19 Investment in associate
| 2010 £ million |
2009 £ million |
||
|---|---|---|---|
| At beginning of year | 5.8 | 3.7 | |
| Group’s share of profit of associate for the year | 1.7 | 2.0 | |
| Group’s share of associate’s cash flow hedging movement | 0.2 | (0.2) | |
| Dividends paid | (0.6) | – | |
| Dissolution of associate | (5.4) | – | |
| Exchange adjustments | 1.7 | 0.3 | |
| At end of year | 3.4 | 5.8 |
The group’s associate is AGR Matthey, which is a partnership operating in Australia in which the group has a 20% interest. An agreement between the partners of AGR Matthey to dissolve the partnership became effective on 29th March 2010. As part of this dissolution the group acquired a metal products business (note 40) and a 20% ownership of a plot of land from AGR Matthey. This dissolution results in a charge of £4.4 million. This charge is excluded from underlying profit before tax.
Some residual current assets and liabilities have been left in the partnership whilst they are converted into cash, at which point they will be distributed to the partners. The group’s 20% share of these net assets forms the group’s remaining investment in associate.
Summarised financial information in respect of the group’s associate is:
| 2010 £ million |
2009 £ million |
||
|---|---|---|---|
| Total assets | 42.8 | 53.5 | |
| Total liabilities | (25.8) | (30.6) | |
| Net assets | 17.0 | 22.9 | |
| Total revenue | 24.6 | 34.3 | |
| Total profit for the year | 8.6 | 10.0 |