Annual Report 2016 | Page 75

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 72 112 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. 73