IFRS Transition Statement
De La Rue PLC
13 July 2005
DE LA RUE PLC
DE LA RUE PRESENTS RESULTS FOR 2004/2005 UNDER INTERNATIONAL FINANCIAL REPORTING
STANDARDS (IFRS)
De La Rue plc is today publishing its unaudited results under IFRS for the year
ended 26 March 2005. A full report, which contains detailed explanations of the
IFRS and UK GAAP numbers and discusses the impact of the adoption of IFRS on De
La Rue, is attached and is also available on the De La Rue web site,
www.delarue.com. The report also reconciles the previously reported UK GAAP
results to the restated position in accordance with IFRS for the opening balance
sheet at 27 March 2004, the unaudited results for the six months ended 25
September 2004 under IFRS as well as the unaudited financial position for the
year ended 26 March 2005.
The full year 2005 results prepared on an IFRS basis and those under UK GAAP are
summarised as follows:
----------------------------- -------- ----------
Year Ended 26 March 2005 IFRS UK GAAP
£m £m
----------------------------- -------- ----------
Headline Profit before tax 65.0 66.5
Headline Earnings 46.2 46.3
Headline Earnings per share 25.9p 26.0p
The adoption of IFRS in the Group accounts represents an accounting change only
and will not affect the operations or cash flows of the Group. The principal
areas of impact are in relation to Pensions accounting (IAS 19), Research and
Development costs (IAS 38) and share option accounting (IFRS 2). The Group has
adopted IAS 39 (Financial Instruments: Recognition and Measurement) from 27
March 2005 and adjustments to prior periods do not include any effects of that
standard.
Stephen King, Group Finance Director, De La Rue plc commented:
'As previously indicated, the transition to IFRS does not have a material impact
on Group earnings. De La Rue's transition to the new standards has gone well and
we are pleased to present unaudited financial information for prior periods well
in advance of the first set of results under IFRS. We have addressed the
financial effects of the standards as well as the impact on systems, people and
processes.'
-ends-
For further information please contact:
De La Rue plc
Stephen King, Group Finance Director
Mark
Fearon, Head of Corporate Affairs 01256 605307
01256 605303
Financial Dynamics
Richard Mountain 020 7269 7291
13 July 2005
Notes to Editors:
1. De La Rue is the world's largest commercial security printer and papermaker,
involved in the production of over 150 national currencies and a wide range
of security documents such as passports, fiscal stamps, travellers cheques
and authentication labels. The Company is a leading provider of cash
handling equipment and software solutions to banks and retailers worldwide,
helping them to reduce the cost of handling cash. De La Rue employs over
6,200 people across 31 countries and has an ongoing turnover of
approximately £650m. De La Rue is a member of the FTSE 250. Its ordinary
shares are listed with the UK Listing Authority and trade on the market for
listed securities on the London Stock Exchange under the symbol DLAR. For
further information visit De La Rue's website at www.delarue.com.
2. A briefing is being held today for analysts and shareholders, for details
contact Diana Brown on 01256 605307.
Financial Information on the Transition to International Financial Reporting
Standards
13 July 2005
Contents
1. Introduction
2. Basis of Preparation
3. Impact of Transition
4. Employee Benefits (IAS 19)
5. Share-based Payments (IFRS 2)
6. Intangible Assets
6.1 Goodwill (IFRS 3)
6.2 Development Costs (IAS 38)
6.3 Capitalised Software Costs (IAS 38)
7. Dividends (IAS 10)
8. Taxation (IAS 12)
9. Other areas
9.1 Associates
9.2 Earnings per share
9.3 Cash flow statement
9.4 Segmental reporting
9.5 Presentation of reconciliations
Appendices
A Income statement for the year ended 26 March 2005
B Balance Sheet at 26 March 2005
C Balance Sheet at 27 March 2004
D Income statement for the half year ended 25 September 2004
E Balance Sheet at 25 September 2004
1. INTRODUCTION
De La Rue plc will be presenting its consolidated financial statements in
accordance with International Financial Reporting Standards (IFRS) for the year
ended 25 March 2006. Previously the Group has prepared financial information in
accordance with United Kingdom generally accepted accounting principles (UK
GAAP). The first financial results under IFRS will be the interim results for
the six months ended 24 September 2005.
The estimated impact of the transition to IFRS on the results and financial
position of De La Rue is set out below. The transition does not affect
underlying business cash flows, but will principally impact the following areas:
• Accounting for share based payments;
• Other employee benefits, specifically defined benefit pension scheme accounting;
• Development expenditure;
• Amortisation of goodwill; and
• Accounting for dividends to shareholders.
IFRS will also bring a number of disclosure and presentation changes, in particular:-
• Associate profits to be disclosed net of tax, impacting PBT;
• All exceptional items to be charged in arriving at operating profit;
• Reclassification of software assets from tangible to intangible fixed assets and;
• Liabilities, most notably provisions, to be split between current and non-current.
De La Rue has adopted IAS 32 (Financial Instruments:Disclosures and Presentation) and IAS 39
(Financial Instruments: Recognition and Measurement) from 27 March 2005 and hence there is no
impact shown within this report. IAS 39 has implications for internal processes and systems
but a material impact on earnings is not anticipated, subject to meeting the hedging provisions
set out within the standard as planned.
2. BASIS OF PREPARATION
The financial information within this report has been prepared on the basis of the
International Financial Reporting Standards and interpretations that are expected to
be in effect and endorsed by the EU for the year ended 25 March 2006. Management
has performed a thorough review of all relevant standards and considered in detail
how their application will impact De La Rue. Revised Group policies and procedures
have been established and applied in producing the information within this report.
Many listed companies, both in the United Kingdom and other countries, are currently
transitioning to IFRS. Therefore, a degree of uncertainty remains in interpreting
a number of areas of IFRS, particularly regarding the new standards issued in December
2003. At this early stage, practice is not sufficiently established to provide clear
guidance in interpreting new standards or in determining how IFRS should be applied
in all instances. As practice evolves it is possible that different interpretations
will emerge. It is also possible that the IFRS currently in place will change,
either due to the process of EU endorsement, or as new or revised standards are
issued by the IASB. The financial position disclosed within this document is therefore
provisional and may require revision for any of the factors noted above prior to
issue of the interim financial statements to 24 September 2005 and the first audited
financial statements under IFRS for the year ended 25 March 2006.
IFRS 1 First-time adoption of International Financial Reporting Standards
sets out the requirements for entities transitioning to IFRS. In general,
companies are required to apply all relevant IFRS retrospectively from the
date of transition. There are however a number of optional exemptions from
this requirement in addition to a number of compulsory exemptions. The most
significant of the optional exemptions that De La Rue has elected to take are as follows:
Business combinations
IFRS 1 allows an exemption from applying IFRS 3 Business Combinations
retrospectively to all business combinations. Consequently, acquisitions prior
to the date of transition (27 March 2004) will not be restated. From the date of
transition to IFRS goodwill is no longer subject to amortisation but will be
reviewed at least annually for impairment.
Employee benefits
Cumulative actuarial gains and losses will be recognised in full from the date
of transition. The Group intends to adopt early the amendments to IAS 19 issued
by the IASB in December 2004 permitting recognition of annual actuarial gains
and losses in full outside of the income statement in the statement of
recognised income and expense.
Cumulative translation differences
The exemption allows cumulative translation differences on net investments in
foreign subsidiaries to be set at zero at the date of transition to IFRS.
Financial Instruments
The option to defer adoption of IAS 32 and 39 has been taken and accordingly the
information within this report does not include any effects of these standards.
IAS 32 and 39 have been adopted with effect from 27 March 2005 with no
restatement of comparative information. The opening impact of the adoption of
IAS 32 and 39 at 27 March 2005 will be disclosed in the interim results for the
six months ended 24 September 2005.
Property, plant and equipment
IFRS 1 permits fair value to be used as deemed cost for any individual item of
property, plant or equipment at the date of transition to IFRS. Following a
review of our property portfolio a downward adjustment of £3.3m has been made to
the transitional balance sheet at 27 March 2004. This reflects the fair value of
certain properties as valued by an external independent valuer as at that date.
3. IMPACT OF TRANSITION
The effects of the adoption of IFRS for the year ended 26 March 2005, the half
year to 25 September 2004 and on the transition balance sheet at 27 March 2004
are shown in the attached reconciliations. The most significant impacts on
headline profit before tax and Earnings Per Share for the year ended 26 March
2005 are summarised below:
Year ended Headline PBT Headline earnings Headline EPS (pence)
26 March 2005 £'m £'m
UK GAAP 66.5 46.3 26.0
Pensions and other
employee benefits 1.8 1.8 1.0
Capitalisation of
development costs
(net of amortisation) 1.1 1.1 0.6
Share based payments (1.4) (1.4) (0.8)
Taxation adjustments - (1.6) (0.9)
Reclassification of
Associates tax (3.0) - -
IFRS 65.0 46.2 25.9
1. Headline figures are before exceptional items and goodwill amortisation.
2. Earnings is defined as profit after tax and minority interests.
The principal adjustments for De La Rue as a result of the adoption of IFRS are
discussed in more detail in the following section. Full details of our IFRS
accounting policies will be disclosed within the first IFRS announcement for the
six months to 24 September 2005.
4. EMPLOYEE BENEFITS (IAS 19)
Pensions
The Group has previously accounted for the defined benefit pension schemes in
line with SSAP 24 Accounting for pension costs. Full FRS 17 disclosures have
been made in the consolidated financial statements in line with the requirements
of the standard.
In accordance with SSAP 24, a regular pension cost is established based on
actuarial advice and charged to operating profits. Variations from the regular
pension cost are spread forward over the average remaining service lives of the
employees.
IAS 19 is broadly similar to FRS 17. The standard requires the net valuation of
the Group's defined benefit pension scheme to be reflected on the balance sheet
and prescribes certain assumptions as to the valuation of liabilities. These
differ from those used under SSAP 24 and in general represent a significantly
more prudent valuation assuming investment returns are restricted to prescribed
bond yields. The charge to the income statement will comprise an operating
charge and a finance charge (within interest) the latter representing the
difference between the expected return on assets and the interest on scheme
liabilities. The Group has opted to early adopt the amendments to IAS 19 issued
in December 2004 allowing annual actuarial gains and losses to be recognised in
full outside of the income statement in a statement of recognised income and
expense.
Under IAS 19 a deficit of £64m is recognised at 27 March 2004, rising to £79m as
at 26 March 2005. This increase is predominantly attributable to an actuarial
revision of mortality rates in line with common practice.
The operating charge for 2004/2005 is decreased by £0.4m with a beneficial
impact of £1.5m to finance costs, giving rise to an overall increase in PBT of
£1.9m. The impact on finance costs will be difficult to predict going forward.
Other employee benefits
Under UK GAAP, in line with common practice, De La Rue does not account for
holiday accruals unless legally obliged to make cash settlement. IAS 19
explicitly requires appropriate provision to be made for the cost of holiday
entitlements not taken at the balance sheet date. An accrual of £1.8m has been
recorded as at 26 March 2005. The annual impact on the income statement is
expected to be broadly neutral although a degree of seasonality is introduced as
the amount of outstanding holiday will generally be higher at March than
September.
5. SHARE BASED PAYMENTS (IFRS 2)
IFRS 2 Share based payments requires a charge to be made to the income statement
for awards made based on the fair value of the option assessed at the date of
grant. The charge is spread over the vesting period of the options and is based
on the number of options that may reasonably be expected to vest. IFRS 2 has
been applied to equity settled option awards granted after 7 November 2002 and
not vested by 1 January 2005 in accordance with the requirements of the
standard.
De La Rue currently operates a number of share option schemes. A binomial model
has been used to assess the fair value of options awarded under the most
significant schemes.
Under UK GAAP, a charge is required where options awarded have an intrinsic
value i.e. the exercise price is below the prevailing market price. As options
have traditionally been awarded with an exercise price equal to the prevailing
market share price no charges have previously been recorded.
The impact of the adoption of IFRS 2 has been a charge to the income statement
of £1.4m in 2004/2005. This charge is expected to increase in the coming year to
approximately £2.0m reflecting a full year's charge in respect of some awards
and the impact of new awards that we anticipate will be granted.
6. INTANGIBLE ASSETS
6.1 Goodwill (IFRS 3)
Goodwill is no longer subject to annual amortisation under IFRS 3 Business
Combinations. Instead, goodwill will be subject to an annual impairment review
or more frequently where any indication of impairment exists. Under UK GAAP
goodwill was capitalised and amortised over an appropriate period, not exceeding
20 years.
The Group has elected to apply the IFRS 1 optional exemption to not apply IFRS 3
retrospectively. Consequently the net book value of goodwill as at 27 March 2004
becomes the deemed cost upon transition to IFRS.
Negative goodwill shown within intangible assets of £0.8m on the published March
2004 balance sheet has been credited directly to reserves in the transitional
IFRS balance sheet as negative goodwill is not permitted under IFRS 3.
In line with IFRS 3, the UK GAAP amortisation charge has been reversed in the
restated financial information, which has resulted in an increase to profits of
£1.4m for 2004/2005.
The exceptional charge of £11.5m within the UK GAAP financial statements relates
to an impairment charge and is therefore unchanged by the application of IFRS.
6.2 Development costs (IAS 38)
IAS 38 Intangible assets requires that development costs meeting certain
criteria are capitalised and amortised over an appropriate period. Under UK GAAP
De La Rue has historically expensed all research and development expenditure in
the year in which it is incurred.
The key criteria for capitalising development expenditure under IAS 38 are that
an asset must be considered able to generate future economic benefits and that
costs are capable of being reliably measured. Management has performed a
detailed review of development expenditure around the Group and costs meeting
the relevant criteria have been capitalised retrospectively. A detailed policy
has been established to ensure costs are appropriately treated going forward.
In accordance with IAS 38, at 26 March 2005, development assets with a net book
value of £6.6m have been capitalised, which has uplifted net assets accordingly.
During 2004/2005 £2.6m of costs were capitalised, offset by an amortisation
charge for the year of £1.5m. The level of benefit to the income statement is
expected to be smaller going forward.
6.3 Capitalised software costs (IAS 16)
Under IFRS, capitalised software costs which are not an integral part of the
associated hardware are required to be classified as intangible assets. The
Group has previously capitalised eligible software costs within tangible fixed
assets.
The impact of the transition to IFRS is the reclassification of software assets
with a net book value of £2.6m from tangible fixed assets to intangible assets
as at March 2005. The amortisation policy in respect of these assets is
unchanged.
7. DIVIDENDS (IAS 10)
Proposed dividends are treated as an adjusting post balance sheet event under UK
GAAP and recognised as a liability at the period end. IAS 10 Post balance sheet
events does not allow dividends declared after the balance sheet date to be
recognised as a liability at the period end as they do not meet the definition
of a 'present obligation' as set out by IAS 37 Provisions, Contingent
Liabilities, and Contingent Assets.
The final dividends for the years ended 27 March 2004 and 26 March 2005, and for
the half year to September 2004 have been reversed and recognised as paid during
the following period. The result is an increase in net assets of £17.7m at March
2004 and £19.0m at 26 March 2005. Subject to the level of dividends remaining at
a relatively consistent level the ongoing impact on annual retained earnings
will be broadly neutral.
8. TAXATION (IAS 12)
Under UK GAAP, deferred tax is recognised in respect of all timing differences
that have originated but not reversed by the balance sheet date and which could
give rise to a future obligation to pay more or less tax.
Deferred tax is recognised in respect of all temporary differences at the
balance sheet date between the tax bases of assets and liabilities and their
accounting carrying value under IAS 12 'Income Taxes'
A further difference between IAS 12 and UK GAAP is that under UK GAAP deferred
tax was only provided on unremitted earnings to the extent that dividends were
accrued or if there was a binding agreement for the distribution of earnings at
the reporting date. Under IFRS full provision must be made for tax arising on
unremitted earnings from subsidiaries, joint ventures and associated companies,
except to the extent that the Group can control the timing of remittances and
remittance is not probable in the foreseeable future.
The current tax assets and liabilities in the balance sheet are unaffected by
IFRS as the tax payable was based on the relevant local GAAP accounts. With the
exception of current tax relief on share based payments, which has been
recognised in equity, the current tax charge in the income statement has been
unaffected by IFRS.
The Group's effective tax rate on profit before tax, goodwill amortisation (UK
GAAP only) and exceptional items has increased under IFRS from 28.0% to 29.7%
before taking account of the reclassification of associate company taxation. The
increase in effective rate is mainly as a result of changes to current and
deferred tax as a consequence of the adoption of IFRS 2 Share based payments.
The effective tax rate after the reclassification of associates' taxation is
26.5%
9. OTHER AREAS
9.1 Associates (IAS 1)
A change to the way in which the share of associates' profits is presented on
the face of the income statement is required under IFRS. Under UK GAAP, the
share of associates' profits is shown gross of tax, with associates' tax
disclosed as part of the overall tax charge. IFRS requires that the share of
associates' profits is disclosed net of tax within Group operating profit. This
has the impact of reducing profit before tax, but has no overall effect on
earnings.
For the year ended 26 March 2005 this change in presentation reduces profit
before tax by £3.0m, with no consequent change to profit after tax or earnings
9.2 Earnings per share (IAS 33)
The method for calculating earnings per share under IFRS is broadly consistent
with UK GAAP. Group policy will be to continue to disclose an adjusted (basic
and diluted) earnings per share figure which will be disclosed in the notes to
the accounts in line with IAS 33 Earnings per share.
The calculation of adjusted earnings per share will be based on the earnings
measure used for the basic calculation adjusted for exceptional items net of
tax.
9.3 Cash flow statement (IAS 7)
The adoption of IFRS does not impact the underlying business cash flows of the
Group. However, IAS 7 Cash Flow Statements differs quite significantly from the
UK equivalent standard in terms of presentation of the cash flow statement.
IAS 7 also has a broader definition of cash and cash equivalents than UK GAAP.
Cash equivalents encompasses short-term investments with a maturity of less then
three months which would generally not fall within the UK GAAP definition of
cash.
9.4 Segmental reporting (IAS 14)
Under IFRS, identification of the primary and secondary reporting formats for
segmental reporting is dependant on the dominant source and nature of risks and
returns. For De La Rue, products and services sold is the key determinant of
risks and rewards, consequently business segments will continue to be the
primary reporting format with geographical segments as the secondary reporting
format.
The Group has reviewed the requirements under IFRS and concluded that the
business segments previously disclosed remain appropriate, these being: Security
Paper and Print, and Cash Systems.
9.5 Presentation of reconciliations
The purpose of the financial information presented in the attached
reconciliations is to explain the impact of the adoption of IFRS on previously
reported UK GAAP financial information. Whilst the format used is representative
of that required by IFRS it is not intended to be strictly in accordance with
IAS 1. The main differences from the UK GAAP format are as follows:
• Exceptional items have been charged before arriving at operating profit;
• The share of associates' operating profits are disclosed net of tax on a single line;
• All assets and liabilities are required to be disclosed as either current or non-current.
The 'other' adjustments columns shown within the attached reconciliations represent various
minor adjustments, none of which is material individually.
A. Reconciliation of UK GAAP to preliminary IFRS income statement for the year ended 26 March 2005
---------- ----------
Share-based Employee Development
UK GAAP payments benefits Goodwill assets Reclassifications IFRS
£m £m £m £m £m £m £m
Revenue 643.2 643.2
Operating
expenses (590.0) (1.4) 0.3 1.4 1.1 (588.6)
Exceptional
items (24.6) 8.9 (15.7)
---------- --------- --------- --------- --------- ---------- ----------
Operating
profit 28.6 (1.4) 0.3 1.4 1.1 8.9 38.9
Share of
associates 9.4 (3.0) 6.4
operating
profit
Non-operating 8.9 (8.9) -
exceptionals
---------- --------- --------- --------- --------- ---------- ----------
Profit on
ordinary 46.9 (1.4) 0.3 1.4 1.1 (3.0) 45.3
activities
before
interest
Net interest 2.5 1.5 4.0
---------- --------- --------- --------- --------- ---------- ----------
Profit on
ordinary 49.4 (1.4) 1.8 1.4 1.1 (3.0) 49.3
activities
before
taxation
Taxation (15.9) (0.8) (0.5) (0.2) (0.3) 3.0 (14.7)
---------- --------- --------- --------- --------- ---------- ----------
Profit on
ordinary 33.5 (2.2) 1.3 1.2 0.8 - 34.6
activities
after
taxation
Minority
interests (1.6) (1.6)
---------- --------- --------- --------- --------- ---------- ----------
Profit
attributable
to equity 31.9 (2.2) 1.3 1.2 0.8 - 33.0
shareholders
---------- ----------
--------------- ---------- --------- --------- --------- --------- ---------- ----------
Profit before
tax,
exceptional
items and
goodwill
amortisation 66.5 (1.4) 1.8 - 1.1 (3.0) 65.0
--------------- ---------- --------- --------- --------- --------- ---------- ----------
B. Reconciliation of UK GAAP to preliminary IFRS balance sheet for the year ended 26 March 2005
Development Software Employee Tangible
UK GAAP Goodwill assets assets Benefits Taxation Reclassifications Dividends Assets IFRS
£m £m £m £m £m £m £m £m £m £m
Non-current
assets
Goodwill 15.4 2.3 (2.9) 14.8
Other
intangible
assets - 6.6 2.6 9.2
Property,
plant and
equipment 154.6 (2.6) (3.3) 148.7
Trade and
other
receivables 1.1 1.1
Deferred
taxation 30.8 26.9 (3.6) 0.6 54.7
Investments:
- Associates 14.0 14.0
- Other 0.3 0.3
-------- -------- --------- --------- --------- -------- ---------- -------- --------- ---------
216.2 2.3 6.6 - 26.9 (3.6) (2.9) (2.7) 242.8
Current
assets
Inventories 73.8 73.8
Trade and
other
receivables 88.7 88.7
Cash and
cash
equivalents 140.7 140.7
-------- -------- --------- --------- --------- -------- ---------- -------- --------- -----------
303.2 303.2
-------- -------- --------- --------- --------- -------- -------- -------- --------- ---------
Total 519.4 2.3 6.6 26.9 (3.6) (2.9) (2.7) 546.0
assets
Current liabilities
Borrowings (17.8) (17.8)
Trade and
other
payables (194.2) (1.8) 0.6 19.0 (176.4)
Provisions (49.8) (1.3) 25.1 (26.0)
-------- -------- --------- --------- --------- -------- ---------- -------- --------- ---------
(261.8) (3.1) 0.6 25.1 19.0 (220.2)
Non-current liabilities
Borrowings (16.4) (16.4)
Trade and
other
payables (12.8) (12.8)
Net
retirement
benefit
liability - (86.7) (25.1) (111.8)
-------- -------- --------- --------- --------- -------- ---------- -------- -------- ---------
(29.2) (86.7) (25.1) (141.0)
-------- -------- --------- --------- --------- -------- ---------- -------- -------- ---------
Total
liabilities (291.0) (89.8) 0.6 - 19.0 (361.2)
-------- -------- --------- --------- --------- -------- ---------- -------- -------- ---------
Net assets 228.4 2.3 6.6 - (62.9) (3.0) (2.9) 19.0 (2.7) 184.8
-------- --------
Shareholders' equity
Share
capital 46.1 46.1
Reserves 178.6 2.3 6.6 (62.9) (3.0) (2.9) 19.0 (2.7) 135.0
-------- -------- --------- --------- -------- -------- -------- -------- --------- ------
224.7 2.3 6.6 (62.9) (3.0) (2.9) 19.0 (2.7) 181.1
Minority
Interests 3.7 3.7
-------- -------- --------- --------- --------- -------- ---------- -------- --------- -----
228.4 2.3 6.6 - (62.9) (3.0) (2.9) 19.0 (2.7) 184.8
-------- -------- --------- --------- --------- -------- ---------- -------- --------- -----
C. Reconciliation of UK GAAP to preliminary IFRS balance sheet at 27 March 2004
Development Software Employee Tangible
UK GAAP Goodwill assets assets Benefits Taxation Reclassifications Dividends Assets IFRS
£m £m £m £m £m £m £m £m £m £m
Non-current assets
Goodwill 28.2 0.8 (2.8) 26.2
Other
intangible
assets - 5.5 1.6 7.1
Property,
plant and
equipment 164.4 (1.6) (3.3) 159.5
Trade and
other
receivables 0.3 0.3
Deferred
taxation 33.1 20.8 (2.4) 0.6 52.1
Investments:
- Associates 13.2 13.2
- Other 0.2 0.2
-------- ------- --------- -------- ------- ------- ---------- -------- ------- -------
239.4 0.8 5.5 - 20.8 (2.4) (2.8) (2.7) 258.6
Current assets
Inventories 99.7 99.7
Trade and
other
receivables 116.3 116.3
Cash and cash
equivalents 85.5 85.5
-------- ------- --------- -------- ------- ------- ---------- -------- ------- ---------
301.5 301.5
-------- ------- --------- -------- ------- ------- ---------- -------- ------- ---------
Total
assets 540.9 0.8 5.5 20.8 (2.4) (2.8) (2.7) 560.1
Current liabilities
Borrowings (8.3) (8.3)
Trade and
other
payables (214.5) (2.1) 0.6 17.7 (198.3)
Provisions (50.8) (1.2) 24.0 (28.0)
-------- ------- --------- -------- ------- ------- ---------- -------- -------- ---------
(273.6) (3.3) 0.6 24.0 17.7 (234.6)
Non-current liabilities
Borrowings (36.1) (36.1)
Trade and
other (13.6) (13.6)
payables
Net
retirement
benefit
liability - (66.3) (24.0) (90.3)
-------- ------- --------- -------- ------- ------- ---------- -------- -------- --------
(49.7) (66.3) (24.0) (140.0)
-------- ------- --------- -------- ------- ------- ---------- -------- ------ ---------
Total
liabilities (323.3) (69.6) 0.6 - 17.7 (374.6)
-------- ------- --------- -------- ------- ------- ---------- -------- -------- --------
Net assets 217.6 0.8 5.5 - (48.8) (1.8) (2.8) 17.7 (2.7) 185.5
-------- ---------
Shareholders'
equity
Share capital 45.8 45.8
Reserves 168.3 0.8 5.5 (48.8) (1.8) (2.8) 17.4 (2.7) 135.9
-------- ------- --------- -------- -------- ------- ---------- -------- ------- ---------
214.1 0.8 5.5 (48.8) (1.8) (2.8) 17.4 (2.7) 181.7
Minority
Interests 3.5 0.3 3.8
-------- ------- --------- -------- -------- ------- ---------- -------- ------- ---------
217.6 0.8 5.5 - (48.8) (1.8) (2.8) 17.7 (2.7) 185.5
D. Reconciliation of UK GAAP to preliminary IFRS income statement for the six months ended 25 September 2004
Share-based Employee Development
UK GAAP payments benefits Goodwill assets Reclassifications Other IFRS
£m £m £m £m £m £m £m £m
Revenue 318.3 318.3
Operating
expenses (298.4) (0.6) 0.5 0.7 0.7 0.2 (296.9)
Exceptional
items (13.1) (13.1)
---------- --------- ---------- --------- ---------- ---------- --------- ----------
Operating
profit 6.8 (0.6) 0.5 0.7 0.7 0.2 8.3
Share of
associates 4.2 (1.3) 2.9
operating
profit
---------- --------- ---------- --------- ---------- ---------- --------- ----------
Profit on
ordinary 11.0 (0.6) 0.5 0.7 0.7 (1.3) 0.2 11.2
activities
before
interest
Net interest 1.0 0.8 1.8
---------- --------- ---------- --------- ---------- ---------- --------- ----------
Profit on
ordinary 12.0 (0.6) 1.3 0.7 0.7 (1.3) 0.2 13.0
activities
before
taxation
Taxation (6.3) 0.1 (0.4) (0.3) (0.2) 1.3 (5.8)
---------- --------- ---------- --------- ---------- ---------- --------- ----------
Profit on
ordinary 5.7 (0.5) 0.9 0.4 0.5 - 0.2 7.2
activities
after
taxation
Minority
interests (0.8) (0.8)
---------- --------- ---------- --------- ---------- ---------- --------- ----------
Profit
attributable
to 4.9 (0.5) 0.9 0.4 0.5 0.2 6.4
equity
shareholders ---------- ----------
-------------- ---------- --------- ---------- --------- ---------- ---------- --------- ----------
Profit before
tax,
exceptional
items and
goodwill
amortisation 25.8 (0.6) 1.3 - 0.7 (1.3) 0.2 26.1
-------------- ---------- --------- ---------- --------- ---------- ---------- --------- ----------
E Reconciliation of UK GAAP to prelimary IFRS balance sheet at 25 September 2004
-
Development Software Employee Tangible
UK GAAP Goodwill assets assets Benefits Taxation Reclassifications Dividends Assets Other IFRS
£m £m £m £m £m £m £m £m £m £m £m
Non-current assets
Goodwill 16.4 1.6 (2.9) 15.1
Other
intangible
assets - 6.2 1.6 7.8
Property,
plant and
equipment 160.2 (1.6) (3.3) 155.3
Trade and
other
receivables 0.5 0.5
Deferred
taxation 35.2 23.8 (2.9) 0.6 56.7
Investments:
- Associates 13.5 13.5
- Other 0.2 0.2
-------- -------- -------- ------- -------- -------- ------- ------- ------- ------ --
226.0 1.6 6.2 - 23.8 (2.9) (2.9) (2.7) 249.1
Current assets
Inventories 96.5 96.5
Trade and
other
receivables 95.5 95.5
Cash and cash
equivalents 101.9 101.9
-------- -------- ------- ------- -------- -------- -------- ------ ------- ------ -----
293.9 293.9
-------- -------- --------- ------- -------- -------- --------- ------ ------- ------ -----
Total 519.9 1.6 6.2 23.8 (2.9) (2.9) (2.7) 543.0
assets
Current liabilities
Borrowings (5.3) (5.3)
Trade and
other
payables (200.8) (1.8) 0.6 8.4 0.3 (193.3)
Provisions (50.7) (1.1) 24.5 (27.3)
-------- -------- ------- ------- -------- -------- -------- ----- ------ ----- -------
(256.8) (2.9) 0.6 24.5 8.4 0.3 (225.9)
Non-current liabilities
Borrowings (35.0) (35.0)
Trade and
other
payables (11.0) (11.0)
Net
retirement
benefit
liability - (76.5) (24.5) (101.0)
-------- ------ ------- ------- -------- -------- -------- ------ ----- ----- ------
(46.0) (76.5) (24.5) (147.0)
-------- ------ ------- ------- -------- -------- -------- ------ ----- ----- ------
Total
liabilities (302.8) (79.4) 0.6 - 8.4 0.3 (372.9)
-------- ------ ------- ------- -------- -------- -------- ------ ----- ----- ------
Net assets 217.1 1.6 6.2 - (55.6) (2.3) (2.9) 8.4 (2.7) 0.3 170.1
-------- ------ ------- ------- -------- -------- -------- ------ ----- ----- ------
Shareholders'
equity
Share 45.8 45.8
capital
Reserves 167.1 1.6 6.2 (55.6) (2.3) (2.9) 8.4 (2.7) 0.3 120.1
-------- ------- --------- ------- -------- -------- ---------- ------- ----- ------- ------
212.9 1.6 6.2 (55.6) (2.3) (2.9) 8.4 (2.7) 0.3 165.9
Minority
Interests 4.2 4.2
-------- ------- --------- ------- -------- -------- ---------- ------- -------- ---- -------
217.1 1.6 6.2 - (55.6) (2.3) (2.9) 8.4 (2.7) 0.3 170.1
-------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 1 hour ago Mattioli Woods
- 1 hour ago Morgan Advanced Materials
- 2 hours ago Capita
- 2 hours ago Judges Scientific
- 2 hours ago Me Group International