7. Equity-accounted investments
 
Figures in Rand thousand 2019    Restated*
2018  
 
Opening balance  530 861     847 917    
Additions***  190 454     –    
Dividends received  –     (3 638)   
Foreign currency translation  (83 304)    (60 298)   
Foreign currency translation recognised in profit or loss  94 547     –    
Disposals**  (146 460)    –    
Capital contribution  3 243     –    
Impairment: Continuing operations  (146 500)    –    
Impairment: Discontinued operations  (121 405)    (301 343)   
Share of equity-accounted losses continuing operations  (9 814)    (463)   
Share of equity-accounted (losses)/profit discontinued operations  (11 087)    48 686    
Current assets held for sale (note 15) (72 468)    –    
Closing balance  228 067     530 861    
* Refer to note 3 for further information regarding the restatement of the prior year
** Refer to note 8 for further information regarding the change of control in the TTCS Group.
*** EOH Mthombo sold 70% of its wholly owned subsidiary Construction Computer Software (CCS) for an amount of R444 million to RBI Limited, a subsidiary of German-listed RIB Software SE (RIB) as at 31 July 2019. EOH retains a 30% shareholding in CCS, and will be able to participate in CCS expansion and growth. The change in shareholding is reflected as an addition to equity investments, the entity was formerly recognised as a subsidiary.

As part of the Group’s strategy to exit from non-core operations, a number of equity-accounted investments have been classified as held for sale.

Equity accounted investments have been impaired by R268 million

  • R75 million of the impairments relate to EOH’s investments in Turkey as a result of increased levels of political and macro-economic risk causing delays in project kick-offs and a deterioration in cash recovery rates.
  • Margin erosion, deterioration in pipeline and reduced cash conversion rates triggered an impairment of R151 million in EOH’s South American-based ERP utilities investment.
  • Impaired equity-accounted investments form part of the iOCO segment. The recoverable amount was based on fair value less cost of disposal.

The equity-accounted investments are as follows:

Figures in Rand thousand 2019   Restated*
2018  
 
Computer Construction Software  190 453     –    
aSAY Group  24 538     80 037    
Cozumevi  13 071     35 934    
Virtuoso Consulting  –     112 636    
Bessertec Group  –     80 886    
TTCS Group  –     161 266    
Acron  –     40 199    
Other – Continuing     19 903    
Total  228 067     530 861    
Equity-accounted investments held for sale             
Virtuoso Consulting  64 175     –    
Bessertec Group  896     –    
Other**  7 397     –    
   72 468     –    
** Other includes the TTCS Group, Acron and other investments held for sale.             
Equity-accounted joint venture investments  110 082     369 595    
Equity-accounted associate investments  190 453     161 266    
Current assets held for sale (note 15) (72 468)    –    
   228 067     530 861    
Share of profits of equity-accounted joint venture investments  (6 604)    38 454    
Share of profits of equity-accounted associate investments  (14 297)    9 769    
Share of profits of equity-accounted investments  (20 901)    48 223    
Aggregate information of equity-accounted investments that are not individually material:             
Joint venture investments             
The Groupís share of profit from continuing operations  3 869     38 454    
The Groupís share of post-tax profit (loss) from discontinued operations  (10 473)    –    
Aggregate carrying amount of the Groupís interests in these joint ventures  37 614     369 595    

Reconciliation of the carrying amount of the interest in joint venture investments

Figures in Rand thousand 2019    2018   
Balance at the beginning of the year  369 595     400 623    
Foreign currency translation reserve  11 753     (55 844)   
Share of results after taxation  (6 604)    38 454    
Dividends received  –     (3 638)   
Capital contribution  3 243     –    
Impairment loss  (267 905)    (10 000)   
Joint venture investments held for sale (note 15) (72 468)    –    
Balance at the end of the year  37 614     369 595    

Non-material associate investments

Figures in Rand thousand 2019   2018  
The Group's share of (loss)/profit from continuing operations   (4 796)  
Aggregate carrying amount of the Group's interests in these associates   33 141  

During the current year the non-material associate investments in the TTCS Group was disposed of (refer note 8).

The Group has the following material associate*:

Associate name: Construction Computer Software
Principal activity: IT applications and business solutions provider
Country of incorporation: South Africa
Effective interest in issued ordinary share capital: 30%
Year end: 31 July 2019
Effective date of acquisition: 31 July 2019

Reconciliation of the carrying amount of the interest in CCS:

Figures in Rand thousand 2019  
Balance at the beginning of the year  
Deemed acquisition of CCS 105 497  
Net change in fair value of identified assets 84 956  
Balance at the end of the year 190 453  
* Refer to note 17 for further information regarding Construction Computer Software.

Summarised financial information of the material associate

EOH Mthombo sold 70% of its wholly owned subsidiary Construction Computer Software (CCS) for an amount of R444 million to RIB Limited, a subsidiary of German-listed RIB Software SE (RIB) as at 31 July 2019. EOH retains a 30% shareholding in CCS, and will still be able to participate in CCS expansion and growth. The change in shareholding is reflected as an addition to equity investments, the entity was formerly recognised as a subsidiary.

Figures in Rand thousand 2019  
Current assets 115 373  
Non-current assets 62 959  
Current liabilities (62 838)  
Non-current liabilities (1 582)  
Total net assets recognised by the Group 113 912  
Proportion of the Group's ownership interest 34 174  
Revenue 286 345  
Profit from continuing operations 23 032  
Total comprehensive income for the year 23 032