Carphone Warehouse 2004 Annual Report Download - page 35

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The Carphone Warehouse Group PLC Annual Report 2004
33
7Net interest payable
2004 2003
£’000 £’000
Interest receivable and similar income 2,120 6,511
Interest payable and similar charges:
Bank overdrafts and loans (6,755) (7,191)
Other loans (223) (315)
Interest payable and similar charges (6,978) (7,506)
Net interest payable (4,858) (995)
8 Tax on profit on ordinary activities
The tax charge comprises:
2004 2003
£’000 £’000
Current tax:
UK corporation tax 11,144 4,623
Overseas tax 3,247 4,011
14,391 8,634
Adjustments in respect of prior periods:
UK corporation tax 1,677 (56)
Overseas tax (2,088) 429
Total current tax 13,980 9,007
Deferred tax:
Origination and reversal of timing differences 2,803 3,411
Total deferred tax 2,803 3,411
Total tax on profit on ordinary activities 16,783 12,418
The differences between the total current tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax
to profit on ordinary activities before tax are as follows:
2004 2003
£’000 £’000
Profit on ordinary activities before tax 44,487 34,487
Profit on ordinary activities before tax at 30% 13,346 10,346
Effect of:
Amortisation of goodwill 6,984 6,176
Exceptional items attracting no tax relief or liability 1,916 584
Other items attracting no tax relief or liability 7,778 5,415
Use of tax losses brought forward and income taxed at lower rates (12,830) (10,476)
Adjustments in respect of prior periods (411) 373
Other timing differences (2,803) (3,411)
Current tax charge for the period 13,980 9,007
The Group earns its profits primarily in the UK; therefore the tax rate used for tax on profit on ordinary activities is the standard rate for UK
corporation tax, currently 30%.
Deferred tax assets of approximately £27 million (2003 – £22 million) for tax losses have not yet been recognised as there is insufficient evidence
that there will be suitable taxable profits against which these losses can be recovered.
Details of deferred tax assets and liabilities are provided in note 23.
9Equity dividends
2004 2003
£’000 £’000
Interim dividend paid of 0.4p (2003 – Nil) per ordinary share 3,500 –
Final dividend proposed of 0.9p (2003 – 1.0p) per ordinary share 7,869 8,729
11,369 8,729
10 Reconciliation of headline information to statutory information
2004 2003
Operating Profit Operating Profit
EBITDA profit before tax EBITDA profit before tax
£’000 £’000 £’000 £’000 £’000 £’000
Headline 122,831 81,147 76,289 89,990 58,013 57,018
Amortisation of goodwill – (25,417) (25,417) – (20,585) (20,585)
Exceptional items (see note 6) (4,733) (4,733) (6,385) – – (1,946)
Statutory 118,098 50,997 44,487 89,990 37,428 34,487
EBITDA represents earnings before interest, taxation, depreciation and amortisation of goodwill. Contribution represents EBITDA before allocation of
support costs.