11 Disposal of business
On 22 August 2012, the Group disposed of its Asset Monitoring sub-sector, comprising Tritech Holdings Limited and its subsidiary Tritech International Limited (together known as “Tritech”), for an initial cash consideration of £18.9 million. A further £0.8 million was paid in October 2012 in respect of cash and working capital held in the business at the time of sale. In addition, £2.1 million is retained in escrow and will be released to Halma on the anniversary of the transaction subject to any valid warranty/indemnity claims being made by the purchaser. The Directors estimate that the entire £2.1 million will be received. The profit on disposal is estimated to be £8.2 million, being the total £21.8 million consideration above less £1.3 million of transaction costs, £8.0 million of goodwill and £4.3 million of net assets. Due to the nature and size of the disposed operation, it has not been separately disclosed as a discontinued operation as defined by IFRS 5.
The cash inflow in the Consolidated Cash Flow Statement of £18,955,000 comprises £18,900,000 initial consideration for Tritech and £1,500,000 released from escrow for the prior year disposal of Volumatic Limited less £1,249,000 of transaction costs and £196,000 cash held by the disposed business.
The profit on disposal of £3.5 million and cash inflow of £3,554,000 in the 52 weeks to 31 March 2012 related entirely to the disposal of Volumatic Limited on 30 March 2012. Due to the nature and size of the disposed operation, it was not separately disclosed as a discontinued operation as defined by IFRS 5.