Cabcharge impairment of assets

The Australian Securities and Investments Commission (ASIC) noted the decision by ASX-listed Cabcharge Australia Limited (Cabcharge), announced on 6 February 2017, to record an impairment charge of $20.7 million on its 49% stake in UK-based CityFleet Network (CFN) and $7.9 million on its portfolio of taxi licence plates.

ASIC had previously made inquiries in relation to the assessment of the recoverable amount of the company's intangible assets and investment in CFN for the year ended 30 June 2016.

Cabcharge's announcement indicated that the impairment made against the taxi licence plates was required because taxi plate income is continuing to adjust following regulatory reforms announced by some States during 2016. Cabcharge also said that it had increased the risk weighted discount rate for its portfolio of taxi plate licences to reflect this continuing uncertainty on future income levels in those States. The impairment of its investment in CFN was said to reflect deterioration in CFN's trading profit in the period since August 2016.

We welcome your feedback

Hi there! We want to make this site as good as it can for you, the user. Please tell us what you would like to do differently and we will do our best to accommodate!

Protected by FormShield

We've updated our Privacy Statement, before you continue. please read our new Privacy Statement and familiarise yourself with the terms.