41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 231
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
229
OTHER INFORMATION
5.4 Trade and other payables
Accounting policies
Trade payables are initially recognised at the value of the invoice received from a supplier (fair value) and subsequently
at amortised cost. The carrying value of trade payables is considered approximate to fair value.
Trade and other payables due within one year can be analysed as follows:
Group
Trade payables
Retentions on construction contracts for properties
Amounts due to Group undertakings
Other payables and accrued expenses
Deferred income
Trade and other payables
Company
2022
£m
2021
£m
2022
£m
2021
£m
33.2
35.3
–
–
5.4
4.2
–
–
–
–
70.3
38.0
84.9
96.6
9.5
6.4
68.0
64.6
–
–
191.5
200.7
79.8
44.4
Deferred income relates to rental income that has been collected in advance of it being recognised as income.
Included within accrued expenses is £nil of capital commitments, relating to investment properties under development
(2021: £nil million).
5.5 Provisions
Accounting policies
Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that the
Group will be required to settle that obligation, and a reliable estimate can be made of the amount of that obligation.
Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation and are
discounted to present value where the effect is material.
During 2020, and in accordance with the Government’s Building Safety Advice of 20 January 2020, we undertook a
thorough review of the use of High-Pressure Laminate (HPL) cladding on our properties. We have identified 27 properties
with cladding that needs replacing across our estate, due to legal or contractual obligations. We are continuing to carry out
replacement works for properties with HPL cladding, with activity prioritised according to our risk assessments, starting
with those over 18 metres in height. The remaining cost of replacing the cladding is expected to be £113.3 million (Unite
Share: £59.2 million), of which £29.4 million is in respect of wholly owned properties. Whilst the overall timetable for these
works is uncertain, we anticipate this will be incurred over the next 12-24 months. The regulations continue to evolve in
this area and we will ensure that our buildings are safe for occupation and compliant with laws and regulations.
The Government’s Building Safety Bill, covering building standards, was passed in April and has introduced more stringent
fire safety regulations. We will ensure we remain aligned to fire safety regulations as they evolve and will continue to
make any required investment to ensure our buildings remain safe to occupy. We have provided for the costs of remedial
work where we have a legal obligation to do so. The amounts provided reflect the current best estimate of the extent and
future cost of the remedial works required and are based on known costs and quotations where possible, and reflect
the most likely outcome. However, these estimates may be updated as work progresses or if Government legislation and
regulation changes.
We have not recognised any assets in respect of future claims.
