Annual report 2001 - GL events

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4-2-4 Notes to the consolidated financial statements at 31 December 2001
Unless otherwise indicated, the following information is
expressed in thousands Euros. The notes below form an
integral part of the consolidated financial statements for
the (12 month) period ended 31 December 2001. The
consolidated financial statements were approved by the
Board of Directors on 4 March 2002.
Note 1
Significant events and Pro forma information
The major events of the year are the following :
• As part of the group’s tendency towards a greater globalization and a deeper penetration in the events market :
acquisition of the British company Owen Brown,
• Disposal of the non-trading real estate companies held by Générale Location,
• Development of the activity of engineering and communication by event with the integration of Package,
• Additional shareholding up to 100 % in the company Secil.
Générale Location acquired the company Owen Brown,
major player on the British market. Created in 1913,
Owen Brown specializes in the installation and rental of
temporary structures.
Finalization of the sale of Générale Location’s real estate.
SCI 88, which holds the following non-trading real
estate investment companies : Le Favier 92, Prisma 94,
Raspail Brignais, Hall 96 and at the same time 45% of
the non-trading real estate investment company Vachon
Lisses was sold on 30 June 2001 to the company
Polygone SA. Taking into account the consolidation of
the incomes of these companies until 30 June 2001, the
capital gain due to the sale recorded in the exceptional
profit / (loss) comes to 0.6 m€, the tax on the corporate
capital gain being 0.3 m€.
In October, Générale Location took over majority interest
in Package Organisation, a company held up to then by
its principal shareholder Groupe Polygone. This company
has three subsidiaries, CEE, Centre Infobatir and Norexpo.
Operating profit for 2001 is influenced by the following
two elements :
• Economic situation for short-term rental of structures :
the slow-down of the rotation rate of the structures
invested for the Sydney Olympic Games, has for effect
an operation loss of 1.5 m€. The actions launched in
term of logistics, commercial and organizational
operations should break even starting 2002.
• Structural for venue management : following the
increase at 100% of the shareholding interest in the
company Secil, the company which operates the
Convention Center of Lyon, the remuneration of the
owner, previously paid with dividend, starting the year
2001 was paid via a rent which exercises an impact on
the operating charges for 1.1 m€ ; this last item is then
withdrawn from the pro forma presentation of the
income statement.
Pro forma consolidated income statement is presented
below. It includes for each of the two years the following
variations :
• for the year 2000 :
- Polygone Maroc originally consolidated in the first sixmonth
is cancelled in its entirety.
- the effects due to the deconsolidation of Morrocco and
Spain are cancelled.
• For the year 2001 :
- cancellation of the companies acquired in 2001, this
concerns Owen Brown and Package Organisation with its
three subsidiaries, CEE, Centre Infobatir, and Norexpo.
- the companies acquired in 2000 are accounted for in
2001 at the same periods as those of the year 2000 ; the
following companies are concerned : SF Protection, ISF,
Standard Decoration, Team Legend, and GL Belgium.
Note that the companies created in 2001 are not
adjusted,
- the non-trading real estate companies sold the 30th of
June 2001 are taken into account for the 12 months of
the year.
- the rent paid by Secil to run the operation of the
Convention Center of Lyon is cancelled net of tax and
compensated by the result of minority interest,
- cancellation of the financial expenses (at 4.5% rate )
net of tax, corresponding to the disburserment of the
shares of companies acquired in 2001.