Segment results
for the year ended 31 July 2019
The reportable segments of the Group have been identified based on the nature of the business activities. This basis is representative of the internal structure of the Group for management purposes. The Chief Operating Decision Maker ('CODM') is Exco.
iOCO consists of the Information and Communications Technology (ICT) operations in South Africa and internationally. NEXTEC consists of Industrial Technologies and Business Process Outsourcing.
IP comprises businesses which have developed proprietary software and solutions for customers.
The CODM is not presented with secondary information in the form of geographic information and as a result, is not disclosed in the segment results. Liabilities and assets are also not regularly provided to the CODM and are not disclosed in the segment report.
Revenue and normalised EBITDA from continuing operations:
| Reviewed for the year ended 31 July 2019 | ||||||
|---|---|---|---|---|---|---|
| Figures in Rand thousand | iOCO | NEXTEC | IP | Recon- ciliation^ |
Total | |
| Revenue | ||||||
| Revenue | 6 931 563 | 7 142 522 | 1 714 984 | (415 670) | 15 373 399 | |
| Discontinued operations | 659 027 | 2 472 118 | 451 184 | – | 3 582 329 | |
| Continuing revenue | 6 272 536 | 4 670 404 | 1 263 800 | (415 670) | 11 791 070 | |
| Gross profit | ||||||
| Gross profit | 1 212 491 | 1 054 223 | 713 902 | (49 218) | 2 931 398 | |
| Discontinued operations | 73 087 | 325 535 | 163 339 | – | 561 961 | |
| Continuing gross profit | 1 139 404 | 728 688 | 550 563 | (49 218) | 2 369 437 | |
| Continuing gross profit (%) | 18,2% | 15,6% | 43,6% | 11,8% | 20,1% | |
| EBITDA** | 224 899 | (9 845) | 249 959 | (199 000) | 266 013 | |
| Non-core business lines to be closed~ | 279 254 | 246 800 | – | – | 526 054 | |
| Normalised EBITDA | 504 153 | 236 955 | 249 959 | (199 000) | 792 067 | |
| Normalised EBITDA (%) | 8,0% | 5,1% | 19,8% | 47,9% | 6,7% | |
| Restated audited for the year ended 31 July 2018* | ||||||
| Figures in Rand thousand | iOCO | NEXTEC | IP | Recon- ciliation |
Total | |
| Revenue | ||||||
| Revenue | 7 548 559 | 6 993 953 | 1 596 988 | (268 153) | 15 871 347 | |
| Discontinued operations | 641 696 | 2 635 180 | 491 154 | – | 3 768 030 | |
| Continuing revenue | 6 906 863 | 4 358 773 | 1 105 834 | (268 153) | 12 103 317 | |
| Gross profit | ||||||
| Gross profit | 2 149 938 | 1 524 509 | 822 505 | (2 946) | 4 494 006 | |
| Discontinued operations | 243 822 | 590 623 | 238 403 | – | 1 072 848 | |
| Continuing gross profit | 1 906 116 | 933 886 | 584 102 | (2 946) | 3 421 158 | |
| Continuing gross profit (%) | 27,6% | 21,4% | 52,8% | 1,1% | 28,3% | |
| EBITDA** | 269 632 | 109 811 | 258 655 | (279 600) | 358 498 | |
| Non-core business lines to be closed~ | 578 694 | 18 042 | – | – | 596 736 | |
| Normalised EBITDA | 848 326 | 127 853 | 258 655 | (279 600) | 955 234 | |
| Normalised EBITDA (%) | 12,3% | 2,9% | 23,4% | 104,3% | 7,9% | |
EBITDA reconciliation
| Reviewed for the year ended 31 July 2019 |
Restated* audited for the year ended 31 July 2018 |
|||
|---|---|---|---|---|
| Operating loss before interest and equity-accounted losses | (3 373 487) | (1 340 461) | ||
| Depreciation and amortisation | 367 129 | 401 547 | ||
| Share of equity-accounted (losses)/profits | (9 814) | (463) | ||
| Impairment losses | 1 630 674 | 758 469 | ||
| Loss on disposal of assets | 173 974 | – | ||
| Stock and OEM write-offs | 302 044 | – | ||
| Lebashe – A shares (IFRS 2) | 157 444 | – | ||
| Provision for debtors | 342 760 | 286 430 | ||
| GCT provisions | 289 587 | 124 356 | ||
| Provision relating to non-compliance | 183 488 | 208 002 | ||
| Other once-off adjustments | 202 213 | (79 381) | ||
| EBITDA** | 266 013 | 358 498 | ||
| Non-core business lines to be closed~ | 526 054 | 596 736 | ||
| Normalised EBITDA | 792 067 | 955 234 |
| * | Comparative figures previously reported have been amended to reflect continuing operations and segments prevailing for the year ended 31 July 2019, as well as correction of prior period errors. |
| ** | EBITDA is defined as continuing losses before interest, tax, depreciation, amortisation, impairments, gains or losses on disposal of businesses and equity-accounted investments, once-off cash and non-cash items and includes profit or loss from equity-accounted investments. |
| ^ | Reconciliation comprises internal transactions and head office expenses. |
| ~ | Non-core business lines to be closed reflect businesses identified to be shutdown in that year and preceding years. |