Annual Report and Accounts 2006
Notes to the Financial Statements
17. Investment in associates
(a) Analysis of components
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Shares in associated undertakings – Listed | – | 50 | 27 |
| Shares in associated undertakings – Unlisted | 22 | 185 | 164 |
| Total net book value of associates | 22 | 235 | 191 |
| Loans to associated undertakings | – | 137 | 133 |
| 22 | 372 | 324 |
Following the acquisition of further shares in Cadbury Nigeria and its transfer to a subsidiary, the fair value of shares in listed associated undertakings is £nil (2005: £136 million; 2004: £107 million). Details of the principal associated undertakings are set out in Note 36.
(b) Analysis of movements in associated undertakings
| Listed £m |
Unlisted £m |
Loans to associates £m |
Total £m |
|
|---|---|---|---|---|
| Cost/carrying value at 2 January 2005 | 16 | 96 | 133 | 245 |
| Exchange rate adjustments | 1 | 6 | 14 | 21 |
| Transfer to discontinued operations | – | (11) | (10) | (21) |
| Additions | 17 | 16 | – | 33 |
| Cost/carrying value at 1 January 2006 | 34 | 107 | 137 | 278 |
| Exchange rate adjustments | (1) | (6) | (9) | (16) |
| Additions | – | – | – | – |
| Transfer to investment in subsidiary | (33) | (82) | (128) | (243) |
| Cost/carrying value at 31 December 2006 | – | 19 | – | 19 |
| Share of reserves at 2 January 2005 | 11 | 68 | – | 79 |
| Exchange rate adjustments | 2 | 15 | – | 17 |
| Share of profit from operations | 10 | 47 | – | 57 |
| Share of interest | (2) | (14) | – | (16) |
| Share of taxation | (2) | (11) | – | (13) |
| Dividends received | (3) | (8) | – | (11) |
| Transfer to discontinued operations | – | (19) | – | (19) |
| Share of reserves at 1 January 2006 | 16 | 78 | – | 94 |
| Exchange rate adjustments | (1) | (7) | – | (8) |
| Share of profit from operations | – | 12 | – | 12 |
| Share of interest | – | (5) | – | (5) |
| Share of taxation | – | – | – | – |
| Dividends received | – | (6) | – | (6) |
| Recognition of historical balance sheet overstatement1 | (23) | – | – | (23) |
| Other recognised income and expense items | (2) | – | – | (2) |
| Transfer to investment in subsidiary | 10 | (69) | – | (59) |
| Share of reserves at 31 December 2006 | – | 3 | – | 3 |
| Net book value at 2 January 2005 | 27 | 164 | 133 | 324 |
| Net book value at 1 January 2006 | 50 | 185 | 137 | 372 |
| Net book value at 31 December 2006 | – | 22 | – | 22 |
1 Recognition of historical balance sheet overstatement relates to Cadbury Nigeria.
The Group's investment in Camelot Group plc, the UK National Lottery Operator, is included in unlisted associated undertakings. Camelot has certain restrictions on dividend payments. In particular it requires the prior consent of the Director General of the National Lottery to declare, make or pay a dividend in excess of 40% of profit after tax for any financial year.
(c) Additional associated undertaking disclosures
Selected income statement and balance sheet headings for associated undertakings of continuing operations are as follows:
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Revenue1 | 5,449 | 6,184 | 5,949 |
| (Loss)/profit for the period1 | (5) | 73 | 71 |
| Non-current assets | 100 | 348 | 322 |
| Current assets | 307 | 594 | 494 |
| Current liabilities | (319) | (686) | (620) |
| Non-current liabilities | (6) | (531) | (484) |
1 Includes CSBG until 2 May 2006 and Cadbury Nigeria until 20 February 2006 from which point the entities ceased to be associates and were accounted for as subsidiaries.