47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 172
A.G. BARR p.l.c. Annual Report and Accounts 2025
N OTE S TO TH E
ACCO U NT S
CO N TI N U ED
14. Investment in subsidiaries
Company
2025
£m
2024
£m
Opening investment in subsidiaries
Investments made in the year
Transfer of investments to Company
125.9
–
(32.2)
113.6
12.3
–
Closing investment in subsidiaries
93.7
125.9
On 31 October 2024, the assets and liabilities of Boost Drinks Limited (Boost) were purchased by the Company. The effect of this was to eliminate the investment in the
subsidiary and bring all of Boost’s tangible and intangible fixed assets onto the Company balance sheet. At the year end the value of the Boost investment was £6.5m
and this was eliminated by an acquisition accounting adjustment in the Company accounts. Post year end, a dividend of £6.5m was paid by Boost to the Company,
offsetting the acquisition accounting adjustment.
On 24 October 2023, the Group acquired 100% of the shares and voting rights in Rio Tropical Limited (Rio Tropical) granting it control. The Group has concluded that, together,
the acquired inputs and processes are a business that will create value by generating revenue in the soft drinks category, supported by the Group’s brand-building capability.
On 1 June 2024, the assets and liabilities of Rio Tropical were purchased by the Company. The effect of this was to eliminate the investment in the subsidiary and bring all of
Rio Tropical’s tangible and intangible fixed assets onto the Company balance sheet.
The directors have reviewed the Company’s investments for impairment at 25 January 2025 and concluded that no impairment is required, see Note 10.
For the four months ended 28 January 2024, Rio Tropical contributed income of £0.5m, and a similar impact on profit. Had Rio Tropical been a subsidiary for the full financial
year, it would have contributed c.£1.4m income to the Group and c.£1.4m profit. The value of the identifiable assets and liabilities of Rio Tropical at the date of acquisition were:
£m
170
Intangible assets
Deferred tax
12.0
(3.0)
Total identifiable net assets acquired
9.0
Goodwill
3.3
Value on acquisition
12.3
Total consideration
12.3
Represented by:
Cash
12.3
