Carphone Warehouse 2005 Annual Report Download - page 59

27Analysis of cash flows continued
f) Analysis of changes in net debt
At 27 March Cash Currency At 2 April
2004 flows translation 2005
£’000 £’000 £’000 £’000
Cash at bank and in hand 72,813 (31,525) 288 41,576
Overdrafts (1,175) (21,021) (28) (22,224)
71,638 (52,546) 260 19,352
Debt due within one year (15,099) (34,668) (3) (49,770)
Debt due after more than one year (107,916) 11,802 (2,380) (98,494)
Net debt (51,377) (75,412) (2,123) (128,912)
g) Reconciliation of net cash inflow to movements in net debt
2005 2004
£’000 £’000
(Decrease) increase in cash in the period (52,546) 36,521
Cash inflow from increase in loans (22,866) (95,668)
Change in net debt (75,412) (59,147)
Currency translation (2,123) 4,948
Movement in net debt in the period (77,535) (54,199)
Net (debt) funds brought forward (51,377) 2,822
Net debt carried forward (128,912) (51,377)
h) Acquisitions
Companies acquired in the period contributed £2.8m to the Group’s net operating cashflows, paid £0.8m in respect of net returns on investments and servicing
of finance, and utilised £0.3m for capital expenditure.
28 Commitments under operating leases
The Group’s annual commitments under non-cancellable operating leases, all of which relate to land and buildings, are as follows:
2005 2004
£’000 £’000
Operating leases which expire:
Within one year 9,790 7,558
In two to five years 17,145 13,948
After five years 34,143 29,325
61,078 50,831
29Capital commitments
2005 2004
£’000 £’000
Expenditure contracted, but not provided for in the financial statements of the Group 10,371 6,564
30 Pension arrangements
The Group provides various pension schemes for the benefit of a significant number of its employees:
Defined contribution schemes
The Group operates a number of defined contribution schemes for which the cost for the period was £1.9m (2004 – £1.7m).
Defined benefit schemes
On 5 April 2000 the Group commenced the winding up of a defined benefit pension scheme. Based on actuarial advice, the assets of the scheme are anticipated
to be sufficient to meet the levels required by the Government’s Minimum Funding Requirements calculations. On completion of the winding up of the scheme, the
Group will retain no obligations in relation to the funding of scheme benefits.
31 Contingent liabilities
We are still aware that European VAT authorities continue to investigate the recovery of VAT in the industry for trading activities conducted prior to April 2003. Having
undertaken a detailed internal investigation and taken advice, we continue to believe that we have no financial exposure to this issue within the financial statements.
32 Related party transactions
On 29 March 2005, G Roux de Bezieux, a Director of the Company, acquired 5% of the issued share capital of Omer Telecom SAS (‘Omer’), a subsidiary of the
Group, which was set up to develop virtual networks in the French market. G Roux de Bezieux was given an option to invest up to 1 million Euros for 20% of
the shares in Omer and has an option to increase his stake by up to a further 20% depending on Omer’s future business performance.
The investment does not require the consent of the Company’s shareholders either under the Companies Act 1985 or the Listing Rules or otherwise, and in particular
falls within the exemptions set out in Chapter 11 of the Listing Rules in relation to transactions with related parties. The investment has however been approved by
the Company’s Board of Directors and Remuneration Committee.
Notes to the Financial Statements continued www.cpwplc.com 55