19 Investments
Group
The group has 50% interests in the joint ventures Primister Limited, Dorrington Derwent Holdings Limited and Miller (Swinton) Limited and a 25% interest and 50% voting rights in the joint venture Euro Mall Sterboholy a.s..
| 2009 | 2008 | |
|---|---|---|
| £m | £m | |
| At 1st January | 7.6 | 5.1 |
| Additions | 0.2 | 0.3 |
| Transfer from non-current assets held for sale | – | 3.4 |
| Distributions received | (0.5) | (0.4) |
| Share of results of joint ventures (see note 9) | (0.9) | (0.8) |
| At 31st December | 6.4 | 7.6 |
The following amounts have been recognised in the group’s balance sheet and income statement relating to these joint ventures.
| 2009 | 2008 | |
|---|---|---|
| £m | £m | |
| Non-current assets | 17.2 | 18.6 |
| Current assets | 1.7 | 2.2 |
| Current liabilities | (4.4) | (5.2) |
| Non-current liabilities | (8.1) | (8.0) |
| Net assets | 6.4 | 7.6 |
| Income | 2.2 | 1.1 |
| Expenses | (3.1) | (1.9) |
| Loss for the year | (0.9) | (0.8) |
| Subsidiaries | Joint ventures | Total | |
|---|---|---|---|
| £m | £m | £m | |
| Company | |||
| Shares in subsidiaries: | |||
| At 1st January 2008 | 956.9 | – | 956.9 |
| Impairment | (336.3) | – | (336.3) |
| At 31st December 2008 | 620.6 | – | 620.6 |
| Additions | 4.1 | – | 4.1 |
| Disposals | (6.2) | – | (6.2) |
| Impairment | (49.0) | – | (49.0) |
| At 31st December 2009 | 569.5 | – | 569.5 |
| Loans: | |||
| At 1st January 2008 and 31st December 2008 | – | 0.9 | 0.9 |
| Repayment | – | (0.5) | (0.5) |
| – | 0.4 | 0.4 | |
| At 31st December 2009 | 569.5 | 0.4 | 569.9 |
| At 31st December 2008 | 620.6 | 0.9 | 621.5 |
At 31st December 2009 and 31st December 2008, the carrying value of the investment in London Merchant Securities Ltd was reviewed in accordance with IAS 36, Impairment of Assets. A review for impairment of the investment in subsidiaries was carried out in accordance with IAS 36 on both value in use and fair value less costs to sell bases. The company’s accounting policy is to carry investments in subsidiary undertakings at the lower of cost and net asset value and recognise any impairment in the income statement. In the opinion of the directors, the most appropriate estimate of the recoverable amount is the net asset value of the subsidiaries. In view of the fall in the value of the investment properties, there has been a related reduction in the net asset value of the subsidiaries which has been reflected as an impairment in the company income statement of £49.0m (2008: £336.3m). Of this amount, £45.0m relates to the investment in London Merchant Securities Ltd. This amount is transferred from retained earnings to the merger reserve within other reserves. The remaining £4.0m relates to two of the company’s other investments and remains within retained earnings.
The company liquidated its investment in Bramley Road Ltd during the year. The investment was being carried at £6.2m and made a loss on liquidation of £3.5m.
During the year, the company became the direct beneficial owner of the shares in LMS (Kingston) Ltd, an indirect subsidiary company, for nil consideration. These shares were sold to a third party realising net proceeds of £1.0m and a profit on disposal of £0.6m.
The company increased its investment in two of its subsidiaries during the year: Derwent Valley West End Ltd by £2.0m and Derwent Valley Property Trading Ltd by £2.1m, as these entities were in a net liability position. In accordance with IAS 36, these investments were written down to their net asset value.