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

19.Trade and other payables

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Trade payables

5 278 361

3 063 289

5 278 363

3 063 290

Water Demand Management fee

154 743 195 449 672 317 278 950

-

154 743 195 449 672 317 278 183

-

Accrued leave pay

191 221 616 798 190 499

191 221 616 798 189 435

Accrued bonus Other payables

VAT

23 - 6 579 843 4 061 807 6 579 055 4 060 744 - -

Trade and other payables comprise amounts outstanding for trade and non-trade purchases. Trade and other payables are carried at amortised cost and the carrying amount approximates fair value. These are settled 30 days from the date of statement with the exception of the Department of Water and Sanitation which is settled 60 days from the date of statement. The trade and other payables incorporate retention payments that are due as and when predetermined projects milestones have been met. Due to the nature of the condition attached to the projects, the timing thereof is not easily determinable and is therefore deemed to be current in nature.

20.Contract liabilities

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Summary of contract liabilities Unconditional right to contractual obligation - recover able projects

672

19 240

672

19 240

Income received in advance

59 989 60 661

90 995

59 989 60 661

90 995

110 235

110 235

Reconciliation of contract liabilities Opening balance

110 235 (16 897) (29 908) (2 769) 60 661

134 343 (21 529) (22 416)

110 235 (16 897) (29 908) (2 769) 60 661

134 343 (21 529) (22 416)

Revenue recognised from income received in advance

Project revenue generated

Project billing

19 837

19 837

110 235

110 235

Included in the balance of R60.7 million (2024: R110.2 million) are amounts received in advance for various projects, such as the R14.1 million for the old Sedibeng Regional Sewer Scheme, R22.6 million for the Bushbuckridge Reticulation 2 Project, and R13.8 million for the Govan Mbeki and Polokwane Graduate Internship programmes. The decrease in contract liabilities is mainly attributable to the set-off of R37 million against the Sedibeng Regional Sewer Scheme and refunds of interest amounting to R9.6 million to the Gauteng Department of Human Settlements and R2.6 million to the DWS Eastern Cape Drought Relief Projects following the closure of these projects.

273

Rand Water | Integrated Annual Report 2025