1. Results of operations
1.3 Operating profit
 
2021 
R'000 		 2020 
R'000 
The following has been charged/(credited) in arriving at operating profit:   
Advertising and promotional expenses    46 284  20 341 
Audit fees – services as auditors relating to the year-end audit    25 157  30 290 
Audit fees – other    3 362  11 955 
Consulting fees    107 418  87 043 
Foreign exchange (gain)/loss    (7 091) 9 642 
Foreign exchange loss/(gain) on 2DFine and OSI loans    68 262  (50 336)
Impairment of inventory    2 995  5 167 
Insurance    11 585  8 311 
IT infrastructure costs and computer-related costs    60 822  47 884 
Legal fees    7 373  17 100 
Licence fees    44 127  23 758 
Motor vehicle expenses    14 681  14 240 
Profit on disposal of property, plant and equipment    (545) (1 809)
Profit on disposal of joint venture*    (26 955) – 
Foreign currency translation reserve release on disposal of joint venture    (52 538) – 
Loss on disposal of joint venture    1 990  – 
Travel – local and overseas    5 208  9 347 
* On 21 September 2020, the Group disposed of its 47.56% shareholding In Blue Label Mexico for R190.6 million to its co-shareholder, Grupo Bimbo S.A.B de C.V. The profit on disposal of R65.1 million is included in other income. In line with Mexican taxation legislation, taxation of R38.1 million was payable on the proceeds of the disposal thereby reducing the profit on disposal to R27 million.
2021 
R'000 		 2020 
R'000 
Impairments and fair value movements comprise the following:   
Impairment of goodwill    –  213 583 
Fair value loss/(gain) on surety receivable    21 116  (19 826)
Fair value (gain)/loss on financial instruments    (28 911) 170 476 
(7 795) 364 233 
Bad debts and expected credit loss, arising from the application of IFRS 9, comprise the following:   
Bad debts and expected credit loss on loans    6 181  4 652 
Expected credit loss on 2DFine and OSI loans*    (67 991) 51 562 
Remeasurement of financial guarantee contracts    (33 455) (7 829)
Bad debts and expected credit losses on trade receivables, other receivables and advances to customers    83 365  67 947 
(11 900) 116 332 
Included in other expenses, impairments and fair value movements, and bad debts and expected credit loss above are the following:   
Impairments, fair value and foreign exchange movements relating to Oxigen   
Expected credit loss on 2DFine loan*    (55 540) 42 387 
Expected credit loss on OSI loan*    (12 451) 9 175 
Foreign exchange loss/(gain) on 2DFine loan    55 811  (41 162)
Foreign exchange loss/(gain) on OSI loan    12 451  (9 175)
Fair value loss/(gain) on surety receivable    21 116  (19 826)
Foreign exchange (gain)/loss and expected credit loss on financial guarantee contracts    (16 605) 10 166 
4 782  (8 435)
Impairments and fair value losses relating to Cell C   
Fair value (gain)/loss on SPV1 and SPV2    (16 009) 48 694 
(16 009) 48 694 
* These loans were fully provided for in the prior year. The ECL movements on these loans in the current year predominantly relate to offsetting the forex movement recognised thereon in other expenses. The net balance remains nil.