Annual integrated report 2018

12. EQUITY, DISTRIBUTIONS AND GROUP INFORMATION (continued) 12.6 Contingent liabilities The group has outstanding legal and other claims arising out of its normal ongoing operating activities which have to be resolved. None of these claims are significant. 12.7 Subsequent events There have been no material subsequent events from the reporting date. 12.8 Going concern The directors have made an assessment of the group’s ability to continue as a going concern and there is no reason to believe that the group will not be a going concern in the year ahead. 13. DISCONTINUED OPERATION In December 2017, management committed to a plan to discontinue the UK Contract Distribution (CD) business segment which operates in the United Kingdom. By year-end, we were close to finalising our proposed exit from this non-core segment. Costs associated with this anticipated exit were substantially provided for and any further costs are unlikely to be significant. The CD business segment is a component of the group’s business, the operations and cash flows of which can be clearly distinguished from the rest of the group. CD represents a separate major line of business or geographical area in the United Kingdom. The relevant requirements of IFRS 5 were met for this operation to be classified as a discontinued operation. Post the year-end, the prospective purchaser of our CD business notified Bidcorp that for its own internal reasons, it has decided not to proceed with the transaction. The CD business remains a non-core activity in respect of Bidcorp’s global foodservice operations. Accordingly, Bidcorp is currently considering alternative proposals which were suspended due to the advanced sale process. The CD segment was not previously classified as held-for-sale or as a discontinued operation. The comparative consolidated statement of profit or loss was restated to show the discontinued operation separately from continuing operations. The results of the discontinued operation included in the group’s results for the year ended June 30 are detailed below: 2018 R’000 2017 R’000 Revenue 18 254 268 20 458 449 Cost of revenue (16 686 301) (18 622 873) Gross profit 1 567 967 1 835 576 Operating expenses (2 194 450) (1 814 230) Trading (loss) profit (626 483) 21 346 Share-based payment expense (3 110) (3 456) Impairment of property, plant and equipment (793) (21 366) Operating loss (630 386) (3 476) Net finance charges (5 226) (3 446) Finance income 5 11 Finance charges (5 231) (3 457) Loss before taxation (635 612) (6 922) Taxation 106 283 (4 317) Loss for the year from discontinued operation (529 329) (11 239) 141 Bid Corporation Limited Annual integrated report 2018 This is Bidcorp ifc – 13 Leadership review 14 – 23 ESG reviews 24 – 47 Governance review 48 – 59 Financial statements 60 – ibc