The key assumptions used in the value in use calculations were the pre-tax discounts rate applied (13%) and growth assumptions. Sales forecasts and their corresponding costs for the Group in relation to the business applications for the five-year period ending 31 January 2026 are likely to increase by 12% p.a. overall. No impairment is required as no individual asset has a higher carrying value than its value in use.
|
Goodwill £'000 |
Brands £’000 |
Customers and related contracts £’000 |
Software £’000 |
Development costs £’000 |
Website costs £’000 |
Intellectual property £’000 |
Total £’000 |
|
|
Cost |
||||||||
|
At 1 February 2019 |
16,161 |
232 |
2,843 |
4,421 |
15,012 |
30 |
66 |
38,765 |
|
Arising on acquisition |
1,338 |
226 |
1,847 |
2,164 |
- |
- |
- |
5,575 |
|
Additions |
- |
- |
- |
- |
2,188 |
- |
- |
2,188 |
|
Effect of foreign exchange |
(208) |
(6) |
(111) |
(98) |
(268) |
- |
- |
(691) |
|
At 31 January 2020 |
17,291 |
452 |
4,579 |
6,487 |
16,932 |
30 |
66 |
45,837 |
|
Accumulated impairment and amortisation |
||||||||
|
At 1 February 2019 |
11,533 |
165 |
2,754 |
3,850 |
10,232 |
30 |
7 |
28,571 |
|
Amortisation |
- |
40 |
433 |
385 |
1,197 |
- |
3 |
2,058 |
|
Impairment |
- |
- |
- |
- |
111 |
- |
- |
111 |
|
Effect of foreign exchange |
(170) |
(1) |
(74) |
(50) |
(166) |
- |
(2) |
(463) |
|
At 31 January 2020 |
11,363 |
204 |
3,113 |
4,185 |
11,374 |
30 |
8 |
30,277 |
|
Net book amount at 31 January 2020 |
5,928 |
248 |
1,466 |
2,302 |
5,558 |
- |
58 |
15,560 |
Impairment tests for goodwill
Goodwill is assessed for the Group as a whole as the Group operates with one segment and one CGU. The Group has moved from two CGUs to one as the Group now manages its operations under one global strategy and the European acquisition is now fully integrated into the business. All aspects of the business are focusing now on growing recurring revenue of repeatable solutions using technology that will be deployed globally under a single strategy. Products developed by regional development teams are marketed globally.
