Carphone Warehouse 2005 Annual Report Download - page 50

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The Carphone Warehouse Group PLC Annual Report 2005
Notes to the Financial Statements continued
15Fixed asset investments continued
Acquisitions
a) VarTec Telecom Europe Limited
On 15 December 2004, the Group acquired 100% of the issued share capital of VarTec Telecom Europe Limited, a fixed line telecommunications provider registered
in England and Wales, for a gross consideration of £5.8m.
The following table sets out the book values of the identifiable assets and liabilities acquired and their preliminary fair value to the Group:
Book Accounting policy Other fair value Fair value to
value alignments adjustments Group
£’000 £’000 £’000 £’000
Fixed assets
Tangible 8,566 – (4,367) 4,199
Current assets
Debtors 5,051 1,645 – 6,696
Cash 2,241 – – 2,241
Total assets 15,858 1,645 (4,367) 13,136
Creditors
Trade creditors (2,048) – – (2,048)
Other taxes (706) – – (706)
Other creditors (94) – – (94)
Accruals and deferred income (3,425) – – (3,425)
Provisions – – (3,607) (3,607)
Total liabilities (6,273) – (3,607) (9,880)
Net assets 9,585 1,645 (7,974) 3,256
Goodwill 2,521
Satisfied by cash 5,777
Net cash outflows in respect of the acquisition comprised:
£’000
Gross cash consideration 5,777
Cash acquired (2,241)
3,536
Accounting policy alignments relate to the recognition of deferred tax assets and provision for doubtful debts. Other fair value adjustments relate to the write
down of network equipment and other tangible fixed assets, a pre-acquisition commitment to the closure of part of a call centre in Germany, and to various
unrecorded liabilities.
46