RWS Annual Report 2022 web - Flipbook - Page 137
Group as a lessee
The Group has entered into leases across the business, principally relating to property. Set out below are the carrying
amounts of right-of-use assets recognised and the movements during the year:
Property
£m
Office Equipment
£m
Total
£m
At 1 October
19.2
0.9
20.1
Leases acquired on acquisition
34.1
-
34.1
2.0
-
2.0
(11.8)
(0.9)
(12.7)
Right-of-use assets
Additions
Depreciation expense
Currency adjustment
(1.1)
-
(1.1)
At 30 September 2021
42.4
-
42.4
Acquisitions
0.2
-
0.2
Additions
6.8
-
6.8
Disposals
Depreciation expense
Re-measurement adjustments
Currency adjustment
At 30 September 2022
(0.1)
-
(0.1)
(10.8)
-
(10.8)
(1.0)
-
(1.0)
1.5
-
1.5
39.0
-
39.0
Set out below are the carrying amounts of lease liabilities and the movements during the year:
Lease liabilities
2022
£m
2021
£m
At 1 October
51.5
22.8
Additions
6.8
4.3
Leases acquired on acquisition of subsidiary
0.2
37.7
Accretion of interest
Re-measurement adjustments
Repayments
Currency adjustment
At 30 September
1.3
1.5
(1.0)
-
(13.1)
(12.6)
1.0
(2.2)
46.7
51.5
Current
11.8
11.0
Non-current
34.9
40.5
2022
£m
2021
£m
The maturity analysis of lease liabilities is disclosed in Note 20.
10.8
12.7
Interest expense on lease liabilities
Depreciation expense on right of use assets
1.3
1.5
Expense relating to short term leases*
1.8
1.7
Expense relating to leases of low value assets*
0.5
0.5
14.4
16.4
Total amount recognised in profit or loss
*The expenses in respect of short term and low value leases are recognised in administrative expenses. The cash outflows in respect of short term and low
value leases are presented within cash flows from operating activities in the Statement of Cash Flows.
The Group had total cash outflows for leases of £13.1m (2021: £12.6m). The Group had no non-cash additions to rightof-use assets and lease liabilities in the year (2021: £nil). There are no future cash outflows relating to leases not yet
commenced to disclose separately.
The Group has several lease contracts that include scheduled rent reviews or rent increases based on future indices.
Index linked payment increases are typically in respect of changes in the Consumer Price Index for leases in the United
Kingdom, or similar indexes outside of the United Kingdom. These agreements represent standard commercial terms
for several locations in which leases are held. The impact of index linked rent increases was not material for the Group
in the period. The Group also has several lease contracts that include extension and termination options. These
options are negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the
Group’s business needs.
NOTES TO THE CONSOLIDATED STATEMENTS
RWS — Annual Report 2022
137
