Financial statements
NOTES TO THE FINANCIAL STATEMENTS
36. Acquisitions
On 8 April 2009 the entire issued share capital of Greater Manchester Waste Limited (now renamed Viridor Waste (Greater Manchester) Limited) was purchased by Viridor Waste Management Limited for a nominal consideration. The acquisition has been accounted for using the acquisition method.
Viridor Waste (Greater Manchester) Limited contributed revenues of £75.5m and a profit before tax of £6.5m for the period from 8 April 2009 to 31 March 2010. These amounts have been calculated after applying the Group's accounting policies and adjusting the results to reflect the provisional fair value adjustments.
The residual excess over the net assets acquired has been recognised as goodwill. The goodwill is attributed to the profitability of the acquired business.
|
Book |
Fair value |
Fair |
|
|
Other intangible assets |
1.1 |
(1.1) |
- |
|
Property, plant and equipment |
26.5 |
(10.6) |
15.9 |
|
Inventories |
0.4 |
- |
0.4 |
|
Receivables |
6.3 |
- |
6.3 |
|
Payables |
(11.4) |
(19.7) |
(31.1) |
|
Retirement benefit obligations |
(1.5) |
1.5 |
- |
|
Provisions - environmental |
- |
(3.2) |
(3.2) |
|
Taxation - current |
0.7 |
(0.2) |
0.5 |
|
Taxation - deferred |
(0.3) |
(0.6) |
(0.9) |
|
Cash and cash deposits |
6.3 |
- |
6.3 |
|
Net assets acquired |
28.1 |
(33.9) |
(5.8) |
|
Goodwill |
5.8 |
||
|
Total consideration |
- |
||
|
Satisfied by: |
|||
|
Cash |
- |
||
|
Directly attributable costs |
- |
||
|
- |
|||
|
Net cash outflow arising on acquisition |
|||
|
Cash consideration |
- |
||
|
Cash and cash deposits acquired |
(6.3) |
||
|
(6.3) |
On 5 June 2009 the entire issued share capital of London Recycling Limited (now renamed Viridor London Recycling Limited) was purchased by Viridor Waste Management Limited for a cash consideration of £11.1m, including costs of £0.5m. The acquisition has been accounted for using the acquisition method.
Viridor London Recycling Limited contributed revenues of £7.3m and a loss before tax of £0.5m for the period from 5 June 2009 to 31 March 2010. If the acquisition had occurred on 1 April 2009, Group revenues for the year would have been £627.9m and profit for the year would have been £41.2m. These amounts have been calculated after applying the Group's accounting policies and adjusting the results to reflect the provisional fair value adjustments.
The residual excess over the net assets acquired has been recognised as goodwill. The provisional goodwill is attributed to the profitability of the acquired business.
|
Book |
Provisional |
Fair |
|
|
Property, plant and equipment |
3.2 |
- |
3.2 |
|
Inventories |
0.1 |
- |
0.1 |
|
Receivables |
1.6 |
- |
1.6 |
|
Payables |
(0.8) |
- |
(0.8) |
|
Loans |
(1.2) |
- |
(1.2) |
|
Leases |
(0.3) |
- |
(0.3) |
|
Net assets acquired |
2.6 |
- |
2.6 |
|
Goodwill |
8.5 |
||
|
Total consideration |
11.1 |
||
|
Satisfied by: |
|||
|
Cash |
10.6 |
||
|
Directly attributable costs |
0.5 |
||
|
11.1 |
|||
|
Net cash outflow arising on acquisition |
|||
|
Cash consideration |
11.1 |
||
|
Cash and cash deposits acquired |
- |
||
|
11.1 |
On 31 July 2009 the entire issued share capital of Intercontinental Recycling Limited (now renamed Viridor Polymer Recycling Limited) was purchased by Viridor Waste Management Limited for a cash consideration of £4.7m, including costs of £0.5m. The acquisition has been accounted for using the acquisition method.
Viridor Polymer Recycling Limited contributed revenues of £6.9m and a loss before tax of £0.4m for the period from 31 July 2009 to 31 March 2010. If the acquisition had occurred on 1 April 2009, Group revenues for the year would have been £629.1m and profit for the year would have been £40.7m. These amounts have been calculated after applying the Group's accounting policies and adjusting the results to reflect the provisional fair value adjustments. These amounts have been calculated after applying the Group's accounting policies and adjusting the results to reflect the provisional fair value adjustments.
The residual excess over the net assets acquired has been recognised as goodwill. The provisional goodwill is attributed to the profitability of the acquired business.
|
Book |
Provisional Fair value |
Fair |
|
|
Property, plant and equipment |
3.1 |
- |
3.1 |
|
Inventories |
0.4 |
- |
0.4 |
|
Receivables |
1.1 |
- |
1.1 |
|
Payables |
(2.3) |
- |
(2.3) |
|
Taxation - deferred |
1.8 |
- |
1.8 |
|
Loans |
(3.8) |
- |
(3.8) |
|
Cash and cash deposits |
0.2 |
- |
0.2 |
|
Net assets acquired |
0.5 |
- |
0.5 |
|
Goodwill |
4.2 |
||
|
Total consideration |
4.7 |
||
|
Satisfied by: |
|||
|
Cash |
4.2 |
||
|
Directly attributable costs |
0.5 |
||
|
4.7 |
|||
|
Net cash outflow arising on acquisition |
|||
|
Cash consideration |
4.7 |
||
|
Cash and cash deposits acquired |
(0.2) |
||
|
4.5 |
Acquisitions since 31 March 2010
On 23 June 2010 Viridor acquired the entire issued share capital of the following subsidiaries of Reconomy (Acquisition) Limited:
Oakley Waste Management Limited
Basecall Limited
Alibone Recycling Limited
Anglia Recycling Limited
for a combined consideration of £5.7m (£23.8m after debt acquired). The acquisition will be accounted for using the acquisition method. Provisional goodwill of £6.2m arises on acquisition. This acquisition will be accounted for in the 2010/11 financial year.
|
Provisional |
Provisional fair value |
Provisional |
|
|
Other intangible assets |
0.2 |
(0.2) |
- |
|
Property, plant and equipment |
9.6 |
- |
9.6 |
|
Inventories |
0.1 |
- |
0.1 |
|
Receivables |
7.8 |
- |
7.8 |
|
Payables |
(17.7) |
(1.0) |
(18.7) |
|
Taxation - deferred |
(0.1) |
- |
(0.1) |
|
Cash |
0.8 |
- |
0.8 |
|
Net assets/(liabilities) acquired |
0.7 |
(1.2) |
(0.5) |
|
Goodwill |
6.2 |
||
|
Total consideration |
5.7 |
||
|
Satisfied by: |
|||
|
Cash |
5.7 |
||
|
Net cash outflow arising on acquisition |
|||
|
Cash consideration |
5.7 |
||
|
Cash and cash deposits acquired |
(0.8) |
||
|
4.9 |