Notes to the Group Financial Statements (continued)
for the year ended 31st December 2012
22. Provisions for liabilities
2012 2011
Professional Professional
indemnity onerous indemnity Onerous
claim provision leases total claim provision leases Total
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1st January 9,641 417 10,058 10,901 992 11,893
Amount utilised (6,682) (255) (6,937) (4,031) (243) (4,274)
Amount released – – (334) (334)
Unwinding of discount 508 – 508 266 – 266
Provided in financial year (including exceptional costs) 20,696 875 21,571 2,505 2 2,507
Balance at 31st December 24,163 1,037 25,200 9,641 417 10,058
current 1,770 535 2,305 512 194 706
non-current 22,393 502 22,895 9,129 223 9,352
24,163 1,037 25,200 9,641 417 10,058
The PI claim provision relates to ongoing and expected future legal claims relating to valuation services and is the Directors’ best estimate of the likely
outcome of such claims, taking account of the incidence of claims and the size of the loss that may be borne by the claimant after taking account of
actions that can be taken to mitigate losses. The provision will be utilised as individual claims are settled and the settlement amount may vary from
the amount provided depending on the outcome of each claim. It is not possible to estimate the timing of payment of all claims and therefore most
of the provision has been classified as non-current. See also the explanation in note 7.
The provision for lease obligations relates to obligations under leases on vacant properties. The provision is expected to be fully utilised by June
2020. The final outcome depends upon the ability of the Group to sublet or assign the lease over the related properties.
23. obligations under leases
operating leases
The Group had annual commitments in respect of non-cancellable operating leases for which no provision has been made in these Financial
Statements (other than the onerous lease provision as disclosed in note 22). Future minimum rentals payable under these operating leases are as
follows:
2012 2011
Land Plant Land Plant
and and and and
building machinery total building machinery Total
£’000 £’000 £’000 £’000 £’000 £’000
No later than one year 8,109 2,751 10,860 8,814 2,099 10,913
After one year but not more than five years 20,839 2,799 23,638 20,078 2,147 22,225
After five years 12,727 – 12,727 8,931 – 8,931
41,675 5,550 47,225 37,823 4,246 42,069
The Group had annual commited revenue in respect of non-cancellable operating leases for which no accrual has been made in these Financial
Statements. Future minimum rentals receivable under non-cancellable operating leases are as follows:
2012 2011
Land Land
and and
buildings buildings
£’000 £’000
Not later than one year 707 946
After one year but not more than five years 1,497 1,002
After five years 436 445
2,640 2,393
92 ANNUAL REPORT AND ACCOUNTS 2012