§ Mr. Gerald HowarthTo ask the Secretary of State for Defence pursuant to the written ministerial statement of 5 December 2002, official Report, column 85WS, on QinetiQ, what proportion of the company's assets is reflected in the £50 million already received by his Department from QinetiQ as part of the purchase price paid by Carlyle Group for those assets; and what the total estimated value is of QinetiQ's assets divided into(a) tangible and (b) intangible assets. [90736]
§ Dr. MoonieWhen QinetiQ was vested as a plc on 1 July 2001 the Ministry of Defence required it to purchase its assets from MOD with a combination of equity and an obligation in the form of interest-bearing loan notes to pay a further £150 million. The £50 million has been paid as part settlement of the outstanding loan notes.
QinetiQ Group plc's Annual Report and Financial Statement 2002 shows a net book value for tangible assets of £534.6 million, the majority of which comprises land and buildings. This figure takes no account of the company's liabilities. The value for disposal of the property on the open market is estimated by QinetiQ's management to be at least £113 million less than the net book value. QinetiQ's Annual Report 2002 also values the intangible assets at £1.0 million.