SUMMARISED AUDITED ANNUAL RESULTS
FOR THE YEAR ENDED 30 JUNE 2024
| Carrying value | Amortisation | Impairment | |||||
| Year ended 30 June 2024 R’000 |
Year ended 30 June 2023 R’000 |
Year ended 30 June 2024 R’000 |
Year ended 30 June 2023 R’000 |
Year ended 30 June 2024 R’000 |
|||
|---|---|---|---|---|---|---|---|
| Goodwill | 1 327 661 | 1 558 496 | — | — | (230 835) | ||
| AfroCentric Health | 706 491* | 473 980 | — | — | (835) | ||
| Pharmacy Direct and Curasana | 140 608* | 473 954 | — | — | (100 000) | ||
| Activo | 294 645 | 424 645 | — | — | (95 900) | ||
| DENIS | 34 918 | 34 918 | — | — | — | ||
| Activo Healthcare Assets | 150 999 | 150 999 | — | — | (34 100) | ||
| Intangible assets | 1 476 538 | 1 487 045 | (192 690) | (208 823) | — | ||
| Customer relationships — Pharmacy Direct and Curasana | 10 781 | 19 730 | (8 949) | (8 948) | — | ||
| Activo Dossiers | 244 828 | 256 372 | (18 168) | (17 618) | — | ||
| Customer relationships — DENIS | 16 256 | 29 259 | (13 003) | (13 003) | — | ||
| Activo Healthcare Assets Dossiers | 134 551 | 153 689 | (17 148) | (13 103) | — | ||
| AfroCentric Health intangible assets | 101 457 | 96 177 | (20 860) | (36 937) | — | ||
| Customer relationships — AfroCentric Health | 38 534 | 42 559 | (4 025) | (6 008) | — | ||
| AfroCentric Health Software | 62 923 | 53 618 | (16 835) | (30 929) | — | ||
| Administration Systems — Self Generated | 968 665 | 931 818 | (114 562) | (119 213) | — | ||
| Nexus & Other Healthcare Administration Systems | 968 665 | 931 818 | (114 562) | (119 213) | — | ||
| 2 804 199 | 3 045 541 | (192 690) | (208 823) | (230 835) | |||
| * | Following a review regarding the true substance and benefits associated with the Glen Eden goodwill in the Healthcare Retail SA Cash Generating Unit (CGU), the goodwill relating to Glen Eden, amounting to R233.3 million, was reallocated to the Healthcare Administration SA CGU as it is closely aligned to the Medscheme medical scheme administration services being performed for its clients. |
| Year ended 30 June 2024 R’000 |
Year ended 30 June 2023 R’000 |
|
|---|---|---|
| Borrowings (non-current) | 569 853 | 528 005 |
| Borrowings (current) | 58 553 | 120 000 |
| Total borrowings | 628 406 | 648 005 |
| Year ended 30 June 2024 R’000 |
Year ended 30 June 2023 R’000 |
|
|---|---|---|
| Cash and cash equivalents | 330 259 | 189 763 |
| Bank overdraft | — | (104 007) |
| Net cash | 330 259 | 85 756 |
| Centriq R’000 |
Guardrisk R’000 |
Total R’000 |
|
|---|---|---|---|
| 30 June 2024 | |||
| Insurance revenue | |||
| Gross Written Premiums | 83 726 | 12 309 | 96 035 |
| Total insurance revenue | 83 726 | 12 309 | 96 035 |
| Insurance service expense | |||
| Incurred claims | (46 800) | (3 920) | (50 720) |
| Other insurance service expenses | (33 926) | (5 454) | (39 380) |
| Changes to liabilities for incurred claims | — | — | — |
| Total insurance service expenses | (80 726) | (9 374) | (90 100) |
| Insurance service result | 3 000 | 2 935 | 5 935 |
| Insurance finance income | |||
| Net cell captive interest income | 3 788 | 2 943 | 6 731 |
| Total insurance finance income | 3 788 | 2 943 | 6 731 |
| Net insurance result | 6 788 | 5 878 | 12 666 |
| Centriq R’000 |
Guardrisk R’000 |
Total R’000 |
|
| 30 June 2023 | |||
| Insurance revenue | |||
| Gross Written Premiums | 70 734 | 11 681 | 82 415 |
| Total insurance revenue | 70 734 | 11 681 | 82 415 |
| Insurance service expense | |||
| Incurred claims | (35 522) | (3 131) | (38 653) |
| Other insurance service expenses | (28 982) | (5 236) | (34 218) |
| Changes to liabilities for incurred claims | (210) | — | (210) |
| Total insurance service expenses | (64 714) | (8 367) | (73 081) |
| Insurance service result | 6 020 | 3 314 | 9 334 |
| Insurance finance income | |||
| Net cell captive interest income | 2 105 | 1 986 | 4 092 |
| Total insurance finance income | 2 105 | 1 986 | 4 092 |
| Net insurance result | 8 125 | 5 300 | 13 426 |
| Estimates of the present value of future cash flows R’000 |
Risk adjustment R’000 |
Total asset/ (liability) R’000 |
|
|---|---|---|---|
| Insurance contract assets as at 1 July 2023 | 70 879 | (901) | 69 978 |
| Changes that relate to past services | |||
| Risk adjustment recognised for the risk expired | 27 | (27) | — |
| Changes that relate to future services | |||
| Contracts initially recognised in the period | (54) | 54 | — |
| Insurance revenue | 96 035 | — | 96 035 |
| Insurance services expenses | (90 100) | — | (90 100) |
| Insurance service result | 5 935 | — | 5 935 |
| Insurance finance income | 6 731 | — | 6 731 |
| Total changes in the income statement | 12 666 | — | 12 666 |
| Cash flows | |||
| Premiums received | — | — | — |
| Dividends paid | (15 000) | — | (15 000) |
| Recapitalisation of the cell | — | — | — |
| Insurance finance income | — | — | — |
| Total cash flows | (15 000) | — | (15 000) |
| Risk adjustment recognised for the risk expired | — | — | — |
| Insurance contract assets as at 30 June 2024 | 68 518 | (874) | 67 644 |
| Estimates of the present value of future cash flows R’000 |
Risk adjustment R’000 |
Total asset/ (liability) R’000 |
|
| Insurance contract assets as at 1 July 2022 | 56 619 | (467) | 56 152 |
| Changes that relate to past services | |||
| Risk adjustment recognised for the risk expired | (48) | 48 | — |
| Changes that relate to future services | 482 | (482) | — |
| Contracts initially recognised in the period | — | — | — |
| Insurance revenue | 82 415 | — | 82 415 |
| Insurance services expenses | (73 081) | — | (73 081) |
| Insurance service result | 9 334 | — | 9 334 |
| Insurance finance income | 4 092 | — | 4 092 |
| Total changes in the income statement | 13 426 | — | 13 426 |
| Cash flows | |||
| Premiums received | — | — | — |
| Dividends paid | 400 | — | 400 |
| Recapitalisation of the cell | — | — | — |
| Insurance finance income | — | — | — |
| Total cash flows | 400 | — | 400 |
| Risk adjustment recognised for the risk expired | — | — | — |
| Insurance contract assets as at 30 June 2023 | 70 879 | (901) | 69 978 |
During the current year, there were restatements due to the adoption of IFRS 17 and prior period errors that were identified. Refer to Note 5.1 for IFRS 17 restatement and Note 5.4 for prior period error.
During the current year, AfroCentric adopted IFRS 17 on the two cell captives (Medgap cover and Sanlam gap cover) that are managed by Guardrisk Limited and Centriq Life Insurance Company Limited, respectively. The impact of the transition to IFRS17 has been disclosed by restating each of the financial statement line items for the prior periods as below.
| Consolidated statement of comprehensive income | Group 2023 As previously reported R’000 |
IFRS 17 Restatements R’000 |
Restated 2023 R’000 |
| Fair value gains | 16 245 | (12 576) | 3 669 |
| Insurance revenue | — | 82 415 | 82 415 |
| Insurance finance income | — | 4 092 | 4 092 |
| Total income | 16 245 | 73 931 | 90 176 |
| Insurance service expense | — | (73 081) | (73 081) |
| Profit for the year | 294 684 | 850 | 295 534 |
| Owners of Parent | 182 673 | 850 | 183 523 |
| Total comprehensive income | 303 368 | 850 | 304 218 |
| Total basic earnings per share | 30.56 | 0.14 | 30.70 |
| Total diluted earnings per share | 29.43 | 0.14 | 29.57 |
| Headline earnings per share | 36.20 | 0.14 | 36.34 |
| Impact on retained earnings at the beginning | Impact on retained earnings at the beginning | |||||
| Jun-23 as previously reported R’000 |
IFRS 17 Restatements R’000 |
Restated 1 July 2023 R’000 |
Jun-22 as previously reported R’000 |
IFRS 17 Restatements R’000 |
Restated 1 July 2022 R’000 |
|
| ASSETS | ||||||
| Non-current assets | ||||||
| Insurance contracts | — | 69 978 | 69 978 | — | 56 154 | 56 154 |
| Other financial assets | 109 521 | (69 593) | 39 928 | 75 736 | (56 619) | 19 117 |
| Total non-current assets | 109 521 | 385 | 109 906 | 75 736 | (465) | 75 271 |
| EQUITY AND LIABILITIES | ||||||
| Retained earnings | 859 252 | 385 | 859 637 | 1 245 965 | (465) | 1 245 500 |
| Total Equity | 3 498 867 | 385 | 3 499 250 | 3 426 481 | (465) | 3 426 016 |
The cash flow statement has been restated with the impact of the transition to IFRS 17.
| Consolidated statement of cash flows | Group 2023 As previously reported R’000 |
IFRS 17 Restatements R’000 |
Restated 2023 R’000 |
| Cash flows from operating activities | |||
| Cash flows from operations | 800 235 | (4 092) | 796 143 |
During the 2023 financial period, Medscheme Holdings incorrectly recognised revenue from contracts with customers and other expenses. The effect of the error can be seen on revenue from contracts with customers and other expenses. This restatement did not have an impact on the Statement of Financial Position and on the Statement of Cash Flows.
| Group 2023 As previously reported R’000 |
Restatements R’000 |
Restated 2023 R’000 |
|
| Revenue from contracts with customers | 8 868 032 | (107 806) | 8 760 226 |
| Other expenses | (1 225 988) | 107 806 | (1 118 182) |
| Profit before tax | 426 536 | — | 426 536 |
| Profit for the year | 294 684 | — | 294 684 |
| Owners of Parent | 182 673 | — | 182 673 |
| Total comprehensive income | 303 368 | — | 303 368 |