Tesco 1998 Annual Report Download - page 40

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Turnover
Operating profit
Interest
Profit on sale of fixed assets
Profit before tax
Taxation
Profit after taxation
The Irish businesses purchased contributed £130m to the Group’s net operating cash flows, paid £10m in respect of net returns on
investments and servicing of finance, paid £10m in respect of taxation, had a cash outflow of £81m from financing and utilised £53m
for capital expenditure.
£m
731
21
(1)
2
22
13
9
3 8
Irish businesses
Polish chain
UK businesses
Fair values at acquisition, total purchase consideration and goodwill are analysed as follows:
Total purchase
consideration
£m
643
4
10
657
Fair value
balance sheet
£m
209
(2)
5
212
Goodwill
£m
434
6
5
445
The acquisition of the Irish businesses qualifies as a substantial transaction. As such the following additional analysis is provided for
the businesses acquired for the period from 15 September 1996 to 8 May 1997.
Cash consideration
Bank overdraft of acquired subsidiary undertakings
The consideration for the Polish businesses was for cash of which £1m was paid in the year and £3m is deferred until 26 March 1999.
For the UK businesses, £5m was raised in shares (see note 22) and £5m was for cash.
£m
498
145
643
Note 31 Acquisitions c o n t i n u e d
The outflow of cash for the purchase of the Irish businesses comprises:
Notes to the financial statements
c o n t i n u e d