RAND WATER BOARD - Rand Water Board-Publication of Annual Financial Statements

Rand Water Board-Publication of Annual Financial Statements

RAND WATER BOARD
(Rand Water is established in terms of the Water Services Act,
1997 (the “Act”). The Government of the Republic of South Africa,
through the Department of Water and Sanitation and duly represented
by the Minister of Water and Sanitation, is the sole shareholder
of Rand Water. In terms of the Act, Rand Water's primary activity
is the provision of bulk water supply services (potable bulk water
and sanitation services) within the predetermined service area.)

(“Rand Water”)
Bond Issuer Code: BIRW


PUBLICATION OF 2019 CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

Noteholders are advised that Rand Water has published its audited
Annual Financial Statements for the financial year ended 30 June
2019 (“the AFS”).

Rand Water has obtained an unqualified audit report for the AFS
ending 30 June 2019. Rand Water produced solid financial
performance underpinned by growth in revenue led by tariff
increment, increase in volumes and the ability to immensely manage
costs. Performance highlights:

  •   Revenue increased by 14% to R15,334mil (2018: R13,453mil)
  •   Gross income grew by 17% to R5,539mil (2018: R4,737mil)
  •   Net income grew by 18% to R3,549mil (2018: R3,012mil)
  •   EBITDA grew by 13% to R3,886mil (2018: R3,454mil)
  •   Total assets grew by 13% to R29,846mil (2018: R26,511mil)


Prior financial statements were restated due to major inspection
costs that were previously capitalised. The capitalization was in
terms of IAS 16: Property, Plant and Equipment paragraph 14 on
major inspections. The assessments were part of project scoping
and capital infrastructure renewal program
prioritization that resulted in major leaks being detected in the
pipeline network.

During the current year audit, further analysis of the
transactions, the assessment of the condition to operate was
reviewed to be confined to conditions that are imperative and
legislated. It is sound engineering practice to perform the
assessment to avoid catastrophes. Therefore, R421 million has been
adjusted retrospectively in the current annual financial
statements. Refer to note 38 in the AFS for further details
relating to the restatement.


The assessments, which are part of project scoping, informs the
Rand Water capital infrastructure renewal program
The Annual Report and the Annual Financial Statements are available
for   viewing   or   downloading   on   the  Rand   Water   website
http://www.randwater.co.za/Annual    Reports/Annual   Reports/2018-
2019 Annual Report Final/10374 RANDWATER AR FINAL Electronic
2019.pdf

23 December 2019

Debt Sponsor
The Standard Bank of South Africa Limited

For further information on the Notes issued please contact:

Natalie Di-Sante          SBSA                (011) 721 6125

Shanita Budhoo            Rand Water          (011) 682 0669

Rand Water information:
522 Impala Road, Glenvista, 2058, Johannesburg, Gauteng, South
Africa
PO Box 1127, Johannesburg, 2000
Tel: +27 11 682 0318
Fax: +27 11 682 0673
www.randwater.co.za

Date: 23-12-2019 09:40:00
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