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Keepmoat Annual Report 2020

  • Text
  • Lease
  • Keepmoat
  • Strategic
  • Annual
  • Income
  • Assets
  • Limited
  • Homes
  • Statements
  • October
Keepmoat has released its Group financial results for the year ending 31 October 2020.

NOTES TO THE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 14 – Right-of-use asset and Lease Liabilities The Group has adopted IFRS 16 for the year ended 31 October 2020. IFRS 16 has been applied at 1 November 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying IFRS 16 is recognised in retained earnings at the date of initial application. Refer to note 26 for the impact on adoption. The Group has lease contracts for various show home properties, office space, cars and plant hire used in construction and development. The amounts recognised in the financial statements in relation to the leases are as follows: Show homes sale & leaseback Plant hire Property Vehicles Total RIGHT-OF-USE ASSET £’000 £’000 £’000 £’000 £’000 Cost Upon first time adoption on 1 November 2019 1,906 198 4,413 1,452 7,969 Additions 246 1,295 606 735 2,882 At 31 October 2020 2,152 1,493 5,019 2,187 10,851 Accumulated depreciation Upon first time adoption on 1 November 2019 - - - - - Charged during the year 1,066 407 1,051 626 3,150 Onerous lease impairment - - 596 - 596 At 31 October 2020 1,066 407 1,647 626 3,746 Net book value On adoption at 1 November 2019 1,906 198 4,413 1,452 7,969 At 31 October 2020 1,086 1,086 3,372 1,561 7,105 The liability is presented as follows: Show homes sale & leaseback Plant hire Property Vehicles Total Lease liability at 31 October 2020 £’000 £’000 £’000 £’000 £’000 Current 799 532 768 658 2,757 Non-current 413 605 3,184 975 5,177 1,212 1,137 3,952 1,633 7,934 The income statement shows the following amounts relating to leases: 31 October 2020 31 October 2019 £’000 £’000 Depreciation on right-of-use assets (included in Note 3) 3,150 - Impairment for onerous lease 596 - Interest expense (included in Note 5) 535 - Expenses relating to leases of low-value assets and short-term leases 532 - 4,813 - The total cash outflow for leases during the financial year was £4.0m, including £0.5m of interest. 94 KEEPMOAT.COM

FINANCIAL REVIEW 15 – Trade and other payables 31 October 2020 31 October 2019 £’000 £’000 Non-current: Trade payables 7,999 7,186 LTIP Liability (note 20) 2,093 545 Development land payables 100,950 89,570 111,042 97,301 Current: Trade payables 76,473 52,539 Amounts due to related party undertakings (note 23) 2,544 1,017 Other tax and social security 1,910 1,856 Other payables 246 582 Accruals 48,456 34,600 Contract liabilities 53,423 20,501 Development land payables 57,521 49,507 240,573 160,602 The maturity profile below shows the anticipated undiscounted future cash flows, based on the earliest date on which the Group can be required to pay financial liabilities on an undiscounted basis. All other balances in trade and other payables not noted below are recorded at an undiscounted basis. Trade payables Development land payables 31 October 2020 YEAR ENDED 31 OCTOBER 2020 £’000 £’000 £’000 More than one year and less than two years 7,999 30,570 38,569 More than two years and less than five years - 58,410 58,410 More than five years - 23,732 23,732 7,999 112,712 120,711 Trade payables Development land payables 31 October 2019 YEAR ENDED 31 OCTOBER 2019 £’000 £’000 £’000 More than one year and less than two years 7,186 32,046 39,232 More than two years and less than five years - 56,061 56,061 More than five years - 11,081 11,081 7,186 99,188 106,374 ANNUAL REPORT & FINANCIAL STATEMENTS 2020 95