Notes to the Group financial statements

for the year ended 30 June

    R million   2014   2013  
  25.   CASH FLOW INFORMATION      
  25.1   Cash generated by operations      
    Operating profit   1 679   1 880  
    Non cash items and items dealt with separately:      
    Depreciation and amortisation   958   851  
    Operating equipment usage   62   56  
    Derivative financial instruments   55   (58) 
    Employee share based payments   53   46  
    Pre-opening Maslow lease rentals   –   24  
    Impairment of Maslow assets   39   –  
    Foreign exchange profit   12   57  
    Deferred income accrued for   120   52  
    Long service award release   –   (21) 
    Other non-cash movements   20   36  
      2 998   2 923  
    Delivery of share awards   (7)  (11) 
    Cash generated by operations before working capital changes   2 991   2 912  
    Working capital changes   98   168  
         
    Inventory   (17)  (6) 
    Accounts receivable   (43)  16  
    Accounts payable, accruals and provisions   158   158  
      3 089   3 080  
  25.2   Tax paid      
    Liability at beginning of year   (28)  (44) 
    Current tax provided (refer to note 7 (481)  (471) 
    CGT, STC and withholding taxes (refer to note 7 (22)  (26) 
    Foreign exchange adjustments   –   15  
    Liability at end of year   37   28  
      (494)  (498) 
  25.3   Acquisition of subsidiary      
    Effective 30 October 2013, the Group acquired a 100% shareholding in Powerbet Gaming (Pty) Ltd (“Powerbet”). A purchase price allocation has been performed in the results as set out below:      
    Computer software (refer to note 12 (18)  –  
    Deferred tax liability   3   –  
    Accounts receivable   (1)  –  
    Cash and cash equivalents   (3)  –  
    Accounts payable and accruals   3   –  
    Net assets   (16)  –  
    Goodwill recognised (refer to note 12 (14)  –  
    Consideration settled in cash   (30)  –  
    Cash and cash equivalents   3   –  
    Cash outflow   (27)  –  
    The business was purchased as an entry into the online market and as entry into the fast growing sports betting industry. The acquisition enables the Group to gain invaluable experience given the expected legalisation of online gaming in South Africa.  
  25.4   Disposal of subsidiary      
    On 30 June 2014 the Group disposed of 100% of its interest in
Sun International Travel Proprietary Limited.
The effect on the results is as follows:  
   
    Accounts receivable   (4)  –  
    Cash and cash equivalents   (10)  –  
    Accounts payable and accruals   20   –  
    Net liabilities disposed of   6   –  
    Consideration received   –   –  
    Profit realised on disposal   6   –  
    Net cash outflow   (10)  –  
  25.5   Purchase of shares in subsidiaries (refer to note 34    
    Monticello   –   (73) 
    Afrisun Leisure Investments   (120)  –  
    Afrisun Gauteng   (3)  –  
    Teemane   (3)  –  
      (126)  (73) 
  25.6   Increase/(decrease) in borrowings      
    Increase in borrowings   992   20  
    Decrease in borrowings   (280)  (715) 
    Imputed interest   (18)  (21) 
    (Decrease)/increase in short term banking facilities   (61)  657  
      633   (59) 
  25.7   Interest paid      
    Interest expense   (550)  (505) 
    Imputed interest on loans payable   18   21  
    Fair value of derivative financial instruments   –   4  
    Non cash transfer from hedging reserve   –   2  
      (532)  (478) 
  25.8   Dividends paid      
    To shareholders   (240)  (252) 
    To minorities in subsidiaries   (249)  (273) 
      (489)  (525) 
  25.9   Cash and cash equivalents      
    Cash at bank   834   841  
    Cash floats   124   183  
      958   1 024