|
|
Group
|
Own
shares
£000
|
|
Cost
At 1 April 1999
Additions
|
458
243
|
|
At 31 March 2000
|
701
|
|
Net book value
At 31 March 2000
|
701
|
|
At 31 March 1999
|
458
|
|
Company
|
Subsidiary
undertakings
£000
|
Own
shares
£000
|
Total
£000
|
Cost
At 1 April 1999
Additions
|
31,336
11,291
|
458
243
|
31,794
11,534
|
At 31 March 2000
|
42,627
|
701
|
43,328
|
Provision for impairment
At 1 April 1999 and 31 March 2000
|
4,338
|
–
|
4,338
|
Net book value
At 31 March 2000
|
38,289
|
701
|
38,990
|
At 31 March 1999
|
26,998
|
458
|
27,456
|
Investments in own shares comprise ordinary shares held by the Trustee of the Mid Kent Holdings
Employee Benefit Trust for the Group's long term share incentive scheme (see Remuneration report).
During the year, the Trustee purchased 40,861 ordinary shares (1999: 28,500) in the Company for a
consideration of £243,000 (1999: £223,000). The Trustee has effectively waived the rights to dividends.
The number and market value of the ordinary shares held by the Trustee at 31 March 2000
was 103,906 (1999: 63,045) and £493,000 (1999: £399,000) respectively.
|
On 5 November 1999, the Company acquired the entire share capital of Inenco Limited. The consideration
including fees and amounts contingent upon trading performance during the period from 1 May 1999
to 31 March 2002 was £11,260,000.
The directors' provisional assessment of the fair value of the net assets acquired was £433,000.
No accounting policy alignment adjustments were made.
|
|
Book value
£000
|
Fair value
adjustments
£000
|
Fair value
£000
|
Tangible fixed assets
Stocks and work in progress
Debtors
|
2,123
881
2,704
|
–
–
(47)
|
2,123
881
2,657
|
Creditors
|
5,708
(5,228)
|
(47)
–
|
5,661
(5,228)
|
Net assets
|
480
|
(47)
|
433
|
Goodwill arising on acquisition
|
10,827
|
|
11,260
|
Discharged by:
Cash
Costs associated with acquisition
|
9,768
230
|
Unsecured loan notes
Deferred consideration
|
9,998
962
300
|
|
11,260
|
Goodwill arising on the acquisition has been capitalised and will be amortised over its useful economic
life, which is considered by the directors to be 20 years.
|
For the period from 1 May 1999 to 5 November 1999 the Inenco group incurred a loss after taxation of
£9,000. For the 11 months ended 31 March 2000 the Inenco group made a profit after taxation of £600,000.
|
The Company’s interests in its principal subsidiary undertakings which, other than the Inenco
Group Limited which is held through an intermediate holding company, are all directly held and
registered in England and Wales, were:
|
Subsidiary undertaking |
Business |
Percentage
of ordinary
share capital
|
Mid Kent Water plc
Eclipse Scientific Limited
Aspland and James Limited
Inenco Group Limited
Halcrow Water Services Limited
|
Water supply
Scientific services
Scientific services
Utilities consultancy
Engineering Consultancy
|
99.9
100
100
100
51
|
|
