Annual Report 2016
Notes to the Financial Statements
25
Operating Lease Commitments
At 31 March 2016 the Group and the Company had the following annual commitments under non-cancellable operating leases:
Group 2016 2016 2015 2015
Buildings Other Buildings Other
£’000 £’000 £’000 £’000
Operating leases which expire:
within one year 178 560 327 649
between two and five years
387
1,874
203
1,848
after five years
—
—
69
—
565 2,434 599 2,497
Company
2016
2015
Motor
Motor
Vehicles
Vehicles
£’000
£’000
Operating leases which expire:
within one year
24
26
between two and five years
48
86
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26 Acquisitions
On 10 June 2015, Office Watercoolers Limited acquired the entire issued ordinary share capital of Freshwater Coolers Plc, a provider of water cooler
units to commercial customers.
The acquisition method of accounting has been adopted.
A summary of the acquisition, including the consideration, the assets and liabilities acquired (both based on the provisional fair values), the related
goodwill and the impact of the transaction on group cash flow and net debt are set out below:
Total
£’000
Consideration:
Cash consideration
3,977
Book value of net liabilities acquired:
Tangible fixed assets
Stocks
Debtors
Cash at bank and in hand (net)
Creditors and provisions (net)
423
63
589
226
(1,324)
Net liabilities (book value and provisional fair value)
(23)
Goodwill on acquisition
4,000
Cash consideration paid in the year
Cash acquired (net)
3,977
(226)
Net cash outflow and increase in net debt from acquisition transaction in the year
3,751
There was no material difference between the book value of the net liabilities 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 2016, due to
additional cash payments including deferred and contingent consideration, made in the year to 31 March 2016 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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