Note 38: Business Combinations
On 1 July 2013, in order to grow its customer base and diversify its offering to include reticulated gas, the Group purchased the assets and liabilities of Energy Direct NZ Limited, an electricity and gas retailer, for a cash consideration of $17,101,000. The revenue included in the Group income statement since 1 July 2013 contributed by this business unit was $27,149,000. It also contributed profit of $1,229,000. Had this business unit been consolidated from 1 April 2013 the Group income statement would show pro-forma revenue of $36,199,000 and profit of $1,639,000. The assets and liabilities of the acquisition at the purchase date were as follows:
|
|
GROUP
|
PARENT
|
|
|
2014
$000
|
2013
$000
|
2014
$000
|
2013
$000
|
|
|
|
|
|
|
|
Assets and Liabilities Acquired at Fair Value:
|
|
|
|
|
|
|
Cash at bank
|
|
63
|
-
|
63
|
-
|
|
Accounts receivable and prepayments
|
|
3,651
|
-
|
3,651
|
-
|
|
Property, plant and equipment
|
|
103
|
-
|
103
|
-
|
|
Intangible customer base assets
|
|
14,897
|
-
|
14,897
|
-
|
|
Goodwill with an indefinite life
|
|
4,171
|
-
|
4,171
|
-
|
|
Accounts payable and accruals
|
|
(263)
|
-
|
(263)
|
-
|
|
Electricity price derivative
|
|
(1,350)
|
-
|
(1,350)
|
-
|
|
Deferred tax liability
|
|
(4,171)
|
-
|
(4,171)
|
-
|
|
Net assets acquired
|
|
17,101
|
-
|
17,101
|
-
|