Notes to the Parent Company Financial Statements (continued)
for the year ended 31st December 2012
2. intangible fixed assets
As at 31st December 2012
negative
goodwill
£’000
cost or valuation
At 1st January 2012 (23,453)
Additions –
At 31st December 2012 (23,453)
Amortisation
At 1st January 2012 23,249
Credit during the year 204
At 31st December 2012 23,453
carrying amount
At 31st December 2011 –
At 1st January 2011 (204)
negative goodwill
On 15th January 2010 the Company completed the acquisition of 100% of the share capital of New Daffodil Ltd (“NDL”) (formerly HEAL). Subsequent
to acquisition, the business of NDL was reorganised within the Group and the business of NDL together with certain assets were transferred to the
Company for a total consideration of £1 (one pound). The Company then transferred most of the trade and assets to its subsidiaries Your Move,
Reeds Rains, LSLi and St Trinity for a consideration of £1 (one pound) each. However, the following assets were acquired by the Company but not
transferred further to Your Move, Reeds Rains, LSLi or St Trinity and this has resulted in the creation of negative goodwill:
£’000
Assets acquired
Investment in a private company 750
Cash 22,703
net Assets 23,453
Consideration paid –
negative goodwill (23,453)
The negative goodwill is being amortised to match the usage of the assets acquired (mainly cash outflow).
110 ANNUAL REPORT AND ACCOUNTS 2012