Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

11.Contract assets

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Contract assets

217 839

188 121 (2 337) (17 126) 168 658

217 693

188 121 (2 337) (17 126) 168 658

Revenue not recognised

(597)

(597)

Loss allowance

(9 660) 207 582

(9 660) 207 436

Summary of contract assets Potable water

178 436

118 818

178 436

118 818

Non-potable water Recoverable projects

1 374

721

1 374

721

27 772

49 119

27 626

49 119

207 582

168 658

207 436

168 658

Reconciliation of contract assets Opening balance

168 658 434 969 (463 685) (119 539) 179 713 207 582 7 466

114 702 356 297 (300 389) (105 866) 113 521 168 658 (9 607)

168 658 434 823 (463 685) (119 539) 179 713 207 436 7 466

114 702 356 297 (300 389) (105 866) 113 521 168 658 (9 607)

Project revenue generated

Project billing

Expected credit (losses)/reversals

Excess days billed Days supply not billed

Included in contract assets are excess days and recoverable projects not yet billed amounting to R207.6 million (2024: R168.7 million). This is attributable to the ongoing s63 project on the Emfuleni Municipality and its relative expected credit loss tested on the probability of default assessed on the customer. In line with the impairment allowance recognised on the trade and other receivables (Note 8), an expected credit loss allowance was recognised on the contract asset amounting to R9.7 million (2024: R17.1 million).

265

Rand Water | Integrated Annual Report 2025