (25 318) (6 255) (5 129) (44 479) (2.75)
Adjustments - -
Impairment loss on goodwill 31 645 - - - 31 645 1.95
Change in fair value of investment property - - - - - -
Continuing operations headline earnings 23 868 (25 318) (6 255) (5 129) (12 834) (0.80)
Discontinued operation
Per the statement of comprehensive income 1 282 868 (30 242) 3 895 (13 835) 1 242 686 76.71
Adjustments
Gain on sale of discontinued operations* (1 150 696) - - - (1 150 696) (71.03)
Change in fair value of investment property (4 179) - - - (4 179) (0.26)
Discontinued operations headline gain 127 993 (30 242) 3 895 (13 835) 87 811 5.42
Total
Per the statement of comprehensive income 1 275 091 (55 560) (2 360) (18 964) 1 198 207 73.96
Total Group headline earnings 151 861 (55 560) (2 360) (18 964) 74 977 4.62
*Including foreign exchange recycled from foreign currency translation reserve.
Dividends per share 2018 2017
Cents Cents
Interim - declared (2017: 13 December 2016) - 2.25
Prescient Distribution - declared (2017: 28 October 2016) - 85.54
Capital distribution (2017: Rnil) 1.57 -
2. Discontinued Operations
The Company has entered into a memorandum of agreement ("the MoA") with an acquiring consortium
("AQC"), in relation to the disposal by the PBT Group of Prescient Capital Proprietary Limited and its subsidiaries
("Prescient Capital") , where the AQC will purchase Prescient Capital from the PBT Group by offering the PBT Group shares owned by the AQC
to the PBT Group. In addition, the AQC will purchase the Prescient Holdings shares owned by the PBT Group from the PBT Group
by offering the PBT Group shares owned by the AQC to the PBT Group.
Prescient Capital was established as an investment holding company for the interests of the PBT Group
outside of its traditional service offering. Prescient Capital's assets include properties in Johannesburg and Dublin, as well as a
venture capital investment.
Prescient Capital consists of Prescient Capital Proprietary Limited, Prescient Property Holdings Proprietary Limited, PIB Risk
Services Proprietary Limited and Stadia Capital Proprietary Limited.
After this transaction PBT Group will be a focused IT business as Prescient Capital did not form part of the core business of the PBT
Group.
The effective date of the Proposed Transaction is 1 June 2017. A finalisation announcement will be released on SENS when the
Proposed Transaction becomes unconditional.
Herman Steyn was the Chief Executive Officer of Prescient Limited prior to being re-named to the PBT Group and subsequently
appointed as a Non-Executive Director. He is also a material shareholder who forms part of the AQC. As such, he is considered to
be a related party in terms of the JSE Listings Requirements.
Cheree Dyers is an Independent Non-Executive Director and shareholder of the PBT Group and she forms part of the AQC. As such,
she is considered to be a related party in terms of the JSE Listings Requirements.
The Proposed Transaction is classified as both a specific repurchase and a related party transaction in terms of the JSE Listings
Requirements.
The Take Over Regulation Panel ("the TRP") requested that the PBT Group release a supplementary circular with a separate
independent expert report dealing with the share repurchase portion of the Proposed Transaction. The date of posting of the
supplementary circular will be announced in due course.
Prescient Capital was not previously classified as held-for-sale or as a discontinued operation. The comparative condensed
consolidated provisional statement of profit or loss and other comprehensive income has been restated to show the discontinued
operation separately from continuing operations.
Results of discontinued operations 2018 2017
R'000 R'000
Revenue 11 543 349 208
Other income 2 315 13 907
Expenses (56 301) (233 956)
Results from operating activities (42 443) 129 158
Tax 163 (30 242)
Results from operating activities, net of tax (42 281) 98 916
Gain on sale of discontinued operations* - 1 153 710
Profit for the year (42 281) 1 252 626
Earnings per share (cents) (2.82) 77.33
*Included in 2017 in the gain on sale of disontinued operations is an amount of R92.4 million relating to the excess pay-out as per the SENS
announcement released on 26 May 2017.
(Loss)/profit from discontinued operations of R42.3 million (2017: profit R1.3 billion) was attributable to the owners of the Company. Of the loss from
continuing operations of R139.5 million (2017: loss R33.1 million), a loss of R146 million (2017: loss R39.4m) was attributable to the owners of the
company.
Cash flows from/(used in) discontinued operations
Net cash from operating activities 24 816 1 552
Net cash used in investing activities 30 405 (929)
Net cash from financing activities (54 363) (8 973)
Net cash flow for the year 858 (6 492)
Effect of disposal on the financial position of the Group
Property & equipment 48 123
Investment property 36 428 49 346
Goodwill and intangible assets - 22 722
Financial assets at fair value through profit or loss 17 777 4 483
Investment in associate - 289
Trade and other receivables 928 3 172
Long-term loans receivable 288 673
Cash and cash equivalents 1 532 1 449
Deferred tax liability (303) (67)
Long-term loans payable (5 260) (8 106)
Trade and other payables (1 017) (1 154)
Current tax (payable)/receivable 128 (166)
Net assets and liabilities held-for-sale 50 549 72 765
Consideration received in cash (4 789) 4 789
Cash and cash equivalents (1 532) (1 449)
Net cash inflow (6 321) 3 340
3. Goodwill
Cost
Opening balance - 1 April 2016 406 762
Classified as held for sale (22 722)
Disposal of discontinued operations (98 468)
Closing balance - 31 March 2017 285 572
Opening balance - 1 April 2017 285 572
Additions -
Disposals -
Closing balance - 31 March 2018 285 572
Accumulated impairment/amortisation
Opening balance - 1 April 2016 31 143
Impairment loss 31 645
Disposal of discontinued operations (31 143)
Closing balance - 31 March 2017 31 645
Opening balance - 1 April 2017 31 645
Impairment loss
Closing balance - 31 March 2018 31 645
Carrying amounts
At March 2017 253 927
At March 2018 135 666
The Goodwill on the Statement of Financial Position arose as a result of the reverse acquisision of PBT Group Ltd
by the Prescient Holdings Group of Companies ("Prescient Holdings") effective 1 September 2012. According to
IFRS 3 Business Combinations, PBT Group Ltd was treated as the accounting acquiree and Goodwill on the PBT
Group of Companies arose as a result.
During the 2017 financial year the financial services segment of the business, being Prescient Holdings, delisted
from the group, leaving the PBT Group of Companies and Prescient Capital Group of Companies. The PBT Group
comprise of information management services. The Prescient Capital Group of Companies are in the process of
being disposed of, refer to note 2 for the transaction details.
With the 2012 Goodwill calculation and allocation, the PBT Group of Companies was seen as a separate Cash
Generating Unit ("CGU").
In terms of IFRS, the Group performs an annual impairment test on Goodwill based on CGU's. The recoverable
amount of each CGU to which Goodwill is allocated has been determined based on the value-in-use calculation
which uses cash flow projections on financial forecasts. The discount rate use to calculate the value-in-use
figure is 19%.
At year end, in terms of IFRS, the PBT Group of Companies is still seen as a separate CGU and an impairment
test was performed. For 2018 financial year the Goodwill figure has been impaired from R253.9m to R135.7m in
accordance with a directors valuation.
4. Intangible assets
Internally System
Patents and developed Computer development Other
trademarks software software costs intangible Total
Cost
Opening balance - 1 April 2016 2 024 33 020 2 689 - 7 339 45 072
Additions - 485 758 7 367 - 8 610
Disposal of discontinued operations (2 024) - - (7 367) - (9 391)
Closing balance - 31 March 2017 - 33 505 3 447 - 7 339 44 291
Opening balance - 1 April 2017 - 33 505 3 447 - 7 339 44 291
Additions - 273 - - - 273
Disposals - - - - - -
Closing balance - 31 March 2018 - 33 778 3 447 - 7 339 44 564
Accumulated impairment/amortisation
Opening balance - 1 April 2016 904 26 588 2 055 550 - 30 097
Amortisation for the year - 3 308 521 - - 3 829
Impairment loss - 2 252 - - - 2 252
Disposal of discontinued operations (904) - - (550) - (1 454)
Closing balance - 31 March 2017 - 32 148 2 576 - - 34 724
Opening balance - 1 April 2017 - 32 148 2 576 - - 34 724
Amortisation for the year - 1 194 665 - - 1 859
Impairment loss - - - - 7 339 7 339
Other changes, movements - (34) - - - (34)
Closing balance - 31 March 2018 - 33 308 3 242 - 7 339 43 888
Carrying amounts
At March 2017 - 1 357 870 - 7 339 9 566
At March 2018 - 470 205 - - 675
5. Trade and other receivable
Trade and other receivables include the following:
2018 2017
Trade receivables 88 709 129 033
Accrued income 1 078 656
Deposits 1 440 1 408
Prepayments 42 720
Dividend receivable - 92 397
91 269 224 214
6. Income tax expense
Tax recognised in profit or loss 2018 2017
Current year
Current year expense 8 431 15 201
Adjustment to prior years (1 570) (50)
Securities transfers tax 22 -
Withholding tax - Section 6quat(1C) - prior year 6 875 16 584
Withholding tax - Section 6quat(1C) 8 783 -
22 541 31 735
Deferred tax expense
Originating and reversal of temporary differences (523) (6 417)
Income tax expense on continuing operations 22 018 25 318
7. Other financial assets
2018 2017
Designated at fair value through profit (loss)
Investments 23 844 22 787
Bonds and unlisted debt 433 722
24 277 23 509
Loans and receivables
Other loans and receivables 1 366 6 028
The unsecured loan bears interest at prime and has no fixed terms of repayment.
Share plan loans - 2 216
The unsecured loan bears no interest and have been settled in the current financial year.
Enterprise development loans 1 840 1 420
The unsecured loan bears no interest and has no fixed terms of repayment.
PBT Insurance Technologies Share Trust 1 509 1 157
The unsecured loan bears interest at prime less 2% and has no fixed terms of repayment.
4 715 10 821
Total other financial assets 28 992 34 330
Non-current assets
Designated at fair value through profit (loss) 24 277 23 509
Loans and receivables 1 509 10 821
25 786 32 114
Current assets
Loans and receivables 3 206 -
3 206 -
28 992 34 330
8. Impairment losses
2018 2017
Goodwill 118 261 31 645
The Group performs an annual impairment test on
goodwill based on cash-generating units (CGU).
Please see note 3 for details.
Intangible assets 7 339 2 429
The Group performs impairment tests in relation
to intangible assets. The current year impairment
relates to the write-off of the purchase price
allocation, as management determined that the
recoverable amount was less than the carrying amount.
Other financial assets 1 441 -
Current year impairments relate to the
recoverable amount being less than the carrying
amount, which was determined by management.
Management's key assumptions are based on past
experience in the market with reference to cash
flow assumptions.
Total impairment losses recognised 127 041 34 074
9. Comparative figures
Certain prior year amounts have been reclassified for consistency with the current year presentation
of the consolidated financial statements. These reclassifications had no effect on the reported
results of operations.
The effects of the reclassifications are as follows:
Statement of Financial Position
Provisions - (9 422)
Trade and other payables - 9 422
10. Segment Report
The reportable segments for the current financial year are according geographical areas, namely South Africa, Middle-East / Africa and Australia.
- South Africa includes consulting and implementation of data, management information software and healthcare administrations services in the Republic of South Africa.
- Australia includes consulting and implementation of data, management information software and healthcare administrations services in Australia.
- Middle-East/Africa includes consulting and implementation of data, management information software in Middle-East and Africa.
CONTINUING OPERATIONS
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 410 270 329 141 64 383 78 932 80 958 155 693 483 - 556 094 563 766
Other income 52 589 273 715 2 438 - 1 868 9 927 4 631 29 738
Interest revenue 2 026 827 116 91 1 929 3 980 96 1 389 4 167 6 287
Cost of sales (305 493) (248 849) (55 010) (54 709) (97 469) (144 427) - - (457 973) (447 985)
Depreciation and amortisation (1 774) (1 815) (516) - (3 012) (2 924) - - (5 302) (4 740)
Impairments (75) (51) - - (1 366) - - - (1 441) (51)
Operating expenses (65 569) (53 823) (6 867) (12 959) (12 418) (47 440) (1 997) (3 423) (86 851) (117 280)
Share of profit/(loss) of equity accounted investments - - - - - - - - - -
Finance costs (1 785) (273) (5) (9) (3 397) (5 586) (3) - (5 191) (5 868)
Income tax expense (7 116) (6 242) (681) (7 845) (14 039) (11 057) (183) (174) (22 018) (25 318)
Profit / (loss) for the year 30 535 19 503 1 692 4 216 (46 376) (51 761) 265 7 719 (13 884) (1 450)
DISCONTINUED OPERATIONS
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue - - - - - - 11 543 383 144 11 543 383 144
Other income - - - - - - 3 693 1 144 028 3 693 1 144 028
Interest revenue - - - - - - 127 231 127 231
Cost of sales - - - - - - - - - -
Depreciation and amortisation - - - - - - (52) (5 725) (52) (5 725)
Impairments - - - - - - (14 287) - (14 287) -
Operating expenses - - - - - - (19 610) (230 704) (19 610) (230 704)
Share of profit/(loss) of equity accounted investments - - - - - - - (759) - (759)
Finance costs - - - - - - (1 136) (7 346) (1 136) (7 346)
Income tax expense - - - - - - 163 (30 242) 163 (30 242)
Profit / (loss) for the year - - - - - - (19 559) 1 252 626 (19 559) 1 252 626
GROUP
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Revenue 410 270 329 141 64 383 78 932 80 958 155 693 12 025 383 144 567 636 946 910
Other income 52 589 273 715 2 438 - 5 562 1 153 954 8 325 1 173 766
Interest revenue 2 026 827 116 91 1 929 3 980 224 1 620 4 294 6 518
Cost of sales (305 493) (248 849) (55 010) (54 709) (97 469) (144 427) - - (457 973) (447 985)
Depreciation and amortisation (1 774) (1 815) (516) - (3 012) (2 924) (52) (5 725) (5 354) (10 465)
Impairments (75) (51) - - (1 366) - (14 287) - (15 728) (51)
Operating expenses (65 569) (53 823) (6 867) (12 959) (12 418) (47 440) (21 606) (234 127) (106 460) (347 984)
Share of profit/(loss) of equity accounted investments - - - - - - - (759) - (759)
Finance costs (1 785) (273) (5) (9) (3 397) (5 586) (1 140) (7 346) (6 327) (13 215)
Income tax expense (7 116) (6 242) (681) (7 845) (14 039) (11 057) (20) (30 416) (21 856) (55 560)
Profit / (loss) for the year 30 535 19 503 1 692 4 216 (46 376) (51 761) (19 294) 1 260 345 (33 443) 1 251 176
CONTINUING OPERATIONS
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Segment assets * 90 013 86 682 20 283 28 862 25 850 91 149 28 637 119 033 164 782 325 727
Intangible assets 479 1 357 - - 196 - - 8 209 675 9 566
Investment in equity-accounted investees - - - - - - - - - -
Total assets 90 492 88 039 20 283 28 862 26 046 91 149 28 637 127 242 165 457 335 293
Segment liabilities (27 633) (20 475) (4 748) (10 135) (7 424) (62 593) (5 323) 3 667 (45 128) (89 536)
Total liabilities (27 633) (20 475) (4 748) (10 135) (7 424) (62 593) (5 323) 3 667 (45 128) (89 536)
DISCONTINUED OPERATIONS
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Segment assets * - - - - - - 57 121 59 056 57 121 59 056
Intangible assets - - - - - - - - - -
Investment in equity-accounted investees - - - - - - - 289 - 289
Total assets - - - - - - 57 121 59 345 57 121 59 345
Segment liabilities - - - - - - (6 572) (9 302) (6 572) (9 302)
Total liabilities - - - - - - (6 572) (9 302) (6 572) (9 302)
GROUP
South Africa Australia Middle-East/Africa Other Total
2018 2017 2018 2017 2018 2017 2018 2017 2018 2017
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Segment assets * 90 013 86 682 20 283 28 862 25 850 91 149 85 758 184 011 221 904 390 704
Intangible assets 479 1 357 - - 196 - - 8 209 675 9 566
Investment in equity-accounted investees - - - - - - - 289 - 289
Total assets 90 492 88 039 20 283 28 862 26 046 91 149 85 758 192 509 222 579 400 559
Segment liabilities (27 633) (20 475) (4 748) (10 135) (7 424) (62 593) (11 895) (5 635) (51 700) (98 838)
Total liabilities (27 633) (20 475) (4 748) (10 135) (7 424) (62 593) (11 895) (5 635) (51 700) (98 838)
* Goodwill is not managed as part of segment assets and has therefore been excluded
2018 2017
R'000 R'000
Reconciliation of reportable segment revenue
Total consolidated income for reportable segments 567 636 946 910
Elimination of discontinued operations (11 543) (383 144)
Consolidated total income 556 094 563 766
Profit before tax
Total consolidated (loss)/profit before tax for reportable segments (11 587) 1 306 736
Less impairment of goodwill (125 600) (31 645)
Elimination of discontinued operations 19 721 (1 282 868)
Consolidated loss before tax (117 466) (7 777)
Assets
Total assets for reportable segments 136 821 208 050
Goodwill 135 666 253 927
Assets for other segments 85 758 192 223
Equity accounted investees - 289
Elimination of discontinued operations (57 121) (59 345)
Consolidated total assets 301 124 595 141
Liabilities
Total liabilities for reportable segments (39 806) (93 204)
Liabilities for other segments (11 895) (5 635)
Other unallocated amounts - -
Elimination of discontinued operations 6 572 9 302
Consolidated total liabilities (45 128) (89 536)
Company Information
Directors: PJ de Wet (CEO)
AM Louw (Financial Director)
AJ Taylor (Independent Non-Executive Chairman)
AL Winkler (Independent Non-Executive Director)
CL Dyers (Independent Non-Executive Director)
HC Steyn (Non-Executive Director)
Registered office: PBT House, 2 Mews Close, Waterford Mews,
Century City, 7441, South Africa
Postal address: PO Box 276, Century City 7446
Registration number: 1936/008278/06
Auditors BDO Cape Inc.
Sponsor Bridge Capital Advisors Proprietary Limited
Transfer secretaries: Link Market Services
JSE share code: PBG
ISIN: ZAE000227781
Website: www.pbtgroup.co.za
Date: 16/07/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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