Carphone Warehouse 2015 Annual Report Download - page 130

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Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
Notes to the Group financial statements
128
24 Discontinued operations and assets held for sale
On 16 May 2014 the Group announced that it had entered into an agreement to sell its interest in Virgin Mobile France
and completed the disposal on 4 December 2014 for gross consideration of £104 million and generated a profit of
£87 million.
Following the Merger, the Group put in place a strategy of focusing on market leadership positions while engaging in
other markets through partnerships with its Connected World Services division. This led the Group to carry out detailed
strategic assessments of its Phone House operations which concluded in the decision to exit certain markets.
• On 15 April 2015 the Group announced that it had agreed the sale of its operations in Germany to Drillisch AG, a leading
mobile virtual network operator in Germany. The sale completed on 5 May 2015.
• On 24 April 2015 the Group entered into an agreement to dispose of a majority 83% stake in its operations in the Netherlands
to Relevant Holdings BV, a company set up by the shareholders of Optie1 which has extensive telecom retailing experience in
the Dutch market. The sale completed on 30 June 2015.
• On 16 July 2015 the Group announced its commitment to dispose of its operations in Portugal following the completion of a
strategic review in 2014/15. Discussions which commenced with potential acquirers during 2014/15 are advanced and an
announcement confirming details of the disposal is expected in due course.
The closure of the Phone House operations in France, which was announced in 2013/14, was completed during the year
ended 2 May 2015 and is therefore now treated as a discontinued operation.
Prior to the Merger, Dixons agreed to sell its operations in the Czech Republic and Slovakia. The net assets held for sale
associated with this business were included within the fair value of assets and liabilities acquired through the Merger and
the sale completed on 11 August 2014.
All businesses noted above have been presented within discontinued operations and the assets and liabilities associated
with Germany, Netherlands and Portugal have been recognised as held for sale at 2 May 2015. The results of the Phone
House Germany, Netherlands and Portugal prior to the CPW Europe Acquisition continue to be reported in results of joint
ventures within Headline continuing operations. The Group’s interest in Virgin Mobile France was presented as an asset
held for sale as at 29 March 2014 and equity accounting was ceased from this date.
a) Loss after tax – discontinued operations
The results of discontinued operations are comprised as follows:
13 months ended 2 May 2015
Virgin
Mobile
France
£million
Phone
House
France
£million
Phone
House
Germany
£million
Phone
House
Netherlands
£million
Phone
House
Portugal
£million
Total
£million
Revenue — — 323 159 47 529
Expenses — — (364) (239) (55) (658)
Loss before tax — — (41) (80) (8) (129)
Income tax — — — — — —
— — (41) (80) (8) (129)
Profit on disposal 87 — — — — 87
Impairment losses recognised on classification as held for
sale — — (16) (43) (13) (72)
87 — (57) (123) (21) (114)
The profit on disposal of Virgin Mobile France comprises consideration of £104 million, £4 million of costs and £13 million of net
assets disposed. The loss before tax of the operations in Germany, the Netherlands and Portugal include restructuring costs and
asset impairment charges from reorganisations carried out prior to the businesses being classified as held for sale. Such costs
include the Non-Headline exceptional restructuring charges of £67 million, of which £35 million relates to goodwill impairment,
recognised in relation to the Phone House Germany and Netherlands. The impairment losses recognised on classification as
held for sale on all other businesses reflects the difference between the consideration expected to be received and the net
assets held for sale including any impairment of assets to their anticipated net realisable value on completion less any accrued
costs to sell.