REG - Computacenter - Half Yearly Report <Origin Href="QuoteRef">CCC.L</Origin> <Origin Href="QuoteRef">MORT.L</Origin> - Part 3

ComputacenterAnnouncement

28/08/2015 07:01

- Part 3: For the preceding part double click  ID:nRSb3777Xb 

with Arrow Electronics UK Holding Limited for the disposal of the
entire issued share capital of RDC. For the period ended 30 June 2015, RDC
generated revenues of £3.5 million (2014: £22.8 million) and statutory profit
before tax of £0.3 million (2014: £2.5 million). The net assets of RDC,
including cash of £3.8 million, were disposed of for consideration of £59.9
million in cash to the Group. This generated a gain of £42.2 million. 
 
Update on acquisitions made in 2011 
 
On 21 July 2011, the Group acquired 80% of Damax AG in Switzerland for an
initial consideration of CHF 7.2 million, and agreed to purchase the remaining
20% by mid-2015 for a maximum consideration of CHF 3.2 million dependent upon
the achievement of agreed performance criteria during that period. Due to the
nature of the transaction, the Group had access to the benefits associated
with the remaining 20% of Damax. Therefore the Group recorded this acquisition
as a linked transaction, and accordingly consolidated 100% of the results of
Damax since the acquisition date and estimated the fair value of the deferred
consideration payable. As at 30 June 2015, Damax has achieved the agreed
performance criteria which triggered the maximum consideration payable of 3.2
million CHF by the Group to the previous owner of the business. Details of the
book and fair values of the net assets acquired are disclosed in note 16 of
the December 2011 Annual Report and Accounts. 
 
13           Fair value measurements recognised in the consolidated balance
sheet 
 
Financial instruments which are recognised at fair value subsequent to initial
recognition are grouped into Levels 1 to 3 based on the degree to which the
fair value is observable. The three levels are defined as follows: 
 
1.                     Level 1 fair value measurements are those derived from
quoted prices (unadjusted) in active markets for identical assets or
liabilities; 
 
2.                     Level 2 fair value measurements are those derived from
inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (i.e. as prices) or indirectly
(i.e. derived from prices); and 
 
3.                     Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability that are
not based on observable market data (unobservable inputs). 
 
At 30 June 2015 the Group had forward currency contracts, which were measured
at Level 2 fair value subsequent to initial recognition, to the value of a net
liability of £210,000 (30 June 2014: £536,000 net liability, 31 December 2014:
£2,045,000 net asset). 
 
The net realised losses from forward currency contracts in the period to 30
June 2015 of £2,255,000 (30 June 2014: £1,824,000 gain, 31 December 2014:
£4,405,000 gain), are offset by broadly equivalent realised losses/gains on
the related underlying transactions. There were no transfers between Level 1
and Level 2 during the period (2014: nil). 
 
The foreign currency forward contracts are measured based on observable spot
exchange rates, the yield curves of the respective currencies as well as the
currency basis spreads between the respective currencies. All contracts are
fully cash collateralised, thereby eliminating both counterparty and the
Group's own credit risk. 
 
The carrying value of the Group's short-term receivables and payables is a
reasonable approximation of their fair values. The fair value of all other
financial instruments carried within the Group's financial statements is not
materially different from their carrying amount. 
 
14           Analysis of net funds 
 
                               UnauditedH1 2015£'000  Unaudited H1 2014£'000  Audited Year 2014£'000  
 Cash and short term deposits  53,619                 70,982                  129,865                 
 Bank overdraft                (1,004)                (1,418)                 (719)                   
 Cash and cash equivalents     52,615                 69,564                  129,146                 
 Bank loans                    (8)                    -                       (120)                   
 Other loans non-CSF           -                      (146)                   (517)                   
 Net funds excluding CSF       52,607                 69,418                  128,509                 
 Finance leases                (4,927)                (8,134)                 (6,696)                 
 Other loans                   (2,794)                (7,266)                 (2,616)                 
 Total CSF                     (7,721)                (15,400)                (9,312)                 
 Net funds                     44,886                 54,018                  119,197                 
 
 
15           Publication of non-statutory accounts 
 
The financial information contained in the interim statement does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006. The comparative figures for the financial year ended 31 December 2014
are not the company's statutory accounts for that financial year. Those
accounts have been reported on by the company's auditor and delivered to the
registrar of companies. The report of the auditor was (i) unqualified, (ii)
did not include a reference to any matters to which the auditor drew attention
by way of emphasis without qualifying their  report, and (iii) did not contain
a statement under section 498 (2) or (3) of the Companies Act 2006. 
 
This information is provided by RNS
The company news service from the London Stock Exchange