(a) Losses in Associate
Set out below is the summarised financial information of Medical Ethics Pty Ltd for the period 30 March 2017 to 30 June 2017, which are accounted for using the equity method. This is not Dechra PLC's share of the results.
|Pre-tax loss from continuing operation||(65)|
|Post-tax loss from continuing operations||(303)|
|Net assets of associate||5,010|
(b) Interest in Associate
|1 July 2016||—|
|Share of underlying loss after tax||(101)|
|Share of amortisation of intangible asset identified on acquisition||(58)|
|30 June 2017||10,854|
On 30 March 2017 the Group acquired a 33.0% interest in Medical Ethics Pty Ltd for AUD$18.0 million (£11.0 million), which is the holding company of Animal Ethics Pty Ltd. The company is incorporated in Australia, which is also the principal place of business. The registered address is c/o Level 3, 649 Bridge Road, Richmond, Victoria 3121, Australia. The company has share capital consisting solely of ordinary shares, which are directly owned by the group. Medical Ethics Pty Ltd is a private company and there is no quoted market price available for its shares. There is no contingent liabilities relating to the Group's interest in the associate. Acquisition related costs (included in operating expenses) amounted to £0.4 million in the period.
As explained in note 1, the Group has undertaken a provisional notional fair value exercise at the date of acquisition to allocate the cost of the investment to the individual assets, liabilities and contingent liabilities at their acquisition date fair values. The fair values attributed at the acquisition date are provisional as the Directors have not yet reached final determination of all aspects of the fair value exercise. The Directors will finalise the fair values within 12 months of the acquisition date. The Group's share of the loss arising from its investment in Medical Ethics Pty Ltd for the period 30 March 2017 to 30 June 2017, includes the effect of amortising the fair value adjustments.
(c) Reconciliation of summarised financial information presented to the carrying amount of its interest in associates
|Opening net assets 1 July 2016||—|
|Fair value of associate acquired||2,420|
|Post-tax loss from continuing operations||(101)|
|Amortisation of notional intangible asset recognised on acquisition||(58)|
|Interest in associate||2,261|
|Carrying value of investment in associate||10,854|