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1.3 Operating profit

2024 
R’000 
2023 
R’000 
The following has been charged/(credited) in arriving at operating profit: 
Advertising and promotional expenses  57 553  52 159 
Audit fees – services as auditors relating to the year-end audit  28 127  27 498 
Audit fees – other  132  7 524 
Bad debts recovered  (29 578) (645)
Consulting fees  93 142  79 424 
Foreign exchange (gain) / loss  (1 051) 1 676 
Impairment of inventory  9 684  8 495 
Insurance  15 663  15 095 
IT infrastructure costs and computer-related costs  64 306  57 582 
Legal fees  13 923  3 594 
Licence fees  74 678  66 419 
Motor vehicle expenses  17 056  23 541 
Loss/ (profit) on disposal of property, plant and equipment  966  (1 919)
Staff training  52 203  68 310 
Travel – local and overseas  13 595  9 770 
Fair value movements comprise the following: 
Fair value gain on surety receivable  (2 555) (32 743)
Fair value gain on put option  —  (22 000)
Fair value gain on financial instruments  (4 658) (14 533)
(7 213) (69 276)
Bad debts and expected credit loss, arising from the application of IFRS 9, comprise the following: 
Bad debts and expected credit loss on loans  124 466  69 480 
Expected credit loss on 2DFine and OSI loans  —  98 
Bad debts and expected credit losses on trade receivables, other receivables and advances to customers  383 316  667 347 
507 782  736 925 
Loss on modification/derecognition of financial instruments 
Loss on modification of financial asset – Deferral Loan  —  64 500 
Gain on modification of financial liability – Class A Preference Shares1  (20 682) (7 047)
Loss on derecognition of financial assets measured at amortised cost2  53 258  — 
32 576  57 453 
1 For details regarding the modification of the Class A Preference Shares, refer to note 3.4.2.
2 For details regarding the derecognition of financial assets measured at amortised cost, refer to note 3.3.3.