Carphone Warehouse 2012 Annual Report Download - page 71

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Carphone Warehouse Group plc Annual Report 2012 67
6 Interest income, interest expense and investment income
Interest income is analysed as follows:
2012 2011
£m £m
Interest on cash and cash equivalents 1.0 0.8
Interest and other finance income from joint ventures 1.5 2.6
Other interest income 0.4 0.5
2.9 3.9
Interest expense is analysed as follows:
2012 2011
£m £m
Other interest expense 0.2 0.6
0.2 0.6
Investment income is analysed as follows:
2012 2011
£m £m
Consideration from the Best Buy Mobile Disposal 813.0 —
Income from minority investments 0.2 0.6
813.2 0.6
The Group received initial consideration of £813.0m for its interest in Best Buy Mobile in the form of a dividend. The dividend was received
in US dollars and hedged to convert it to £813.0m. The amount of the dividend received was US$1,303.4m which was exchanged for £813.0m
on 26January 2012.
7 Taxation
The tax (credit) charge comprises:
2012 2011
£m £m
Current tax:
UK corporation tax 0.7 1.2
Adjustments made in respect of prior years (0.2) —
0.5 1.2
Deferred tax:
Origination and reversal of timing differences (0.9) 0.2
Adjustments in respect of prior years 0.1 0.2
(0.8) 0.4
Total tax (credit) charge (0.3) 1.6
The principal differences between the tax (credit) charge and the amount calculated by applying the standard rate of UK corporation tax
of26% (2011: 28%) to profit before taxation are as follows:
2012 2011
£m £m
Profit before taxation 762.2 67.2
Profit before taxation at 26% (2011: 28%) 198.2 18.8
Adjustments in respect of prior years (0.1) 0.2
Items attracting no tax relief or liability (198.4) (17.4)
Total tax (credit) charge (0.3) 1.6
Items attracting no tax relief or liability relate primarily to the Group’s share of results of joint ventures and exceptional items associated
with the Best Buy Mobile Disposal. Taxation associated with the Group’s interests in joint ventures is recognised within their results.
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