Restructuring

Restructuring costs of €8.1m were incurred in the current financial year. These included severance costs of €6.8m, of which €4.9m was incurred with respect to the restructuring of the Group as a consequence of the COVID-19 pandemic and €1.9m arose as a consequence of the optimisation of the delivery networks in England and Scotland. The Group also incurred additional costs of €2.0m with respect to the optimisation of the delivery networks in England and Scotland which was offset by a credit of €0.7m relating to the profit on disposal of a property as a direct consequence of the optimisation project. €6.2m of these costs were paid during the year with €2.0m outstanding at year end.

Dilapidation

The Group has a dilapidation provision of €3.8m at 28 February 2021 (FY2020: €5.5m). The Group’s dilapidation provision at 28 February 2021 is with respect to dilapidation costs for leased depots of €3.5m (FY2020: €5.2m) and leased fleet of €0.3m (FY2020: €0.3m).

Other

Other provisions carried forward from FY2020 relate to provisions for various legal claims, a provision for an onerous trade contract and a provision for the Group’s exposure to employee and third-party insurance claims. Under the terms of employer and public liability insurance policies, the Group bears a portion of the cost of each claim up to the specified excess. The provision is calculated based on the expected portion of settlement costs to be borne by the Group in respect of specific claims arising before the Balance Sheet date.

The amount charged in the current financial year, is primarily in respect of an increase in a provision against legal disputes and a provision with respect to lost kegs. The amount released during the year relates to a release of a legal provision which ultimately was not required and the release of an element of a provision for an onerous trade contract on exit of that contract.