1. RESULTS OF OPERATIONS
1.6 Cash generated by operations
 
  2019
R’000
  Restated**
2018    
R’000    
 
Reconciliation of operating profit to cash generated by operating activities:        
Operating profit  209 664     1 097 549      
Adjustments for:             
Depreciation of property, plant and equipment  72 964     46 144      
Amortisation of intangible assets  203 429     138 972      
Fair value gain on financial instruments  (18 765)    (51 001)     
Fair value loss on financial instruments  873 877     45 360      
Fair value uplift on conversion from an associate to a subsidiary  (27 741)    —      
Impairment of intangible assets  5 111     338      
Impairment of property, plant and equipment  2 002     3 800      
Impairment of goodwill  124 400     —      
Impairment of loans  163 663     142 069      
Impairment of inventory  5 024     5 489      
Discounting of receivables  2 647     3 472      
Discounting of loans and other payables  (14 825)    (73 697)     
Surety receivable recognised  (29 998)    (55 005)     
Loan release*  —     (11 349)     
Profit on disposal of property, plant and equipment  (761)    (1 784)     
Profit on disposal of subsidiary  —     (2 824)     
Foreign currency translation reserve recycled on disposal of subsidiary  (144)    (3 098)     
Contingent purchase price release  —     (1 390)     
Equity compensation benefit expense  7 726     23 862      
B-BBEE charge  —     1 400      
Net unrealised forex (profit)/loss  (34 284)    9 795      
Changes in working capital (excluding the effects of acquisitions and disposals):             
(Increase)/decrease in inventories  (864 165)    1 712 311      
Increase in trade and other receivables  (434 190)    (566 585)     
Increase in trade and other payables  207 740     1 050 550      
(Increase)/decrease in advances to customers  (22 087)    74 401      
   431 287     3 588 779      
* This loan release relates to loan forgivenesses received in the prior year on the liquidation of Africa Prepaid Services Nigeria Limited.
** As a result of the prior year error the Group has restated their comparative financial information. Refer to note 11 for details.