Page 39

Notes to the financial statements 13

for the year ended 31 March 2012

Land held for and under development

Group

Land held for and under development

2012

2011

£'000

£'000

26,752

31,607

The Group has undertaken a detailed review of the net realisable value of land held for and under development both relating to plots currently in development, and land and phases of sites not yet in development. This review recognises the impact of lower selling prices and reduced activity levels being experienced across the business in recent years. Net realisable value for land where construction of homes had commenced at the year end or is anticipated to commence within the next 12 months was assessed by estimating selling prices and costs (including sales and marketing expenses) taking into account current market conditions. Land where house build had not commenced at the year end and was more likely to be sold undeveloped is assessed by re-appraising the land using current selling prices and costs for the proposed development and assuming an appropriate financial return to reflect the current housing market conditions and the prevailing financing environment. At the year end the net realisable value provision amounts to £3.4m (2011: £7.9m) with the movement of £4.5m in the year reflecting utilisation of provisions of £6.2m and the creation of a further provision of £1.7m which has been reflected through cost of sales as an exceptional item. This provision will be closely monitored for adequacy and appropriateness as regards under and over provision to reflect circumstances at future balance sheet dates. Any material change to the underlying provision will be reflected through cost of sales as an exceptional item. The Company had no land held for and under development at 31 March 2012 (2011: £nil).

14

Stocks and work in progress

Group

House building developments in progress Work in progress

2012

2011

£'000

£'000

52,615

43,865

3,255

-

55,870

43,865

The Company had no stocks or work in progress at 31 March 2012 (2011: £nil)

Keepmoat Annual Report and Financial Statements 2012Annual Report and Financial Statements 2012

37

Keepmoat plc Annual report and accounts 2012  
Keepmoat plc Annual report and accounts 2012  
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