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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
7
EXCEPTIONAL ITEMS (NET)
Exceptional items are those that, in management’s judgement, should be disclosed by virtue of their nature or amount. Exceptional items are
as follows:
52 weeks 52 weeks
ended ended
29 December 31 December
£m 2012 2011
Continuing operations
Restructuring costs (2.8) (7.7)
Temporary site closure (1.6) –
Defined benefit pension scheme credit – 12.0
Legal settlement – 3.1
(4.4) 7.4
Discontinued operations
Restructuring costs – (0.2)
Legal settlement 0.8 –
0.8 (0.2)
Restructuring costs
In 2012, the Group incurred £2.8 million (2011: £7.7 million) of restructuring costs from continuing operations, primarily relating to redundancy costs.
The Group did not incur any restructuring costs in 2012, relating to discontinued operations (2011: £0.2 million).
Temporary site closure
During the period, a malicious act of contamination at one of our sites led to its temporary closure. This charge related primarily to the costs
associated with the disposal of products, extending our installation of CCTV cameras, and the increased costs of working, including additional
labour costs and further security measures.
Defined benefit pension scheme
The exceptional non-cash credit of £12.0 million in 2011, relates to the defined benefit pension scheme. This has arisen due to the closure of the
defined benefit pension scheme to future accrual as at the end of March 2011.
Other exceptional items
During 2012, discontinued operations within the Group received £0.8 million (2011: £nil) from a legal claim made in relation to the acquisition of
a building. This claim has now been settled. In 2011, the Group’s continuing operations received £3.1 million from the settlement of a legal claim.
The allocation of exceptional items by segment is shown in note 4 of the accounts.
8
IMPAIRMENT OF ASSETS
52 weeks 52 weeks
ended ended
29 December 31 December
£m 2012 2011
Continuing operations
Impairment of goodwill – 59.1
Impairment of intangible assets – 2.9
Impairment of property, plant and equipment 1.0 1.7
1.0 63.7
Discontinued operations
Impairment of goodwill – 12.1
Impairment of intangible assets – 1.1
– 13.2
The annual impairment review of the carrying value of goodwill and intangible assets has resulted in no impairment charge being recognised
within the Group (2011: £63.7 million from continuing operations and £13.2 million from discontinued operations).
During the period, the Group has impaired property, plant and equipment by £1.0 million (2011: £1.7 million), within continuing operations in its
UK businesses.
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