Carphone Warehouse 2006 Annual Report Download - page 53

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7 Interest payable and receivable
Interest payable is analysed as follows:
2006 2005
£’000 £’000
Interest on bank loans and overdrafts 13,307 9,736
Amortisation of fees on bank facilities 209 852
Other interest payable 283 160
13,799 10,748
Interest receivable is analysed as follows:
2006 2005
£’000 £’000
Interest on cash and cash equivalents 928 1,050
Profit on disposal of available-for-sale investments 5,953 3,067
Movements in the fair value of forward currency contracts 247 –
Income from forward currency contracts 769 998
Other interest receivable 193 788
8,090 5,903
8 Taxation
The tax charge comprises:
2006 2005
£’000 £’000
Current tax:
UK corporation tax 8,384 17,611
Overseas tax 16,008 8,770
24,392 26,381
Adjustments in respect of prior periods:
UK corporation tax (5,757) (6,801)
Overseas tax 3,440 (1,499)
Total current tax 22,075 18,081
Deferred tax:
Origination and reversal of timing differences (9,075) (48)
Adjustments in respect of prior periods (2,540) –
Total deferred tax (11,615) (48)
Total tax charge 10,460 18,033
The total tax charge includes a credit of £10.6m (2005 – £nil) in respect of reorganisation costs recognised in the period (see note 4). The tax charge relating to
Headline earnings (see note 10) in the period is £26.7m (2005 – £19.4m), representing an effective tax rate of 19.6% (2005 – 19.3%). The tax charge relating to
statutory earnings in the period is £10.5m (2005 – £18.0m) representing an effective tax rate of 12.9% (2005 – 19.6%).
The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax of 30% to
profit before taxation are as follows:
2006 2005
£’000 £’000
Profit before taxation 81,001 91,939
Profit before taxation at 30% 24,300 27,582
Items attracting no tax relief or liability 4,945 9,907
Use of tax losses brought forward and income taxed at lower rates (12,961) (11,156)
Adjustments in respect of prior periods (4,857) (8,300)
Other timing differences not recognised in deferred tax (967) –
Total tax charge 10,460 18,033
Notes to the Financial Statements continued www.cpwplc.com 49
Financial Statements