Notes to the accounts
30 Disposals
The most significant disposal transactions during the period aside from the sale of the group’s Aerospace operations were the sale of the Group’s bearing lubrication business to AB SKF in August 2006 and the automotive seals manufacturing business to Cyclam Holdings LLC on 31 July 2007.
The Group has also released provisions held in respect of disposals made in prior years, following determination of the warranties and other liabilities provided for at the time of disposal.
|
|
£m |
|
Gross consideration |
16.2 |
|
Less: costs of disposal |
(2.9) |
|
Less: cash/borrowings of operations disposed |
(4.2) |
|
Net consideration received |
9.1 |
|
Foreign exchange recycled to the income statement on disposal |
(0.8) |
|
Net assets excluding retained liabilities at date of sale |
|
|
Intangible assets |
0.2 |
|
Property, plant and equipment |
1.2 |
|
Inventory |
7.8 |
|
Receivables |
5.1 |
|
Liabilities |
(3.7) |
|
Net assets |
10.6 |
|
Provision for retained liabilities |
6.0 |
|
Net assets and retained liabilities |
16.6 |
|
Deficit of net assets, costs and expenses over proceeds |
(8.3) |
|
Disposal provisions in excess of liabilities settled – now released |
3.1 |
|
Loss on disposal of businesses |
(5.2) |
Consideration of US$6m is receivable in 2010 in respect of the automotive seals disposal. No asset has been recognised because this consideration is contingent on the successful restructuring of the manufacturing business by the acquirer.