Note 13
13. Investments
(a) Interests in joint ventures
| Trader Media Group | Emap | Other | Total |
|---|---|---|---|---|
At 31 March 2008 |
|
|
|
|
– Net (liabilities)/assets | (331.6) | (8.0) | 8.0 | (331.6) |
– Goodwill | – | 8.4 | – | 8.4 |
– Preference shares | 102.0 | 235.4 | – | 337.4 |
– Loans | 145.3 | 72.1 | – | 217.4 |
| (84.3) | 307.9 | 8.0 | 231.6 |
Transfer to subsidiary | – | – | (8.0) | (8.0) |
Interest on loans and preference shares rolled up | 57.8 | 9.6 | – | 67.4 |
Profit and loss account – continuing operations | (9.2) | (58.5) | 0.4 | (67.3) |
Statement of recognised income and expense | (3.8) | (0.6) | (0.4) | (4.8) |
At 29 March 2009 |
|
|
|
|
– Net liabilities | (344.6) | (67.1) | – | (411.7) |
– Goodwill | – | 8.4 | – | 8.4 |
– Preference shares | 137.6 | 245.0 | – | 382.6 |
– Loans | 167.5 | 72.1 | – | 239.6 |
| (39.5) | 258.4 | – | 218.9 |
On 1 October 2008, the Group acquired the remaining 50% interest in Trafford Park Printers Limited for £1.6 million and, in accordance with IAS 27 “Consolidated and separate financial statements”, the company is now accounted for as a subsidiary.
The Group’s share of amounts relating to joint ventures
| Trader Media Group | Emap | Other | Total |
|---|---|---|---|---|
Non-current assets | 489.1 | 311.1 | – | 800.2 |
Current assets | 56.8 | 37.2 | – | 94.0 |
Current liabilities | (49.5) | (157.5) | – | (207.0) |
Non-current liabilities | (841.0) | (257.9) | – | (1,098.9) |
Net liabilities | (344.6) | (67.1) | – | (411.7) |
| 148.3 | 84.2 | 6.5 | 239.0 |
Operating profit before exceptional items, restructuring costs and amortisation of intangible assets | 55.5 | 29.0 | 0.8 | 85.3 |
Operating profit after exceptional items, restructuring costs and amortisation of intangible assets | 48.9 | 10.9 | 0.8 | 60.6 |
Net interest payable and similar charges | (84.7) | (69.0) | (0.4) | (154.1) |
Gain on debt buy-back and profit on disposal of subsidiary | 19.6 | – | – | 19.6 |
(Loss)/profit before taxation | (16.2) | (58.1) | 0.4 | (73.9) |
Taxation | 7.0 | (0.4) | – | 6.6 |
Share of post tax results from joint ventures | (9.2) | (58.5) | 0.4 | (67.3) |
Exceptional items totalling £19.6 million shown above includes the gain on debt buy-back and the profit on disposal of subsidiary at Trader Media Group.
The share of post tax results shown above for Trader Media Group and Emap includes a charge for audit fees from the Group’s auditors of £0.2 million and £0.1 million respectively.
The Group's share of joint ventures' capital commitments are included in note 30 on page 85.
The joint ventures have no significant contingent liabilities to which the Group is exposed and nor has the Group significant contingent liabilities in relation to its interest in its joint ventures.
| Trader Media Group | Emap | Other | Total |
|---|---|---|---|---|
At 2 April 2007 |
|
|
|
|
– Net assets | – | – | 6.5 | 6.5 |
– Loans | – | – | 1.0 | 1.0 |
| – | – | 7.5 | 7.5 |
Part disposal of TMG – reclassification from subsidiary | (52.1) | – | – | (52.1) |
Acquisitions | – | (8.0) | – | (8.0) |
Goodwill | – | 8.4 | – | 8.4 |
Repayment of loans | – | – | (3.5) | (3.5) |
Preference shares | – | 235.4 | – | 235.4 |
Loans advanced | – | 72.1 | 2.5 | 74.6 |
Profit and loss account – continuing operations | (27.5) | – | 0.4 | (27.1) |
Statement of recognised income and expense | (4.7) | – | 1.1 | (3.6) |
At 30 March 2008 |
|
|
|
|
– Net (liabilities)/assets | (331.6) | (8.0) | 8.0 | (331.6) |
– Goodwill | – | 8.4 | – | 8.4 |
– Preference shares | 102.0 | 235.4 | – | 337.4 |
– Loans | 145.3 | 72.1 | – | 217.4 |
| (84.3) | 307.9 | 8.0 | 231.6 |
On 20 March 2008, the Group acquired a 29.54% interest in Emap plc for £307.9 million of which £209.0 million was paid in early April 2008 to Eden Bidco Limited, a joint venture company owned by Guardian Media Group plc and Apax Partners, en route for payment to Emap plc shareholders. A further £1 million in connection with this transaction is included within other debtors.
In accordance with IAS 31, “Interests in joint ventures” and the shareholders’ agreement, Emap is being accounted for as a joint venture using the equity method of accounting.
On 8 June 2007, the Group disposed of 49.9% of its interest in its subsidiary Trader Media Investments Limited retaining a 50.1% interest. In accordance with IAS 31, ”Interests in joint ventures” and the shareholders’ agreement, the remaining interest is accounted for as a joint venture using the equity method of accounting.
The Group’s share of amounts relating to joint ventures
| Trader Media Group | Emap | Other | Total |
|---|---|---|---|---|
Non-current assets | 485.2 | 373.1 | 26.6 | 884.9 |
Current assets | 45.0 | 84.2 | 5.8 | 135.0 |
Current liabilities | (83.2) | (176.4) | (4.6) | (264.2) |
Non-current liabilities | (778.6) | (288.9) | (19.8) | (1,087.3) |
Net (liabilities)/assets | (331.6) | (8.0) | 8.0 | (331.6) |
| 128.5 | – | 83.4 | 211.9 |
Expenses | (89.4) | – | (82.0) | (171.4) |
Interest | (64.6) | – | (0.9) | (65.5) |
(Loss)/profit before taxation | (25.5) | – | 0.5 | (25.0) |
Taxation | (2.0) | – | (0.1) | (2.1) |
Share of post tax results from joint ventures | (27.5) | – | 0.4 | (27.1) |
The Group’s share of joint ventures’ capital commitments are included in note 30 on page 85.
(b) Interests in associates
| 2009 | 2008 |
|---|---|---|
At 31 March 2008 |
|
|
– Net assets excluding goodwill | 7.1 | 4.0 |
– Goodwill | 0.3 | 0.7 |
| 7.4 | 4.7 |
Additions |
|
|
– Net assets (transfer from amounts owed by related parties) | – | 0.4 |
– Net assets | – | 3.4 |
|
|
|
– Net assets | – | (0.1) |
– Net assets (transfer to debtors) | – | (0.3) |
|
|
|
– Net assets | (3.0) | – |
– Goodwill | (0.3) | (0.4) |
| 0.1 | (0.3) |
At 29 March 2009 |
|
|
– Net assets excluding goodwill | 4.2 | 7.1 |
– Goodwill | – | 0.3 |
| 4.2 | 7.4 |
The Group’s share of amounts relating to associates
| 2009 | 2008 |
|---|---|---|
Total assets | 8.9 | 13.2 |
Total liabilities | (4.7) | (6.1) |
Turnover | 15.5 | 16.2 |
Share of post tax profit/(losses) of associates before exceptional items | 0.1 | (0.3) |
A list of principal subsidiary undertakings, joint ventures and associates is given in note 33. The associates have no significant contingent liabilities to which the Group is exposed and nor has the Group significant contingent liabilities in relation to its interest in its associates. The associates have no significant capital commitments.
(c) Other financial assets
| 2009 | 2008 |
|---|---|---|
At 31 March 2008 | 1.8 | 1.5 |
Additions at cost | 0.1 | 0.3 |
Reclassification – debtors | (0.4) | – |
At 29 March 2009 | 1.5 | 1.8 |
|
|
|
Unlisted shares | 0.2 | 0.3 |
Term deposits/loans | 1.3 | 1.5 |
| 1.5 | 1.8 |
