BusinessCompany News£59m impairment charge hits P&O

£59m impairment charge hits P&O

P&O Group will take an 85m euros (£59m) impairment charge in its 2004 year-end accounts relating to its disposal of Hamburg-based properties.

Link: Jarvis pushes for restructuring sell-off

When completed, the charge will result in a total reduction in net operating assets of its property division of approximately 145m euros (£101m).

P&O owns a 47.5% stake in HTC, the German property group that owns the buildings.

Under 2004 restated IFRS figures, P&O would have to increase its consolidated debt by 200m euros (£139m) and increase net operating assets by 105m euros (£73m). The sale of this property will negate both of these figures, however, it will write off shareholder loans provided to HTC, resulting in the £59m impairment charge.

Robert Woods, chief executive at P&O, said: ‘HTC is a sound development but has been our most challenging property project because of the poor market conditions in Germany. Although there is an up-front cost, we are pleased to have found a way of exiting the project while retaining some upside potential.

‘We will continue to withdraw from our property business.’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor