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Booker Group PLC (BOK)

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Tuesday 30 October, 2007

Booker Group PLC

IFRS Restatement

Booker Group PLC
30 October 2007


                                Booker Group plc

                Restatement of financial information under IFRS


This announcement contains the restatement of certain Booker Group plc ('the
Group') financial information, previously issued under UK GAAP, to International
Financial Reporting Standards.

On 4 June 2007 the parent company of the Group, then named Blueheath Holdings
plc, became the legal parent company of Giant Topco Limited (parent company of
Booker Limited) in a share-for-share transaction. Due to the relative values of
the companies, the former Giant Topco Limited shareholders became the majority
shareholders with 90.36% of the enlarged share capital. Following the
transaction the Company's continuing operations and executive management were
predominantly those of Giant Topco Limited. Accordingly, the substance of the
combination was that Giant Topco Limited acquired Blueheath Holdings plc in a
reverse acquisition. As part of the business combination Blueheath Holdings plc
changed its name to Booker Group plc and changed its accounting reference date
to March.

As a consequence of applying reverse acquisition accounting, the balance sheet
of the Group at 31 March 2006, the results for the 24 weeks ended 15 September
2006 and for the 52 weeks ended 30 March 2007 are those of Giant Topco Limited.
The consolidated financial statements for Giant Topco Limited at 31 March 2006
and 31 March 2007, as reported under UK GAAP, have been filed with the registrar
of companies and the interim results for the 24 weeks ended 15 September 2006,
also reported under UK GAAP, were included in the Admission Document dated 9 May
2007.

The AIM Rules require that the next annual consolidated accounts of the Group
for the period ending 28 March 2008 be prepared in accordance with International
Financial Reporting Standards ('IFRS') as adopted by the European Union
('adopted IFRSs').

The purpose of this document is to explain how the financial performance and the
financial position of the Group at 31 March 2006, for the 24 weeks ended 15
September 2006 and for 52 weeks ended 30 March 2007 presented under IFRS differs
to that reported under UK GAAP.

These restated financial statements will be the comparators for Booker Group
plc's interim statement for the 24 weeks ended 24 September 2007 and for the
annual consolidated financial statements for the 52 weeks ended 28 March 2008.

The preliminary IFRS financial information set out on pages 4 to 6 does not
constitute the company's statutory accounts for the year ended 30 March 2007.
Those accounts, which were prepared under UK GAAP, have been reported on by the
company's auditors and delivered to the registrar of companies. The report of
the auditors was (i) unqualified, (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis without
qualifying their report and (iii) did not contain a statement under section 237
(2) or (3) of the Companies Act 1985.

For further information contact:

Tulchan Communications (PR Adviser to Booker Group plc)

020 7353 4200

Susanna Voyle

Celia Gordon Shute


Investec Bank UK (Nominated Adviser to Booker Group plc)

020 7597 5970

Keith Anderson










Contents

Page

 3   Summary of the Effects of IFRS
     Restated IFRS Consolidated Financial Statements
 4   Consolidated Income Statement
 4   Consolidated Statement of Recognised Income and Expense
 5   Consolidated Balance Sheet
 6   Consolidated Cash Flow Statement
 7   Basis of Preparation
 7   Review of changes arising from adoption of IFRS
8-11 IFRS Accounting Policies
 12  Reconciliation of Profit - For the 52 weeks ended 30 March 2007
 12  Reconciliation of Statement of Recognised Income and Expense - For the 52
     weeks ended 30 March 2007
 13  Reconciliation of Equity - As at 30 March 2007
 14  Reconciliation of Profit - For the 24 weeks ended 15 September 2006
 14  Reconciliation of Statement of Recognised Income and Expense - For the 24
     weeks ended 15 September 2006
 15  Reconciliation of Equity - As at 15 September 2006
 16  Reconciliation of Equity - As at 31 March 2006 (Opening balance sheet for
     IFRS)







Summary of the Effects of IFRS

a)                                     Impact on profit
                                         52 weeks ended     24 weeks ended
                                          30 March 2007  15 September 2006
                                                     £m                 £m

(Loss)/profit for the period - UK GAAP            (9.5)                1.5

Goodwill                                           21.6               10.0
Lease incentives                                  (3.2)              (1.5)
Interest rate swap                                  3.6                1.4
                                             ----------         ----------
IFRS transition adjustments                        22.0                9.9
                                             ----------         ----------
Profit for the period - IFRS                       12.5               11.4
                                                 ======             ======


b)                     Impact on net assets
                              30 March 2007  15 September 2006  31 March 2006
                                         £m                 £m             £m

Net assets - UK GAAP                  191.4              180.4          182.5

Goodwill                               21.6               10.0              -
Lease incentives                      (6.6)              (4.9)          (3.4)
Interest rate swap                      0.7              (1.5)          (2.9)
Financial guarantees                  (4.0)              (4.0)          (4.0)
                                 ----------         ----------     ----------
IFRS transition adjustments            11.7              (0.4)         (10.3)
                                 ----------         ----------     ----------
Net assets - IFRS                     203.1              180.0          172.2
                                     ======             ======         ======


c) Impact on cash flows

   None of the adjustments arising from IFRS relate to cash, and therefore there
   is no impact on reported cash flows.




Restated IFRS Consolidated Financial Statements

Consolidated Income Statement

                                                52 weeks ended    24 weeks ended
                                                 30 March 2007 15 September 2006
                                                            £m                £m

Revenue                                                3,009.8           1,430.3
Cost of sales                                        (2,926.5)         (1,393.7)
                                                    ----------        ----------
Gross profit                                              83.3              36.6

Administrative expenses
- normal                                                (46.0)            (16.2)
- exceptional items : professional fees re:              (1.2)                 -
  pension scheme
- exceptional items : restructuring costs                (0.6)             (0.8)
                                                     ---------         ---------
Total administrative expenses                           (47.8)            (17.0)
                                                     ---------         ---------

Operating profit                                          35.5              19.6

Finance income                                             5.8               4.9
Finance expenses                                        (13.0)             (9.0)
                                                    ----------        ----------
Net financing costs                                      (7.2)             (4.1)

Profit before tax                                         28.3              15.5

Income tax                                              (15.8)             (4.1)
                                                    ----------        ----------
Profit for the period attributable to equity              12.5              11.4
holders of the parent
                                                        ======            ======





Consolidated Statement of Recognised Income and Expense



                                                52 weeks ended    24 weeks ended
                                                 30 March 2007 15 September 2006
                                                            £m                £m

Actuarial gain/(loss) on defined benefit plans            43.5             (5.2)
Tax recognised on income and expenses
recognised directly in equity
                                                        (13.0)               1.6
Payments to deferred pension members                    (12.1)                 -
                                                    ----------        ----------
Net income/(expenses) recognised directly in              18.4             (3.6)
equity

Profit for the period                                     12.5              11.4
                                                    ----------        ----------
Total recognised income and expense for the
period attributable to equity holders of the
parent                                                    30.9               7.8
                                                        ======            ======




Please refer to pages 12 to 16 for the reconciliation of previously published UK
GAAP figures to IFRS.









Consolidated Balance Sheet

                                 30 March 2007  15 September 2006  31 March 2006
                                            £m                 £m             £m
ASSETS
Non-current assets
Property, plant and equipment             65.1               68.7           75.7
Intangible assets                        410.1              410.1          410.1
Deferred tax asset                        10.8               28.1           30.6
                                    ----------         ----------     ----------
                                         486.0              506.9          516.4
Current assets
Inventories                              176.2              169.4          168.1
Trade and other receivables               55.0               60.5           63.0
Cash and cash equivalents                 29.9               17.5           32.4
Other financial assets                     0.7                  -              -
                                    ----------         ----------     ----------
                                         261.8              247.4          263.5
                                    ----------         ----------     ----------
Total assets                             747.8              754.3          779.9
                                    ----------         ----------     ----------
LIABILITIES
Current liabilities
Trade and other payables               (338.9)            (340.0)        (297.2)
Bank overdraft                          (18.9)                  -         (30.2)
Other interest bearing loans             (0.6)              (1.1)          (2.4)
and borrowings
Current tax liabilities                 (11.3)              (2.4)
                                    ----------         ----------     ----------
                                       (369.7)            (343.5)        (329.8)
Non-current liabilities
Other interest bearing loans            (86.9)             (86.0)        (127.0)
and borrowings
Other payables                          (18.4)             (19.5)         (20.1)
Employee benefits                       (27.3)             (80.8)         (84.6)
Provisions                              (42.4)             (43.0)         (43.3)
Other financial liabilities                  -              (1.5)          (2.9)
                                    ----------         ----------     ----------
                                       (175.0)            (230.8)        (277.9)
                                    ----------         ----------     ----------
Total liabilities                      (544.7)            (574.3)        (607.7)
                                    ----------         ----------     ----------

Net assets                               203.1              180.1          172.2
                                        ======             ======         ======
EQUITY
Capital and reserves
attributable to equity holders
Share capital                            275.9              275.9          275.9
Share premium account                     16.7               16.7           16.7
Retained earnings                       (89.5)            (112.5)        (120.4)
                                    ----------         ----------     ----------
Total equity attributable to             203.1              180.1          172.2
equity holders
                                        ======             ======         ======




Please refer to pages 12 to 16 for the reconciliation of previously published UK
GAAP figures to IFRS.






Consolidated Cash Flow Statement

                                                52 weeks ended    24 weeks ended
                                                 30 March 2007 15 September 2006
                                                            £m                £m

Cash flows from operating activities
Profit for the period                                     12.5              11.4
Depreciation                                              17.4               8.1
Finance income                                          (10.7)             (4.9)
Finance expenses                                          17.9               9.0
Income tax expense                                        15.8               4.1
(Increase)/decrease in inventories                       (8.1)             (1.3)
(Increase)/decrease in debtors                             8.0               2.5
Increase in creditors                                     25.1              42.0
Cash outflow relating to provisions                      (3.5)             (1.7)
Movement in pension liability                            (8.3)             (6.2)
                                                    ----------        ----------
Net cash flow from operating activities                   66.1              63.0
Net interest paid                                        (7.5)             (3.9)
Income tax paid                                          (0.1)                 -
                                                    ----------        ----------
Cash generated from operating activities                  58.5              59.1
                                                    ----------        ----------
Cash flows from investing activities
Acquisition of property, plant and equipment             (6.0)             (1.1)
                                                    ----------        ----------
Net cash outflow from investing activities               (6.0)             (1.1)
                                                    ----------        ----------
Cash flows from financing activities
Payment of finance lease liabilities                     (0.4)                 -
Repayment of borrowings                                 (73.5)            (72.9)
                                                    ----------        ----------
Net cash outflow from financing activities              (73.9)            (72.9)
                                                    ----------        ----------

Net decrease in cash and cash equivalents               (21.4)            (14.9)

Cash and cash equivalents at the start of the             32.4              32.4
period
                                                    ----------        ----------
Cash and cash equivalents at the end of the               11.0              17.5
period
                                                        ======            ======

Cash and cash equivalents consist of:
Cash and cash equivalents                                 29.9              17.5
Bank overdrafts                                         (18.9)                 -
                                                    ----------        ----------
                                                          11.0              17.5
                                                        ======            ======






Basis of preparation

The financial information provided in this document has been prepared in
accordance with all International Financial Reporting Standards (IFRS) as
adopted by the European Union ('adopted IFRSs').

The Group's date of transition to IFRS is 1 April 2006. IFRS 1 grants certain
exemptions from the full reporting requirements in the transition year. The
following exemptions have been taken in these accounts:

  1. Employee benefits (IAS 19): all cumulative actuarial gains and
     losses have been recognised in equity at transition date.

  2. Business combinations (IFRS 3): the Group has chosen not to
     restate business combinations prior to the transition date on an IFRS basis.

  3. Cumulative translation differences (IAS 21): according to IAS 21,
     cumulative foreign exchange movements on translation of foreign entities on
     consolidation should be disclosed separately within shareholder's funds. 
     IFRS 1 allows the Group to not record cumulative translation differences 
     arising before the date of transition. The Group has elected to take this 
     exemption and have brought forward a nil balance in respect of these 
     translation differences.



Review of changes arising from adoption of IFRS

The following are explanations of the adjustments resulting from the transition
from UK GAAP to IFRS:

            a) Goodwill arising on Business Combinations


Previously goodwill on acquisitions was capitalised and amortised over its
useful economic life. Under IFRS 3 'Business Combinations', amortisation is no
longer charged, instead goodwill is tested for impairment annually and again
where indicators are deemed to exist.



            b) Lease incentives


Under UK GAAP, lease incentives are spread over the period to the next market
rent review. Under SIC 15 'Operating Leases - Incentives', these are spread over
the term of the lease.



            c) Interest Rate Swap


The Group has an interest rate swap to manage its interest rate risk. Under UK
GAAP, the derivative was not included on the balance sheet. However under IAS 39
'Financial Instruments: Recognition and Measurement', the derivative is required
to be recognised at fair value and movements in this are charged to the income
statement.



            d) Financial Guarantees


Under UK GAAP, the Group disclosed certain third party property guarantees as a
contingent liability. Under IAS 39 'Financial Instruments: Recognition and
Measurement', these are a financial liability and are required to be measured
and recognised at fair value. These property guarantees are included within
'Provisions' on the balance sheet.



Accounting Policies

Basis of preparation

The interim financial statements have been prepared in accordance with IFRS for
the first time. The interim financial statements are prepared on the historical
cost basis except that the derivative financial instruments are stated at their
fair value.

Basis of consolidation

Subsidiaries are entities controlled by the Group. Control exists when the Group
has the power, directly or indirectly, to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing
control, potential voting rights that are currently exercisable or convertible
are taken into account. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until
the date that control ceases.

Foreign currency

Transactions in foreign currencies are translated at the foreign exchange rate
ruling at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the balance sheet date are translated at
the foreign exchange rate ruling at that date. Foreign exchange differences
arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a
foreign currency are translated using the exchange rate at the date of the
transaction. Non-monetary assets and liabilities denominated in foreign
currencies that are stated at fair value are translated at foreign exchange
rates ruling at the dates the fair value was determined.

The assets and liabilities of foreign operations, including goodwill and fair
value adjustments arising on consolidation, are translated at foreign exchange
rates ruling at the balance sheet date. The revenues and expenses of foreign
operations are translated at an average rate for the period where this rate
approximates to the foreign exchange rates ruling at the dates of the
transactions.

Exchange differences arising from this translation of foreign operations are
taken directly to the translation reserve. They are released into the income
statement upon disposal.

The Group has taken advantage of the relief available in IFRS 1 to deem the
cumulative translation differences for all foreign operations to be zero at the
date of transition to Adopted IFRSs (1 April 2006).

Classification of financial instruments issued by the Group

Following the adoption of IAS 32, financial instruments issued by the Group are
treated as equity only to the extent that they meet the following two
conditions:

                        (a) they include no contractual obligations upon the
group to deliver cash or other financial assets or to exchange financial assets
or financial liabilities with another party under conditions that are
potentially unfavourable to the group; and

                        (b) where the instrument will or may be settled in the
company's own equity instruments, it is either a non-derivative that includes no
obligation to deliver a variable number of the company's own equity instruments
or is a derivative that will be settled by the company's exchanging a fixed
amount of cash or other financial assets for a fixed number of its own equity
instruments.


To the extent that this definition is not met, the proceeds of issue are
classified as a financial liability. Where the instrument so classified takes
the legal form of the company's own shares, the amounts presented in these
financial statements for called up share capital and share premium account
exclude amounts in relation to those shares.

Finance payments associated with financial liabilities are dealt with as part of
finance expenses. Finance payments associated with financial instruments that
are classified in equity are treated as distributions and are recorded directly
in equity.

Derivative financial instruments

Derivative financial instruments are recognised at fair value. The gain or loss
on remeasurement to fair value is recognised immediately in profit or loss. The
fair value of interest rate swaps is the estimated amount that the Group would
receive or pay to terminate the swap at the balance sheet date, taking into
account current interest rates and the current creditworthiness of the swap
counterparties.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation
and impairment losses. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of
property, plant and equipment.

Leases in which the Group assumes substantially all the risks and rewards of
ownership of the leased asset are classified as finance leases. Where land and
buildings are held under leases the accounting treatment of the land is
considered separately from that of the buildings. Leased assets acquired by way
of finance lease are stated at an amount equal to the lower of their fair value
and the present value of the minimum lease payments at inception of the lease,
less accumulated depreciation and impairment losses. Lease payments are
accounted for as described below.

Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of property, plant and
equipment. Land is not depreciated. The estimated useful lives are as follows:

          • Leasehold improvements lesser of the unexpired term of the lease and
            50 years

          • plant and equipment 5-25 years

          • motor vehicle 4 years



Accounting Policies (continued)

Intangible assets and goodwill

Subject to the transitional relief in IFRS 1, all business combinations are
accounted for by applying the purchase method. Goodwill represents amounts
arising on acquisition of subsidiaries. In respect of business acquisitions that
have occurred since 1 April 2006, goodwill represents the difference between the
cost of the acquisition and the fair value of the net identifiable assets
acquired. Identifiable intangibles are those which can be sold separately or
which arise from legal rights regardless of whether those rights are separable.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is
allocated to cash-generating units and is not amortised but is tested annually
for impairment.

IFRS 1 grants certain exemptions from the full requirements of Adopted IFRSs in
the transition period. The Group elected not to restate business combinations
that took place prior to 1 April 2006. In respect of acquisitions prior to 1
April 2006, goodwill is included on the basis of its deemed cost, which
represents the amount recorded under UK GAAP which was broadly comparable save
that only separable intangibles were recognised and goodwill was amortised.

Amortisation is charged to the income statement on a straight-line basis over
the estimated useful lives of intangible assets unless such lives are
indefinite. Intangible assets with an indefinite useful life and goodwill are
systematically tested for impairment at each balance sheet date. Other
intangible assets are amortised from the date they are available for use.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is
based on the weighted average principle and includes expenditure incurred in
acquiring the inventories and bringing them to their existing location and
condition.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank
overdrafts that are repayable on demand and form an integral part of the Group's
cash management are included as a component of cash and cash equivalents for the
purpose only of the statement of cash flows.

Impairment excluding inventories and deferred tax assets

The carrying amounts of the Group's assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such
indication exists, the asset's recoverable amount is estimated.

For goodwill and assets that have an indefinite useful life, the recoverable
amount is estimated at each balance sheet date.

An impairment loss is recognised whenever the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount. Impairment losses are
recognised in the income statement.

Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to cash-generating
units and then to reduce the carrying amount of the other assets in the unit on
a pro rata basis. A cash generating unit is the smallest identifiable group of
assets that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets.

Goodwill, assets that have an indefinite useful life and intangible assets that
are not yet available for use were tested for impairment as at 1 April 2006, the
date of transition to Adopted IFRSs, even through no indication of impairment
existed.

Calculation of recoverable amount

The recoverable amount of the Group's investments in held-to-maturity securities
and receivables carried at amortised cost is calculated as the present value of
estimated future cash flows, discounted at the original effective interest rate
(i.e., the effective interest rate computed at initial recognition of these
financial assets). Receivables with a short duration are not discounted.

The recoverable amount of other assets is the greater of their net selling price
and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to
the asset. For an asset that does not generate largely independent cash inflows,
the recoverable amount is determined for the cash-generating unit to which the
asset belongs.

Reversals of impairment

An impairment loss in respect of a held-to-maturity security or receivable
carried at amortised cost is reversed if the subsequent increase in recoverable
amount can be related objectively to an event occurring after the impairment
loss was recognised.

An impairment loss in respect of an investment in an equity instrument
classified as available for sale is not reversed through profit or loss. If the
fair value of a debt instrument classified as available-for-sale increases and
the increase can be objectively related to an event occurring after the
impairment loss was recognised in profit or loss, the impairment loss is
reversed through profit or loss.

An impairment loss in respect of goodwill is not reversed.

In respect of other assets, an impairment loss is reversed when there is an
indication that the impairment loss may no longer exist and there has been a
change in the estimates used to determine the recoverable amount.

An impairment loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.







Accounting Policies (continued)

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less
attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost with any difference
between cost and redemption value being recognised in the income statement over
the period of the borrowings on an effective interest basis.

Employee benefits

Defined contribution plans

Obligations for contributions to defined contribution pension plans are
recognised as an expense in the income statement as incurred.

Defined benefit plans

The Group's net obligation in respect of defined benefit pension plans is
calculated by estimating the amount of future benefit that employees have earned
in return for their service in the current and prior periods; that benefit is
discounted to determine its present value, and the fair value of any plan assets
(at bid price) is deducted. The liability discount rate is the yield at the
balance sheet date on AA credit rated bonds that have maturity dates
approximating to the terms of the Group's obligations. The calculation is
performed by a qualified actuary using the projected unit credit method.

All actuarial gains and losses as at 1 April 2006, the date of transition to
Adopted IFRSs, were recognised. In respect of actuarial gains and losses that
arise subsequent to 1 April 2006 the Group recognises them in the period they
occur directly into equity through the statement of recognised income and
expense.

Where the calculation results in a benefit to the Group, the asset recognised is
limited to the present value of any future refunds from the plan or reductions
in future contributions to the plan.

Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis
and are expensed as the related service is provided. A provision is recognised
for the amount expected to be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation
can be estimated reliably.

Provisions

A provision is recognised in the balance sheet when the Group has a present
legal or constructive obligation as a result of a past event, and it is probable
that an outflow of economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting the
expected, risk adjusted, future cash flows at a pre-tax risk-free rate.

Revenue

Turnover is the value of goods and services sold in the ordinary course of
business, excluding sales incentives and value added tax. In the opinion of the
directors there is only one class of business being wholesale cash and carry,
operating solely in the United Kingdom. Provision is made for expected customer
returns.

Cost of sales

Cost of sales represents all costs incurred up to the point of sale including
the operating expenses of the trading outlets.

Supplier rebates

Supplier allowances and credits are recorded as a reduction of cost of sales as
they are earned according to the underlying agreement. Allowances consist
primarily of promotional allowances, quantity discounts and payments under
merchandising agreements. Amounts received under promotional or other
merchandising allowance agreements that require specific performance are
recognised when the performance is satisfied, the amount is fixed and
determinable and the collection is reasonably assured.





Accounting Policies (continued)


Expenses

Operating lease payments

Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are
recognised in the income statement as an integral part of the total lease
expense.

Finance lease payments

Minimum lease payments are apportioned between the finance charge and the
reduction of the outstanding liability. The finance charge is allocated to each
period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability.

Net financing costs

Net financing costs comprise interest payable, finance charges on finance
leases, interest receivable on funds invested, and gains and losses on hedging
instruments that hedge risks associated with financing activities that are
recognised in the income statement (see Derivative financial instruments
accounting policy).

Interest income and interest payable is recognised in profit or loss as it
accrues, using the effective interest method.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The following temporary differences are not provided for:
the initial recognition of goodwill; the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit other than in a
business combination, and differences relating to investments in subsidiaries to
the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.




Reconciliation of Profit

For the 52 weeks ended 30 March 2007

               Reported under  IFRS adjustment  IFRS adjustment  IFRS adjustment  Restated under IFRS
                      UK GAAP
                                             a                b                c
                           £m               £m               £m               £m                   £m

Revenue               3,009.8                -                -                -              3,009.8
Cost of sales       (2,923.3)                -            (3.2)                -            (2,926.5)
                   ----------       ----------       ----------       ----------           ----------
Gross profit             86.5                -            (3.2)                -                 83.3

Administrative
expenses
- normal               (46.0)                -                -                -               (46.0)
- goodwill             (21.6)             21.6                -                -                    -
amortisation
- exceptional           (1.2)                -                -                -                (1.2)
items :
professional
fees re:
pension scheme
- exceptional           (0.6)                -                -                -                (0.6)
items :
restructuring
costs
                    ---------         --------        ---------        ---------            ---------
Total                  (69.4)             21.6                -                -               (47.8)
administrative
expenses
                    ---------        ---------        ---------        ---------            ---------

Operating                17.1             21.6            (3.2)                -                 35.5
profit

Finance income            7.1                -                -              3.6                 10.7
Finance                (17.9)                -                -                -               (17.9)
expenses
                   ----------       ----------       ----------       ----------           ----------
Net financing          (10.8)                -                -              3.6                (7.2)
costs

Profit before             6.3             21.6            (3.2)              3.6                 28.3
tax

Income tax             (15.8)                -                -                -               (15.8)
                   ----------       ----------       ----------       ----------           ----------
(Loss)/profit           (9.5)             21.6            (3.2)              3.6                 12.5
for the period
attributable
to equity
holders of the
parent
                       ======           ======           ======           ======               ======



Reconciliation of Statement of Recognised Income and Expense

For the 52 weeks ended 30 March 2007


             Reported under  IFRS adjustment  IFRS adjustment  IFRS adjustment  Restated under IFRS
                    UK GAAP
                                           a                b                c
                         £m               £m               £m               £m                   £m

Actuarial              43.5                -                -                -                 43.5
gain on
defined
benefit
plans
(March 2007:
the
actuarial
gain is
shown net of
£12.1m of
payments to
deferred
members)
Tax                  (13.0)                -                -                -               (13.0)
recognised
on income
and expenses
recognised
directly in
equity
Payments to          (12.1)                -                -                -               (12.1)
deferred
pension
members
                 ----------       ----------       ----------       ----------           ----------
Net income             18.4                -                -                -                 18.4
recognised
directly in
equity

(Loss)/               (9.5)             21.6            (3.2)              3.6                 12.5
profit for
the period
                 ----------       ----------       ----------       ----------           ----------
Total
recognised
income and              8.9             21.6            (3.2)              3.6                 30.9
expense for
the period
attributable
to equity
holders of
the parent
                     ======           ======           ======           ======               ======






Reconciliation of Equity

As at 30 March 2007

                       Reported under            IFRS             IFRS             IFRS             IFRS    Restated 
                              UK GAAP      adjustment       adjustment       adjustment       adjustment  under IFRS
                                                    a                b                c                d
                                  £m               £m               £m               £m               £m          £m
ASSETS
Non-current
assets
Property,                       65.1                -                -                -                -        65.1
plant and
equipment
Intangible                     388.5             21.6                -                -                -       410.1
assets
Deferred tax                    10.8                -                -                -                -        10.8
asset
                          ----------       ----------       ----------       ----------       ----------  ----------
                               464.4             21.6                -                -                -       486.0
Current
assets
Inventories                    176.2                -                -                -                -       176.2
Trade and                       55.0                -                -                -                -        55.0
other
receivables
Cash and                        29.9                -                -                -                -        29.9
cash
equivalents
Other                              -                -                -              0.7                -         0.7
financial
assets
                          ----------       ----------       ----------       ----------       ----------  ----------
                               261.1                -                -              0.7                -       261.8
                          ----------       ----------       ----------       ----------       ----------  ----------
Total assets                   725.5             21.6                -              0.7                -       747.8
                          ----------       ----------       ----------       ----------       ----------  ----------
LIABILITIES
Current
liabilities
Trade and                    (342.1)                -              3.2                -                -      (338.9)
other
payables
Bank                          (18.9)                -                -                -                -       (18.9)
overdraft
Other                          (0.6)                -                -                -                -        (0.6)
interest
bearing
loans and
borrowings
Current tax                   (11.3)                -                -                -                -       (11.3)
liabilities
                          ----------       ----------       ----------       ----------       ----------  ----------
                             (372.9)                -              3.2                -                -      (369.7)
Non-current
liabilities
Other                         (86.9)                -                -                -                -       (86.9)
interest
bearing
loans and
borrowings
Other                          (8.6)                -            (9.8)                -                -       (18.4)
payables
Employee                      (27.3)                -                -                -                -       (27.3)
benefits
Provisions                    (38.4)                -                -                -            (4.0)       (42.4)
                          ----------       ----------       ----------       ----------       ----------   ----------
                             (161.2)                -            (9.8)                -            (4.0)      (175.0)
                          ----------       ----------       ----------       ----------       ----------   ----------
Total                        (534.1)                -            (6.6)                -            (4.0)      (544.7)
liabilities
                          ----------       ----------       ----------       ----------       ----------   ----------

Net assets                     191.4             21.6            (6.6)              0.7            (4.0)       203.1
                              ======           ======           ======           ======           ======       ======
EQUITY
Capital and
reserves
Share                          275.9                -                -                -                -       275.9
capital
Share                           16.7                -                -                -                -        16.7
premium
account
Retained                     (101.2)             21.6            (6.6)              0.7            (4.0)       (89.5)
earnings
                          ----------       ----------       ----------       ----------       ----------  ----------
Total equity                   191.4             21.6            (6.6)              0.7            (4.0)       203.1
attributable
to equity holders             ======           ======           ======           ======           ======      ======



NB - The above UK GAAP numbers have been adjusted into IFRS format (in
accordance with IAS1)



Reconciliation of Profit

For the 24 weeks ended 15 September 2006

               Reported under  IFRS adjustment  IFRS adjustment  IFRS adjustment  Restated under IFRS
                      UK GAAP
                                             a                b                c
                           £m               £m               £m               £m                   £m

Revenue               1,430.3                -                -                -              1,430.3
Cost of sales       (1,392.2)                -            (1.5)                -            (1,393.7)
                   ----------       ----------       ----------       ----------           ----------
Gross profit             38.1                -            (1.5)                -                 36.6

Administrative
expenses
- normal               (16.2)                -                -                -               (16.2)
- goodwill             (10.0)             10.0                -                -                    -
amortisation
- exceptional           (0.8)                -                -                -                (0.8)
items :
restructuring
costs
                    ---------         --------        ---------        ---------            ---------
Total                  (27.0)             10.0                -                -               (17.0)
administrative
expenses
                    ---------        ---------        ---------        ---------            ---------

Operating                11.1             10.0            (1.5)                -                 19.6
profit

Finance income            3.5                -                -              1.4                  4.9
Finance                 (9.0)                -                -                -                (9.0)
expenses
                   ----------       ----------       ----------       ----------           ----------
Net financing           (5.5)                -                -              1.4                (4.1)
costs

Profit before             5.6             10.0            (1.5)              1.4                 15.5
tax

Income tax              (4.1)                -                -                -                (4.1)
                   ----------       ----------       ----------       ----------           ----------
Profit/(loss)             1.5             10.0            (1.5)              1.4                 11.4
for the period
attributable
to equity
holders of the
parent
                       ======           ======           ======           ======               ======



Reconciliation of Statement of Recognised Income and Expense

For the 24 weeks ended 15 September 2006


                       Reported under            IFRS             IFRS             IFRS         Restated 
                              UK GAAP      adjustment       adjustment       adjustment       under IFRS
                                                    a                b                c       
                                  £m               £m               £m               £m               £m     

Actuarial                       (5.2)               -                -                -             (5.2)
loss on defined
benefit plans
Tax                              1.6                -                -                -              1.6
recognised on income
and expenses recognised
directly in equity
                          ----------       ----------       ----------       ----------       ----------
Net expense                    (3.6)                -                -                -             (3.6)
recognised directly in
equity

Profit/                         1.5              10.0            (1.5)              1.4             11.4
(loss) for the period
                         ----------        ----------       ----------       ----------       ----------
Total recognised
income and                    (2.1)              10.0            (1.5)              1.4              7.8
expense for the period
attributable to equity
holders of the parent
                             ======            ======           ======           ======           ======








Reconciliation of Equity

As at 15 September 2006

                       Reported under            IFRS             IFRS             IFRS             IFRS    Restated 
                              UK GAAP      adjustment       adjustment       adjustment       adjustment  under IFRS
                                                    a                b                c                d
                                  £m               £m               £m               £m               £m          £m
ASSETS
Non-current
assets
Property,                       68.7                -                -                -                -        68.7
plant and
equipment
Intangible                     400.1             10.0                -                -                -       410.1
assets
Deferred tax                    28.1                -                -                -                -        28.1
asset
                          ----------       ----------       ----------       ----------       ----------  ----------
                               496.9             10.0                -                -                -       506.9
Current
assets
Inventories                    169.4                -                -                -                -       169.4
Trade and                       60.5                -                -                -                -        60.5
other
receivables
Cash and                        17.5                -                -                -                -        17.5
cash
equivalents
                          ----------       ----------       ----------       ----------       ----------  ----------
                               247.4                -                -                -                -       247.4
                          ----------       ----------       ----------       ----------       ----------  ----------
Total assets                   744.3             10.0                -                -                -       754.3
                          ----------       ----------       ----------       ----------       ----------  ----------
LIABILITIES
Current liabilities
Trade and                    (343.2)                -              3.2                -                -     (340.0)
other payables
Other                          (1.1)                -                -                -                -       (1.1)
interest bearing
loans and borrowings
Current tax                    (2.4)                -                -                -                -       (2.4)
liabilities
                          ----------       ----------       ----------       ----------       ----------  ----------
                             (346.7)                -              3.2                -                -     (343.5)
Non-current liabilities
Other                         (86.0)                -                -                -                -      (86.0)
interest bearing
loans and borrowings
Other                         (11.4)                -            (8.1)                -                -      (19.5)
payables
Employee                      (80.8)                -                -                -                -      (80.8)
benefits
Provisions                    (39.0)                -                -                -            (4.0)      (43.0)
Other                              -                -                -            (1.5)                -       (1.5)
financial liabilities
                          ----------       ----------       ----------       ----------       ----------  ----------
                             (217.2)                -            (8.1)            (1.5)            (4.0)     (230.8)
                          ----------       ----------       ----------       ----------       ----------  ----------
Total                        (563.9)                -            (4.9)            (1.5)            (4.0)     (574.3)
liabilities
                          ----------       ----------       ----------       ----------       ----------  ----------

Net assets                     180.4             10.0            (4.9)            (1.5)            (4.0)      180.0
                              ======           ======           ======           ======           ======      ======
EQUITY
Capital and reserves
Share                          275.9                -                -                -                -      275.9
capital
Share                           16.7                -                -                -                -       16.7
premium
account
Retained                     (112.2)             10.0            (4.9)            (1.5)            (4.0)     (112.6)
earnings
                          ----------       ----------       ----------       ----------       ----------  ---------
Total equity                   180.4             10.0            (4.9)            (1.5)            (4.0)      180.0
attributable to equity
holders
                              ======           ======           ======           ======           ======     ======



NB - The above UK GAAP numbers have been adjusted into IFRS format (in
accordance with IAS1)




Reconciliation of Equity

As at 31 March 2006 (Opening balance sheet for IFRS)

                       Reported under            IFRS             IFRS             IFRS             Restated 
                              UK GAAP      adjustment       adjustment       adjustment           under IFRS
                                                    b                c                d
                                  £m               £m               £m               £m                   £m
ASSETS
Non-current assets
Property,                       75.7                -                -                -                 75.7
plant and equipment
Intangible                     410.1                -                -                -                410.1
assets
Deferred tax                    30.6                -                -                -                 30.6
asset
                          ----------       ----------       ----------       ----------           ----------
                               516.4                -                -                -                516.4
Current assets
Inventories                    168.1                -                -                -                168.1
Trade and                       63.0                -                -                -                 63.0
other receivables
Cash and                        32.4                -                -                -                 32.4
cash equivalents
                          ----------       ----------       ----------       ----------           ----------
                               263.5                -                -                -                263.5
                          ----------       ----------       ----------       ----------           ----------
Total assets                   779.9                -                -                -                779.9
                          ----------       ----------       ----------       ----------           ----------
LIABILITIES
Current liabilities
Trade and                    (300.4)              3.2                -                -              (297.2)
other
payables
Other                         (30.2)                -                -                -               (30.2)
interest bearing
loans and borrowings
Current tax                    (2.4)                -                -                -                (2.4)
liabilities
                          ----------       ----------       ----------       ----------           ----------
                             (333.0)              3.2                -                -              (329.8)
Non-current liabilities
Other                        (127.0)                -                -                -              (127.0)
interest bearing
loans and
borrowings
Other                         (13.5)            (6.6)                -                -               (20.1)
payables
Employee                      (84.6)                -                -                -               (84.6)
benefits
Provisions                    (39.3)                -                -            (4.0)               (43.3)
Other                              -                -            (2.9)                -                (2.9)
financial
liabilities
                          ----------       ----------       ----------       ----------           ----------
                             (264.4)            (6.6)            (2.9)            (4.0)              (277.9)
                          ----------       ----------       ----------       ----------           ----------
Total                        (597.4)            (3.4)            (2.9)            (4.0)              (607.7)
liabilities
                          ----------       ----------       ----------       ----------           ----------

Net assets                     182.5            (3.4)            (2.9)            (4.0)                172.2
                              ======           ======           ======           ======               ======
EQUITY
Capital and reserves
Share                          275.9                -                -                -                275.9
capital
Share                           16.7                -                -                -                 16.7
premium account
Retained                     (110.1)            (3.4)            (2.9)            (4.0)              (120.4)
earnings
                          ----------       ----------       ----------       ----------           ----------
Total equity                   182.5            (3.4)            (2.9)            (4.0)                172.2
attributable
to equity holders             ======           ======           ======           ======               ======



NB - The above UK GAAP numbers have been adjusted into IFRS format (in
accordance with IAS1)



                      This information is provided by RNS
            The company news service from the London Stock Exchange