Annual Report for the year ended 31 December 2008

28. deFeRRed inCome taX liaBilities
The movement on the deferred tax account is detailed below:
notes to tHe FinanCial statements CONTINuED
FOR THE YEAR ENDED 31 DECEMBER 2008
68 The evoluTion Group plc AnnuAl reporT & AccounTs 2008
2008 2007
£'000 £'000
NON-CuRRENT
At 1 January 340 459
Transferred to disposal group classified as held-for-sale (72) –
Deferred tax liability recognised on acquisition of intangibles (note 30) 1,662 –
income statement (credit) - amortisation of intangibles (139) (101)
change in tax rate from 30% to 28% movement in income statement – (17)
exchange differences – (3)
Transfer from deferred tax assets – 2
At 31 December 1,791 340
The deferred income tax liability relates to the recognition at acquisition of the intangible assets acquired. These intangible assets and the deferred income
tax liability are amortised over a total of 5 years.
29. PRoVisions FoR otHeR liaBilities and PRoVisions
2008 2007
£'000 £'000
AT 1 JANuARY 525 333
charge to income statement 238 192
AT 31 DECEMBER 763 525
The amount provided in respect of dilapidations in the current year relates to all offices of the Group’s subsidiaries.
30. BUsiness ComBinations
on 21 october 2008, the company acquired the private client investment management business from Kaupthing singer & Friedlander limited (in Administration)
(“KsF”) for a total consideration of £4,431,435.
Details of net assets acquired and goodwill are as follows:
PuRCHASE CONSIDERATION
cash paid 4,250
Acquisition expenses 181
TOTAL PuRCHASE CONSIDERATION 4,431
Fair value of net identifiable assets acquired (3,068)
GOODwILL 1,363
The assets and liabilities arising from the acquisition are as follows:
Provisional
fair value
(£'000)
intanginble assets
– Distribution channels 1,455
– customer relationships 4,481
Accruals (1,206)
Deferred tax liability on initial recognition of distribution channels and customer relationships (1,662)
net identifiable assets acquired 3,068
The revenue included in the consolidated income statement since 21 october 2008 contributed by singer & Friedlander was £1,711,561, generating a profit
of £178,037.
£'000