NOTES TO THE ACCOUNTS

Back to index


5 Exceptional items

Exceptional operating costs

Exceptional divisional restructuring and financial systems integration costs are items of one-off expenditure incurred in connection with the restructuring of certain trading segments within the group and the review of group-wide financial systems.

During the year the group received a refund of £7m from HMRC in respect of VAT on gaming machines which has been recognised as exceptional income. The decisions that resulted in this refund have been referred to the European Court of Justice and should HMRC be successful in their appeal the group would be required to repay the refund with interest, and as such this represents a contingent liability. An exceptional gain of £6.8m net of associated costs has been recognised.

The share-based payments credit results from the reversal of the previously recognised expense of share-based payment schemes which are no longer expected to meet their performance criteria.

The net profit on disposal of property, plant and equipment of £1.0m (2009: £3.7m) comprises a total profit on disposal of £5.0m (2009: £11.1m) and a total loss on disposal of £4.0m (2009: £7.4m).

Exceptional finance costs

During the year ended 2 May 2010 the group repurchased securitised debt with a nominal value of £30.3m recognising a net gain of £13.5m.

Following the receipt of the proceeds of the rights issue and the subsequent repurchase of securitised debt certain interest swaps were no longer deemed to be effective hedges.

An exceptional cost of £12.1m was recognised in the prior period in respect of the fair value of interest rate swaps no longer qualifying for hedge accounting at 3 May 2009. All ineffective swaps were cancelled during the period to 2 May 2010 resulting in an exceptional charge of £3.3m.

Exceptional tax

The tax (credit)/charge on indexation of properties represents the tax impact of movements in RPI during the period on the tax base cost of properties.

The Finance Act 2008 abolished allowances on industrial buildings and hotels on a phased basis which resulted in an exceptional deferred tax credit of £0.7m in the prior period.

Back to top