Notes to the Financial Statements
27 Acquisitions
On 2 July 2014, Hydrosave UK Limited acquired the trade and certain assets of Global Water Conservation Limited, a water treatment business based in
the South of England.
On 27 February 2015, Echo Managed Services Limited acquired the entire issued ordinary share capital of Grosvenor Services Group Limited, a
specialist utility debt recovery services company based in Sheffield.
The acquisition method of accounting has been adopted.
A summary of the acquisitions, including the consideration, the assets and liabilites acquired (both based on the provisional fair values), the related
goodwill and the impact of the transactions on group cash flow and net debt are set out below:
Total
£’000
Consideration:
Cash consideration
Deferred consideration
Acquistion costs
3,755
75
19
3,849
Book value of net assets acquired:
Tangible fixed assets
Stocks
Debtors
Cash at bank and in hand (net)
Creditors and provisions (net)
44
13
581
475
(682)
Net assets (book value and fair value)
431
Goodwill on acquisition
3,418
Cash consideration paid in the year (including acquisition expenses)
Cash acquired (net)
3,774
(475)
Net cash outflow and increase in net debt in the year
3,299
There was no material difference between the book value of the net assets acquired and their provisional fair value.
The cash consideration reported above differs to that reported in the Consolidated Cash Flow Statement for the year ended 31 March 2015, due to
additional cash payments including deferred and contingent consideration, made in the year by the Group in respect of prior year acquisitions.
The above goodwill is being amortised over an estimated useful economic life of 10 years.
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