Investments in subsidiaries are carried at cost less any accumulated impairment losses in BLT's annual financial statements.

Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes directly attributable costs of investments.

Subsidiaries are all entities over which BLT has control. BLT controls an entity when BLT is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

Name of company %
Carrying amount
Blu Nova Proprietary Limited 100.00 100.00 —* —*
Blue Label Company Proprietary Limited 100.00 100.00 —* —*
Blue Label Distribution Proprietary Limited 100.00 100.00 194 000 194 000
Blue Label One Proprietary Limited 100.00 100.00 40 000 40 000
Blue Label Ventures Proprietary Limited 100.00 100.00 —* —*
Budding Trade 1170 Proprietary Limited 100.00 100.00 6 000 6 000
Datacel Direct Proprietary Limited 100.00 100.00 150 000 150 000
Glocell Retail Solutions Proprietary Limited 100.00 100.00 —* —*
Gold Label Investments Proprietary Limited 100.00 100.00 —* —*
One World Telecoms Proprietary Limited 100.00 100.00 —* —*
The Prepaid Company Proprietary Limited 100.00 100.00 2 433 048 2 433 048
TicketPros Proprietary Limited 100.00 100.00 14 700 14 700
Transaction Junction Proprietary Limited 60.00 60.00 4 200 4 200
Uninex Proprietary Limited** 100.00 —*
Ventury Group Proprietary Limited 100.00 100.00 98 701 98 701
WiConnect Proprietary Limited 100.00 100.00 5 000 5 000
Accumulated impairment of WiConnect Proprietary Limited     (5 000) (5 000)
      2 940 649 2 940 649

All subsidiaries listed above are incorporated in South Africa.

* Less than R1 000.
** Uninex Propriety Limited was deregistered on 23 September 2022.

The Prepaid Company Proprietary Limited

An impairment indicator was identified in the current year for the investment in The Prepaid Company Proprietary Limited. This indicator was also present in the prior year. A value-in-use calculation has been performed to determine the recoverable amount of the investment. This calculation uses cash flow projections based on financial budgets approved by the Board of Directors for the forthcoming year and forecasts for up to five years which are based on assumptions of the business, industry and economic growth. Cash flows beyond this period are extrapolated using a terminal growth rate which does not exceed the expected long-term economic growth rate.

The key assumptions used for the value-in-use calculations are as follows:

  2023 2022
Average EBITDA margin % 2.0 3.7
Terminal growth % 4.5 4.5
Pre-tax discount rate (%)* 22.1 15.9
* The increase in the pre-tax discount rate of 6.2% was attributable to a higher specific risk being applied to take into account the risk associated with Cell C cash flows.

The discount rates used are pre-tax and reflect specific risks relating to The Prepaid Company Proprietary Limited. The growth rate is used to extrapolate cash flows beyond the budget period. The growth rates were consistent with publicly available information relating to long-term average growth rates for the markets in which the companies operate. BLT's target debt-to-equity ratio is applied in the calculation of the weighted average cost of capital.

Based on the calculation performed, no impairment loss was recognised in the current or prior year. If one or more of the inputs were changed to a reasonable possible alternative, there would be no impairments that would have to be recognised.

WiConnect Proprietary Limited

BLT's investment in WiConnect Proprietary Limited was fully impaired in FY20. The Directors of WiConnect Proprietary Limited are still in the process of realising all assets and settling all liabilities, after which they will consider deregistering WiConnect Proprietary Limited.