Notes to the Interim Report & Accounts
(unaudited)
6 Discontinued operations
Discontinued operations disclosed in the income statement consist of the Aerospace operations, which were sold to General Electric Company on 5 May 2007. The Aerospace operations comprised the Aerospace business segment previously reported and the microwave company previously reported in Specialty – Other.
During the period the proceeds of sale of the Aerospace business were adjusted following ongoing negotiations with the purchaser after completion, as laid out in the sale agreement. As a result, further proceeds were received and adjustments made to net assets. The resultant profit of £5.6m has been recorded within discontinued operations as a profit on disposal.
In addition, ongoing negotiations in respect of the transfer of Aerospace active pensioners have led to a reduction in the disposal provision (see note 15) of £1.3m; £2.0m of the pensions financing credit relates to the expected transfer and all these amounts are treated within discontinued operations as profit on disposal of Aerospace. A tax charge of £0.4m has been recorded.
Net cash outflows from investing activities of £5.1m are included within the consolidated cash flow statement.
The assets and liabilities of businesses held for sale on the 3 February 2007 balance sheet relate to the Aerospace operation.