AFRICAN DAWN ANNUAL REPORT 2018 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2018 73 30. Contingent Asset Arising from the sale of Grindstone to Thinkroom, the “Grindstone Advisory Fee Agreement” was reached in terms of which, if Grindstone facilitates transactions between Grindstone incubation entities and third party investors, and earns transactional revenue, than Afdawn shall be entitled to the first R375 000. 31. Discontinued operations During the 2018 financial period management decided to restructure Knife Capital to assist with the group liquidity. The sale of Knife Capital was concluded by 1 September 2017 as announced on SENS. The sale of the remaining 50% of Grindstone was concluded in January 2018. Also included in the discontinued operations is the income relating to the rental property Greenoaks which was disposed and transfered in May 2017 as indicated in note 8 (referred to as the Candlestick Transaction). As the decision to sell and sale happened in the same period the effect on the statement of profit and loss is treated as a discontinued operation as below: Total discontinued operations 2018 2017 R’000 R’000 Revenue 3,281 14,727 Cost of sales (15) (324) Other income - 519 Operating expenses (3,084) (14,033) Operating profit 182 889 Investment revenue 5 53 Impairment of property in possession - (971) Depreciation on property, plant and equipment (21) (48) Finance costs (169) (685) Amortisation of intangible asset (684) (1,321) Impairment of goodwill (485) (3,397) Loss before tax (1,172) (5,480) Tax 181 606 Loss for the year from discontinued operations (991) (4,874) Equity loss on associate discontinued (156) - Loss on sale of Knife Capital (426) Profit on sale of Grindstone 209 Comprehensive loss for the year from discontinued operations (1,364) (4,874) Discontinued cashflows from operations 16,846 3,152 Discontinued cashflows from investing activities 4,570 - Discontinued cashflows from financing activities (6,164) (1,400)
AFRICAN DAWN 2018 Annual Report
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