Notes to the accounts

20 Acquisition of businesses
There were four acquisitions during the year 2004.

				Date of acquisition
Cintex Group Limited				30 January 2004
Molecular Analytics				13 February 2004
ALV Laservertriebsgesellschaft mbH				18 March 2004
MTT				1 April 2004

The following table provides an analysis of the assets and liabilities acquired and the related provisional fair value adjustments for all the bolt-on acquisitions.

Analysis of the assets and liabilities

	Book value £m	Revaluation £m	Accounting policy alignment £m	Other fair value adjustments £m	Fair value £m
Tangible fixed assets	0.7	0.1	(0.1)	-	0.7
Stocks	3.6	(1.3)	(0.3)	-	2.0
Debtors	2.8	(0.6)	-	-	2.2
Creditors and provisions	(3.5)	-	-	(0.8)	(4.3)
Net assets acquired	3.6	(1.8)	(0.4)	(0.8)	0.6
Goodwill					9.8
Total consideration					10.4
Deferred consideration					(0.7)
Net cash consideration paid in the year					9.7

The book values of the net assets acquired have been adjusted in the following respects to arrive at their fair value:

The book values of stocks have been adjusted to reflect group accounting policies and the revaluation of certain stocks to their net realisable value.

Debtors have been revalued to take account of the amounts expected to be received.

Provisions have been revalued to reflect the best estimate of settling warranty and other claims extant at the date of acquisition.

The net cash outflow in relation to the acquisition of subsidiary undertakings comprised:

Net cash outflow

					£m
Acquisition in the year
Consideration paid in the year					8.4
Expenses					1.3
					9.7
Prior year acquisitions
Final settlement in relation to Bohlin acquisition					0.4
Deferred consideration in relation to Lumitron acquisition					0.3
					10.4

The acquisitions made in 2004 contributed £20.5m of turnover and an operating loss of £1.7m in the year ended 31 December 2004.

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