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Notes to the Consolidated Financial Statements
For the year to 28 February 2011, continued
59
Financial Statements
C
osts due to Extreme Weather
Costs due to extreme weather includes incremental vehicle damages and
running costs caused by weather that results in a substantial part of our
fleet being adversely affected for a prolonged period. Incremental costs
include vehicle damages, drivers working unproductively and fuel
inefficiency costs. The current year exceptional costs were caused by the
extreme weather in November and December 2010 in the busy run up
to Christmas.
New Territory Business Set Up Costs
New territory business set up costs comprise costs of investing in new
major territories to commence or accelerate development of our business
presence. These costs include establishment costs, legal and professional
fees, losses and certain staff costs. The current year exceptional costs
were in relation to the development of businesses in Ireland and in Spain.
Transaction Costs Written Off
Transaction costs comprise costs of making investments or costs of
financing transactions that are not permitted to be debited to the cost
of investment or as issue costs. These costs include costs on any aborted
transactions.
Restructuring Costs
Restructuring costs comprise costs of major integration plans and other
business reorganisation and restructuring undertaken by management.
Costs include cost rationalisation, brand harmonisation, site closure costs,
certain short term duplicated costs, directly related management time,
asset write downs and other costs related to the reorganisation and
integration of acquired and new businesses. These are principally
expected to be one-off in nature.
2011
2010
£’000
£’000
Reorganisation and integration
of James Irlam business
-
1,288
Reorganisation and integration
of Chilled business
319
1,090
Reorganisation and integration of
the International business
-
177
Other
160
191
479
2,746
Net Profit on Disposal of Widnes Assets (after costs)
In the year ended 28 February 2010, profit on disposal of property, plant and
equipment includes a net profit on disposal of the chilled distribution site and
terminal at Widnes of £8,258,000 as set out below:
2011
2010
£’000
£’000
Profit on disposal of Widnes assets
(after direct costs but before directly associated costs)
-
11,190
Share based payment directly associated with the disposal -
(1,758)
Other costs directly associated with the disposal
-
(1,174)
Net Profit on disposal of Widnes assets (after costs) -
8,258
4. Staff Costs
Notes
2011
2010
£’000
£’000
Staff costs (including Directors) comprise:
Wages and salaries
150,936 135,890
Social security costs
13,824
12,330
Other pension costs
2,363
2,046
Share based payment
23
467
2,513
167,590 152,779
Average number of persons employed
by the Group (including Directors)
during the period
5,457
4,919
Directors’ Remuneration
2011
2010
£’000
£’000
Directors’ emoluments
659
785
Number of Directors accruing benefits
under defined contribution pension schemes
2
4
Further details of the Directors’ remuneration are set out in the Directors’
Remuneration Report.
5. Segmental Information
The operating segments within continuing operations are Eddie Stobart, Stobart
Rail, Stobart Ports, Stobart Air including Air Freight, and Stobart Properties.
The Eddie Stobart segment specialises in haulage, distribution, warehousing,
property and process management services and merchandising.
The Stobart Rail segment specialises in infrastructure engineering and rail
freight services.
The Stobart Ports segment specialises in inland port and waterport services,
warehousing and distribution.
The Stobart Air segment specialises in operation of commercial airports including
air freight.
The Stobart Properties segment specialises in the rental of investment properties.
The Board of Directors is regarded as the Chief Operating Decision Maker
(CODM). The Board monitors the results of its operating segments
separately for the purposes of making decisions about resource allocation
and performance assessment. Segment performance is evaluated based
on profit or loss, which in certain respects, as explained in the table
below, is measured differently from profit or loss in the consolidated
Financial Statements. The main segmental profit measures are earnings
before interest, tax, depreciation and amortisation and also profit before
tax both shown before separately disclosed items.
During the year, certain property related assets have been reclassified in to
continuing operations and accordingly the prior year segmental information
is restated. These assets are included in the Stobart Properties segment.
Income taxes, and certain central costs are managed on a Group basis and
are not allocated to operating segments.
Transfer prices between operating segments are on an arm’s length basis
in a manner similar to transactions with third parties.