1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Notes to the Consolidated Financial Statements continued

for the year ended 31 December 2007

39 Disposal

Disposal of subsidiary
On 25 July 2007, the Group disposed of its subsidiary in Greece, Olympic Commercial and Tourist Enterprises SA. The net consideration of €14.4 million is after deducting a warranty provision not settled at the balance sheet date. The net assets at disposal were €23.2 million and accordingly the total loss on disposal is €8.8 million. A goodwill impairment charge of €7.1 million was recorded prior to the disposal. The loss on disposal and the goodwill impairment are excluded from the underlying result.

The financial results and cash flows of the discontinued operation in the current year (up to the date of disposal) and the prior year are as detailed below:

  2007   2006
  Underlying1   Amounts excluded from underlying2   Total   Underlying1   Amounts excluded from underlying2   Total
Income Statement €m   €m   €m   €m   €m   €m
Revenue 48.7   –   48.7   81.3   –   81.3
Operating profit/(loss) 7.9   (15.9)   (8.0)   12.6   –   12.6
                       
Profit/(loss) before taxation 2.4   (15.9)   (13.5)   5.4   –   5.4
Taxation 1.1   –   1.1   (2.4)   –   (2.4)
Profit/(loss) after taxation 3.5   (15.9)   (12.4)   3.0   –   3.0
Balance Sheet at date of disposal   €m
Non-current assets    
Goodwill (see Note 10)   0.5
Other intangible assets   0.2
Vehicles (see Note 12)   124.9
Property, plant and equipment (see Note 13)   2.4
    128.0
     
Current assets    
Trade and other receivables:    
– Repurchase vehicles   102.0
– Other   25.9
Inventories   0.2
Net current tax assets   0.1
Cash and cash equivalents   2.4
    130.6
     
     
Current liabilities    
Trade and other payables   (28.4)
Borrowings   (196.7)
    (225.1)
     
Non-current liabilities    
Deferred tax (see Note 16)   (8.5)
Provisions (see Note 22)   (0.6)
Retirement benefit obligations(see Note 23)   (1.2)
    (10.3)
     
     
Net assets   23.2
     
Net disposal proceeds at date of disposal   22.2
Warranty provision   (7.8)
Net consideration   14.4
Net assets disposed   (23.2)
Loss on disposal   (8.8)
     
    2007   2006
Cash flow   €m   €m
Operating profit   7.9   12.6
Reverse depreciation on property, plant and equipment   9.7   16.3
Reverse amortisation of other intangible assets   –   0.1
Reverse adjustments arising on differences between sales proceeds and depreciated amounts   –   (1.1)
Reverse non-cash operating lease charge on manufacturer repurchase contracts   8.8   14.6
Payments with respect to manufacturer repurchase contracts   (35.8)   (34.4)
Receipts with respect to manufacturer repurchase contracts   12.5   13.9
Increase in receivables   (2.3)   (5.2)
(Decrease)/increase in payables   (0.7)   0.8
Increase in provisions   –   0.2
Increase in retirement benefit obligations   0.1   0.5
Net cash generated from operating activities before taxation   0.2   18.3
Taxation   –   (1.0)
Net cash generated from operating activities   0.2   17.3
Net cash used in investing activities   (17.2)   (24.3)
Net cash generated from financing activities   13.0   8.2
(Decrease)/increase in cash and cash equivalents   (4.0)   1.2
Cash and cash equivalents at 1 January   6.4   5.2
Cash and cash equivalents at date of disposal/31 December   2.4   6.4