Notes to the Financial Statements

For the short period 1 April 2006 to 3 March 2007

17. PROPERTY, PLANT AND EQUIPMENT

      Leasehold properties        
  Freehold
properties
£m
  Long
leasehold
£m
  Short
leasehold
£m
  Plant &
equipment
£m
  Total
£m
Cost                  
At 1 April 2006 81.6   5.1   323.2   976.8   1,386.7
Exchange differences     (0.1)   (0.7)   (0.8)
Additions 10.0     17.9   106.2   134.1
Disposals     (5.3)   (27.3)   (32.6)
At 3 March 2007 91.6   5.1   335.7   1,055.0   1,487.4
Depreciation and impairment losses                  
At 1 April 2006 (8.0)     (166.0)   (515.9)   (689.9)
Exchange differences       0.3   0.3
Charge for the year (1.1)   (0.7)   (17.9)   (110.3)   (130.0)
Impairment losses     (1.0)   (3.1)   (4.1)
Disposals     4.1   23.8   27.9
At 3 March 2007 (9.1)   (0.7)   (180.8)   (605.2)   (795.8)
Net book value at 3 March 2007 82.5   4.4   154.9   449.8   691.6
Assets in the course of construction included above at                
3 March 2007 9.4     10.6   39.0   59.0

IFRS requires individual stores to be designated as cash generating units for the purposes of testing for impairment. This resulted in an impairment charge of £4.1m in respect of the Homebase store portfolio in the period ended 3 March 2007.

      Leasehold properties        
  Freehold
properties
£m
  Long
leasehold
£m
  Short
leasehold
£m
  Plant &
equipment
£m
  Total
£m
Cost                  
At 1 April 2005 55.0   2.0   288.2   858.8   1,204.0
Exchange differences   0.1       0.1
Additions 28.6   3.0   39.0   161.0   231.6
Disposals (2.0)     (4.0)   (43.0)   (49.0)
At 31 March 2006 81.6   5.1   323.2   976.8   1,386.7
Depreciation and impairment losses                  
At 1 April 2005 (8.0)     (154.1)   (442.0)   (604.1)
Charge for the year (1.0)     (14.0)   (103.0)   (118.0)
Impairment losses     (0.9)   (11.9)   (12.8)
Disposals 1.0     3.0   41.0   45.0
At 31 March 2006 (8.0)     (166.0)   (515.9)   (689.9)
Net book value at 31 March 2006 73.6   5.1   157.2   460.9   696.8

IFRS requires individual stores to be designated as cash generating units for the purposes of testing for impairment. This resulted in an impairment charge of £12.8m in respect of the Homebase store portfolio in the year ended 31 March 2006.

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