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66 Carphone Warehouse Group plc Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
14 INTERESTS IN JOINT VENTURES
Interests in joint ventures are as follows:
Business Principal activities Country of incorporation
2011
interest
2010
interest
Best Buy Europe Retail, distribution, insurance, MVNO England and Wales 50.0% 50.0%
Virgin Mobile France MVNO England and Wales 47.1% 47.5%
The Group’s interest in Virgin Mobile France reduced from 47.5% at 31 March 2010 to 47.1% at 31 March 2011 following the issue of
shares during the year to management of Virgin Mobile France. Senior management of Virgin Mobile France also hold warrants that
give them the right to acquire up to an additional 8.5% of the issued share capital of the business, at a price based on the value of
existing shareholder funding and an additional amount which increases with the quantity of shares being acquired.
a) Group balance sheet interests
The Group’s interests in joint ventures are analysed as follows:
2011
Net assets
(liabilities)
£m
Goodwill
£m
Loans
£m
Total
£m
Opening balance 384.7 106.3 50.8 541.8
Share of results 66.4 – – 66.4
Loans repaid (net) – – (14.6) (14.6)
Share of other reserve movements 1.5 – – 1.5
Foreign exchange 1.0 (3.4) (0.5) (2.9)
Closing balance 453.6 102.9 35.7 592.2
Best Buy Europe 468.9 102.9 – 571.8
Virgin Mobile France (15.3) – 35.7 20.4
Closing balance 453.6 102.9 35.7 592.2
2010
Net assets
(liabilities)
£m
Goodwill
£m
Loans
£m
Total
£m
Opening balance 339.5 108.5 21.7 469.7
Share of results 38.5 – – 38.5
Loans provided (net) – – 29.8 29.8
Additions 2.6 – – 2.6
Foreign exchange 4.1 (2.2) (0.7) 1.2
Closing balance 384.7 106.3 50.8 541.8
Best Buy Europe 406.3 106.3 – 512.6
Virgin Mobile France (21.6) – 50.8 29.2
Closing balance 384.7 106.3 50.8 541.8
A revolving credit facility of £125m is provided to Best Buy Europe equally by the Company and Best Buy. At 31 March 2011 and
31March 2010 no amounts were drawn under this facility. The Company and Best Buy provide further financial support to Best Buy
Europe under a letter of support through which both companies are committed to providing further funding to a maximum of £50m
each. Prior to the Demerger, loans were provided by the Company to Best Buy Europe under a £475m RCF. Loans are provided to
Virgin Mobile France under a shareholder agreement; funding requirements are agreed between the shareholders on a regular
basis and are provided in proportion to each party’s shareholding.