Table of contents

4. Financial assets by category
All financial assets have been classified as loans and receivables.
5. Financial liabilities by category
All financial liabilities, apart from derivatives used for hedging, have been classified as financial liabilities measured at amortised
costs.
6. Goodwill and Business Combination
June 2016 Cost Accumulated foreign
exchange movements
Accumulated
impairment
Carrying value
€ € € €
Goodwill 1 102 511 (125 535) (181 533) 795 443
June 2015
Cost
€
Accumulated foreign
exchange movements
€
Accumulated
impairment
€
Carrying value
€
€ € € €
Goodwill 1 051 520 26 806 (181 533) 896 793
Reconciliation of
goodwill - 2016
Opening balance Additions Foreign exchange Impairment loss Closing balance
movements
€ € € € €
Goodwill 896 793 50 991 (152 341) - 795 443
Reconciliation of
goodwill - 2015
Opening balance Additions Foreign exchange Impairment loss Closing balance
movements
€ € € € €
Goodwill 34 835 1 016 685 26 806 (181 533) 896 793
The year-end balance of goodwill is composed of goodwill
raised on acquisition of GetSure Botswana (Proprietary)
Limited (EUR 36,520), GetSure South Africa (Proprietary)
Limited (EUR 220,451), Komo Finance (Proprietary) Limited
(EUR 487,480) and Ochwe Developers (Proprietary) Limited
(EUR 50,991).
June 2016
Effective 30 June 2016. GetBucks (Proprietary) Limited
(Botswana) acquired a 50% shareholding in Ochwe
Developers (Proprietary) Limited and a 100% shareholding
in Alto Legal (Proprietary) Limited and Alto Assurance
(Proprietary) Limited respectively. The acquisition of Ochwe
Developers (Proprietary) Limited gave rise to goodwill of
€50,991.
The group obtained control over Ochwe Developers
(Proprietary). It has power over the investee through
GetBucks Botswana Limited (50%) and Dave van Niekerk
- Director of MyBucks S.A. - holding remaining 50% of
the shares. The investee is run by the management of
GetBucks Botswana Limited. The Group has the right to
variable returns from the involvement with the investee.
The Group decided to acquire Ochwe Properties
(Proprietary) Limited, being the company holding the
head- office building it was renting, to reduce the cash-flow
burden monthly and benefit from the capital appreciation.
The Group acquired Alto Legal and Alto Assurance to
benefit from an existing client base with revenue streams
as well as direct access to two licenses.
The assets and liabilities recognised because of the
acquisition are as follows:
Ochwe
Developers
(Proprietary)
Limited
€
Alto Legal
(Proprietary)
Limited
€
Alto
Assurance
(Proprietary)
Limited
€
Total
€
Purchase
0.08 258 212 73 984 332 196
consideration
Assets
Property plant
731 379 - - 731 379
and equipment
Loans recevable - 2 540 - 2 540
Cash and cash
equivalents
1 633 298 3 719 5 650
733 012 2 838 3 719 739 569
Intangible
asset acquired
Intangible
- 480 508 136 733 617 241
assets
Total assets 733 012 483 346 140 452 1 356 810
Liabilities
Loans payable (834 995) (198 217) (53 242) (1 086 454)
Taxation - - (7 582) (7 582)
Other liabilities - (26 916) (5 644) (32 560)
Total
liabilities
Non-controlling
interest
(834 995) (225 133) (66 468) (1 126 596)
(50 991) - - (50 991)
Goodwill 50 991 (0) (0) 50 991
The fair value of the acquisition has been determined by taking into consideration the
building in Ochwe Developers (Proprietary) Limited, which is geared to generate rental
income and potential capital appreciation, and Alto Legal (Proprietary) Limited and
Alto Assurance (Proprietary) Limited, which is comprised of an existing client base and
revenue streams as well as two licenses.
The intangible assets in Alto Legal and Alto Assurance relate to customer relationships,
licenses and agreements. Benefits are expected to be derived through the potential of
cross-selling opportunities to the existing customer base as well as to the new customer
relationships. The operating licenses as well as the underwriting agreements will allow for a
broader insurance product portfolio for the Group. This intangible assets will be allocated
upon the finalisation of the purchase price allocation in accordance with IFRS 3 within a 12
month period from the acquisition date of 30 June 2016.
The acquired businesses were acquired on the last reporting day of the financial year
(30 June 2016), and have contributed no revenues and profits for the year. If the acquisition
had occurred on 1 July 2015, the impact on the consolidated revenue and profit for the year
ended 30 June 2016 would have been as follows:
Ochwe
Developers
(Proprietary)
Limited
€
Alto Legal
(Proprietary)
Limited
€
Alto Assurance
(Proprietary)
Limited
€
Total
€
Revenue 25 334 4 773 8 120 38 227
Loss (118 701) (127 430) (45 594) (291 725)
The key assumptions applied in testing the goodwill for impairment are set out below:
Ochwe Developers (Proprietary) Limited
Rate per M² - Pula 90.34
Rate per M² annual growth rate 5.0%
Rental Income Growth 5.0%
Operating Cost Growth 5.6%
Discount Rate 9.0%
Alto Legal (Proprietary) Limited and Alto Assurance
(Proprietary) Limited
Client Growth Rate - CAGR 77.2%
Premium Revenue annual growth rate - CAGR 27.0%
Operating Cost Growth 6.7%
Discount Rate 9.0%
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MyBucks Annual Report 2016 112
113 MyBucks Annual Report 2016