Write-down of carrying value of assets
The Management Board of Apator SA announces that following the completion of the analysis of the main indications of the possibility of impairment of the carrying value of the non-current assets of the Apator Group ("the Group"), on October 11, 2022, the decision was made to make an impairment loss of the capitalized development work shown in the consolidated balance sheet of the Group, related to the indirect subsidiary George Wilson Industries Ltd ("GWi") based in the UK, in accordance with the provisions of IAS 36 "Impairment of Assets".
The write-down is related to an update of the financial projections prepared for GWi, which were affected by changes in the macroeconomic environment, including the effects of the pandemic, the impact of the war in Ukraine on the development of the gas metering sector, lower margins and current and planned volumes of products sold, as well as a revision of strategic plans for GWi. The write-down relates entirely to the Apator Group's Gas segment.
The Management Board of Apator SA estimates the impact on the consolidated result of Grupa Apator in the amount of GBP 1,976 thousand, i.e. approx. PLN 11 million according to the average exchange rate of the National Bank of Poland as of October 10, 2022. This amount will be included in the consolidated statement of the Group for the third quarter of 2022 in the item of other operating expenses. The Management Board of Apator SA indicates that the above impairment loss on the carrying value of assets is non-cash.
The Company cautions that the figures presented above are estimates and may differ from the results that will be published in the audited financial report for 2022.
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