Carphone Warehouse 2004 Annual Report Download - page 40

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Notes to the Financial Statements continued
38
www.cpwplc.com
15Fixed asset investments continued
d) E2Save.com Limited
On 1 January 2004, the Group acquired 100% of the issued share capital of E2save.com Limited, a company registered in England, for an initial
gross consideration of £1.4m, with a further contingent deferred consideration of up to £3.3m payable over two years.
The following table sets out the book values of the identifiable assets and liabilities acquired and their fair value to the Group:
Accounting
policy Fair value
Book value alignments to Group
£’000 £’000 £’000
Fixed assets
Tangible 489 (131) 358
Current assets
Stock 484 (100) 384
Debtors 591 – 591
Total assets 1,564 (231) 1,333
Creditors
Trade creditors (988) (73) (1,061)
Other taxes (180) (21) (201)
Accruals and deferred income (232) – (232)
Total liabilities (1,400) (94) (1,494)
Net assets (liabilities) 164 (325) (161)
Goodwill 4,813
4,652
Satisfied by
Cash 1,377
Deferred consideration 3,275
4,652
Net cash outflows in respect of the acquisition comprised:
£’000
Gross cash consideration 1,377
Accounting policy alignments relate to the revaluation of fixed assets and provision for slow moving stock and unrecorded liabilities.
e) Other acquisitions
In April 2003 the Group acquired the mobile customer base of J Sainsbury PLC and reached an agreement to provide mobile and fixed line services
to its customers. Under the terms of the agreement, a net cash consideration of £1.5m was paid, with a further contingent deferred consideration of
up to £4.5m payable in instalments over a three year period, giving rise to goodwill of £6.0m.
In July 2003, the Group paid £5.0m deferred consideration in respect of Opal Telecom plc, a fixed line telecommunications provider acquired in
November 2002.
In addition, the Group made a number of other acquisitions for a gross cash consideration of £0.6m and contingent deferred consideration of up to
£1.2m payable over the next two years. The other acquisitions resulted in goodwill of £1.0m. No cash was acquired through these transactions.