|
2022 |
2021 |
|
€m |
€m |
At 1 January |
57.6 |
38.5 |
Additions |
6.2 |
38.5 |
Payments |
(22.3) |
(21.1) |
Lease remeasurement |
- |
(0.3) |
Lease interest expense recognised in period |
1.3 |
1.3 |
Currency adjustment |
(0.4) |
0.7 |
At 31 December |
42.4 |
57.6 |
|
|
|
Analysed as: |
|
|
Current liabilities |
11.7 |
20.1 |
Non-current liabilities |
30.7 |
37.5 |
|
42.4 |
57.6 |
The maturity profile of lease liabilities is set out below:
|
2022 |
2021 |
|
€m |
€m |
Committed lease obligations |
|
|
Within one year |
11.7 |
20.1 |
Between one and two years |
4.1 |
9.1 |
Between two and three years |
3.7 |
3.7 |
Between three and four years |
2.5 |
3.3 |
Between four and five years |
1.0 |
2.1 |
Between five and 10 years |
2.5 |
2.1 |
Greater than 10 years |
16.9 |
17.2 |
|
42.4 |
57.6 |
Outstanding lease terms vary from one month to eight years except in the case of leasehold land where the terms vary between 19 and 99 years. At 31 December 2022, the average incremental borrowing rate applying to lease liabilities was 3.2% (2021: 2.5%) for periods of between 3 months and 99 years. These rates were based on the incremental borrowing rate which in the case of lease liabilities recognised on application of IFRS 16 was estimated at 1 January 2019 and in all other cases at the date of commencement of the lease. The incremental borrowing rate is estimated as that rate of interest available to the Group for borrowings over a similar term as the obligation to acquire a similar asset. The Group’s obligations are secured by lessors’ title to the leased assets.
All lease contracts relating to land and property contain market review clauses. The leases for land and property in Dublin contain seven yearly upward only rent reviews based on market rates. The next review is due on 1 January 2024. The lease contract relating to land and property in Belfast includes an annual review based on UK Retail Price Inflation.
The above lease liabilities do not include any variable payments based on throughput of leased facilities, short term leases of less than one year or leases relating to low value assets. These are expensed as incurred and disclosed at note 9.
Related right-of-use assets of €41.4 million (2021: €57.2 million) are disclosed in note 14 to the Consolidated Financial Statements. Expenses of €3.3 million (2021: €4.3 million) relating to short-term leases, variable lease payments and leases of low-value assets were recognised in the income statement and are disclosed in note 9 to the Consolidated Financial Statements.