Notes forming part of the financial statements
17. PROVISIONS
Onerous lease | Dilapidation | Other | Total | Total | |
|---|---|---|---|---|---|
2020 | 2020 | 2020 | 2020 | 2019 | |
€m | €m | €m | €m | €m | |
At 28 February 2019 | 10.3 | 3.8 | 1.6 | 15.7 | 11.4 |
Adjustment on initial application of IFRS 16 | (8.5) | - | - | (8.5) | - |
At 1 March 2019 (adjusted) | 1.8 | 3.8 | 1.6 | 7.2 | 11.4 |
Translation adjustment | - | 0.1 | - | 0.1 | 0.3 |
Arising on acquisition | - | - | - | - | 5.9 |
Reclass | (1.8) | 1.8 | - | - | - |
Charged during the year | - | 0.1 | 3.2 | 3.3 | 0.4 |
Unwind of discount on provisions | - | - | - | - | 0.3 |
Utilised during the year | - | (0.3) | (1.1) | (1.4) | (2.6) |
At end of year | - | 5.5 | 3.7 | 9.2 | 15.7 |
Classified within: | |||||
Current liabilities | 4.1 | 4.6 | |||
Non-current liabilities | 5.1 | 11.1 | |||
9.2 | 15.7 |
Onerous leases
On initial application of IFRS 16 Leases in the current financial year, the Group reclassified its onerous lease provision and it is now presented as an impairment of the Group’s right-of-use assets which were capitalised on application.
Dilapidation
The Group has a dilapidation provision of €5.5m at 29 February 2020 (2019: €3.8m). During the current financial year, it was determined that a dilapidation provision which had previously been included within the onerous lease provision was more appropriately classified as a dilapidation provision and it was therefore reclassified as such. The Group’s dilapidation provision at 29 February 2020 is with respect to dilapidation costs for leased depots of €5.2m (2019: €3.5m) and leased fleet of €0.3m (2019: €0.3m).
Other
Other provisions relate to various legal claims, a provision for an onerous trade contract and a provision for the Group’s exposure to employee and third party insurance claims.
As a consequence of COVID-19 an exceptional provision of €1.6m was charged with regard to an onerous trade contract. Under the terms of employer and public liability insurance policies, the Group bears a portion of the cost of each claim up to the specified excess. The provision is calculated based on the expected portion of settlement costs to be borne by the Group in respect of specific claims arising before the Balance Sheet date.