Interim Results
Associated British Engineering PLC
23 December 2005
ASSOCIATED BRITISH ENGINEERING PLC
INTERIM REPORT
FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2005
ASSOCIATED BRITISH ENGINEERING PLC
INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
CONTENTS Page
Chairman's statemen 1
Consolidated income statement 2
Consolidated interim balance sheet 3
Consolidated interim statement of changes in shareholders' equity 4
Consolidated interim cash flow statement 5
Notes to the interim report 6 - 15
ASSOCIATED BRITISH ENGINEERING PLC
CHAIRMAN'S STATEMENT
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2005
+-------------------------------+-----------------+----------------+----------------+
| | | | |
| | | | |
+-------------------------------+-----------------+----------------+----------------+
|SUMMARY OF RESULTS | | | |
| | | | |
+-------------------------------+-----------------+----------------+----------------+
| | Six Months to | Six Months to | Year to 31 |
| | | | |
| |30 September 2005| 30 September | March 2005 |
| | | 2004 | |
| | £'000 | | £'000 |
| | | £'000 | |
+-------------------------------+-----------------+----------------+----------------+
| | | (restated) | (restated) |
+-------------------------------+-----------------+----------------+----------------+
| | | | |
+-------------------------------+-----------------+----------------+----------------+
|Turnover |1,345 |1,443 |2,700 |
+-------------------------------+-----------------+----------------+----------------+
|Loss before Tax |(62) |(66) |(77) |
+-------------------------------+-----------------+----------------+----------------+
|Loss after Tax |(62) |(66) |(77) |
+-------------------------------+-----------------+----------------+----------------+
| | | | |
+-------------------------------+-----------------+----------------+----------------+
|Earnings per Share | | | |
+-------------------------------+-----------------+----------------+----------------+
|Basic |(0.47p) |(0.50p) |(0.59p) |
+-------------------------------+-----------------+----------------+----------------+
|Diluted |(0.47p) |(0.50p) |(0.59p) |
+-------------------------------+-----------------+----------------+----------------+
| | | | |
+-------------------------------+-----------------+----------------+----------------+
There have been no material changes with regard to the only operational company
in the Group, British Polar Engines Limited, since I last wrote to you with the
full year accounts earlier this year. The board has continued in its efforts to
keep central costs down to a minimum.
Our main focus continues to be the resolution of the pension scheme issues
referred to in great detail in previous communications so that we will then be
in a position to move the Company forward, hopefully culminating in a
transaction in the near future. All parts of the scheme are, or near to, wind
up, and we are in discussions with the Pension Protection Fund with a view to
the British Polar part of the scheme being taken into the Fund. Were that to be
agreed, the Company's involvement in the pensions scheme would be completed.
It is hoped that this can be resolved shortly in which case we will, of course,
announce any significant result once it is known.
These are the first Group financial statements which have been prepared in
accordance with International Financial Reporting Standards ('IFRS'). IFRS
compliant accounting policies are included. In addition, the notes to the
financial information include detailed reconciliations from previously published
UK GAAP information to IFRS numbers published in this interim report and
explanations of the key adjustments made on adoption of IFRS.
The main impacts of the adoption of IFRS upon the consolidated financial
statements are in respect of pension costs, the reclassification of the
Cumulative Preference Shares ('CPS') and the inclusion of accumulated unpaid CPS
dividends.
Pension costs
The actuarial deficit is shown as a liability on the balance sheet. There is no
deferred tax asset in respect of this due to it being improbable that future
taxable profit will be available against which the temporary differences can be
utilised.
CPS
Prior to the adoption of IFRS, the CPS had been disclosed as non-equity share
capital; under IAS 32 'Financial Instruments: disclosure and presentation' these
liabilities are to be reclassified within non-current liabilities. Accordingly
CPS dividends are now reclassified under net finance expense and the accumulated
unpaid CPS dividends are included within non-current liabilities.
ASSOCIATED BRITISH ENGINEERING PLC
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+---------------------------------+------+-------------+-------------+-------------+
| | |Six months to|Six months to| Year to |
+---------------------------------+------+-------------+-------------+-------------+
| | |30 September |30 September | 31 March |
| | | 2005 | 2004 | |
| | | | | 2005 |
+---------------------------------+------+-------------+-------------+-------------+
| | | | (restated) | (restated) |
+---------------------------------+------+-------------+-------------+-------------+
| |Note | £'000| £'000| £'000|
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|TURNOVER | |1,345 |1,443 |2,700 |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|Operating expenses | |(1,401) |(1,484) |(2,748) |
+---------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+---------------------------------+------+-------------+-------------+-------------+
|OPERATING LOSS | |(56) |(41) |(48) |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|Net finance expense | |(6) |(25) |(29) |
+---------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+---------------------------------+------+-------------+-------------+-------------+
|LOSS BEFORE TAXATION | |(62) |(66) |(77) |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|Taxation | |- |- |- |
+---------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+---------------------------------+------+-------------+-------------+-------------+
|LOSS AFTER TAXATION | |(62) |(66) |(77) |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|Dividends | |- |- |- |
+---------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+---------------------------------+------+-------------+-------------+-------------+
|RETAINED LOSS | |(62) |(66) |(77) |
+---------------------------------+------+-------------+-------------+-------------+
| | |====== |====== |====== |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|LOSS PER SHARE | | | | |
+---------------------------------+------+-------------+-------------+-------------+
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
|BASIC AND DILUTED | |(5)p |(5)p |(6)p |
| | | | | |
+---------------------------------+------+-------------+-------------+-------------+
| | |====== |====== |====== |
+---------------------------------+------+-------------+-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
CONSOLIDATED INTERIM BALANCE SHEET
30 SEPTEMBER 2005
+---------------------------------------+--------------+-------------+-------------+
| | At 30 | At 30 | At 31 |
| | September | September | |
| | | | March |
+---------------------------------------+--------------+-------------+-------------+
| | 2005 | 2004 | 2005 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| | £'000 | £'000 | £'000 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| | | (restated) |(restated) |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|ASSETS | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Non-current assets | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Property, plant and equipment |299 |371 |337 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |------------- |-------------|-------------|
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Current assets | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Investments |52 |46 |48 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Inventories |1,386 |1,258 |1,273 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Trade and other receivables |497 |650 |407 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Cash and cash equivalents |986 |1,093 |1,155 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |------------- |-------------|-------------|
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |2,921 |3,047 |2,883 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |------------- |-------------|-------------|
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Total assets |3,220 |3,418 |3,220 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |====== |====== |====== |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|EQUITY | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Capital and reserves attributable to | | | |
|the Company's | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Equity shareholders | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Called up share capital |2,627 |2,627 |2,627 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Share premium account |5,038 |5,038 |5,038 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Other reserve |11 |11 |11 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Retained earnings |(10,207) |(10,388) |(10,145) |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |------------- |-------------|-------------|
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Total equity |(2,531) |(2,712) |(2,469) |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| |------------- |-------------|-------------|
| | | | |
+---------------------------------------+--------------+-------------+-------------+
| | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|LIABILITIES | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Non-current liabilities | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Retirement benefit obligation |4,113 |4,427 |4,124 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Obligations under finance leases |- |4 |1 |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Borrowings - Cumulative preference |712 |712 |712 |
|shares | | | |
| | | | |
+---------------------------------------+--------------+-------------+-------------+
|Cumulative preference share dividends |281 |230 |255 |
|payable | | | |
| | | | |
+---------------------------------------+-------------++-------------+-------------+
| |-------------|------------- |-------------|
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |5,106 |5,373 |5,092 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |-------------|------------- |-------------|
| | | | |
+---------------------------------------+-------------+--------------+-------------+
|Current liabilities | | | |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
|Trade and other payables |641 |753 |593 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
|Obligations under finance leases |4 |4 |4 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |-------------|------------- |-------------|
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |645 |757 |597 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |-------------|------------- |-------------|
+---------------------------------------+-------------+--------------+-------------+
|Total liabilities |5,751 |6,130 |5,689 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |-------------|------------- |-------------|
| | | | |
+---------------------------------------+-------------+--------------+-------------+
|Total equity and liabilities |3,220 |3,418 |3,220 |
| | | | |
+---------------------------------------+-------------+--------------+-------------+
| |====== |====== |====== |
| | | | |
+---------------------------------------+-------------++-------------+-------------+
+---------------------------------------+-------------++-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
+---------------+--------------+--------------+--------------+---------------+---------------+
| |Share Capital |Share Premium |Other reserve | Retained | |
| | | | | Earnings | |
| | | | | | Total |
+---------------+--------------+--------------+--------------+---------------+---------------+
| | £'000 | £'000 | £'000 | £'000 | £'000 |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
| | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Balance at 1 |2,627 |5,038 |11 |(10,322) |(2,646) |
|April 2004 | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Loss for the |- |- |- |(66) |(66) |
|period | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Actuarial |- |- |- |- |- |
|losses in | | | | | |
|defined benefit| | | | | |
|plan | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
| |--------------|--------------|--------------|---------------|---------------|
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Balance at 30 |2,627 |5,038 |11 |(10,388) |(2,712) |
|September 2004 | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Loss for the |- |- |- |(11) |(11) |
|period | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Actuarial gains|- |- |- |254 |254 |
|in defined | | | | | |
|benefit plan | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
| |--------------|--------------|--------------|---------------|---------------|
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Balance at 31 |2,627 |5,038 |11 |(10,145) |(2,469) |
|March 2005 | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Loss for the |- |- |- |(62) |(62) |
|period | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Actuarial |- |- |- |- |- |
|losses in | | | | | |
|defined benefit| | | | | |
|plan | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
| |--------------|--------------|--------------|---------------|---------------|
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
|Balance at 30 |2,627 |5,038 |11 |(10,207) |(2,531) |
|September 2005 | | | | | |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
| |====== |====== |====== |====== |====== |
| | | | | | |
+---------------+--------------+--------------+--------------+---------------+---------------+
ASSOCIATED BRITISH ENGINEERING PLC
CONSOLIDATED INTERIM CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+-----------------------------------------+--------------+--------------+---------------+
| |Six months to |Six months to | Year to |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | 30 September | 30 September | 31 March |
| | 2005 | 2004 | |
| | | | 2005 |
+-----------------------------------------+--------------+--------------+---------------+
| | £'000 | £'000 | £'000 |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | (restated) | (restated) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Cash flows from operating activities | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Loss for the period |(56) |(41) |(48) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Adjustments for: | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Depreciation and amortisation |41 |42 |83 |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Profit on disposal of current asset |(4) |(7) |- |
|investments | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|(Increase)/decrease in inventories |(113) |2 |(13) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|(Increase)/decrease in trade and other |(90) |(134) |109 |
|receivables | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Increase/decrease in trade and other |48 |21 |(139) |
|payables | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Movement in retirement benefit obligation|- |- |(49) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Net cash generated from operating |(174) |(117) |(57) |
|activities | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Cash flows from investing activities | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Purchases of property, plant and |(9) |- |(7) |
|equipment | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Disposal of property, plant and equipment|6 |- |- |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Maturity of current asset investments |- |20 |9 |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Cash held at stockbrokers to invest |- |(20) |(18) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Interest received |20 |1 |22 |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Net cash used in investing activities |17 |1 |6 |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Cash flows from financing activities | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Repayment of borrowings |(1) |(1) |(4) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Repayment of retirement benefit |(11) |- |- |
|obligation | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |(12) |(1) |(4) |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Net decrease in cash and cash equivalents|(169) |(117) |(55) |
+-----------------------------------------+--------------+--------------+---------------+
|Cash and cash equivalents at beginning of|1,155 |1,210 |1,210 |
|period | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |--------------|--------------|---------------|
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
|Cash and cash equivalents at end of |986 |1,093 |1,155 |
|period | | | |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
| |======= |======= |======= |
| | | | |
+-----------------------------------------+--------------+--------------+---------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----+--------------------------------------------------------------------------------+
|1. |SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
+----+-------------------------------------------------+---------------+--------------+
| | | | |
+----+-------------------------------------------------+---------------+--------------+
|(a) |Basis of preparation | | |
+----+-------------------------------------------------+---------------+--------------+
| |These interim consolidated financial statements are for the six months ended 30 |
| |September 2005. They have been prepared in accordance with IAS 34, Interim |
| |Financial Reporting, and are covered by IFRS 1, First-time Adoption of IFRS, |
| |because they are part of the period covered by the Group's first IFRS financial |
| |statements for the year ending 31 March 2006. These interim financial statements|
| |have been prepared in accordance with those IFRS standards and IFRIC |
| |interpretations issued and effective or issued and early adopted as at the time |
| |of preparing these statements (December 2005). The IFRS standards and IFRIC |
| |interpretations that will be applicable at 31 December 2005, including those |
| |that will be applicable on an optional basis, are not known with certainty at |
| |the time of preparing these interim financial statements. The policies set out |
| |below have been consistently applied to all the years presented. |
| | |
| | |
| | |
| |Associated British Engineering PLC's consolidated financial statements were |
| |prepared in accordance with UK Generally Accepted Accounting Principles (UK |
| |GAAP) until 31 March 2005. UK GAAP differs in some areas from IFRS. In preparing|
| |the consolidated interim financial statements, management has amended certain |
| |accounting methods applied in the UK GAAP financial statements to comply with |
| |IFRS. The comparative figures in respect of 2004 were restated to reflect these |
| |adjustments. |
| | |
| | |
| | |
| |Reconciliations and descriptions of the effect of the transition from UK GAAP to|
| |IFRS on the Group's equity and its net income and cash flows are provided in |
| |Note 5. |
| | |
| | |
| | |
| |These consolidated interim financial statements have been prepared under the |
| |historical cost convention. |
| | |
| | |
| | |
| |The information set out in this interim report for the six months ended 30 |
| |September 2005 does not comprise statutory accounts within the meaning of |
| |section 240 of The Companies Act 1985. The statutory accounts for the year ended|
| |31 March 2005, incorporating an unqualified auditors' report, have been filed |
| |with the Registrar of Companies. |
+----+--------------------------------------------------------------------------------+
| | |
+----+--------------------------------------------------------------------------------+
|(b) |Basis of consolidation |
+----+--------------------------------------------------------------------------------+
| |The consolidated financial statements of Associated British Engineering plc (the|
| |Company) comprise the financial statements of Associated British Engineering plc|
| |and its subsidiary undertakings (the Group). The acquisition method of |
| |accounting has been adopted. |
+----+--------------------------------------------------------------------------------+
| | |
+----+--------------------------------------------------------------------------------+
|(c) |Segment reporting |
+----+--------------------------------------------------------------------------------+
| |A business segment is a group of assets and operations engaged in providing |
| |products or services that are subject to risks and returns that are different |
| |from those of other business segments. A geographical segment is engaged in |
| |providing products or services within a particular economic environment that is |
| |subject to risks and returns that are different from those of segments operating|
| |in other economic environments. |
| | |
| | |
+----+--------------------------------------------------------------------------------+
|(d) |Revenue recognition |
+----+--------------------------------------------------------------------------------+
| |Revenue comprises the fair value of the sale of goods and services, net of |
| |value-added tax and discounts. |
+----+--------------------------------------------------------------------------------+
| | |
+----+--------------------------------------------------------------------------------+
|(e) |Property, plant and equipment |
+----+--------------------------------------------------------------------------------+
| |Property, plant and equipment are stated at cost less depreciation. Depreciation|
| |is calculated to write down the cost of all tangible fixed assets by annual |
| |instalments over their expected useful lives on the following bases: |
| | |
| | |
+----+------------------+-------------------------------------------------------------+
| |Freehold buildings|5 per cent |
+----+------------------+-------------------------------------------------------------+
| |Plant and |7 1/2 - 33 1/3 per cent |
| |machinery | |
+----+------------------+------------------------------+---------------+--------------+
+----+------------------+------------------------------+---------------+--------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----+------------------------------------------------------------------------------+
|1. |SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(f) |Research and development |
+----+------------------------------------------------------------------------------+
| |Research expenditure is recognised as an expense as incurred. Costs incurred |
| |on development projects (relating to the design and testing of new or improved|
| |products) are recognised as intangible assets when it is probable that the |
| |project will be a success, considering its commercial and technological |
| |feasibility, and costs can be measured reliably. Other development |
| |expenditures are recognised as an expense as incurred. Development costs |
| |previously recognised as an expense are not recognised as an asset in a |
| |subsequent period. Development costs that have a finite useful life and that |
| |have been capitalised are amortised from the commencement of the commercial |
| |production of the product on a straight line basis over a period of 24 months.|
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(g) |Investments |
+----+------------------------------------------------------------------------------+
| |Investments in subsidiary undertakings are stated at cost less provision for |
| |impairment. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(h) |Cash and cash equivalents |
+----+------------------------------------------------------------------------------+
| |Cash and cash equivalents includes cash in hand, deposits held at call with |
| |banks, other short-term highly liquid investments with original maturities of |
| |three months or less, and bank overdrafts. Bank overdrafts are shown within |
| |borrowings in current liabilities on the balance sheet. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(i) |Foreign currencies |
+----+------------------------------------------------------------------------------+
| |Transactions in foreign currencies are translated at the exchange rate ruling |
| |at the date of the transaction. Monetary assets and liabilities in foreign |
| |currencies are translated at the exchange rates ruling at the balance sheet |
| |date. All exchange differences are dealt with through the profit and loss |
| |account. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(j) |Deferred taxation |
+----+------------------------------------------------------------------------------+
| |Deferred tax is provided in full, using the liability method, on temporary |
| |differences arising between the tax bases of assets and liabilities and their |
| |carrying amounts in the consolidated financial statements. The deferred tax is|
| |not accounted for if it arises from initial recognition of an asset or |
| |liability in a transaction, other than a business combination, that at the |
| |time of the transaction affects neither accounting nor taxable profit or loss.|
| |Deferred tax is determined using tax rates (and laws) that have been enacted |
| |or substantially enacted by the balance sheet date and are expected to apply |
| |when the related deferred tax asset is realised or the deferred tax liability |
| |is settled. |
| | |
| | |
| | |
| |Deferred tax assets are recognised to the extent that it is probable that |
| |future taxable profit will be available against which the temporary |
| |differences can be utilised. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(k) |Leases |
+----+------------------------------------------------------------------------------+
| |Leases of property, plant and equipment where the Group has substantially all |
| |the risks and rewards of ownership are classified as finance leases. Assets |
| |held under finance leases are capitalised at lease inception at the lower of |
| |the asset's fair value and the present value of the minimum lease payments. |
| |Obligations related to finance leases, net of finance charges in respect of |
| |future periods, are included as appropriate within borrowings. The interest |
| |element of the finance cost is charged to the income statement over the life |
| |of the lease so as to produce a constant periodic rate of interest on the |
| |remaining balance of the liability for each period. The plant, property or |
| |equipment is depreciated on the same basis as owned plant and equipment or |
| |over the life of the lease, if shorter. |
| | |
| | |
| | |
| |Leases where the lessor retains substantially all the risks and rewards of |
| |ownership are classified as operating leases. Operating lease rentals (net of |
| |any related lease incentives) are charged against profit on a straight line |
| |basis over the period of the lease. |
| | |
| | |
+----+------------------------------------------------------------------------------+
|(l) |Dividend distribution |
+----+------------------------------------------------------------------------------+
| |Dividend distribution to the Company's shareholders is recognised as a |
| |liability in the Group's financial statements in the period in which the |
| |dividends are approved by the Company's shareholders. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----+------------------------------------------------------------------------------+
|1. |SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
+----+------------------------------------------------------------------------------+
+----+------------------------------------------------------------------------------+
|(m) |Current tax |
+----+------------------------------------------------------------------------------+
| |Current tax expense is recognised in these interim consolidated financial |
| |statements based on management's best estimates of the weighted average annual|
| |tax rate expected for the full financial year. |
| | |
| | |
+----+------------------------------------------------------------------------------+
|(n) |Employee share options |
+----+------------------------------------------------------------------------------+
| |The Company awards employees bonuses in the form of share options, from time |
| |to time, on a discretionary basis. The options are subject to vesting |
| |conditions, and their fair value is recognised as an employee benefits expense|
| |with a corresponding increase in other reserve equity over the vesting period.|
| |The proceeds received net of any directly attributable transaction costs are |
| |credited to share capital (nominal value) and share premium when the options |
| |are exercised. |
+----+------------------------------------------------------------------------------+
| | |
+----+------------------------------------------------------------------------------+
|(o) |Pension commitments |
+----+------------------------------------------------------------------------------+
| |The Group operates a defined benefit pension scheme. |
| | |
| | |
| | |
| |The liability recognised in the balance sheet in respect of defined benefit |
| |plans is the present value of the defined benefit obligation at the balance |
| |sheet date, less the fair value of the plan assets. The defined benefit |
| |obligation is calculated annually by independent actuaries. The present value |
| |of the defined benefit obligation is determined by discounting the estimated |
| |future cash outflows using interest rates of high-quality, long dated |
| |corporate bonds that are denominated in the currency in which the benefits |
| |will be paid. |
+----+------------------------------------------------------------------------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+---+-------------------------------------------------------------------------------+
|2. |GEOGRAPHICAL SEGMENT ANALYSIS |
| | |
+---+-------------------------------------------------------------------------------+
| | |
| | |
+---+-------------------------------------------------------------------------------+
| |The segmental turnover for the six months ended 30 September 2005 is: |
| | |
+---+-------------------------------------------------------------------------------+
| | |
| | |
+---+------------------------------------+-------------+-------------+--------------+
| | |Six months to|Six months to| Year to 31 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| | |30 September |30 September | March 2005 |
| | | 2005 | 2004 | |
+---+------------------------------------+-------------+-------------+--------------+
| | |£'000 | £'000 | £'000 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| | | | | |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |United Kingdom |713 |568 |1,120 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Europe |199 |236 |667 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Middle East |4 |79 |92 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Far East and Australasia |217 |254 |354 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Africa |12 |190 |209 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |North and South America |185 |94 |233 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Russia |15 |22 |25 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| | |---------- |---------- |---------- |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| |Total |1,345 |1,443 |2,700 |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| | |====== |====== |====== |
| | | | | |
+---+------------------------------------+-------------+-------------+--------------+
| | |
| | |
+---+-------------------------------------------------------------------------------+
| |The company's financial reporting system is not configured to enable it to |
| |readily report the result by geographical segment. |
| | |
+---+-------------------------------------------------------------------------------+
+----+-----------------------------------------------------------------------------+
|3. |TRANSITION TO IFRS |
| | |
+----+-----------------------------------------------------------------------------+
| | |
| | |
+----+-----------------------------------------------------------------------------+
| |The Group's financial statements for the year ending 31 March 2006 will be |
| |the first annual financial statements that comply with IFRS. These interim |
| |financial statements have been prepared as described in Note 1. The Group has|
| |applied IFRS 1 in preparing these consolidated interim financial statements. |
| | |
| | |
| | |
| |Associated British Engineering PLC's transition date is 1 April 2004. The |
| |Group prepared its opening IFRS balance sheet at that date. The reporting |
| |date of these interim consolidated financial statements is 30 September 2005.|
| |The Group's IFRS adoption date is 1 April 2005. |
| | |
| | |
| | |
| |In preparing these interim consolidated financial statements in accordance |
| |with IFRS 1, the Group has elected to apply the share-based payment |
| |exemption. It applied IFRS 2 from 1 April 2004 to those options which were |
| |issued after 7 November 2002 but had not vested by 1 April 2005. |
+----+-----------------------------------------------------------------------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+-----+---------------------------------------------------------------------------+
|4. |EXPLANATION OF THE EFFECT OF THE TRANSITION TO IFRS |
| | |
+-----+---------------------------------------------------------------------------+
| | |
| | |
+-----+---------------------------------------------------------------------------+
| |The following explains the material adjustments on the transition to IFRS |
| | |
+-----+---------------------------------------------------------------------------+
+----+----------------------------------+-------------+-------------+-------------+
|4(a)|Retirement benefit obligation | At 1 | At 30 | At 31 |
| | | | | |
| | | April 2004 | September | March 2005 |
| | | | 2004 | |
+----+----------------------------------+-------------+-------------+-------------+
| | | £'000 | £'000 | £'000 |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | |
| | |
+----+----------------------------------+-------------+-------------+-------------+
| |Retirement benefit obligation |4,427 |4,427 |4,124 |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| |Reversal of pension provision |(60) |(60) |(11) |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | |---------- |---------- |---------- |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | |4,367 |4,367 |4,113 |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | |====== |====== |====== |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| |Under IAS 19, Employee Benefits, actuarial gains and losses are recognised |
| |in the balance sheet and the provision recognised under UK GAAP is reversed.|
| |No adjustment has been made in respect of deferred tax as it is uncertain |
| |whether any tax is recoverable. |
| | |
| | |
| | |
| |An actuarial valuation has not been performed at the interim period on the |
| |basis that the costs of performing this work far exceed the benefits. |
+----+----------------------------------+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
|4(b)|Non-equity financial instruments | | | |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----+----------------------------------+-------------+-------------+-------------+
| |Under IAS 32, Financial Instruments, the group's 7% cumulative preference |
| |shares and 8% cumulative redeemable preference shares fall to be classified |
| |as debt in the balance sheet and the dividends classified as financial |
| |expense in the income statement. Accordingly, a balance sheet adjustment of |
| |£712,000 is reflected at 1 April 2004 and 31 March 2005 in respect of share |
| |capital and the adjustment for appropriation in respect of non-equity shares|
| |reversed. |
+----+----------------------------------------------------------------------------+
+-----+----------------------------------+------------+-------------+------------+
|4(c) |Adjustments to Share capital | At 1 | At 30 | At 31 |
| | | | | |
| | | April 2004 | September | March 2005 |
| | | | 2004 | |
+-----+----------------------------------+------------+-------------+------------+
| | |£'000 |£'000 |£'000 |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| |Reclassification of non-equity |712 |712 |712 |
| |instruments | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | |====== |====== |====== |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
|4(d) |Adjustments to Retained Earnings | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | | At 1 | At 30 | At 31 |
| | | | | |
| | | April 2004 | September | March 2005 |
| | | | 2004 | |
+-----+----------------------------------+------------+-------------+------------+
| | | £'000 | £'000 | £'000 |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| |Retirement benefit obligation |(4,427) |(4,427) |(4,124) |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| |Reversal of pension provision |60 |60 |11 |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| |Reversal of preference share |(204) |(230) |(255) |
| |dividends adjustment | | | |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | |------------|------------ |------------|
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | |(4,571) |(4,597) |(4,368) |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
| | |====== |====== |====== |
| | | | | |
+-----+----------------------------------+------------+-------------+------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----------------------------------------------------------------------------------+
|5(a). RECONCILIATION OF EQUITY AT 1 APRIL 2004 |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| |Note | UK GAAP | Adjustments | IFRS |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | £'000 | £'000 | £'000 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|ASSETS | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Property, plant and equipment | |413 |- |413 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Investments | |39 |- |39 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Inventories | |1,260 |- |1,260 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other receivables | |516 |- |516 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cash and cash equivalents | |1,210 |- |1,210 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |3,025 |- |3,025 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total assets | |3,438 |- |3,438 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|EQUITY | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Capital and reserves attributable | | | | |
|to the Company's equity | | | | |
|shareholders | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Called up share capital |4(c) |3,339 |(712) |2,627 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Share premium account | |5,038 |- |5,038 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Other reserve | |11 |- |11 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retained earnings |4(d) |(5,751) |(4,571) |(10,322) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity | |2,637 |(5,283) |(2,646) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|LIABILITIES | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retirement benefit obligation |4(a) |60 |4,367 |4,427 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |5 |- |5 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Borrowings - Cumulative preference|4(b) |- |712 |712 |
|shares | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cumulative preference share |4(b) |- |204 |204 |
|dividends payable | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |65 |5,283 |5,348 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other payables | |732 |- |732 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |4 |- |4 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |736 |- |736 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
+----------------------------------+-----+-------------+-------------+-------------+
|Total liabilities | |801 |5,283 |6,084 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity and liabilities | |3,438 |- |3,438 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+-----------------------------------------------------------------------------------+
|5(b). RECONCILIATION OF NET INCOME FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2004 |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
| | Note | UK GAAP| Adjustments | IFRS |
+----------------------------------+------+-------------+-------------+-------------+
| | | £'000| £'000| £'000|
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|TURNOVER | |1,345 |- |1,345 |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Operating expenses | |(1,401) |- |(1,401) |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|OPERATING LOSS | |(56) |- |(56) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Net finance expense | 4(b) |20 |(26) |(6) |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|LOSS BEFORE TAXATION | |(36) |(26) |(62) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Taxation | |- |- |- |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|LOSS AFTER TAXATION | |(36) |(26) |(62) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Dividends | 4(b) |(26) |26 |- |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|RETAINED LOSS | |(62) |- |(62) |
+----------------------------------+------+-------------+-------------+-------------+
| | |====== |====== |====== |
+----------------------------------+------+-------------+-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----------------------------------------------------------------------------------+
|5(c). RECONCILIATION OF EQUITY AT 30 SEPTEMBER 2004 |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| |Note | UK GAAP | Adjustments | IFRS |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | £'000 | £'000 | £'000 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|ASSETS | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Property, plant and equipment | |371 |- |371 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Investments | |46 |- |46 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Inventories | |1,258 |- |1,258 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other receivables | |650 |- |650 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cash and cash equivalents | |1,093 |- |1,093 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |3,047 |- |3,047 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total assets | |3,418 |- |3,418 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|EQUITY | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Capital and reserves attributable | | | | |
|to the Company's equity | | | | |
|shareholders | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Called up share capital |4(c) |3,339 |(712) |(2,627 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Share premium account | |5,038 |- |5,038 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Other reserve | |11 |- |11 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retained earnings |4(d) |(5,791) |(4,597) |(10,388) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity | |2,597 |(5,309) |(2,712) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|LIABILITIES | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retirement benefit obligation |4(a) |60 |4,367 |4,427 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |4 |- |4 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Borrowings - Cumulative preference|4(b) |- |712 |712 |
|shares | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cumulative preference share |4(b) |- |230 |230 |
|dividends payable | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |64 |5,309 |5,373 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other payables | |753 |- |753 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |4 |- |4 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |757 |- |757 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
+----------------------------------+-----+-------------+-------------+-------------+
|Total liabilities | |821 |5,309 |6,130 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity and liabilities | |3,418 |- |3,418 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+-----------------------------------------------------------------------------------+
|5(d). RECONCILIATION OF NET INCOME FOR THE YEAR ENDED 31 MARCH 2005 |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
| | Note | UK GAAP| Adjustments | IFRS |
+----------------------------------+------+-------------+-------------+-------------+
| | | £'000| £'000| £'000|
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|TURNOVER | |2,700 |- |2,700 |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Operating expenses | |(2,748) |- |(2,748) |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|OPERATING LOSS | |(48) |- |(48) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Net finance expense | 4(b) |22 |(51) |(29) |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|LOSS BEFORE TAXATION | |(26) |(51) |(77) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Taxation | |- |- |- |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|LOSS AFTER TAXATION | |(26) |(51) |(77) |
+----------------------------------+------+-------------+-------------+-------------+
| | | | | |
+----------------------------------+------+-------------+-------------+-------------+
|Dividends | 4(b) |(51) |51 |- |
+----------------------------------+------+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
+----------------------------------+------+-------------+-------------+-------------+
|RETAINED LOSS | |(77) |- |(77) |
+----------------------------------+------+-------------+-------------+-------------+
| | |====== |====== |====== |
+----------------------------------+------+-------------+-------------+-------------+
ASSOCIATED BRITISH ENGINEERING PLC
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005
+----------------------------------------------------------------------------------+
|5(e). RECONCILIATION OF EQUITY AT 31 MARCH 2005 |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| |Note | UK GAAP | Adjustments | IFRS |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | £'000 | £'000 | £'000 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|ASSETS | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Property, plant and equipment | |337 |- |337 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current assets | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Investments | |48 |- |48 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Inventories | |1,273 |- |1,273 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other receivables | |407 |- |407 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cash and cash equivalents | |1,155 |- |1,155 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |2,883 |- |2,883 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|-------------|
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total assets | |3,220 |- |3,220 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|EQUITY | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Capital and reserves attributable | | | | |
|to the Company's equity | | | | |
|shareholders | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Called up share capital |4(c) |3,339 |(712) |3,339 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Share premium account | |5,038 |- |5,038 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Other reserve | |11 |- |11 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retained earnings |4(d) |(5,777) |(4,368) |(10,145) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity | |2,611 |(5,080) |(2,469) |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|LIABILITIES | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Non-current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Retirement benefit obligation |4(a) |11 |4,113 |4,124 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |1 |- |1 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Borrowings - Cumulative preference|4(b) |- |712 |712 |
|shares | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Cumulative preference share |4(b) |- |255 |255 |
|dividends payable | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |12 |5,080 |5,092 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Current liabilities | | | | |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Trade and other payables | |593 |- |593 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Obligations under finance leases | |4 |- |4 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |597 |- |597 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
+----------------------------------+-----+-------------+-------------+-------------+
|Total liabilities | |609 |5,080 |5,689 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |-------------|-------------|------------ |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
|Total equity and liabilities | |3,220 |- |3,220 |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
| | |====== |====== |===== |
| | | | | |
+----------------------------------+-----+-------------+-------------+-------------+
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