Note 24
24. Provisions
| |
Total
£m |
Restructuring
£m |
Warranty
£m |
Contingent
consideration
on acquisition
of subsidiaries
£m |
Other
£m |
| At 1 January 2006 |
3.9 |
0.2 |
1.0 |
2.7 |
- |
| Provisions utilised during the year |
(2.4) |
(0.8) |
(0.3) |
(1.0) |
(0.3) |
| Charged to the income statement |
3.2 |
1.5 |
0.5 |
- |
1.2 |
| Acquisition of subsidiary undertaking |
3.9 |
- |
- |
3.9 |
- |
| Currency translation adjustments |
(0.6) |
(0.1) |
(0.1) |
(0.4) |
- |
| At 31 December 2006 |
8.0 |
0.8 |
1.1 |
5.2 |
0.9 |
| Non-current |
3.0 |
- |
- |
3.0 |
- |
| Current |
5.0 |
0.8 |
1.1 |
2.2 |
0.9 |
| |
8.0 |
0.8 |
1.1 |
5.2 |
0.9 |
The contingent consideration on acquisition of subsidiaries of £5.2 million relates to the following acquisitions:
- Kata – As at 31 December 2005, management's estimate of the realistic actual payout was US$4.6 million (£2.7 million). In 2006 consideration of US$2.0 million (£1.0 million) was paid out. As at the end of 2006, the maximum remaining contingent consideration payable is US$7.1 million (£3.6 million) conditional upon its future sales and profitability in 2006 and 2007. Management's estimate at 31 December 2006 of a realistic actual payout is US$2.6 million (£1.3 million).
- Petrol – The maximum potential contingent consideration payable is US$3.4 million (£1.8 million), conditional upon the achievement of profitability targets in 2006. Management's estimate at 31 December 2006 of a realistic actual payout is US$3.1 million (£1.7 million).
- Autoscript – The maximum potential contingent consideration payable is £2.0 million, conditional on the achievement of profitability targets for 2007 and 2008. Management's estimate at 31 December 2006 of a realistic actual payout is £1.5 million.
- Tomcat – The maximum potential contingent consideration payable is US$7.0 million (£3.6 million), conditional on the achievement of profitability targets in 2007 to 2009. Management's estimate at 31 December 2006 of a realistic actual payout is US$1.4 million (£0.7 million).
The remaining provisions comprise warranty provisions of £1.1 million (2005: £1.0 million), other provision for the early termination of property lease of £0.9 million, and the provision for restructuring of £0.8 million (2005: £0.2 million). The warranty provision is calculated based on the sale of products under warranty and is consistent with previous years. The provision is expected to be utilised over the warranty period (up to five years). The restructuring and early termination of property lease provision will be utilised during 2007.
Information correct at 23/04/2007