Notes to the financial statements
for the year ended 31 March 2012
Land impairment A review undertaken at the year end concluded that a further impairment was required in respect of the carrying value of land assets held for and under development (see note 13).
Evolve Built for Life Limited During the previous year, the Group ceased operations in Evolve, its joint venture off-site modular unit manufacturing division. While most of the costs associated with this closure were incurred in the year end 31 March 2011, £1.3m of legacy costs were incurred in 2012.
Restructuring & associated costs Following the merger, the Group incurred significant restructuring costs in reorganising to deliver our business plan and strategic goals. These costs comprised, redundancies and associated restructuring costs, costs in relation to vacated properties, and asset impairment following the closure of our in-house hire division Keepmoat Site Services Limited and disposal of assets.
Property impairment Due to prevailing market conditions it was considered prudent to perform impairment reviews on the properties owned within the group. Following the review several properties were impaired by a total of £4.7m of which £1.3m has been deducted against the revaluation reserve (see note 19).
Goodwill impairment The Group has carried out a fair value review of the goodwill held in the balance sheet. The goodwill was assessed by reference to the Group’s five year business plan, using a discounted cash flow valuation. As a result, goodwill was impaired by £29.8m to a fair value of £134.7m as at 31 March 2012.
Other Other exceptional items includes a dilapidations provision which covers all of Keepmoat’s leased estate. The provision is determined based on the expected dilapidations cost per property up to the end of lease, and providing for the element up to the date of the financial statements, pro-rated on a straight line basis. The Group also incurred exceptional costs in dismantling its photovoltaic installation business which was no longer considered viable following the Government’s decision, at short notice, to bring forward the commencement date for reductions in the feed-in tariffs from March 2012 to December 2011.
Keepmoat Annual Report and Financial Statements 2012
Published on Jan 22, 2014