circular to ordinary shareholders

28. PROVISIONSPerformanceTotalGaming incentive 2006 2005 2004provisions* provisions Other R’000 R’000 R’000At beginning of year 5 017 4 219 4 573 13 809 15 941 18 955Acquisitions 809 1 985 6 415 9 209 – –Provisions raised 677 16 782** 7 427 24 886 3 565 2 392Provisions utilised (283) (968) – (1 251) (5 697) (5 406)At end of year 6 220 22 018 18 415 46 653 13 809 15 941* Gaming provisions include casino jackpot provisions and loyalty point provisions.** Certain performance incentive provisions recognised as accruals in the prior year were classified as provisions in the currentyear.Casino jackpot provisions are utilised when won. Loyalty point provisions are redeemed by casinopatrons at their discretion. Performance incentive provisions are paid following finalisation of the annualfinancial results.29. CASH FLOW INFORMATION2006 2005 2004R’000 R’000 R’000Profit before taxation 482 166 389 807 343 334Adjusted for: 137 263 69 775 87 772Interest received (11 957) (19 179) (7 957)Interest paid 36 960 16 892 12 658Depreciation 97 455 89 141 84 294Amortisation 4 357 1 137 1 828(Profit)/loss on disposal of property, plant and equipment (111) 810 1 077Profit on sale of available-for-sale financial instruments – (20 411) (7 800)Profit on sale of management contract – (5 000) –Write-off of fixed assets and intangible assets 1 240 38 –Share-based payment expenditure 9 988 8 960 5 086Associate earnings (669) (2 613) (1 414)619 429 459 582 431 106Decrease/(increase) in net current assets 49 438 (6 004) 9 334(Increase)/decrease in accounts receivable (3 030) 2 659 3 607(Increase)/decrease in inventories (3 754) 247 354Increase/(decrease) in accounts payable and provisions 66 567 (8 910) 5 373Increase in financial liabilities included in hedge reserves (10 345) – –668 867 453 578 440 440Taxation paidTax liability at beginning of year (55 443) (62 736) (57 057)Acquisitions during the year (18 918) – –Current taxation (154 162) (110 490) (104 990)Prior year adjustment 14 643 462 14 766Capital gains tax (5 466) (3 617) (1 131)Secondary tax on companies (67 017) (12 370) (6 624)Tax liability at end of year 58 779 55 443 62 736(227 584) (133 308) (92 300)82