• Independent auditor’s report
• Consolidated income statement
• Consolidated statement of comprehensive income
• Consolidated and Parent Company balance sheets
• Consolidated statement of changes in equity
• Parent Company statement of changes in equity
• Consolidated and Parent Company statement of cash flows
• Accounting policies
• Notes to the financial statements
• Group financial history
• Shareholders’ information

Notes to the financial statements

10 Property, plant and equipment

Consolidated 2014		Land and buildings £m		Vehicles, plant and equipment £m		Assets in the course of construction £m		Total £m
Cost
At 1 April 2013		183.4		306.5		23.6		513.5
Additions		1.6		6.3		54.9		62.8
Disposals		(12.3)		(28.0)		(5.2)		(45.5)
Transfers and reclassifications		1.3		2.5		(3.8)		–
At 31 March 2014		174.0		287.3		69.5		530.8
Accumulated depreciation
At 1 April 2013		64.4		178.8		–		243.2
Charge for the year		5.6		23.0		–		28.6
Asset impairments		0.1		1.7		–		1.8
Disposals		(6.4)		(25.0)		–		(31.4)
At 31 March 2014		63.7		178.5		–		242.2
Net book amount at 31 March 2014		110.3		108.8		69.5		288.6
Consolidated 2013
Cost
At 1 April 2012		192.6		303.0		29.0		524.6
Additions		3.5		18.0		21.3		42.8
Acquisition of businesses		–		0.5		–		0.5
Disposals		(4.2)		(22.8)		(0.5)		(27.5)
Disposal of St Hubert		(8.7)		(15.7)		(1.2)		(25.6)
Transfers and reclassifications		0.6		24.3		(24.9)		–
Exchange		(0.4)		(0.8)		(0.1)		(1.3)
At 31 March 2013		183.4		306.5		23.6		513.5
Accumulated depreciation
At 1 April 2012		64.8		176.9		–		241.7
Charge for the year		5.9		23.1		–		29.0
Asset impairments		1.4		12.3		–		13.7
Disposals		(2.3)		(22.8)		–		(25.1)
Disposal of St Hubert		(5.2)		(10.1)		–		(15.3)
Exchange		(0.2)		(0.6)		–		(0.8)
At 31 March 2013		64.4		178.8		–		243.2
Net book amount at 31 March 2013		119.0		127.7		23.6		270.3

Depreciation of property, plant and equipment relating to the discontinued St Hubert business, included in the table above was nil in the year ended 31 March 2014 (2013: £0.8 million)

2013/14

The carrying value of property, plant and equipment within each cash generating unit (‘CGU’) is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. With regard to the Dairies CGU, goodwill was fully impaired in 2011/12 however given the low margins in this business and large movements in milk input costs during 2013/14, the carrying value of property, plant and equipment within this CGU has been reviewed along with its value in use. The impairment methodology and key inputs for all CGUs are as set out in Note 11. For the Dairies CGU, the discount rate applied to the value in use calculation was 9.3% (2013: 8.7%) and cashflows are forecast to year five with nil growth assumed thereafter. The key input assumptions in performing the impairment test were the profits expected from property sales, the allocation of corporate costs and the projected profit growth to 3%. The impairment review has not indicated any required write down of the carrying value of property, plant and equipment in the year ended 31 March 2014. However, the headroom was low and therefore sensitive to the discount rate used for each of the key input assumptions in deriving the projected cash flows.In March 2014, the Group announced a strategic review of the FoodTec UK Ltd ingredients subsidiary. The carrying value of £1.1 million working capital and £0.3 million property, plant and equipment has been fully impaired in the year ended 31 March 2014 (see Note 4).

Following the closure of the Proper Welsh Milk dairy in January 2014, the carrying value of property, plant and equipment of £0.5 million has been written down in full (see Note 4).

As a result of plans to consolidate spreads production into a single UK location, the carrying value of some property, plant and equipment of £1.0 million has been written down in the year ended 31 March 2014 (see Note 4).

2012/13

Following the decision in 2011 to transfer all Clover manufacture from Crudgington, Shropshire to Kirkby, Liverpool, in September 2012 the Group announced plans to consolidate all spreads production into a single UK location at its site in Kirkby. Subject to consultation, this decision will result in the closure of the site at Crudgington in 2014. As a result of this decision £11.4 million of plant and equipment at the sites has been impaired to nil net book value (representing management’s best estimate of resale value net of costs of sale). In addition, the land and buildings at Crudgington were impaired by £0.9 million (see Note 4).

The culmination of the centralisation of administrative activity in the Dairies depot network along with the closures of milk processing sites at Fenstanton, Cambridgeshire and Aintree, Liverpool resulted in impairments of £0.5 million to land and buildings and £0.9 million to plant and equipment (see Note 4).

Capitalised leases included in vehicles, plant and equipment comprise:		2014 £m		2013 £m
Cost		31.7		32.1
Accumulated depreciation		(24.0)		(22.9)
Net book amount		7.7		9.2