Tesco 2006 Annual Report Download - page 61

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59Tesco plc
Note 7 Discontinuing operation and assets classified as held for sale continued
Discontinuing operation and the assets of the disposal group
On 30 September 2005 the Group entered into an agreement to dispose of its operation in Taiwan to Carrefour as part of a transaction
to acquire Carrefour’s businesses in the Czech Republic and Slovakia. This operation, which is expected to be sold within twelve
months of the Balance Sheet date, has been classified as a disposal group. The assets of the business are presented separately
in the Balance Sheet, and the net result for the year presented within discontinuing operation in the Income Statement.
The proceeds of disposal are expected to exceed the carrying value of the related net assets and accordingly no further impairment
losses have been recognised on the classification of these operations as held for sale.
The table below shows the results of the Taiwanese business that are included in the results of the total Group for the current and
prior periods.
Income Statement
2006 2005
£m £m
Revenue 134 108
Cost of sales (111) (91)
Administrative expenses (32) (23)
Net finance costs (1) (1)
Shareof profit of discontinuing joint venture 11
Loss before tax of discontinuing operation (9) (6)
Tax related to trading loss (1) –
(10) (6)
The effect of the discontinuing operation on segment results is disclosed in note 2.
Cash Flow Statement
2006 2005
£m £m
Net cash flows from operating activities (6) 3
Net cash flows from investing activities (6) (4)
Net cash flows from financing activities 10 2
(2) 1
Balance Sheet
2006
£m
Property, plant and equipment 68
Investment property 18
Investment in Joint venture 10
Inventories 9
Trade and other receivables 7
Cash and cash equivalents 2
Assets of the disposal group 114
Bank loans and overdrafts (57)
Trade and other payables (28)
Tax liabilities (1)
Total liabilities directly associated with the disposal group (86)
Non-current assets classified as held for sale
2006
£m
Non-current assets classified as held for sale 54
The non-current assets classified as held for sale consist mainly of investment property held for sale.