Notes to the Consolidated And Separate Annual Financial Statements | Note 5

5. PROPERTY AND EQUIPMENT
5.1 Property and equipment
 
   Group 
   Land and
buildings
R’000 		 Leasehold
improve-
ments
R’000 		 Equipment
R’000 		 Motor
vehicles
R’000 		 Furniture
and
fittings
R’000 		 Computer
equipment
R’000 		 Total
R’000 
RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2024 – GROUP BALANCE AT 1 JULY 2023                      
At cost  333 597  14 960  130 565  33 207  173 744  432 722  1 118 795 
Accumulated impairment  –  –  –  –  –  (25 000) (25 000)
Accumulated depreciation  (26 545) (1 788) (69 135) (21 508) (100 531) (226 417) (445 924)
CARRYING AMOUNT   307 052  13 172  61 430  11 699  73 213  181 305  647 871 
MOVEMENTS FOR THE YEAR ENDED 30 JUNE 2024                       
Additions   23   –   14 695   3 251   13 512   42 428   73 909 
Depreciation  (5 653) (1 667) (10 984) (3 752) (15 377) (56 709) (94 142)
Impairment of property and equipment (Note 5.2) –  –  –  –  –  (26 611) (26 611)
Disposals  –  –  (6 701) (239) (1 861) (574) (9 375)
PROPERTY AND EQUIPMENT AT THE END OF THE YEAR    301 422   11 505   58 440   10 959   69 487   139 839   591 652 
CLOSING BALANCE AT 30 JUNE 2024                       
At cost   333 620   14 960   134 914   34 771   174 238   450 042   1 142 545 
Accumulated depreciation  (32 198) (3 455) (76 474) (23 812) (104 751) (258 592) (499 282)
Accumulated impairment  –  –  –  –  –  (51 611) (51 611)
CARRYING AMOUNT AT 30 JUNE 2024    301 422   11 505   58 440   10 959   69 487   139 839   591 652 
               
RECONCILIATION FOR THE YEAR ENDED 30 JUNE 2023 – GROUP BALANCE AT 1 JULY 2022                      
At cost  338 200  14 852  126 881  29 382  160 040  429 890  1 099 245 
Accumulated depreciation  (21 639) (212) (63 522) (18 830) (86 677) (210 747) (401 627)
CARRYING AMOUNT   316 561  14 640  63 359  10 552  73 363  219 143  697 618 
MOVEMENTS FOR THE YEAR ENDED 30 JUNE 2023                      
Additions  182  644  17 590  5 891  15 042  35 380  74 729 
Depreciation  (4 841) (1 657) (9 723) (3 556) (14 981) (48 218) (82 976)
Impairment of property and equipment (Note 5.2) –  –  –  –  –  (25 000) (25 000)
Reclassification to Investment property  (4 850) –  –  –  –  –  (4 850)
Disposals  –  (455) (9 796) (1 188) (211) –  (11 650)
PROPERTY AND EQUIPMENT AT THE END OF THE YEAR  307 052  13 172  61 430  11 699  73 213  181 305  647 871 
CLOSING BALANCE AT 30 JUNE 2023                      
At cost  333 597  14 960  130 565  33 207  173 744  432 722  1 118 795 
Accumulated depreciation  (26 545) (1 788) (69 135) (21 508) (100 531) (226 417) (445 924)
Accumulated impairment  –  –  –  –  –  (25 000) (25 000)
CARRYING AMOUNT AT 30 JUNE 2023  307 052  13 172  61 430  11 699  73 213  181 305  647 871 

Pledged as security

The Group has not pledged property and equipment as security for interest-bearing borrowings.
5.2 Impairment
 

The Group performed an annual impairment test as at 30 June 2024. The test involved assessment of internal and external qualitative factors such as instances of underutilisation, obsolescence, physical damage, or material decline in the economic performance of the assets.
(i) Assets in the scope of IAS 36
 
Property and equipment

During the 2021 financial period, the Group embarked on an IT infrastructure refresh process during which it acquired a Linux One server. During the implementation of the asset in the 2022 financial period it became evident that this server was not compatible with the majority of the software used by the Group.

In the prior year, the Linux One server asset became idle, and management estimated the recoverable amount. In the absence of market values, the recoverable amount was determined as the carrying amount as at 30 June 2023 as if the asset was depreciated at the date of acquisition. The recoverable amount was less than the carrying amount and an impairment loss of R25 million was recognised.

During the current year the remaining carrying balance amount of Linux One was impaired to nil, an impairment loss of R26.6 million was recognised.

Total impairment losses for the year

The total impairment losses are summarised as follows:

  2024
R’000 		2023
R’000
Computer equipment 26 611 25 000
  26 611 25 000
5.3 Right of use assets
 

The Company has not entered into any leases. The right of use assets arose from leases entered into by the subsidiaries within the Group.

   Group 
R’000 
YEAR ENDED 30 JUNE 2024    
Opening carrying amount  191 065 
Additions  4 254 
Depreciation charge  (52 747)
CLOSING CARRYING AMOUNT  142 572 
AT 30 JUNE 2024    
At cost  419 642 
Accumulated depreciation  (277 070)
CLOSING CARRYING AMOUNT  142 572 
YEAR ENDED 30 JUNE 2023   
Opening carrying amount  147 964 
Additions  30 399 
Modifications  84 825 
Derecognition  (6 743)
Depreciation charge  (65 380)
CLOSING CARRYING AMOUNT  191 065 
AT 30 JUNE 2023   
At cost  443 604 
Accumulated depreciation  (252 539)
CLOSING CARRYING AMOUNT  191 065