- Financial Statements
Notes to the Consolidated Financial Statements
for the year to 31 December 2007
24. Provisions
| Housing maintenance £m |
Restructuring £m |
Other £m |
Total £m |
|
| At 1 January 2006 | 30.8 | – | – | 30.8 |
| Additional provision in the year | 21.7 | – | – | 21.7 |
| Utilisation of provision | (22.3) | – | – | (22.3) |
| Changes in exchange rates | (2.3) | – | – | (2.3) |
| At 31 December 2006 | 27.9 | – | – | 27.9 |
| Acquired on acquisition of George Wimpey Plc | 5.8 | – | 13.9 | 19.7 |
| Additional provision in the year | 23.5 | 52.8 | 1.7 | 78.0 |
| Utilisation of provision | (18.7) | (19.2) | (1.2) | (39.1) |
| Changes in exchange rates | – | – | 0.1 | 0.1 |
| At 31 December 2007 | 38.5 | 33.6 | 14.5 | 86.6 |
| £m | ||||
| Amount due for settlement within 12 months | 48.2 | |||
| Amount due for settlement after 12 months | 38.4 | |||
| 31 December 07 | 86.6 |
The housing maintenance provision arises principally from warranties and other liabilities on housing sold. Whilst such warranties extend to a period of ten years, payment of these costs is likely to occur within a period of two years. The Group has a restructuring provision relating to the redundancies and relocation costs which arise as a result of the George Wimpey Plc merger. It is anticipated that the majority of this provision will be utilised in 2008. Other provisions consist of a remedial work provision and rental guarantee provision. The remedial work provision covers various obligations, including aftercare at Springfield Environmental Limited which has a legal responsibility of a long term nature for the management of old, completed sites and provisions for losses on construction contracts for which responsibility was retained by George Wimpey Plc group following an asset swap with Tarmac Plc in 1996.