GPG Report & Accounts 2003 - Guinness Peat Group plc

GUINNESS PEAT GROUP PLC • ANNUAL REPORT • 3924. Provisions for Liabilities and ChargesGroupCompanyYear ended 31 December 2003 2002 2003 2002£000 £000 £000 £000Deferred tax 1,849 7,388 – –Pension liabilities 978 1,068 – –Onerous lease commitments 6,980 6,116 1,087 966Other provisions 855 1,212 – –10,662 15,784 1,087 966Deferred Pension Onerous Othertax liabilities leases provisions Total£000 £000 £000 £000 £000GROUPAt 1 January 2003 7,388 1,068 6,116 1,212 15,784Currency translation differences 1,067 (63) 294 40 1,338Acquisition of subsidiaries (note 32) – – 1,068 – 1,068Utilised in year – (53) (1,217) (547) (1,817)Charged to the profit and loss account (3,105) 26 499 135 (2,445)Unwinding of discount – – 220 15 235Released from reserves (3,501) – – – (3,501)AT 31 DECEMBER 2003 1,849 978 6,980 855 10,662Overseas taxation of £200,000 (2002: £3,500,000) has been provided in respect of timing differences that are not expected toreverse in the foreseeable future.Notes:i) Included in the Group’s provisions for onerous leases, pensions and other commitments are amounts totalling £1,738,000 (2002:£2,590,000) which are payable within one year. The leases relate to buildings which are no longer occupied by the Group. In many cases,sub-leases have been granted in respect of these buildings but where the rent receivable is insufficient to cover the lease commitments aprovision has been made for the deficit. The provision covers the period to 2023 (2002: 2023) and is based on assumptions concerningthe outcome of rent reviews and the rent receivable from new sub-tenants, both of which are uncertain. The expected future cash flowshave been discounted on a pre-tax basis at nominal interest rates of 5.0% (UK) and 3.0% (Germany).ii) Other provisions mainly comprise post retirement healthcare obligations for former employees of Staveley in the UK and the US. Theseliabilities expire on the death of the beneficiaries. They are based on management’s estimate of future costs, having regard to pastexperience, and have been discounted at 5.3%.Year ended 31 December 2003 2003 2002 2002Provided Unprovided Provided Unprovided£000 £000 £000 £000DEFERRED TAX IS ANALYSED AS FOLLOWS:Accelerated capital allowances (470) – 1,958 –Short term timing differences (187) (581) 4,517 (4,270)Revenue losses carried forward – (14,480) (2,670) (10,266)Capital losses carried forward (1,131) (72,743) (8,222) (37,100)(1,788) (87,804) (4,417) (51,636)Comprising:Deferred tax assets (3,637) (11,805)Deferred tax liabilities 1,849 7,388(1,788) (4,417)