133
FINANCIAL STATEMENTS
14 PROPERTY, PLANT AND EQUIPMENT
Freehold land and buildings £m
Right-of-use assets £m
Furniture and fittings £m
Computer equipment £m
Total £m
Year ended 31 December 2019
Cost or valuation At 1 January 2019
17.9
6.8
5.7
–
30.4
–
–
–
9.6 9.6 5.7
9.6
Recognition of right-of-use assets on initial application of IFRS 16
17.9
6.8 0.9
5.7 0.5
40.0
Adjusted balance at 1 January 2019
– –
7.1
Acquired during the year
–
–
(3.4)
(3.4)
Disposal cost
At 31 December 2019
17.9
7.7
6.2
11.9
43.7
Depreciation and impairment At 1 January 2019
(0.1)
(5.6)
(3.3)
–
(9.0)
– –
– –
–
0.6
0.6
Disposal
(1.9) (0.5) (5.7)
(2.1) (2.8) (4.3)
(4.0) (4.5)
Impairment
(0.6) (0.7)
(0.6) (6.2)
Depreciation charge of the year
At 31 December 2019
(16.9)
Net book value at 31 December 2019 Net book value at 31 December 2018
17.2 17.8
1.5 1.2
0.5 2.4
7.6
26.8 21.4
–
Right-of-use assets £m
Furniture and fittings £m
Computer equipment £m
Freehold land and buildings £m
Total £m
Year ended 31 December 2018
Cost or valuation At 1 January 2018
16.6
6.0 0.8
5.7
– – – – – – – – – – –
28.3
Acquired during the year Disposed of during the year
–
– –
0.8 1.3
1.3
–
At 31 December 2018
17.9
6.8
5.7
30.4
Depreciation
At 1 January 2018
(0.7)
(5.1)
(2.9)
(8.7)
Eliminated on revaluation Charge for the year At 31 December 2018
1.1
–
–
1.1
(0.5) (0.1)
(0.5) (5.6)
(0.4) (3.3)
(1.4) (9.0)
Net book value at 31 December 2018 Net book value at 31 December 2017
17.8 15.9
1.2 0.9
2.4 2.8
21.4 19.6
Included in freehold land and buildings is land of value £4.4m (2018: £4.4m).
The Company’s freehold land and buildings are stated at their revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value measurements of the Company’s freehold land and buildings as at 15 November 2018 were performed by Hurst Warne & Partners Surveyors Ltd, independent valuers not related to the Company. Hurst Warne & Partners Surveyors Ltd is registered for regulation by the Royal Institution of Chartered Surveyors (“RICS”). The valuation was undertaken by a RICS registered valuer. The valuer has sufficient current local knowledge of the particular market, and the knowledge, skills and understanding to undertake the valuation competently. The fair value of the freehold land was undertaken using a residual valuation assuming a new build office on each site to an exact equivalent size as currently and disregarding the possibility of developing any alternative uses or possible enhancements. The fair value of the buildings was determined based on open market comparable evidence of market rent. The fair value measurement of revalued land and buildings has been categorised as Level 3 within the fair value hierarchy based on the non-observable inputs to the valuation technique used. Revaluations during 2018 comprise a loss of £2.9m recognised in profit or loss, a gain of £5.3m recognised in other comprehensive income (gross of tax of £0.9m), and the elimination of depreciation on the revaluations of £1.1m. Right-of-use assets are property assets leased by the Group (see note 25). Impairments arising in the year relate to onerous property leases resulting from the Group’s rationalisation of its office locations.
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