Carphone Warehouse 2016 Annual Report Download - page 133

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131
24 Acquisitions and Merger continued
b) Other information
Acquisition related costs (included within non-headline expenses) amount to £1 million (note 4). The contribution to revenue and
operating profit of acquisitions completed in the year was not material.
2014/15: All-share merger of Dixons and Carphone
On 6 August 2014, the Group completed an all-share merger of Dixons and Carphone after which the shareholders of Dixons
and Carphone each held 50% of Dixons Carphone on a fully diluted basis taking into account existing share options and award
schemes for both companies.
Under the terms of the Merger, Dixons shareholders received 0.155 of a new Dixons Carphone Share in exchange for each
Dixons share. In accordance with the criteria in IFRS 3 ‘Business Combinations’ it has been determined that Carphone
acquired Dixons.
The provisional fair values of identifiable assets and liabilities of Dixons as at the acquisition date were reported in the annual
report for the period ended 2 May 2015. In finalising the fair value of identifiable assets and liabilities, no changes have been
made to the provisional fair values.
25 Discontinued operations and assets held for sale
As reported at 2 May 2015, Virgin Mobile France and the Group’s retail operations in Germany, the Netherlands and Portugal
were treated as discontinued operations following the decision to exit these businesses. The assets and liabilities associated
with Germany, the Netherlands and Portugal were recognised as held for sale at 2 May 2015. The sale of operations in Germany
was completed on 5 May 2015, the Netherlands on 30 June 2015 and Portugal on 31 August 2015, whilst Virgin Mobile France
was sold on 4 December 2014.
a) Loss after tax – discontinued operations
The results of discontinued operations are comprised as follows:
Year ended 30 April 2016
Phone
House
Germany
£million
Phone
House
Netherlands
£million
Phone
House
Portugal
£million
Total
£million
Revenue
— 19 13 32
Expenses — (20) (16) (36)
Loss before tax
— (1) (3) (4)
Income tax — — — —
— (1) (3) (4)
(Loss) / profit on disposal (10) (6) 2 (14)
(10) (7) (1) (18)
The net loss on disposal recognised in the current year primarily relates to working capital adjustments agreed with acquirers,
adjustments to net assets disposed, the recycling of foreign currency translation reserves of discontinued operations and other
costs associated with the exits.
00_DC 2016 Annual Report.pdf 131 11/07/2016 18:34