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  Pearson Annual Report 1998    

Notes to the Accounts

   
 

26. Disposals

 

  1998 1997
ALL FIGURES IN MILLIONS
 

Mindscape inc

Pearson New Entertainment

The Tussauds group

Other

Total

Total

Disposal analysis of subsidiaries and businesses

            

Tangible fixed assets

(2)

(4)

(183)

(14)

(203)

(4)

Investments

(5)

–

–

–

(5)

–

Associates

–

–

(6)

–

(6)

–

Stocks

(4)

(3)

(3)

(6)

(16)

(12)

Debtors

(19)

(21)

(7)

(19)

(66)

(14)

Creditors and taxation

1

36

15

32

84

3

Provisions

2

–

–

(10)

(8)

(3)

Deferred taxation

–

–

13

–

13

(1)

Equity minority interest

–

–

–

(30)

(30)

1

Net borrowing

–

(4)

(5)

(2)

(11)

(1)

Net (assets)/liabilities disposed of 

(27)

4

(176)

(49)

(248)

(31)

Proceeds received

91

125

352

194

762

62

Deferred consideration

–

–

–

2

2

3

Costs

(5)

(8)

(5)

(24)

(42)

(4)

Net prior year adjustments

–

–

–

–

–

(1)

Profit on sale

59

121

171

123

474

29

Goodwill written back 

(70)

(80)

(14)

(81)

(245)

(9)

Net profit/(loss) on sale

(11)

41

157

42

229

20

NOTE: Included within ‘other’ above are the following: the sale of the Law & Tax publishing business for £66m giving rise to a profit of £61m; the sale of 20% of Recoletos for £87m giving rise to a profit on sale of £34m; the sale of the Register Group for £8m giving rise to a loss on sale of £20m; and a £10m loss on the closure of certain Simon & Schuster businesses.

 

  1998
ALL FIGURES IN MILLIONS

 

   

Total goodwill written back on disposal

  

On disposal of subsidiaries

 245

On disposal of associates

 16

On disposal by associates

 1

 

 262


  1998 1997
ALL FIGURES IN MILLIONS

 

      

Cash flow from disposals

    

Cash – current year disposals (see page 81)

762

62

Costs paid

(38)

(3)

Deferred receipts and payments from prior year disposals and other amounts 

(6)

(5)

Net cash inflow

718

54

NOTE: Contributions to the cash flow from disposals in 1998 are as follows: net cash inflow from operating activities £45m, returns on investments and servicing of finance £(3)m, taxation £(11)m and capital expenditure and financial investment £(14)m.
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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