IFRS Statement
Galliford Try PLC
05 January 2006
Galliford Try plc
Information on adoption of International Financial Reporting Standards
Restatement of financial information for the year ended 30 June 2005
Galliford Try plc ('the Group') has adopted International Financial Reporting
Standards ('IFRS') with effect from 1 July 2005, in accordance with the European
Union Regulations.
The Group's first published accounts prepared under IFRS will be for the six
months ended 31 December 2005, which will include comparative results for the
six months ended 31 December 2004, restated from UK Generally Accepted
Accounting principles ('UK GAAP') to IFRS. The first Annual Report prepared
under IFRS will be for the year ended 30 June 2006, which will include
comparative results for the year ended 30 June 2005 restated from UK GAAP to
IFRS. The financial information presented under IFRS in this document does not
constitute the Company's financial statements and has not been audited or
reviewed.
This statement provides an analysis of the effect of the change from UK GAAP to
IFRS on the Group's financial statements including:
•A restated consolidated income statement for the year ended 30 June 2005.
•Consolidated statement of recognised income and expense for the year
ended 30 June 2005.
•Consolidated balance sheets as at 30 June 2004 and 2005.
•A consolidated statement of changes in equity for the year ended 30 June
2005.
•A summary of the basis of preparation of the IFRS information.
•A summary of the principal differences between IFRS and UK GAAP.
•Revised accounting policies under IFRS (Appendix 1).
•Reconciliation of the UK GAAP and IFRS information (Appendix 2).
The key points to note relating to the restatements are:
•The transition to IFRS has no impact on business operations, cash,
financing or the Group's dividend policy.
•The most significant effect of IFRS is in the accounting for pensions
which reduces stated net assets as a result of recognising the pension fund
deficit on the balance sheet.
Further enquiries to:
Frank Nelson, Finance Director Galliford Try plc 01895 855 226
Ann marie Wilkinson/Geoff Callow Bell Pottinger Financial 020 7861 3232
Consolidated income statement - restated in accordance with IFRS
For the year ended 30 June 2005 (Unaudited)
2005
£'000
Continuing operations
Revenue 718,494
Cost of sales (651,675)
--------
Gross profit 66,819
Administrative expenses (35,596)
Share of post tax profits from joint ventures (219)
--------
Operating profit 31,004
--------
Operating profit includes:
Profit on sale of fixed asset investments 1,562
--------
Interest receivable 664
Interest payable (4,411)
Income from other participating interest 100
--------
Profit on ordinary activities before tax 27,357
Taxation (8,312)
--------
Profit for the financial year 19,045
--------
Earnings per ordinary share
- basic 8.6p
- diluted 8.3p
Consolidated statement of recognised income and expense - restated in accordance
with IFRS for the year ended 30 June 2005 (Unaudited)
£'000
Profit for the financial year 19,045
Actuarial gains and losses in pension scheme (15,175)
Deferred tax on actuarial gains and losses in pension scheme 4,552
--------
Net losses not recognised in the income statement (10,623)
--------
Total recognised income for the year 8,422
--------
Consolidated balance sheet - restated in accordance with IFRS
At 30 June 2005 (Unaudited)
2005 2004
£'000 £'000
Non-current assets
Property, plant and equipment 11,630 11,936
Financial assets:
- Available for sale investments 468 608
Investments accounted for using equity method 2,111 2,290
Trade and other receivables 245 217
Deferred tax assets 15,187 11,311
------- -------
Total non-current assets 29,641 26,362
Current assets
Inventories 613 795
Developments 206,171 174,069
Trade and other receivables 100,204 106,402
Available for sale financial assets 3,412 -
Derivative financial assets 139 151
Cash and cash equivalents 2,007 2,570
------- -------
Total current assets 312,546 283,987
------- -------
Total assets 342,187 310,349
------- -------
Current liabilities
Financial liabilities:
- Borrowings (16,769) (13,648)
Trade and other payables (215,465) (204,300)
Current tax liabilities (3,549) (4,037)
------- -------
Total current liabilities (235,783) (221,985)
Non- current liabilities
Financial liabilities
- Borrowings (1,013) (1,047)
Retirement benefit obligations (46,168) (33,364)
Deferred tax liabilities (2,837) (3,186)
Other liabilities (2,682) (1,634)
------- -------
Total non-current liabilities (52,700) (39,231)
------- -------
Total liabilities (288,483) (261,216)
------- -------
------- -------
Net assets 53,704 49,133
------- -------
Equity
Share capital 11,340 11,239
Share premium 2,295 2,196
Merger reserves 4,687 4,687
Retained earnings 35,382 31,011
------- -------
Total equity 53,704 49,133
------- -------
Consolidated statement of changes in equity - restated in accordance with IFRS
For the year ended 30 June 2005 (Unaudited)
Share Share Merger Retained Total
capital premium reserve earnings
£'000 £'000 £'000 £'000 £'000
Balance at 1
July 2004 11,239 2,196 4,687 31,011 49,133
------- ------- ------- -------- --------
Actuarial
gains and
losses in
pension (15,175) (15,175)
scheme
Deferred tax
on actuarial
gains and
losses in
pension 4,552 4,552
scheme ------- ------- ------- -------- --------
Net expense
recognised
directly in
equity (10,623) (10,623)
Profit for
the
year 19,045 19,045
Dividends (3,875) (3,875)
Issue of
shares 101 99 200
Purchase of
own shares (450) (450)
Share based
payments 274 274
------- ------- ------- -------- --------
Balance at
30 June 2005 11,340 2,295 4,687 35,382 53,704
------- ------- ------- -------- --------
Basis of preparation
The restated financial statements have been prepared in accordance with IFRS for
illustrative purposes. IFRS 1 'First time adoption of IFRS' sets out the
procedures that companies should follow on adopting IFRS for the first time. The
balance sheet as at 30 June 2004 (the date of transition to IFRS), balance sheet
as at 30 June 2005 and the income statement have been prepared using accounting
policies which the directors expect to be applicable for the year to 30 June
2006. These accounting policies are set out in Appendix 1.
There are a number of optional exemptions to the retrospective application of
these accounting policies offered by IFRS 1. The Group intends to apply the
following key exemptions:
•IFRS 3 'Business Combinations'. The Group has elected not to apply IFRS 3
retrospectively to business combinations that took place before 1 April
2004.
•IAS 16 'Property, plant and equipment'. The Group has elected not to
revalue property, plant and equipment to fair value on transition and
therefore adopted the exemption to use a value that is not depreciated cost
as deemed cost on transition to IFRS.
•IFRS 2 'Share Based Payments' IFRS 2 has been adopted from the transition
date and is only being applied to equity instruments granted on or after 7
November 2002 which had not been vested on the effective date of the
standard. The Group has elected not to take up the option of full
retrospective application of the standard.
This restatement has been prepared in accordance with those IFRS and IFRIC
interpretations issued and effective or issued and early adopted as at the time
of preparing this restatement. The IFRS standards and IFRIC interpretations that
will be applicable at the 31 December 2005 half year and 30 June 2006 year end,
including those that will be applicable on an optional basis, are not known with
certainty at the time of preparing this restatement. These figures may therefore
require amendment to change the basis of accounting or presentation of certain
financial information, before their inclusion in the IFRS financial statements
for the year ending 30 June 2006, which will be the Group's first full set of
IFRS financial statements. Subject to no further changes from the IASB in the
interpretation of existing standards, the information presented is expected to
form the basis for comparatives when reporting the results for the half year
ended 31 December 2005, the year ending 30 June 2006, and for subsequent
reporting periods.
Principal differences between UK GAAP and IFRS
The principal differences which give rise to changes in the Group's reported
profit for the year ended 30 June 2005 and net assets at 30 June 2005 are as
follows:
•Employee Benefits
•Share based payments
•Deferred tax
•Dividend Recognition
•Inventories - deferred land payments
•Financial instrument - interest rate swap
•Discounting
In addition the disclosure of interests in the results of joint venture is
different under IFRS but this has no impact on net assets or net profit.
Employee Benefits
Under UK GAAP the Group's defined benefit schemes were accounted for in
accordance with SSAP 24 'Accounting for pension costs' and additional
information was provided under the FRS 17 transitional disclosures. The cost of
providing defined benefit pensions was charged in arriving at operating profit
with surpluses and deficits arising in the funds, as calculated by qualified
independent actuaries, being amortised over the remaining service lives of
participating employees.
The Group has adopted IAS 19 'Employee benefits' in preparing the opening
balance sheet, including the amendment to IAS 19 issued by the IASB on 16
December 2004 which allows all actuarial gains and losses to be charged or
credited to equity through the statement of recognised income and expense. Since
the Group has adopted this approach, all cumulative actuarial gains and losses
in relation to employee benefit schemes have been recognised as at 30 June 2004.
Under IAS 19 the cost of providing pension benefits (current service cost) for
defined benefit pension schemes is recognised in the income statement, together
with the interest cost arising on the projected obligations and the returns on
scheme assets.
The impact on the opening balance sheet is to recognise a net deficit of £23.4
million, being a gross deficit of £33.4 million offset by a deferred tax asset
of £10.0 million. In addition the prepayment of £1.1 million recognised under UK
GAAP has been reversed. At 30 June 2005 a net deficit of £32.3 million is
recognised comprising a gross deficit of £46.2 million and a deferred tax asset
of £13.9 million. An actuarial loss of £10.6 million (net of the deferred tax
asset) has been taken to reserves in the year ended 30 June 2005.
Additionally under IAS 19 holiday pay is specifically stated as being an
employee benefit, for which a fair value liability is required to be recognised.
The impact of recognising a liability for holiday pay is £0.6 million as at 30
June 2004 and £0.7 million as at 30 June 2005.
Share based payments
In accordance with IFRS 2 'Share based payments', the Group has elected to
follow the transitional arrangements and hence it has not been applied to share
options granted on or prior to 7 November 2002 that had not vested by 1 January
2005. IFRS 2 requires that share based payments should be valued at the fair
value of the shares at the date of grant. The fair value is expensed on a
straight line basis over the vesting period, based on the Group's estimate of
shares that will eventually vest. This affects the Group's save as you earn
schemes and the long term incentive plans. The impact of the application of IFRS
2 has been to reduce operating profit by £0.1 million for the year ended 30 June
2005.
Deferred Tax
IAS 12 'Accounting for income taxes' requires that full provision be made for
all timing differences between the carrying value of assets and the tax bases of
assets and liabilities. In addition deferred tax assets and liabilities must be
disclosed separately on the balance sheet.
The opening balance sheet include additional deferred tax assets of £10.0
million in relation to the pension fund deficit, £0.6 million relating to
deferred land payments, £0.7m relating to share based payments, a £0.3 million
reduction in deferred tax liability in relation to the reversal of the pension
prepayment and an increase in deferred tax liabilities of £0.6 million relating
to the revaluation of land and buildings.
Dividend recognition
IAS 10 'Events after the balance sheet date' requires that dividends approved
after the balance sheet date should not be recognised as a liability at that
balance sheet date since the liability did not represent a present obligation at
that date. The final dividend of £2.5 million in respect of the year ended 30
June 2004 has been reversed in the opening balance sheet at 30 June 2004 and the
final dividend of £3.3 million in respect of the year ended 30 June 2005 have
been reversed from the 30 June 2005 balance sheet.
Inventories - deferred land payments
Under UK GAAP deferred land payments (land creditors) are included in Creditors
at their gross value. Under IAS 2 'Inventories', deferred payments are held at
discounted present value, thereby recognising notional imputed interest on such
payments. As a result the land creditors are carried in the balance sheet at net
present value and the value of land held on the balance sheet in inventories is
reduced accordingly. The unwinding of the imputed interest on the land creditors
is charged to finance costs and the reduction in land values in inventories
results in a reduction in the cost of sales as the land is traded out. Over time
this does not affect net profit or net assets but gives rise to a timing
difference in the profit recognition and is likely to increase operating profit.
The effect on the opening balance sheet is to reduce the long term and current
land creditor by £1.4 million, reduce the inventories balance by £3.3 million,
recognise a deferred tax asset of £0.6 million and reduce opening reserves by
£1.3 million. For the year ended 30 June 2005 the adoption of IAS 2 resulted in
an increase in operating profit of £1.1 million and the inclusion of notional
interest of £1.2 million together with a related tax credit of £0.1 million. As
at 30 June 2005 the long term and current land creditor is reduced by £1.0
million, inventories by £3.1 million and recognise a deferred tax asset of £0.6
million.
Financial instruments - interest rate swap
The Group made use of an interest rate swap in order to reduce the risk of
exposure to changes in interest rates. This has the effect of fixing interest on
£20 million of borrowings at 5.2% for a period of 5 years from November 2001.
Under IAS 39 'Financial instruments recognition and measurement' this interest
rate swap is recognised and measured at fair value. Any change in fair value is
accounted for in the income statement. The recognition of the interest rate swap
has increased net assets at 30 June 2004 and 30 June 2005 by £0.2 million and
£0.1 million respectively and marginally reduced profit for the year ended 30
June 2005.
Discounting
In accordance with IAS 39 'Financial Instruments: recognition and measurement',
the Group has discounted its long term debtors and creditors. This has the
effect of reducing net assets at 30 June 2004 and 30 June 2005 by £nil and £0.1
million respectively and reducing profit by £0.1 million for the year ended 30
June 2005.
Reclassification of UK GAAP balances
When reclassifying the UK GAAP balance sheet in accordance with IFRS, long term
trade debtors and creditors relating to retention balances have been classified
as current assets on the basis that they are within the normal operating cycle
of the business.
Appendix 1
Statement of Accounting Policies
The principal accounting policies adopted in the preparation of these financial
statements are set out below. These policies have been consistently applied to
all the years presented, unless otherwise stated.
Basis of preparation
These financial statements have been prepared in accordance with International
Financial Reporting Standards and IFRIC interpretations and with those parts of
the Companies Act, 1985 applicable to companies reporting under IFRS. The
financial statements have been prepared under the historical cost convention as
modified by the revaluation of land and buildings, available for sale
investments, financial assets and liabilities held for trading. A summary of the
more important group accounting policies is set out below, together with an
explanation of where changes have been made to previous policies on the adoption
of new accounting standards in the year.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may differ
from those estimates.
Basis of consolidation
The Group financial statements incorporate the results of Galliford Try plc, its
subsidiary undertakings and the Group's share of the results of joint ventures
and associated undertakings. The results of subsidiary and joint venture
undertakings acquired or disposed of during the year are included from the
effective date of acquisition or up to the effective date of disposal.
In accordance with Section 230 of the Companies Act 1985 a separate profit and
loss account for Galliford Try plc has not been presented.
Joint ventures and associates
The Group's interest in joint ventures and associates are accounted for using
the equity method. Under this method the Group's share of profits less losses of
joint ventures and associates is included in the consolidated income statement
and its interest in their net assets is included in investments in the
consolidated balance sheet.
Jointly controlled operations and assets
The Group accounts for jointly controlled operations and assets by recognising
its share of profits and losses in the consolidated income statement. The Group
recognises its share of associated assets and liabilities in the consolidated
balance sheet.
Goodwill
Goodwill arising on consolidation represents the excess of the fair value of the
consideration given over the fair value of the assets acquired.
Goodwill is recognised as an asset and reviewed for impairment at least
annually. Any impairment is charged immediately to the income statement and is
not subsequently reversed.
Goodwill arising on acquisitions before the date of transition to IFRS has been
retained at the previous UK GAAP amounts following impairment tests. Goodwill
written off to reserves under UK GAAP prior to 1998 has not been restated.
Revenue and profit
Revenue comprises the value of construction executed during the year, legal
completions of housebuilding, contracted development sales and other invoiced
sales, and excludes value added tax. The results for the year include
adjustments for the outcome of contracts, including joint venture operations,
executed in both the current and preceding years. These adjustments arise from
claims by customers or third parties in respect of work carried out and claims
and variations on customers or third parties for variations on the original
contract. Provision for claims against the Group is made as soon as it is
believed that a liability will arise, but claims and variations made by the
Group are not recognised in the profit and loss account until the outcome is
reasonably certain.
Where it is foreseen that a loss will arise on a contract, full provision for
this loss is made in the current year.
Amounts recoverable on contracts are stated at cost plus attributable profit
less any foreseeable losses and payments on account and are included in debtors.
Bid costs and investments relating to PFI/PPP projects are not carried in the
balance sheet as recoverable until the Group has been appointed preferred bidder
or has received an indemnity in respect of the investment or costs, and regards
recoverability of the costs as virtually certain.
Tangible fixed assets and depreciation
The Group has adopted the transitional provisions of IFRS 1 to retain the book
value of freehold land and buildings as deemed cost. All other tangible fixed
assets are included at cost less accumulated depreciation. Fees incurred prior
to and during the construction of a fixed asset are capitalised until the time
the asset is brought into use.
Depreciation is calculated to write off the historical or deemed cost of each
asset to estimated residual value over its expected useful life. Freehold land
is not depreciated. The annual rates of depreciation are as follows:
Freehold buildings 2%
On cost or reducing balance:
Plant and machinery 15% to 33%
Fixtures and fittings 10% to 33%
In addition to systematic depreciation or amortisation, the book value of fixed
assets would be written down to estimated recoverable amount should any
impairment in the respective carrying values be identified.
Leases
Rentals under operating leases are charged to the profit and loss account on a
straight line basis over the lease term.
Assets held under finance leases and hire purchase contracts are included in
tangible fixed assets and depreciated over their anticipated useful lives or the
length of the lease whichever is shorter. The capital element of outstanding
obligations is included in creditors. The finance element of lease payments is
charged to the profit and loss account as interest payable.
Inventories and Developments
Inventories and Developments are valued at the lower of cost and net realisable
value. Work in progress is valued at the lower of cost, including attributable
overheads, and net realisable value. Land is included within development at its
fair value at the point of recognition.
Financial instruments
Financial assets and liabilities are recognised on the Group's balance sheet
when the Group becomes party to the contractual provision of the instrument.
Trade receivables
Trade receivables do not carry any interest and are stated at their nominal
value as reduced by appropriate allowances for estimated irrecoverable amounts.
Cash and cash equivalents
Cash and cash equivalents are carried in the balance sheet at nominal value. For
the purposes of the cash flow statement, cash and cash equivalents comprise cash
at bank and in hand, including bank deposits with original maturities of three
months or less. Bank overdrafts are also included as they are an integral part
of the Group's cash management.
Bank and other borrowings
Interest bearing bank loans and overdrafts and other loans are originally
recognised at fair value.
Such borrowings are subsequently stated at amortised cost with the difference
between initial fair value and redemption value recognised in the income
statement over the period to redemption.
Trade payables
Trade payables on normal terms are not interest bearing and are stated at their
nominal value. Trade payables on extended terms, particularly in respect of
land, are recorded at their fair value at the date of acquisition of the asset
to which they relate. The discount to nominal value is amortised over the period
of the credit term and charged to finance costs.
Derivative financial instruments
Derivatives financial instruments are initially accounted and measured at fair
value at the point the derivative contract is entered into and subsequently
measured at fair value. The gain or loss on re-measurement is taken to the
income statement.
Foreign currency
Transactions in foreign currencies are recorded at the rate ruling at the date
of the transaction. Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at the balance sheet
date. All differences are taken to the income statement.
Taxation
Current tax is based on the taxable profit for the year. Taxable profit differs
from profit before taxation recorded in the income statement because it excludes
items of income or expense that are taxable or deductible in other years or that
are never taxable or deductible. The liability for current tax is calculated
using rates that have been enacted, or substantially enacted, by the Balance
Sheet date.
Deferred tax is accounted for on an undiscounted basis at expected tax rates on
all differences arising from the inclusion of items of income or expenditure in
tax computations in periods different from those in which they are included in
the financial statements. A deferred tax asset is only recognised when it is
more likely than not that the asset will be recoverable in the foreseeable
future out of suitable taxable profits from which the underlying timing
differences can be deducted.
Deferred tax is charged or credited through the income statement, except when it
relates to items charged or credited through the Statement of Recognised Income
and Expense when it is charged or credited there.
Retirement benefit obligations
For defined contribution schemes operated by the Group, amounts payable are
charged to the income statement as they accrue.
For defined benefit schemes, the cost of providing benefits is calculated
annually by independent actuaries using the project unit method. The retirement
benefit obligation recognised in the balance sheet represents the excess of the
present value of scheme liabilities over the fair value of the schemes assets.
Actuarial gains and losses are recognised in full in the period in which they
occur in the Statement of Recognised Income and Expense.
In accordance with the transitional provisions of IFRS 1 cumulative actuarial
gains and losses at 30 June 2004 are presented within the opening retained
earnings reserve at that date.
Share based payments
In accordance with the transitional arrangements of IFRS1, IFRS 2 has been
applied to all grants of equity instruments issued after 7 November 2002 which
had not vested as at 1 January 2005.
The Group issues equity-settled share-based payments to certain employees. In
addition, employees are able to participate in Inland Revenue approved Save As
You Earn ('SAYE') schemes. The equity settled share-based payments and SAYE
schemes are measured at fair value at the date of grant. The fair value is
expensed on a straight line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest.
Equity Instruments
Equity instruments issued by the Company are recorded at the proceeds received
net of directly attributable incremental issues costs.
Consideration paid for shares in the Group held by the Galliford Try Employee
Share Trust are deducted from total shareholders equity. Where such shares
subsequently vest in the employees under the terms of the Group's share option
schemes or are sold, any consideration received is included in shareholders
equity.
APPENDIX 2
Consolidated Balance Sheet for the year ended 30 June 2004
Reconciliation of UK GAAP to IFRS
Effect of transition to IFRS
2004 IAS 19 IFRS2 IAS 12 IAS 10 IAS 2 IAS 39 IAS 39 2004
Share Interest
Previous Employee based Deferred Dividend rate Adjusted
£'000 GAAP benefits payments tax recognition Inventories swap Discounting Balance
Non-current
assets
Property,
plant and
equipment 11,936 11,936
Financial
assets
- Available
for sale
investments 608 608
Investments
accounted for
using equity
method 2,290 2,290
Trade and
other
receivables 369 (152) 217
Deferred tax
assets - 10,009 745 557 11,311
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total
non-current
assets 15,203 10,009 745 - - 557 - (152) 26,362
Current
assets
Inventories 795 795
Developments 177,392 (3,323) 174,069
Trade and
other
receivables 107,563 (1,051) (110) 106,402
Derivative
financial
assets - 151 151
Cash and cash
equivalents 2,570 2,570
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total current
assets 288,320 (1,051) - - - (3,323) 151 (110) 283,987
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total assets 303,523 8,958 745 - - (2,766) 151 (262) 310,349
Current
liabilities
Financial
liabilities
- Borrowings (13,648) (13,648)
Trade and
other payables (207,616) (621) 2,545 1,336 56 (204,300)
Current tax
liabilities (4,037) (4,037)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total current
liabilities (225,301) (621) - - 2,545 1,336 - 56 (221,985)
Non- current
liabilities
Financial
liabilities
- Borrowings (1,231) 184 (1,047)
Retirement
benefit
obligations - (33,364) (33,364)
Deferred tax
liabilities (2,928) 315 (573) (3,186)
Other
liabilities (1,776) 118 24 (1,634)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total
non-current
liabilities (5,935) (33,049) - (573) - 118 - 208 (39,231)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total
liabilities (231,236) (33,670) - (573) 2,545 1,454 - 264 (261,216)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Net assets 72,287 (24,712) 745 (573) 2,545 (1,312) 151 2 49,133
-------- ------- -------- -------- -------- -------- -------- -------- --------
Shareholders
equity
Share
capital 11,239 11,239
Share
premium 2,196 2,196
Merger
reserves 4,687 4,687
Retained
earnings 54,165 (24,712) 745 (573) 2,545 (1,312) 151 2 31,011
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total
shareholders'
equity 72,287 (24,712) 745 (573) 2,545 (1,312) 151 2 49,133
-------- ------- -------- -------- -------- -------- -------- -------- --------
Consolidated Balance Sheet for the year ended
30 June 2005
Reconciliation of UK GAAP to IFRS
Effect of transition to IFRS
2005 IAS 19 IFRS 2 IAS 12 IAS 10 IAS 2 IAS 39 IAS 39 2005
£'000 Previous Employee Share Deferred Dividend Inventories Interest Discounting Adjusted
GAAP benefits based tax recognition rate Balance
payments swap
Non-current
assets
Property,
plant and
equipment 11,630 11,630
Financial -
assets
- Available
for sale
investments 468 468
Investments
accounted for
using equity
method 2,111 2,111
Trade and
other
receivables 369 (124) 245
Deferred tax
assets - 13,850 709 585 43 15,187
------- ------- -------- -------- -------- -------- -------- -------- --------
Total
non-current
assets 14,578 13,850 709 - - 585 - (81) 29,641
Current
assets
Inventories 613 613
Developments 209,247 (3,076) 206,171
Trade and
other
receivables 102,859 (2,440) (215) 100,204
Available for
sale financial
assets 3,412 3,412
Derivative
financial
assets - 139 139
Cash and cash
equivalents 2,007 2,007
------- ------- -------- -------- -------- -------- -------- -------- --------
Total current
assets 318,138 (2,440) - - - (3,076) 139 (215) 312,546
------- ------- -------- -------- -------- -------- -------- -------- --------
Total assets 332,716 11,410 709 - - (2,491) 139 (296) 342,187
Current
liabilities
Financial
liabilities
- Borrowings (16,769) (16,769)
Trade and
other payables (219,134) (710) 3,342 990 47 (215,465)
Current tax
liabilities (3,549) (3,549)
------- ------- -------- -------- -------- -------- -------- -------- --------
Total current
liabilities (239,452) (710) - - 3,342 990 - 47 (235,783)
Non- current
liabilities
Financial
liabilities
- Borrowings (1,154) 141 (1,013)
Retirement
benefit
obligations - (46,168) (46,168)
Deferred tax
liabilities (3,059) 759 (537) (2,837)
Other
liabilities (2,815) 123 10 (2,682)
------- ------- -------- -------- -------- -------- -------- -------- --------
Total
non-current
liabilities (7,028) (45,409) - (537) - 123 - 151 (52,700)
------- ------- -------- -------- -------- -------- -------- -------- --------
Total
liabilities (246,480) (46,119) - (537) 3,342 1,113 - 198 (288,483)
------- ------- -------- -------- -------- -------- -------- -------- --------
Net assets 86,236 (34,709) 709 (537) 3,342 (1,378) 139 (98) 53,704
------- ------- -------- -------- -------- -------- -------- -------- --------
Shareholders
equity
Share
capital 11,340 11,340
Share
premium 2,295 2,295
Merger
reserves 4,687 4,687
Retained
earnings 67,914 (34,709) 709 (537) 3,342 (1,378) 139 (98) 35,382
------- ------- -------- -------- -------- -------- -------- -------- --------
Total
shareholders'
equity 86,236 (34,709) 709 (537) 3,342 (1,378) 139 (98) 53,704
------- ------- -------- -------- -------- -------- -------- -------- --------
Consolidated income statement for the year ended 30 June 2005
Reconciliation of UK GAAP to IFRS
Effect of transition to IFRS
IAS 19 IFRS2 IAS 12 IAS 2 IAS 39 IAS 39
£000 Previous Joint venture Employee Share Deferred Inventories Interest Discounting Adjusted
GAAP presentation benefits based tax rate swap balance
payments movement
Continuing
operations
Revenue 718,494 - - - - - - 718,494
Cost of
sales (654,464) - 1,717 1,072 (651,675)
------- -------- ------- ------- ------ -------- ------- -------- -------
Gross profit 64,030 - 1,717 - - 1,072 - 66,819
Administrative
expenses (35,601) - 5 (35,596)
Share of post
tax profit
from joint
ventures 26 (245) (219)
------- -------- ------- ------- ------ -------- ------- -------- -------
Group
operating
profit 28,455 (245) 1,717 5 - 1,072 - - 31,004
------- -------- ------- ------- ------ -------- ------- -------- -------
Operating
profit
includes:
Profit on sale
of fixed asset
investments 1,562 1,562
------- -------- ------- ------- ------ -------- ------- -------- -------
Interest
receivable 664 664
Interest
payable (2,267) (823) (1,165) (12) (144) (4,411)
Joint ventures (622) 622 -
------- -------- ------- ------- ------ -------- ------- -------- -------
(2,225) 622 (823) - - (1,165) (12) (144) (3,747)
------- -------- ------- ------- ------ -------- ------- -------- -------
Income from
other
participating
interest 100 100
------- -------- ------- ------- ------ -------- ------- -------- -------
Profit on
ordinary
activities
before tax 26,330 377 894 5 - (93) (12) (144) 27,357
Taxation (7,738) (377) (268) (36) 36 28 43 (8,312)
------- -------- ------- ------- ------ -------- ------- -------- -------
Profit for the
financial year 18,592 - 626 (31) 36 (65) (12) (101) 19,045
------- -------- ------- ------- ------ -------- ------- -------- -------
This information is provided by RNS
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