| Audited | |||||||
|---|---|---|---|---|---|---|---|
| Rm | Rm | ||||||
| 6. | DISCONTINUED OPERATION AND ASSETS CLASSIFIED AS HELD FOR SALE | ||||||
| Due to its significance, Equipment Iberia business segment was classified as a discontinued operation at 30 September 2017. The sale of this business segment was concluded during June 2018. | |||||||
| Revenue | 3 337 | 4 076 | |||||
| Operating profit before items listed below (EBITDA) | 215 | 58 | |||||
| Depreciation | (72) | (121) | |||||
| Amortisation of intangible assets | (7) | (14) | |||||
| Operating profit/(loss)^ | 136 | (77) | |||||
| Finance costs | (2) | (9) | |||||
| Income from investments | 1 | ||||||
| Profit/(loss) before non-operating and capital items | 134 | (85) | |||||
| Non-operating and capital items | 9 | ||||||
| Profit/(loss) before taxation | 143 | (85) | |||||
| Taxation | (29) | (51) | |||||
| Profit/(loss) after taxation | 114 | (136) | |||||
| Loss from associates# | (67) | (133) | |||||
| Profit/(loss) from discontinued operations | 47 | (269) | |||||
| Net profit on disposal of discontinued operations* | 1 600 | ||||||
| Profit/(loss) discontinued operations per income statement | 1 647 | (269) | |||||
| ^ Operating loss at 30 September 2017 included restructuring costs at R137 million (€9.1 million). # Loss from associates includes an impairment of investment of R47 million (2017: R78 million). * Net profit on disposal of Equipment Iberia includes R1.5 billion that relates to recycle of the foreign currency translation reserves since acquisition. |
| Audited | |||||||
|---|---|---|---|---|---|---|---|
| 2018 Rm |
2017 Rm |
||||||
| The cash flows from the discontinued operation are as follows: | |||||||
| Cash flows from operating activities | 129 | 381 | |||||
| Cash flows from investing activities | (31) | (65) | |||||
| Cash flows from financing activities | (6) | (326) | |||||
| The major classes of assets and liabilities classified as held for sale are as follows: | |||||||
| Property, plant and equipment | 253 | 1 131 | |||||
| Investments | 97 | ||||||
| Long-term financial assets | 9 | ||||||
| Deferred tax assets | 18 | 166 | |||||
| Intangible assets | 2 | 42 | |||||
| Inventories | 37 | 823 | |||||
| Trade and other receivables*** | 168 | 973 | |||||
| Cash balances | 19 | 102 | |||||
| Assets classified as held for sale | 497 | 3 343 | |||||
| Interest-bearing long-term loans | (33) | ||||||
| Trade and other payables – short and long term** | (125) | (637) | |||||
| Deferred tax liability | (2) | ||||||
| Provisions | (125) | ||||||
| Bank overdraft | (1) | ||||||
| Total liabilities associated with assets classified as held for sale | (126) | (797) | |||||
| Net assets classified as held for sale | 371 | 2 546 | |||||
| Per business segment: | |||||||
| Equipment Iberia | 2 424 | ||||||
| Logistics | 278 | 122 | |||||
| Corporate division | 93 | ||||||
| Total group | 371 | 2 546 | |||||
| *** Include financial assets of R63 million (2017: R798 million). ** Include financial liabilities measured at amortised cost of R83 million (2017: R369 million) |
|
Following a detailed strategic review of the various operations within the Logistics business, management has taken the firm decision to sell the KLL and SmartMatta businesses. In the prior year, the Logistics Middle East operations were classified as held for sale and positive steps have been made to dispose of this business in the year. Based on progress in the year and developments subsequent to year end, management is confident that this sale will take place in 2019, failing which a reassessment of this classification will be made. These assets do not constitute a major line of business and have therefore not been classified as discontinued operations. The net assets held for sale within the Corporate division relate to the Barlow Park property owned by Barloworld Limited which is in the process of being sold into a consortium of investors with the aim of redeveloping the site into a multi-use precinct. |