Carphone Warehouse 2004 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2004 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

Notes to the Financial Statements continued
15Fixed asset investments continued
Acquisitions
a) Hutchison Telecommunications GmbH
On 2 June 2003, the Group acquired 100% of the issued share capital of Hutchison Telecommunications GmbH (‘HTG’), a mobile telecoms service
provider registered in Germany, for a gross consideration of £44.6m.
The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group:
Accounting Other
policy fair value Fair value
Book value alignments adjustments to Group
£’000 £’000 £’000 £’000
Fixed assets
Tangible 6,174 (175) – 5,999
Current assets
Stock 1,971 – – 1,971
Debtors 26,402 8,899 – 35,301
Cash 13,783 – – 13,783
Total assets 48,330 8,724 – 57,054
Creditors
Trade creditors (20,585) – – (20,585)
Other taxes (1,381) – – (1,381)
Accruals and deferred income (7,204) – – (7,204)
Provisions (5,643) (2,211) (302) (8,156)
Total liabilities (34,813) (2,211) (302) (37,326)
Net assets 13,517 6,513 (302) 19,728
Goodwill 24,911
Satisfied by cash 44,639
Net cash outflows in respect of the acquisition comprised:
£’000
Gross cash consideration 44,639
Cash acquired (13,783)
30,856
Accounting policy alignments relate to depreciation of fixed assets in line with Group policy, the deferral of subscriber acquisition costs and the
recognition of deferred tax liabilities. Other fair value adjustments relate to unrecorded potential liabilities.
HTG earned a profit after taxation of £13.5m in the 15 month period ended 27 March 2004 (year ended 31 December 2002 – £6.8m), of which
£4.1m arose in the period from 1 January 2003 to 1 June 2003. The summarised profit and loss account for the period from 1 January 2003
to 1 June 2003, shown on the basis of the accounting policies of HTG prior to the acquisition, is as follows:
Profit and loss account £’000
Tur nover 96,487
Cost of sales (78,569)
Gross profit 17,918
Operating expenses (14,005)
Operating profit 3,913
Net interest receivable 147
Profit on ordinary activities before taxation 4,060
Tax on profit on ordinary activities –
Profit on ordinary activities after taxation 4,060
All recognised gains and losses for the period are included in the profit and loss account.
36
www.cpwplc.com