Annual Report and Financial Statements 2012

ANNUAL REPORT AND FINANCIAL STATEMENTS 2012 | 127

8. Creditors Note

Amounts due within one year: Trade creditors Accruals

Amounts owed to subsidiary undertakings Other creditors

Loans from subsidiary undertakings

Amounts due after more than one year: Loans from subsidiary undertakings

Fixed/Floating Rate Subordinated Notes 2016/2026 10 10

31 December 31 December 2012 £m

2011 £m

0.4 2.4 0.4 0.9 4.0

8.1 45.0

250.1 295.1

During 2012, £0.7m of further consideration for the acquisition of F&C Group (Holdings) Limited was settled with Achmea B.V. This was included in other creditors at 31 December 2011.

9. Provisions for liabilities

Onerous premises contracts £m

At 1 January 2011

Provided during the year Utilised during the year

At 31 December 2011 Provided during the year Utilised during the year Released during the year

At 31 December 2012

At 31 December 2012 Falling due after more than one year Falling due within one year

At 31 December 2011 Falling due after more than one year Falling due within one year

5.9 1.1

(1.3) 5.7

0.4 (1.6) 4.5

Pension Plan

guarantee £m

0.1 0.1 –

0.2 0.1 –

Deferred tax £m

0.9 0.4

(0.9) 0.4

0.1 (0.2) 0.3

Litigation guarantee £m

–

2.0 –

2.0 – –

––– (2.0) 0.3

– 3.1 4.1 0.3 0.2 0.3 0.4 – – 1.6 –– 2.0

Total £m

6.9 3.6

(2.2) 8.3

0.6

(1.8) (2.0)

5.1 3.7 1.4 ––– 1.4

4.7 3.6

Onerous premises contracts The Company holds all properties under operating leases. This includes a number of vacant or sub-let properties which were either previously occupied or are partially occupied by the Company. Provision has been made for the residual lease commitments, where significant, after taking into account existing and expected sub-tenant contractual arrangements. The remaining terms are for up to eight years.

Assumptions have been made as to whether each leasehold property may be sub-let or assigned in the future. All leases and sub-leases are for minimum guaranteed rentals. The provision is subject to uncertainties over time including market rent reviews and break options within the lease arrangements. In addition, exposure could exist if an existing tenant defaulted or went into liquidation or administration.

The amount included within the Profit and Loss Account in respect of unwinding of the discount on onerous premises provisions in 2012 is £0.1m (2011: £0.4m).

Pension Plan guarantee The Company has agreed to provide the F&C Asset Management Pension Plan (FCAM Plan) Trustees with a guarantee that, should F&C Asset Management Services Limited become insolvent, the Company will guarantee an amount up to the lower of the cost of securing members’ benefits with an insurance company over the assets of the FCAM Plan (the ‘solvency deficit’) and £120.0m. The provision represents the actuarial estimate of the fair value of the guarantee at 31 December 2012 and 31 December 2011.

Deferred tax The deferred tax provision relates to short-term timing differences which have originated but not reversed at the balance sheet date. The provision is subject to uncertainties in respect of when timing differences might reverse. The provision relates to the revaluation of available for sale assets, which is recognised as a separate component of reserves.

A further analysis of deferred taxation is disclosed in note 11.

0.2 2.5 3.4 1.6 4.0

11.7 45.0

258.9 303.9

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