During the year the Group spent £30.2m on the acquisitions of businesses. Individually the acquisitions are not considered material.
The acquisitions were made to strengthen the Group's network and to enhance the process offering in Canada, USA and Germany. The acquisitions fit well with the Group's automotive and general industrial strategy.
The transactions have been accounted for by the purchase method of accounting and are summarised below:
| Total
£m |
|---|
| Fair value of net assets acquired: | |
| Intangible fixed assets | 7.5 |
| Property, plant and equipment | 16.7 |
| Inventories | 0.2 |
| Trade and other receivables | 4.1 |
| Trade and other payables | (3.2) |
| Cash and cash equivalents | 0.2 |
| Deferred tax liabilities | (2.8) |
| Current tax liabilities | (0.4) |
| Bank loans | (2.3) |
| 20.0 |
| Goodwill | 10.4 |
| Total consideration | 30.4 |
| |
| Satisfied by: | |
| Cash consideration | 23.9 |
| Accrued consideration | 6.5 |
| Total consideration transferred | 30.4 |
| |
| Net cash outflow arising on acquisition: | |
| Cash consideration | 30.4 |
| Less: cash and cash equivalents acquired | (0.2) |
| 30.2 |
The accrued consideration remains unpaid until the purchase price adjustment, based on a review of working capital, is finalised.
The carrying value of inventories, trade and other receivables and trade and other payables approximates their fair value. Fair values of the acquired identifiable tangible and intangible assets are provisional, pending completion of the final valuations.
The gross contractual value of trade and other receivables was £4.1m. The best estimate at the acquisition date of the contractual cash flows not expected to be collected was £nil.
The goodwill arising on the acquisitions is attributable to the anticipated profitability of the Group's services in new markets and the anticipated future operating synergies from acquisitions. Goodwill of £2.7m is expected to be deductible for income tax purposes.
Acquisition-related costs (reported in exceptional items in note 5) amounted to £0.6m.
The acquired businesses contributed £4.6m revenue and £1.1m to the Group's operating profit for the period between the dates of acquisition and the balance sheet date.
If the acquisitions had been completed on the first day of the financial year, Group revenue would have been £615.3m and Group headline operating profit attributable to equity holders of the parent, stated prior to Group management charges, would have been £102.6m.