Financial Statements - Chemring Group PLC
Financial Statements - Chemring Group PLC
Financial Statements - Chemring Group PLC
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C H E M R I N GG R O U P P L CNotes to the <strong>Financial</strong> <strong>Statements</strong>- continued28. CONTINGENT LIABILITIESThe <strong>Group</strong>’s captive insurance company CHG Insurance Limited, based in Guernsey, has provided the following insurance coverfor the <strong>Group</strong> since 31 October 2001:■■the first £2.5 million of material damage and business interruption cover, subject to a maximum liabilityof £3.5 million in any one year;the first £1 million of public and products liability insurance for the <strong>Group</strong>’s products which are exportedto the US.Additional cover in respect of these risks is placed with external insurers.29. POST BALANCE SHEET EVENTThe <strong>Group</strong> disposed of the entire issued share capital of Kembrey Wiring Systems Limited on 8 November 2003. An analysis ofthe assets disposed of is shown below:£000Fixed assetsStockDebtorsCashCreditorsConsideration:CashDeferred consideration1041,0411,9073(1,155)1,9001,2156851,900Cash consideration of £1,200,000 was paid on completion, with a further £200,000 paid in January 2004. The balance of theconsideration of £500,000 is payable in two equal instalments in November 2004 and November 2005.As a consequence of the disposal, the <strong>Group</strong> agreed to pay £465,000 to the <strong>Chemring</strong> <strong>Group</strong> Staff Pension Scheme, with£125,000 paid in November 2003, £170,000 payable on 8 November 2004 and £170,000 payable on 8 November 2005. Inaccordance with FRS3 Reporting <strong>Financial</strong> Performance these amounts have not been recognised in the year ended31 October 2003 and will be recognised in future results.P 52