Aspen (APN) – Impaired Growth – Update

We update our forecasts based on the latest disclosure by Aspen (APN) that they have fully impaired Zantac. APN have restated their FY19 results and raised a higher impairment loss of ZAR3.1bn. We show that APN have reclassified ZAR2bn worth of indefinite life intangible assets to definite life and have subsequently increased the remaining useful life for the intangible assets, which we believe will result in amortisation costs being manageable by the Group.