Incidental items
Alliander’s results can be affected by incidental items and fair value movements. Alliander defines incidental items as items which in management’s opinion do not derive directly from the ordinary activities and/or whose nature and size are so significant that they must be considered separately to permit proper analysis of the underlying results. To qualify as incidental items, a lower limit of €10 million is generally applied.
Net incidental items and fair value movements in 2018 combined to give a gain of €73 million after tax (2017: charge of €3 million). The following table contains an overview of the reported figures and the figures excluding incidental items and fair value movements.
Reported figures and figures excluding incidental items and fair value movements
€ million | Reported | Incidental items and fair value movements | Excluding incidental items and fair value movements | |||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
Revenue | 1,920 | 1,797 | - | - | 1,920 | 1,797 |
Other income | 148 | 43 | 105 | - | 43 | 43 |
Total purchase costs, costs of subcontracted work and operating expenses | -1,404 | -1,367 | -3 | -4 | -1,401 | -1,363 |
Depreciation and impairment | -409 | -396 | - | - | -409 | -396 |
Own work capitalised | 241 | 228 | - | - | 241 | 228 |
Operating profit | 496 | 305 | 102 | -4 | 394 | 309 |
Finance income/(expense) | -46 | -43 | - | - | -46 | -43 |
Result from associates and joint ventures | 3 | 9 | - | - | 3 | 9 |
Profit before tax | 453 | 271 | 102 | -4 | 351 | 275 |
Tax | -119 | -68 | -29 | 1 | -90 | -69 |
Profit after tax from continuing operations | 334 | 203 | 73 | -3 | 261 | 206 |
Profit after tax from discontinued operations | - | - | - | - | - | - |
Profit after tax | 334 | 203 | 73 | -3 | 261 | 206 |
Other Income
(2018: €105 million gain, 2017: nil)
The incidental income relates to the sale of the subsidiary Allego in June 2018.
Total purchase costs, costs of subcontracted work and operating expenses
(2018: €4 million charge, 2017: €4 million charge)
The incidental expense in 2018 is made up of a gain of €5 million due to the impact of changes in the CLA and extra costs of €9 million due to organisational changes. In 2017, there were costs of €4 million for organisational changes.
Tax
(2018: €29 million charge, 2017: €1 million gain)
The tax charge in 2018 is mainly a consequence of the change in the deferred tax following the change in the rate of corporate income tax (as from 2020).