Download our latest Annual Report - Bakkavor

More documents

Recommendations

Info

BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012 notes to the consolidated financial statements continued 15 GOODWILL CONTINUED Goodwill acquired in a business combination is allocated, at acquisition, to the CGUs that are expected to benefit from that business combination. A summary of the allocation of the carrying value of goodwill is as follows: 29 December 31 December £m 2012 2011 UK 604.1 604.1 International 61.3 63.0 The recoverable amounts of the CGUs are determined based on value in use calculations. 665.4 667.1 The following impairments have been recognised within the Group’s two reporting segments during the period presented: 29 December 31 December £m 2012 2011 Continuing operations UK – 34.3 International – 24.8 – 59.1 Discontinued operations International – 12.1 – 12.1 There have been no impairments to goodwill in 2012. The 2011 goodwill impairment arose as a result of adverse trading conditions. The key assumptions used in the impairment reviews were as follows: • Discount rates: Management uses post-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs. The present value of the future cash flows is calculated using a pre-tax discount rate that ranges from 9.0% to 10.0% (2011: 10.0% to 10.9%). • Growth rates: The revenue growth rates are based on industry growth forecasts. Changes in selling prices and direct costs are based on past practices and expectations of future changes in the market. The Group this year has prepared cash flow forecasts derived from the most recent financial budgets approved by management for the next three years and extrapolated cash flows for the following two years based on an estimated growth rate, determined by business unit, to provide a five year forecast. Cash flows are then extrapolated using a perpetuity growth rate of 2 per cent (2011: 2 per cent). The forecast cashflow of CGUS in those territories with growth rates below 2% perpetuity have been adjusted to reflect this. The assumptions used, and the impact of sensitivities on these assumptions, are shown below: £m UK International Sensitivity: Head room of impairment test based on management assumptions 156.1 9.9 If the pre-tax discount rate were to be increased by a factor of 5%, this would result in an impairment charge of £2.7 million and for an increase of 10% the impairment charge would be £27.5 million. A 10% reduction in the perpetuity growth rate would not result in any further impairment charge. PAGE 77 VIEW THE FULL REPORT AT ANNUALREPORT12.BAKKAVOR.COM
BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012 notes to the consolidated financial statements continued 16 OTHER INTANGIBLE ASSETS Customer Customer £m Relationships Contracts Total Cost At 1 January 2011 92.7 1.6 94.3 Exchange differences (0.1) – (0.1) At 31 December 2011 92.6 1.6 94.2 Exchange differences (0.2) – (0.2) At 29 December 2012 92.4 1.6 94.0 Amortisation At 1 January 2011 (44.2) (0.9) (45.1) Impairment (4.0) – (4.0) Charge for the period (9.2) (0.2) (9.4) At 31 December 2011 (57.4) (1.1) (58.5) Charge for the period (8.5) (0.2) (8.7) Exchange differences 0.1 – 0.1 At 29 December 2012 (65.8) (1.3) (67.1) Carrying amount At 29 December 2012 26.6 0.3 26.9 At 31 December 2011 35.2 0.5 35.7 There have been no impairments to other intangible assets in 2012 (2011: £4.0 million). The breakdown of where the impairments have occurred by reporting segment is as follows: 29 December 31 December £m 2012 2011 Continuing operations UK – 1.3 International – 1.6 – 2.9 Discontinued operations International – 1.1 – 1.1 PAGE 78 VIEW THE FULL REPORT AT ANNUALREPORT12.BAKKAVOR.COM
Page 1 and 2:
Annual report AND accounts 2012
Page 3 and 4:
BAKKAVOR ANNUAL REPORT AND ACCOUNTS
Page 5 and 6:
welcome to our Bakkavor 'Fast Read'
Page 7 and 8:
usiness segments united kingdom mar
Page 9 and 10:
key performance indicators WE USE A
Page 11 and 12:
3 4 5 assets Our commitment to cont
Page 13 and 14:
More online For more information, p
Page 15 and 16:
leading customer service leading ma
Page 17 and 18:
growing our product pipeline Within
Page 19 and 20:
2 6centres of excellence investing
Page 21 and 22:
corporate governance how we manage
Page 23 and 24:
More online For more information, p
Page 25 and 26:
BAKKAVOR ANNUAL REPORT AND ACCOUNTS
Page 27 and 28: BAKKAVOR ANNUAL REPORT AND ACCOUNTS
Page 45 and 46: BAKKAVOR ANNUAL REPORT AND 2012 ACC
Page 77: BAKKAVOR ANNUAL REPORT AND ACCOUNTS
Page 111: Designed and produced by JohnstonWo
show all

Download our latest Annual Report - Bakkavor

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?