Brambles Industries PLC
23 June 2005
23 June 2005
Announcement of IFRS Briefing and
Adoption of US dollars as IFRS Presentation Currency
Brambles is today holding a teleconference for analysts and investors regarding
the anticipated impact of International Financial Reporting Standards (IFRS) on
Brambles' 30 June 2004 Balance Sheet and results for the year ending 30 June
The IFRS briefing will contain no new trading information. It will also be
available via a live audio webcast on the Brambles website (www.brambles.com) at
8.30am BST, 5.30pm AEST. An archived version will be available approximately
four hours after the end of the live event. A copy of the presentation material
to be used for the briefing will also be available on the Brambles website.
Brambles' profit after tax for the year ending 30 June 2005 is expected to be
approximately £26 million higher under IFRS than it would be under UK GAAP. The
difference is principally due to the exclusion of goodwill amortisation of £28
million after tax.
Net assets in the 30 June 2004 Opening Balance Sheet are expected to be
approximately £46 million higher under IFRS than under UK GAAP. This reflects
the net after tax effect of the following:
•the recognition of defined benefit pension plan deficits, £67 million
•the reversal of the UK GAAP dividend provision, £65 million higher (in
line with AGAAP);
•the alignment of goodwill with the AGAAP balance, £54 million higher; and
•the incorporation of other minor adjustments.
No impact on cash flows is anticipated.
IFRS will simplify the reporting of financial results for Brambles enabling a
single set of combined accounts to be produced for both Brambles Industries
Limited and Brambles Industries plc.
Under IFRS, Brambles has also decided to adopt US dollars as the presentation
currency for its combined financial statements for the year ending 30 June 2006
and beyond. Trading denominated in US dollars is the fastest growing area of
activity in Brambles.
The Group's first reported results under IFRS, in US dollars, will be for the
six months to 31 December 2005 and the first full year reported under IFRS will
be that ending 30 June 2006. Comparative financial results for the year ending
30 June 2005, under IFRS and in US dollars, will be issued by December 2005.
Any dividends for the six months to 31 December 2005 and for subsequent periods
will continue to be paid in Australian dollars and pounds sterling as is the
The information provided is Brambles' current best estimate of the consequences
of adopting IFRS. It has not been independently verified or audited and
therefore remains subject to change. Continued development and interpretation of
accounting standards by relevant authorities could affect the ultimate
differences between UK GAAP, AGAAP and IFRS and their impact on the Group's
results in future periods. No representation or warranty is made as to the
accuracy, completeness or reliability of the information.
Investor Sue Scholes, Head of Investor Relations +44 (0)20 7659 6012
Media Richard Mountain, Financial Dynamics +44 (0)20 7269 7291
Investor John Hobson, Head of Investor Relations +61 (0)2 9256 5216
+61 (0)414 239 188 (mobile)
Media Michael Sharp, Vice President, +61 (0)2 9256 5255
Brambles is globally headquartered in Australia
This information is provided by RNS
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