Vodafone 2000 Annual Report Download - page 38

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Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000
36
3 Disposal of fixed asset investments
The profit on disposal of fixed asset investments arose primarily from the disposal of the Group’s 17.24% shareholding in E-Plus Mobilfunk
GmbH, the disposal of the Group’s 20% shareholding in a UK service provider, Martin Dawes Telecommunications Limited, and the disposal of
the Group’s 50% shareholding in Comfone AG in Switzerland. The disposal of E-Plus was in accordance with an undertaking given to the
European Commission as a pre-condition to its approval of the merger with AirTouch Communications, Inc.
The profit on disposal of fixed asset investments in 1999 arose from the reduction in the Group’s interest in Globalstar from 5.2% to 3.0%,
the profit on disposal of the Group’s French service provider business and an adjustment to the profits realised in relation to business
disposals in 1998 following finalisation of the relevant completion accounts.
4Net interest payable
2000 1999
£m £m
Parent and subsidiary undertakings
Interest receivable and similar income (55) (14)
–––––––– ––––––––
Interest payable and similar charges
Bank loans and overdrafts 214 4
Other loans 174 86
Exceptional finance costs 17 –
–––––––– ––––––––
405 90
–––––––– ––––––––
Group net interest payable 350 76
–––––––– ––––––––
Share of joint ventures
Interest payable and similar charges 3–
–––––––– ––––––––
3–
–––––––– ––––––––
Share of associated undertakings
Interest receivable and similar income (3) –
Interest payable and similar charges 51 18
–––––––– ––––––––
48 18
–––––––– ––––––––
Share of joint ventures and associated undertakings net interest payable 51 18
–––––––– ––––––––
The exceptional finance costs were incurred in restructuring the Group’s borrowing facilities in relation to the acquisition of Mannesmann AG.
5 Tax on profit on ordinary activities
2000 1999
£m £m
United Kingdom
Corporation tax charge at 30% (1999 – 31%) 117 164
Transfer to deferred taxation 11 5
–––––––– ––––––––
128 169
–––––––– ––––––––
International
Current tax 691 83
Transfer to deferred taxation (134) –
–––––––– ––––––––
557 83
–––––––– ––––––––
685 252
–––––––– ––––––––
Parent and subsidiary undertakings 494 241
Share of joint ventures (57) -
Share of associated undertakings 248 11
–––––––– ––––––––
685 252
–––––––– –––––––
There are no tax charges attributable to the profit on disposal of fixed asset investments in the year (1999 – £2m).
The increase in the effective tax rate for the year ended 31 March 2000 is primarily the result of the higher tax rates attributable to the former
AirTouch operations, whose results have been included for the nine month period following merger completion on 30 June 1999.
Notes to the Consolidated Financial Statements continued