Notes to the financial statements | Note 4.1

4. Working capital
4.1 Lease receivables
4.1.1 Finance lease receivables
 

The Group provides voice and non-voice services to its customers, which make use of router and PABX equipment that are dedicated to specific customers. The disclosed information relates to those arrangements which were assessed to be finance leases.

      Group    
2024  Total
Rm 		 <1 year
Rm 		 1 – 5 years
Rm 
Minimum lease payments receivable          
Lease payments receivable  691  334  357 
Unearned finance income  (76) (36) (40)
Present value of minimum lease income (Lease receivables) 615  298  317 
Expected credit loss  (36)      
Carrying amount  579       
2023          
Minimum lease payments receivable          
Lease payments receivable  750  365  385 
Unearned finance income  (77) (36) (41)
Present value of minimum lease income (Lease receivables) 673  329  344 
Expected credit loss  (25)      
Carrying amount  648       

Credit risk has increased for the Group resulting in an increase in ECL compared to the prior year even though the carrying amount has decreased. The increase in the ECL was due to specific customers' account balances that have been long outstanding.

    Company  
 2024 Total 
Rm 		 <1 year 
Rm		 1 – 5 years 
Rm 
Minimum lease payments receivable      
Lease payments receivable 56  24  32 
Unearned finance income (8) (4) (4)
Present value of minimum lease income (Lease receivables) 48  20  28 
Expected credit loss (10)    
Carrying amount 38     
2023      
Minimum lease payments receivable      
Lease payments receivable  71   34   37 
Unearned finance income (9) (5) (4)
Present value of minimum lease income (Lease receivables) 62  29  33 
Expected credit loss (10)    
Carrying amount 52    
4.1.2 Operating lease revenue
 
  Group operating leases
2024 Total 
Rm 		 <1 year 
Rm 		 1 – 5 years 
Rm 		 >5 years 
Rm 
Rental receivable on buildings (73) (37) (36) – 
Customer premises equipment receivables (7) (4) (3) – 
Exchanges (94) (94) –  – 
Masts and towers1 (2 417) (684) (1 733) – 
Total (2 591) (819) (1 772) – 
2023        
Rental receivable on buildings (185) (39) (138) (8)
Customer premises equipment receivables (3) (2) (1) – 
Exchanges (178) (71) (70) (37)
Masts and towers1 (1 835) (577) (1 243) (15)
Total (2 201) (689) (1 452) (60)
1 In the current year, Swiftnet has been disclosed as a non-current asset held for sale. Future rentals will not materialise once Swiftnet has been sold.
  Company operating leases
2024 Total 
Rm 		 <1 year 
Rm 		 1 – 5 years 
Rm 		 >5 years 
Rm 
Rental receivable on buildings 244  76  168  – 
Customer premises equipment receivables (7) (4) (3) – 
Exchanges –  –  –  – 
Total 237  72  165  – 
2023        
Rental receivable on buildings1 396  81  315  – 
Customer premises equipment receivables (3) (2) (1) – 
Total 393  79  314  – 
1 The prior year was restated to correct disclosure relating to future rental receivable on investment property buildings which was omitted in the prior year. The error does not have any impact on the information presented within the primary statements and only impacted this note disclosure.