Interim Results
Halma PLC
06 December 2005
HALMA p.l.c.
INTERIM RESULTS FOR THE HALF YEAR TO 1 OCTOBER 2005
6 DECEMBER 2005
Halma, the leading safety, health and sensor technology group, today announces its interim results for the 26
weeks to 1 October 2005.
Highlights include:
• A 9% increase in revenue from continuing operations at £152.4m (2004: £140.1m), with adjusted profit from
continuing operations* up by 8% to £26.6m (2004: £24.6m)**
• Organic revenue and profit growth from continuing operations of 6%
• Recovery of Water and Resistors businesses going to plan
• Completion of two high-quality acquisitions, disposal of one non-core business and exit from unprofitable
Resistor Transit contracts
• Progressive dividend policy maintained with 5% growth underpinned by strong cash generation
* before taxation and amortisation of acquired intangible assets
** under International Financial Reporting Standards (IFRS), with restated comparatives
Commenting on the results, Andrew Williams, Chief Executive of Halma, said:
'In my first operating review in our Annual Report 2005, I stated that my top priority for the Group was to
generate organic growth. It is pleasing to report we have made a good start. During the first half we
delivered underlying organic revenue and profit growth of 6%. It is important to note that profit growth has
been driven by a healthy increase in revenues whilst strong product margins and effective control of our assets
and costs have been maintained.
'I continue to be impressed by what is being achieved and can see a greater sense of common purpose across the
Group. It is heartening to see actions starting to translate into improved financial results too. I believe the
progress made so far this year already has put the Group in a stronger position to deliver organic growth on a
more sustainable basis.
'I remain confident of the Group's prospects for the full year.'
For further information, please contact:
Halma p.l.c. +44 (0)1494 721111
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director
Hogarth Partnership Limited +44 (0)20 7357 9477
Rachel Hirst/Andrew Jaques
A copy of this announcement, together with other information about Halma, may be viewed on its website:
www.halma.com.
A copy of the Interim Report will be sent to shareholders on 6 December 2005 and will be available to the
general public on written request to the Company's registered office at: Misbourne Court, Rectory Way, Amersham,
Bucks HP7 0DE.
PHOTOGRAPHS
High resolution photos of Halma senior management, including Chief Executive Andrew Williams, and images
illustrating Halma business activities can be downloaded from its website: www.halma.com. Click on the 'News'
link, then 'Image Library'. Photo queries: David Waller +44 (0)20 8205 0038, e-mail: dwaller@halmapr.com
NOTE TO EDITORS
Halma develops and markets products used worldwide to protect life and improve the quality of life. The Group
comprises three business sectors:
• Infrastructure Sensors
• Health and Analysis
• Industrial Safety
The key characteristics of Halma's businesses are that they are based on advanced technology and offer strong
growth potential. Many Group businesses are a clear market leader in their specialist field and, in a number of
cases, are the dominant world supplier.
HALMA p.l.c.
Interim Results for the 26 weeks to 1 October 2005
Financial Highlights
Unaudited Unaudited
Change 26 weeks to 26 weeks to
1 October 2005 2 October 2004
(restated)
Continuing operations:
Revenue + 9% to £152.4 million £140.1 million
Adjusted profit before taxation(1) + 8% to £ 26.6 million £ 24.6 million
Statutory profit before taxation + 8% to £ 26.4 million £ 24.4 million
Adjusted earnings per share(2) + 6% to 4.94p 4.66p
Statutory earnings per share + 6% to 4.90p 4.63p
Dividend per share + 5% to 2.71p 2.58p
Return on sales(3) 17.5% 17.5%
Return on total invested capital(4) 12.5% 12.2%
Return on capital employed(4) 50.8% 46.9%
The comparative figures for the 26 weeks to 2 October 2004 and the 52 weeks to 2 April 2005 have been restated to
reflect the adoption of International Financial Reporting Standards. See Note 9 for details.
Pro-forma information:
(1) Adjusted to remove the amortisation of acquired intangible assets of £237,000 (2004: £175,000).
(2) Adjusted to remove the amortisation of acquired intangible assets. See Note 6 for details.
Return on sales is defined as adjusted(1) profit before taxation from continuing operations expressed as a
(3) percentage of revenue from continuing operations.
(4) Organic growth rates, return on total invested capital and return on capital employed are non-GAAP performance
measures used by management in measuring the returns achieved from the Group's asset base. See Note 8 for
details.
Financial Overview
For the first half of this financial year, adjusted profit before tax from continuing operations was £26.6 million
(2004: £24.6 million)*, up 8%. Revenue from continuing operations was up 9% at £152.4 million (2004: £140.1 million)*.
We achieved organic revenue and profit growth of 6%.*
Return on total invested capital increased to 12.5% (2004: 12.2%)*.
During the period we made two acquisitions: Netherlocks Safety Systems B.V. and Radio-Tech Limited, and disposed of one
non-core business, SEAC Limited.
The interim dividend will amount to 2.71 pence per share, an increase of 5%, and will be paid on 8 February 2006 to
shareholders on the register at 6 January 2006.
*see Financial Highlights
Chairman's Statement
Geoff Unwin, Chairman of Halma, said:
'Andrew Williams, our new CEO, has made a good start in his first complete half-year with the Group reporting record
profits and organic growth in both revenue and profit. He has re-focussed the business along three major divisions:
- Infrastructure Sensors
- Health and Analysis
- Industrial Safety.
'Our two acquisitions and one disposal support this focus.
'We are also seeing significant rejuvenation of management at all levels which is feeding through into an increased rate
of progress within the Group. Pleasing to see.
'The Board remains confident of the Group's prospects for the full year.'
Chief Executive's Review
Andrew Williams, Chief Executive of Halma, said:
Organic growth of 6% achieved
'In my first operating review in our Annual Report 2005, I stated that my top priority for the Group was to generate
organic growth. It is pleasing to report we have made a good start. During the first half, for our continuing
activities we delivered revenue growth of 9%* on profit growth of 8%*. Statutory profit from continuing operations was
£26.4 million (2004: £24.4 million). Underlying organic revenue and profit growth were both 6%*.
'There was strong growth in both our Industrial Safety and Health and Analysis sectors - each achieving double-digit
revenue increases. The former showed the benefits of our vigorous actions to achieve recovery in our Resistors business
and a strong performance from our Process Safety companies. The latter benefited from the planned recovery in Water and
continued progress in Optics and Fluid Technology. Significantly, profit growth has been driven by a healthy increase
in revenues whilst strong product margins and effective control of our assets and costs have been maintained.
'Infrastructure Sensors, incorporating our Fire, Elevator & Door Safety businesses continued to have a more challenging
time with revenues only a fraction up and profits down by 12%. The profit decline was mainly a result of our decision
to invest more in our sales and distribution internationally and make some organisational changes. We will continue to
make these investments in the second half since I believe they are essential if we are to deliver worthwhile organic
growth from this sector in the longer term.
*see Financial Highlights
Key strategic actions being implemented to drive sustainable growth
'The Group has responded to the growth challenge in impressive fashion. The overall energy level in the business has
been raised by several notches and directed into selected areas.
'Since the start of the year we have;
• Recovered sales and profit growth in our Water businesses as planned.
• Exited the unprofitable Resistor Transit contracts as planned and delivered sales and profit growth in
Resistors.
• Completed three acquisitions, one of them since the half year end, all of which strengthen the Group's
technology and products in key areas.
• Through the purchase of Texecom in November, at a purchase price of £26 million the second largest in the
Group's history, made a strategic move into the growing security sensor market.
• Disposed of a lower technology specialist business, SEAC.
• Merged two sets of businesses in the Industrial Safety and Infrastructure Sensors sectors.
• Established new manufacturing operations in Eastern Europe and North Africa.
• Established further sales offices in the US, Europe, China and India.
• Won new OEM contracts with major global companies in Health Analysis and Infrastructure Sensors.
• Formalised long-term debt facilities of up to £60 million.
'This list is not exhaustive but gives you an indication of the range and significance of our actions. I look forward
to reporting further progress in our Annual Report.
New reporting sectors will add clarity externally and increase opportunities
'You will note in the following pages that we are now reporting our results under three sector headings. This is not
merely a change to make the Group more readily understood, but one that will enable me, through the Divisional Chief
Executives and the Subsidiary Executives, to continually develop and implement more coherent market-driven growth
strategies. The new sectors group together businesses that have much in common, including market growth rates, market
drivers, operating characteristics, distribution channels, technologies and customers.
Improving prospects for sustained organic growth
'None of this would be possible without the hard work, commitment and skill of the people at all levels of our
organisation. As I travel around the Group I continue to be impressed by what is being achieved and can see a greater
sense of common purpose across the Group. It is heartening to see actions starting to translate into improved financial
results too.
'I believe the progress made so far this year already has put the Group in a stronger position to deliver organic growth
on a more sustainable basis.'
Interim Results for the 26 weeks to 1 October 2005
Consolidated Income Statement
£000
Unaudited Unaudited
26 weeks to 1 October 2005 26 weeks to 2 October 2004
Notes Before Amortisation Total Before Amortisation Total Unaudited
acquired of acquired of 52 weeks to
intangibles acquired intangibles acquired (restated)
amortisation intangibles amortisation intangibles 2 April
and goodwill and goodwill and goodwill and goodwill 2005
written off written written off written Total
off (restated) off (restated)
(restated)
Continuing operations
Revenue 1 152,436 - 152,436 140,149 - 140,149 291,302
Profit from 27,195 (237) 26,958 24,995 (175) 24,820 50,972
operations
Net finance expense (593) - (593) (433) - (433) (1,052)
Profit before 1 26,602 (237) 26,365 24,562 (175) 24,387 49,920
taxation
Taxation 3 (8,366) 83 (8,283) (7,418) 62 (7,356) (15,177)
Profit for the period 18,236 (154) 18,082 17,144 (113) 17,031 34,743
from continuing
operations
Discontinued operations
Net loss for the 5 (767) (1,308) (2,075) (36) - (36) (192)
period from
discontinued
operations
Profit for the period 17,469 (1,462) 16,007 17,108 (113) 16,995 34,551
Dividend (£000) 10,004 9,511 23,967
Dividend per share 2.71p 2.58p 6.50p
Earnings per share 6
From continuing operations
Basic 4.90p 4.63p 9.44p
Diluted 4.90p 4.63p 9.42p
From continuing and discontinued operations
Basic 4.34p 4.62p 9.38p
Diluted 4.34p 4.62p 9.37p
The comparative figures for the 26 weeks to 2 October 2004 and the 52 weeks to 2 April 2005 have been restated to
reflect the adoption of International Financial Reporting Standards. See Note 9 for details.
Statement of Recognised Income and Expense
£000
Unaudited Unaudited Unaudited
26 weeks to 26 weeks to 52 weeks to
1 October 2 October 2 April
2005 2004 2005
Exchange differences on translation of foreign operations 3,654 1,872 144
Actuarial (losses)/gains on defined benefit pension schemes (5,760) 254 (48)
Tax on items taken directly to equity 1,520 4 (4)
Net (loss)/income recognised directly in equity (586) 2,130 92
Profit for the period 16,007 16,995 34,551
Total recognised income and expense for the period 15,421 19,125 34,643
Reconciliation of Shareholders' Equity £000
Unaudited Unaudited Unaudited
26 weeks 26 weeks 52 weeks
to to to
1 October 2 October 2 April
2005 2004 2005
Shareholders' equity brought forward 173,259 159,027 159,027
Profit for the period 16,007 16,995 34,551
Dividends paid (14,462) (13,810) (23,320)
Exchange differences on translation of foreign operations 3,654 1,872 144
Actuarial (losses)/gains on defined benefit pension schemes (5,760) 254 (48)
Tax on items taken directly to equity 1,520 4 (4)
Net proceeds of shares issued 340 2,127 2,546
Movement in other reserves 253 127 363
Total movement in shareholders' equities 1,552 7,569 14,232
Shareholders' equity carried forward 174,811 166,596 173,259
Consolidated Balance Sheet £000
Unaudited Unaudited
Unaudited 2 October 2 April
2004 2005
1 October (restated) (restated)
2005
Non-current assets
Goodwill 104,689 102,539 99,276
Other intangible assets 5,878 4,990 4,817
Property, plant and equipment 50,368 47,281 47,784
Deferred tax assets 13,757 12,242 12,253
174,692 167,052 164,130
Current assets
Inventories 35,903 37,080 35,502
Trade and other receivables 68,210 68,305 69,816
Cash and cash equivalents 36,232 30,495 45,348
140,345 135,880 150,666
Total assets 315,037 302,932 314,796
Current liabilities
Borrowings 34,339 28,307 33,344
Trade and other payables 48,868 50,827 54,228
Tax liabilities 6,856 6,224 5,137
90,063 85,358 92,709
Net current assets 50,282 50,522 57,957
Non-current liabilities
Retirement benefit obligations 45,858 40,807 40,845
Trade and other payables 1,900 6,579 5,768
Deferred tax liabilities 2,405 3,592 2,215
50,163 50,978 48,828
Total liabilities 140,226 136,336 141,537
Net assets 174,811 166,596 173,259
Shareholders' equity
Called up share capital 36,910 36,848 36,880
Share premium account 10,421 9,724 10,111
Capital redemption reserve 185 185 185
Translation reserve 3,798 1,872 144
Other reserves 766 277 513
Retained earnings 122,731 117,690 125,426
Total shareholders' equity 174,811 166,596 173,259
The comparative figures as at 2 October 2004 and 2 April 2005 have been restated to reflect the adoption of
International Financial Reporting Standards. See Note 9 for details.
Consolidated Cash Flow Statement £000
Notes Unaudited Unaudited
Unaudited 26 weeks 52 weeks
to to
26 weeks 2 October 2 April
to 2004 2005
1 October (restated) (restated)
2005
7
Net cash inflow from operating activities 23,943 21,326 46,944
Cash flows from investing activities
Purchase of property, plant and equipment (6,110) (4,037) (9,419)
Proceeds from sale of property, plant and equipment 387 182 418
Development costs capitalised (1,115) (631) (1,122)
Interest received 642 594 1,086
Acquisition of businesses (12,363) (22,829) (23,536)
Disposal of businesses 396 (512) (1,681)
Net cash used in investing activities (18,163) (27,233) (34,254)
Financing activities
Dividends paid (14,462) (13,810) (23,320)
Proceeds from issue of share capital 340 2,127 2,546
Interest paid (612) (338) (889)
(Repayment)/drawdown of borrowings (240) (589) 5,764
Net cash used in financing activities (14,974) (12,610) (15,899)
Decrease in cash and cash equivalents 7 (9,194) (18,517) (3,209)
Cash and cash equivalents brought forward 45,348 48,482 48,482
Exchange adjustments 78 530 75
Cash and cash equivalents carried forward 36,232 30,495 45,348
The comparative figures for the 26 weeks to 2 October 2004 and the 52 weeks to 2 April 2005 have been restated to
reflect the adoption of International Financial Reporting Standards.
Notes on the Interim Report
1 Segmental Analysis £000
Sector analysis Unaudited
Unaudited 26 weeks to
26 weeks
to 2 October
1 October 2004
2005 (restated)
Revenue
Infrastructure Sensors 58,573 58,466
Health and Analysis 51,307 44,185
Industrial Safety 42,864 37,907
Inter-segmental sales (308) (409)
Revenue from continuing operations 152,436 140,149
Discontinued operations (note 5) 4,368 3,980
Group revenue 156,804 144,129
Profit before taxation
Infrastructure Sensors 10,370 11,723
Health and Analysis 10,222 7,009
Industrial Safety 6,120 5,707
Central companies 483 556
Profit from continuing operations 27,195 24,995
Amortisation of acquired intangibles (237) (175)
Net finance expense (593) (433)
Profit from continuing operations before taxation 26,365 24,387
Taxation (8,283) (7,356)
Profit for the period from continuing operations 18,082 17,031
Net loss from discontinued operations (note 5) (2,075) (36)
Profit for the period 16,007 16,995
Geographical analysis £000
By destination By origin
Unaudited Unaudited Unaudited Unaudited
26 weeks to 26 weeks 26 weeks 26 weeks
1 October to to to
2005 2 October 1 October 2 October
2004 2005 2004
(restated)
Revenue
United Kingdom 39,471 37,515 80,066 75,557
United States of America 50,041 42,291 55,024 47,478
Europe excluding UK 35,053 34,363 20,572 20,354
Far East and Australasia 16,026 15,941 7,772 7,204
Africa, Near and Middle East 5,705 4,977 - -
Other 6,140 5,062 1,994 1,665
Inter-segmental sales - - (12,992) (12,109)
Revenue from continuing operations 152,436 140,149 152,436 140,149
Discontinued operations (note 5) 4,368 3,980 4,368 3,980
Group revenue 156,804 144,129 156,804 144,129
Profit before taxation
United Kingdom 13,148 13,033
United States of America 9,354 7,088
Europe excluding UK 3,167 3,154
Far East and Australasia 1,067 1,408
Other 459 312
Profit from continuing operations 27,195 24,995
Amortisation of acquired intangibles (237) (175)
Net finance expense (593) (433)
Profit from continuing operations before taxation 26,365 24,387
Taxation (8,283) (7,356)
Profit for the period from continuing operations 18,082 17,031
Net loss from discontinued operations (note 5) (2,075) (36)
Profit for the period 16,007 16,995
2 Basis of preparation
In common with other European listed companies, Halma p.l.c. is required to adopt International Financial
Reporting Standards ('IFRS') for its consolidated financial statements with effect from 2 April 2005. This
interim report for the 26 weeks to 1 October 2005 is the first interim report under IFRS and the first Annual
Report under IFRS will be the Annual Report and Accounts for the 52 weeks to 1 April 2006. The interim report
is unaudited and has been prepared on the basis of the accounting policies set out in the accounts for the 52
weeks to 2 April 2005, amended where necessary to comply with IFRS. Details of these amendments are set out
in 'Adoption of International Financial Reporting Standards', a separate document released by the Company on 2
September 2005 and available on the Company's website (www.halma.com) or from the Company Secretary.
The accounting policies are drawn up in accordance with those International Accounting Standards ('IAS') and
IFRS issued by the International Accounting Standards Board ('IASB') that are expected to be adopted by the
European Union and available for use when the Annual Report and Accounts for the 52 weeks ended 1 April 2006
are prepared. However the accounting policies may need to be updated for interpretations issued by the
International Financial Reporting Interpretations Committee, new standards issued by the IASB, or continuing
evolution of interpretation of existing IAS and IFRS.
The figures shown for the 52 weeks to 2 April 2005 are based on the Group's statutory accounts for that
period, restated for IFRS. These statutory accounts, which were prepared under UK Generally Accepted
Accounting Principles ('UK GAAP'), received an unqualified audit report and have been filed with the Registrar
of Companies.
This interim report was approved by the Board of Directors on 6 December 2005.
3 Taxation
The total Group tax charge for the 26 weeks to 1 October 2005 of £8,168,000 (2004: £7,300,000) is made up of a
tax charge on profit from continuing operations of £8,283,000 (2004: £7,356,000) and a tax credit on losses
from discontinued operations of £(115,000) (2004: £(56,000)).
The tax charge for the 26 weeks to 1 October 2005 comprises a current taxation charge of £8,066,000 (2004:
£7,224,000) and a deferred tax charge of £102,000 (2004: £76,000). The tax charge is based on the estimated
effective tax rate for the year.
The tax charge includes £4,481,000 (2004: £3,889,000) in respect of overseas tax.
4 Acquisitions
In July 2005 the Group acquired Netherlocks Safety Systems B.V. for an initial cash consideration of €
3,000,000 plus additional consideration of up to €7,000,000, conditional on profit growth over the current and
following financial year. In August 2005 the Group acquired Radio-Tech Limited for an initial cash
consideration of £2,000,000 plus additional consideration of up to £2,500,000, based on earnings growth to
March 2007. Together these acquisitions contributed £1,078,000 to Group revenue and £340,000 to Group profit
from continuing operations and are reported in the Industrial Safety and Health and Analysis sectors
respectively.
5 Discontinued operations
During the period the Group exited from its Resistor Transit operations and in September 2005 sold SEAC Limited.
The loss on closure/disposal includes gross disposal proceeds of £1,300,000. Both of these operations were
previously included in the Industrial Safety sector. The results of these discontinued operations, which have
been included in the Consolidated Income Statement, were as follows:
26 weeks to 26 weeks to 52 weeks to
1 October 2 October 2 April
2005 2004 2005
Revenue 4,368 3,980 7,817
Expenses (4,196) (4,072) (8,186)
Profit/(loss) from operations 172 (92) (369)
Taxation (54) 56 177
Profit/(loss) from operations after taxation 118 (36) (192)
Loss on closure/disposal of operations (1,054) - -
Associated goodwill (1,308) - -
Taxation 169 - -
Net loss from discontinued operations (2,075) (36) (192)
6 Earnings per share
Earnings per share are calculated using the weighted average of 368,917,910 (2004: 367,669,622) shares in issue
during the period. Earnings for continuing and discontinued operations were £18,082,000 and £(2,075,000)
respectively (2004: £17,031,000 and £(36,000)). Diluted earnings per share are calculated using 369,212,399
shares (2004: 368,223,286) which includes dilutive potential ordinary shares of 294,489 (2004: 553,664). The
Company's dilutive potential ordinary shares are calculated from those exercisable share options where the
exercise price is less than the average price of the Company's ordinary shares during the period.
Earnings from continuing operations per ordinary share before the amortisation of acquired intangibles represents
a more consistent measure of underlying performance. A reconciliation of earnings and the effect on per share
figures is presented below:
Per ordinary share
26 weeks to 26 weeks to 26 weeks to 26 weeks to
1 October 2 October 1 October 2 October
2005 2004 2005 2004
£000 £000 p p
Profit for the period from continuing operations 18,082 17,031 4.90 4.63
Add back: amortisation of acquired intangibles (after tax) 154 113 0.04 0.03
Adjusted earnings 18,236 17,144 4.94 4.66
7 Notes on cash flow statement £000
26 weeks 26 weeks 52 weeks to
to to
1 October 2 October 2 April
2005 2004 2005
Reconciliation of profit from operations to
net cash inflow from operating activities
Profit from continuing operations 26,958 24,820 50,972
Profit/(loss) from discontinued operations (before taxation) 172 (92) (369)
Depreciation and amortisation 5,067 4,474 9,316
Loss/(profit) on sale of tangible fixed assets 89 70 (21)
Operating cashflows before movement in working capital 32,286 29,272 59,898
Decrease/(increase) in inventories 7 (1,907) (1,000)
Decrease in receivables 2,403 3,843 780
(Decrease)/increase in payables (4,136) (3,799) 1,760
Cash generated from operations 30,560 27,409 61,438
Taxation paid (6,617) (6,083) (14,494)
Net cash inflow from operating activities 23,943 21,326 46,944
Reconciliation of net cash flow to
movement in net cash
Decrease in cash and cash equivalents (9,194) (18,517) (3,209)
Loans acquired - (1,125) (1,125)
Cash outflow/(inflow) from borrowings 240 589 (5,764)
Exchange adjustments (1,157) (307) 554
(10,111) (19,360) (9,544)
Net cash brought forward 12,004 21,548 21,548
Net cash carried forward 1,893 2,188 12,004
8 Non-GAAP measures £000
(i) Organic growth
Organic growth measures the change in the revenue and profits from continuing Group operations. The effect of
acquisitions made during the current or prior financial period has been equalised by subtracting from the
current year figures a pro-rated contribution based on their revenue and profits at the date of acquisition.
(ii) Return on capital employed Unaudited Unaudited
1 October 2 October
2005 2004
Profit from continuing operations
before amortisation of acquired intangibles 27,195 24,995
Loss from discontinued operations in prior period - (92)
Operating return 27,195 24,903
Capitalised software costs within intangible assets 1,350 1,044
Capitalised development costs within intangible assets 2,817 2,872
Property, plant and equipment 50,368 47,281
Inventories 35,903 37,080
Trade and other receivables 68,210 68,305
Trade and other payables (48,868) (50,827)
Tax liabilities (6,856) (6,224)
Non-current trade and other payables (1,900) (6,579)
Add back: accrued deferred purchase consideration 5,968 13,335
Capital employed 106,992 106,287
Return on capital employed (annualised) 50.8% 46.9%
(iii) Return on total invested capital
Profit for the period from continuing operations
before amortisation of acquired intangibles after taxation 18,236 17,144
Loss from discontinued operations in prior period after - (36)
taxation
Return 18,236 17,108
Total shareholders' equity 174,811 166,596
Add back: retirement benefit obligations 45,858 40,807
Less: associated deferred tax assets (13,757) (12,242)
Cumulative amortisation of acquired intangibles 598 175
Goodwill on disposals 1,308 -
Goodwill amortised prior to 3 April 2004 13,177 13,177
Goodwill taken to reserves prior to 28 March 1998 70,931 70,931
Total invested capital 292,926 279,444
Return on total invested capital (annualised) 12.5% 12.2%
9 Transition to IFRS
The following reconciliations of equity at 3 April 2004 (the date of
transition to IFRS), 2 October 2004 and 2 April 2005 and of the income
statement for the 26 weeks ended 2 October 2004 and the 52 weeks ended 2 April
2005 complement the summary reconciliations given in the document 'Adoption of
International Financial Reporting Standards', released by the Company on 2
September 2005, which includes the significant accounting policies and further
explanations on the adjustments.
Reconciliation of profit
Defined Deferred
As benefit Share-based Development Reverse Amortisation tax on As
reported pension payments costs goodwill of acquired goodwill Other restated
under UK schemes capitalised amortisation intangibles in restatements under
GAAP reserves IFRS
26 weeks to 2 October
2004
Revenue from continuing 140,149 140,149
operations
Revenue from 3,980 3,980
discontinued operations
Group revenue 144,129 - - - - - - - 144,129
Profit from continuing 21,928 383 (72) 194 2,667 (175) (105) 24,820
operations
Loss from discontinued (92) (92)
operations
Total profit from 21,836 383 (72) 194 2,667 (175) - (105) 24,728
operations
Net finance income/ 115 (548) (433)
(charges)
Profit before taxation 21,951 (165) (72) 194 2,667 (175) - (105) 24,295
Taxation (7,570) 195 75 (7,300)
Profit for the period 14,381 (165) (72) 194 2,667 (175) 195 (30) 16,995
52 weeks to 2 April 2005
Revenue from continuing 291,302 291,302
operations
Revenue from 7,817 7,817
discontinued operations
Group revenue 299,119 - - - - - - - 299,119
Profit from continuing 45,222 767 (192) 68 5,491 (361) (23) 50,972
operations
Loss from discontinued (369) (369)
operations
Total profit from 44,853 767 (192) 68 5,491 (361) - (23) 50,603
operations
Net finance income/ 45 (1,097) (1,052)
(charges)
Profit before taxation 44,898 (330) (192) 68 5,491 (361) - (23) 49,551
Taxation (15,540) 344 196 (15,000)
Profit for the period 29,358 (330) (192) 68 5,491 (361) 344 173 34,551
Reconciliation of equity
Defined
As benefit Share-based Release Development Holiday Acquired
reported pension payments dividend costs pay intangible Other As
under UK schemes accrual capitalised accrual assets Goodwill restatements
restated
GAAP under
IFRS
As at 3 April
2004
Goodwill 71,425 71,425
Other - 2,653 969 3,622
intangible
assets
Property, plant 47,139 (969) 46,170
and equipment
Deferred tax - 12,231 12,231
assets
Total 118,564 12,231 - - 2,653 - - - - 133,448
non-current
assets
Inventories 31,208 31,208
Trade and other 67,080 604 67,684
receivables
Cash and cash 48,482 48,482
equivalents
Total current 146,770 - 604 - - - - - - 147,374
assets
Total assets 265,334 12,231 604 - 2,653 - - - - 280,822
Borrowings 26,934 26,934
Trade and other 45,648 (69) 806 46,385
payables
Tax liabilities 5,563 5,563
Dividends 13,762 (13,762) -
payable
Retirement - 40,769 40,769
benefit
obligations
Deferred tax 6,067 156 816 (259) (4,636) 2,144
liabilities
Total 97,974 40,700 156 (13,762) 816 547 - (4,636) - 121,795
liabilities
Net assets 167,360 (28,469) 448 13,762 1,837 (547) - 4,636 - 159,027
Called up share 36,677 36,677
capital
Share premium 7,768 7,768
account
Capital 185 185
redemption
reserve
Translation - -
reserve
Other reserves - 150 150
Retained 122,730 (28,469) 298 13,762 1,837 (547) 4,636 114,247
earnings
Total equity 167,360 (28,469) 448 13,762 1,837 (547) - 4,636 - 159,027
As at 2 October
2004
Goodwill 98,356 (899) 5,082 102,539
Other - 2,872 1,074 1,044 4,990
intangible
assets
Property, plant 48,325 (1,044) 47,281
and equipment
Deferred tax - 12,242 12,242
assets
Total 146,681 12,242 - - 2,872 - 175 5,082 - 167,052
non-current
assets
Inventories 37,080 37,080
Trade and other 67,652 653 68,305
receivables
Cash and cash 30,495 30,495
equivalents
Total current 135,227 - 653 - - - - - - 135,880
assets
Total assets 281,908 12,242 653 - 2,872 - 175 5,082 - 302,932
Borrowings 28,307 28,307
Trade and other 56,681 (196) 921 57,406
payables
Tax liabilities 6,224 6,224
Dividends 9,511 (9,511) -
payable
Retirement - 40,807 40,807
benefit
obligations
Deferred tax 7,202 121 889 (299) 292 (4,613) 3,592
liabilities
Total 107,925 40,611 121 (9,511) 889 622 292 (4,613) - 136,336
liabilities
Net assets 173,983 (28,369) 532 9,511 1,983 (622) (117) 9,695 - 166,596
Called up share 36,848 36,848
capital
Share premium 9,724 9,724
account
Capital 185 185
redemption
reserve
Translation - 2,198 (326) 1,872
reserve
Other reserves - 277 277
Retained 127,226 (28,369) 255 9,511 1,983 (622) (117) 7,497 326 117,690
earnings
Total equity 173,983 (28,369) 532 9,511 1,983 (622) (117) 9,695 - 166,596
As at 2 April
2005
Goodwill 94,848 (990) 5,418 99,276
Other - 2,739 966 1,112 4,817
intangible
assets
Property, plant 48,896 (1,112) 47,784
and equipment
Deferred tax - 12,253 12,253
assets
Total 143,744 12,253 - - 2,739 - (24) 5,418 - 164,130
non-current
assets
Inventories 35,502 35,502
Trade and other 69,062 754 69,816
receivables
Cash and cash 45,348 45,348
equivalents
Total current 149,912 - 754 - - - - - - 150,666
assets
Total assets 293,656 12,253 754 - 2,739 - (24) 5,418 - 314,796
Borrowings 33,344 33,344
Trade and other 58,934 233 829 59,996
payables
Tax liabilities 5,137 5,137
Dividends 14,457 (14,457) -
payable
Retirement - 40,845 40,845
benefit
obligations
Deferred tax 6,186 63 854 (266) 260 (4,882) 2,215
liabilities
Total 118,058 41,078 63 (14,457) 854 563 260 (4,882) - 141,537
liabilities
Net assets 175,598 (28,825) 691 14,457 1,885 (563) (284) 10,300 - 173,259
Called up share 36,880 36,880
capital
Share premium 10,111 10,111
account
Capital 185 185
redemption
reserve
Translation - (171) 315 144
reserve
Other reserves - 513 513
Retained 128,422 (28,825) 178 14,457 1,885 (563) (284) 10,471 (315) 125,426
earnings
Total equity 175,598 (28,825) 691 14,457 1,885 (563) (284) 10,300 - 173,259
This information is provided by RNS
The company news service from the London Stock Exchange
Tuesday, 4th June 2024
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