Notes on the Accounts

for the year ended 31st March 2012

39 Restatement of acquisition in the year ended 31st March 2011

On 1st November 2010 the group acquired 100% of Intercat, Inc. and its subsidiaries. The fair values disclosed at 31st March 2011 were provisional. These have now been finalised and the balance sheet at 31st March 2011 restated.

The net assets acquired were:

  Estimated
fair value
at time of
acquisition
£ million
Revised
fair value
at time of
acquisition
£ million

Measurement
period
adjustments
£ million
Property, plant and equipment 11.5 11.5
Intangible assets – patents, trademarks and licences 10.1 8.5 (1.6)
Intangible assets – customer contracts and relationships 17.7 20.5 2.8
Intangible assets – acquired research and technology 2.8 2.8
Inventories 5.8 5.8
Trade and other receivables 5.4 5.2 (0.2)
Cash and cash equivalents 1.0 1.0
Current other borrowings (21.5) (20.5) 1.0
Trade and other payables (10.6) (11.0) (0.4)
Current income tax liabilities (1.4) (1.8) (0.4)
Deferred income tax liabilities (8.0) (7.6) 0.4
Provisions (1.9) (1.9)
Total net assets acquired 12.8 12.5 (0.3)
Goodwill on acquisition 20.2 19.4 (0.8)
Total consideration 33.0 31.9 (1.1)

As a result of these changes the amortisation of acquired intangibles for the year ended 31st March 2011 increased by £1.3 million to £14.5 million and the income tax expense decreased by £0.5 million to £75.5 million. Also the currency translation loss in other comprehensive income increased by £1.0 million to £8.9 million.

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