20 Investment in associates and joint ventures

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Share of net assets 
Associates Joint ventures Total
2007  2006  2007  2006  2007  2006 
£m  £m  £m  £m  £m  £m 
At beginning of year  74  427  154  119  228  546 
Share of results before tax  35  63  10  (6) 45  57 
Share of tax  (2) (10) (1) (1) (3) (11)
Share of post-tax results  33  53  9  (7) 42  46 
Dividends paid  –  (17) –  –  –  (17)
New investments  7  2  8  7  15  9 
Acquisitions  56  51  150  102  206  153 
Disposals  (47) (404) (72) (72) (119) (476)
Exchange and other adjustments  (33) (38) 38  5  5  (33)
At end of year  90  74  287  154  377  228 

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Share of net assets 
Associates Joint ventures Total
2007  2006  2007  2006  2007  2006 
£m  £m  £m  £m  £m  £m 
Cost 
At beginning of year  1  122  40  83  41  205 
Acquisitions  –  –  –  –  –  – 
Disposals  (1) (121) (16) –  (17) (121)
Transfer  –  –  3  (43) 3  (43)
At end of year  –  1  27  40  27  41 

The fair value of the Group’s investment in Ambit Properties Limited, an associate listed on the Johannesburg Stock Exchange, is £42m.

Disposal of associates and joint ventures

On 29th June 2007 and 2nd July 2007, the Group disposed of its investment in Gabetti Property Solutions for cash consideration, net of transaction costs of £13m, which after deducting the Group’s share of its net assets on the dates of disposal, resulted in a profit of £8m.

On 24th September 2007, the Group disposed of its investment in Intelenet Global Services for a cash consideration, net of transaction costs of £22m, which, after deducting the Group’s share of its net assets on the date of disposal, resulted in a profit of £13m.

Summarised financial information for the Group’s associates and joint ventures is set out below:

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2007 2006
Joint  Joint 
Associates  ventures  Associates  ventures 
£m  £m  £m  £m 
Property, plant and equipment  588  632  599  142 
Financial investments  239  8  4  2 
Trading portfolio assets  –  –  1  – 
Loans to banks and customers  516  2,372  1,378  797 
Other assets  1,387  314  541  199 
Total assets  2,730  3,326  2,523  1,140 
Deposits from banks and customers  1,515  2,189  1,421  769 
Trading portfolio liabilities  –  –  1  – 
Other liabilities  902  458  887  187 
Shareholders’ equity  313  679  214  184 
Total liabilities  2,730  3,326  2,523  1,140 
Net income  528  340  538  178 
Operating expenses  (404) (292) (334) (178)
Profit before tax  124  48  204  – 
Profit after tax  104  40  186  (2)

The amounts included above, which include the entire assets, liabilities and net income of the investees, not just the Group’s share, are based on accounts made up to 31st December 2007 with the exception of certain undertakings for which the amounts are based on accounts made up to dates not earlier than three months before the balance sheet date.

Associates and joint ventures in 2007 includes £1,728m (2006: £1,525m) of assets, £1,537m (2006: £1,380m) of liabilities and £18m (2006: £25m) of profit after tax in associates and joint ventures within the Absa Group.

The Group’s share of commitments and contingencies of its associates and joint ventures is £6m (2006: £nil).