RWS AR 23 Final Single pages - Flipbook - Page 125
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 昀椀nancial 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 re昀氀ect the business's trading performance and therefore
are adjusted to present consistency between periods.
2023
Pre-tax
£m
Group transformation programme
Restructuring & integration related costs
Legacy payment arrangements
Total exceptional items - operating
2023
Tax impact
£m
2023
Total
£m
2022
Pre-tax
£m
2022
Tax impact
£m
2022
Total
£m
(5.5)
1.1
(4.4)
(0.3)
0.1
(0.2)
(12.3)
2.9
(9.4)
(12.2)
2.4
(9.8)
(4.8)
-
(4.8)
-
-
-
(22.6)
4.0
(18.6)
(12.5)
2.5
(10.0)
Amortisation of exceptional 昀椀nance (Note 8)
(0.3)
-
(0.3)
(0.3)
-
(0.3)
Total exceptional items - 昀椀nancing
(0.3)
-
(0.3)
(0.3)
-
(0.3)
(22.9)
4.0
(18.9)
(12.8)
2.5
(10.3)
Total exceptional items
A description of the principal items included is provided below:
Transformation costs – £5.5m was incurred during the period in respect of transformation programmes for Finance
and Human Resources initiated as part of a strategic review of the business to drive improved e昀케ciencies in future
periods and includes severance costs of £1.7m. In total £2.4m has been paid in the period. The severance costs are
expected to be paid during the 昀椀rst half of FY24 and the ongoing bene昀椀ts from the integration will be recognised in
the operating pro昀椀t in the Statement of Comprehensive Income.
Restructuring Costs - £7.6m was incurred in respect of severance and termination payments related to the Group’s
cost reduction plan which is expected to have a positive impact in FY24 of approximately £25m. A further £0.6m of
severance costs were incurred in respect of the businesses de昀椀ned integration plan for the OneRWS initiative. A total
of £4.4m of these costs were paid during the period.
Integration costs - £3.4m was incurred in respect of IT integration projects to enhance service delivery capability
and reduce business complexity across the Group. A further £0.7m was incurred related to delivering synergies from
business integration and ongoing simpli昀椀cation of the Group’s corporate structure. All of these amounts were paid
during the period.
Legacy payments - £4.3m was recognised in the period in respect of an ongoing liability related to historic agreements
with former owners of the business and their respective families. This expense had previously been recognised as
incurred. A further £0.5m was paid during the period in respect of current year obligations.
Finance costs - £0.3m was incurred related to amortisation expense associated with a gain on debt modi昀椀cation
recognised in previous accounting periods.
In the prior period, exceptional costs included £7.4m of IT integration costs, £3.2m of severance costs, £1.6m of
contract termination costs, £0.3m for Group Transformation programmes and £0.3m of exceptional 昀椀nance costs. In
total £12.5m was charged during the prior period.
Acquisition-related costs
Acquisition-related costs of £5.1m (2022: £2.1m) includes a total of £3.3m of contingent consideration associated with
the acquisition of Propylon Holdings Limited (£1.2m) during the period and the acquisition of Liones Holdings B.V.
Limited (£2.1m) in the prior period. These amounts are being recognised in accordance with IFRS 3.
A further £1.5m of transaction fees were incurred associated with the Propylon acquisition, and £0.3m in respect of
on-going strategic projects. These have been accounted for as exceptional items in line with the Group’s accounting
policy and treatment of similar costs during the year ended 30 September 2022.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2023
125
