Notes to the Financial Statements (forming part of the Financial Statements)
Presentation of Financial Statements
Basis of Preparation Tese accounts cover the 52 week period ended 28 June 2014 (prior financial year is the 52 week period ended 29 June 2013). Te Group Financial Statements consolidate those of the Company and its subsidiaries (together referred to as the “Group”).
Te Group Financial Statements have been prepared and approved by the Directors in accordance with International Financial Reporting Standards as adopted by the EU (“Adopted IFRSs”). Te Company has elected to prepare its parent company Financial Statements in accordance with UK GAAP; these are presented on pages 59 to 64.
It should be noted that current liabilities exceed current assets. Having reviewed the Group’s plans and available financial facilities, the Board has reasonable expectations that the Group has adequate resources to continue in operational existence for the foreseeable future. Te Group has stayed within its banking facilities during the year, meeting covenant requirements. Te Group has the continued support from its bank with facilities of £32m. In addition, the Group has a strong asset backing and strong trade debtor book. Accordingly, the Board continues to adopt the going concern basis in preparing the Financial Statements for both the Group and the parent company.
Te Board reviews the Group’s cash flow forecasts and key covenants on a regular basis to ensure that it has adequate facilities to cover its trading and banking requirements with an appropriate level of headroom. Te forecasts are based on management’s best estimates of future trading. Tere has been no breach of covenants during the year. All covenant tests were passed at the year end.
Critical Accounting Estimates and Judgements Te Group is required to make estimates and assumptions concerning the future. Tese estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Te resulting accounting estimates will, by definition, seldom equal the related actual results.
Accounting estimates and judgements have been required for the production of these Financial Statements. Te following are those that are deemed to require the most complex judgements about matters that have the most significant effect on the amounts recognised in the Financial Statements.
• Impairment of goodwill can significantly impact the Group’s Consolidated Statement of Profit and Loss for the year. Te Group estimates the recoverable amounts based on historical experience of margin, volumes and cost structure and expectations of future events. Te discount rate takes account of the current market conditions and this has been applied as a pre-tax discount factor to obtain a current value. Refer to Note 12 for further details.
• Te Group has one defined benefit pension scheme. Te net deficit or surplus is the difference between the plan assets and plan liabilities at the period end date. Te valuation of the assets and liabilities is based on a number of judgements. Te assets are based on market value at the period end date, the liabilities are based on actuarial assumptions such as discount, inflation and mortality rates. Te assumptions applied are based on advice provided by the Scheme’s actuary, further detail can be found in Note 16.
• Te Group recognises provisions where an obligation exists at the period end date and a reliable estimate can be made. Provisions for employee claims and pension augmentation have been recognised in these Financial Statements. Estimates for employee claims are made based on the number of reported accidents and incidents and the number of expected claims yet to be reported based on historical evidence, all accrued up to the maximum self-insured amount of £10,000 per claim. Te pension provision relates to a contractual liability for pension augmentation that has been valued by the pension scheme actuaries. See Note 23 for further detail.
28
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78
