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)

22. PROVISIONS

Provision for severance schemes €’000

Provision for remedial works €’000

Other provision €’000

Insurance provision €’000

Total €’000

21. DEFERRED INCOME – CAPITAL GRANTS

Group

2024 €’000 2,194 2,194

2023 €’000 2,173 2,173

At 1 January 2023

775

936

696

2,072 (259)

4,479

Provisions used during the year Provisions credited during the year

(392)

(550)

- -

(1,201)

Government grants

(67) 316 316 (19) 114 411

-

(5)

(72)

Current deferred income

386

696

1,808

3,206

At 31 December 2023

14,822 14,822 17,016

16,785 16,785 18,958

Government grants

386

696

1,808 (259)

3,206 (459)

At 1 January 2024

Non-current deferred income

(181)

-

Provisions used during the year Provisions charged during the year

Total deferred income

225 430

304

114

757

1,000

1,663

3,504

At 31 December 2024

2024 €’000

2023 €’000

At 31 December 2023 Current provisions Non-current provisions

Government grants At 1 January Grants received (a)

114 202 316

180 206 386

-

508

802

22,333

16,910

696 696

1,300 1,808

2,404 3,206

152

5,488

-

(65)

Grants repaid

Total provisions

22,485

At 31 December

22,333

Amortisation At 1 January Amortisation

At 31 December 2024 Current provisions Non-current provisions

3,375 2,094 5,469

1,677 1,698 3,375

166 245 411

337

-

471

974

93

1,000 1,000

1,192 1,663

2,530 3,504

At 31 December

430

Total provisions

18,958

15,233

Net book value at 1 January

Insurance provision Shannon Airport operates an insurance programme which recognises a provision for the excess associated with reported and potential claims. The amount provided at 31 December 2024 reflects management’s best estimate of the expenditure required to settle the obligations arising from these claims, based on experience and professional advice obtained. Provision for severance schemes A total provision of €1,599,000 was recorded at 31 December 2021 in respect of a voluntary severance scheme launched in 2018, and a further voluntary severance scheme which launched in 2020 following the onset of the Covid-19 crisis. The provision of €430,000 recorded at 31 December 2024 includes an amount of €205,000 which represents management’s best estimate of the expenditure required to meet the Group’s obligations in respect of its employees under these schemes. Payments totalling €180,000 were made in 2024 under existing schemes (2023: €550,000) . An additional provision of €225,000 was recorded at 31 December 2024 in respect of a severance scheme, this represents management’s best estimate of the expenditure required to meet the Group’s obligations under this scheme. Obligations totalling €337,000 are expected to be settled in 2025. Provision for remedial works As 31 December 2024 the Group has recorded a provision in respect of its commitment to pay a one-off contribution to Clare County Council and the Office of Public Works towards design and planning costs relating the Embankments surrounding the Shannon Airport campus. The amount represents management’s best estimate of the expenditure required to settle this commitment, the timing of which is not certain but not expected to be paid within the next 12 months. Other provision At 31 December 2024, the Group has recorded a provision for certain legal matters. This amount represents management’s best estimate of the expenditure required to settle the obligations. The ultimate outflow to settle the obligations could differ from the amount provided.

17,016

18,958

Net book value at 31 December

Capital grants received by the Group are recognised as deferred income and are amortised over the useful life of the assets to which they relate, from the date the assets are brought into use.

(a) The Group’s subsidiary company, Shannon Airport, received funding in respect of capital projects from the Department of Transport of €151,936 under the Regional State Airports Sustainability Programme during 2024 (2023: €5,488,000) .

98

99

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