Change of presentation curren

RNS Number : 7157K

Elementis PLC

26 April 2010

 



ELEMENTIS PLC

CHANGE OF PRESENTATION CURRENCY

2009 COMPARATIVES RE-PRESENTED IN US DOLLARS

INTRODUCTION

Elementis announced at the time of its 2009 preliminary results announcement that the Board had decided to change the Group's reporting currency to US Dollars in 2010. Below, the key financial information for 2009 re-presented in US Dollars is set out for comparative purposes.

BACKGROUND

The majority of the Group's sales and earnings originate in US Dollars or US Dollar linked currencies and the change of presentation currency to the US Dollar will more closely align the Group's external financial reporting with the profile of the Group, as well as with current internal management reporting.

The change of the Group's presentation currency has been accounted for in accordance with IAS21, The Effects of Changes in Foreign Exchange Rates.

The following methodology has been used to re-present the 2009 results, originally reported in Sterling, into US Dollars:

a)   Income and expenses have been translated at the average exchange rate for the relevant period;

b)   Assets and liabilities have been translated at the closing exchange rate for each balance sheet date: and

c)   Equity items have been translated at historical exchange rates.

The relevant exchange rates used are as follows:

	6 months ended 30 June 2009	Year ended 31 December 2009
	£1=US$	£1=US$
Average rate	1.47	1.55
Closing rate	1.65	1.61

Further enquiries:

Elementis	020 7408 9300
Brian Taylorson, Finance Director

Financial Dynamics	020 7831 3113
Greg Quine

ELEMENTIS PLC

CHANGE OF PRESENTATION CURRENCY

2009 COMPARATIVES RE-PRESENTED IN US DOLLARS

Consolidated income statement

	6 months ended 30 June 2009				Year ended 31 December 2009
	Before exceptional	Exceptional items	After exceptional		Before exceptional	Exceptional items	After exceptional
	items		items		items		Items
	$million	$million	$million		$million	$million	$million
Revenue	253.1	-	253.1		563.7	-	563.7
Cost of sales	(173.6)	(2.9)	(176.5)		(385.3)	(2.9)	(388.2)
Gross profit	79.5	(2.9)	76.6		178.4	(2.9)	175.5
Distribution costs	(36.8)	-	(36.8)		(75.4)	-	(75.4)
Administrative expenses	(34.5)	(44.7)	(79.2)		(66.8)	(73.8)	(140.6)
Operating profit/(loss)	8.2	(47.6)	(39.4)		36.2	(76.7)	(40.5)
Finance income	0.4	-	0.4		1.2	-	1.2
Finance costs	(5.4)	-	(5.4)		(9.1)	-	(9.1)
Profit/(loss) before income tax	3.2	(47.6)	(44.4)		28.3	(76.7)	(48.4)
Tax	(0.4)	-	(0.4)		(9.3)	0.3	(9.0)
Profit/(loss) for the year	2.8	(47.6)	(44.8)		19.0	(76.4)	(57.4)
Attributable to:
Equity holders of the parent	2.8	(47.6)	(44.8)		19.0	(76.4)	(57.4)
Minority interests	-	-	-		-	-	-
	2.8	(47.6)	(44.8)		19.0	(76.4)	(57.4)
Earnings per share
Basic (cents)			(10.1)c				(12.9)c
Diluted (cents)			(10.1)c				(12.9)c
Basic before exceptionals (cents)			0.6c				4.3c
Diluted before exceptionals (cents)			0.6c				4.3c

ELEMENTIS PLC

CHANGE OF PRESENTATION CURRENCY

2009 COMPARATIVES RE-PRESENTED IN US DOLLARS

Consolidated balance sheet

	As at	As at
	30 June 2009	31 December 2009
	$million	$million
Non-current assets
Goodwill and other intangible assets	332.3	338.4
Property, plant and equipment	173.8	168.7
Interests in associates	0.1	0.1
Total non-current assets	506.2	507.2
Current assets
Inventories	139.9	105.0
Trade and other receivables	104.6	102.4
Cash and cash equivalents	23.6	28.8
Total current assets	268.1	236.2
Total assets	774.3	743.4
Current liabilities
Bank overdrafts and loans	(11.9)	(17.9)
Trade and other payables	(81.8)	(82.3)
Derivatives	(14.5)	(4.5)
Current tax liabilities	(3.0)	(6.5)
Provisions	(26.7)	(51.8)
Total current liabilities	(137.9)	(163.0)
Non-current liabilities
Loans and borrowings	(137.8)	(117.2)
Retirement benefit obligations	(117.5)	(111.7)
Deferred tax liabilities	(16.5)	(22.7)
Provisions	(45.7)	(39.0)
Government grants	(2.1)	(1.9)
Total non-current liabilities	(319.6)	(292.5)
Total liabilities	(457.5)	(455.5)
Net assets	316.8	287.9
Equity
Share capital	43.2	43.2
Share premium	11.0	11.0
Other reserves	110.0	116.0
Retained earnings	151.0	116.1
Total equity attributable to equity holders of the parent	315.2	286.3
Minority equity interests	1.6	1.6
Total equity	316.8	287.9

ELEMENTIS PLC

CHANGE OF PRESENTATION CURRENCY

2009 COMPARATIVES RE-PRESENTED IN US DOLLARS

Consolidated cash flow statement

		6 months ended 30 June 2009		Year ended 31 December 2009
			$million		$million
Operating activities:
Loss for the period			(44.8)		(57.4)
Adjustments for:
Finance income			(0.4)		(1.2)
Finance costs			5.4		9.1
Tax charge			0.4		9.0
Depreciation and amortisation			10.1		20.5
Decrease in provisions			(0.9)		(2.4)
Pension contributions net of current service cost			(2.8)		(10.7)
Share based payments			0.9		0.9
Exceptional items			47.6		76.7
Cash flow in respect of exceptional items			(8.1)		(22.8)
Operating cash flow before movement in working capital			7.4		21.7
Decrease in inventories			10.6		44.0
Decrease in trade and other receivables			5.1		7.3
Decrease in trade and other payables			(41.7)		(43.2)
Cash generated by operations			(18.6)		29.8
Income taxes paid			(4.1)		(6.2)
Interest paid			(1.8)		(4.0)
Net cash flow from operating activities			(24.5)		19.6
Investing activities:
Interest received			0.4		1.6
Purchase of property, plant and equipment			(7.6)		(13.5)
Purchase of business			-		(8.7)
Disposal of investment in associate			0.9		0.1
Acquisition of intangibles			-		(0.3)
Net cash flow from investing activities			(6.3)		(20.8)
Financing activities:
Dividends paid			(9.1)		(20.0)
Increase / (decrease) in borrowings			14.1		(1.4)
Net cash (used in)/ from financing activities			5.0		(21.4)
Net decrease in cash and cash equivalents			(25.8)		(22.6)
Cash and cash equivalents at 1 January			48.4		48.4
Foreign exchange on cash and cash equivalents			1.0		3.0
Cash and cash equivalents at end of the period			23.6		28.8

ELEMENTIS PLC

CHANGE OF PRESENTATION CURRENCY

2009 COMPARATIVES RE-PRESENTED IN US DOLLARS

 Operating segments

6 months ended 30 June 2009

	Speciality			Segment
	Products	Surfactants	Chromium	totals	Central costs	Total
	$million	$million	$million	$million	$million	$million
Revenue	139.1	36.3	77.7	253.1	-	253.1
Operating profit before exceptionals	11.9	0.1	7.2	19.2	(11.0)	8.2
Head office cost allocations	(3.1)	(0.1)	(2.9)	(6.1)	6.1	-
Exceptionals	-	-	(40.7)	(40.7)	(6.9)	(47.6)
Profit / (loss) before interest	8.8	0.0	(36.4)	(27.6)	(11.8)	(39.4)

Year ended 31 December 2009

	Speciality			Segment
	Products	Surfactants	Chromium	totals	Central costs	Total
	$million	$million	$million	$million	$million	$million
Revenue	301.6	76.3	185.8	563.7	-	563.7
Operating profit before exceptionals	35.0	0.5	22.3	57.8	(21.6)	36.2
Head office cost allocations	(6.5)	(0.4)	(6.0)	(12.9)	12.9	-
Exceptionals	-	-	(44.5)	(44.5)	(32.2)	(76.7)
Profit / (loss) before interest	28.5	0.1	(28.2)	0.4	(40.9)	(40.5)

Note:

The classification of exceptional items between cost of sales and administrative expenses in the June 09 consolidated income statement has been amended to be consistent with the presentation in the 2009 full year accounts.  This has no impact on the results before exceptional items or on reported operating profit in either the Interim Statement or in the 2009 full year results.

END

 

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