Notes to the financial statements
11. Investment in subsidiaries
| Company | 2008 £m |
2007 £m |
|---|---|---|
| Investment in subsidiary | 663.6 | 663.6 |
| Share-based payment adjustment | 1.5 | 0.4 |
| 665.1 | 664.0 |
IPF plc acquired the international businesses of the Provident Financial plc group on 16 July 2007 by issuing one IPF plc share to the shareholders of Provident Financial plc for each Provident Financial plc share held by them. The fair value of the consideration issued in exchange for the investment in these international businesses was £663.6m and this amount was therefore capitalised as a cost of investment. A further £1.5m (2007: £0.4m) has been added to the cost of investment representing the fair value of the share-based payment awards over IPF plc shares made to employees of subsidiary companies of IPF plc. The corresponding credit has been taken to reserves.
The principal subsidiary companies of IPF plc, which are all 100% owned by the Group, are detailed below:
| Subsidiary company | Country of incorporation and operation | Principal activity |
|---|---|---|
| IPF Holdings Limited | England | Holding company |
| International Personal Finance Investments Limited | England | Holding company |
| IPF International Limited | England | Provision of services |
| Provident Polska S.A. | Poland | Home credit |
| Provident Financial s.r.o. | Czech Republic | Home credit |
| Provident Financial s.r.o. | Slovakia | Home credit |
| Provident Financial Zrt. | Hungary | Home credit |
| Provident Mexico S.A. de C.V. | Mexico | Home credit |
| Provident Servicios de Agencia S.A de C.V. | Mexico | Provision of services |
| Provident Servicios S.A de C.V. | Mexico | Provision of services |
| Provident Financial Romania IFN S.A. | Romania | Home credit |
| OOO IPF Bank | Russia | Home credit |