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Notes to the Consolidated Financial Statements
For the year to 28 February 2011, continued
61
Financial Statements
Geographical Information
Revenue from Non-current
external customers
assets
2011
2011
£’000
£’000
United Kingdom
460,586
501,246
Ireland
25,215
512
Europe
14,594
3
500,395
501,761
Comparative information is not available. This information will be
stated in future periods.
The revenue from one customer amounts to more than 10% of the
Group’s total revenue. The revenue from that customer was £143.0m
for the year to 28 February 2011 (2010: £116.7m) and this was reported
in the Eddie Stobart segment and the Stobart Ports segment.
Analysis of revenue
Revenue recognised in the income statement is analysed as follows:
2011
2010
£’000
£’000
Rendering of services – Continuing operations
500,395 447,661
Finance revenue
924
928
501,319 448,589
6. Finance Income
2011
2010
£’000
£’000
Bank interest receivable
924
928
Total finance income
924
928
7. Finance Costs
2011
2010
£’000
£’000
Bank loans, loan notes and overdraft
3,863
2,822
Distributions on income shares
105
422
Amortisation of income shares issue costs
15
29
Finance charges payable under finance
leases and hire purchase contracts
1,570
3,377
Total finance costs
5,553
6,650
During the year £2,768,000 (2010: £659,000) of interest was capitalised.
8. Taxation
Tax charged in the income statement
Restated
2011
2010
£’000
£’000
Current income tax:
UK Corporation tax
- Continuing operations
1,683
6,197
Overseas tax
138
-
Adjustment in respect of prior years
(1,423)
103
Total current tax
398
6,300
Deferred tax:
Origination and reversal of temporary differences
7,155
1,198
Impact of change in rate
(1,351)
-
Adjustment in respect of prior years
27
(2,396)
Total deferred tax
5,831
(1,198)
Total charge in the income statement
6,229
5,102
Reconciliation of income taxation charge
A reconciliation of the income tax charge applicable to the results fromordinary
activities at the statutory income tax rate to income tax expense at the Group’s
effective income tax rate for the year is as follows:
Restated
2011
2010
£’000
£’000
Net profit before taxation
29,467
33,293
UK income tax at rate of 28% (2010: 28%)
8,251
9,322
Effects of:
Tax impact of disposal of land and
buildings in the year
-
(488)
Impact of abolition of
Industrial Buildings Allowances
-
(847))
Income not taxable including interest receivable
and share of profits of associates and joint ventures (22)
-
Profit on disposal of non qualifying assets
(46)
-
Difference in overseas tax rate
(171)
-
Impact of change in tax rate
(1,351)
-
Land remediation relief
-
(1,527)
Expenses incurred not relievable
against current tax
1,830
960
Adjustments in respect of prior years
(1,396)
(2,262)
Losses brought forward utilised in
current period
(866)
(56)
6,229
5,102
Included in the statement of other comprehensive income is a debit of £30,000
(2010: £450,000 credit) in relation to a cash flow hedge instrument.
Factors that may affect the future tax charge
The deferred tax balances reflected in Note 24 have been calculated at
27% as this was the rate that was substantively enacted at the balance
sheet date. Following provisions announced in the budget on 23 March
2011, the main rate of corporation tax reduces to 26% with effect from
1 April 2011. Although there is no requirement to adjust the deferred
tax balances above the impact of the additional rate change this would
reduce the deferred tax liability by approximately £1,480,000.
The Chancellor of the Exchequer has announced plans to reduce the
corporate tax rate by 1% per annum in the future ultimately reducing to
a rate of 23% by 1 April 2014. These changes are not enacted in
legislation. As shown above a 1% reduction in the rate would reduce
deferred tax balances by approximately £1.5m per annum based on the
current balance.
9. Earnings Per Share
Basic earnings per share amounts are calculated by dividing net profit for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary 10p shares outstanding during the period.