As part of a strategic review in the current financial year, the Group disposed of €1.3m of net assets with respect to its non-core Tipperary Water Cooler business for an initial consideration of €7.4m. Further consideration may be payable dependent on further revenue targets being achieved. Transaction costs of €0.3m were also incurred (included in the cash flows from operating activities) resulting in a profit on disposal of €5.8m (note 5).
The net identifiable assets disposed were as follows:
Asset value on disposal €m | |||
Non-current assets | |||
Property, plant & equipment (note 11) | 0.9 | ||
Leased right-of-use assets (note 19) | 0.4 | ||
Total non-current assets | 1.3 | ||
Current assets | |||
Cash | 0.5 | ||
Inventories | 0.1 | ||
Trade & other receivables | 0.3 | ||
Current income tax asset | 0.1 | ||
Current assets | 1.0 | ||
Non-current liabilities | |||
Lease liabilities (note 19) | (0.2) | ||
Non-current liabilities | (0.2) | ||
Current liabilities | |||
Lease liabilities (note 19) | (0.2) | ||
Trade & other payables | (0.6) | ||
Current liabilities | (0.8) | ||
Total net identifiable assets disposed | 1.3 | ||
Total consideration | 7.4 | ||
Net identifiable assets disposed | (1.3) | ||
Transaction costs incurred | (0.3) | ||
Profit on disposal | 5.8 | ||
Satisfied by: | |||
Cash consideration received | 7.2 | ||
Deferred consideration | 0.2 | ||
Total consideration | 7.4 | ||
Analysis of cash flows on disposal: | |||
Cash consideration received | 7.2 | ||
Cash and cash equivalents disposed of | (0.5) | ||
Net cash inflow | 6.7 |
Year ended 29 February 2020
In the prior financial year, the Group disposed of its investment and non-controlling interest in Peppermint Events Limited which it acquired in FY2019 as part of the acquisition of Matthew Clark (Holdings) Limited and Bibendum PLB (Topco) Limited and their subsidiaries (together “Matthew Clark and Bibendum”). A loss of €1.7m was incurred on disposal.
On disposal of Peppermint Events Limited the Group reversed the adjustment to Goodwill amounting to €0.6m for non-controlling interest.
Acquisition of equity accounted investments
Details of the Group’s equity accounted investments in the current and prior financial year are outlined in note 13.