Annual Report for the year ended 30 June 2009
   
 
   
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Group notes to statement of cash flows for the year ended 30 June 2009  
 
     
 
      2009 
R’million 
    Restated
2008
R’million
 
A. CASH GENERATED FROM OPERATIONS              
  Operating profit    2 226,8      1 232,5   
  Amortisation of intangible assets    104,4      127,7   
  Depreciation    119,2      74,6   
  Impairment charges    167,9      87,3   
  Reversal of impairment losses on intangible assets    (0,1)     —   
  Loss on disposal of property, plant and equipment    4,4      0,7   
  Loss/(profit) on disposal of intangible assets    0,9      (41,0)  
  Share-based payment expense – employees    29,5      33,0   
  Deferred revenue – recognised in the income statement    (2,8)     (5,3)  
  Profit on sale of 51% of Co-pharma Ltd    —      (16,6)  
  Loss on sale of Astrix Laboratories Ltd    19,9      —   
  Other non-cash items   (1,8)     1,1  
  Cash operating profit    2 668,3      1 494,0   
  Changes in working capital    (507,7)     (435,9)  
  Increase in inventories    (152,5)     (376,8)  
  Increase in trade and other receivables    (714,5)     (104,4)  
  Increase in trade and other payables    359,3      45,3   
      2 160,6      1 058,1  
B. FINANCING COSTS PAID              
  Interest paid    (619,0)     (322,8)  
  Preference share dividends paid    (38,3)     (38,1)  
  Net foreign exchange (losses)/gains    (8,4)     60,4   
  Borrowing costs capitalised to property, plant and equipment   (93,6)     (47,0)  
      (759,3)     (347,5)  
C. INVESTMENT INCOME RECEIVED              
  Preference share dividends received    —      33,3   
  Interest received   224,2      230,1   
      224,2      263,4   
D. TAX PAID              
  Amounts unpaid at the beginning of the year    (111,1)     (114,5)  
  Charge per the income statement (excluding deferred tax)   (303,2)     (322,7)  
  Acquisition of subsidiaries     (3,0)     (0,3)  
  Acquisition of joint venture    —      (0,8)  
  Disposal of 51% of Co-pharma Ltd    —      (0,4)  
  Disposal of joint venture    3,2      —   
  Tax claims credited to equity in respect of share schemes    12,9      9,8   
  Effects of exchange rate changes    6,4      (3,8)  
  Amounts unpaid at the end of the year    70,8      111,3   
  Amounts overpaid at the end of the year   (9,4)     (0,2)  
      (333,4)     (321,6)  
E. ACQUISITION OF SUBSIDIARIES AND JOINT VENTURES      
  2009
PharmaLatina R’million 
FCC 
R’million 
  Total  
R’million 
 
  Property, plant and equipment 248,4  43,5    291,9   
  Intangible assets 66,5  14,1    80,6   
  Inventories 111,1  34,5    145,6   
  Trade and other receivables 236,8  14,4    251,2   
  Cash and cash equivalents 286,9  27,3    314,2   
  Borrowings (188,2) —    (188,2)  
  Deferred tax liabilities (20,9) (4,8)   (25,7)  
  Trade and other payables (147,0) (24,5)   (171,5)  
  Derivative financial instruments —  (4,5)   (4,5)  
  Current tax liabilities (2,0) (1,0)   (3,0)  
  Fair value of assets acquired 591,6  99,0    690,6   
  Minority interest (4,8) —    (4,8)  
  Fair value of assets acquired – Aspen’s share 586,8  99,0    685,8   
  Deferred receivable converted to consideration (440,1) —    (440,1)  
  Goodwill acquired (124,8) 90,4    (34,4)  
  Purchase consideration 21,9  189,4    211,3   
  Cash and cash equivalents in acquired companies (286,9) (27,3)   (314,2)  
  Cash (inflow)/outflow on acquisition (265,0) 162,1    (102,9)  
  Restated
2008
PharmaLatina  R’million  Onco  
Therapies 
Ltd R’million 
Onco 
Laboratories 
Ltd  
R’million 
Shelys 
R’million 
  Total  
R’million 
 
  Property, plant and equipment 217,6  114,2  —  142,6     474,4    
  Intangible assets 58,2  —  —  82,5     140,7    
  Inventories 89,3  —  —  75,9     165,2    
  Trade and other receivables 211,1  2,4  176,4  81,5     471,4    
  Cash and cash equivalents 166,1  0,2  —  (33,4)   132,9    
  Borrowings (1,1) —  —  (90,1)   (91,2)  
  Deferred tax liabilities (17,8) —  —  (42,7)   (60,5)  
  Trade and other payables (144,3) (5,6) (0,1) (84,6)   (234,6)  
  Current tax liabilities (0,8) —  —  (0,3)   (1,1)  
  Fair value of assets acquired 578,3  111,2  176,3  131,4     997,2    
  Minority interest —  —   —  (52,5)   (52,5)  
  Goodwill acquired 146,0  4,5  —  152,6    303,1   
  Purchase consideration (adjusted for cash flow hedging – basis adjustment) 724,3  115,7  176,3  231,5     1 247,8    
  Less:                
  Amounts unpaid at the end of the year —  (47,9)  (53,5) —     (101,4)  
  Cash flow hedging – deferral in equity (87,6) —  —  —     (87,6)  
  Deferred receivable 431,6  —  —  —     431,6    
  Cash and cash equivalents in acquired companies (166,1) (0,2) —  33,4    (132,9)  
  Cash outflow on acquisition 902,2  67,6  122,8  264,9    1 357,5   
    2009 
R'million 
 
F. DISPOSAL OF 50% OF ASTRIX LABORATORIES LTD    
  Property, plant and equipment 62,5   
  Intangible assets 61,1   
  Inventories 84,4   
  Trade and other receivables 155,8   
  Cash and cash equivalents at disposal (1,9)  
  Deferred tax assets (19,4)  
  Trade and other payables (65,1)  
  Borrowings (69,1)  
  Derivative financial instruments (0,3)  
  Current tax liabilities (3,2)  
  Net carrying value of total assets on date of disposal 204,8   
  Goodwill disposed 139,5   
  Loss on sale (19,9)  
  Total consideration received 324,4   
  Less:    
  Cash and cash equivalents in company 1,9   
  Cash inflow on disposal 326,3   
2008  
R’million 
 
  DISPOSAL OF 51% OF CO-PHARMA LTD     
  Property, plant and equipment 4,9    
  Intangible assets 4,9    
  Inventories 7,4    
  Trade and other receivables 32,4    
  Cash and cash equivalents at disposal 20,5    
  Deferred tax assets 0,4    
  Trade and other payables (42,5)  
  Current tax liabilities (0,4)  
  Net carrying value of total assets on date of disposal 27,6    
  Percentage sold 51%   
  Net carrying value of assets disposed 14,0    
  Profit on sale 16,6    
  Total consideration received 30,6    
  Less:     
  Cash and cash equivalents in company (20,5)  
  Cash inflow on disposal 10,1   
    2009 
R’million 
  2008 
R’million 
 
G. PAYMENT OF OUTSTANDING ONCOLOGY
BUSINESS PURCHASE CONSIDERATION
        
  Onco Laboratories Ltd 44,3    —    
  Onco Therapies Ltd 59,2    —   
    103,5    —   
  These amounts relate to the payment of a portion of the outstanding purchase price in respect of the investments made in Onco Laboratories Ltd and Onco Therapies Ltd in the prior year.        
H. CASH AND CASH EQUIVALENTS         
  Bank balances 1 447,2    852,4    
  Short-term bank deposits 603,4    592,2    
  Cash-in-transit 13,1    76,3    
  Cash-on-hand 1,6    1,3   
  Cash and cash equivalents per the statement of financial position 2 065,3    1 522,2    
  Less: Bank overdrafts (742,4)   (577,3)  
  Cash and cash equivalents per the statement of cash flows 1 322,9    944,9   
 
     
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