Annual Report 30 June 2007 - One Horizon Group

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24 NOTES TO THE FINANCIAL STATEMENTS (continued) 14. Investments (continued) Proportion Country of Name of subsidiary Holding of shares held incorporation SatCom Distribution Limited Ordinary shares 100% UK SatCom Distribution Inc. Ordinary shares 100%* USA O’Gara Satellite Systems Inc. Ordinary shares 100%* USA SatCom Distribution (Asia) Limited Ordinary shares 100%* Hong Kong SatCom Distribution Middle East FZ LLC Ordinary shares 55%* UAE Horizon Mobile Communications Co. Limited Ordinary shares 100%* Thailand Horizon Mobile Communications Pte Limited Ordinary shares 100%* Singapore Horizon Mobile Communications (HK) Co. Limited Ordinary shares 100%* BVI Horizon Mobile Communications (HK) Co. Limited Registered branch 100%* Japan Horizon Mobile Communications (Australia) Pty Ordinary shares 100%* Australia Horizon Mobile Communication (UK) Limited Ordinary shares 100%* UK HMC America Limited Limited partnership 100%* USA SatCom Global FZE Ordinary shares 100% UAE World Communication Center Inc Ordinary shares 100%* USA *Held by a subsidiary undertaking The Group acquired World Communication Center Inc (“WCC”) for an initial consideration of $5,321,000 (including costs), satisfied by a combination of cash and SatCom shares. In addition, there is deferred consideration of $750,000, which has been included in these accounts as the conditions on which the deferral are likely to be met. The acquisition has been accounted for using acquisition accounting and goodwill arising on the acquisition of WCC has been capitalised and will be amortised over 20 years. The investment in WCC is included in the balance sheet of the acquiring subsidiary at its book value at the date of acquisition. Details of the net assets of World Communication Center Inc acquired is shown in note 31. The Directors consider that the difference between book value and fair value is not material. World Communication Center Inc acquired in the year, contributed a decrease of $231,000 to the Group’s operating cash flows, paid $75,000 in respect of taxation and utilised $81,000 for capital expenditure. World Communication Center Inc earned a profit after tax of $228,282 in the period from acquisition to 30 June 2007.
15. Stocks Group Company 30 June 2007 30 June 2006 30 June 2007 30 June 2006 $000’s $000’s $000’s $000’s Finished goods 5,588 3,216 – – The difference between the cost of stocks and their replacement cost is not material. 16. Debtors Group Company 30 June 2007 30 June 2006 30 June 2007 30 June 2006 $000’s $000’s $000’s $000’s Trade debtors 12,888 7,610 – – Amounts owed from Group undertakings – – 3,617 91 Other debtors 350 1,118 247 381 Taxation and social security costs 522 126 2 27 Prepayments and accrued income 3,822 2,503 231 6 17. Cash at bank and in hand 17,582 11,357 4,097 505 The Group has banking facilities with HSBC Bank Plc, which are supported by guarantees from main trading subsidiaries of the Group together with a debenture over the cash and assets of SatCom Group Holdings Plc. The principal facility is an overdraft of $7.5m in SatCom Distribution Limited, which is set-off in these accounts against cash balances with the same bank in SatCom Group Holdings Plc. 18. Creditors: Amounts falling due within one year Group Company 30 June 2007 30 June 2006 30 June 2007 30 June 2006 $000’s $000’s $000’s $000’s Trade creditors 7,490 8,423 14 107 Amounts owed to Group undertakings – – 6,289 5,733 Hire purchase agreements (note 20) 118 18 – – Directors’ loan accounts (note 23) 925 1,281 925 1,281 Other creditors 2,600 610 1,202 402 Taxation and social security costs 1,412 936 10 3 Accruals and deferred income 7,968 4,639 334 765 Hire purchase and finance leases obligations are secured over the asset acquired. 20,513 15,907 8,774 8,291 25
Page 1 and 2: Annual Report 30 June 2007 SatCom G
Page 3 and 4: CONTENTS Chairman’s statement 2 C
Page 5 and 6: CHIEF EXECUTIVE’S STATEMENT Highl
Page 7 and 8: DIRECTORS, OFFICERS AND ADVISERS Di
Page 9 and 10: Share options No Directors had inte
Page 11 and 12: ut not absolute, assurance with reg
Page 13 and 14: INDEPENDENT AUDITORS’ REPORT to t
Page 15 and 16: GROUP BALANCE SHEET As at 30 June 2
Page 17 and 18: GROUP CASH FLOW STATEMENT Year ende
Page 19 and 20: 1. Accounting policies (continued)
Page 21 and 22: 4. Operating profit 30 June 2007 30
Page 23 and 24: 8. Earnings per share Basic earning
Page 25: 13. Tangible fixed assets Short Lea
Page 29 and 30: 21. Deferred taxation The movement
Page 31 and 32: 24. Share capital Authorised share
Page 33 and 34: 27. Reconciliation of movements in
Page 35 and 36: HORIZON MOBILE COMMUNICATIONS HORIZ

Annual Report 30 June 2007 - One Horizon Group

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