PARISS Plc - Statement of profit or loss for the period ended 31

December 2016

£’000
Revenue (8500+9/12*4400) 11800
Cost of Sales (3400+9/12*2120) (4,990)
Gross profit 6810
Distribution and administrative expenses (3000 + 9/12*820) (4990)
Investment income (dividend from SwP) 175
Finance cost (246+9/12*52) (282)
Profit before tax 3088

Income tax expense (890+9/12*260) (1085)

PROFIT FOR THE YEAR 2003

PARISS Plc - Statement of financial position as at 31 December

2017

£’000 £’000
Non-current assets:
Property, plant and equipment 14,200
Intangible assets 7,700
Investment in SwP 70
Investment in Angel 3,000
24,970

Current assets:
Inventories 5,500
Trade receivables 2,900
8,400

Total assets 33,370

Equity and reserves:

Share capital (£1 nominal value equity shares) 4,000
Retained earnings 8,130
12,130

Non-current liabilities 1,740

Long term loan notes
13,870

11,600
Current liabilities:
Trade payables
Bank overdraft 6,500
1,400
7,900
Total Equity and liabilities
33,370

Workings:

W1- Group Structure

SWP

70%

PARISS 30% ANGEL

Working W2 – Goodwill

SWP Angel
Cost of Investment £5.3m
NCI 30%*1.3m*5.10 £1.989m
£7.289
Net assets at acquisition
Share (1.3m*5.10) £6.63
Retained earnings £3.60
FV adjustments
Land revaluation £0.06
Intangible assets £0.15
£10.44
Goodwill
Impairment
Working W3 – Consolidated Retained Earning
PARRIS SWP ANGEL
Retained earnings 7,500 4,500 1,200
Dividend payable
Div recievable
From SWP
From Angel 52
PurP
FV Adjustment 60

Working W4 – NCI non-CONTROLLING interest(30%)

Value at date of acquisition

Share of post acquisition
retained earning (30%*