Pearson plc homepageinvestor relations
     

: notes to the accounts :

   
 

13. Associates

all figures in £ millions
1999
1998
         
 
valuations
book values
valuations
book values
         
Partnership interests
410
149
200
111
Unlisted associates
426
18
189
(31)
Loans
67
67
65
65



 
903
234
454
145



Note : Principal associates are listed in Principal subsidaries and associates. The valuations of unlisted partnerships and other associates are at directors’ valuations as at 31 December 1999. If realised at these values there would be an estimated liability for taxation, at year end rates, of £161m. The Group had no capital commitments to subscribe for further capital and loan stock.

 

 
 
share of
loans
     
total net
assets
all figures in £ millions
equity
reserves
total
goodwill
             
Summary of movements
 
 
 
 
 
 
At 31 December 1998
77
65
3
145
––
145
Exchange differences
(2)
––
(1)
(3)
(2)
(5)
Additions
23
2
––
25
29
54
Retained profit for the year
––
––
41
41
––
41
Goodwill amortisation
––
––
––
––
(1)
(1)


At 31 December 1999
98
67
43
208
26
234


 

all figures in £ millions
1999
1998
 
operating
profit
total net
assets
operating
profit
total net
assets
 
Analysis of partnerships and other associates
 
 
 
 
 
 
 
 
 
Business sectors
 
 
 
 
FT Group
14
63
15
6
Pearson Education
6
7
4
5
Pearson Television
3
15
(8)
23



Continuing operations
23
85
11
34
Discontinued operations
48
149
40
111



 
71
234
51
145



Geographical markets supplied and location of net assets
 
 
 
 
United Kingdom
––
2
(3)
18
Continental Europe
10
56
6
7
North America
8
14
5
1
Rest of world
5
13
3
8



Continuing operations
23
85
11
34
Discontinued operations
48
149
40
111



 
71
234
51
145



 

all figures in £ millions
1999
 
 
Reconciliation to retained profit
 
Operating profit of partnerships and other associates
71
Net interest payable of other associates
(2)
Profit on sale of a business by an associate
1
UK taxation
(9)
Overseas taxation
(6)
Distributions receivable in respect of the year from partnership interests
(2)
Dividends (including tax credits) from unlisted associates
 


Retained profit for the year
41


The aggregate of Pearson’s share in its associates, excluding the interest in Lazard Partners Limited Partnership and the three Lazard Houses, is shown below.

all figures in £ millions
1999
1998
Sales
299
239
 
 
 
Fixed assets
98
57
Current assets
165
126
Liabilities due within one year
(105)
(88)
Liabilities due after one year or more
(73)
(61)



Net assets
85
34



Pearson’s interest in Lazard Partners Limited Partnership and the three Lazard Houses for the year ended

31 December 1999 is shown below. On 3 March 2000, Pearson sold its interests in Lazard Partners Limited Partnership and the three Lazard Houses (see note 31).

all figures in £ millions 1999 1998
     
Profit before tax 48 53
Taxation (7) (7)
Profit after taxation 41 46
Fixed assets 26 28
Current assets 3,399 5,151
Liabilities due within one year (2,819) (4,829)
Liabilities due after one year or more (457) (293)



Note : Pearson’s indirect general partnership interest in Lazard Frères et Cie and Maison Lazard et Cie held directly and indirectly through Lazard Partners Limited Partnership was an unlimited liability interest. Pearson held these partnership interests through a subsidiary undertaking registered in England, with no other material assets. The aggregate liabilities of these partnerships included above are £511m (1998: £851m). Pearson also held direct interests in Lazard Frères & Co., a New York Limited Liability Company.

 

country of
incorporation
or registration
beneficial
interest
%
class
of
share
share
capital
millions
 
 
 
 
 
 
Interests in the Lazard Houses
 
 
 
 
Lazard Partners Limited Partnership
US
50.0
 
Partnership
(which, with direct interests in the US and
 
 
 
 
French partnerships gives the following
 
 
 
 
interests in the Lazard Houses):
 
 
 
 
Lazard Brothers & Co. Ltd
England
29.1
Ord £1
25.3
Lazard Brothers & Co. Ltd
England
80.0
Def £1
5.0
Lazard Brothers & Co. Ltd
England
50.0
SFr1
0.4
Lazard Frères & Co. ‘LLC’
US
11.5
 
LLC•
Lazard Frères et Cie/Maison Lazard et Cie
France
9.2
 
Partnership

Limited Liability Company.

Note : The beneficial percentages held for the investment banking partnership interests are interests in partnership profits.

 

1999 Annual Report
* Introduction
* Chairman's letter
* Chief executive's review
* The Pearson Goals
* Internet Goals
* The Results
* Financial Review
* Financial Policy
* Directors' Report
* Personnel Committee Report
* Pearson Education
* Penguin Group
* Financial Times Group
* Pearson Televison
* Recolétos
* Lazard
* Consolidated profit and loss account
* Consolidated balance sheet
* Consolidated statement of cash flows
* Statement of total recognised gains and losses
* Note of historical cost profits and losses
* Reconciliation of movements in equity shareholders' funds
* Report to the Auditors to the Members of Pearson plc
* Principal subsidiaries and associates
* Five year summary
* Shareholder information
* Notes to the accounts
 

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