On 29 August 2014 the Group acquired 100% of the share capital of Holding Menzing Heattreatment BV for a cash consideration of £2.7m. The acquisition was made to strengthen the Group's network and to enhance the process offering in the Netherlands and Northern Germany. The acquisition fits well with the Group's automotive and general industrial strategy.

The transaction has been accounted for by the purchase method of accounting and is summarised below.

Heat Treatment business
of Holding Menzing
Heattreatment BV
Fair value of net assets acquired:
Intangible fixed assets1.2
Property, plant and equipment1.1
Trade and other receivables0.3
Trade and other payables(0.4)
Bank borrowings(0.5)
Deferred tax liability(0.4)
Total consideration2.7
Satisfied by:
Cash consideration2.7
Net cash outflow arising on acquisition:
Cash consideration2.7

The carrying value of inventories, trade and other receivables and trade and other payables approximates their fair value. Fair values of the acquired identifiable tangible and intangible assets are provisional, pending completion of the final valuations.

The gross contractual value of trade and other receivables was £0.3m. The best estimate at the acquisition date of the contractual cash flows not expected to be collected was £nil.

The goodwill arising on the acquisition is attributable to the anticipated profitability of the Group's services in new markets and the anticipated future operating synergies from the acquisition. No tax relief in relation to goodwill has arisen as part of this acquisition.

Acquisition-related costs (reported in exceptional items) amounted to £0.2m.

The acquired business contributed £0.7m revenue and £0.2m to the Group's operating profit for the period between the date of acquisition and balance sheet date.

If the acquisition has been completed on the first day of the financial year, Group revenue would have been £610.2m and Group operating profit attributable to equity holders of the parent would have been £111.4m.