Interfront 2023 Annual Report

88 INTERFRONT ANNUAL REPORT 2023 Statement of Financial Position Current assets experienced a slight increase of 3.7%. Notably, receivables from exchange transactions underwent a significant surge of 170%. This rise can be attributed to the inclusion of the eFiling and e@syFile teams, which resulted in substantial growth in customer account balances. Additionally, prepayments have seen a substantial increase due to the higher licence fees associated with accommodating an expanded workforce and supporting systems. Non-current assets registered a decrease of 8.3%. This decline was primarily driven by the amortisation of intangible assets. However, it was partially offset by an increase in Property, Plant, and Equipment, which was necessitated by the growth in staff numbers. Current liabilities witnessed a notable increase of 57.9%. This upswing was primarily due to higher staff-related provisions, aligned with the overall increase in average staff numbers. Furthermore, payables from exchange transactions rose by 19.7%, driven chiefly by increased staff-related accruals and other accruals related to the company’s expansion. Non-current liabilities of the company decreased by 36.4%. This decrease was attributable to the reversal of the non-current portion of the operating lease liability. The company’s financial results, aligned with the break-even financial model, reflect an accounting deficit after tax of R9 793 627 (2022: R 6 383 966). Consequently, there was a decrease in net assets of 16.1%, amounting to R50.9 million (compared to R60.721 million in the previous year). This decline can be attributed to factors such as the one-time recruitment fee incurred during the transfer of the eFiling team. In conclusion, Interfront, as a responsible participant in the public sphere, remains committed to sound financial management. The company is committed to implementing cost-saving initiatives outlined by the National Treasury.