Carphone Warehouse 2006 Annual Report Download - page 60

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Notes to the Financial Statements continued
14 Non-current asset investments continued
ii) Tele2 UK
On 16 December 2005, the Group acquired 100% of the issued share capital of Tele2 UK Communications Limited (Tele2 UK), a company registered in England
and Wales, for a gross cash consideration of £11.5m. Tele2 UK is involved in the provision of telecommunications services to residential customers.
The following table sets out the book values of the identifiable assets and liabilities acquired and their provisional fair value to the Group:
Book Fair value Fair value
value adjustments to Group
£’000 £’000 £’000
Non-current assets
Intangible assets – 1,978 1,978
Current assets
Trade and other receivables 6,077 (438) 5,639
Cash and cash equivalents 3,315 – 3,315
Total assets 9,392 1,540 10,932
Current liabilities
Trade and other payables (6,306) – (6,306)
Corporation tax liabilities (24) – (24)
Provisions – (2,353) (2,353)
Non-current liabilities (6,330) (2,353) (8,683)
Deferred tax liabilities – (538) (538)
– (538) (538)
Total liabilities (6,330) (2,891) (9,221)
Total assets and liabilities 3,062 (1,351) 1,711
Goodwill 9,822
Satisfied by cash 11,533
Net cash outflows in respect of the acquisition comprised:
£’000
Gross cash consideration 11,533
Cash acquired (3,315)
8,218
Fair value adjustments relate principally to:
•the recognition of acquisition intangibles, being customer bases with a value of £2.0m;
•provision for onerous contracts.
The Group’s results for the period reflect revenue from Tele2 UK of £10.1m and a profit before taxation of £1.4m.
The Carphone Warehouse Group PLC Annual Report 2006
56