Identification and classification of discontinued operations
There were a number of businesses that were approved for sale at 31 July 2020, 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 2020, and the resulting impairment was allocated to the identified disposal groups (refer to note 6 – Goodwill).
Figures in Rand thousand |
2020 |
|
Restated*
2019 |
|
Revenue |
2 586 353 |
|
4 203 263 |
|
Cost of sales |
(1 913 847) |
|
(3 038 965) |
|
Gross profit |
672 506 |
|
1 164 298 |
|
Net financial asset impairment losses |
(11 607) |
|
(372 133) |
|
Remeasurement to fair value less costs to sell |
(188 844) |
|
(628 167) |
|
(Loss)/gain on disposal |
(210 231) |
|
329 603 |
|
Other operating expenses |
(586 650) |
|
(1 054 395) |
|
Operating loss before interest and equity-accounted losses |
(324 826) |
|
(560 794) |
|
Investment income |
13 299 |
|
15 101 |
|
Share of equity-accounted profits/(losses) |
10 034 |
|
(12 946) |
|
Finance costs |
(7 325) |
|
(5 850) |
|
Loss before taxation |
(308 818) |
|
(564 489) |
|
Taxation |
(55 676) |
|
(156 776) |
|
Loss for the year from discontinued operations |
(364 494) |
|
(721 265) |
|
Other comprehensive income Attributable to: |
|
|
| |
Owners of EOH Holdings Limited |
(360 577) |
|
(723 325) |
|
Non-controlling interests |
(3 917) |
|
2 060 |
|
Loss per share (cents) |
|
|
| |
Loss per share from discontinued operations |
(214) |
|
(444) |
|
Diluted loss per share from discontinued operations |
(214) |
|
(444) |
|
Net cash flows in relation to discontinued operations: |
|
|
| |
Net decrease in cash and cash equivalents |
(58 529) |
|
(38 850) |
|
* |
Comparative figures previously reported have been amended to reflect continuing operations prevailing for the year ended 31 July 2020. Integrators of Systems Technology Proprietary Limited was classified as a discontinued operation in 2019 and has been classified as a discontinued operation in the current year as well. In 2019, however, the results were not shown in discontinued operations and was rather shown incorrectly in continuing operations. This has been corrected by restating the prior year continuing and discontinued numbers. |
Profit before taxation before including the loss/gain on disposal and remeasurement to fair value less costs to sell was R90 257 (2019: loss of R265 925). |