Annual Report and Accounts 2024 - 2025 Notes to the accounts, part 1
Overview
These notes relate to the annual accounts for 2024 to 2025.
This page covers notes 1 to 9. See also notes 10 to 20.
This information is also available in the Annual Report and Accounts 2024/25 document (PDF, 9.5 MB).
Note 1: Accounting policies
The annual accounts are prepared in accordance with the Accounts Direction issued by Scottish Ministers. This Accounts Direction requires compliance with HM Treasury’s Financial Reporting Manual (FReM). The annual accounts have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the International Financial Reporting Standards Interpretations Committee (IFRSIC). Where FReM permits a choice of accounting policy, we have adopted the option that it judges to be most appropriate for the purpose of giving a true and fair view of its financial position. The accounting policies adopted have been set out below and they have been applied consistently in dealing with items that are considered material to the accounts.
Accounting convention
The accounts are prepared under the historical cost convention, modified to account for the revaluation of property, plant and equipment to current value as determined by the relevant accounting standard.
Accounting period
The accounting period commenced on 1 April 2024 and ended on 31 March 2025.
Going concern
The future financing of SEPA’s liabilities falling due in future years are met from income derived from charging schemes and funds received from Scottish Government. Future years charging scheme fees will be increased to meet the expected costs attributable to providing these services. The Agency Board (the Board) and Accountable Officer has no reason to expect this process to change in the future. In addition, they believe that SEPA will continue to receive support from Scottish Government. Accordingly, they consider it appropriate to adopt a going concern basis for the preparation of these annual accounts.
Non-current assets
Property, plant and equipment
Initial recognition of all non-current assets purchased are at cost. Subsequent valuations of non-current assets are recognised in the accounts as follows:
- Title of operational properties are included in our accounts based on the actual ownership and management of the assets concerned.
- Operational land and buildings current value is assessed on the basis that the occupation for existing use will continue for the foreseeable future, unless otherwise stated. For non-specialised properties, where there is direct market evidence, current value is assumed to be equal to open market value for existing use.
- For specialised properties (gauging stations), where there is no market evidence in respect of existing use, the value is assessed by using a depreciated replacement cost. There was a full valuation exercise conducted by Cushman and Wakefield (Royal Institute of Chartered Surveyors (RICS) regulated) at 31 March 2023 to determine the depreciated replacement cost. We intend to undertake a full valuation of our gauging stations every 3 years; the valuation will be based on visiting 20% of our sites on a rolling programme. In the years between full valuations, the value is indexed, we currently apply the Building Cost Information Service (BCIS) All-In Tender price index.
- Depreciated historic cost has been used as a proxy for the current value of equipment, fixtures and fittings, motor vehicles, plant and machinery, computer equipment and software. All these assets in this category have i) low values and short useful economic lives, which realistically reflect the life of the asset; and ii) depreciation or amortisation charge, which provides a realistic reflection of consumption.
- Only the large vessel (Sir John Murray) is reported at market value. A professional market valuation was obtained for the vessel as at March 2025 to check for impairment. As there was less than a 10% variance between the net book value and the market value, no adjustment was made.
- Depreciated historic cost is used as a proxy for current value of plant and equipment that has a medium-term economic life and where depreciation charge provides a realistic reflection of consumption.
- Right of use assets at transition to IFRS 16 on 1 April 2022 - qualifying leases were recognised as right of use assets. In accordance with the standard's requirements, the assets were initially measured at cost, equating to the discounted value of future lease payments less incentives. The right of use assets are depreciated on a straight-line basis over the lease term. These assets relate to property and vehicle leases, with valuation policy applied in line with owned assets. As at 31 March 2025, the value of the right of use property assets, based on market rent, was provided by an independent chartered surveyor (Avison Young).
- Expenditure on improvements, repairs and renewals of non-current assets is charged to the statement of comprehensive net expenditure in the year the expenditure is incurred, unless it is considered to have replaced a part of an asset. If it has replaced part of an asset, it will be capitalised and the cost and cumulative depreciation or amortisation of the asset it has replaced, will be removed from non-current assets.
Depreciation and amortisation
Depreciation or amortisation is provided on all non-current assets, other than freehold land, and it is calculated on a straight-line basis over the useful lives of the asset as detailed in table 31. Depreciation and amortisation is charged to the statement of comprehensive net expenditure on the carrying value of the non-current assets. An element of the depreciation and amortisation arising from the increase in the valuation, and in excess of the depreciation or amortisation that would be charged on the historic cost value of the asset, is taken to the revaluation reserve.
| Asset category | Asset lives (years) |
|---|---|
|
Buildings (including gauging stations) |
20 to 60 |
|
Leasehold buildings |
Over the remaining term of the lease |
|
Plant and machinery |
4 to 20 |
|
Right to use assets |
Over the term of the lease |
|
Fixtures, fittings, tools and equipment |
5 to 15 |
|
Vessels |
30 |
|
Computer hardware |
5 to 15 |
|
Motor vehicles |
4 to 10 |
|
Software developed in house |
3 to 15 |
|
Purchased software |
3 to 15 |
Assets in course of completion
Assets in course of completion are valued at cost. On completion they are transferred from the project account into the appropriate asset category. No depreciation or amortisation is charged until the asset is in operational use. The capitalisation threshold for assets is £10,000 including VAT. The actual salary costs including national insurance and superannuation of our staff who are involved in the creation of non-current assets are capitalised against the relevant assets.
Intangible assets
Purchased software
Purchased software is valued at depreciated historical cost, as a proxy for market value. These are licences to use software purchased from third parties with a life of more than one year and a cost of more than £10,000 including VAT. These licences are written off over the period they are in operational use.
In-house developed software
In-house developed software is the cost incurred for developing software with a life of more than one year and a cost of more than £10,000 including VAT. The actual salary costs, including national insurance and superannuation of our staff who are involved in the creation of non-current assets, are capitalised against the relevant asset. These costs are written off over the period the software is in operational use. There is no active market for this software and it is not income generating. Depreciated historical cost is used as a proxy for current market value.
Impairment
The carrying value of our assets is reviewed at each statement of financial position date to determine whether there is any indication of impairment. An impairment loss is recognised in the statement of comprehensive net expenditure whenever:
- The carrying amount of assets exceeds the recoverable amount.
- The residual value has fallen below that originally estimated.
- The economic life of the asset is lower than originally estimated.
Provisions for liabilities and charges
Provisions for liabilities and charges are based on realistic and prudent estimates of the expenditure required to settle future legal or constructive obligations, arising from past events that exist at the statement of financial position date. The provisions at the year-end were for:
- Unfunded pension liabilities in respect of pension commitments inherited from our predecessor bodies and the past Chair.
- Life assurance benefit provided to staff under our terms and conditions of employment as estimated by Hymans Robertson based on the profile of the staff employed at 31 March 2025.
- Decommissioning costs for leased properties. Avison Young (Royal Institute of Chartered Surveyors (RICS)) conducted a desk top valuation at 31 March 2025.
- Potential staff compensation payment.
Reserves
The comprehensive net expenditure reserve represents the excess of income over expenditure on grant in aid funded activities. The revaluation reserve reflects the increase in value of land, buildings and gauging stations over their historical costs.
Value added tax (VAT)
Irrecoverable VAT is charged to the statement of comprehensive net expenditure or included in the cost of assets in the period it is incurred.
Leases
We have a small number of operating lease rentals which do not qualify as right of use assets. The costs are charged to expenditure in equal annual amounts over the lease term. We do not enjoy the risks or rewards associated with ownership of the items leased.
Government grant in aid (GiA)
Funding received to cover general operating activities and replacement of capital items is shown as financing income and credited directly to the comprehensive net expenditure reserve.
Income
Income represents the total value excluding VAT of income received from revenue contracts as per International Financial Reporting Standard (IFRS) 15 and other operating income. Revenue from contracts includes income from SEPA specific and UK wide charging schemes, application fees and annual subsistence charges. We also earned income to recover the costs of specific services provided to other organisations. This income has been further split between statutory and non-statutory income.
Statutory income is defined as income which we receive in our regulatory role and for which the basis for charging is defined within statute. Non-statutory income covers a range of income primarily for the recharge of staff time and shared facilities, in addition to services provided to other organisations. We recognise income on delivery of performance obligations as per IFRS 15. Other operating income relates primarily to grant income which we recognise in line with IAS (International Accounting Standards) 20.
IAS 1 requires line items for income to be grouped into:
- Will not be reclassified subsequently to profit or loss.
- Will be reclassified subsequently to profit or loss when specific conditions are met.
All of our income falls under b) above.
Expenditure
Expenditure incurred on day-to-day operational activities is accounted for or charged into the statement of comprehensive net expenditure in the year that the work has been done. Staff costs are accounted for in the year that salaries are earned together with the employers’ costs. Other expenditure is charged or accrued into the year the services or goods were used. As part of the year end accounts process, a detailed accrual exercise is conducted to ensure expenditure is matched with income appropriately. Expenditure that relates to future accounting periods of more than £5,000 is prepaid and will be matched to income earned in future periods. All expenditure that related to services or goods received by 31 March 2025 has been accrued.
Pension costs
We participate in the Local Government Superannuation Scheme which is a defined benefit scheme. The expected cost of providing staff pensions is recognised on a systematic basis over the expected average remaining lives of members of the pension fund in accordance with IAS 19 and recognises retirement benefits as the benefits that are earned and not when they are due to be paid. The actuary reviews the scheme on a triennial basis and we have always implemented the contributions recommended (see note 17). The contribution charges are recognised in the accounting years in which they arise.
We provide in full for the cost of meeting pensions up to normal retirement age in respect of staff taking early retirement programmes and voluntary severances in the current and previous years. Most pensions payable after normal retirement age are met by the pension scheme, although there are some pension liabilities inherited from predecessor bodies that are met directly by us - these are reflected in the unfunded pension liabilities (see note 14).
Research and development expenditure
Research and development expenditure is written off to the statement of comprehensive net expenditure as it is incurred. This pertains to specific commissioning of one-off research projects.
Financial instruments
Our financial instruments comprise trade and other receivables, trade and other payables and cash and liquid resources (see note 13). Trade receivables are initially recognised at transaction price, which is assumed to be their fair value. Robust annual reviews are undertaken of all outstanding debtors to determine the likelihood of payment. If it is assessed/known that a debt will not be paid, it is written off to the statement of comprehensive net expenditure. Subsequent recoveries of amounts previously written off are taken to the statement of comprehensive net expenditure.
Trade payables are held at cost, which is considered to represent fair value. Any cash is held in accounts with highly rated banks. There is no significant liquidity or credit risk exposure due to the credit controls in place.
Foreign exchange
Transactions that are denominated in a foreign currency are translated into Sterling using the exchange rate applied by the bank when making payment.
Notional costs
Financial Reporting Manual (FReM) has removed the need to calculate and account for cost of capital, in the form of interest on capital, from 1 April 2010. Notional costs of capital are included in the costs recovered under the charging schemes, to reflect the cost of using government funded assets to deliver services. The charge was calculated at 3.5% of the average carrying amount of all assets, including assets in course of construction less trading liabilities, apportioned between charging scheme and non-charging scheme activities.
Review of accounting policies
We have reviewed all our accounting policies to ensure their continued relevance.
Civil penalties
Through its enforcement of certain breaches of legislation, we receive payment of penalties, for example, where fixed or monetary penalties are imposed under the Environmental Regulation (Enforcement Measures) (Scotland) Order 2015 or where civil penalties are served under the various climate change regimes, such as The Greenhouse Gas Emissions Trading Scheme Order 2020. In such cases, we are required to pass the funds received to Scottish Ministers and the funds are then put to the Scottish Consolidated Fund. As at 31 March 2025, there was an outstanding balance of £2.7m in our current assets and liabilities. However, as we are acting as an agent on behalf of Scottish Ministers these balances are not reflected in the accounts.
Judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates, assumptions and judgements that have a risk of adjustment to the carrying amount of assets and liabilities within the financial statements within the next financial year are:
- Provisions have been made where it has been determined that a financial liability of uncertain timing or amount exists (see note 14).
- Pensions - estimation of the net pension liability or asset is based on several complex judgements including the discount rate, salary increase rate, retirement ages, mortality rates, and expected returns on pension fund assets, following work carried out by our actuaries. Further estimates considered the extent to which the International Accounting Standards (IAS 19) and International Financial Reporting Interpretations Committee (IFRIC 14) asset ceiling limits on defined benefit schemes apply.
- IAS 19 limits the measurement of a net defined benefit asset to the lower of the surplus in the defined benefit plan and the asset ceiling. The asset ceiling is defined as the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. As there is no unconditional right to a refund, the asset ceiling has been calculated based on the assumption that an economic benefit is available to the employer through a reduction in future contributions; this equals the present value of future service costs less the present value of future service contributions. As the actuaries have calculated that the present value of future service contributions is less than the value of future service cost, the economic benefit available as a reduction in future contributions is floored at £0. The asset ceiling is therefore £0 (prior year £21.5m). Note 17 provides more detail on the movement in the net pension position.
- Estimated cost of decommissioning (note 9 and note 14) - the property decommissioning provision is the potential cost of reinstating leased properties to their original floorplan. A desktop valuation of the costs for two of our larger buildings was provided by Avison Young at 31 March 2025.
Future changes in accounting standards
We disclose accounting standards not yet applied and assess the possible impact that initial application would have on the financial statements. There are no new standards yet effective that will have an impact on our accounts.
Subsequent events
There are no events which have occurred since the statement of financial position at 31 March 2025 was prepared that require disclosure.
Note 2: Income from contracts
|
|
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|---|---|---|
|
Statutory income |
|
|
|
Charging Scheme fees and charges |
52,966 |
48,871 |
|
Scottish Landfill Tax |
369 |
384 |
|
Scottish Landfill Communities Fund |
117 |
176 |
|
Supporting enforcement undertakings |
2 |
19 |
|
Non-statutory income |
|
|
|
Provision of services |
728 |
888 |
|
|
54,182 |
50,338 |
Note 3: Other income
|
|
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|---|---|---|
|
Grants |
1,125 |
905 |
|
Other |
83 |
147 |
|
|
1,208 |
1,052 |
Note 4: Information regarding employees and Board members
|
|
Permanently employed staff £’000 |
Others £’000 |
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|
Staff costs |
|
|
|
|
|
Wages and salaries |
52,238 |
2,329 |
54,567 |
50,631 |
|
Social security costs |
5,398 |
241 |
5,639 |
5,217 |
|
Apprenticeship levy |
237 |
11 |
248 |
230 |
|
Pension costs |
9,586 |
427 |
10,013 |
11,680 |
|
Subtotal of payroll costs |
67,459 |
3,008 |
70,467 |
67,758 |
|
Other staff related costs (principally recruitment fees, staff subsistence, training costs and hiring agency and temporary staff) |
|
|
1,087 |
1,061 |
|
IAS 19 pension charge (note 17) |
|
|
1,296 |
137 |
|
Life assurance provision (note 14) |
|
|
234 |
206 |
|
Unfunded IAS 19 pension charge (note 14) |
|
|
28 |
55 |
|
|
|
|
73,112 |
69,217 |
More information on our staff can be found in the remuneration and staff report section of this report.
Note 5: Other operating charges
|
|
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|---|---|---|
|
Operating charges categorised |
|
|
|
Supplies and services |
19,809 |
16,824 |
|
Property costs |
4,370 |
3,857 |
|
Transport costs |
900 |
1,327 |
|
Research and development costs |
15 |
24 |
|
Property and vehicle leases |
364 |
479 |
|
External auditor’s remuneration |
79 |
77 |
|
|
25,537 |
22,588 |
Note 6: Interest receivable and similar income
|
|
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|---|---|---|
|
Bank interest received |
141 |
202 |
|
International Accounting Standards (IAS) 19 net return on pension scheme assets and liabilities (note 17) |
1,011 |
75 |
|
|
1,152 |
277 |
Note 7: Interest payable
|
|
Year to 31 March 2025 £’000 |
Year to 31 March 2024 £’000 |
|
Interest on leases |
101 |
85 |
|
|
101 |
85 |
Note 8: Taxation
We are not liable to corporation tax for 2024/25 (nil for 2023/24).
Note 9: Non-current assets to March 2025
|
Year to 31 March 2025 |
Land £’000 |
Buildings £’000 |
Leasehold buildings £’000 |
Gauging stations £’000 |
Plant & machinery £’000 |
Vessel £’000 |
Computer equipment £’000 |
Motor vehicles £’000 |
Fixtures & fittings £’000 |
Total PPE £’000 |
|---|---|---|---|---|---|---|---|---|---|---|
|
Cost or valuation |
|
|
|
|
|
|
|
|
|
|
|
1 April 2024 |
708 |
4,150 |
11,230 |
35,269 |
13,359 |
860 |
5,681 |
785 |
246 |
72,288 |
|
Opening balance adjustment |
|
|
(105)[23] |
|
|
|
|
|
|
(105) |
|
Purchases |
0 |
0 |
0 |
447 |
2,439 |
0 |
420 |
9 |
17 |
3,332 |
|
Decommissioning provision |
0 |
0 |
96 |
0 |
0 |
0 |
0 |
0 |
0 |
96 |
|
Impairments |
0 |
0 |
0 |
(133) |
0 |
0 |
0 |
0 |
0 |
(133) |
|
Disposals |
0 |
0 |
(18) |
(332) |
(1,044) |
0 |
0 |
(136) |
0 |
(1,530) |
|
Revaluations |
(30) |
(215) |
0 |
811 |
0 |
0 |
0 |
0 |
0 |
566 |
|
At 31 March 2025 |
678 |
3,935 |
11,203 |
36,062 |
14,754 |
860 |
6,101 |
658 |
263 |
74,514 |
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
1 April 2024 |
0 |
0 |
5,402 |
17,556 |
8,676 |
186 |
2,965 |
449 |
230 |
35,464 |
|
Charge for year |
0 |
592 |
863 |
1,095 |
886 |
75 |
736 |
72 |
13 |
4,332 |
|
Impairments |
0 |
0 |
0 |
(59) |
0 |
0 |
0 |
0 |
0 |
(59) |
|
Disposals |
0 |
0 |
0 |
(218) |
(1,016) |
0 |
0 |
(136) |
0 |
(1,370) |
|
Revaluations |
0 |
(592) |
0 |
415 |
0 |
0 |
0 |
0 |
0 |
(177) |
|
At 31 March 2025 |
0 |
0 |
6,265 |
18,789 |
8,546 |
261 |
3,701 |
385 |
243 |
38,190 |
|
Net book value at 31 March 2025 |
678 |
3,935 |
4,938 |
17,273 |
6,208 |
599 |
2,400 |
273 |
20 |
36,324 |
|
Net book value at 31 March 2024 |
708 |
4,150 |
5,828 |
17,713 |
4,683 |
674 |
2,716 |
336 |
16 |
36,824 |
[23] Adjusted for over accrual in 2023/24.
Note 9: Non-current assets to March 2025 continued
|
Year to 31 March 2025 |
Right of use buildings £’000 |
Right of use vehicles £’000 |
Total right of use assets £’000 |
|
Cost or valuation |
|
|
|
|
1 April 2024 |
5,335 |
235 |
5,570 |
|
Purchases |
210 |
145 |
355 |
|
Disposals |
(166) |
0 |
(166) |
|
Revaluations |
74 |
0 |
74 |
|
At 31 March 2025 |
5,453 |
380 |
5,833 |
|
Depreciation |
|
|
|
|
1 April 2024 |
0 |
17 |
17 |
|
Charge for year |
1,073 |
65 |
1,138 |
|
Disposals |
(30) |
0 |
(30) |
|
Revaluations |
(1,043) |
0 |
(1,043) |
|
At 31 March 2025 |
0 |
82 |
82 |
|
Net book value at 31 March 2025 |
5,453 |
298 |
5,751 |
|
Net book value at 31 March 2024 |
5,335 |
218 |
5,553 |
Note 9: Non-current assets to March 2025 continued
|
Year to 31 March 2025 |
Software developed in-house £’000 |
Purchased software £’000 |
Total intangible assets £’000 |
Assets under construction £’000 |
|
Cost or valuation |
|
|
|
|
|
1 April 2024 |
1,955 |
5,664 |
7,619 |
2,807 |
|
Purchases |
104 |
98 |
202 |
1,536 |
|
Brought into operational use |
194 |
1,769 |
1,963 |
(1,963) |
|
At 31 March 2025 |
2,253 |
7,531 |
9,784 |
2,380 |
|
Depreciation |
|
|
|
|
|
1 April 2024 |
1,205 |
4,012 |
5,217 |
0 |
|
Charge for year |
196 |
344 |
540 |
0 |
|
At 31 March 2025 |
1,401 |
4,356 |
5,757 |
0 |
|
Net book value at 31 March 2025 |
852 |
3,175 |
4,027 |
2,380 |
|
Net book value at 31 March 2024 |
750 |
1,652 |
2,402 |
2,807 |
Note 9: Non-current assets to March 2024
|
Year to 31 March 2024 |
Land £’000 |
Buildings £’000 |
Leasehold buildings £’000 |
Gauging stations £’000 |
Plant & machinery £’000 |
Vessel £’000 |
Computer equipment £’000 |
Motor vehicles £’000 |
Fixtures & fittings £’000 |
Total PPE £’000 |
|
Cost or valuation |
|
|
|
|
|
|
|
|
|
|
|
1 April 2023 |
823 |
3,680 |
10,906 |
35,647 |
13,057 |
735 |
5,261 |
653 |
246 |
71,008 |
|
Purchases |
0 |
718 |
124 |
563 |
834 |
125 |
302 |
158 |
0 |
2,824 |
|
Recategorisation |
0 |
67 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
67 |
|
Brought into operational use |
0 |
0 |
0 |
0 |
0 |
0 |
118 |
0 |
0 |
118 |
|
Decommissioning provision |
0 |
0 |
617 |
0 |
0 |
0 |
0 |
0 |
0 |
617 |
|
Disposals |
0 |
0 |
(417) |
(115) |
(532) |
0 |
0 |
(26) |
0 |
(1,090) |
|
Revaluations |
(115) |
(315) |
0 |
(826) |
0 |
0 |
0 |
0 |
0 |
(1,256) |
|
At 31 March 2024 |
708 |
4,150 |
11,230 |
35,269 |
13,359 |
860 |
5,681 |
785 |
246 |
72,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
|
|
|
|
|
|
|
|
1 April 2023 |
0 |
0 |
5,051 |
16,829 |
8,410 |
122 |
2,263 |
439 |
218 |
33,332 |
|
Charge for year |
0 |
315 |
767 |
1,165 |
791 |
64 |
702 |
36 |
12 |
3,852 |
|
Disposals |
0 |
0 |
(416) |
(35) |
(525) |
0 |
0 |
(26) |
0 |
(1,002) |
|
Revaluations |
0 |
(315) |
0 |
(403) |
0 |
0 |
0 |
0 |
0 |
(718) |
|
At 31 March 2024 |
0 |
0 |
5,402 |
17,556 |
8,676 |
186 |
2,965 |
449 |
230 |
35,464 |
|
Net book value at 31 March 2024 |
708 |
4,150 |
5,828 |
17,713 |
4,683 |
674 |
2,716 |
336 |
16 |
36,824 |
|
Net book value at 31 March 2023 |
823 |
3,680 |
5,855 |
18,818 |
4,647 |
613 |
2,998 |
214 |
28 |
37,676 |
Note 9: Non-current assets to March 2024 continued
|
Year to 31 March 2024 |
Right of use buildings £’000 |
Right of use vehicles £’000 |
Total right of use assets £’000 |
|
Cost or valuation |
|
|
|
|
1 April 2023 |
5,286 |
0 |
5,286 |
|
Purchases |
394 |
235 |
629 |
|
Disposals |
(240) |
0 |
(240) |
|
Revaluations |
(105) |
0 |
(105) |
|
At 31 March 2024 |
5,335 |
235 |
5,570 |
|
Depreciation |
|
|
|
|
1 April 2023 |
0 |
0 |
0 |
|
Charge for year |
1,005 |
17 |
1,022 |
|
Disposals |
(79) |
0 |
(79) |
|
Revaluations |
(926) |
0 |
(926) |
|
At 31 March 2024 |
0 |
17 |
17 |
|
Net book value at 31 March 2024 |
5,335 |
218 |
5,553 |
|
Net book value at 31 March 2023 |
5,286 |
0 |
5,286 |
Note 9: Non-current assets to March 2024 continued
|
Year to 31 March 2024
|
Software developed in-house £’000 |
Purchased software £’000 |
Total intangible assets £’000 |
Assets under construction £’000 |
|
Cost or valuation |
|
|
|
|
|
1 April 2023 |
1,955 |
5,261 |
7,216 |
1,167 |
|
Purchases |
0 |
403 |
403 |
1,826 |
|
Recategorised |
0 |
0 |
0 |
(68) |
|
Brought into operational use |
0 |
0 |
0 |
(118) |
|
Disposals |
0 |
0 |
0 |
0 |
|
At 31 March 2024 |
1,955 |
5,664 |
7,619 |
2,807 |
|
Depreciation |
|
|
|
|
|
1 April 2023 |
1,023 |
3,803 |
4,826 |
0 |
|
Charge for year |
182 |
209 |
391 |
0 |
|
Disposals |
0 |
0 |
0 |
0 |
|
At 31 March 2024 |
1,205 |
4,012 |
5,217 |
0 |
|
Net book value at 31 March 2024 |
750 |
1,652 |
2,402 |
2,807 |
|
Net book value at 31 March 2023 |
932 |
1,458 |
2,390 |
1,167 |
The charge in the statement of comprehensive net expenditure includes depreciation charged for the year, impairments and the net book value of disposals of £6.2m. The total carrying value of property, plant and equipment, including right of use assets as at 31 March 2025 was £42.1m. Intangible assets were £4m and assets under construction were £2.4m.
The land and buildings category comprises owned properties, which were valued on a desktop basis by Avison Young at £4.6 million as of 31 March 2025 (compared to £4.9 million as of 31 March 2024).
The right-of-use value for leased properties, determined using discounted market rent as of 31 March 2025, was assessed by Avison Young at £5.5 million (£5.3 million as of 31 March 2024).
Gauging stations were valued as at 31 March 2025 at £17.3m (£17.7m as at 31 March 2024). Gauging stations are specialised assets, they were fully valued by Cushman and Wakefield at 31 March 2023 using the depreciated replacement cost approach set out in the Royal Institution of Chartered Surveyors (RICS) Red Book. 24
In 2024/25, we applied the BCIS All-In Tender price index based on advice provided by Avison Young's and HMRC guidance from December 2024. This resulted in a 2.3% increase of £0.4m. The estimated value of the gauging stations, including additions, disposals, and impairments, was £17.3m as of 31 March 2025, down £0.4m from 31 March 2024.
The revaluation movements of £1.9m have been balanced by the movements on the revaluation reserve held in taxpayers' equity of £0.9m and the comprehensive net expenditure of £1m.
A desk top valuation of the estimated costs of leasehold buildings decommissioning costs, which is the estimated increase in cost of returning the internal layout to the original form, was provided by Avison Young as at 31 March 2024 at £4.2m. In 2024/25, we applied the BCIS All-In Tender price index, this resulted in a 2.3% increase of £0.1m. The revaluation movement of £0.1m has been balanced by movement in the decommissioning provision.
The vessel (Sir John Murray) is checked for impairment on an annual basis and it is valued by Century Marine. The valuation provided by Century Marine as at March 2024 was £0.61m. As this is less than 10% change from the carrying value of £0.63m, we have not revalued the asset.
Depreciated historic cost has been used as a proxy for the current value of fixtures and fittings, motor vehicles, plant and machinery, computer equipment, and software. All the assets in these categories have: (a) low values and short useful economic lives, which realistically reflect the life of the asset; and (b) a depreciation or amortisation charge, which provides a realistic reflection of consumption. Intangible non-current assets are all purchased software and in house developed software with a life of more than one year and a cost of more than £10,000 including VAT.
[24] 'Red Book' Valuations are those that meet the criteria set out by the Royal Institution of Chartered Surveyors (RICS). It sets out the mandatory rules and standard guidelines for RICS Registered valuers to follow when they are undertaking valuations.
Documents
- Annual Report and Accounts 2024/25 (PDF, 9.5 MB)
- Highlights of 2024/25 (PDF, 683 kB)