Going concern

The financial performance and position for the Group reflect a loss for the year of R4,8 billion, negative retained earnings at the end of the year of R3,2 billion and cash outflows from operating activities of R112 million. Details of the performance and position are explained and well documented in the consolidated Annual Financial Statements and the various reports accompanying them within the Annual Integrated Report. A detailed action plan has been developed and is being successfully executed against to ensure the Groupís ability to continue as a going concern in the short term.

Key salient features of this management action plan include:

  1. Agreement with its funders on an accelerated debt reduction plan as detailed in note 46 Ė Events after the reporting date;
  2. Conversion of assets into cash through the sale of non-core businesses;
  3. Consideration of partnerships where significant value can be unlocked; and
  4. Removal of current and/or potential cash drain from underperforming businesses or unnecessary costs within the Group.

Through their assessment of whether the Group is a going concern, the directors considered and confirmed that:

  1. The Group is solvent;
  2. There is an approved budget for the following 12 months;
  3. There are cash flow forecasts for the following 12 months;
  4. It has sufficient access to facilities or executable liquidity events, primarily the sale of non-core assets, to fund operations for the following 12 months;
  5. The Groupís assets are appropriately insured;
  6. There is currently no outstanding litigation, that has not been adequately included, that could put pressure on the Groupís ability to meet its obligations; and
  7. Good progress has made against the management action plan as noted above.

Based on their assessment, the directors are satisfied that the Group has access to adequate resources to continue in operational existence for the foreseeable future and as such consider it appropriate that the Groupís consolidated results be prepared on the going concern basis.