Notes to the financial statements

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14 Investment in associates

The investment in associates using the equity method at 31 March 2014 is represented by a 20% interest in Wexford Creamery Limited (‘WCL’) which is involved in the manufacture of cheese in the Republic of Ireland.

Following the sale of 50% of the ordinary shares of WCL in June 2010, the Group equity accounts for a 20% shareholding in that company. The Group holds a further 10% of the issued share capital of WCL however, due to the existence of fixed-price put and call options in relation to this additional holding, it is assumed that the economic benefit from this 10% has been transferred and therefore accounted for as a sale. The fixed price under the options of 1.8 million Euros is recorded at its discounted amount of deferred consideration of £1.4 million.

The share of the assets, liabilities, income and expenses of the associate at 31 March and for the years then ended, which are equity accounted for in the consolidated financial statements, are as follows:

	2014 £m	2013 £m
Current assets	2.2	1.7
Current liabilities	(1.4)	(1.2)
Share of net assets	0.8	0.5

Revenue	13.5	10.3
Operating costs	(13.2)	(10.3)
Result before tax	0.3	–
Tax expense	–	–
Share of net result	0.3	–