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Notes to the Accounts continued<br />
14 INTEREST IN ASSOCIATE<br />
2 April<br />
<strong>2016</strong><br />
£000<br />
28 March<br />
2015<br />
£000<br />
Interest in associate<br />
At beginning of the year 4,236 5,088<br />
Disposal cost of investments (386) (951)<br />
Exchange adjustments (25) 35<br />
Group’s share of profit of associate before Group eliminations (103) 64<br />
At end of year 3,722 4,236<br />
On the 26 August 2015, the Group disposed of 9,176 shares in Optomed Oy (Optomed), representing 8.8% of its ownership interest<br />
in the associate (see note 29). As one of the largest shareholders, the Group continues to exercise significant influence, but not control,<br />
over the company and so continues to apply the equity method of accounting for its interest.<br />
Later during the year another investor exercised an option over outstanding warrants, further diluting the Group’s ownership to 26.7%<br />
at the year-end as disclosed below. Following the part disposal, Optomed continues to be classified as an investment in associate and<br />
therefore, as required by IAS 28, following this transaction the Group did not remeasure the carrying value of its investment.<br />
2 April<br />
<strong>2016</strong><br />
£000<br />
28 March<br />
2015<br />
£000<br />
Aggregated amounts relating to associate<br />
Total assets 7,488 4,424<br />
Total liabilities (4,129) (2,530)<br />
Net assets 3,359 1,894<br />
Group’s share of net assets of associate 897 626<br />
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS<br />
Total revenue 4,352 3,333<br />
(Loss)/profit (313) 193<br />
(Loss)/profit after group eliminations* (838) 193<br />
Group’s share of (loss)/profit of associate (103) 64<br />
Group’s share of (loss)/profit of associate after Group eliminations* (159) 64<br />
*Group eliminations relate to profit on inventory held by the Group on product sold by Optomed.<br />
Optomed has a 31 December year end. However, results coterminous with the Group’s year end have been included based on the<br />
Group’s remaining share of the associate.<br />
Details of the Group’s associate held at 2 April <strong>2016</strong> are as follows:<br />
Name of associate Country of incorporation Proportion of ownership interest Principal activity<br />
Optomed Oy Finland 26.7% Design, manufacture and selling<br />
The Group owns 95,034 (2015: 104,210) Class A shares in Optomed out of a total of 355,932 (2015: 315,110) shares in issue<br />
(Class A and B shares). Each A and B share entitles the holder to one vote.<br />
<strong>Halma</strong> plc Annual Report and Accounts <strong>2016</strong> 133 131
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