1. RESULTS OF OPERATIONS
1.6 Cash generated by operations
 
   2023  
R'000
 
2022 
R'000 
Reconciliation of operating profit to cash generated by operations:       
Operating profit  1 126 486  1 524 449 
Adjustments for:       
Depreciation of property, plant and equipment  72 464  64 703 
Depreciation on leased assets  30 793  29 341 
Amortisation of intangible assets  446 300  338 115 
Fair value gain on financial instruments  (47 497) (47 383)
Fair value loss on financial instruments  11 050  — 
Fair value gain on contingent consideration   —  (45 823)
Impairment of property, plant and equipment  12 145  3 580 
Impairment of loans  69 578  73 
Impairment of inventory  8 495  4 205 
Loan forgiveness  (2 778) — 
Brokerage income fee capitalised    (2 347)
Fraud recoupment of assets still to be collected    (113 141)
Fair value gain on surety receivable  (32 743) (12 859)
Lease modification income  (86) (1 106)
Lease incentive received  5 018  — 
Loss on modification of financial instrument  57 453  — 
Loss on dilution of joint venture     545 
Profit on disposal of property, plant and equipment  (1 919) (1 383)
Financial guarantee release    (671)
Equity compensation benefit expense  40 012  32 278 
Net unrealised forex profit  (200) (364)
Changes in working capital:
Increase in inventories 
(1 695 313) (181 183)
Decrease/(increase) in trade and other receivables  655 641  (846 727)
Increase in trade and other payables  37 640  45 525 
(Increase)/decrease in advances to customers  (589 663) 144 750 
   202 876  934 577