Carphone Warehouse 2008 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2008 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

www.cpwplc.com 59
12 Goodwill and other intangible fixed assets (continued)
Acquisition intangibles are analysed as follows:
2008 2007
Customer Customer
Customer revenue share Customer revenue share
bases agreements Other Total bases agreements Other Total
£m £m £m £m £m £m £m £m
Opening balance 273.8 32.8 11.7 318.3 21.7 – 34.5 56.2
Acquisition of subsidiaries 1.5 – 0.5 2.0 286.1 34.7 13.6 334.4
Adjustments to contingent consideration ––––– – (18.0) (18.0)
Amortisation (57.2) (11.6) (6.4) (75.2) (34.0) (1.9) (18.4) (54.3)
Closing balance 218.1 21.2 5.8 245.1 273.8 32.8 11.7 318.3
Cost (gross carrying amount) 315.1 34.7 13.9 363.7 332.7 34.7 32.6 400.0
Accumulated amortisation (97.0) (13.5) (8.1) (118.6) (58.9) (1.9) (20.9) (81.7)
Closing balance 218.1 21.2 5.8 245.1 273.8 32.8 11.7 318.3
Customer bases relate primarily to AOL’s UK internet access business, which was acquired in December 2006. The valuation of customer bases is
derived from the discounted future cash flows expected from them, after a deduction for contributory assets.
Customer revenue share agreements again arose on the acquisition of AOL’s UK internet access business, and represent rights, subject to performance
criteria, to a share of transactional revenues generated by AOL access and TalkTalk customers on AOL sites. The valuation of these rights was again
derived from the discounted future cash flows expected from the agreement, after a deduction for contributory assets.
Other acquisition intangibles represent a licence to continue to use the AOL brand for a limited time period, valued using the relief from royalty method.
13Property, plant and equipment
Network
Freehold Short equipment
land and leasehold and computer Fixtures Motor
buildings costs hardware and fittings vehicles Total
£m £m £m £m £m £m
Cost
At 1 April 2007 71.2 78.3 272.6 162.1 3.6 587.8
Additions 8.2 26.5 131.1 31.8 0.7 198.3
Disposals (11.6) (2.0) (9.1) (12.3) (1.3) (36.3)
Acquisitions 0.1 0.6 0.4 0.1 – 1.2
Foreign exchange 0.1 4.5 5.1 14.2 – 23.9
At 29 March 2008 68.0 107.9 400.1 195.9 3.0 774.9
Depreciation
At 1 April 2007 (3.5) (29.8) (123.9) (91.2) (2.0) (250.4)
Charge for the period (0.7) (10.1) (46.7) (22.8) (0.8) (81.1)
Disposals 1.9 1.6 8.3 5.0 0.8 17.6
Foreign exchange – (1.3) (3.0) (8.4) – (12.7)
At 29 March 2008 (2.3) (39.6) (165.3) (117.4) (2.0) (326.6)
Net book value
At 29 March 2008 65.7 68.3 234.8 78.5 1.0 448.3
At 1 April 2007 67.7 48.5 148.7 70.9 1.6 337.4
Financial Statements