53 Finsbury Food Group Annual Report & Accounts 2017


Notes to the Consolidated Financial Statements


7. Finance Income and Cost Recognised in the Consolidated Statement of Profit and Loss


2017 £000


Finance income Change in fair value of interest rate swaps Bank interest receivable Total finance income


Finance cost Interest on net pension position Bank interest payable


Interest on interest rate swap agreements Total finance cost


8. Taxation Recognised in the Consolidated Statement of Profit and Loss


2017 £000


Current tax Current year


Adjustments for prior years Total current tax


Deferred tax Origination and reversal of temporary differences Retirement benefit deferred tax charge Adjustments for prior years Total deferred tax Total tax expense


2016 £000


2016 £000


555 -


555


(204) (752) (125)


(1,081)


219 2


221


(148) (787) (273)


(1,208)


3,270 (196)


3,074


(222) 1


106 (115) 2,959


2,745 82


2,827 928 (6)


(463) 459


3,286


Reconciliation of Effective Tax Rate The weighted average hybrid rate of UK and French tax is 22.2% (2016: 21.8%). The tax assessed for the period is lower (2016: lower) than the hybrid rate of UK and French tax. The UK corporation tax rate for the period is 20% reducing to 19% from 1 April 2017 (2016: 20%). The differences are explained below:


2017 £000


Profit before taxation before losses from equity accounted investees


Tax using the UK corporation tax rate of 19.76% (2016: 20.00%) Overseas profits charged at different taxation rate Non-deductible expenses Temporary differences


Restatement of opening net deferred tax due to rate change and differences in rates R&D uplift current year


Adjustments to tax charge in respect of prior periods


Tax expense (excluding prior year disallowable impairment) Tax rate for the period (excluding prior year disallowable impairment) Disallowable intangible impairment Total tax expense


13,038


2,577 344 160 -


68


(100) (90)


2,959 21.4% -


2,959


2016 £000


11,804


2,361 207 99 7


275


(140) (381)


2,428 20.6% 858


3,286


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