The divestment of the Services Segment was completed on 16 August 2013 for sale proceeds of £91.2 million. The costs to sell were £1.6 million (of which £1.5 million was incurred in the prior year), with an associated tax deduction of £0.1 million.
The Services businesses constituted a reporting segment in accordance with IFRS 8.
The results of the discontinued operations included in the profit for the prior year are set out below. The Segment was classified as discontinued operations and as held for sale at 30 June 2013.
Profit for the Year from Discontinued Operations
|Cost of sales||—||(44,519)|
|Net finance expense||—||—|
|Profit before taxation from operating activities||—||1,316|
|Income tax expenses||—||(296)|
|Profit for the year from operating activities||—||1,020|
|Profit on disposal and related expenses||—||38,711|
|Tax on profit on disposal and related expenses||—||(100)|
|Total profit for the year from discontinued operations attributable to owners of the parent||—||39,631|
* Non-underlying items comprise amortisation of acquired intangibles and rationalisation costs.
See note 10 for the Earnings per Share split between continued and discontinued operations.
Cash Flows from Discontinued Operations
|Net cash outflow from operating activities||—||(14,210)|
|Net cash inflow from investing activities||—||89,626|
|Net cash outflow from financing activities (including repayment of inter company funding)||—||—|
Effect of the Disposal on the Financial Position of the Group
|Property, plant and equipment||(1,677)|
|Trade and other receivables||(73,330)|
|Trade and other payables||55,569|
|Net assets sold||(52,382)|
|Working capital adjustment||3,702|
|Expenses related to disposal (including those accrued in the previous year)||(1,576)|
|Net cash inflow||89,626|