RWS Annual Report 2022 web - Flipbook - Page 121
6. EXCEPTIONAL ITEMS
Accounting policy
Exceptional items are those items that in management's judgement should be disclosed separately by virtue of their
size, nature or incidence, in order to provide a better understanding of the underlying financial performance of the
Group. In determining whether an event or transaction is exceptional, management considers qualitative factors such
as frequency or predictability of occurrence. Examples of exceptional items include the costs of integration, severance
and restructuring costs which Management do not believe reflect the business's trading performance and therefore
are adjusted to present consistency between periods.
2022
Pre-tax
£m
Group transformation programme
Restructuring & integration related costs
Proceeds from warranty claim
Total exceptional items - operating
2022
Tax impact
£m
2022
Total
£m
2021
Pre-tax
£m
2021
Tax impact
£m
2021
Total
£m
(0.3)
0.1
(0.2)
(4.8)
1.2
(3.6)
(12.2)
2.4
(9.8)
(10.5)
2.3
(8.2)
-
-
-
1.2
-
1.2
(12.5)
2.5
(10.0)
(14.1)
3.5
(10.6)
Amortisation of exceptional finance (Note 8)
(0.3)
-
(0.3)
(0.3)
-
(0.3)
Total exceptional items - financing
(0.3)
-
(0.3)
(0.3)
-
(0.3)
(12.8)
2.5
(10.3)
(14.4)
3.5
(10.9)
Total exceptional items
As part of a strategic review of the business, the Group has initiated a transformation programme for Finance and
Human Resources to drive improved efficiencies in future periods. In 2022, £0.3m of cost was incurred and paid
during the period. The Group expects to incur and pay further material costs over the next 2 years related to the
transformation totalling £15.9m and the ongoing benefits from the integration will be recognised in operating profit in
the statement of comprehensive income.
Included with restructuring and integration costs are £3.2m of severance agreements and termination payments
included within the businesses defined integration plan for SDL plc. A further £7.4m was incurred in respect of IT
integration projects, all of which was paid during the period. An additional £1.6m was incurred and paid in respect of
contract termination costs to rehouse the Group's data warehousing capability for the integrated business. The cost
of delivering synergies is classified as exceptional to highlight the expense of delivering the integration and represent
costs which are considered by the Group to be outside the normal course of business.
In FY20, a settlement was agreed for a claim made by the Group under warranty insurance taken out as part of the
Moravia acquisition in 2017. In FY21, a final amount of £1.2m was received relating to this settlement claim.
Exceptional finance costs of £0.3m (2021: £0.3m) relate to the amortisation expense associated with a gain on debt
modification recognised in previous accounting periods.
Adjusted Performance Measures are reconciled on page 160 to 161 of the accounts.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2022
121
