2002 Report And Accounts - Guinness Peat Group plc

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Notes to the Group Cash Flow Statementfor the year ended 30th June 2002DDisposal of businesses2002 2001£000 £000Net assets disposed ofTangible fixed assets 364 1,375Intangible fixed assets – 290Stocks 52 (1,505)Debtors 2,329 7,681Creditors (2,080) (4,594)Cash/(overdraft) 532 (101)Finance leases (51) (80)–––––––– ––––––––1,146 3,066Net assets attributable to minority interests (548) –(Loss)/profit on disposal (356) 6,898–––––––– ––––––––242 9,964–––––––– ––––––––Satisfied by:Cash 242 9,964–––––––– ––––––––EAnalysis of net (outflow)/inflow of cash and cash equivalentsin respect of the disposal of businesses2002 2001£000 £000Cash consideration 242 9,964Bank balances of businesses disposed of (532) 101–––––––– ––––––––(290) 10,065–––––––– ––––––––FAcquisition of business2002 2001£000 £000Net assets purchasedStocks – 45Creditors – (14)–––––––– ––––––––– 31Goodwill arising – 328–––––––– ––––––––– 359–––––––– ––––––––Satisfied by:Cash – 359–––––––– ––––––––26
Accounting PoliciesBasis of accountingThe financial statements for the Group are prepared under the historical cost convention, as modified for the revaluation of certain assets, andcomply with applicable accounting standards. The principal accounting policies adopted are described below together with an explanation ofwhere changes have been made to previous policies on the adoption of new accounting standards in the year. The transitional disclosures ofFRS 17 ‘Retirement Benefits’ have been made in the current year. FRS 18 ‘Accounting Policies’ was adopted in the prior year and no changesin accounting policies were required. The Group has also adopted FRS 19 ‘Deferred Tax’ in these financial statements, this represents achange in accounting policy and the comparatives have been restated accordingly, the impact of which is shown in note 22 to the accounts.Consolidation and goodwillThe consolidated financial statements include the financial statements of the holding company and its subsidiaries. Results of subsidiaryundertakings acquired during the financial year are included in Group profit from the effective date of acquisition and those of companiesdisposed of are included up to the effective date of disposal. For this purpose the net assets of newly acquired subsidiaries are incorporatedin the financial statements on the basis of fair value to the Group. Prior to 1st July 1998 any goodwill represented by the excess of theconsideration paid over the fair value of the net assets acquired at the date of acquisition was eliminated against reserves on consolidation,to be written off through the profit and loss account on the subsequent disposal of the business to which the goodwill relates. From 1st July1998, in accordance with FRS 10, such goodwill has been included on the balance sheet and is being amortised over its useful economic life.TurnoverTurnover comprises amounts receivable in the ordinary course of business in respect of goods sold and services provided to third parties,income from property sales and developments, and rents receivable, excluding Value Added Tax. Turnover on long term contracts is recognisedaccording to the stage reached in the contract by reference to the value of the work done with the corresponding amount being included indebtors. An estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed withreasonable certainty.Intangible fixed assetsIntellectual property and goodwill are stated at cost less depreciation charged, on a straight line basis, over their anticipated useful lives,which is estimated to be 20 years.Tangible fixed assetsTangible fixed assets are stated at cost or valuation less depreciation charged at the following annual rates:Freehold landNilFreehold buildings 2%Leasehold propertiesOver the term of the leasePlant, equipment and vehicles 10% - 33%The cost of mineral rights is amortised over the expected extraction period.Impairments in value of tangible fixed assets are charged to the profit and loss account.Development expenditureDevelopment expenditure relating to clearly defined projects where the outcome of these projects is assessed as being reasonably certainas regards to economic viability and technical feasibility is capitalised and amortised over the period expected to benefit from the project. Otherdevelopment expenditure and expenditure on pure and applied research is written off as incurred.Leased assetsThe cost of assets held under finance leases is included under tangible assets, and depreciation is provided in accordance with the Group’saccounting policy for the class of asset concerned. The interest cost is charged to profit and loss account over the term of the lease on thebasis of the capital element outstanding. The capital element of future lease payments is included in creditors.The cost of operating leases is charged to the profit and loss account as incurred.TaxationProvision is made for deferred taxation on all material timing differences. Deferred tax assets are recognised where their recovery is consideredmore likely than not. Deferred tax assets and liabilities have not been discounted.StockStock, work in progress and finished goods cost are based on a FIFO measure and are stated on consistent bases at the lower of cost,including production overheads, and net realisable value.Pension costsPension contributions are determined in accordance with the advice of independent actuaries. In accordance with Statement of StandardAccounting Practice No. 24 pension costs are charged to the profit and loss account so as to spread the cost over the employee’s working lifewith the Group. The Group operates a defined benefit scheme.Foreign currenciesTrading profits or losses of overseas subsidiary companies are translated into sterling at the average rates ruling during the year. Assets andliabilities expressed in currencies other than sterling are translated at year end exchange rates. Profits and losses arising from the repayment orreinstatement of foreign currency borrowings used to finance foreign equity investments, and resulting from restatement of overseas net assets,are identified as movements on reserves. All other exchange differences (including those arising from currency conversions in the normal courseof trading) are dealt with through the profit and loss account.27
Page 1 and 2: Report and Accounts 2002
Page 3 and 4: Year in BriefCorporate Highlights
Page 5 and 6: Chairman’s StatementPRIMARY TOBAC
Page 7 and 8: Chairman’s StatementWEB PROCESSIN
Page 9 and 10: Financial ReviewIntroductionOther t
Page 11 and 12: Financial ReviewTreasury Activities
Page 13 and 14: Directors’ ReportThe Directors pr
Page 15 and 16: Directors’ ReportIn addition to t
Page 17 and 18: Remuneration Committee ReportRemune
Page 19 and 20: Remuneration Committee ReportRemune
Page 21 and 22: Independent Auditors’ ReportTo th
Page 23 and 24: Group Balance Sheetas at 30th June
Page 25 and 26: Company Balance Sheetas at 30th Jun
Page 27: Notes to the Group Cash Flow Statem
Page 31 and 32: Notes to the Financial Statements2
Page 51 and 52: Notice of MeetingNotice is hereby g
Page 53 and 54: Form of ProxyBrunel Holdings PlcAnn
Page 55 and 56: High Performance Flotation Coolerfo

2002 Report And Accounts - Guinness Peat Group plc

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