Carphone Warehouse 2013 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2013 Carphone Warehouse annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88

ANNUAL REPORT 2013 CARPHONE WAREHOUSE GROUP PLC 63
BUSINESS REVIEW GOVERNANCE FINANCIAL STATEMENTS
4 NONHEADLINE ITEMS continued
Exceptional items within joint ventures are further analysed as follows:
2013 2012
£m £m
CPW Europe reorganisation costs (25.1) —
CPW Europe non-cash asset write-downs (94.1) —
Costs associated with the Best Buy Mobile Disposal —(28.4)
Closure costs of Best Buy UK —(146.8)
Tax 12.3 20.4
(106.9) (154.8)
Group share (53.4) (77.4)
The operating results of discontinued businesses within joint ventures for the year ended 31 March 2012 are further analysed as follows:
2012
£m
Best Buy Mobile
EBIT 45.0
Tax (11.7)
33.3
Best Buy UK
EBIT (72.5)
Tax 19.5
(53.0)
Group share (9.8)
a) BEST BUY EUROPE
CPW EUROPE REORGANISATION COSTS
ii) During the year, CPW Europe undertook a review of its UK and group operations, with a view to simplifying group functions andgiving
more autonomy and accountability to individual business units. CPW Europe also reviewed its European operations, andannounced
plans to reduce its store portfolio and operating cost base across certain markets. As a result of this exercise, the business booked
an exceptional charge of £25.1m in relation to redundancies, lease exit costs and other cash restructuring costs.
Subsequent to the year end, CPW Europe completed a strategic review of its French business, as a result of which, given a lack
ofvisibility of returns in the French market, CPW Europe plans to pursue an orderly exit. Since there was no commitment to this
programme at 31 March 2013, no provision for the anticipated costs of exit was made at that date.
In light of the situation in France, the goodwill associated with the French business was written off towards the end of the year,
alongside various other non-current assets in the business. Together with asset write-downs associated with the store closures
committed during the year, total non-cash asset write-downs of £94.1m were booked in the year.
Atax credit of £12.3m has been recognised against these charges, principally in respect of relief anticipated on cash reorganisation
costs and the derecognition ofdeferred tax liabilities.