Strategic Report
Corporate Governance
Financial Statements Notes to the Consolidated Financial Statements/Continued
Finsbury Food Group Annual Report and Accounts 2020
75
3. Administrative Expenses and Auditors’ Remuneration Included in profit are the following:
2020 £000
Amortisation of intangibles
Depreciation of owned tangible assets Depreciation on right of use assets
Depreciation on assets under finance leases and hire purchase contracts Impairment of fixed assets Impairment of goodwill Loss on foreign exchange Variable lease payments
Expenses relating to short-term and low-value leases Hire of plant and machinery – operating leases Hire of other assets – operating leases
Movement on fair value of foreign exchange contracts Research and development Share option charges
1,734 7,656 1,919 -
1,237 7,500 213 193 164 - -
73
2,244 145
2019 £000
1,328 7,072
-
294 -
-
166 - -
765 806 178
1,987 697
Depreciation recognised on right of use assets in the year in relation to leases previously recognised as operating leases under IAS 17 upon adoption of IFRS 16 is £1,734,000. The remainder of the deprecation on right of use assets relates to assets previously treated as finance leases under IAS 17.
Auditors’ remuneration:
2020 £000
Audit of these Financial Statements
Audit of the Financial Statements of subsidiaries of the Company Other services
Other services relate to assistance with non-UK VAT registrations.
4. Significant Non-recurring Items The Group presents certain items as significant and non-recurring. These relate to items which, in management’s judgement, need to be disclosed by virtue of their size or incidence in order to obtain a more meaningful understanding of the financial information. They reflect costs that will not be repeated and therefore do not reflect ongoing trading of business which is most meaningful to users.
Included within significant non-recurring items shown in the table on page 36 of the Financial Review section are the following costs:
2020 £000
Commissioning costs
Impairment of goodwill (Refer to Note 10) Impairment of fixed assets (Refer to Note 12) Other reorganisation people costs
Site closures – property, leases and contract costs Acquisition related costs
257
7,500 1,237 1,337 - -
10,331
2019 £000
- - -
823
(152) 529
1,200
Commissioning costs relate to the associated commissioning costs of a new bakery in Poland and have been classed as significant non-recurring due to their nature. Reorganisation costs relate to the strategic reorganisation of the Group following the varying degrees of the impact of the pandemic on the businesses within the Group.
There has been an impairment of the goodwill relating to the Ultrapharm acquisition, which based on current performance was deemed to be overvalued, note 10 provides further detail.
There has been a fixed asset impairment of assets held at the Cardiff site; this reflects the specific writing down of an asset where there were no firm plans to utilise the asset given the outlook of no sales and a market recovering from a global pandemic.
50
118 20
2019 £000
60
133 -
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