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  Pearson Annual Report 1998    

Notes to the Accounts

   
 

30. Related parties

 

Associates Loans and equity advanced to associates during the year and at the balance sheet date are shown in note 13. Amounts falling due from partnerships and other associates are set out in note 16. Dividends receivable from partnerships and other associates are set out in note 13. Details of individually significant transactions are shown below.

Troll Communications LLC
During 1997 the Group sold its 44.1% interest in the equity of Troll Communications LLC. £2m in interest income on the subordinated debt and £1m dividend income on the preferred stock were earned in the period to 31 December 1997. As at 31 December 1997 no interest was outstanding and no dividend was outstanding.

Port Aventura SA
During the year the Group sold its 40.5% interest in the equity of Port Aventura SA. Management fees of £nil (1997: £2m) were earned in the period of which none (1997: £1m) was outstanding at the year end.

Channel 5 Television Group Ltd
The Group has a 24% economic interest in the equity of Channel 5 Television Group Ltd. During the year £32m of loans were repaid (1997: £47m advanced).

During the year the Group provided £24m (1997: £23m) of programming to Channel 5 Broadcasting Ltd, a wholly owned subsidiary of Channel 5 Television Group Ltd, and undertook transmission to the value of £2m (1997: £2m) for Channel 5 Engineering Services Ltd, a subsidiary of Channel 5 Television Group Ltd. At 31 December 1998 £6m was outstanding (1997: £6m).

European Channel Management Ltd
During the year the Group sold its 45% interest in European Channel Management Ltd. During the year the Group paid £1m (1997: £1m) for £6m (1997: £4m) of tax losses.

UK TV
The Group has a 20% interest in UK TV. During the year the Group provided programmes and services to the value of £1m (1997: £3m) none of which was outstanding at the year end (1997: £nil).

Grundy associates
During the year the Group received £6m (1997: £4m) for management fees, format rights and royalties from a number of associates of Grundy Worldwide Ltd, none of which (1997: £nil) was outstanding at the year end. No individual transactions were material to the Group.

Magyar-RTL
The Group has a 20% interest in Magyar-RTL. During the year £2m of loans were advanced (1997: £4m).

During the year the Group provided programmes and services to the value of £1m (1997: £nil) none of which was outstanding at the year end (1997: £nil).

Lazard Partnership
Details of the ownership structure and profit sharing arrangements are set out in note 13.

The Group periodically places funds on deposit with the Lazard Houses. The investments are made on an armís length basis and no transactions are individually material in the context of the Group treasury transactions. The Group also uses the Lazard Houses to provide professional advice. Fees for such services for the year to 31 December 1998 totalled £5m (1997: £4m).

Other
There were no transactions with directors and officers of the Company.

1998 Annual Report
* Introduction
* Chairman's statement
* Chief Executive's review
* Financial Review
* Financial Policy
* Report of the directors
* Personnel committee report
* Auditors' report
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Note of historical cost profits and losses
* Reconciliation of movements in equity shareholders' funds
* Principal subsidiaries and associates
* Five year summary
* Shareholder information
   
* Notes to the accounts

 

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