Annual Report and Accounts 2012 - Speedy Hire plc

82 Financial statements
Notes to the financial statements
continued
24 Note to the cash flow statement – cash from operating activities
Profit/(loss) before tax 3.2 (27.0)
Financial expense 7.2 9.0
Exceptional financial expense 2.2 1.5
Exceptional write down of accommodation assets – 13.8
Amortisation 4.1 5.5
Depreciation 43.6 55.1
Profit on disposal of hire equipment (4.8) (5.0)
Loss on disposal of other property, plant and equipment 0.7 –
Exceptional writedown of non-hire property, plant and equipment – 0.1
(Increase)/decrease in inventories (2.6) 1.1
Decrease in trade and other receivables 10.0 6.4
Increase/(decrease) in trade and other payables 5.3 (9.1)
Movement in provisions (0.2) (2.6)
Equity-settled share-based payments 1.0 0.9
Cash from operating activities 69.7 49.7
25 Acquisitions
The Group entered into a strategic supply agreement with Morgan Sindall Group plc on 31 October 2011. As part of the agreement the
Group acquired one depot together with associated hire equipment. The total consideration was £5.2m cash which was paid in the year.
Fair value
£m
Intangible assets 1.9
Hire equipment assets 3.3
Total consideration 5.2
Satisfied by:
Cash consideration 5.2
The fair value adjustment to hire equipment assets relates to the adjustment of fixed asset lives and residual values to bring the basis into
line with the Group’s own accounting policy.
Disclosure of revenue and profit for the acquisition that is included in the income statement for the period, together with disclosure of
revenue and profit for the acquisition as if it had been completed at the beginning of the year, is impractical, due to the acquisition being
fully integrated into the business.
26 Contingent liabilities
The Group has given warranties (including taxation warranties and indemnities) to the purchasers of six businesses disposed of over the
last 12 years. These warranties and indemnities expire at various dates up to 12 years from the date of disposal.
In the normal course of business, the Company and certain subsidiaries have given performance bonds issued on behalf of Group
companies and parental guarantees have been given in support of the contractual obligations of Group companies on both a joint and
a several basis.
Speedy Hire Plc Annual Report and Accounts 2012
2012
£m
2011
£m