Carphone Warehouse 2005 Annual Report Download - page 45

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6 Exceptional items
Exceptional items include the following operating and non-operating exceptional items:
2005 2004
Notes £’000 £’000
Costs of operational reorganisation (a) –(4,733)
Exceptional operating items –(4,733)
Loss on disposal of fixed asset investments (b) –(1,652)
Total exceptional items –(6,385)
(a) Costs of operational reorganisation
Following the acquisition of The Phone House Telecom GmbH (formerly Hutchison Telecommunications GmbH) (‘HTG’) in June 2003, the Group closed its support
centre in Munich, closed a further 15 retail stores and commenced the integration of the retail business with HTG. A provision of £4.7m was booked to cover the
cost of this reorganisation, which included the write down of tangible fixed assets.
(b) Loss on disposal of fixed asset investments
During the period ended 27 March 2004 the Group disposed of 50% of its interest in Wireless Frontiers, an independently managed wireless investment fund.
In exchange, the acquirer assumed the Group’s commitment to make further contributions to Wireless Frontiers. The disposal resulted in a net loss of £1.7m.
Effect of exceptional items on taxation
Exceptional items had no effect on the amounts charged to the profit and loss account for taxation in either period.
7Net interest payable
2005 2004
£’000 £’000
Interest receivable and similar income 5,903 2,120
Interest payable and similar charges:
Bank overdrafts and loans (10,588) (6,755)
Other loans (160) (223)
Interest payable and similar charges (10,748) (6,978)
Net interest payable (4,845) (4,858)
Notes to the Financial Statements continued www.cpwplc.com 41