annington annual rep 2019-web - Page 63



Financial statements | Notes to the financial statements
Notes to the financial statements
11. PLANT AND EQUIPMENT
ACCOUNTING POLICY
12. INVESTMENT IN JOINT VENTURES
ACCOUNTING POLICY
Plant and equipment are stated at cost less accumulated depreciation and any provision for impairment. Depreciation is charged
to the income statement on a straight-line basis over the estimated useful life, which is determined for each asset. The estimated
useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any
changes in estimate accounted for on a prospective basis.
The results, assets and liabilities of joint ventures are accounted
for using the equity method. Investments in joint ventures
are carried in the balance sheet at cost as adjusted for postacquisition changes in the Group’s share of the net assets of
the joint venture, less any impairment. Losses in a joint venture
in excess of the Group’s interest in that entity are recognised
only to the extent that the Group has incurred legal or
constructive obligations on behalf of the joint venture.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as the owned assets. However,
when there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over
the shorter of the lease term and their useful lives.
The following useful lives are applied:
Plant and equipment
Plant and equipment under finance lease
Finance lease liabilities are capitalised at the lease’s inception at the fair value of the leased property or, if lower, the present value
of the minimum lease payments. The Group has disclosed these within its minimum lease payments in Note 28.
2019
Total
2019
£’000
Cost
2018
Plant and
equipment
£’000
Total
2018
£’000
Cost
At 1 April
1,387
1,387
At 1 April
1,460
-
1,460
Additions
106
106
Additions
156
257
413
Disposals
(33)
(33)
Disposals
(5)
-
(5)
1,460
1,460
1,611
257
1,868
At 31 March
Accumulated depreciation
At 1 April
Depreciation charge
for the year
Disposals
At 31 March
49
(5)
1,287
9
9
1,243
58
(5)
1,296
Accumulated depreciation
Depreciation charge for the year
Disposals
At 31 March
324
248
572
1,245
1,245
31
31
(33)
(33)
1,243
1,243
Net book value
At 31 March
Net book value
At 31 March
At 31 March
At 1 April
1,243
The Group’s investment in joint ventures is presented in
aggregate in the table below:
The Group’s joint venture undertakings at 31 March 2019 are
shown below:
2-10 years
5 years
Plant and
equipment
Plant and under finance
equipment lease at cost
£’000
£’000
The Group’s rights and obligations with respect to The Inglis
Consortium LLP are set out in the Co operation agreement
and Limited Liability Partnership Deed dated 4 April 2011.
Under this agreement the Group benefits from an interest in
the partnership’s operations and profits set at 28.55%, but has
one third of the voting rights. All partnership decisions must be
formed by unanimous agreement.

217
217
Holding
Share of net
assets
£’000
Loans
£’000
Total
£’000
At 1 April 2017
12,584
12,700
25,284
Additions
13,920
-
13,920
Repayments
-
(7,775)
(7,775)
Distributions
(28,978)
-
(28,978)
Name of joint venture
Principal activity
Annington Wates
(Cove) Limited
Property development
Countryside Annington
(Colchester) Limited
Property development
50.00%
Countryside Annington
(Mill Hill) Limited
Property development
50.00%
Share of profit for
the year
15,053
-
15,053
The Inglis Consortium
LLP
Property development
28.55%
Impairment for the
year
(3,306)
-
(3,306)
At 31 March 2018
9,273
4,925
14,198
50.00%
Each of these entities operates within the United Kingdom.
Repayments
-
(3,925)
(3,925)
The Group has held these investments since the following
dates:
Distributions
(8,660)
-
(8,660)
Share of profit for
the year
1,120
-
1,120
Held through Annington Developments Limited as 100% interest
in “X” Ordinary shares:
Impairment reversal
for the year
3,306
-
3,306
22 July 2004
Annington Wates (Cove) Limited
At 31 March 2019
5,039
1,000
6,039
17 March 2005
Countryside Annington (Colchester) Limited
8 December 2006
Countryside Annington (Mill Hill) Limited
Each of the above entities has issued 500 “X” Ordinary and
500 “Y” Ordinary shares. The rights of the holders of the “X”
Ordinary shares and “Y” Ordinary shares are identical and rank
in pari passu.
The Group’s share of profits from joint ventures represents
profits from continued operations. There are no discontinued
operations within the joint ventures. The joint ventures have
not recorded any other comprehensive income and the share
of profits disclosed in the above table also represents the
Group’s share of total comprehensive income.
Held through Annington Property Limited:
4 April 2011
62 | Annington Limited Annual Report & Accounts 2019
The Inglis Consortium LLP
Annington Limited Annual Report & Accounts 2019 | 63

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