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Keepmoat Annual Report 2020

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

NOTES TO THE

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 17 – Provisions for liabilities Dilapidations Other Total £’000 £’000 £’000 At 1 November 2018 387 1,923 2,310 Charged to the income statement 159 (1,270) (1,111) Utilised during the period - (653) (653) At 31 October 2019 546 - 546 Charged to the income statement 532 - 532 Utilised during the period - - - At 31 October 2020 1,078 - 1,078 Current 226 - 226 Non-current 852 - 852 At 31 October 2020 1,078 - 1,078 Current 106 - 106 Non-current 440 - 440 At 31 October 2019 546 - 546 Dilapidations The dilapidations provision covers the Group’s leased estate. A full provision up to the end of each lease was established by an independent external valuer, with the element up to the date of the financial statements being recognised in the accounts on a pro-rated straight-line basis. Other provisions Other provisions comprised redundancy provisions, legal fees in relation to claims and onerous lease provisions relating to the Group’s leased estate. As part of the restructuring of the West Midlands region, during the year ended 31 March 2018 the Group made an onerous lease provision in respect of the lease obligation for the regional office at Coleshill, which became surplus to ongoing operational requirements. During the year ended 31 October 2019 the lease was reassigned, resulting in a partial utilisation and release of the outstanding provision for future liability. 18 – Share capital and share premium 31 October 2020 31 October 2019 SHARE CAPITAL Number £’000 Number £’000 Authorised, allotted, called up and fully paid Ordinary shares of £0.01 each 85,609,686 856 78,109,686 781 All issued ordinary shares rank pari passu in all respects. On incorporation on 8 April 2014, the Company issued 1 ordinary share with a nominal value of £1 at par consideration. On 18 August 2014, the Company issued a further 99 ordinary shares of £1 each at par consideration. On 28 November 2014, the 100 ordinary shares of £1 each were subdivided into 10,000 ordinary shares of £0.01 each. On the same date, the Company issued a further 78,099,686 ordinary shares of £0.01 each for consideration of £78,109,686, giving rise to a share premium of £77,328,689. During the year ended 31 March 2018, the balance on the Company’s share premium account was subject to a capital reduction, increasing distributable reserves by the same amount. On 17 June 2020 the Company issued 7,500,000 ordinary shares of £0.01 each for consideration of £7,500,000, giving rise to a share premium of £7,425,000. 98 KEEPMOAT.COM

FINANCIAL REVIEW 19 – Retirement benefit liability Keepmoat Pension Plan The Group operates the Keepmoat Limited Group Pension Plan (“KPP”), a defined contribution plan, with assets held in independently administered funds. Some members of the KPP have a contractual promise from the Group, which is separate to the benefits payable by the KPP, being an arrangement between Keepmoat Limited and the applicable employees. The obligation arising under this arrangement has been calculated by a qualified independent actuary and accounted for as a long-term employee benefit. The contractual liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high-quality corporate bond of equivalent term and currency to the liability. The major assumptions used by the actuary to calculate the liabilities of the defined benefit obligation are: Year ended 31 October 2020 Year ended 31 October 2019 % % Discount rate 1.7% 1.9% THE MORTALITY ASSUMPTIONS USED WERE AS FOLLOWS: Year ended 31 October 2020 Years Year ended 31 October 2019 Years Pensioner age at 65: - Men 22.0 21.9 - Women 24.4 24.2 Current member age at 45: - Men 24.4 24.0 - Women 26.9 26.5 ANNUAL REPORT & FINANCIAL STATEMENTS 2020 99