Carphone Warehouse 2008 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 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 61
14Non-current asset investments (continued)
b) Acquisitions
The Group acquired a number of subsidiaries during the period for a net cash consideration of £6.8m, together with contingent deferred consideration of
£4.7m. These acquisitions resulted in provisional goodwill of £11.2m.
The following summary shows the net cash outflow on acquisitions during the period:
Gross cash Net cash
consideration Cash acquired outflow
£m £m £m
Current period acquisitions 8.3 (1.5) 6.8
Deferred consideration on AOL 61.5 – 61.5
Other deferred consideration 4.6 – 4.6
74.4 (1.5) 72.9
During the period, fair value adjustments in relation to the acquisition of AOL’s UK internet access business in December 2006 have been finalised. In
accordance with IFRS3 ‘Business Combinations’, changes arising from this finalisation process have been reflected in the balance sheet at 31 March
2007. The adjustments have resulted in a reduction of £12.5m in goodwill from £639.0m to £626.5m, an increase of £10.3m in deferred tax assets
from £51.6m to £61.9m and a decrease of £2.2m in current trade and other payables from £922.1m to £919.9m as at 31 March 2007.
c) Disposals
On 14 May 2007, the Group disposed of 62% of one of its French subsidiaries, The Phone House Services Telecoms SAS, for an initial cash
consideration of £11.1m, resulting in the disposal of £7.9m of goodwill. The remaining investment is now treated as an associate in the results of the
Group (see note 15). The Group announced on 20 March 2008 the disposal of its Swiss retail business and assets for a gross cash consideration
of £14.1m, resulting in the disposal of £6.2m of goodwill.
15Interests in joint ventures and associates
2008 2007
£m £m
Opening balance 1.4 –
Additions 17.0 11.3
Share of results for the period (6.1) (9.9)
Foreign exchange 1.3 –
Closing balance 13.6 1.4
Additions in the period ended 29 March 2008 reflected cash contributions of £12.1m and a non-cash contribution of £4.9m relating to the sale of 62%
of The Phone House Services Telecoms SAS (see note 14c).
Additions in the period ended 31 March 2007 reflected cash contributions of £8.3m and a non-cash contribution of £3.0m relating to the transfer of the
trade and assets of Omer Telecom SAS, a former subsidiary of the Group, into the Virgin Mobile France joint venture.
Interests in joint ventures and associates are as follows:
Business Principal activities 2008 Interest 2007 Interest
Best Buy Mobile US Distribution –50.0%
Virgin Mobile France MVNO 48.5% 48.5%
Geek Squad Europe Home technology support 50.0% 50.0%
The Phone House Services Telecoms SAS Facilities management 38.0% 100.0%
The nature of the Group’s agreement with Best Buy Co., Inc. in relation to Best Buy Mobile US was modified during the period, with the joint venture
arrangement being replaced by a right to receive a share of incremental profits based on certain milestones.
The Group’s share of the results, assets and liabilities of its joint ventures and associates for the period are as follows:
2008 2007
£m £m
Share of revenue 83.8 22.5
Share of costs and expenses (93.3) (36.6)
Share of loss before taxation (9.5) (14.1)
Share of taxation 3.4 4.2
Share of loss after taxation (6.1) (9.9)
Financial Statements