Adcock Ingram Integrated Report 2018

ANNUAL FINANCIAL STATEMENTS Notes to the Group annual financial statements continued 96 ADCOCK INGRAM  Integrated Report 2018 26 NOTES TO THE STATEMENTS OF CASH FLOWS 2018 2017 R'000 R'000 26.1 OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Profit before taxation from continuing operations 895 157 724 844 Profit before taxation from discontinued operations – 7 675 Profit before taxation 895 157 732 519 Adjusted for: - amortisation of intangibles 10 647 9 682 - depreciation 158 386 140 390 - (profit)/loss on disposal/scrapping of property, plant and equipment (1 968) 781 - dividend income (4 340) (5 979) - finance income (18 270) (16 938) - finance costs 26 187 40 253 - equity accounted earnings (79 252) (64 144) - share-based payment expenses 34 345 40 660 - equity options settlement (6 286) – - provision for accounts receivable impairment and credit notes 7 778 22 079 - increase in provisions and post-retirement medical liability 52 120 6 592 - straight-lining of leases (907) 999 - impairment of intangible asset 2 700 – - impairment of long-term receivable 2 535 217 - inventories written off 94 854 66 215 - increase in inventory provisions 19 306 15 422 - foreign exchange loss 4 850 13 060 1 197 842 1 001 808 26.2 WORKING CAPITAL CHANGES Increase in inventories (438 199)) (81 429) Decrease/(Increase) Increase in trade and other receivables 11 695 (183 547) Increase in trade and other payables 83 536 31 041 (342 968) (233 935) 26.3 DIVIDENDS PAID Dividends paid to equity holders of the parent (235 904) (170 369) Dividends paid to non-controlling shareholders (11 239) (5 484) (247 143) (175 853) 26.4 TAXATION PAID Amounts overpaid at beginning of year 9 642 84 087 Amounts charged to profit or loss (251 084) (206 157) Continuing operations (251 084) (204 856) Discontinued operations – (1 301) Movement in deferred tax (555) (2 836) Acquisition of business 1 579 462 Exchange rate adjustments (184) (93) Reclassification to disposal group held-for-sale – 898 Amounts overpaid at end of year (6 061) (9 642) (246 663) (133 281)