12.10 Impairment of land and buildings The Group considers individual schemes to be separate cash generating units (CGUs) when assessing for impairment, in accordance with the requirements of FRS 102 and the Housing SORP 2018. The directors have identified four properties where both the value in use and the fair market value was assessed as being lower than the net book value in the Association. These properties have therefore been impaired to their fair market value. There is no impairment of these locations in the Group where the net book value is lower. In 2023, there were two properties that were planned for disposal at a deficit based on the expected selling price. These properties were therefore impaired to their forecast realisable value in both the Group and the Association. The review concluded that an impairment charge of £2,639,000 was required in the Association for the year (2023: £1,023,000). No impairment charge was recognised in the Group (2023: £1,023,000). When carrying out the impairment review of a CGU the recoverable amount of a CGU is assessed as the higher of the value in use and the fair value less costs to sell. Value in use is calculated based on the future cash inflows and outflows to be derived from the continuing use of the CGU and from its ultimate disposal, discounted at a rate equivalent to the cost of capital of the group.
13.1 Fixed asset investments - Group and Association 13. Fixed asset investments
2024 £’000
2023 £’000
Other Investments Schroders Private Equity Fund Total value of investments
168 168
671 671
13.2 Fixed asset investments - subsidiary undertakings
Association £’000
Note
Cost at 1 April 2023
37,252
Additions:
Acquisition of Hadrian Healthcare (Skipton) Limited Halcyon Care Homes Topco Limited share issue Anchor Lifestyle Developments Limited share issue
35
12,730 2,450 31,700 (52,410) (15,062) 16,660
Credited by gift aid
Impairment
Cost at 31 March 2024
As detailed in note 35, Anchor Hanover Group acquired the entire issued share capital of Hadrian Healthcare (Skipton) Limited. That company immediately sold its trade and assets to Anchor Hanover Group and was renamed Anchor (Skipton) Limited. Subsequently the company made a final gift aid distribution to Anchor Hanover Group of £12,708,000 reducing the investment to £22,000. This investment was then impaired leaving an investment of £1. The investment in Halcyon Care Homes Topco Limited increased by £2,450,000 to £39,702,000 following a share issue. This investment was subsequently reduced to £1 following a final gift aid distribution £41,503,000 of which £39,702,000 was credited against the investment. Halcyon Care Homes Topco Limited now has a balance sheet value of £1 and an application to strike off this entity has been made. Anchor Hanover Group subscribed to an issue of two ordinary shares by Anchor Lifestyle Developments Limited for a total consideration of £31,700,000. The consideration was subsequently offset against amounts due to Anchor Hanover Group from Anchor Lifestyle Developments Limited. After accounting for a provision made against this loan of £15,040,000 the shares were recognised at their fair value of £16,600,000.
92 Anchor Hanover Group Annual Report & Financial Statements 2024
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