Adoption of IFRS

RNS Number : 9758W

Hardide PLC

18 June 2008

 



Press Release

18 June 2008

Hardide plc

('Hardide' or 'the Group')

Adoption of IFRS

Set out below are reconciliations to show the effect on the reported figures of the Group moving from UK Generally Accepted Accounting Practice (UK GAAP) to International Financial Reporting Standards (IFRS). The reconciliations of equity as at 1 October 2006 (the date of transition to IFRS) and as at 30 September 2007 (the date of our last UK GAAP financial statements), and the reconciliation of profit for that year, as required by IFRS1 are shown below. In addition, a reconciliation of the effect of IFRS on the profit for the six months to March 2007 and on the equity as at 31 March 2007 is shown in order to allow a comparison of the effects for each period.

The adoption of IFRS represents an accounting change only and does not affect the underlying operation of the business or Hardide's cash flows.

First time adoption of IFRS

The Group's transition date to IFRS was 1 October 2006, which is the beginning of the comparative period for the year ended 30 September 2007. The Group has applied IFRS1 for the first time adoption of IFRS and has elected to use the following exemptions:

	Business combinations - business combinations that took place prior to 1 October 2006 have not been restated;
	Share-based payment - the Group has applied the requirements of IFRS2 Share-based payments to all grants of equity instruments after 7 November 2002 that were unvested as of 1 October 2006.

The key impacts of implementing IFRS with respect to the Group's consolidated accounts are:

Goodwill amortisation: In accordance with IFRS 3, goodwill is no longer amortised but is subject to annual impairment tests. Goodwill amortised from 1 October 2006 is reversed and goodwill on earlier acquisitions is fixed at the 1 October 2006 value.

Negative goodwill:  The balance of negative goodwill is written off at the opening balance sheet date.

Property, plant and equipment: In accordance with IAS 16, purchased software is classified as an intangible asset.

For further information:

Hardide plc
Robert Goddard / Peter Davenport / Jackie Robinson	Tel: [phone]
	www.hardide.com
Seymour Pierce Limited
Nicola Marrin / Richard Feigen	Tel: [phone]
[e-mail] /  [e-mail]	www.seymourpierce.com
Media enquiries:
Abchurch
Chris Lane / George Parker	Tel: [phone]
[e-mail]	www.abchurch-group.com

Reconciliation of equity at 1 October 2006 (date of transition to IFRS)
				Effect of transition
		UK GAAP		to IFRS		IFRS
		£ '000		£ '000		£ '000
Assets
Non-current assets
Investments		-		-		-
Goodwill		(10)		81		71
Intangible assets		-		9		9
Property, plant & equipment		1,753		(9)		1,744
Total non-current assets		1,743		81		1,824
Current assets
Inventories		102		-		102
Trade and other receivables		340		-		340
Other current financial assets		248		-		248
Cash and cash equivalents		1,803		-		1,803
Total current assets		2,493		-		2,493
Total assets		4,236		81		4,317
Liabilities
Current liabilities
Trade and other payables		485		-		485
Financial liabilities		98		-		98
Provisions		-		-		-
Total current liabilities		584		-		584
Net current assets		1,909		-		1,909
Non-current liabilities
Financial liabilities		216		-		216
Total non-current liabilities		216		-		216
Total liabilities		800		-		800
Net assets		3,436		81		3,517
Equity
Share capital		1,467		-		1,467
Share premium		3,345		-		3,345
Retained earnings		(1,387)		81		(1,306)
Share-based payments reserve		-		-		-
Translation reserve		11		-		11
Total equity		3,436		81		3,517
Reconciliation of equity at 31 March 2007 (date of last UK GAAP interim statements)
				Effect of transition
		UK GAAP		to IFRS		IFRS
		£ '000		£ '000		£ '000
Assets
Non-current assets
Investments		-		-		-
Goodwill		10		60		69
Intangible assets		-		8		8
Property, plant & equipment		1,908		(8)		1,900
Total non-current assets		1,918		60		1,977
Current assets
Inventories		125		-		125
Trade and other receivables		426		-		426
Other current financial assets		164		-		164
Cash and cash equivalents		700		-		700
Total current assets		1,416		-		1,416
Total assets		3,333		60		3,393
Liabilities
Current liabilities
Trade and other payables		449		-		449
Financial liabilities		114		-		114
Provisions		-		-		-
Total current liabilities		563		-		563
Net current assets		853		-		853
Non-current liabilities
Financial liabilities		164		-		164
Total non-current liabilities		164		-		164
Total liabilities		727		-		727
Net assets		2,606		60		2,666
Equity
Share capital		1,467		-		1,467
Share premium		3,345		-		3,345
Retained earnings		(2,232)		60		(2,172)
Share-based payments reserve		22		-		22
Translation reserve		4		-		4
Total equity		2,606		60		2,666
Reconciliation of equity at 30 September 2007 (date of last UK GAAP financial statements)
				Effect of transition
		UK GAAP		to IFRS		IFRS
		£ '000		£ '000		£ '000
Assets
Non-current assets
Investments		-		-		-
Goodwill		24		46		69
Intangible assets		-		7		7
Property, plant & equipment		1,668		(7)		1,661
Total non-current assets		1,692		46		1,737
Current assets
Inventories		99		-		99
Trade and other receivables		648		-		648
Other current financial assets		147		-		147
Cash and cash equivalents		1,135		-		1,135
Total current assets		2,029		-		2,029
Total assets		3,721		46		3,767
Liabilities
Current liabilities
Trade and other payables		512		-		512
Financial liabilities		145		-		145
Provisions		-		-		-
Total current liabilities		657		-		657
Net current assets		1,372		-		1,372
Non-current liabilities
Financial liabilities		893		-		893
Total non-current liabilities		893		-		893
Total liabilities		1,550		-		1,550
Net assets		2,171		46		2,217
Equity
Share capital		1,467		-		1,467
Share premium		3,345		-		3,345
Retained earnings		(3,122)		46		(3,076)
Share-based payments reserve		450		-		450
Translation reserve		31		-		31
Total equity		2,171		46		2,217

Reconciliation of loss for six months ended 31 March 2007
				Effect of transition
		UK GAAP		to IFRS		IFRS
		£ '000		£ '000		£ '000
Revenue		1,105		-		1,105
Cost of Sales		(581)		-		(581)
Gross Profit		525		-		525
Administrative expenses		(1,229)		-		(1,229)
Depreciation and amortisation		(195)		(22)		(217)
Operating profit		(899)		(22)		(921)
Interest income		24		-		24
Finance costs		(12)		-		(12)
Profit on ordinary activities before tax		(887)		(22)		(909)
Tax		-		-		-
Profit for the period		(887)		(22)		(909)
Reconciliation of loss for the year ended 30 September 2007
				Effect of transition
		UK GAAP		to IFRS		IFRS
		£ '000		£ '000		£ '000
Revenue		2,470		-		2,470
Cost of Sales		(1,180)		-		(1,180)
Gross Profit		1,290		-		1,290
Administrative expenses		(2,676)		-		(2,676)
Depreciation		(439)		(36)		(475)
Operating profit		(1,825)		(36)		(1,861)
Interest income		31		-		31
Finance costs		(25)		-		(25)
Profit on ordinary activities before tax		(1,819)		(36)		(1,855)
Tax		24		-		24
Profit for the period		(1,795)		(36)		(1,831)

 

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