Notes to the Consolidated And Separate Annual Financial Statements | Note 8

Movement in the loss allowance for trade receivables are as follows:

The Group applies the IFRS 9 simplified approach to measuring ECL which uses a lifetime expected loss allowance for all the trade receivables.

To measure the ECL, trade receivables have been grouped based on the shared credit risk characteristics and the days past due.

The expected loss rates are based on the payment profiles of sales over a period of 36 months before 30 June 2024 and the corresponding historical credit losses experienced within this period. The historical loss rate has been adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified the annual gross domestic product (GDP) rate, average prime lending rate, inflation rate and unemployment rate to be the most relevant factors and accordingly, adjusts the historical loss rates based on expected changes in these factors.

All receivables are expected to be realised within 12 months. The carrying amounts of all trade and other receivables approximate fair value due to the short- term nature of the receivables, hence the impact of discounting is immaterial.

The ratings for Nedbank Limited, Standard Bank Limited, Absa Bank Limited and CitiBank Limited were obtained from Moody’s.

The ratings for Bank Windhoek Limited were obtained from Global Credit Rating Company.

The ratings for Mercantile bank Limited were obtained from Fitch ratings.

The rating scores are based on the following broad investment grade definitions:

Movement in borrowings are as follows:

During the current year, the credit facility was restructured effective 30 June 2024. The Nedbank facility equals a total of R1.2 billion consisting of Revolving Credit Facility of R350 million, 5-year Term Loan of R250 million, General Banking Facility of R300 million and a headroom on the Revolving credit facility of R300 million. The credit facility was initially entered with Nedbank in March 2019 for a 5-year term to March 2024. During the 2023 financial year, the credit facility period was extended to March 2025.

Compliance with loan covenants

R628 million, inclusive of accrued interest, has been utilised by the Group of which amounts have been applied to funding the working capital and general corporate requirements of the Group. The rate of interest on the loan for each interest period is the percentage rate per annum which is the aggregate of the applicable Margin and JIBAR.

The financial condition to the Nedbank facility is for the Group to ensure that net debt to EBITDA in respect of any relevant period shall not exceed 2.5:1 times and interest cover in respect of any relevant period shall not be less than 4:1 (refer to Note 3 (v)).

Movement in lease liabilities are as follows:

The total cash outflow for leases in 2024 was R79.4 million (2023: R80.1 million).

The lease payments are discounted using the incremental borrowing rate, being the Group’s credit facility interest rate.

Loans from group company comprise the following balances:

The loan is unsecured, bears interest and is repayable after 5 years.
Subsequent to initial recognition, the loan is measured at amortised cost.