----------- -----------
Amortisation and impairment
At the beginning
of the year 6,933,057 6,933,057
Impairment charge for
the year - -
----------- -----------
At the end
of the year 6,933,057 6,933,057
----------- -----------
Net book value 8,007,417 8,007,417
=========== ===========
The Group performs an annual goodwill impairment review in
accordance with IAS 36 'Impairment of Assets' based on its cash
generating units (CGUs). The CGU that has associated goodwill
allocated to it is the Group as a whole. This is the smallest
identifiable group of assets that generate cash inflows to which
goodwill is allocated. Although the interior design business is a
separate CGU goodwill was not specifically allocated to it when the
goodwill arose because it was treated as an integrated business
when the Group was originally restructured. The Directors consider
that it is now not appropriate to allocate goodwill to this
CGU.
Recoverable amount
In accordance with IAS 36 the recoverable amount of the cash
generating unit is calculated, being the higher of value in use and
fair value less costs to sell.
The fair value less costs to sell of the CGU is determined using
cash flow projections derived from the business plan covering a
five year period which has been approved by the Board. They reflect
the Directors' expectations of the level and timing of revenue,
expenses, working capital and operating cash flows, based on past
experience and future expectations of business performance
particularly future development projects.
Discount rates
The pre-tax discount rate applied to the cash flow projections
are derived from the Group's weighted average cost of capital. The
discount rate applied is 6% (2013: 6%) reflecting the future
expected cost of capital for the Group.
Growth rates
Due to the nature of the Group's development business growth
rates are not relevant. The cash flow projections assume a 100%
probability of winning a level of development projects over the
five years and make assumptions on the probability of achieving
certain development performance fee criteria.
The business growth rates have been assumed to be nil (2013:
nil) for the Intarya interior design business.
Sensitivity analysis
The following point changes in assumptions would cause the
recoverable amount to fall below the current carrying value:
-- A 41.3% increase in the discount rate to 47.3% for the latter
five year period
-- A 25.6% decrease in the development revenue cash flows over
the five year period
-- A 43.4% decrease in the other interior design revenue cash
flows over the five year period
Property, plant and
14. equipment
Fittings
Group Leasehold and Office Computer
Improvements Equipment Equipment Total
Cost GBP GBP GBP GBP
At 1(st) March
2012 1,115,434 70,672 381,769 1,567,875
Additions - - 6,700 6,700
Disposals - - (180,000) (180,000)
-------------
At 28(th) February
2013 1,115,434 70,672 208,469 1,394,575
============= ===================== ========== ==========
Additions - 2,754 48,937 51,691
At 28(th) February
2014 1,115,434 73,426 257,406 1,446,266
============= ===================== ========== ==========
Depreciation
At 1(st) March
2012 123,072 31,739 350,466 505,277
Charge for
the year 113,605 13,904 22,560 150,069
Disposals - - (180,000) (180,000)
At 28(th) February
2013 236,677 45,643 193,026 475,346
============= ===================== ========== ==========
Charge for
the year 113,604 10,544 24,033 148,181
At 28(th) February
2014 350,281 56,187 217,059 623,527
============= ===================== ========== ==========
Net book value
At 28(th) February
2014 765,153 17,239 40,347 822,739
============= ===================== ========== ==========
At 28(th) February
2013 878,757 25,029 15,443 919,229
============= ===================== ========== ==========
At 28(th) February
2012 992,362 38,933 31,303 1,062,598
============= ===================== ========== ==========
Fittings
Company Leasehold and Office Computer
Improvements Equipment Equipment Total
Cost GBP GBP GBP GBP
At 1(st) March
2012 1,173,914 - 180,000 1,353,914
Disposals - - (180,000) (180,000)
At 28(th) February
2013 1,173,914 - - 1,173,914
============= =========== ========== ==========
Additions - - - -
At 28(th) February
2014 1,173,914 - - 1,173,914
============= =========== ========== ==========
Depreciation
At 1(st) March
2012 123,072 - 175,000 298,072
Charge for
the year 113,605 - 5,000 118,605
Disposals - - (180,000) (180,000)
-------------
At 28(th) February
2013 236,677 - - 236,677
============= =========== ========== ==========
Charge for
the year 113,604 - - 113,604
At 28(th) February
2013 350,281 - - 350,281
============= =========== ========== ==========
Net book value
At 28(th) February
2014 823,633 - - 823,633
============= =========== ========== ==========
At 28(th) February
2013 937,237 - - 937,237
============= =========== ========== ==========
At 28(th) February
2012 1,050,842 - 5,000 1,055,842
============= =========== ========== ==========
There were no assets held under finance lease or hire purchase
contracts.
15. Investments
Available for sale financial
(a) assets
Group 2014 2014 2013 2013
GBP GBP GBP GBP
At 1(st) March 22,148,579 40,810,580
Increase in The Lancasters
Development fair value - 7,895,058
Dividend received (15,000,000) (26,557,059)
Derecognition (7,148,575) -
Increase in 1 Palace Street
and 33 Thurloe Square fair
value 8,824,655 -
------------- -------------
Net movement transferred from comprehensive
income (13,323,920) (18,662,001)
------------- -------------
At 28(th) February 8,824,659 22,148,579
============= =============
Net book value
At 28(th) February 8,824,659 22,148,579
============= =============
The decrease in available for sale financial assets represents
GBP15.0m (2013: GBP26.5m) dividends received from The Lancasters
Development and derecognition of the available for sale financial
assets following the acquisition of Lancaster Gate (Hyde Park)
Limited on 16(th) December 2013.
The Company is committed to invest GBP10m into the 1 Palace Street
development. At 28(th) February 2014 the Company had paid GBP8,824,640
of this commitment.
The GBP15 investment in 33 Thurloe Square represents a 15% equity
stake. At 28(th) February 2014 the Company had paid costs of GBP1,459,774
which have been treated as a shareholder loan and included within
Northacre (LSE:NTA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Northacre (LSE:NTA)
Historical Stock Chart
From Jul 2023 to Jul 2024