Notes to the financial statements
For the 52 weeks ended 1 March 2008
18. Investments in joint ventures and associates
| 2008 £m |
2007 £m |
|
|---|---|---|
| Opening | 9.2 | 0.4 |
| Reclassification to financial assets | (8.1) | – |
| Exchange differences | 0.9 | – |
| Share of profit after tax | 2.8 | 0.7 |
| Additions | 6.8 | – |
| Loan to joint venture | – | 8.1 |
| Disposals | (3.9) | – |
| Closing | 7.7 | 9.2 |
The Group’s interest in joint ventures consists of a 50% holding in Home Retail Group Personal Finance Limited, a company incorporated in England, and its interest in associates consists of a 33% shareholding in Ogalas Limited (which trades as ‘home store + more’), a company incorporated in the Republic of Ireland, which was acquired during the period for £6.8m. In addition, on 14 November 2007 the Group disposed of its 33% holding of AAGUS Financial Services Group NV, a company incorporated in The Netherlands, which was previously reported as an associate.
The Group’s share of the revenue of its joint venture for the 52 weeks ended 1 March 2008 is £0.8m (2007: £nil) and its share of the loss after tax is £1.2m (2007: £nil). At 1 March 2008, the Group’s share of the net liabilities of its joint venture amounted to £4.4m (2007: £nil), consisting of assets of £16.3m (2007: £8.1m) and liabilities of £20.7m (2007: £8.1m). No liability has been recognised in the Group’s balance sheet in respect of the joint venture, but the Group’s share of the accumulated losses has been taken against the carrying value of a loan made by the Group to the joint venture, which is now reported within other financial assets in note 26.
The Group’s share of the revenue of its associates for the 52 weeks ended 1 March 2008 is £4.4m (2007: £3.3m) and its share of profit after tax is £2.8m (2007: £0.7m). At 1 March 2008, the Group’s share of the net assets of its associates amounted to £7.7m (2007: £1.1m), consisting of assets of £8.2m (2007: £28.5m), which includes goodwill of £4.2m (2007: £nil), and liabilities of £0.5m (2007: £27.4m).
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