Page 236 - Sigmaroc Annual-Report 2023

SIGMAROC ANNUAL REPORT 2023 FINANCIAL REPORT
Notes to the financial statements
Reconciliation of liabilities arising from financing activities is as follows:
As at 1 January 2023
Increase/(decrease) through financing cash flows Increase from refinancing
Amortisation of finance arrangement fees Increase through obtaining control of subsidiaries Transfer between classes
Revaluation
Foreign exchange movement
As at 31 December 2023
25. PROVISIONS
As at 1 January
Acquired on business combination Addition/(Deduction)
The provision total is made up of £632,011 as a restoration provision for the St John’s and Les Vardes sites; £86,812 for the Aberdo site; £172,303 for quarries in Wales; £6.7 million for the Nordkalk sites; and £338,943 for the Johnston sites which are all based on the removal costs of the plant and machinery at the sites and restoration of the land. Cost estimates in Jersey and Guernsey are not increased on an annual basis – there is no legal or planning obligation to enhance the sites through restoration. The commitment is to restore the site to a safe environment; thus the provision is reviewed on an annual basis. The estimated expiry on the quarries ranges between 5 – 35 years.
Of the remaining amount, £242,000 is to cover the loss on the Holcim contract in GduH, £62,000 for legal fees, £1.69 million for other restructuring costs in the Nordkalk entities, £3.19 million is the provision for early retirement in Belgium, where salaried workers can qualify for early retirement based on age and £70,000 for early retirement in the Nordkalk entities. The provision for early retirement consists of the estimated amount that will be paid by the employer to the “early retired workers” till the age of the full pension. Refer to Note 26 for more information.
The future reclamation cost value is discounted by 8% (2022 8%) which is the weighted average cost of capital within the Group.
Consolidated
Long-term borrowings £’000
Short-term borrowings £’000
Lease liabilities £’000
Liabilities arising from financing activities £’000
208,959
26,500
27,017
-
(22,932)
(9,118)
-
549
-
4,515
(1,085)
-
-
135
836
(25,673)
25,673
-
(2,125)
-
784
-
4,673
(412)
180,076
30,709
27,511
Consolidated
262,476
(32,050) 5,064 (1,085) 971 - 4,673 (1,753) 238,296
10,175
631 (110) 10,696
26. RETIREMENT BENEFIT SCHEMES
31 December 2023 £’000
The Group sponsors various post-employment benefit plans. These include both defined contribution and defined benefit plans as defined by IAS 19 Employee Benefits.
Defined contribution plans
For defined contribution plans outside Belgium, the Group pays contributions to publicly or privately administered pension funds or insurance contracts. Once the contributions have been paid, the Group has no further payment obligation. The contributions are expensed in the year in which they are due. For the year ended, contributions paid into defined contribution plans amounted to £317,000.
Defined benefit plans
The Group has group insurance plans for some of its Belgian, Swedish and Polish employees funded through defined payments to insurance companies. The Belgian pension plans are by law subject to minimum guaranteed rates of return. In the past the minimum guaranteed rates were 3.25% on employer contributions and 3.75% on employee contributions. A law of December 2015 (enforced on 1 January 2016) modifies the minimum guaranteed rates of return applicable to the Group’s Belgian pension plans. For insured plans, the rates of 3.25% on employer contributions
10,697
1,546
31 December 2022 £’000
970
13,213