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Keepmoat Annual Report 2020

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Keepmoat has released its Group financial results for the year ending 31 October 2020.

NOTES TO THE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 6 – Income tax charge (continued) The position at year/period end was: Year ended 31 October 2020 Year ended 31 October 2019 £’000 £’000 Deferred tax assets (8,290) (3,544) Deferred tax liabilities 185 184 (8,105) (3,360) The movement for the year in the net deferred tax account is as shown below: Year ended 31 October 2020 Year ended 31 October 2019 £’000 £’000 At 1 November (3,360) (5,040) (Credit)/charge to income statement (4,745) 1,680 (8,105) (3,360) Deferred tax assets have been recognised in respect of tax losses, corporate interest restriction and other temporary differences giving rise to deferred tax assets, where it is probable that the assets will be recovered through trading and taxable profits. The directors have assessed the carrying value of the deferred tax assets relating to losses and corporate interest restriction at the balance sheet date and are of the opinion that they are supported by future forecast profits, notwithstanding current year losses generated. Property, plant & equipment Tax losses Interest deductability Other Total DEFERRED TAX ASSETS £’000 £’000 £’000 £’000 £’000 At 1 November 2018 665 2,537 1,954 101 5,257 Charge to income statement (236) (795) (581) (101) (1,713) At 1 November 2019 429 1,742 1,373 - 3,544 (Charge)/Credit to income statement (36) 1,573 2,955 254 4,746 At 31 October 2020 393 3,315 4,328 254 8,290 Fair value adjustments Other Total DEFERRED TAX LIABILITIES £’000 £’000 £’000 At 1 November 2018 - 217 217 Credit to income statement - (33) (33) At 1 November 2019 - 184 184 Charge to income statement - 1 1 At 31 October 2020 - 185 185 86 KEEPMOAT.COM

FINANCIAL REVIEW 6 – Income tax charge (continued) 31 October 2020 31 October 2019 UNPROVIDED DEFERRED TAX £’000 £’000 Tax losses 19,774 18,245 19,774 18,245 A deferred tax asset amounting to £19,774,000 (31 October 2019: £18,245,000) in relation to certain losses within the Group has not been recognised as the Directors are of the opinion that there is a doubt over the recoverability of this asset due to the level of taxable profits in the relevant entities and the impact of the loss utilisation rules that were introduced from 1 April 2017. 7 – Goodwill and other intangible assets Goodwill Contracted customer relationships Land development rights Computer software Total £’000 £’000 £’000 £’000 £’000 Cost At 31 October 2019 and 1 November 2019 29,544 6,366 3,503 2,206 41,619 Additions - - - 336 336 Transfers between classes - - - 204 204 At 31 October 2020 29,544 6,366 3,503 2,746 42,159 Accumulated amortisation At 1 November 2018 - 6,304 1,905 1,822 10,031 Charge for the year - 62 343 266 671 At 31 October 2019 - 6,366 2,248 2,088 10,702 Charge for the year - - 133 168 301 Transfers between classes - - - 81 81 At 31 October 2020 - 6,366 2,381 2,337 11,084 Net book amount At 31 October 2020 29,544 - 1,122 409 31,075 At 31 October 2019 29,544 - 1,255 118 30,917 At 1 November 2018 29,544 62 1,598 384 31,588 Amortisation of contracted customer relationships and land development rights are included within cost of sales whilst amortisation of computer software is included with administration expenses. During the financial year it was noted that some IT software had historically been incorrectly disclosed as part of property, plant and equipment. Therefore, the opening balance of cost and amortisation has been transferred to intangibles and the assets treated under the correct classification for the year ended 31 October 2020. ANNUAL REPORT & FINANCIAL STATEMENTS 2020 87