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Retrieving Data

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

-