Annual Report and Accounts 2012 - Scapa

6. Key management compensation and Directors’ remuneration continued
Key management is defined as the Leadership Team, two new members of which joined part way through the year and two left
during the year.
The short-term employment benefits include wages and salaries, bonuses, social security contributions and non-monetary benefits.
7. Related Party Transactions
In addition to compensation listed under note 6, as part of the WEBTEC acquisition the Group has provided for deferred consideration
payments of US$10.0m and US$5.0m due on the achievement of certain performance targets over the next two years. Randy
Holmes (Director of Global Development) is part owner of the company that will be paid these contingent amounts.
The Group has incurred £0.1m of property lease costs during the year, payable to HPB Investments, a company owned in part by
Randy Holmes. The lease expires in August 2019 and the annual lease cost is £0.2m.
The pension schemes are related parties to the Group. There were no contributions outstanding at the year end and full details of
transactions within the pension schemes are detailed in note 25.
8. Net finance costs
Interest payable on bank loans and overdrafts 0.3 0.3
Expected return on pension scheme assets less interest on scheme liabilities 0.7 1.4
Discount on assets (0.6) (0.6)
Discount on provisions 0.8 0.8
Net finance costs 1.2 1.9
9. Taxation
Income tax charge
Current tax:
Tax on ordinary activities – current year (2.2) (0.6)
Tax on ordinary activities – prior year 0.2 (0.4)
(2.0) (1.0)
Deferred tax:
Tax on ordinary activities – current year (1.5) (1.5)
Tax on ordinary activities – prior year 0.1 0.4
Effect of reduction in UK corporation tax rate to 24% (2011: 26%) (0.6) (0.5)
2012
£m
2012
£m
2011
£m
2011
£m
(2.0) (1.6)
Tax charge for the year (4.0) (2.6)
The actual tax on the Group’s profit before tax differs from the theoretical amount using the UK corporation tax rate as follows:
Profit on ordinary activities before tax 10.5 6.1
Theoretical tax charge at 26% (2011: 28%) (2.7) (1.7)
Effect of reduction in UK corporation tax rate to 24% (2011: 26%) (0.6) (0.5)
Income not taxable and other deductions 0.8 0.5
Items not deductible for tax purposes and other taxable items (0.7) (0.3)
Effect of overseas tax rates being higher than UK tax rate (1.1) (0.6)
Adjustments in respect of prior years 0.3 –
Actual tax charge for the year (4.0) (2.6)
2012
£m
2011
£m
Scapa Group plc Annual Report and Accounts 2012 51
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