Cosalt plc Annual report & financial statements 2008

Financial statements Notes to the financial statements
The effects on the Group’s assets and liabilities are detailed below.
From the date of acquisition, Myhre-Maritime contributed £2,093,000 to Group revenue and £434,000 to Group operating profit,
after deducting amortisation of intangible assets acquired totalling £155,000. Details of the assets and liabilities acquired are
given below:
Book
Provisional
fair value Value to
value adjustments Group
£000 £000 £000
Non-current assets
Property, plant and equipment 299 – 299
Intangible assets – 5,638 5,638
Current assets
Inventories 1,668 (300) 1,368
Trade and other receivables 1,804 (100) 1,704
Cash and cash equivalents 229 – 229
3,701 (400) 3,301
Current liabilities
Trade and other payables 980 – 980
980 – 980
Non-current liabilities
Interest bearing loans and borrowings 103 – 103
Provisions 77 – 77
Deferred taxation – 1,578 1,578
Net assets acquired 2,840 3,660 6,500
The provisional fair value adjustment reflects the adjustment required to assets and liabilities to align these with their fair values,
Group accounting policies and to recognise intangible assets identified on acquisition and their associated deferred tax.
Goodwill arising on acquisition represents the geographical strategic benefit of obtaining pan-European coverage.
The contribution of the acquisition to the consolidated revenue and net profit had it occurred at the beginning of the year has not
been disclosed as it would be impractical to determine these amounts. This is because the acquisition (i) had a different year end
to the Group, and (ii) was a privately held company and prepared financial statements under local European accounting standards
in the country of origin which is different to the IFRS accounting policies adopted by the Group.
During 2007 the Group acquired the Marine safety businesses of Bofort and SSM, and GTC Group. The consideration and cash
flows of these acquisitions are summarised below.
Bofort GTC
and SSM Group Total
£000 £000 £000
Net identifiable assets and liabilities 3,956 8,632 12,588
Goodwill on acquisition 6,220 17,184 23,404
Consideration payable 10,176 25,816 35,992
Satisfied by
Cash consideration (including expenses) 10,275 15,150 25,425
Deferred consideration – 3,422 3,422
Equity shares issued – 7,244 7,244
10,275 25,816 36,091
Net cash
Cash consideration 10,275 15,150 25,425
(Cash)/overdraft acquired (233) 4,429 4,196
Net cash outflow 10,042 19,579 29,621
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