Blue Label Telecoms Integrated Annual Report 2019

48 Blue Label integrated annual report 2019 Cash flows applied to financing activities amounted to R42 million, of which R224 million related to share buybacks, R42.4 million to the acquisition of treasury shares and a dividend payment of R35.6 million to non-controlling interests. After additional borrowings of R260 million, cash on hand at year-end amounted to R1.4 billion. DIVIDENDS The Board of Directors has elected not to declare a dividend. GOING CONCERN The Board of Directors evaluated the going concern assumption as at 31 May 2019 and considered it to be appropriate in the preparation of these financial statements. The Prepaid Company’s Investec banking facilities, which would have expired on 30 September 2019, have been extended to 29 November 2019 and discussions are in progress for a further extension beyond that date. STATEMENT OF CASH FLOWS continued As at the date of these financial statements, the renegotiation of these facilities had not yet been completed, and although the directors are of the opinion that the facilities would be extended beyond November 2019, material uncertainty exists should these facilities not be extended. In this event, certain liabilities within the Group would not be settled in the normal course of business. The directors are confident that the successful completion of the disposal transactions relating to 3G and the Blue Label Mobile group, will result in a significant reduction in interest-bearing debt and in turn the strengthening of the Group’s balance sheet. APPRECIATION I once again wish to express my gratitude to the Group’s finance team for their professional input and dedication throughout the year. Dean Suntup Financial Director 29 October 2019 Financial Director’s report continued