Subsequent events

In January 2006, Vedior and TNT ended their joint venture in the Benelux with Vedior taking 100% ownership of the facilities management recruitment business, Mailprofs Uitzendburo, operating in the Netherlands and Belgium, and TNT assuming 100% ownership of the outsourcing business, Mailprofs Postkamerbeheer. The joint venture operated on a 50/50 basis with each party reporting its share of revenues and profits in its consolidated results. For the full year 2005, Mailprofs Uitzendburo achieved sales of €14 million and Mailprofs Postkamerbeheer achieved sales of €10 million.

In February 2006, it was announced that Vedior had agreed to acquire a 66% interest in Talisman Software Holding SA, which services the information technology and business consulting sectors from a network of offices in Switzerland, Germany, Netherlands, and the UK

 Acquisition of subsidiaries

During the financial year 2005 the Group has acquired several subsidiary undertakings as specified below:

The consideration for the acquisitions amounts to €44 million, which has been paid in cash. All acquisitions have been accounted for by the purchase method of accounting.

The acquisitions had the following effect on the Group’s assets and liabilities:

Acquirees’ assets and liabilities at the acquisition date Carrying amounts     Property and equipment 1 Trade and other receivables 7 Trade and other payables -5 Net identifiable assets and liabilities 3 Goodwill on acquisition 41 Net cash outflow 44 Goodwill on the acquisitions has arisen due to acquired companies’ management experience and knowledge of the local business, which does not meet the recognition criteria of intangible assets. See also the note on significant accounting principles. The acquired companies have contributed €2 million to the Group’s net profit for the year 2005.

 Retirement benefit obligations

Liability for defined benefit obligations

The Group makes contributions to one defined benefit plan that provides pension benefits for employees upon retirement. The plan assets are investments held by an external insurance company. These assets are not available to the company and consist mainly of investments in government bonds.

Movements in the net liability for defined benefit obligations recognised in the balance sheet

Expenses recognised in the income statement

Liability for defined benefit obligations
Principal actuarial assumptions at the balance sheet date, expressed as weighted annual averages: