Carphone Warehouse 2012 Annual Report Download - page 68

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Carphone Warehouse Group plc Annual Report 201264
4 Non-Headline items continued
Best Buy UK closure
During the year Best Buy Europe closed its Best Buy UK business. While the 11 stores that had been opened had delivered positive
customer satisfaction scores, they did not have the national reach to achieve scale and brand economies.
iv) The Group’s share of the results of Best Buy UK have been excluded from Headline results in order to provide visibility of the performance
of the continuing business.
v) Total costs of closure of £146.8m have been recognised, against which a tax credit of £25.9m has been booked. These closure costs
areanalysed asfollows:
£m
Property exit costs 57.5
Employee redundancies and other employee‑related costs 10.7
Non‑cash asset write‑downs (net) 45.9
Other exit costs 32.7
Exceptional charge before tax 146.8
Tax credit (25.9)
Exceptional charge after tax 120.9
Group share 60.5
Other exit costs predominantly reflect stock write‑downs and contract exit costs.
Virgin Mobile France amortisation
vi) Amortisation of acquisition intangibles within Virgin Mobile France relates to the acquisition of Tele2 France in December 2009.
5 Employee costs and share-based payments
The aggregate remuneration recognised in the income statement in each year is as follows:
2012 2011
£m £m
Salaries and performance bonuses 3.1 3.9
Social security costs 2.0 0.7
Other pension costs 0.1 0.1
5.2 4.7
Share‑based payments (see below) 14.9 1.9
20.1 6.6
The average number of employees (including directors) during the year ended 31 March 2012 was 18 (2011: 18).
Compensation earned by key management, comprising the Board of Directors and senior executives, was as follows:
2012 2011
£m £m
Salaries 1.5 1.4
Performance bonuses 0.9 1.5
Share‑based payments 14.5 1.7
16.9 4.6
At 31 March 2011 the Group had made loans totalling £10.2m to key management (£7.3m to directors of the Company) in relation to the
Best Buy Europe VES, TalkTalk VES and a share gift made in December 2008. Loans of £0.3m in relation to the share gift were waived in
May 2011, and as a result of the Best Buy Mobile Disposal, loans and interest of £6.3m in relation to the Best Buy Europe VES were repaid.
At 31 March 2012, loans of £4.0m remain in respect of the TalkTalk VES (£2.9m to directors of the Company). Interest is charged on the
loans atmarket rates and interest of £0.4m (2011: £0.5m) has been recognised during the year ended 31 March 2012.
As detailed in note 5b, loans were made to employees of the Group in relation to the Carphone Warehouse 2010 LTIP. Within these loans
were loans of £0.7m made to key management.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED