31. Disposals including business closures
In August 2017, the Group completed the sale of the test preparation business in China (GEDU) and in October 2017 the sale of a 22% share in Penguin Random House, retaining a 25% share (see note 12).
| Notes | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||
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All figures in £ millions |
GEDU | Penguin Random House |
Other | Total | Total | FT Group | PowerSchool | Other | Total | |||||||||||||||||||||||||||||||
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Disposal of subsidiaries and associates |
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Property, plant and equipment |
10 | (7 | ) | — | — | (7 | ) | (3 | ) | (15 | ) | (2 | ) | — | (17 | ) | ||||||||||||||||||||||||
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Intangible assets |
11 | (2 | ) | — | (7 | ) | (9 | ) | — | (46 | ) | (19 | ) | (5 | ) | (70 | ) | |||||||||||||||||||||||
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Investments in joint ventures and associates |
— | (352 | ) | — | (352 | ) | — | (7 | ) | — | — | (7 | ) | |||||||||||||||||||||||||||
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Other financial assets |
— | — | — | — | — | 92 | — | — | 92 | |||||||||||||||||||||||||||||||
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Net deferred income tax (assets)/liabilities |
13 | (1 | ) | (2 | ) | — | (3 | ) | (10 | ) | (2 | ) | — | 3 | 1 | |||||||||||||||||||||||||
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Intangible assets – pre-publication |
20 | — | — | (1 | ) | (1 | ) | (4 | ) | — | (64 | ) | — | (64 | ) | |||||||||||||||||||||||||
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Inventories |
(1 | ) | — | (1 | ) | (2 | ) | — | (1 | ) | — | — | (1 | ) | ||||||||||||||||||||||||||
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Trade and other receivables |
(16 | ) | — | — | (16 | ) | (6 | ) | (72 | ) | (16 | ) | (6 | ) | (94 | ) | ||||||||||||||||||||||||
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Current income tax (receivable)/payable |
— | (5 | ) | — | (5 | ) | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||
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Cash and cash equivalents (excluding overdrafts) |
(13 | ) | — | — | (13 | ) | (9 | ) | (29 | ) | — | (4 | ) | (33 | ) | |||||||||||||||||||||||||
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Trade and other liabilities |
33 | — | 1 | 34 | 21 | 113 | 35 | 6 | 154 | |||||||||||||||||||||||||||||||
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Retirement benefit obligations |
— | — | — | — | — | 7 | — | — | 7 | |||||||||||||||||||||||||||||||
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Provision for other liabilities and charges |
— | — | — | — | — | 2 | — | — | 2 | |||||||||||||||||||||||||||||||
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Attributable goodwill |
— | — | — | — | — | (50 | ) | (119 | ) | (6 | ) | (175 | ) | |||||||||||||||||||||||||||
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Cumulative currency translation adjustment |
29 | 3 | 48 | — | 51 | — | 4 | 6 | 10 | |||||||||||||||||||||||||||||||
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Net assets disposed |
(4 | ) | (311 | ) | (8 | ) | (323 | ) | (11 | ) | (3 | ) | (179 | ) | (12 | ) | (194 | ) | ||||||||||||||||||||||
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Cash received |
54 | 413 | 1 | 468 | 7 | 1,235 | 222 | 11 | 1,468 | |||||||||||||||||||||||||||||||
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Costs |
(6 | ) | (6 | ) | (5 | ) | (17 | ) | (16 | ) | (47 | ) | (13 | ) | (9 | ) | (69 | ) | ||||||||||||||||||||||
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Gain/(loss) on disposal |
44 | 96 | (12 | ) | 128 | (20 | ) | 1,185 | 30 | (10 | ) | 1,205 | ||||||||||||||||||||||||||||
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The amount included as other financial assets in 2015 related to an 11% share in the Economist which was retained and held at fair value within other financial assets on the balance sheet.
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All figures in £ millions |
2017 | 2016 | 2015 | |||||||||
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Cash flow from disposals |
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Cash – current year disposals |
468 | 11 | 1,468 | |||||||||
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Cash and cash equivalents disposed |
(13 | ) | (9 | ) | (33 | ) | ||||||
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Costs and other disposal liabilities paid |
(25 | ) | (52 | ) | (26 | ) | ||||||
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Net cash inflow/(outflow) |
430 | (50 | ) | 1,409 | ||||||||
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Analysed as: |
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Cash inflow/(outflow) from sale of subsidiaries |
19 | (54 | ) | 1,030 | ||||||||
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Cash inflow from sale of associates |
411 | 4 | 379 | |||||||||