Page 217 - Sigmaroc Annual-Report 2023

11. NON-UNDERLYING ITEMS
Consolidated
217
31 December 2023 £’000
31 December 2022 £’000
25,907
6,572
1,085
3,691
4,001
443
368
42,067
Acquisition related expenses
Amortisation and remeasurement of acquired assets Amortisation of finance costs
Restructuring expenses
Share option expense
Unwinding of discount on deferred consideration
Net other non-underlying expenses & gains
4,842 6,761 1,085 1,877 4,670
443
335
20,013
Under IFRS 3 – Business Combinations, acquisition costs have been expensed as incurred. Additionally, the Group incurred costs associated with obtaining debt financing, including advisory fees to restructure.
Acquisition related expenses include exclusivity, introducer, advisor, consulting, legal fees, accounting fees, insurance and other direct costs relating to acquisitions. During the year the Group acquired Juuan Dolomitik, Goijens, Retaining, Björka Mineral, ST Investicija, Beton and entered into agreements to acquire CRH’s European lime and industrial limestone assets which comprises the vast majority of the costs incurred during the year.
Amortisation and remeasurement of acquired assets are non-cash items which distort the underlying performance of the businesses acquired. Amortisation of acquired assets arise from certain fair value uplifts resulting from the PPA. Remeasurement of acquired assets arises from ensuring assets from acquisitions are depreciated in line with Group policy. These are net of the deferred tax liability unwind on the asset fair value uplift.
Restructuring expenses relate to the reorganisation and integration of recently acquired subsidiaries, including costs associated with site optimisation, transitional salary costs, redundancies, severance & recruitment fees, and costs associated with financial reporting and system migrations.
Share option expense is the fair value of the LTIP’s issued in 2021, refer to Note 29 more information.
Unwinding of discount on deferred consideration is a non-cash adjustment relating to deferred consideration arising on acquisitions.
Amortisation of finance costs is the amortisation of borrowing costs on the Syndicated Senior Credit Facility. These costs are amortised over a 5-year period.
Net other non-underlying expenses and gains include other advisory fees and other associated costs.
12. NET FINANCE INCOME/(EXPENSE)
Net interest expense
Dividends
Other finance expense
Unwinding of discount on deferred consideration
Consolidated
31 December 2023 £’000
31 December 2022 £’000
(14,759)
423
(1,085)
(443)
(15,864)
(9,557) 647 (1,085) (443) (10,438)