Barclays 2007 Annual Report Download - page 196

Notes to the accounts
For the year ended 31st December 2007
194 Barclays PLC Annual Report 2007
20 Investment in associates and joint ventures
Share of net assets
Associates Joint ventures Total
2007 2006 2007 2006 2007 2006
£m £m £m £m £m £m
At beginning of year 74 427 154 119 228 546
Share of results before tax 35 63 10 (6) 45 57
Share of tax (2) (10) (1) (1) (3) (11)
Share of post-tax results 33 53 9(7) 42 46
Dividends paid –(17) –––(17)
New investments 728715 9
Acquisitions 56 51 150 102 206 153
Disposals (47) (404) (72) (72) (119) (476)
Exchange and other adjustments (33) (38) 38 55(33)
At end of year 90 74 287 154 377 228
Goodwill included above:
Associates Joint ventures Total
2007 2006 2007 2006 2007 2006
£m £m £m £m £m £m
Cost
At beginning of year 1122 40 83 41 205
Acquisitions ––––––
Disposals (1) (121) (16) –(17) (121)
Transfer ––3(43) 3(43)
At end of year –127 40 27 41
The fair value of the Group’s investment in Ambit Properties Limited, an associate listed on the Johannesburg Stock Exchange, is £42m.
Disposal of associates and joint ventures
On 29th June 2007 and 2nd July 2007, the Group disposed of its investment in Gabetti Property Solutions for cash consideration, net of transaction costs
of £13m, which after deducting the Group’s share of its net assets on the dates of disposal, resulted in a profit of £8m.
On 24th September 2007, the Group disposed of its investment in Intelenet Global Services for a cash consideration, net of transaction costs of £22m,
which, after deducting the Group’s share of its net assets on the date of disposal, resulted in a profit of £13m.
Summarised financial information for the Group’s associates and joint ventures is set out below:
2007 2006
Joint Joint
Associates ventures Associates ventures
£m £m £m £m
Property, plant and equipment 588 632 599 142
Financial investments 239 8 42
Trading portfolio assets ––1–
Loans to banks and customers 516 2,372 1,378 797
Other assets 1,387 314 541 199
Total assets 2,730 3,326 2,523 1,140
Deposits from banks and customers 1,515 2,189 1,421 769
Trading portfolio liabilities ––1–
Other liabilities 902 458 887 187
Shareholders’ equity 313 679 214 184
Total liabilities 2,730 3,326 2,523 1,140
Net income 528 340 538 178
Operating expenses (404) (292) (334) (178)
Profit before tax 124 48 204 –
Profit after tax 104 40 186 (2)
The amounts included above, which include the entire assets, liabilities and net income of the investees, not just the Group’s share, are based on accounts
made up to 31st December 2007 with the exception of certain undertakings for which the amounts are based on accounts made up to dates not earlier
than three months before the balance sheet date.
Associates and joint ventures in 2007 includes £1,728m (2006: £1,525m) of assets, £1,537m (2006: £1,380m) of liabilities and £18m (2006: £25m) of
profit after tax in associates and joint ventures within the Absa Group.
The Group’s share of commitments and contingencies of its associates and joint ventures is £6m (2006: £nil).