BT 2003 Annual Report Download - page 104

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18. Acquisitions and disposals continued
Disposal of subsidiaries and the demerger of mmO
2
In the year ended 31 March 2003, BT disposed of subsidiaries with net assets of £12 million. Consideration
amounted to £3 million resulting in a loss on disposal of £9 million.
The table below analyses the disposal of subsidiaries and the demerger of mmO
2
for the year ended
31 March 2002.
Year ended 31 March 2002
mmO
2
l
£m
Yell
m
£m
Other
£m
Total
£m
Net assets demerged or disposed of:
Fixed assets 20,459 467 211 21,137
Stocks 109 98 – 207
Debtors 1,381 400 19 1,800
Cash 121 21 7 149
Creditors: amounts falling due within one year (1,790) (153) (46) (1,989)
Creditors: amounts falling due after more than one year – (10) – (10)
Provisions (229) – – (229)
Intercompany loans (561) – – (561)
Goodwill previously written off to reserves – 9 44 53
Net assets disposed of 19,490 832 235 20,557
Profit (loss) on disposal – 1,128 (116) 1,012
Consideration 19,490 1,960 119 21,569
Cash – 1,859 119 1,978
Demerger distribution 19,490 – – 19,490
Loan notes –60 –60
Other –41 –41
Total 19,490 1,960 119 21,569
In addition £9 million deferred consideration was received during the year ended 31 March 2002 in settlement
of the disposals on 18 July 1999 of BT New Towns Cable and Westminster Cable Limited.
Amounts included in the cash flow statement for the year ended 31 March 2002 attributable to mmO
2
and
Yell and the results of mmO
2
and Yell included in the results for the 2002 financial year to the date of demerger
and disposal respectively were:
mmO
2
£m
Yell
£m
Net cash flow from operating activities 227 7
Capital expenditure 865 2
Decrease in cash in the year (262) (4)
Results of mmO
2
and Yell included to date of demerger/disposal:
Group turnover 2,665 171
Total operating (loss) profit (461) 33
(Loss) profit before taxation (569) 27
Taxation charge (24) (9)
(Loss) profit for the financial year (593) 18
l
On 19 November 2001 BT completed the demerger of mmO
2
, the group’s former mobile phone business in
Europe. mmO
2
consists of O
2
UK Limited (formerly BT Cellnet Limited), O
2
Communications (Ireland) Limited
(formerly Esat Digifone Limited), Telfort Mobiel BV, Viag Interkom GmbH & Co, Manx Telecom and Genie.
m
On 22 June 2001, BT completed the sale of the Yell Group. The Yell Group consisted of the Yellow Pages
division of British Telecommunications plc, Yellow Pages Sales Limited and Yellow Book USA Inc., and its
group undertakings.
Notes to the financial statements
BT Annual Report and Form 20-F 2003 103