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Vodafone Group Plc Annual Report & Accounts and Form 20-F 2003 109
On 13 March 2003, Vodafone UK acquired Cellular Operations Limited, a service provider based in the UK. This transaction will enable the UK business to
improve its control over its customer base and distribution network.
Fair value of
assets/(liabilities) Goodwill
Consideration acquired capitalised
£m £m £m
Vizzavi(1) 91 32 59
Cellular Operations(1) 52 (45) 97
Japan Telecom and the J-Phone Group(2) –44 (44)
Other 725
150 33 117
Notes:
(1) No significant adjustments were made for fair values as compared with book values at acquisition. All fair values are provisional and may be subject to
adjustment in the year ending 31 March 2004.
(2) In accordance with FRS 7, necessary adjustments to the provisional fair value and the corresponding adjustment to purchased goodwill can be made in
the year following acquisition. The adjustment to the fair value of Japan Telecom and the J-Phone Group was in relation to the tax balances acquired
and reduced the value of goodwill from £1,205m to £1,161m.
Acquisitions for the year ended 31 March 2002
Unaudited pro forma summary financial information
The following unaudited pro forma summary financial information presents the Group’s consolidated results of operations for the year ended 31 March 2002
and the year ended 31 March 2001 as if the acquisitions of Japan Telecom, the J-Phone Group, and lusacell all took place on 1 April 2000, the first day of
the financial accounting period presented.
Pro forma financial information for the year ended 31 March 2001 was derived from the Group’s consolidated financial results for the year then ended, the
unaudited financial results of Japan Telecom and the J-Phone Group for the period from 1 April to 11 October 2001 and the unaudited financial results of
lusacell. The pre-acquisition results for Vodafone Ireland are not included in the consolidated results because results are not available for the period prior to
acquisition on 15 May 2001.
The financial statements of the acquired entities have been adjusted to conform materially to the Group’s accounting policies under UK GAAP. The pro forma
merger adjustments include assumptions that the Group’s management believe to be reasonable. The pro forma results are not necessarily indicative of
those that would have actually occurred had these transactions taken place at the beginning of the periods presented.
2002 2001
£m £m
Turnover 28,610 24,987
Net loss (15,986) (10,293)
Basic loss per ordinary share (23.52)p (16.76)p