AFRICAN DAWN ANNUAL REPORT 2019 Notes to the Financial Statements continued Annual Financial Statements For the year ended 28 February 2019 74 27. 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. 28. Discontinued operations During the 2018 financial period management decided to restructure the Knife Capital Proprietary Limited to assist with the Group liquidity. The sale was concluded by 1 September 2017 as announced on SENS. Also included in the discontinued operations is the income relating to the rental property Greenoaks which was disposed of. 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 2019 2018 R’000 R’000 Revenue - 3,281 Cost of sales - (15) Operating expenses - (3,084) Operating profit - 182 Investment revenue - 5 Depreciation on property, plant and equipment - (21) Finance costs - (169) Amortisation of intangible asset - (684) Impairment of goodwill - (485) Loss before tax - (1,172) Tax - 181 (Loss) for the year from discontinued operations - (991) 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) Discontinued cashflows from operations - 16,846 Discontinued cashflows from investing activities - 4,570 Discontinued cashflows from financing activities - (6,164)
AFDAWN AR FINAL 2019
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