| 23.1 | TRADE AND OTHER RECEIVABLES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 23.2 | AMOUNTS OWING FROM RELATED PARTIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For terms and conditions relating to Group-related receivables, refer to note 36. The amounts owing by subsidiary represent amounts owing by Italtile Ceramics (Pty) Ltd. These amounts are unsecured, carry no interest and are payable on demand. As the subsidiary has material liquid assets and other significant assets, credit risk is minimal and no expected credit loss is provided for. Outstanding balances are settled from time to time based on the cash flow requirements of the various entities. Trade receivables of the Group comprise amounts due from franchisees and other third-party customers, each of which has different credit risk characteristics. Credit risk relating to amounts due from franchisees is limited (recovery via underlying assets of the franchise business in the event of default is provided for in franchise agreements). An expected credit loss model (simplified approach) is used to calculate the expected credit loss allowance for third-party customers. The expected credit loss model is based on historical payment profiles and credit losses. Macro-economic factors considered by the Group when determining expected loss rates include GDP annual growth, prime lending interest rate, inflation rate and unemployment. In addition, forecast macro-economic factors for 12 months from the calculation date are also considered. Refer to note 36 for further information related to expected credit loss. As at 30 June 2025, a loss allowance of R65 million (2024: R69 million) has been recorded for trade receivables. Movements in the loss allowance of trade receivables were as follows:
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