In the prior year the Group acquired 100% of the issued share capital of Boardman Bikes Limited and Boardman International Limited for cash consideration of £14.7m (excluding transaction costs). The two Boardman companies retail cycles and cycle accessories under the brand name 'cBoardman' nationally and internationally. The purpose of this acquisition was to benefit from operating synergies. This transaction has been accounted for using the acquisition method of accounting.

The acquisition had the following effect on the Group's assets and liabilities:

Book value
Fair value
Final fair
Boardman net assets at the acquisition date
Intangible assets0.2(0.2)
Trade and other receivables3.7(0.4)3.3
Trade and other payables(3.0)(3.0)
Current tax liabilities(0.2)(0.2)
Boardman net assets2.1(0.6)1.5


Goodwill was recognised as a result of the acquisition as follows:

Total consideration14.7
Less fair value of identifiable assets(1.5)
Goodwill and intangible assets13.2
Brand name intangible3.1
Deferred tax liability(0.6)

The goodwill arising on the acquisition of the Boardman business is attributable to a) operating synergies and increased control of operations, b) the value of immaterial other intangible assets and c) future income to be generated from new retail customer contracts and related relationships. None of the goodwill is expected to be deductible for income tax purposes.

The fair value adjustments relate to the best estimate of the contractual trade receivable cash flows not expected to be collected and aligning intangible asset policies with the Halfords Group. There have been no adjustments to goodwill during the current period.