Notes to the financial statements
23 Provisions
|
Onerous contracts £m |
||
|---|---|---|
|
At 31 March 2012 – current |
2.3 |
|
|
Utilised |
(0.8) |
|
|
Discount unwind |
0.2 |
|
|
At 31 March 2013 – current |
1.7 |
|
|
Utilised |
(0.2) |
|
|
Discount unwind |
0.2 |
|
|
At 31 March 2014 – current |
1.7 |
Onerous contract
In June 2010, the Group disposed of 50% of the share capital of Wexford Creamery Limited (‘WCL’). As part of the disposal, the Group entered into an agreement to purchase guaranteed minimum volumes of cheese from WCL for a period of five years from the date of disposal. The price paid by the Group for that cheese is determined by reference to cost plus margin. Realisations for commodity cheese fluctuate and at the date of disposal a provision of £3.6 million was charged in order to provide for the cost of the cheese purchase arrangements. At 31 March 2014 the provision amounted to £1.7 million (2013: £1.7 million).