Carphone Warehouse 2007 Annual Report Download - page 53

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www.cpwplc.com
8 Taxation continued
No deferred tax asset has been recognised in respect of the remaining £136.9m (2006 – £146.1m) as there is insufficient evidence that there will be suitable
taxable profits against which these losses can be recovered. Included within unrecognised tax losses are amounts of £12.0m (2006 – £16.7m) that will expire
between 2014 and 2018 and £14.0m (2006 – £9.3m) that will expire between 2008 and 2013. Other losses may be carried forward indefinitely.
At 31 March 2007 the aggregate amount of temporary differences associated with the undistributed earnings of subsidiaries for which deferred tax liabilities have
not been recognised was £26.1m (2006 – £25.9m). No liability has been recognised in respect of these differences because the Group is in a position to control
the timing of their reversal and it is probable that they will not reverse in the foreseeable future.
Tax assets and liabilities at 31 March 2007 do not take into account the impact of the proposed reduction in the UK statutory rate of corporation tax from 30.0%
to 28.0% from 1 April 2008 as announced in the March 2007 Budget, as the relevant legislation was not substantively enacted at the balance sheet date.
9 Equity dividends
2007 2006
£’000 £’000
Final dividend for the period ended 2 April 2005 of 1.25p per ordinary share –11,005
Interim dividend for the period ended 1 April 2006 of 0.75p per ordinary share –6,438
Final dividend for the period ended 1 April 2006 of 1.75p per ordinary share 15,362 –
Interim dividend for the period ended 31 March 2007 of 1.00p per ordinary share 8,823 –
24,185 17,443
Proposed final dividend for the period ended 31 March 2007 of 2.25p per ordinary share 19,946
The proposed final dividend for the period ended 31 March 2007 is subject to shareholders’ approval at the Annual General Meeting and has not been included
as a liability in these financial statements.
The expected cost of the proposed final dividend for the period ended 31 March 2007 reflects the fact that the Group’s Employee Share Ownership Trust has
agreed to waive its rights to receive dividends (see note 24).
10 Reconciliation of Headline information to statutory information
2007 2006
Net profit for Net profit for
Operating Profit before the financial Operating Profit before the financial
EBITDA profit taxation period EBITDA profit taxation period
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Headline 293,972 149,474 123,115 105,450 242,490 141,778 136,069 109,399
Reorganisation costs
(see note 4)
Operating expenses before
accelerated amortisation ––––(22,288) (22,288) (22,288) (22,288)
Accelerated amortisation ––––– (12,957) (12,957) (12,957)
––––(22,288) (35,245) (35,245) (35,245)
Amortisation of
acquisition intangibles – (54,225) (54,225) (54,225) – (17,998) (17,998) (17,998)
Goodwill expense – (529) (529) (529) – (1,825) (1,825) (1,825)
– (54,754) (54,754) (54,754) – (19,823) (19,823) (19,823)
Taxation:
On reorganisation costs
(see note 4) ––––– – – 10,574
On amortisation of acquisition
intangibles
and goodwill expense –– – 16,267 – – – 5,636
– – – 16,267 – – – 16,210
Statutory 293,972 94,720 68,361 66,963 220,202 86,710 81,001 70,541
EBITDA represents earnings before interest, taxation, depreciation, amortisation and goodwill expense. Contribution represents EBITDA before support costs. EBIT
represents earnings before interest and taxation.
Headline information is provided because the Directors consider that it provides assistance in understanding underlying performance.
49
Financial Statements