REG - Cohort PLC - Final Results <Origin Href="QuoteRef">CHRT.L</Origin> - Part 3

CohortAnnouncement

16/07/2015 12:33

- Part 3: For the preceding part double click  ID:nRSY1527Rb 

acquisition. 
 
                                                                              Book Value£000  Fair value£000  
 Recognised amounts of identifiable assets acquired and liabilities assumed:                                  
 Property, plant and equipment                                                2,669           1,329           
 Other intangible assets                                                      1,069           6,795           
 Inventory                                                                    1,956           1,231           
 Trade and other receivables                                                  1,997           1,900           
 Trade and other payables                                                     (2,510)         (2,988)         
 Provisions                                                                   (123)           (123)           
 Deferred tax                                                                 (214)           (1,359)         
 Cash                                                                         41              41              
 Loan and finance leases                                                      (145)           (145)           
                                                                              4,740           6,681           
 Goodwill                                                                                     5,048           
 Total consideration                                                                          11,729          
 Satisfied by:                                                                                                
 Cash                                                                                         11,729          
 Net cash outflow arising on acquisition:                                                                     
 Cash consideration                                                                           11,729          
 Less: cash acquired                                                                          (41)            
                                                                                              11,688          
 
 
Other intangible assets of £6.8m and their estimated useful lives are analysed
as follows: 
 
                     Other intangible asset£000  Estimated lifeYears  
 Contracts acquired  6,795                       9.5                  
 
 
A deferred tax liability of £1.4m in respect of the other intangible asset
balance above was established on acquisition and is disclosed as part of the
deferred tax liability. 
 
The goodwill of £5.0m arising from the acquisition represents the customer
contacts, supplier relationships and know-how to which no certain value can be
ascribed.  None of the goodwill is expected to be deductible for income tax
purposes. 
 
The goodwill is stated after making adjustments to the net assets acquired of
J+S; £3.2m reduction as a result of policy alignment, £0.3m reduction due to
other fair value adjustments and £5.4m increase to recognise other intangible
assets (net of deferred tax liability). 
 
Acquisition costs of £427,000 in respect of J+S were charged as an exceptional
item in the consolidated income statement. 
 
J+S contributed £7.9m and £0.1m to the Group's revenue and adjusted operating
profit respectively for the period from 1 October 2014 to 30 April 2015.  This
contribution has been reported as part of SEA in the segmental analysis (note
1). 
 
9.      DISPOSAL OF SEA'S SPACE BUSINESS 
 
On 30 April 2014, the Group's subsidiary, SEA, signed an agreement to sell its
Space business, in its entirety, to Thales Alenia Space UK Limited (TAS).  On
signing the Group received £2.5m of £5.0m agreed consideration and in return
passed effective control of SEA's Space business to TAS.  As a result of TAS
taking effective control from 30 April 2014, the Group has accounted for the
disposal in its entirety in the year ended 30 April 2014. 
 
On 6 June 2014 the disposal completed and a further £2.5m was received from
TAS.  Following completion of the working capital adjustment a further £1.5m
was received on 30 April 2015.  A reduction in the loss on closing out the
disposal of £44,000 was reported as an exceptional item. 
 
This information is provided by RNS
The company news service from the London Stock Exchange