|At 1 July 2012||57,921||4,656||7,440||3,680||853||193,406||267,956|
|Transferred to assets held for sale||(2,621)||(1,836)||—||—||—||(377)||(4,834)|
|Foreign exchange adjustments||3,055||98||47||—||—||8,658||11,858|
|At 30 June 2013 and 1 July 2013||58,355||3,412||9,071||3,680||853||204,830||280,201|
|Acquisitions through business combinations||84||—||—||—||—||7,483||7,567|
|Foreign exchange adjustments||(3,461)||(187)||(67)||—||—||(11,372)||(15,087)|
|At 30 June 2014||54,978||4,606||10,069||3,680||853||200,941||275,127|
|At 1 July 2012||—||1,621||3,106||1,133||—||36,224||42,084|
|Charge for the year||—||451||857||335||—||18,233||19,876|
|Transferred to assets held for sale||—||(891)||—||—||—||(230)||(1,121)|
|At 30 June 2013 and 1 July 2013||—||947||3,963||1,468||—||54,227||60,605|
|Charge for the year||—||341||1,122||334||—||16,543||18,340|
|At 30 June 2014||—||1,288||5,085||1,802||—||70,770||78,945|
|Net book value|
|At 30 June 2014||54,978||3,318||4,984||1,878||853||130,171||196,182|
|At 30 June 2013 and 1 July 2013||58,355||2,465||5,108||2,212||853||150,603||219,596|
|At 30 June 2012||57,921||3,035||4,334||2,547||853||157,182||225,872|
|Contracted capital commitments||—||6|
|Software assets in the course of construction included above||2,856||2,279|
Included in contracted capital commitments is £nil (2013: £6,000) relating to assets held for sale.
Goodwill is allocated across cash-generating units that are expected to benefit from that business combination. Key assumptions made in this respect are given in note 13.
In accordance with the disclosure requirements of IAS 38 'Intangible Assets' the components of acquired intangibles are summarised below:
|At 1 July 2012||22,445||170,584||377||193,406|
|Transferred to assets held for sale||—||—||(377)||(377)|
|Foreign exchange adjustments||2,475||6,183||—||8,658|
|At 30 June 2013 and 1 July 2013||24,920||179,910||—||204,830|
|Acquisitions through business combinations||—||7,483||—||7,483|
|Foreign exchange adjustments||(1,583)||(9,789)||—||(11,372)|
|At 30 June 2014||23,337||177,604||—||200,941|
|At 1 July 2012||—||36,032||192||36,224|
|Charge for the year||2,243||15,952||38||18,233|
|Transferred to assets held for sale||—||—||(230)||(230)|
|At 30 June 2013 and 1 July 2013||2,243||51,984||—||54,227|
|Charge for the year||2,191||14,352||—||16,543|
|At 30 June 2014||4,434||66,336||—||70,770|
|Net book value|
|At 30 June 2014||18,903||111,268||—||130,171|
|At 30 June 2013 and 1 July 2013||22,677||127,926||—||150,603|
|At 30 June 2012||22,445||134,552||185||157,182|
The amortisation charge is recognised within administrative expenses in the Consolidated Income Statement.
The principal assets within acquired intangibles are the development costs and product rights recognised on the acquisitions of Dechra Veterinary Products Holding A/S, DermaPet Inc., Genitrix Limited and Eurovet Animal Health B.V. The carrying value of these assets at 30 June 2014 was £114.7 million with a remaining amortisation period of 3½ years, 11½ years, 6½ years and 8 years respectively. The other significant assets within acquired intangibles are the product rights recognised on the acquisition of Pharmaderm Animal Health and HY-50. The carrying value at 30 June 2014 was £1.3 million and £3.9 million with a remaining amortisation period of 9 years and 7½ years respectively.
In May 2014, the Company completed the purchase of product rights to Phycox, a patented nutraceutical which competes in the US veterinary joint health supplement market, as well as a new product in the final phase of development. The carrying value of these assets at 30 June 2014 is £7.4 million, with a remaining amortisation period of 10 years.
During the prior year the Company completed a licensing, supply and distribution agreement for a branded veterinary generic pharmaceutical product from a US pharmaceutical development company. Under the terms of the agreement Dechra paid US$1.5 million upon signing and will pay a further US$1.5 million on approval. There is a potential further contingent payment of US$2.0 million based on achieving US$20.0 million cumulative sales.
The principal asset within patent rights comprises payments to acquire the right to develop and market Trilostane, the active ingredient of Vetoryl Capsules, for animal health applications in the USA and Canada. The carrying value at 30 June 2014 was £1.0 million with a remaining amortisation period of 4½ years. The rights to Equidone, which was launched in the US during 2011, has a carrying value of £0.8 million with an amortisation period of 7 years.
£822,000 of the marketing authorisations relate to the Vetivex range of products. The Vetivex marketing authorisations are regarded as having indefinite useful economic lives and have not been amortised. Ownership of the marketing authorisations rests with the Group in perpetuity. There are not believed to be any legal, regulatory or contractual provisions that limit their useful lives. Vetivex is an established range of products which are relatively simple in nature and there are a limited number of players in the market. Accordingly, the Directors believe that it is appropriate that the marketing authorisations are treated as having indefinite lives for accounting purposes.