Notes on The Accounts (Continued)
21. CAPITAL COMMITMENTS
Capital commitments outstanding at 30th June, 1998 not provided for in the accounts were as follows:-
The group
The company
1998
1997
1998
1997
$000's
$000's
$000's
$000's
Contracted for
Authorised but not contracted for
26,177
26,177
40,721
22. POST BALANCE SHEET EVENT
The Company's Franchise which expired on 31st August, 1998 was not renewed. As a result, the company has sold substantially all of its buses and related plant and equipment. In addition the company has incurred certain costs including severance payments to staff made redundant and provisions for the diminution in value of certain assets previously used in connection with the Franchise. These have been offset by the write-back of provisions no longer required.
The net effect of these, amounting to a charge of $7,454,000 has been treated as an adjusting post balance sheet event which is included in Exceptional Items, (note 4).
The revenue and profit from the Company's franchised bus operation for the years ended 30th June, 1997 and 1998 were as follows:
Revenue
Operating Profit
32
1998
1997
$000's
$000's
859,817
833,029
48,872
17,572