- Financial Statements
Notes to the Consolidated Financial Statements
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for the year to 31 December 2007
13. Property, plant and equipment
| Freehold land and buildings £m |
Plant and equipment £m |
Total £m |
|
| Cost or valuation | |||
| At 1 January 2006 | 7.2 | 59.6 | 66.8 |
| Additions | – | 6.7 | 6.7 |
| Disposals | – | (2.0) | (2.0) |
| Net surplus on revaluation | 2.4 | – | 2.4 |
| Changes in exchange rates | – | (0.7) | (0.7) |
| At 31 December 2006 | 9.6 | 63.6 | 73.2 |
| Acquired on acquisition of George Wimpey Plc | 1.2 | 15.2 | 16.4 |
| Additions | – | 13.6 | 13.6 |
| Disposals | (1.5) | (13.3) | (14.8) |
| Changes in exchange rates | – | 0.3 | 0.3 |
| At 31 December 2007 | 9.3 | 79.4 | 88.7 |
| Comprising: | |||
| Properties valued | |||
| Cost | 8.8 | – | 8.8 |
| Net surplus | 0.5 | – | 0.5 |
| Valuation in 2006 | 9.3 | – | 9.3 |
| Plant and equipment – cost | – | 79.4 | 79.4 |
| 9.3 | 79.4 | 88.7 | |
| Accumulated depreciation | |||
| At 1 January 2006 | – | 42.4 | 42.4 |
| Disposals | – | (2.0) | (2.0) |
| Charge for the year | – | 7.7 | 7.7 |
| Changes in exchange rates | – | (0.4) | (0.4) |
| At 31 December 2006 | – | 47.7 | 47.7 |
| Disposals | – | (6.5) | (6.5) |
| Charge for the year | – | 8.3 | 8.3 |
| Changes in exchange rates | – | 0.2 | 0.2 |
| At 31 December 2007 | – | 49.7 | 49.7 |
| Carrying amount | |||
| At 31 December 2007 | 9.3 | 29.7 | 39.0 |
| At 31 December 2006 | 9.6 | 15.9 | 25.5 |
The fixed asset properties of the Group were valued as at 31 December 2006 by Knight Frank LLP, independent valuers not connected with the Group, on a fair value basis in accordance with RICS valuation methodology, and that valuation was £9.6m. The prior year income statement was credited with £1.4m of the £2.4m net surplus on revaluation in line with prior years' deficit treatment.
The revaluation surplus arises in a subsidiary and cannot be distributed to the parent due to legal restrictions in the United Kingdom.