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.
Profit/(loss) on disposal of operation
| Year ended | Year ended |
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 | Year ended |
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 | Year ended |
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 | Year ended |
Investing activities | (6.2) | 19.9 |
Net cash (outflow)/inflow from investing activities | (6.2) | 19.9 |