Tesco 2003 Annual Report Download - page 55

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TESCO PLC 53
NOTE 33 Acquisitions continued
T&S Stores PLC
T&S Stores PLC was acquired on 6 January 2003 and included in the consolidated balance sheet at 22 February 2003.
The purchase consideration was £366m. The net assets of T&S Stores PLC on acquisition and the provisional fair values
were as follows:
Adjustments
Book values to align Fair values
of acquired accounting at date of
business policies Revaluations acquisition
£m £m £m £m
Goodwill 95 – (95) –
Fixed assets 123 (10) (5) 108
Stock 67 (5) – 62
Debtors 24––24
Cash 24––24
Creditors (281) – – (281)
Provisions for liabilities and charges (10) 3 – (7)
Net assets/(liabilities) acquired 42 (12) (100) (70)
Consideration
Shares 358
Cash 7
Other 1
366
Goodwill 436
The principal fair value adjustments made to the net book values of the assets and liabilities of T&S Stores PLC comprise the
revaluation of freehold property to market value, based on valuations obtained from independent experts. Adjustments have
also been made to align accounting policies for tangible fixed assets and stock. Deferred tax has been provided on these
adjustments where appropriate.
For the year ended 31 December 2001,T&S Stores PLC reported an audited profit after tax and minority interest
of £24m and for the period ended 5 January 2003, an unaudited provisional loss after tax and minority interest of £11m,
based on its then accounting policies.
Of the provisions for liabilities noted in the tables above, £nil was provided by HIT for reorganisation in the year
up to acquisition, and £nil provided by T&S Stores PLC.
Other acquisitions
In respect of other acquisitions in the year, the book value of net assets acquired was £5m. In the Directors’ opinion, the book
value of the net assets acquired is not materially different from their fair value. Total consideration was £17m, of which £12m
was cash.This resulted in goodwill of £12m.
notes to the financial statements continued