Experian 2007 Annual Report Download - page 112

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Introduction | Business review | Governance | Financial statements
Notes to the Group financial statements
for the year ended 31 March 2007
110 |Experian Annual Report2007
29. Notes to the Group cash flow statement (continued)
2007 2006
US$m US$m
(f) Analysis of cash and cash equivalents
Cash at bank and in hand 798 293
Short-term investments 109 92
Cash and cash equivalents per Group balance sheet 907 385
Overdrafts (273) (246)
Cash and cash equivalents per Group cash flow statement 634 139
Analysed as:
Cash and cash equivalents – continuing operations 634 (89)
Cash and cash equivalents – discontinued operations –228
Cash and cash equivalents per Group cash flow statement 634 139
(g) Major non-cash transactions
The Group did not enter into any new finance lease arrangements during the year (2006: US$nil).
30. Acquisitions and demerger of Home Retail Group
(a) Acquisitions for the year ended 31 March 2007
During the year ended 31 March 2007, the Group made several acquisitions, none of which are considered individually material to the Group,
including Eiger Systems a leading provider of bank validation/payment software in the UK and Ireland.
In aggregate, the acquired businesses contributed revenues of US$20m and profit after tax of US$3m to the Group for the periods from their
respective acquisition dates to 31 March 2007. If these acquisitions had been completed on 1 April 2006, further revenues of US$12m would have
been reported. Due to the acquired entities using different accounting policies prior to acquisition, previously reporting to different period ends and,
in certain cases, preparing financial information on a cash basis prior to acquisition, it has been impracticable to estimate the impact on Group
profit had they been owned from 1 April 2006.
Details of the net assets acquired and the provisional goodwill are as follows:
Book value Fair value
US$m US$m
Intangible assets –20
Property, plant and equipment 44
Deferred tax assets –5
Trade and other receivables 55
Cash, net of overdrafts 88
Trade and other payables (12) (15)
Deferred tax liabilities – (7)
Net assets acquired 520
Goodwill 71
91
Satisfied by:
Cash 80
Acquisition expenses 2
Deferred consideration 9
91
The fair values set out above contain certain provisional amounts which will be finalised no later than one year after the date of acquisition. Fair
value adjustments in respect of acquisitions made during the year resulted in an increase to book value of US$15m and arose principally in respect
of acquisition intangibles. Goodwill represents the synergies, assembled workforce and future growth potential of the businesses acquired.
Deferred consideration is primarily payable in cash up to three years after the date of acquisition and in some cases is contingent on the businesses
acquired achieving revenue and profit targets. The deferred consideration settled during the year on acquisitions made in previous years was
US$44m.