Carphone Warehouse 2014 Annual Report Download - page 98

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Carphone Warehouse Group plc
Annual Report 2014
96
FINANCIAL STATEMENTS
28 OPERATING LEASES
a) LEASES AS LESSEE
The Group leases a number of retail units and offices under operating leases. The leases have varying terms, purchase options, escalation
clauses and renewal rights.
i) FUTURE MINIMUM LEASE PAYMENTS
At  March , the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases
which fall due over the following periods:
2014 2013
£m £m
Less than one year 93 —
Between one and five years 249 —
More than five years 130 —
472 —
The Group has some leases that include revenue-related rental payments that are contingent on store performance. The analysis above
includes only the minimum rental component.
The total amount of future minimum sub-lease payments expected to be received under non-cancellable sub-leases is £m (: nil).
ii) AMOUNTS RECOGNISED IN PROFIT OR LOSS
2014 2013
£m £m
Fixed rent expense 89 —
Sub-lease income (1) —
88 —
b) LEASES AS LESSOR
The Group has investment properties which are let to third parties on long-term leases.
i) FUTURE MINIMUM LEASE RECEIPTS
At  March , the Group had non-cancellable operating leases which provided for receipts over the following periods:
2014 2013
£m £m
Within one year 22
In two to five years 88
After five years 12 14
22 24
ii) AMOUNTS RECOGNISED IN PROFIT OR LOSS
During the year ended  March , the Group recorded £m (: £m) of investment property rental income within revenue.
29 POST BALANCE SHEET EVENTS
On  May , the Company announced that it had reached agreement on the terms for an all-share merger with Dixons Retail plc
(the"Merger"). Under the terms of the Merger, ordinary shareholders in Dixons Retail plc will for each of their shares in Dixons Retail plc
receive . shares in the Company, which will be renamed Dixons Carphone plc. The Board considers that the Merger will deliver
significant value to Carphone shareholders through a combination of enhanced commercial opportunities and operating synergies, which
are expected to deliver recurring annual benefits of at least £m by the – financial year. The Merger is expected to be effected by
way of a scheme of arrangement and is conditional on the approval of the ordinary shareholders of both the Company and Dixons Retail plc
and the sanction of the court.
On  May , the Company announced that, alongside the other shareholders in the business, it had entered into an exclusivity agreement
in respect of the proposed sale of Virgin Mobile France to Numericable Group for an enterprise value of €m. During the exclusivity period
the parties have carried out the necessary consultations with employee work councils, and the transaction is subject to the approval of the
French competition authority.
Notes to the Group financial statements continued