Notes to the Group Annual Financial Statements | Note 4.3

4. NON-FINANCIAL INSTRUMENTS
4.3 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost of property, plant and equipment includes directly attributable costs incurred, being the purchase cost plus any cost to prepare the assets for their intended use, and subsequent costs that may be capitalised.

Repairs and maintenance costs are charged to profit and loss as incurred.

  Computer 
equipment 
R'000 		 Media 
equipment 
R'000 		 Furniture, 
fittings and 
office 
equipment 
R'000 		 Motor  vehicles 
R'000 		 Leasehold 
improvements 
R'000 		 Terminals
and vending 
machines 
R'000 		 Cell C 
network 
assets 
R'000 		 Total 
R'000 
YEAR ENDED 31 MAY 2026                 
Opening carrying amount  34 436  33 703  13 078  12 898  20 725  44 927  –  159 767 
Additions  44 309  6 028  6 676  7 297  38 696  19 338  18 901  141 245 
Acquisition of subsidiaries  29 169  –  2 077  –  78 892  –  104 880  215 018 
Disposals  (298) (472) –  (3 573) (90) (832) –  (5 265)
Disposal of subsidiaries  (45 114) –  (2 652) (1 839) (107 164) (5 347) (116 882) (278 998)
Depreciation charge  (19 028) (5 314) (5 307) (4 655) (12 285) (19 076) (6 899) (72 564)
Impairments*  –  –  –  –  –  (14 248) –  (14 248)
Closing carrying amount  43 474  33 945  13 872  10 128  18 774  24 762  –  144 955 
AT 31 MAY 2026                 
Cost  123 503  55 876  30 073  28 489  31 439  82 460  –  351 840 
Accumulated depreciation  (80 029) (21 931) (16 201) (18 361) (12 665) (31 098) –  (180 285)
Accumulated impairments  –  –  –  –  –  (26 600) –  (26 600)
Carrying amount  43 474  33 945  13 872  10 128  18 774  24 762  –  144 955 
YEAR ENDED 31 MAY 2025                 
Opening carrying amount  42 318  34 303  16 565  15 865  13 345  92 849  –  215 245 
Additions  13 141  4 590  2 089  6 177  15 913  6 639  –  48 549 
Disposals  (289) –  (732) (3 560) (2 785) (4 425) –  (11 791)
Depreciation charge  (20 734) (5 190) (4 844) (5 584) (5 748) (27 986) –  (70 086)
Impairments*  –  –  –  –  –  (22 150) –  (22 150)
Closing carrying amount  34 436  33 703  13 078  12 898  20 725  44 927  –  159 767 
AT 31 MAY 2025                 
Cost  106 596  50 847  28 899  37 082  28 658  124 093  –  376 175 
Accumulated depreciation  (72 160) (17 144) (15 821) (24 184) (7 933) (63 948) –  (201 190)
Accumulated impairments  –  –  –  –  –  (15 218) –  (15 218)
Carrying amount  34 436  33 703  13 078  12 898  20 725  44 927  –  159 767 
* Impairments of property, plant and equipment are included in depreciation and amortisation in profit or loss.

There are no property, plant and equipment assets that are encumbered.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

The asset's residual values and useful lives are reviewed, and adjusted if applicable, at year-end. Where the asset's residual value is higher than the carrying value, no depreciation is provided.

Gains and losses on disposal of property, plant and equipment are determined as the difference between the carrying amount and the fair value of the sale proceeds, and are included in operating profit.

Leasehold improvements are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Depreciation is calculated on the straight-line basis to write off the cost of the assets to their residual values over their estimated useful lives as follows:

Computer equipment 25% – 33.3%  
Media equipment 10% – 20%  
Furniture, fittings and office equipment 16.67% – 25%  
Motor vehicles 20% – 25%  
Terminals and vending machines 16.67% – 33.3%  
Cell C network assets 5% - 33.3%