2025

Group annual financial statementsfor the year ended 30 September 2025

Property, plant and equipment are stated at cost, excluding the costs of day-to-day servicing, less accumulated depreciation and accumulated impairment losses. Expenditure incurred on major inspection and overhaul, or to replace an item, is accounted for as separate components if the recognition criteria are met.

Depreciation is calculated on a straight-line basis, on the difference between the cost and residual value of an asset, over its useful life. Depreciation starts when the asset is available for use. An asset's residual value, useful life and depreciation method is reviewed at least at each financial year end. Any adjustments are accounted for prospectively.

The following useful lives have been estimated:

Freehold land and buildings

« Freehold land	Not depreciated
« Freehold buildings
– General purpose	40 years
– Specialised	20 to 50 years

Leasehold improvements	Shorter of the lease term or useful life
Plant, vehicles and equipment
« Computer equipment	3 to 6 years
« Vehicles	3 to 11 years
« Plant and equipment	5 to 20 years

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

The group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Land and buildings	2 to 10 years
Vehicles	1 to 8 years
All other leases	2 to 5 years

If ownership of the leased asset transfers to the group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are subject to impairment.

The group also has certain leases with lease terms of 12 months or less and leases of various vehicles and equipment with low value. The group applies the "short-term lease" and "lease of low-value assets" recognition exemptions for these leases.

Operating assets are assessed annually to determine if any impairment indicators exist. If this is the case, the asset's value in use is determined based on expected future cash flow generation, discounted to present value using a pre-tax discount rate reflecting current market assessments of the time value of money less costs to sell. An impairment loss is recognised in profit or loss if the carrying amount of an asset exceeds its recoverable amount.

Inventories are stated at the lower of cost or net realisable value. Costs incurred in bringing each product to its present location and conditions are accounted for as follows:

• Raw materials: Purchase cost on a first-in first-out basis
• Finished goods and work-in progress: Cost of direct material and labour and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs

Consumables are written down with regard to their age, condition and utility. Net realisable value is the estimated selling price in the ordinary course of business, less estimated completion and selling costs.

Obsolete, redundant and slow-moving items are identified on a regular basis and are written down to their estimated net realisable values. The amount of the write-down is recognised in cost of sales in the year in which it occurs.

Right-of-return assets

A right-of-return asset is recognised for the right to recover the goods expected to be returned by customers. The asset is measured at the former carrying amount of the inventory, less any expected costs to recover the goods and any potential decreases in value. The group updates the measurement of the asset for any revisions to the expected level of returns and any additional decreases in the value of the returned products.

Impairment of financial assets

The group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures where there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 months (a 12-month ECL). For those credit exposures where there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the group applies a simplified approach in calculating ECLs. Therefore, the group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the trade receivable and the economic environment.

The group considers a financial asset in default when contractual payments are 60 days past due the standard credit terms which is 30 days to 45 days, and the repayment profile of customers. 85% of all customers have payment terms of 30 days or less. 60 days past due is considered to be an appropriate indicator of default on the group's financial assets when considered against the group's customer base, the trading terms for which are predominantly 30 days. This is also informed by the group's extensive experience with its customer base. However, in certain cases, the group may also consider a financial asset to be in default when internal or external information indicates that the group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Factors taken into consideration would include external market and economic outlook reports, observable trends and cyclicality.

Investment in unit trusts

The investment is measured at fair value through profit or loss, as it does not meet the criteria for classification at amortised cost or at fair value through comprehensive income. Fair value is determined using quoted market prices.

Dual currency deposit

Funds placed under a dual currency deposit (DCD) arrangement are disclosed as short-term investments. The DCD is a structured deposit denominated in foreign currency with a maturity of less than 12 months. The instrument provides an enhanced yield relative to standard foreign currency deposits and may be settled in either foreign currency or the group's functional currency (rand), depending on market exchange rate movements at maturity.

The investment is measured at fair value through profit or loss, as it does not meet the criteria for classification at amortised cost or at fair value through other comprehensive income. Changes in fair value are recognised in profit or loss within finance income or expense and reflect movements in the foreign currency exchange rate over the period.

The fair value of the DCD is classified as level 2 in the fair value hierarchy, as it is determined using valuation models based on observable foreign exchange rates. No significant unobservable inputs are applied. The fair value is sensitive to movements in the foreign currency exchange rate, as settlement may occur in either currency depending on the rate at maturity.

Accruals for rebates and incentives are recorded as a reduction of revenue and recognised as a liability until the amount is settled or credited to a customer. Estimates are updated at each reporting date based on the latest available information, including sales performance, contractual terms and historical trends.

Any subsequent adjustments to previously recognised estimates are recorded in the period in which the change occurs.