24. REVENUE
 

Disaggregated revenue
 
Figures in Rand thousand 2020   Restated*#
2019   		  
Revenue by sector
Public sector 21%   18%     
Private sector 79%   82%     
Total 100%   100%     
Major revenue types**
Hardware sales 1 075 631   1 608 551     
Services 9 311 943   12 040 194     
Software/licence contracts 816 376   1 026 719     
Rentals*** 72 753   273 836     
Total 11 276 703   14 949 300     
Timing of revenue recognition    
Goods or services transferred to customers:
– at a point in time 1 468 942   2 251 074     
– over time 9 807 761   12 698 226     
Total 11 276 703   14 949 300     
Continuing operations 8 690 350   10 746 037     
Discontinued operations 2 586 353   4 203 263     
Total 11 276 703   14 949 300     
* Comparative figures previously reported have been amended to reflect continuing operations prevailing for the year ended 31 July 2020.
# Refer to note 3 – Restatement of consolidated annual financial statements.
** In the current year revenue has been disaggregated into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The disaggregation for the prior year has been updated to align to the current year disaggregation.
*** Rentals recognised are excluded from revenue from contracts with customers and accounted for under IRFS 16.
Figures in Rand thousand 2020    Restated*
2019  		  
Contract balances
Contract assets (note 12) 429 689    644 937    
Contract liabilities (note 22) (348 014)   (391 937)   
Total 81 675    253 000    
* Comparative figures previously reported have been amended to reflect continuing operations prevailing for the year ended 31 July 2020.

Contract assets primarily relate to the Group's rights to consideration for work completed but not billed at the reporting date for mostly services contracts.

Contract assets are transferred to receivables when the rights become unconditional, which usually occurs when the Group issues an invoice to the customer.

Contract liabilities primarily relate to the advance consideration received from customers for services and maintenance contracts. Revenue is recognised from the contract liability amounts as and when services are delivered and related performance obligations satisfied.

Significant changes in the contract assets and the contract liabilities balances during the year are as follows:

Figures in Rand thousand 2020    2019   
Contract assets
Contract assets at the beginning of the year 644 937    799 768   
Net decrease in contract assets for the period (150 998)   (119 508)  
Impairment allowance (note 41) (64 250)   (35 323)  
Contract assets at the end of the year 429 689    644 937   
Contract liabilities
Contract liabilities at the beginning of the year 391 937    422 937   
Net increase in contract liabilities for the period 112 676    39 028   
Liabilities directly associated with assets held for sale (156 599)   (70 028)  
Contract liabilities at the end of the year 348 014    391 937   
Contract assets
Unbilled revenue (note 12) 554 284    738 773   
Allowance for impairment (note 12) (124 595)   (93 836)  
Net contract assets 429 689    644 937   
 

Performance obligations

Nature of goods and services

The following table provides an explanation of the Group's performance obligations:

Revenue type Recognition drive Transfer of control Measurement of transaction price Duration of contract
Hardware sales Upon delivery At a point in time Contracted amounts <1 year
Services Monthly/costs incurred Over time Contracted amounts >1 year
Software/licence contracts Agent – upon delivery
Principal – monthly		 Agent – at a point in time
Principal – over time		 Contracted amounts >1 year
Rentals Monthly rentals Over time Contracted amounts >1 year

The Group has applied the practical expedient allowed for contracts expected to be less than one year. The Group is not separating the significant financing component out of the transaction price.

Remaining performance obligations

The following table includes revenue to be recognised in future related to performance obligations that are unsatisfied (or partially satisfied):

Figures in Rand thousand 2020   2019  
Within one year 89 632   2 049 564  
More than one year 204   73 290  
Total 89 836   2 122 854  

The performance obligations expected to be recognised in more than one year relate to maintenance, software, managed and services contracts that is to be satisfied within two years. All the other remaining performance obligations are expected to be recognised within one year.

Where revenue is recognised over time on the costs incurred method, estimates are made to the total budgeted cost.

Significant judgement was applied in assessing whether the Group is an agent or principal in the software/licence contracts and hardware sales.