Annual Report and Accounts 2012 - Speedy Hire plc

7 Financial expense
Financial statements 69
Financial expense
Interest on bank loans and overdrafts (5.2) (4.8)
Hedge interest payable (0.7) (2.7)
Amortisation of issue costs (1.0) (0.6)
Other finance costs (0.3) (0.9)
Exceptional amortisation of bank fees following the refinancing in June 2011 (note 3) (1.7) –
Exceptional amortisation of bank fees in connection with the amendments in
July 2010 to the cash-flow-based loan facility (note 3) (0.5) (1.5)
(9.4) (10.5)
8 Taxation
Tax charged/(credited) in the income statement
Current tax
UK corporation tax on profits for the period at 26% (2011: 28%) – –
Adjustment in respect of prior years – (0.1)
Total current tax – (0.1)
Deferred tax
UK deferred tax at 24% (2011: 26%) (note 21) 3.2 (5.4)
Adjustment in respect of prior years (0.8) (1.5)
Impact of rate change (0.9) (0.7)
Total deferred tax 1.5 (7.6)
Total tax charge/(credit) 1.5 (7.7)
Tax charged/(credited) in equity
Deferred tax
Net loss on revaluation of cashflow hedges (0.1) (0.2)
The tax credit in the income statement for the year is higher than the standard rate of corporation tax in the UK of 26% (2011: 28%) and is
explained as follows:
Profit/(loss) before tax 3.2 (27.0)
Accounting profit/(loss) multiplied by the standard rate of corporation tax at 26% (2011: 28%) 0.8 (7.6)
Expenses not deductible for tax purposes 1.7 1.4
Non-taxable income (0.4) (0.5)
Share-based payments 0.1 0.2
Unrecognised tax losses 0.5 0.3
Overseas tax losses arising not subject to tax 0.5 0.7
Adjustment to deferred taxation relating to future changes in corporation tax rates (0.9) (0.7)
Adjustment to tax in respect of prior years (0.8) (1.5)
Tax charge/(credit) for the year reported in the income statement 1.5 (7.7)
Tax charged/(credited) in equity (note 21)
Deferred tax charge (0.1) (0.2)
On 21 March 2012 the Chancellor announced a reduction in the main rate of UK corporation tax to 24% with effect from 1 April 2012.
The chancellor also proposed changes to further reduce the main rate of corporation tax by 1% per annum to 22% by 1 April 2014.
The reduction to 24% was substantively enacted on 29 March 2012. The substantively enacted rate at the balance sheet date of 24% has
been applied to create a reduction in the deferred tax liability, which has been included in the figures above.
2012
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2012
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2012
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2011
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2011
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2011
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Speedy Hire Plc Annual Report and Accounts 2012
Financial statements