QinetiQ Annual Report 2017

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124
Financial
Financial statements
statements QinetiQ
QinetiQ Group
Group
plc
plc
Annual
Annual
Report
Report
and
and
Accounts
Accounts
2017
2017
www.qinetiq.com
Notes to the financial statements continued
16. Non-current investments
As at 31 March
all figures in £ million
Joint venture
and associates
financial results
2017 2016
Group net
share of joint
ventures and
associates
Joint venture
and associates
financial results
Group net
share of joint
ventures and
associates
Non-current assets 0.3 0.1 0.2 0.1
Current assets 6.8 3.3 12.8 6.1
7.1 3.4 13.0 6.2
Current liabilities (4.2) (2.0) (11.2) (5.4)
Net assets of joint ventures and associates 2.9 1.4 1.8 0.8
Other non-current investments 0.1 0.1
Total 2.9 1.5 1.8 0.9
During the year ended 31 March 2017 there were sales to associates of £3.4m (2016: £3.2m). At the year end there were outstanding receivables from associates
of £0.4m (2016: £0.4m).
17. Deferred tax
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to do so and there is an intention to settle the balances net.
Movements in the deferred tax assets and liabilities are shown below:
Year ended 31 March 2017
Deferred tax asset
Short-term
all figures in £ million
Pension
liability
timing
differences Trading losses Total
At 1 April 2016 1.5 8.0 – 9.5
(Charged)/credited to income statement (1.7) 1.1 3.7 3.1
Credited/(charged) to other comprehensive income (31.2) – – (31.2)
Transfer to current tax – (0.1) – (0.1)
Foreign exchange – 1.0 – 1.0
Acquired in business combinations – (0.1) – (0.1)
Transfer to liability 31.4 – – 31.4
Gross deferred tax asset at 31 March 2017 – 9.9 3.7 13.6
Less: liability available for offset (8.2)
Net deferred tax asset at 31 March 2017 5.4
Deferred tax liability
Accelerated
all figures in £ million
Pension
surplus
capital
allowances Amortisation Total
At 1 April 2016 – (3.1) (2.3) (5.4)
Charged to income statement – (1.9) (0.2) (2.1)
Foreign exchange – 0.1 (0.2) (0.1)
Acquired in business combinations – – (6.2) (6.2)
Transfer from asset (31.4) – – (31.4)
Gross deferred tax liability at 31 March 2017 (31.4) (4.9) (8.9) (45.2)
Less: asset available for offset 8.2
Net deferred tax liability at 31 March 2017 (37.0)
Deferred tax has been calculated using the enacted future statutory tax rates.
At 31 March 2017, the Group had unused tax losses of £141.7m (2016: £154.8m) which are available for offset against future profits. A deferred tax asset of £3.7m
has been recognised in the year, with the income statement credit classified as a specific adjusting item. This asset is in respect of £18.8m of UK losses and £1.4m
of Canadian losses. No deferred tax asset is recognised in respect of the remaining £121.5m of losses due to uncertainty over the timing of their utilisation. The
Group has £66.5m of time limited losses of which US capital losses of £30.0m will expire in 2020. The remaining £36.5m of losses are time limited with £4.4m
expiring in 2034, £22.7m in 2035 and £9.4m in 2036.