Printable Logo
Expect More
 

13. Investments in joint ventures

  2008
£m
2007
£m
Group share of net assets    
At 1 January 100 83
Share of post-tax earnings of joint ventures 16 24
Dividends paid (24) (13)
Actuarial gain on post-employment obligations, including deferred tax 1
Additions 1
Currency variations 36 5
At 31 December 129 100
Accumulated impairment    
Charge for the year 10
At 31 December 10
Net book amount at 31 December 119 100
Group share of net book amount at 31 December    
Non-current assets 97 70
Current assets 89 91
Current liabilities (54) (50)
Non-current liabilities (13) (11)
  119 100

The joint ventures have no significant contingent liabilities to which the Group is exposed and nor has the Group any significant contingent liabilities in relation to its interest in the joint ventures other than bank guarantees set out in note 27. The share of capital commitments of the joint ventures is shown in note 29.

Group share of results of joint ventures 2008
£m
2007
£m
Sales 241 253
Operating costs and other income (221) (221)
Trading profit 20 32
Net financing costs
Profit before taxation 20 32
Taxation (4) (8)
Share of post-tax earnings — before impairments 16 24
Impairment, including tax on impairment of nil (10)
Share of post-tax earnings 6 24

The impairment charge attributable to a provision for diminution in value, which is entirely attributable to Driveline, arises as customer supply logistics are addressed in selected geographical territories and joint venture relationships are unwound.

The segmental analysis of the Group’s share of joint venture sales and trading profit is set out below:

2008 2007
  Sales
£m
Trading
profit
£m
Sales
£m
Trading
profit
£m
Driveline 145 15 130 17
Other Automotive 92 6 120 15
OffHighway 4 3
Aerospace (1)
  241 20 253 32

Back to Top