Annual Report and Accounts 2008
11 Discontinued operations
On 24 October 2008, the Group announced that it planned to exit the Dot2Dot business. On 9 January 2009, the Group completed the sale of the Dot2Dot business and it has been classified as a discontinued operation for the year ended 31 December 2008, and the results for the year ended 31 December 2007 restated for the presentation of Dot2Dot as a discontinued operation. The 2008 results include a charge to the income statement in respect of the discontinued operations of Dot2Dot of £9.7m. In addition, a deferred tax asset of £3.7m recognised in relation to the North America Public Transit liability (note 26) has been written off.
The results of the Group’s discontinued operations in 2008 are presented below together with the comparative data for 2007 and arise solely from Dot2Dot and North America, together with the taxation charges in respect of North America:
| Dot2Dot | North America Public Transit | Total | ||||
|---|---|---|---|---|---|---|
| 2008 £m |
2007 £m |
2008 £m |
2007 £m |
2008 £m |
2007 £m |
|
| Revenue | 5.1 | 3.1 | – | – | 5.1 | 3.1 |
| Operating costs, before goodwill impairment, intangible amortisation and exceptional items |
(13.4) | (7.9) | – | – | (13.4) | (7.9) |
| Normalised operating loss | (8.3) | (4.8) | – | – | (8.3) | (4.8) |
| Normalised loss before tax | (8.3) | (4.8) | – | – | (8.3) | (4.8) |
| Tax credit on normalised loss | 2.8 | 1.4 | – | – | 2.8 | 1.4 |
| Normalised loss from discontinued operations | (5.5) | (3.4) | – | – | (5.5) | (3.4) |
| Goodwill impairment | (0.7) | – | – | – | (0.7) | – |
| Exceptional items | (3.8) | – | – | (6.3) | (3.8) | (6.3) |
| (4.5) | – | – | (6.3) | (4.5) | (6.3) | |
| Tax on exceptional items | 0.3 | – | (3.7) | 3.4 | (3.4) | 3.4 |
| (4.2) | – | (3.7) | (2.9) | (7.9) | (2.9) | |
| Loss from discontinued operations | (9.7) | (3.4) | (3.7) | (2.9) | (13.4) | (6.3) |
| Loss per share | ||||||
| Basic from discontinued operations | (8.9p) | (4.1p) | ||||
| Diluted from discontinued operations | (8.7p) | (4.1p) | ||||
| Net cash (outflow) from: | ||||||
| Operating activities | (10.2) | (3.2) | – | – | (10.2) | (3.2) |
| Investing activities | (0.6) | (0.7) | (6.1) | (1.9) | (6.7) | (2.6) |
The Group acquired the entire share capital of Hotelink Limited in March 2007, and subsequently renamed the business National Express Dot2Dot Limited. Goodwill recognised on the acquisition totalled £0.7m. The goodwill impairment of £0.7m noted above reduces the carrying value of this goodwill to £nil as no value was recovered on the sale of Dot2Dot. The exceptional items of £3.8m reflect the charge the Group has incurred in order to complete the disposal of the business.
Assets in disposal group classified as held for sale of £0.7m represent trade and other receivables. Liabilities directly associated with disposal group assets classified as held for sale of £2.2m consist of provisions (£2.1m) and trade payables (£0.1m).