| During the year ended 28 February 2007, the DVT group generated a consolidated turnover of R36 million with R3,1 million in earnings. This represents a year on year growth in turnover of 59%.
Operating expenses - Included in operating expenses is an amount of R1,3 million relating to the amortization of intangible assets (2006 – R680 842) and a further R460 463 impairment loss (2006 – nil) relating to a developed product in DVT Cape.
Investments - The 7,5% minority interest in DVT Cape and a 20% minority interest in DVT Gauteng was acquired by the DVT group. For the first 6 months of the year the company held only a 25,5% interest in DVT Gauteng and 25,5% of its results were recognised as an Investment in Associate via the equity accounting method. On 1 September 2006, the company increased its shareholding in DVT Gauteng to 80% through the purchase of 54,5% at a cost of R1,5 million and was accounted for as a subsidiary for the 2nd half of the year. The effect of this transaction increased goodwill by R743 286.
Share capital - The company started the year with an authorised share capital of 1 000 ordinary shares of R1 each, which was then increased to 10 000 ordinary shares of R1 each on 28 July 2006. The authorised share capital of 10 000 ordinary shares of R1 each was then divided into 2 000 000 ordinary shares of R0.005 each at same date. |