| Leases |
22. Leases
Group acting as a lessee
The Group has lease contracts for its offices,
customer collection centers, transporter motor vehicles and furniture and fittings. The Group’s obligations under its leases are
secured by the lessor’s title to the leased assets.
The carrying amounts and movement in the right-of-use
assets are set out below:
| |
|
Leasehold
property |
|
|
Fixtures
and
fittings |
|
|
Subscription
vehicles |
|
|
Other
motor
vehicles |
|
|
Total |
|
| |
|
£’000 |
|
|
£’000 |
|
|
£’000 |
|
|
£’000 |
|
|
£’000 |
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| At December 31, 2020 |
|
|
48,332 |
|
|
|
74 |
|
|
|
- |
|
|
|
8,247 |
|
|
|
56,653 |
|
| Additions |
|
|
13,271 |
|
|
|
- |
|
|
|
2,942 |
|
|
|
9,048 |
|
|
|
25,261 |
|
| Acquisition of subsidiaries |
|
|
29,268 |
|
|
|
- |
|
|
|
5,536 |
|
|
|
- |
|
|
|
34,804 |
|
| Disposals |
|
|
(5,096 |
) |
|
|
- |
|
|
|
(624 |
) |
|
|
(220 |
) |
|
|
(5,940 |
) |
| Transfers |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(791 |
) |
|
|
(791 |
) |
| FX revaluation |
|
|
- |
|
|
|
- |
|
|
|
(151 |
) |
|
|
- |
|
|
|
(151 |
) |
| At December 31, 2021 |
|
|
85,775 |
|
|
|
74 |
|
|
|
7,703 |
|
|
|
16,284 |
|
|
|
109,836 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Additions |
|
|
31,670 |
|
|
|
- |
|
|
|
11,913 |
|
|
|
3,306 |
|
|
|
46,889 |
|
| Acquisition of subsidiaries |
|
|
6,276 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,276 |
|
| Sale and leasebacks |
|
|
6,930 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,930 |
|
| Disposals |
|
|
(2,428 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,529 |
) |
|
|
(4,957 |
) |
| Disposal of subsidiaries |
|
|
(6,449 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6,449 |
) |
| Assets held for sale |
|
|
- |
|
|
|
- |
|
|
|
(4,696 |
) |
|
|
- |
|
|
|
(4,696 |
) |
| Transfers |
|
|
- |
|
|
|
- |
|
|
|
(818 |
) |
|
|
- |
|
|
|
(818 |
) |
| FX revaluation |
|
|
202 |
|
|
|
- |
|
|
|
223 |
|
|
|
68 |
|
|
|
493 |
|
| At December 31, 2022 |
|
|
121,976 |
|
|
|
74 |
|
|
|
14,325 |
|
|
|
17,129 |
|
|
|
153,504 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accumulated depreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| At December 31, 2020 |
|
|
(4,839 |
) |
|
|
(18 |
) |
|
|
- |
|
|
|
(1,076 |
) |
|
|
(5,933 |
) |
| Depreciation charge for the year |
|
|
(8,108 |
) |
|
|
(15 |
) |
|
|
(3,157 |
) |
|
|
(2,829 |
) |
|
|
(14,109 |
) |
| Disposals |
|
|
2,251 |
|
|
|
- |
|
|
|
- |
|
|
|
143 |
|
|
|
2,394 |
|
| Transfers |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
66 |
|
|
|
66 |
|
| At December 31, 2021 |
|
|
(10,696 |
) |
|
|
(33 |
) |
|
|
(3,157 |
) |
|
|
(3,696 |
) |
|
|
(17,582 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation charge for the year |
|
|
(16,485 |
) |
|
|
(15 |
) |
|
|
(4,790 |
) |
|
|
(4,268 |
) |
|
|
(25,558 |
) |
| Disposals |
|
|
2,738 |
|
|
|
- |
|
|
|
- |
|
|
|
1,407 |
|
|
|
4,145 |
|
| Disposal of subsidiaries |
|
|
729 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
729 |
|
| Assets held for sale |
|
|
- |
|
|
|
- |
|
|
|
3,818 |
|
|
|
- |
|
|
|
3,818 |
|
| Transfers |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| FX revaluation |
|
|
(48 |
) |
|
|
- |
|
|
|
(177 |
) |
|
|
(17 |
) |
|
|
(242 |
) |
| At December 31, 2022 |
|
|
(23,762 |
) |
|
|
(48 |
) |
|
|
(4,306 |
) |
|
|
(6,574 |
) |
|
|
(34,690 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net book value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| At December 31, 2022 |
|
|
98,214 |
|
|
|
26 |
|
|
|
10,019 |
|
|
|
10,555 |
|
|
|
118,814 |
|
| At December 31, 2021 |
|
|
75,079 |
|
|
|
41 |
|
|
|
4,546 |
|
|
|
12,588 |
|
|
|
92,254 |
|
In February 2022, the Group sold two of its customer
collection centers and leased them back for 20 years. The Group accounted for the sale and leaseback transactions in accordance with IFRS
16 and recognized a right-of-use asset and a lease liability for the leaseback.
The carrying amount and movement in the lease
liabilities are set out below:
| |
|
Lease liabilities |
|
| |
|
£’000 |
|
| |
|
|
|
| At December 31, 2020 |
|
|
48,048 |
|
| |
|
|
|
|
| Additions |
|
|
26,228 |
|
| Acquisition of subsidiaries |
|
|
36,352 |
|
| Interest |
|
|
1,338 |
|
| Payments |
|
|
(18,597 |
) |
| Terminations |
|
|
(2,969 |
) |
| At December 31, 2021 |
|
|
90,400 |
|
| |
|
|
|
|
| |
|
|
|
|
| Additions |
|
|
51,757 |
|
| Acquisition of subsidiaries |
|
|
6,276 |
|
| Interest |
|
|
5,245 |
|
| Payments |
|
|
(29,198 |
) |
| Terminations |
|
|
(2,307 |
) |
| Sale and leasebacks |
|
|
5,466 |
|
| Transfers |
|
|
(3,529 |
) |
| Disposals of subsidiaries |
|
|
(5,878 |
) |
| Assets held for sale |
|
|
(1,003 |
) |
| FX revaluation |
|
|
231 |
|
| At December 31, 2022 |
|
|
117,460 |
|
The following are the amounts recognized in the
statement of profit and loss in respect of lease agreements:
| |
|
Year ended December 31 2022 |
|
|
Year ended December 31 2021 |
|
|
Year ended December 31 2020 |
|
| |
|
£’000 |
|
|
£’000 |
|
|
£’000 |
|
| Depreciation expense |
|
|
25,558 |
|
|
|
14,109 |
|
|
|
5,570 |
|
| Interest on lease liabilities |
|
|
5,209 |
|
|
|
1,338 |
|
|
|
652 |
|
| Total |
|
|
30,767 |
|
|
|
15,447 |
|
|
|
6,222 |
|
Group acting as a lessor
The Group has entered into operating leases on
its subscription vehicles. These leases have terms of between one and three years.
Future minimum rentals receivable under non-cancellable
operating leases are as follows:
| |
|
At December 31
2022 |
|
|
At December 31
2021 |
|
| |
|
£’000 |
|
|
£’000 |
|
| Within one year |
|
|
776 |
|
|
|
1,602 |
|
| Greater than one year but not more than five years |
|
|
97 |
|
|
|
469 |
|
| Total |
|
|
873 |
|
|
|
2,072 |
|
|