Annual Report PDF - Carphone Warehouse Group plc

Notes to the Financial Statements continued www.cpwplc.com 5714 Non-current asset investments continuediii) Hugh SymonsOn 6 December 2005, the Group acquired the UK trade and assets of Hugh Symons Communications Limited, a distributor registered in England and Wales, for agross cash consideration of £5.2m and further deferred consideration, which is contingent on future financial performance, of up to £5.0m payable over two years.The following table sets out the book values of the identifiable assets and liabilities acquired and their provisional fair value to the Group:Book Accounting policy Fair value tovalue alignments the Group£’000 £’000 £’000Current assetsTrade and other receivables 5,426 – 5,426Stock 969 – 969Total assets 6,395 – 6,395Current liabilitiesTrade and other payables (5,395) (300) (5,695)Total liabilities (5,395) (300) (5,695)Total assets and liabilities 1,000 (300) 700Goodwill 9,451Satisfied byCash 5,151Deferred consideration 5,000Net cash outflows in respect of the acquisition comprised:£’000Gross cash consideration 5,151The Group’s results for the period reflect revenue from Hugh Symons of £12.8m and a profit before taxation of £0.3m.iv) Other acquisitionsThe Group made a number of other acquisitions during the period for a gross cash consideration of £6.9m and provided for contingent deferred considerationof up to £0.2m payable over the next two years. These acquisitions resulted in goodwill of £2.1m.Included within other cash paid in the period is £3.0m in relation to deferred consideration for acquisitions made in previous periods.In addition, goodwill was reduced by £4.5m during the period as a result of adjustments to contingent deferred consideration and increased by £1.6m as a resultof adjustments to fair value on previous acquisitions.The following summary shows the net cash outflow on acquisitions during the year:10,15110,151Gross cashconsideration Cash acquired Net cash outflow£’000 £’000 £’000Onetel 169,639 (35,006) 134,633Tele2 UK 11,533 (3,315) 8,218Hugh Symons 5,151 – 5,151Other 9,861 (28) 9,833196,184 (38,349) 157,835Companies acquired in the period contributed £17.3m to the Group’s net operating cashflows, gave rise to net interest costs of £2.4m and utilised £1.5m forcapital expenditure.Combined proforma revenue and profit before taxation for the Group, assuming all acquisitions had been made on 3 April 2005, are £3,462.0m and£59.0m respectively.Financial Statements15 Stock£’000 £’000Finished goods and goods for resale 138,047 95,185The difference between the balance sheet value of stock and its replacement cost is not material.