Page 79 - Paragon Annual Report 2

Notes to the consolidated financial statements (continued)
6 Finance income
Interest on bank deposits 12 Net interest income on pension scheme assets and liabilities (note 24) 17 Interest on loan to related party 31 Other interest income 77
137
7 Finance cost
Bank loans and overdrafts 2,386 Finance charge on leased assets 444 Movement in fair value of forward exchange contract 168 Notional interest on long term receivable and deferred consideration 246 Bond interest – Foreign exchange losses on retranslation of intercompany loan balances – Amortisation of capitalised bond issue costs –
3,244
8 Exceptional items impacting EBITDA
Exceptional items are those which in the opinion of the Directors are exceptional due to their nature, size or incidence. Whilst costs of this nature can reoccur, they have been highlighted to provide a better understanding of the underlying performance of this trading group. Such items include the costs of restructuring parts of the Group’s businesses, which involves redundancies of staff and fixed assets.
| 75
2017
21
14
116
2016
€000
33
€000
184
2017
€000
2,104
333
1,111
1,067
–
48
65
2016
€000
4,728
Exceptional (credits)/charges that arose in the year are as follows:
Redundancy and restructuring costs (a)
Insurance receivable provisions arising on warranty reclaim Acquisition related fees (b)
Other (e)
Gain on acquisition (c) (note 11)
Release of exceptional provisions no longer required (d)
Exceptional net (credit)/charge impacting EBITDA
5,635 – 23 107
(662) (938)
4,165
2017
€000
7,822
352
579
325
(12,107)
–
2016
€000
(3,029)
(a) Redundancy and restructuring costs arise from the closure of locations and the reduction of staff resources at various locations post-acquisition. Costs also include the assistance the Group receives externally for the management of restructuring and integration programs, including tax and legal advisors. These costs of restructuring also include the winding down a business in accordance with a Board approved restructuring plan which will take several years to fully implement.
(b) These represent legal and professional fees relating to acquisitions.
(c) Gains on acquisition arise on two bargain purchases as defined by IFRS 3.
(d) This represents the release of provisions that are no longer required. It includes the reversal of provisions for legal and other claims in the amount of €706,000 that were no longer required. Also included is the release of a Scandinavian VAT provision in the sum of €232,000 that was no longer required.
(e) Amounts included in other exceptional items are a one-off customer claim of €170,000 and non-recurring European technological start-up costs of €155,000.
Paragon Group Limited – 05258175