Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Provisions

v3.20.2
Provisions
6 Months Ended
Jul. 31, 2020
Provisions [abstract]  
Provisions
13 Provisions

 

    31 July 2020
NZ $000’s
    31 January
2020
NZ $000’s
 
Current:            
Other provisions     8,841       5,205  
Make good     602       639  
      9,443       5,844  

 

    31 July 2020
NZ $000’s
    31 January
2020
NZ $000’s
 
Non-current:            
Make good     1,391       1,796  
      1,391       1,796  

 

   

Other provisions

NZ$000’s

   

Make good

NZD$000’s

   

Total

NZ$000’s

 
                   
Opening balance at 1 February 2020     5,205       2,435       7,640  
Additional provisions recognised     5,717       26       5,743  
Amounts used during the year     (1,983 )     (439 )     (2,422 )
Exchange differences     (98 )     (29 )     (127 )
Balance at 31 July 2020     8,841       1,993       10,834  
                         
Opening balance at 1 August 2019     -       2,380       2,380  
Additional provisions recognised     5,205       8       5,213  
Amounts used during the year     -       (6 )     (6 )
Other movements     -       (69 )     (69 )
Exchange differences     -       122       122  
Balance at 31 January 2020     5,205       2,435       7,640  

 

Other provisions

 

On March 24, 2020, Timothy Connell filed a complaint against us, a subsidiary of ours, and Mr. Davis-Rice, alleging, among other things, that certain shares issued to him in satisfaction of a debt were not registered for resale as promised. Mr. Connell seeks rescission of the transaction. In addition to this, a claim by William Gibson and Ivory Castle Limited, was also provided for although no official complaint had been received by the Group at the date of this report. The total amount provided for is NZ$5.7m

 

In the prior year, the Group entered into an agreement terminating the license agreement with Heidi Klum. The termination agreement provides that we may continue selling existing Heidi Klum branded products, as well as Heidi Klum branded products manufactured on or prior to June 30, 2020 under existing contracts. The right to continue selling such products will continue until six months after the date of the termination agreement in the Northern Hemisphere and until 12 months after the date of the termination agreement in the Southern Hemisphere. The original terms of the termination fee to Heidi Klum in lieu of further royalties was payable in instalments through to 30 December 2020, however the Group has obtained an extension due to the impact of COVID-19.

 

Make good

 

In accordance with certain lease agreements, the Group must refurbish and restore the lease premises to a condition agreed with the landlord at the end of the lease term or as prescribed. The provision has been calculated using a pre-tax discount rate of 2% (31 January 2020: 2%).