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Carphone Warehouse Group plc Annual Report 2012 71
13 Interests in joint ventures
Interests in joint ventures are as follows:
Country of 2012 2011
Business Principal activities incorporation interest interest
Best Buy Europe Retail, distribution, insurance, telecoms services England and Wales 50.0% 50.0%
Virgin Mobile France MVNO England and Wales 46.6% 47.1%
The Group’s interest in Virgin Mobile France reduced from 47.1% to 46.6% during the year ended 31 March 2012 following the sale of shares
tomanagement of Virgin Mobile France. 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:
Net assets
(liabilities) Goodwill Loans Total
2012 £m £m £m £m
Opening balance 453.6 102.9 35.7 592.2
Share of results (34.1) — — (34.1)
Loans repaid (net) — — (9.9) (9.9)
Share of other reserve movements 0.7 — — 0.7
Foreign exchange (11.9) —(1.5) (13.4)
Closing balance 408.3 102.9 24.3 535.5
Best Buy Europe 418.1 102.9 —521.0
Virgin Mobile France (9.8) —24.3 14.5
Closing balance 408.3 102.9 24.3 535.5
Net assets
(liabilities) Goodwill Loans Total
2011 £m £m £m £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
At 31 March 2011, Best Buy Europe had a £350m receivables financing arrangement provided by a number of banks. This facility was
supplemented by an RCF of £125m provided equally by the Company and Best Buy, and letters of support through which both shareholders
were committed to providing further funding to a maximum of £50m each.
In July 2011, Best Buy Europe secured a new £400m RCF from its core bank group. This facility matures in July 2015. Following this refinancing,
the receivables financing arrangement, the shareholder RCF and the letters of support were cancelled.
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.
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