Untitled

Notes on
the Accounts
I Associated Compan-es
The group accounts for the year to gO June 1921 include the
group's share ofthe results ofall associated companies (i.e- those
ia yhic! the group owns between 20% and 50./o of tire equity
voting rights) with the exception of:-
(a) Companies which are not considered to be material oD the
baeis olaesets or results; and
(b) Companies in which the group's interest is not for the longterm,
or, having regard to the disposition of the other shar;_
holdings, the group is not in a position to exetcise a significant
influence over the companies.
Details of the companies which are treated as associated companies
are given on page 37-
Although the group owns 25yo of tbLe eqvtty of British Domestic
Appliances Limited, it has not been treaied ae an associated company
since it was not considered a long-term investment at BO June
1971. The group has an option to sell it€ investment to the General
Electric Company Limited at a guaranteed price. The option can
be exercised on 31 December 1972, or within five years after that
date, and the guarantee erceeds the present book value of the
investment.
It is the Board's present intention to exercise this option,
T?re group's share of the losses of British Domeetic Appliances
Limited amounted to €541,000 before taxation for the yei ended
2 Sales
Tlrese are sales to third parties including income from oatentscopyrights
and trademarks, aft€r deducting all discounie, coml
qrissions and taxes levied on salee, atrd excludes the group's sh;e
31 March 1971. No provision is necessar5z, however, because the
losses do uot reduce the value ofthe guaranteed selling price.
Itr the previous year the group accounta included only the dividentls
distributed by associated companies, togethe; with the
group'e share of undistributed profits ofthose companies in which
the group,owned 5O% of the equity capital. Of thJincome arising
tbLis year from all associated companies, a sun of €128,000 relatei
to undistributed income from those companiea where the group
holils between 20'/. and 49./o ofthe equity capital.
Wherever possible, the group's share of trading results has been
obtained from audited accounts of aesociated companiee covering
the period to 3O June 1971. Where theee are noi available, the
results have been taken from unaudited management accounts for
the period from the date of the most recent audited accounts to
30 June 1971. The amounts so included are, however, not material
in relation to the total income from this source. Furtherrnore, the
directors are of the opirfon that the results disclosed bv the unaufited
accounte are reliable.
On 1 April 79'11 a 5Ol" interest $'as acquired in the equity of
Vorson SpA- In view of the particular pattern of trade in ihie
company, it is impractical to prepare accounts to B0 June, and it
has been decided that the group will consolidate its share of
Vorson's audited results on the basis of their accounts for the
twelve montha to 31 March each year, and accordingly, no
amounts are included from this source in the gToup accounta to
30 June 1971.
ofthe sales by associated companies. Sales in 1969/?0 included the
gtoup's share of sales by associated companies of i9,6O8,000. The
comparative figures are after deducting this amount.
3 Profit beforo Taxation
(a) Consolidated profits less losses ofgroup companies
Group share ofprofits less lossee ofassociated companies
(b) The Group proft before taxation, €8,968,000, is after charging in respect of group companies only:
(i) Depreciation
5 ,U2
(ii) Interest payable
On bank borrowings and loans repayable in full within b years
Z,g7
Onotherloans g,069
(iii) Parent company directors' emoluments (Not€ 4)
Salariee
Fees
Pension contributions
Lump sum retirenent payment to a director
resident outside the United Kingdom