On 30 June 2015, the Group announced its decision to withdraw from its operations in Brazil. Subsequent to this decision, on 25 September 2015, the Group sold 100% of its interest in Bodycote Brasimet Processamento Termico Ltda ("Bodycote Brazil"). The decision to exit the Group's activities in Brazil is the consequence of a prolonged and substantial reduction in demand in the business's core markets.
During the year, Bodycote Brazil contributed £4.0m (2014: £7.7m) to Group revenue and contributed a headline operating loss of £1.8m to Group results (2014: loss of £2.9m). Closure costs incurred during the year were £6.4m (2014: £nil). Bodycote Brazil is disclosed within the Emerging Markets - AGI operating segment.
On 11 September 2015, the Group also sold 100% of its interest in Bodycote Metallurgical Services India Pvt. Ltd ("Bodycote India") due to the company delivering returns below those considered acceptable to the Group. During the year, Bodycote India contributed £1.0m (2014: £1.4m) to Group revenue and contributed a headline operating loss of £0.2m (2014: loss of £0.2m) to Group results. Bodycote India is disclosed within the Emerging Markets - AGI operating segment.
The net assets of both subsidiaries at the date of disposal were as follows:
| Bodycote
Brazil
£m | Bodycote
India
£m | Other
£m | Group
Total
£m |
|---|
| Property, plant and equipment | – | 1.0 | – | 1.0 |
| Trade and other receivables | 1.0 | 0.4 | – | 1.4 |
| Inventories | 0.1 | – | – | 0.1 |
| Trade and other payables | (1.4) | – | – | (1.4) |
| Net (liabilities) / assets on date of disposal | (0.3) | 1.4 | – | 1.1 |
| Cash consideration | – | 1.8 | – | 1.8 |
| Disposal costs | (0.1) | (0.1) | – | (0.2) |
| Cumulative exchange differences recycled on disposal | 3.8 | (0.7) | 0.2 | 3.3 |
| Profit / (loss) on disposal of subsidiaries recognised in exceptional items (see note 5) | 4.0 | (0.4) | 0.2 | 3.8 |
| Net cash (outflow) / inflow arising on disposal: | | | | |
| Cash consideration net of disposal costs | (0.1) | 1.7 | – | 1.6 |