Carphone Warehouse 2003 Annual Report Download - page 31

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29
The Carphone Warehouse Group PLC Annual Report 2003
6 Exceptional items continued
Effect of exceptional items on taxation and minority interests
The effect of exceptional items on the amounts charged to the profit and loss account for taxation and minority interests was as follows:
Tax on profit on
ordinary activities Minority interests
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Costs of operational reorganisation – (3,290) – –
Costs of fundamental reorganisation – (855) – (653)
Decrease in charge to profit and loss account – (4,145) – (653)
7 Net interest (payable) receivable
2003 2002
£’000 £’000
Interest receivable and similar income 6,511 5,711
Interest payable and similar charges:
Bank overdrafts and loans (7,191) (4,975)
Other loans (315) (394)
Interest payable and similar charges (7,506) (5,369)
Net interest (payable) receivable (995) 342
8 Tax on profit on ordinary activities
The tax charge comprises:
2003 2002
£’000 £’000
Current tax:
UK corporation tax 4,623 6,930
Overseas tax 4,011 2,778
8,634 9,708
Adjustments in respect of prior periods:
UK corporation tax (56) (2,538)
Overseas tax 429 –
Tota l current tax 9,007 7,170
Deferred tax:
Origination and reversal of timing differences 3,411 (1,008)
Tota l d eferred tax 3,411 (1,008)
Tota l tax on profit on ordinary activities 12,418 6,162
The differences between the total current tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax to
profit or loss on ordinary activities before tax is as follows:
2003 2002
£’000 £’000
Profit (loss) on ordinary activities before tax 34,487 (23,015)
Profit (loss) on ordinary activities before tax at 30% 10,346 (6,905)
Effect of:
Amortisation of goodwill 6,176 4,421
Exceptional items attracting no tax relief or liability 584 12,420
Other items attracting no tax relief or liability 5,415 4,314
Income taxed at lower rates and utilisation of tax losses (10,476) (5,550)
Adjustments in respect of prior periods 373 (2,538)
Other timing differences (3,411) 1,008
Current tax charge for the period 9,007 7,170
The Group earns its profits primarily in the UK; therefore the tax rate used for tax on profit or loss on ordinary activities is the standard rate for UK
corporation tax, currently 30%.
Deferred tax assets of approximately £22 million (2002 – £20 million) in respect of tax losses have not yet been recognised as there is insufficient
evidence that there will be suitable taxable profits against which these losses can be recovered.
Details of deferred tax assets and liabilities are provided in note 22.
9 Dividends
2003 2002
£’000 £’000
Final proposed dividend of 1.0p (2002 – Nil) per ordinary share 8,729 –