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14
Acquisitions
cont...
|
NOTES
TO THE FINANCIAL STATEMENTS
ii_Acquisition
of New Zealand HIS business of Hewlett Packard
On 14 October 2004 the Group acquired the New Zealand HIS business
of Hewlett Packard. Acquisition accounting has been adopted and
the book and provisional fair values on acquisition were as follows:
| |
Book value |
|
|
Revelations |
|
|
Provisional
fair value |
|
| |
£'000 |
|
|
£'000 |
|
|
£'000 |
|
| |
|
|
|
|
|
|
|
|
| Net assets acquired – Debtors |
83 |
|
|
(14) |
|
|
69 |
|
| Goodwill |
|
|
|
|
|
|
615 |
|
| |
|
|
|
|
|
|
|
|
| Consideration |
|
|
|
|
|
|
684 |
|
| |
|
|
|
|
|
|
|
|
| Satisfied by: |
|
|
|
|
|
|
|
|
| Cash |
|
|
|
|
|
|
656 |
|
| Acquisition costs |
|
|
|
|
|
|
28 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
684 |
|
From 14 October 2004 to 30 April 2005, the acquired business contributed
£0.3m to turnover, £0.1m to operating profit before
goodwill amortisation and exceptional items and £0.1m to
profit before taxation, goodwill amortisation and exceptional
items. The post acquisition cashflows were not material.
iii_Further investment in iSOFT
R&D Private Limited
On 7 September 2004, the Group increased its stake in iSOFT R&D
Private Limited (“iSOFT R&D”) from 82% to 88%.
In accordance with FRS 2, given that the carrying values of the
net assets in iSOFT R&D were not materially different from
their fair values and the change in stake is not considered significant,
the net assets of iSOFT R&D have not been revalued on consolidation.
Accordingly, the additional goodwill generated by the increase
in stake is as follows:
| |
£'000 |
|
| |
|
|
| Consideration – satisfied
in shares |
772 |
|
| Additional net assets acquired |
(67) |
|
| |
|
|
| Goodwill on increase in stake |
705 |
|
|
|
| |
15
Assets held
for resale
|
| |
Group
2005
|
|
Company
2005
|
|
Group
2004
|
|
Company
2004
|
|
| |
£’000
|
|
£’000
|
|
£’000 |
|
£’000 |
|
| |
|
|
|
|
|
|
|
|
| Business held for
resale |
– |
|
– |
|
6,500 |
|
– |
|
| Property held for
resale |
1,000 |
|
– |
|
1,000 |
|
– |
|
| |
|
|
|
|
|
|
|
|
| |
1,000 |
|
– |
|
7,500 |
|
– |
|
The property held for resale relates to a property acquired on
the merger with Torex which is in the process of disposal. The
property is held at its estimated net realisable value and the
company expects the disposal to be completed in the next financial
year.
|
|
|
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