RAND WATER ANNUAL REPORT 2023

PERFORMANCE HIGHLIGHTS

FINANCIAL PERFORMANCE

National Treasury condoned Irregular Expenditure amounting to R110 million.

Net income for the Group increased by 2.1% to R3 536 million and revenue increased by 10.9% to R19 578 million

Net finance income increased by 57% to R892 million compared to the previous year

The Group has issued unsecured bonds to the amount of R4.4 billion

Net income margin (secondary activities) Target 1.0% Achieved 54.4%

Current ratio

Target 2 Achieved 2.6

Gross income margin (primary activities) Target 29% Achieved 30.8%

Net income margin (primary activities) Target 19% Achieved 19.8%

Gross income margin (secondary activities)

Target 5% Achieved 6.7%

The Group’s funding position improved to 12% (FY2022: 14%) which is well below the threshold of 50% as prescribed in the National Treasury Borrowing Limit Approval.

Gross profit increased by 12.1% to R6 034 million (FY2022: R 5 380 million) on a year-to-year basis

Water purchases: The volumes of water purchased increased by 2% , which aligns with the rise in sales volumes.

Finance income increased by 55.5% benefiting from cash investments and the recent interest hikes.

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