16. Discontinued operations
 

Identification and classification of discontinued operations

There were a number of businesses that were approved for sale at 31 July 2019, and for which the sale is expected to be completed within 12 months from the reporting date, as well as businesses that were already sold during the current and previous reporting periods that have met the requirements to be presented as discontinued operations and have accordingly been presented as such.

Judgement was applied in determining whether a component is a discontinued operation by assessing whether it represents a separate major line of business or geographical area of operations or is part of a single plan to dispose of a separate major line of business or geographical area of operations.

The Group’s intention to dispose of these non-core assets triggered an initial impairment assessment on the underlying assets at 31 July 2019, and the resulting impairment was allocated to the identified disposal groups (refer to note 6 Goodwill).

Figures in Rand thousand 2019    Restated*
2018  		  
Revenue  3 582 329     3 768 030    
Expenses  (4 180 645)    (3 494 790)   
Other income  76 247     55 636    
Profit before tax  (522 069)    328 876    
Tax expense  (40 822)    (66 155)   
Remeasurement to fair value less costs to sell  (628 167)    –    
Gain/(loss) on disposal  329 603     (392 450)   
Total loss from discontinued operations  (861 455)    (129 729)   
Attributable to:             
Equity-holders of the parent  (863 515)    (129 729)   
Non-controlling interest  2 060     –    
Earnings per share (cents)            
Loss per share from discontinued operations  (531)    (90)   
Diluted loss per share from discontinued operations  (531)    (90)   
Net cash flows in relation to discontinued operations             
Cash inflow/(outflow) from operating activities  46 644     (89 127)   
Cash inflow/(outflow) from investing activities  123 148     (59 472)   
Cash outflow from financing activities  (135 940)    (6 114)   
* Comparative figures previously reported have been amended to reflect continuing operations prevailing for the year ended 31 July 2019.
  2019  
Figures in Rand thousand iOCO** NEXTEC  IP  Total   
Revenue  659 027  2 472 118  451 184  3 582 329    
Expenses  (941 112) (2 726 198) (513 335) (4 180 645)   
Other income  369  69 747  6 131  76 247    
Profit before tax  (281 716) (184 333) (56 020) (522 069)   
Tax expense  (2 605) (45 993) 7 776  (40 822)   
Remeasurement to fair value less costs to sell  (135 373) (450 995) (41 799) (628 167)   
Gain/(loss) on disposal  109 389  –  220 214  329 603    
Total profit or (loss) from discontinued operations  (310 305) (681 321) 130 171  (861 455)   
** iOCO discontinued operations include the TTCS Group and other international businesses.