BOC Report and accounts 2005 - Alle jaarverslagen

Notes to the financial statements 115
13. Fixed assets – investments
a) Group summary
Group Group Group Provisions
share of Negative share of loans to Other against
Goodwill net assets of goodwill of net assets of joint ventures investments other
of associates associates joint ventures joint ventures and associates at cost investments Total
£ million £ million £ million £ million £ million £ million £ million £ million
At 1 October 2004 5.9 46.5 (40.8) 299.5 202.6 35.7 (1.2) 548.2
Exchange adjustment 0.1 2.4 (0.8) 12.3 4.1 0.4 0.1 18.6
Acquisitions/additions 1 – 36.2 0.5 34.8 39.0 3.7 (0.3) 113.9
(Charged)/credited to profit (0.4) – 2.3 – – – – 1.9
Disposals/repayments/transfers – (20.2) – (0.6) (18.6) (24.4) 0.6 (63.2)
Increase in net assets – 10.2 – 1.3 – – – 11.5
Japan Air Gases capital restructuring – – – (17.0) – – – (17.0)
At 30 September 2005 5.6 75.1 (38.8) 330.3 227.1 15.4 (0.8) 613.9
1. The increase in the Group share of net assets of associates relates principally to the Afrox hospitals business becoming an associate during the year.The increase in the Group share of net assets
of joint ventures and loans to joint ventures relates principally to Compania de Nitrogeno de Cantarell in Mexico.
i) Joint ventures
The cost of investment in joint ventures was £262.2 million (2004: £259.5 million) and the attributable profit before tax was £81.8 million (2004:
£79.5 million, 2003: £60.4 million).
The Group’s share of net assets of joint ventures at 30 September 2005 can be analysed as follows:
Share of Negative
net assets goodwill Total
£ million £ million £ million
Share of fixed assets 860.5 – 860.5
Negative goodwill – (38.8) (38.8)
Share of current assets 280.5 – 280.5
1,141.0 (38.8) 1,102.2
Share of liabilities due within one year (232.2) – (232.2)
Share of liabilities due after more than one year (578.5) – (578.5)
(810.7) – (810.7)
Share of net assets 330.3 (38.8) 291.5
The negative goodwill represents the excess of the fair value of the net assets over the fair value of the purchase consideration and is being amortised
over 17 years.
The Group’s share of the borrowings of joint ventures at 30 September 2005 was:
Gross Net
borrowings borrowings
Compania de Nitrogeno de Cantarell 1 96.7 68.2
Japan Air Gases 73.0 71.5
Elgas 38.8 37.4
Other joint ventures 81.4 63.5
Total 289.9 240.6
1. Excluding loans from joint venture partners.
Of the net borrowings, £230.0 million was non-recourse.
ii) Associates
The cost of investment in associates was £45.8 million (2004: £23.9 million) and the attributable profit before tax was £16.5 million (2004: £12.2 million,
2003: £10.4 million).
The Group’s share of the net borrowings of associates was £45.4 million (2004: £6.9 million), all of which was non-recourse.This includes
£41.6 million for the Group’s South African subsidiary‘s share of the net borrowings of Life Healthcare Group (Pty) Limited.