Barclays 2006 Annual Report Download - page 221

Barclays PLC
Annual Report 2006 217
Financial statements
3
44 Acquisitions
The Group was involved in the following acquisitions in 2006:
Date
HomEq Servicing Corporation mortgage servicing business 01/11/06
Details of the net assets acquired and the consideration paid are set out below.
Carrying value Fair value
pre-acquisition adjustments 2006
£m £m £m
Assets
Cash and balances at central banks 10 – 10
Loans and advances to customers 153 – 153
Intangible assets 123 (9) 114
Other assets –11
Total assets 286 (8) 278
Liabilities
Deposits by customers 2–2
Other liabilities 18 – 18
Total liabilities 20 – 20
Net assets acquired 258
Goodwill –
Total 258
Acquisition cost
Cash paid 258
Total consideration 258
The acquired business contributed £5m to consolidated profit before tax for the period from acquisition date to 31st December 2006.
If the acquisition had occurred on 1st January 2006 (for 2005 on 1st January 2005), total Group income would have been £22,258m (2005:
£18,065m), profit before tax would have been £7,167m (2005: £5,295m), and basic earnings per share would have been 72.2p (2005: 54.5p).
The initial accounting for the business combination that took effect during the year has been determined only provisionally as a result of the
proximity of the acquisition to the year end.
Cash outflows in respect of acquisitions
2006
£m
Cash consideration in respect of acquisition 258
Cash and cash equivalents acquired (10)
Net cash outflow on acquisition 248
Cash paid in respect of acquisition of shares in Barclays Global Investors UK Holdings Limited 410
Cash paid in respect of acquisition of shares in Absa Bank Limited 22
Increase in investment in subsidiaries 432
45 Investment in Barclays Bank PLC
The investment in Barclays Bank PLC is stated in the balance sheet of Barclays PLC at a cost of £8,641m (2005: £8,462m). The increase of £179m
(2005: £135m) during the year represents the cost of additional shares.