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Interim results for the 26 weeks ended 30 July 2011

 

15 September 2011

 

Notes to the condensed consolidated financial statements (UNAUDITED)

for the 26 weeks ended 30 July 2011

15. Contingent assets and liabilities

Kingfisher plc has an obligation to provide a bank guarantee for £50m (2010/11: £50m) to the liquidators of Kingfisher International France Limited in the event that Kingfisher plc's credit rating falls below 'BBB'. The obligation arises from an indemnity provided in June 2003 as a result of the demerger of Kesa Electricals. At 29 January 2011 the amount was £50m.

A guarantee of £58m (€66m) (2010/11: £55m) denominated in Euros has been provided to the Italian tax authorities in respect of a tax credit. This has been covered by a guarantee for the term of the contingent liability. At 29 January 2011 the amount was £57m.

The Group has arranged for certain bank guarantees to be provided to third parties in the ordinary course of business, which if realised are not expected to result in a material liability to the Group.

The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are considered likely to arise on the basis of current information and legal advice.