Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Provisions

v3.19.2
Provisions
12 Months Ended
Jan. 31, 2019
Provisions [abstract]  
Provisions

20 Provisions

 

    31 January 2019
NZ$000’s
    31 January 2018
NZ$000’s
    31 January 2017
NZ$000’s
 
CURRENT                        
Lease contributions     179       412       480  
Onerous contracts     -       264       377  
Make good     742       430       671  
      921       1,106       1,528  

 

    31 January 2019
NZ$000’s
    31 January 2018
NZ$000’s
    31 January 2017
NZ$000’s
 
NON-CURRENT                        
Lease contributions     906       910       702  
Onerous contracts     -       -       176  
Make good     1,466       1,801       1,371  
      2,372       2,711       2,249  

 

    Lease contributions
NZ$000’s
    Onerous contracts
NZ$000’s
    Make good
NZ$000’s
    Total
NZ$000’s
 
Opening balance at 1 February 2018     1,322       264       2,231       3,817  
Additional provisions recognised     337       -       717       1,054  
Unused amounts reversed     -       -       (600 )     (600 )
Unwinding of discounts     -       -       (84 )     (84 )
Amounts used during the period     (510 )     (264 )     -       (774 )
Exchange differences     (64 )     -       (56 )     (120 )
Balance at 31 January 2019     1,085       -       2,208       3,293  

 

    Lease contributions
NZ$000’s
    Onerous contracts
NZ$000’s
    Make good
NZ$000’s
    Total
NZ$000’s
 
Opening balance at 1 February 2017     1,182       553       2,042       3,777  
Additional provisions recognised     635       -       595       1,230  
Unused amounts reversed     -       -       (658 )     (658 )
Unwinding of discounts     -       -       271       271  
Amounts used during the period     (547 )     (289 )     (77 )     (913 )
Exchange differences     52       -       58       110  
Balance at 31 January 2018     1,322       264       2,231       3,817  
                                 
Opening balance at 1 July 2016     1,318       275       1,817       3,410  
Additional provisions recognised     145       508       353       1,006  
Unused amounts reversed     -       -       (112 )     (112 )
Unwinding of discounts     -       -       (9 )     (9 )
Amounts used during the period     (269 )     (230 )     -       (499 )
Exchange differences     (12 )     -       (7 )     (19 )
Balance at 31 January 2017     1,182       553       2,042       3,777  

 

Onerous contracts

 

The onerous provision relates to a head office lease for which the space is not fully utilised. The provision is calculated using a pre-tax discount rate of 10.25% (2018: 11.4%, 2017: 11.4%). The balance of this provision at 31 January 2019 is $nil.

 

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% (2018: 2%, 2017: 2%), and other market assumptions and re-assessed annually.

 

During the 2019 financial year an additional $595 thousand was recognised in relation to new retail leases in New Zealand and Australia.