Annual Report & Accounts 2009
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- Financial Statements
- Notes to the Consolidated Financial Statements
- 23 Discontinued operations
In the prior year, the Group disposed of BuckHickman, part of the Marketing and Distribution Division, Europe and Asia Pacific. The impact of discontinued operations on the 2008 income statement is detailed below.
| 2009 £m |
2008 £m |
||
|---|---|---|---|
| Post tax result | |||
| Revenue | – | 19.3 | |
| Cost of sales | – | (13.3) | |
| Gross margin | – | 6.0 | |
| Net operating expenses | – | (5.8) | |
| Operating profit | – | 0.2 | |
| Taxation | – | (0.1) | |
| Profit after taxation | – | 0.1 | |
| Gain on disposal | |||
| Consideration (net of costs) | – | 25.2 | |
| Net assets disposed (see below) | – | (38.8) | |
| Loss on disposal of net assets | – | (13.6) | |
| Taxation | – | – | |
| Net loss on disposal | – | (13.6) | |
| Total income statement impact | – | (13.5) | |
| Net assets disposed comprises: | |||
| Goodwill | – | 19.3 | |
| Intangible assets (computer software) | – | 1.2 | |
| Property, plant and equipment | – | 2.2 | |
| Inventories | – | 14.0 | |
| Receivables | – | 16.8 | |
| Payables | – | (13.1) | |
| Provisions | – | (1.6) | |
| – | 38.8 | ||
Operating profit from discontinued operations is stated after charging:
| 2009 £m |
2008 £m |
||
|---|---|---|---|
| Employee benefits | – | 3.0 | |
| Depreciation of property, plant and equipment | – | 0.1 | |
| Amortisation of intangible assets | – | 0.1 | |
| Operating lease rentals | |||
| – plant and machinery | – | 0.2 | |
| – other | – | 0.4 | |
| Cost of inventories recognised as an expense (included in cost of sales) | – | 13.4 | |
| Impairment of trade receivables | – | – | |
| Employee benefits comprise: | |||
| Wages and salaries | – | 2.6 | |
| Social security costs | – | 0.3 | |
| Net pension costs | – | 0.1 | |
| – | 3.0 | ||
| Average number of employees (period up to disposal in year of disposal) | – | 642 | |
Cash flows from discontinued operations included in the consolidated statement of cash flows are as follows:
| 2009 £m |
2008 £m |
||
|---|---|---|---|
| Net cash flows from operating activities | – | (1.2) | |
| Net cash flows from investing activities | 0.7 | 24.4 | |
During 2009, the Group received £0.7 million following finalisation and agreement of the completion accounts relating to the disposal of BuckHickman. There was no income statement impact from this receipt. The net cash inflow from the disposal of businesses during 2008 of £24.4 million comprised the cash consideration, net of disposal costs paid. Cash generated from discontinued operations is analysed in note 24.