7 Discontinued operations

On 5 May 2007, the Group sold its Aerospace operations to General Electric Company. The Aerospace operations sold comprised the previously reported Aerospace business segment and a US microwave company. The disposal group was treated as a discontinued operation in the 2007 Annual Report and Accounts.

 

Year ended
31 July 2011
£m

Year ended
31 July 2010
£m

Consideration

 

19.9

Provisions and disposal costs

54.0

(3.5)

Pre-tax profit on disposal

54.0

16.4

 

 

 

Cash received from disposal of Aerospace operations

 

19.9

Disposal costs

(6.2)

 

Net cash (outflow)/inflow on disposal

(6.2)

19.9

 

The profit on disposal in 2011 arises from the resolution and time barring of certain disposal indemnities. The further consideration of £19.9m recognised in 2010 was received following settlement of prior year tax filings.

Financial information for the Aerospace operations after Group eliminations is presented below.

Results from discontinued operations

 

Year ended
31 July 2011
£m

Year ended
31 July 2010
£m

Profit on disposal

54.0

16.4

Tax credit (note 6)

25.0

 

Profit for the period

79.0

16.4

 

 

 

Earnings per share from discontinued operations – pence

 

 

Basic

20.2p

4.2p

Diluted

20.0p

4.1p

 

The tax credit of £25.0m reflects the resolution of the tax treatment of the disposal profits.

Cash-flows from discontinued operations

 

 

Year ended
31 July 2011
£m

Year ended
31 July 2010
£m

Profit before taxation (including profit on disposal of Aerospace operations)

 

54.0

16.4

Profit on disposal of discontinued operations

 

(54.0)

(16.4)

Net cash inflow from operating activities

 

 

 

 

 

Year ended
31 July 2011
£m

Year ended
31 July 2010
£m

Investing activities

(6.2)

19.9

Net cash (outflow)/inflow from investing activities

(6.2)

19.9

 


Smiths Group divisions:
Smiths Detection, Smiths Medical, John Crane, Smiths Interconnect, Flex-Tek

 

Smiths Group plc:
Registered office 2nd Floor, Cardinal Place, 80 Victoria Street, London SW1E 5JL, UK
Incorporated in England No. 137013
Copyright 2011 Smiths Group plc.
All rights Reserved | Legal Notice | Privacy Policy