28. Discontinued operations

On 15 February 2013, the Group disposed of King Systems, the results of which have been classified as discontinued operations.

The net assets of King Systems at the date of disposal were as follows:


15 February
2013
£000
Goodwill45,830
Intangible assets5,970
Property, plant and equipment20,888
Inventories6,434
Trade and other receivables5,608
Cash and cash equivalents836
Trade and other payables(5,346)
Current and deferred tax liabilities(2,182)
Subtotal78,038
Cumulative translation reserve(2,693)
Net assets75,345
Profit on disposal10,915
Consideration86,260
Satisfied by:
Cash consideration79,561
Cash disposal costs(4,028)

75,533
Contingent consideration11,490
Non-cash disposal costs(763)
Non-cash tax on profit on disposal

86,260
Net cash inflow arising on disposal:
Cash consideration75,533
Less cash and cash equivalents disposed(836)

74,697

The results of the discontinued operations, which have been included in the consolidated income statement, were as follows:


2013
Before
special items
£000
2013
Special items
£000
2013
Total
£000
2012
Before
special items
£000
2012
Special items
£000
2012
Total
£000
Revenue34,48634,48643,10343,103
Operating expenses before special items(31,110)(31,110)(38,012)(38,012)
Special items — plant restructuring(175)(175)(777)(777)
Special items — amortisation of acquired intangible assets(1,092)(1,092)(1,367)(1,367)
Special items — unwinding of discount on contingent consideration199199
Finance costs(11)(11)(6)(6)
Profit before tax of discontinued operations3,365(1,068)2,2975,085(2,144)2,941
Taxation(588)67385(1,476)805(671)
Profit after tax of discontinued operations2,777(395)2,3823,609(1,339)2,270
Net gain on disposal10,91510,915
Net profit attributable to discontinued operations (attributable to the owners of the Company)2,77710,52013,2973,609(1,339)2,270

The following cash flows arose from King Systems:


Period ended
15 February
2013
£000
Year ended
30 April
2012
£000
Operating cash flows2,8492,567
Investing cash flows(4,055)(6,765)
Financing cash flows
Total cash flows(1,206)(4,198)

A gain of £10.9m arose on the disposal, being the proceeds of the disposal (net of the working capital payment) less the carrying amount of the business's net assets plus disposal costs. The proceeds of disposal consist of $123.4m (£79.6m) in cash and £11.5m in contingent consideration receivable based on the discontinued operation meeting certain performance criteria over the next three years (see note 26).