Carphone Warehouse 2002 Annual Report Download - page 42

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40 The Carphone Warehouse Group PLC Annual Report 2002
Notes to the financial statements continued
13 Fixed asset investments (continued)
a. CMC
On 29 May 2001, the Group acquired 100% of the issued share capital of Communication des Mobiles Cellulaires SA (‘CMC’), a Telecoms
services business registered in France, for a gross cash consideration of £54.3m. The following table sets out the book values of the
identifiable assets and liabilities acquired and their fair value to the Group:
Book value Accounting policy Other fair value Fair value
alignments adjustments to Group
£’000 £’000 £’000 £’000
Fixed assets
Tangible 3,318 3,318
Current assets
Stock 375 375
Debtors 17,517 1,574 19,091
Cash 20,302 (7,033) 13,269
Total assets 41,512 (5,459) 36,053
Creditors
Trade creditors (19,551)7,033 (12,518)
Corporation tax (2,110) (2,110)
Other taxes (2,523) (2,449) (4,972)
Other creditors (9,048) (1,366) (10,414)
Provisions
Other provisions (2,510) (2,510)
Total liabilities (35,742) 7,033 (3,815) (32,524)
Net assets 5,770 1,574 (3,815) 3,529
Goodwill 50,745
Satisfied by cash 54,274
Net cash outflows in respect of the acquisition comprised:
£’000
Gross cash consideration 54,274
Cash acquired (13,269)
41,005
Accounting policy alignments relate to the recognition of deferred tax assets and cash book balances. Other fair value adjustments relate
principally to unrecorded potential liabilities.
CMC earned a profit after taxation of £2.9m in the period ended 30 March 2002 (year ended 31 March 2001 £10.3m, after exceptional gains of
£6.9m), of which £0.8m arose in the period from 1April 2001 to 29 May 2001. The summarised profit and loss account and statement of total
recognised gains and losses for the period from 1April 2001 to 29 May 2001, shown on the basis of the accounting policies of CMC prior to
the acquisition, are as follows:
Profit and loss account £’000
Turnover 12,084
Cost of sales (8,148)
Gross profit 3,936
Other operating expenses (2,827)
Operating profit 1,109
Net interest receivable 92
Profit on ordinary activities before taxation 1,201
Tax on profit on ordinary activities (400)
Profit on ordinary activities after taxation 801
All recognised gains and losses for the period are included in the profit and loss account.