| Figures in Rand thousand |
2020 |
|
Restated*
2019 |
|
| Opening balance |
300 535 |
|
530 861 |
|
| Deemed acquisition of associate |
7 254 |
|
190 454 |
|
| Foreign currency translation |
– |
|
(83 304) |
|
| Foreign currency translation recognised in profit or loss |
30 173 |
|
94 547 |
|
| Disposals |
(245 950) |
|
(146 460) |
|
| Capital contribution |
– |
|
3 243 |
|
| Impairments: continuing operations |
(57 175) |
|
(146 500) |
|
| Impairments: discontinued operations |
(24 430) |
|
(121 405) |
|
| Share of equity-accounted losses: continuing operations |
(565) |
|
(7 954) |
|
| Share of equity-accounted profit/(losses): discontinued operations |
7 847 |
|
(12 947) |
|
| Closing balance before assets held for sale |
17 689 |
|
300 535 |
|
| Assets held for sale (note 14) |
(11 000) |
|
(72 468) |
|
| Closing balance |
6 689 |
|
228 067 |
|
| * |
Comparative figures previously reported have been amended to reflect continuing operations for the year ended 31 July 2020. |
Impaired equity-accounted investments form part of the iOCO segment. The recoverable amount of equity-accounted investments classified as held for sale were determined based on their fair value less costs of disposal. Fair value is based on offers received.
Acron Group, Bessertec Group, Construction Computer Software Proprietary Limited, aSAY Group and Conso'System Consulting SARL were sold during the current financial year.
In 2019, equity accounted investments have been impaired by R268 million. R75 million of the impairments relate to EOH's investments in Turkey as a result of increased levels of political and macro-economic risk causing delays in project kick-offs and a deterioration in cash recovery rates. Margin erosion, deterioration in pipeline and reduced cash conversion rates triggered an impairment of R151 million in EOH's South American based ERP utilities investment. Impaired equity-accounted investments form part of the iOCO segment.
The equity-accounted investments are as follows:
| Figures in Rand thousand |
2020 |
|
2019 |
|
| Construction Computer Software Proprietary Limited |
– |
|
190 453 |
|
| aSAY Group |
– |
|
24 538 |
|
| Cözümevi |
– |
|
13 071 |
|
| Change Logic Proprietary Limited |
6 689 |
|
– |
|
| Other – continuing operations |
– |
|
5 |
|
| Total |
6 689 |
|
228 067 |
|
| Equity-accounted investments held for sale |
|
|
|
|
| Virtuoso Consulting |
7 000 |
|
64 175 |
|
| Bessertec Group |
– |
|
896 |
|
| Cözümevi |
4 000 |
|
– |
|
| Other assets held for sale |
– |
|
7 397 |
|
|
11 000 |
|
72 468 |
|
EOH share of losses in Mondia Tech FZ-LLC for 2020 financial year is R0.4 million. This share of losses in Mondia Tech FZ-LLC exceeds the EOH interest in the equity-accounted investment, resulting in EOH not recognising further share of losses.
The Group does not guarantee losses of equity-accounted investments.
| Figures in Rand thousand |
2020 |
|
2019 |
|
| Equity-accounted joint venture investments |
11 000 |
|
110 082 |
|
| Equity-accounted associate investments |
6 689 |
|
190 453 |
|
| Equity-accounted investments held for sale (note 14) |
(11 000) |
|
(72 468) |
|
|
6 689 |
|
228 067 |
|
| Share of losses of equity-accounted joint venture investments |
(2 177) |
|
(6 604) |
|
| Share of profits/(losses) of equity-accounted associate investments |
9 459 |
|
(14 297) |
|
| Share of profits of equity-accounted investments |
7 282 |
|
(20 901) |
|
| Aggregate information of equity-accounted investments that are not individually material: |
|
|
|
|
| Joint venture investments |
|
|
|
|
| The Group's share of profit from continuing operations |
– |
|
(7 954) |
|
| The Group's share of post-tax losses from discontinued operations |
(2 177) |
|
(12 947) |
|
| Aggregate carrying amount of the Group's interests in these joint ventures |
– |
|
37 614 |
|
Refer to note 20 for details on the security provided on the loans secured through Security SPV.
Reconciliation of the carrying amount of the interest in joint venture investments
| Figures in Rand thousand |
2020 |
|
Restated*
2019 |
|
| Balance at beginning of the year |
110 082 |
|
369 595 |
|
| Foreign currency translation |
– |
|
11 753 |
|
| Disposals of joint venture investments |
(45 473) |
|
– |
|
| Foreign currency translation recognised in profit or loss |
30 173 |
|
– |
|
| Share of results after taxation |
(2 177) |
|
(6 604) |
|
| Capital contribution |
– |
|
3 243 |
|
| Impairment loss |
(81 605) |
|
(267 905) |
|
|
11 000 |
|
110 082 |
|
| Assets held for sale |
(11 000) |
|
(72 468) |
|
| Balance at the end of the year |
– |
|
37 614 |
|
| * |
Comparative figures previously reported have been amended to reflect continuing operations for the year ended 31 July 2020. |
| The Group has the following material associate investments |
|
| Associate name: |
Change Logic CS Proprietary Limited (Change Logic) |
Construction Computer Software Proprietary Limited (CCS) |
| Principal activity: |
IT applications and business solutions provider |
IT applications and business solutions provider |
| Country of incorporation: |
South Africa |
South Africa |
| Effective interest in issued ordinary share capital: |
40% (previously 100%) |
30% (previously 100%) |
| Year end: |
31 July 2020 |
31 July 2019 |
| Effective date of change in control: |
1 May 2020 |
31 July 2019 |
Reconciliation of the carrying amount of the interest in associates
| Figures in Rand thousand |
2020 |
|
2019 |
|
| Balance at beginning of the year |
190 453 |
|
161 266 |
|
| Share of results of associate after taxation |
9 460 |
|
(14 297) |
|
| Foreign currency translation |
– |
|
(95 056) |
|
| Foreign currency translation recognised in profit or loss |
– |
|
94 547 |
|
| Deemed acquisition of associate |
7 254 |
|
190 453 |
|
| Disposal |
(200 478) |
|
(146 460) |
|
| Balance at the end of the year |
6 689 |
|
190 453 |
|
Summarised financial information of material associates
EOH Mthombo Proprietary Limited disposed the remaining 30% of its interest in CCS for an amount of R143 million to RIB Limited, a subsidiary of German-listed RIB Software SE (RIB) on 1 May 2020. EOH Abantu Proprietary Limited sold 60% of its shareholding a wholly owned subsidiary, Change Logic for an amount of R11 million. EOH Abantu Proprietary Limited now retains a 40% shareholding in Change Logic and will still be able to participate in Change Logic expansion, decision making, growth and strategy. The change in control is reflected as deemed acquisition to equity investments, and a disposal of a formally recognised consolidated subsidiary.
| Figures in Rand thousand |
2020 |
|
2019 |
|
| Construction Computer Software Proprietary Limited |
|
|
| |
| Current assets |
– |
|
115 374 |
|
| Non-current assets |
– |
|
62 959 |
|
| Current liabilities |
– |
|
(62 838) |
|
| Non-current liabilities |
– |
|
(1 582) |
|
| Total net assets |
– |
|
113 912 |
|
| Proportion of the Group's ownership interest |
– |
|
34 174 |
|
| Revenue |
202 045 |
|
286 345 |
|
| Profit from continuing operations |
33 145 |
|
23 032 |
|
| Total comprehensive income for the year |
33 145 |
|
23 032 |
|
| Change Logic CS Proprietary Limited |
|
|
| |
| Current assets |
36 499 |
|
– |
|
| Non-current assets |
303 |
|
– |
|
| Current liabilities |
17 979 |
|
– |
|
| Non-current liabilities |
2 100 |
|
– |
|
| Total net assets |
16 723 |
|
– |
|
| Proportion of the Group's ownership interest |
6 689 |
|
– |
|
| Revenue |
31 231 |
|
– |
|
| Profit from continuing operations |
743 |
|
– |
|
| Profit for the year |
743 |
|
– |
|
|