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

13. Cash and cash equivalents (continued)

The increase in cash and cash equivalents during the current reporting period was primarily due to the maturity of longer dated term deposit investments. As at 30 June 2025, the Group’s ECL relating to cash and cash equivalents increased to R2.1 million (2024: R0.5 million) primarily due to a slight increase in probability of default of certain counterparties and an increased cash and cash equivalent balance.

14. Non-current assets held-for-sale

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Total non-current assets held for sale

10 991

457

10 991

457

Movements during the year Balance at 1 July

457

82

457

82

Reclassification from property, plant and equipment

11 309

678

11 309

678

Disposals

(775)

(303)

(775)

(303)

Closing balance

10 991

457

10 991

457

The entity conducts periodic asset verification and condition assessments of its property, plant, and equipment. During the current reporting period, assets amounting to R11 million (2024: R0.5 million) were identified as redundant, no longer in use or having reached the end of their expected useful lives. These assets were subsequently reclassified as held for sale. The disposal of the assets was approved by management and they are expected to be sold at the next auction, scheduled for the first half of the following financial year. The majority of these high-value assets consist of motor vehicles that have become redundant and replaced within the fleet. Management's intention to dispose of the assets remains unchanged which includes those assets that were carried forward from the previous year.

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Rand Water | Integrated Annual Report 2025