The Shannon Airport Group Annual Report and Accounts 2024

Annual Report and Accounts | 2024

Annual Report and Accounts | 2024

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

Management considered the carrying value of property, plant and equipment at 31 December 2024, by reference to the estimated value in use of assets within the Airport CGU of €63,859,000 at that date, including consideration of whether any indicators exist that the conditions giving rise to the impairment have reversed. The value in use has increased as a result of the improvement in the airport’s performance post Covid-19 with an increase in passenger numbers driving improved cashflows. Management are satisfied that the impairment loss of €22,748,000 has reduced to nil and have reversed the impairment loss by this amount (Note 3). The reversal of the impairment is based on a reasonable scenario which showed headroom of €24,907,000. The scenario contains a number of key judgements and estimates including but not limited to the level of ongoing capital expenditure required to maintain the Airport in its current condition. This capital expenditure includes the future spending on the Group’s sustainability projects required by the Climate Action and Low Carbon Development Act 2015 as amended by the Climate Action and Low Carbon Development (Amendment) Act 2021. A change in a key judgement or estimate could result in a different conclusion. However, management is satisfied that the reversal of impairment of €22,748,000 is not likely to result in an impairment in the future. Property, plant & equipment include a number of hangars at the Airport which are reflected in Other Property and General Infrastructure. The hangar facilities are held to deliver essential services required within the Airport and the Group have accounted for these assets in accordance with the accounting policy in 1.9. Certain of the Group’s assets have been pledged as security against the Group’s overdraft facility and a secured loan respectively (Note 23). At 31 December 2024 the net carrying amount of these assets was €17,155,228 (2023: €13,896,256) .

11. PROPERTY, PLANT AND EQUIPMENT

Terminal Complexes €’000

Lands and Airfields €’000

Tourism Buildings €’000

Other Property and General Infrastructure €’000

Plant, Fixtures and Fittings €’000

Group Cost

Work in Progress €’000

Total €’000 7,687 (150) 126,291

At 1 January 2023

18,427 37,340

321

27,580

38,602

4,021 7,544

Additions Disposals

- -

- -

11

- -

132

- -

(150) 1,968

-

85

5,947

(740)

(7,260)

-

Transfers to completed assets

At 31 December 2023

18,512 18,512

43,287 43,287

332 332

26,840 26,840

40,552 40,552

4,305 4,305 6,469

133,828 133,828

At 1 January 2024

- -

- -

- - -

- -

-

6,469 (118)

Additions Disposals

(118) 4,674

-

542

47

73

(5,336)

-

Transfers to completed assets

19,054

43,334

332

26,913

45,108

5,438

140,179

At 31 December 2024

Accumulated Depreciation and Impairment Losses At 1 January 2023

13,852 22,983

311

13,816

20,303

- - - - - - - - - - - -

71,265

Charge for year

512

2,200

1

144

2,274 (134) 1,399 (342)

5,131 (134)

Disposals

-

-

- - -

-

Reclassification

1,798 (1,825)

(1,372)

-

Company

Reversal of impairment (Note 3)

(431)

(458)

(505)

(1,736)

-

-

20

-

-

20

Impairment loss

Plant, Fixtures and Fittings €’000

At 31 December 2023

15,731 22,900 15,731 22,900

332 332

12,083 12,083

23,500 23,500

74,546 74,546 10,091

Total €’000

At 1 January 2024 Charge for year

1,589

2,860

- - -

1,074

4,568 (111)

Cost At 1 January 2023

-

-

-

(111)

Disposals

141 132 (42) 231 231

141 132 (42) 231 231

(5,650)

(6,000)

(6,614)

(4,484) 23,473

(22,748)

Reversal of impairment (Note 3)

Additions Disposals

11,670 19,760

332

6,543

61,778

At 31 December 2024

At 31 December 2023

Net book value At 31 December 2024

At 1 January 2024

7,384 23,574

-

20,370

21,635

5,438

78,401

- -

- -

Additions Disposals

At 31 December 2023

2,781

20,387

-

14,757

17,052

4,305

59,282

231

231

At 31 December 2024

At 31 December 2022

4,575

14,357

10

13,764

18,299

4,021

55,026

Accumulated Depreciation At 1 January 2023

56 43

56 43

Management have considered the carrying value of property, plant and equipment at 31 December 2024 by reference to the estimated value in use of assets within the Airport cash generating unit (CGU), to determine whether there is any indication of impairment in accordance with the accounting policy in 1.10. The impairment test was performed on a value in use basis, with the value in use of Airport assets determined by calculating the net present value of estimated future cash flows arising from that income generating unit, discounted using a discount factor of 8.5% (2023: 9.5%). The relevant cash flows were derived from the approved Group 5 year rolling plan 2025-2029. In determining an asset’s recoverable amount the directors are required to make judgements, estimates and assumptions that impact on the carrying value of the property, plant and equipment. The estimates and assumptions used are based on historical experience, industry knowledge and other factors that are believed to be reasonable based on information available. In 2020, due to the significant impact of Covid-19 on the Airport’s business and projected cash flows, the property, plant and equipment in the Airport CGU was written down to its recoverable amount, resulting in an impairment loss of €24,484,000. €1,736,000 of this impairment loss was reversed at 31 December 2023.

Charge for year

Disposals

(38)

(38)

At 31 December 2023

61 61 76

61 61 76

At 1 January 2024 Charge for year

-

-

Disposals

137

137

At 31 December 2024

Net book value At 31 December 2024

94

94

170

170

At 31 December 2023

85

85

At 31 December 2022

88

89

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