Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

23. Provisions

  Housing
maintenance
£m
Restructuring
£m
Other
£m
Total
£m
At 1 January 2008 38.5 33.6 14.5 86.6
Additional provision in the year 5.9 35.1 36.0 77.0
Utilisation of provision (15.0) (42.2) (3.4) (60.6)
Released (0.7) (5.2) (3.2) (9.1)
Changes in exchange rates 10.3 0.8 2.1 13.2
At 31 December 2008 39.0 22.1 46.0 107.1
Additional provision in the year 6.2 4.2 12.9 23.3
Utilisation of provision (7.8) (9.4) (8.0) (25.2)
Released (0.8) (0.2) (0.2) (1.2)
Transfers and Reclassification (24.5) (0.2) 24.7
Changes in exchange rates (3.0) (0.6) (1.6) (5.2)
At 31 December 2009 9.1 15.9 73.8 98.8
  £m
Amount due for settlement within one year 47.8
Amount due for settlement after one year 51.0
31 December 2009 98.8

The housing maintenance provision arises principally from warranties and other liabilities on housing sold. Whilst such warranties extend to a period of 10 years, payment of these costs is likely to occur within a period of two years. The Group restructuring provision relates to the continued reorganisation of the UK and US businesses following the merger with George Wimpey Plc in 2007. It is anticipated that the majority of this provision, which comprises redundancy costs and empty property costs will be utilised within six years.

Other provisions consist of a remedial work provision, provisions for legal claims and other contract-related costs. The remedial work provision covers various obligations, including aftercare at Springfield Environmental Limited which has a legal responsibility of a long term nature for the management of old, completed sites and provisions for losses on construction contracts. Also included in other provisions are amounts for legal claims and contract-related costs associated with various matters arising across the Group, the majority of which are anticipated to be settled within a three-year period.