25.1 Leases as Lessee
The Group leases office buildings, cars and office equipment. The leases typically run for a period of five years for cars, five to 15 years for buildings and five years for office equipment. Lease payments are indexed depending on the contracts: for cars usually once a year; and for buildings after three years upon contract start date to reflect market rentals. For certain leases, the Group is restricted from entering into sub-lease arrangements.
Information about leases for which the Group is a lessee is presented below.
25.1.1 Right-of-use-assets
|
EUR 000 |
Cars |
Buildings |
Office equipment |
Total |
|
2022/2023 |
||||
|
Balance at 30 September 2022 |
38,988 |
81,073 |
228 |
120,289 |
|
Depreciation charge for the year |
-19,430 |
-11,109 |
-91 |
-30,630 |
|
Additions to right-of-use assets |
25,774 |
824 |
– |
26,598 |
|
Remeasurement |
402 |
7,923 |
– |
8,325 |
|
Modification |
-19 |
2,450 |
– |
2,431 |
|
Disposals |
-1,618 |
– |
– |
-1,618 |
|
Balance at 30 September 2023 |
44,097 |
81,161 |
137 |
125,395 |
|
2021/2022 |
||||
|
Balance as at 30 September 2021 |
38,839 |
91,152 |
318 |
130,309 |
|
Depreciation charge for the year |
-17,772 |
-11,874 |
-90 |
-29,736 |
|
Additions to right-of-use assets |
17,842 |
1,975 |
– |
19,817 |
|
Remeasurement |
1,223 |
-180 |
– |
1,043 |
|
Modification |
3 |
– |
– |
3 |
|
Disposals |
-1,147 |
– |
– |
-1,147 |
|
Balance as at 30 September 2022 |
38,988 |
81,073 |
228 |
120,289 |
25.1.2 Amounts recognized in profit or loss
|
EUR 000 |
2022/2023 |
2021/2022 |
|
Interest on lease liabilities |
-2,439 |
-1,976 |
|
Income from sub-leasing right-of-use assets presented in 'Other Income' |
1,860 |
1,912 |
|
Interest on lease receivables |
73 |
120 |
25.1.3 Amounts recognized in the statement of cash flows
|
EUR 000 |
2022/2023 |
2021/2022 |
|
Total cash outflow for leases |
29,453 |
29,830 |
25.1.4 Extension options
Some property leases contain extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. Where practicable, the Group seeks to include extension options in new leases to provide operational flexibility. The extension options held are exercisable only by the Group and not by the lessors. The Group assesses at the lease commencement date whether it is reasonably certain to exercise the extension options.
The Group reassesses whether it is reasonably certain to exercise the options if there is a significant event or significant changes in circumstances within its control.
As at 30 September 2023, the Group has determined based on a business decision that three of the extension options will be exercised, which resulted in an increase of lease liabilities of EUR 398 (30 September 2022: one of the extension options will be exercised, which resulted in an increase of lease liabilities of EUR 507).
25.2 Leases as Lessor
The Group leases out some of its leased buildings. The majority of the sub-leases are classified as operating leases from a lessor perspective, as they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Operational lease income recognized by the Group during 2022/2023 amounted to EUR 908 (2021/2022: EUR 1,492).
The following table sets out a maturity analysis of operational lease receivables, showing the undiscounted lease payments to be received after the reporting date.
|
EUR 000 |
2022/2023 |
2021/2022 |
|
Less than one year |
899 |
968 |
|
One to two years |
651 |
464 |
|
Two to three years |
510 |
90 |
|
Three to four years |
498 |
81 |
|
Four to five years |
498 |
69 |
|
More than five years |
446 |
69 |
|
Total |
3,502 |
1,741 |
One of the sub-leases classifies as financial lease and is included in the balance sheet as other financial assets amounting to EUR 3,788 (30 September 2022: EUR 6,238). The annual lease payments amount to EUR 345 (30 September 2022: EUR 540) for the remainder of the lease term (till 2035).
The following table sets out a maturity analysis of financial lease receivables, showing the undiscounted lease payments to be received after the reporting date.
|
EUR 000 |
2022/2023 |
2021/2022 |
|
Less than one year |
345 |
540 |
|
One to two years |
345 |
540 |
|
Two to three years |
345 |
540 |
|
Three to four years |
345 |
540 |
|
Four to five years |
345 |
540 |
|
More than five years |
2,504 |
3,778 |
|
Total undiscounted lease receivable |
4,229 |
6,478 |
|
Unearned finance income |
4,229 |
6,478 |
|
Net investment in the lease |
– |
– |
During 2022/2023, the Group recognized interest income on lease receivables of EUR 73 (2021/2022: EUR 120).