| |
2018
R’m |
|
| The following table summarises the Group’s classification of financial instruments: |
|
|
|
|
| Assets |
|
|
|
|
| Fair value through profit and loss |
|
|
|
|
| Derivative financial instruments (included in other assets) |
– |
|
100 |
|
| Amortised cost |
|
|
|
|
| Trade and other receivables |
3 747 |
|
3 636 |
|
| Cash and cash equivalents |
1 544 |
|
1 494 |
|
| Other assets |
87 |
|
77 |
|
| Total assets |
5 378 |
|
5 307 |
|
| Liabilities |
|
|
|
|
| Fair value through profit and loss |
|
|
|
|
| Contingent consideration liabilities |
543 |
|
534 |
|
| Derivative financial instruments (included in other liabilities) |
30 |
|
6 |
|
| Amortised cost |
|
|
|
|
| Trade and other payables |
3 800 |
|
3 483 |
|
| Interest-bearing borrowings |
11 995 |
|
15 956 |
|
| Bank overdraft |
867 |
|
488 |
|
| Total liabilities |
17 235 |
|
20 467 |
|
| |
|
|
|
|
Derivative financial instruments
| |
Carrying value |
|
Fair value |
|
|
|
|
|
|
|
|
|
|
| |
2018
R’m |
|
2018
R’m |
|
| Mark-to-market valuation at 30 September |
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
|
|
| Interest rate swap contracts (included in other) |
– |
|
13 |
|
– |
|
13 |
|
| Current assets |
|
|
|
|
|
|
|
|
| Interest rate swap contracts (included in other) |
– |
|
– |
|
– |
|
– |
|
| Foreign exchange option contracts (included in other) |
– |
|
87 |
|
– |
|
87 |
|
| Total assets |
– |
|
100 |
|
– |
|
100 |
|
| LIABILITIES |
|
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
| Interest rate swap contracts (included in other) |
(27) |
|
(6) |
|
(27) |
|
(6) |
|
| Current liabilities |
|
|
|
|
|
|
|
|
| Interest rate swap contracts (included in other) |
(3) |
|
– |
|
(3) |
|
– |
|
| Total liabilities |
(30) |
|
(6) |
|
(30) |
|
(6) |
|
|
|
|
|
|
|
|
|
|
Interest rate swap contracts
The Group enters into interest rate swap contracts to manage exposure to fluctuations in interest rates on the interestbearing
borrowings. Gains and losses on the interest rate swap contracts are recognised in profit or loss.
Previous interest rate swap contracts, with a total notional principal amount of R900 million, matured on
1 November 2018.
| |
Swap 1 |
Swap 2 |
Swap 3 |
Swap 4 |
Swap 5 |
Swap 6 |
Swap 7 |
Swap 8 |
|
| Contract commencement date |
1 Nov 2016 |
8 Aug 2017 |
15 Dec 2017 |
19 April 2018 |
6 Feb 2019 |
6 Feb 2019 |
27 Sep 2018 |
8 Feb 2019 |
|
| Maturity date |
1 Nov 2019 |
11 Aug 2020 |
15 Dec 2019 |
20 April 2020 |
8 Feb 2021 |
7 Feb 2022 |
27 Sep 2021 |
8 Feb 2021 |
|
| Currency |
R’m |
R’m |
R’m |
R’m |
R’m |
R’m |
£’m |
£’m |
|
| Notional amount |
900 |
500 |
600 |
900 |
500 |
500 |
50 |
25 |
|
| Fixed interest rate (%) |
7.70 |
6.91 |
7.63 |
6.81 |
7.15 |
7.23 |
1.23 |
1.014 |
|
| Floating interest rate (%) |
7.16 |
6.84 |
6.81 |
6.88 |
6.85 |
6.85 |
0.76 |
0.77 |
|
| Interest settlement terms |
Three-month JIBAR (safex) settled quarterly |
Three-month GBP-LIBOR,
settled quarterly |
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange option contracts relating to the disposal of Max
On 19 September 2018, the Group entered into a number of foreign exchange option contracts (option contracts) to
mitigate the risk of fluctuations in the exchange rates on the disposal proceeds relating to Max. The option contracts
expired in January 2019. The Group extended the option contracts at prevailing rates in January 2019 until June 2019.
The option contracts were closed out and the liabilities were settled on 26 and 28 June 2019.
The mark-to-market loss recognised in profit or loss on the option contracts for the year ended 30 September 2019
is R292 million net of tax (2018: profit of R17 million net of tax).
Reconciliation of the option contract asset/(liability) as at 30 September:
| |
2018
R’m |
|
| Balance at 1 October |
84 |
|
– |
|
| Fair value (loss)/profit recognised in profit in loss |
(406) |
|
23 |
|
| Premiums paid |
55 |
|
61 |
|
| Settlement |
267 |
|
– |
|
| Balance at 30 September |
– |
|
84 |
|
|
|
|
|
|
Held for trading
Foreign exchange contracts
The Group entered into United States dollar exchange contracts to manage exposure to fluctuations in the rand dollar
exchange rate on foreign liabilities.
B-share liability
At acquisition, the UK Healthcare Limited B-shares were issued to key management within Alliance Medical in
exchange for a portion of their shares held in Alliance Medical. In terms of the original shareholder agreement,
the B-shares were to be redeemed after year three (45%), year four (30%) and year five (25%) after the acquisition date.
Life Healthcare in conjunction with the Alliance Medical management agreed to bring forward the settlement of the
B-shares. On 14 June 2018 the Group acquired these shares from the Alliance Medical management for GBP35.7 million
(R640 million).
| |
2018
R’m |
|
| Balance at 1 October |
727 |
|
| Fair value profit recognised in profit or loss |
(74) |
|
| Settlement |
(640) |
|
| Effect of foreign currency movement |
(13) |
|
| Balance at 30 September |
– |
|
|
|
|
|