Cosalt Marine We provide inspection and maintenance services for ...
Cosalt Marine We provide inspection and maintenance services for ...
Cosalt Marine We provide inspection and maintenance services for ...
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Financial statements Notes to the financial statements<br />
5. Discontinued operations<br />
Banner, the Group’s Schoolwear segment, was sold on 13 May 2008 to IDP (Holdings) Ltd <strong>for</strong> a total consideration of £4.5million,<br />
of which £1.5 million was received in cash on completion. The remaining £3.0 million was satisfied by 2008 – 2020 loan notes<br />
repayable by the end of 2010 <strong>and</strong> paying interest of 7% per annum from 13 May 2009. The fair value of these loan notes has<br />
been assessed as £2,738,000 at 13 May 2008 based on net present value calculations. £500,000 of the loan notes had been<br />
repaid as at 26 October 2008.<br />
In addition, in the event that IDP (Holdings) Ltd disposes of Banner within 18 months, <strong>Cosalt</strong> will be entitled to 30% of the sales<br />
proceeds attributable to shareholders <strong>and</strong>, if the remaining Seaham property is sold within two years, <strong>Cosalt</strong> will receive 50%<br />
of the sale proceeds. The Directors have assessed the fair value of the financial assets as £nil given the unknown probability<br />
<strong>and</strong> potential outcomes. The fair value of this financial asset will continue to be assessed.<br />
Holiday Homes, the Group caravan <strong>and</strong> custom home lodge manufacturing business was sold on 25 October 2008 <strong>for</strong> a nominal<br />
consideration to entities within the Endless Group. The sale included the freehold properties the business operated from.<br />
Losses attributed to the discontinued operations <strong>for</strong> the 52 weeks ended 26 October 2008 were as follows:<br />
52 weeks ended 26 October 2008<br />
Schoolwear Holiday Homes Total<br />
£000 £000 £000<br />
Results from discontinued operations<br />
Revenue 5,958 37,148 43,106<br />
Expenses (8,510) (52,712) (61,222)<br />
Loss be<strong>for</strong>e income tax (2,552) (15,564) (18,116)<br />
Income tax credit – 1,816 1,816<br />
Loss from operating activities, net of income tax (2,552) (13,748) (16,300)<br />
Loss from sale of discontinued operations (6,139) (3,022) (9,161)<br />
Loss <strong>for</strong> the period (8,691) (16,770) (25,461)<br />
52 weeks ended 28 October 2007<br />
Schoolwear Holiday Homes Total<br />
£000 £000 £000<br />
Results of discontinued operations<br />
Revenue 18,475 49,749 68,224<br />
Expenses (16,812) (49,635) (66,447)<br />
Profit be<strong>for</strong>e income tax 1,663 114 1,777<br />
Income tax credit 69 205 274<br />
Profit <strong>for</strong> the period 1,732 319 2,051<br />
Cash flows from discontinued operations<br />
Schoolwear<br />
52 weeks ended 52 weeks ended<br />
26 October 2008 28 October 2007<br />
£000 £000<br />
Cash flows from discontinued operations<br />
Net cash from operating activities 3,042 (1,968)<br />
Net cash from investing activities (9) (221)<br />
Net cash from financing activities – –<br />
Net cash generated from/(used in) discontinued operations 3,033 (2,189)<br />
Holiday Homes<br />
52 weeks ended 52 weeks ended<br />
26 October 2008 28 October 2007<br />
£000 £000<br />
Cash flows from discontinued operations<br />
Net cash from operating activities 7,648 (3,155)<br />
Net cash from investing activities (812) (393)<br />
Net cash from financing activities (6,574) 653<br />
Net cash generated from/(used in) discontinued operations 262 (2,895)<br />
<strong>Cosalt</strong> plc Annual report & financial statements 2008<br />
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