Notes to the financial statements


9     DISCONTINUED OPERATIONS


No companies or businesses were classified as discontinued during the current year.

The aggregated balance sheet of the companies and businesses that were disposed of during the prior year at the date control passed to the purchaser was as follows:
  At disposal
2007
£m
ASSETS  
Non-current assets  
Goodwill 12.1
Other intangible assets 4.2
Property, plant and equipment 5.9
Deferred tax assets 2.9
  25.1
Current assets  
Inventories 5.2
Trade and other receivables 22.0
Current income tax asset 0.5
Cash and cash equivalents 5.4
  33.1
Total assets 58.2
   
EQUITY  
Capital and reserves attributable to the Company’s equity shareholders  
Retained earnings 3.9
Total equity 3.9
   
LIABILITIES  
Non-current liabilities  
Retirement benefit liabilities 26.6
Provisions and other liabilities and charges 4.9
Borrowings 0.2
  31.7
Current liabilities  
Trade and other payables 22.4
Borrowings 0.2
  22.6
Total liabilities 54.3
Total equity and liabilities 58.2

Comparative income statement figures for companies and businesses classified as discontinued in the prior year are as follows:

  2007
£m
Turnover 38.7
Cost of sales (20.6)
Gross profit 18.1
Operating costs (18.7)
Operating loss (0.6)
Finance costs (7.4)
Finance income 7.8
Loss before income tax (0.2)
Income tax expense (0.5)
Loss for the year from discontinued operations (0.7)

The cash flows from discontinued operations were as follows:

  2007
£m
Net cash flows used in operating activities (8.4)
Net cash flows used in investing activities (0.9)
Net cash flows used in financing activities (0.1)
  (9.4)

Profit on disposal

  2007
£m
Proceeds 41.5
Net assets sold (3.9)
Curtailment loss in pension schemes (1.8)
Provisions and other charges (10.7)
Costs of disposal (9.0)
Foreign exchange reserves released 0.2
  16.31
Loss recognised on assets and liabilities held for sale as at 31 March 2006 and disposed in 2007 (0.8)2
Adjustment to provisions in respect of prior year disposal 1.9
Profit on disposal 17.4
   
1 Profit on disposal in respect of the 2 September 2006 disposal (see note 11 of the 2007 Annual Report)
2 £1.1 million loss in respect of the AGM disposal, £0.2 million profit in respect of the SAC disposal and £0.1 million profit in respect of the EIF disposal (see note 11 of the 2007 Annual Report)

Net proceeds received were as follows:

  2007
£m
Cash received 41.5
Payments to pension schemes (10.0)
Cash divested (5.4)
Disposal costs (8.7)
Net proceeds 17.4
Reduction of banking facilities (13.0)
  4.4

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