IFRS statement
Elementis PLC
31 March 2005
31 March 2005
ELEMENTIS plc
STATEMENT ON THE TRANSITION TO INTERNATIONAL ACCOUNTING STANDARDS
Introduction
Elementis plc will be reporting its financial results in accordance with
International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS) with effect from 1 January 2005. This statement presents the
results for the six months ended 30 June 2004 and the year ended 31 December
2004 restated to an IFRS basis.
2004 Full Year Highlights
• Sales unchanged at £389.2 million
• Underlying operating profit of £11.5 million1 (UK Gaap: £11.8 million)
• Profit before tax of £3.3 million (UK Gaap: loss of £7.8 million)
• Underlying earnings per share 1.3p (UK Gaap: 1.4p)
• Group cash flow and net year end borrowings unchanged
• Net assets increased by £11.4 million and net year end gearing 29 per
cent2 (UK Gaap: 30 per cent)
1. Exceptional items are not defined under IFRS. Underlying profits exclude
those items classified as exceptional under UK Gaap, together with any
goodwill amortisation charged under UK Gaap.
2. The ratio of net borrowings to shareholders' funds plus net borrowings.
Brian Taylorson, Finance Director of Elementis plc, said:
'The main impact of the transition to IFRS is that goodwill arising on
acquisition will no longer be amortised over 20 years. Profit before taxation in
2004 is increased by £11.1 million mainly due to this change. Underlying
earnings per share which excluded goodwill amortisation and items classified as
exceptional under UK Gaap is 1.3 pence per share under IFRS compared to
1.4 pence per share under UK Gaap'.
- Ends -
On 31 March 2005 at 14.30 BST, Elementis will be holding a conference call for
analysts and investors to discuss the implications of the transition to IFRS on
the reported results. The conference call will be hosted by Brian Taylorson,
Finance Director, and Stuart Kilpatrick, Group Financial Controller, and UK and
international callers can participate by calling +44 (0)1452 561263. Should you
be unable to attend this conference call, a replay facility will be available
for 7 days on 0845 245 5205 from the UK or on +44 (0)1452 550 000
internationally, access code 491 0800#.
Enquiries
Elementis +44 (0)1784 227000
Brian Taylorson Finance Director
Hilary Reid Evans Head of Investor Relations and Corporate Communications
Brunswick +44 (0)20 7404 5959
Kate Holgate
Wendel Verbeek
Laure Korenian-Chabert
Restatement of financial information for International Accounting Standards and
International Financial Reporting Standards
Introduction
Elementis plc currently prepares its primary financial statements under UK
Generally Accepted Accounting Practice (UK GAAP). From 1 January 2005 the Group
is required to prepare its consolidated financial statements in accordance with
International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS)* and Interpretations as adopted by the European Union (EU). The
first results prepared under IFRS will be the Group's interim results for the
six months ending 30 June 2005. The Group's first Annual Report under IFRS will
be for 2005.
Basis of preparation
The restated financial information has been prepared in accordance with IFRS
under the assumption that all existing standards in issue from the International
Accounting Standards Board (IASB) will be fully endorsed by the EU. The failure
of the EU to endorse all of these standards for financial reporting in 2005
could result in changes to the financial information presented in this document.
The financial information for the six months ended 30 June 2004 and for the full
year ended 31 December 2004, as prepared on the above basis, is unaudited.
IFRS 1 exemptions
IFRS 1 'First Time Adoption of International Financial Reporting Standards',
determines that the transition date for Elementis plc will be 1 January 2004. It
permits those companies adopting IFRS for the first time to take certain
exemptions from the full requirements of IFRS during the transition period.
Elementis plc has taken the following key exemptions:
• Business combinations
The Group has not restated business combinations prior to the transition
date to an IFRS basis.
• Financial Instruments
The Group has taken the exemption not to restate comparatives for IAS 32
and IAS 39. As a result, the information in this restatement and the
comparative information in the 2005 Financial Statements will be presented
on the existing UK GAAP basis.
• Cumulative translation differences
Under IAS 21, on disposal of a business, the cumulative amount of exchange
differences previously recognised directly in equity for that business are
charged or credited to the income statement as part of the profit or loss
on disposal. The Group has adopted the exemption allowing these cumulative
translation differences to be reset to zero at the transition date.
• Share based payments
The Group has adopted the exemption to apply IRFS 2 'Share-based payments'
only to awards made after 7 November 2002.
* References to IFRS throughout this document refer to the application of
International Accounting Standards and International Financial Reporting
Standards.
Accounting policy changes
(a) IFRS 2 Share Based Payments
In accordance with IFRS 2, Elementis is required to recognise a charge to
operating profit representing the fair value of share options granted to
employees. The fair value has been calculated using a binomial valuation
model and is charged to the income statement over the relevant vesting
period. The charge is adjusted to reflect actual and expected levels of
vesting, and for the expected achievement of any non-market performance
conditions attached to each option. The impact in 2004 is a charge of £0.1
million for the six months ended 30 June 2004 and £0.2 million for the year
ended 31 December 2004.
(b) IAS 19 Employee Benefits
Elementis fully adopted FRS 17 'Retirement Benefits' for the year ended
31 December 2002. The Group's policy under FRS 17 is to recognise any
actuarial gains and losses in full immediately in the statement of
recognised gains and losses.
There is an option to account for actuarial gains and losses in this way
within the IASB exposure draft 'Actuarial Gains and Losses, Group Plans and
Disclosures'. The draft was adopted by the IASB in December 2004 and is
effective from 1 January 2006 with earlier adoption allowed. Elementis will
apply the revised standard voluntarily from the transition date. There is
therefore no operating profit impact of the transition to IFRS in respect
of pensions and post retirement benefits.
Under FRS 17 deferred tax assets and liabilities are netted against the
gross pension asset and liability. They are classified separately under
IFRS and as a result £25.8 million has been transferred from the pension
liability reported under UK GAAP at 31 December 2003. At 30 June 2004 the
transfer to deferred tax assets was £26.0 million and at 31 December 2004
the transfer was £16.9 million.
(c) IFRS 3 Business Combinations
IFRS 3 prohibits merger accounting and the amortisation of goodwill. The
standard requires goodwill to be carried at cost with an annual impairment
review.
Under the transitional arrangements of IFRS 1:
• All prior business combination accounting is frozen at the transition
date; and
• The value of goodwill is frozen at 1 January 2004 and treated as cost
from that date.
The impact of removing the amortisation charge is to increase operating
profit by £11.4 million in the year ended 31 December 2004 and by £5.6
million for the six months ended 30 June 2004. There are no net associated
tax impacts in either period. However the tax benefit from the amortisation
of goodwill in the computation of US taxable profits continues to accrue
and this increases earnings per share before goodwill amortisation and
exceptionals by 0.1 pence in the six months ended 30 June 2004 and by nil
in the full year. Basic earnings per share included this tax benefit under
UK GAAP.
(d) IAS 32 and IAS 39 Financial Instruments
IAS 32 and IAS 39 address the accounting for, and financial reporting of,
financial instruments. IAS 32 covers disclosure and presentation whilst IAS
39 covers recognition and measurement. The general principle of IAS 39 is
that financial assets should be recognised at fair value and financial
liabilities should be recognised at amortised cost although the IASB
version has an option to fair value financial liabilities. Accounting for
the movements in fair value is dependant on the designation of the relevant
financial instrument and whether hedge accounting is applied. Under the
transitional rules of IFRS 1, Elementis will adopt IAS 32 and IAS 39 with
effect from 1 January 2005.
These standards impact Elementis in the following areas:
(i) Transactional hedging
Elementis uses forward foreign currency contracts to hedge transaction
exposures where appropriate. It is unlikely that this process would
qualify for hedge accounting under IAS 39 which means that all
exchange differences would be taken to the profit and loss account. At
30 June 2004 and 31 December 2004 there were no forward contracts
outstanding and therefore there would be no adjustment to the reported
results in applying IAS 39 for transactional hedging.
(ii) Balance sheet hedging
Elementis borrows in USD and Euros to hedge the translation exposures
on its overseas net assets. IFRS will require formal documentation of
the hedge and regular monitoring to ensure that the hedge is effective
and for hedge accounting to be available. With the documentation and
monitoring in place, it is anticipated that all exchange gains or
losses will be matched in equity against the gains or losses on the
overseas net assets.
(iii) Embedded derivatives
Embedded derivatives arise in loan instruments, leases or commercial
contracts. Embedded derivatives occur in contracts that incorporate
either implicit or explicit terms that result in the contract behaving
like a derivative. Where a contract includes an embedded derivative
which is not closely related to the host contract, the derivative
element must be accounted separately from the host contract.
Elementis has a number of commercial contracts which are settled in a
currency that is not the primary currency in which either party
operates or the currency in which the goods traded are routinely
denominated. These are embedded derivatives which will require
separation. In effect this means that the foreign currency gain or
loss between the date of order and the date of the transaction
will be recognised in the income statement. The foreign currency gain
or loss between the transaction date and the settlement date will
continue to be recognised under IFRS as it currently is under UK GAAP.
Given the relatively short time period between order and delivery in
most businesses, the impact is not expected to be material.
(iv) Disclosure of B shares
Due to the preferential rights attached to the redeemable B shares,
under IFRS they will be classified as debt and the preference
dividends paid classified as interest with effect from 1 January 2005.
Under current UK GAAP the B shares are classified as equity and
preference dividends are disclosed within dividends The net book value
of the B shares at 31 December 2004 was £2.2 million.
(e) IAS 12 Income Taxes
IAS 12 changes the methodology used to calculate deferred tax on unrealised
profit on inter-company sales. Under IFRS deferred tax is calculated at the
receiving company's tax rate whilst under UK GAAP, deferred tax is
calculated at the supplying company's tax rate. In respect of unrealised
profit on inter-company sales, deferred tax assets have been increased by
£0.1 million at 31 December 2004, and by £nil at 30 June 2004 and 31
December 2003 respectively.
Under IAS 12, deferred tax is always recognised on the difference between
the book value of any revalued non-monetary assets and their tax base.
Under UK GAAP deferred tax would only be provided if there was an intention
to dispose of the asset. A subsidiary company of Elementis plc carries a
non-sterling denominated investment and revalues it to the closing exchange
rate at each period end. This gives rise to a deferred tax liability of
£3.6 million at 31 December 2003, £0.7 million at 30 June 2004 and £4.0
million at 31 December 2004. The recognition of this liability enables the
same subsidiary to account for an equal and opposite deferred tax asset in
respect of previously unrecognised capital losses and there is therefore no
impact on the income statement. There is no impact on the balance sheet as
the asset and liability net off within deferred tax liabilities.
(f) IAS 38 Intangible Assets
Under IAS 38 Elementis is required to capitalise intangible assets subject
to certain specified criteria. The Group's policy under UK GAAP in respect
of research and development expenditure was to expense such costs. Under
IAS 38 research expenditure is expensed whereas development costs must be
capitalised where the criteria have been met. Following a review of the
Group's research and development expenditure over the last five years, no
material development costs met the IAS38 criteria and therefore no
adjustment was required under IFRS.
Under IAS 38 there is a rebuttable presumption that the fair value of an
intangible asset can be measured reliably on the acquisition of a business.
IAS 38 has been applied to the acquisition accounting for Sasol Servo BV,
which was acquired on 30 June 2004 and an intangible asset of £0.6 million
has been recognised at that date and £0.5 million recognised at 31 December
2004. The intangible asset relates to a favourable supply contract, whereby
the business can purchase raw materials at below market price from a
supplier.
Amortisation of intangible assets under IAS 38 for the six months ended 30
June 2004 was £nil and £0.1 million for the full year. There was no effect
on the tax charge of this change in accounting policy.
(g) IFRS 5 Non current assets held for sale
IFRS 5 requires, subject to certain criteria, non current assets held for
sale to be presented separately in the balance sheet at fair value less
costs to sell. Non current assets held for sale are not depreciated. As a
result £3.4 million was transferred from non current assets to current
assets at 30 June 2004 and £0.4 million at 31 December 2004 (31 December
2003 : £nil).
There was no impact on the income statement in the six months ended 30 June
2004 or in the full year.
(h) IAS 14 Segmental Reporting
Both UK GAAP and IFRS require statutory segmental reporting to match the
internal reporting structure. Under UK GAAP, there is an exemption if the
disclosure of a particular segment is considered by the directors to be
prejudicial to the interests of the Company. Under IFRS there is no
exemption and as a result, Elementis will be required to disclose segmental
information for the Pigments business separately from the Specialties
business, with effect from 1 January 2005.
Conclusion
The IFRS information in this document has been prepared on the basis set out
above and, in particular, is subject to the completion of the EU endorsement
process. The financial information presented sets out the adjustments between UK
GAAP and IFRS for Elementis plc based on the information currently available.
The financial information should not be used as indicators of future adjustments
between UK GAAP and IFRS due to the risk and uncertainty surrounding events in
the future. Net assets are impacted on the restatement from UK GAAP to IFRS, but
there is no impact upon the underlying cash balances within the business.
The overall impact on earnings per share as set out below:
-------------------------------------------------------------------------------
Six months Year
ended ended
30 June 31 December
2004 2004
pence pence
--------------------------------------------------------------------------------
Basic and diluted
-------- --------
IFRS 0.6 0.8
-------- --------
UK GAAP (0.7) (1.8)
-------- --------
Basic and diluted before goodwill amortisation and
exceptionals -------- --------
IFRS 0.7 1.3
-------- --------
UK GAAP 0.6 1.4
-------- --------
Summarised Consolidated Income Statement
--------------------------------------------------------------------------------
IFRS IFRS
Six months ended Year ended
30 June 31 December
2004 2004
Unaudited Unaudited
£million £million
--------------------------------------------------------------------------------
Turnover 176.8 389.2
----------- ----------
Operating profit
- before exceptionals 5.6 11.5
- exceptionals (1.0) (2.6)
----------- ----------
Operating profit 4.6 8.9
Net finance costs (2.6) (5.6)
----------- ----------
Profit before tax 2.0 3.3
Taxation 0.4 0.1
----------- ----------
Profit after tax 2.4 3.4
Minority interest - -
----------- ----------
Net profit for the period 2.4 3.4
=========== ==========
----------- ----------
Basic and diluted earnings per share 0.6p 0.8p
----------- ----------
Basic and diluted earnings per share before
exceptionals 0.7p 1.3p
----------- ----------
Summarised Consolidated Balance Sheet
-------------------------------------------------------------------------------
IFRS IFRS
30 June 31 December
2004 2004
Unaudited Unaudited
£million £million
-----------------------------------------------------------------------------
ASSETS
Non-current assets
Property, plant and equipment 171.8 173.0
Goodwill and intangible assets 163.8 155.7
Other investments 3.8 1.9
Deferred tax assets 26.0 16.9
-------- --------
365.4 347.5
-------- --------
Current assets
Inventories 66.3 68.3
Trade and other receivables 91.9 84.0
Cash and cash equivalents 32.4 11.5
Assets classified as held for sale 6.7 3.7
-------- --------
197.3 167.5
-------- --------
Total assets 562.7 515.0
-------- --------
LIABILITIES
Current liabilities
Short term borrowings and overdrafts 8.7 4.4
Other creditors 65.4 79.8
Liabilities classified as held for sale 1.3 1.3
-------- --------
75.4 85.5
-------- --------
Non-current liabilities
Loans 129.9 97.3
Deferred tax liabilities 0.9 2.9
Retirement benefit obligations 79.7 81.4
Provisions 23.4 22.4
Government grants 2.4 2.4
-------- --------
236.3 206.4
-------- --------
Total liabilities 311.7 291.9
-------- --------
Net assets 251.0 223.1
-------- --------
EQUITY
Capital and reserves attributable to equity holders
Share capital 23.6 23.8
Share premium account 1.2 1.2
Other reserves 66.9 71.5
Retained earnings 157.4 124.8
-------- --------
249.1 221.3
Minority equity interests 1.9 1.8
-------- --------
Total equity and reserves 251.0 223.1
-------- --------
-----------------------------------------------------------------------------------------
Reconciliation of Profit
For the six months ended
30 June 2004
-----------------------------------------------------------------------------------------
Previously IFRS 2 IFRS 3 Total effect Restated
reported Share based Business of transition under IFRS
under UK payments combinations to IFRS Unaudited
GAAP (a) (c)
-----------------------------------------------------------------------------------------
£million £million £million £million £million
-----------------------------------------------------------------------------------------
Sales 176.8 - - - 176.8
-------- -------- --------- -------- --------
Operating profit:
-------- -------- --------- -------- --------
- before
goodwill 5.7 (0.1) - (0.1) 5.6
amortisation &
exceptionals -------- -------- --------- -------- --------
- goodwill
amortisation (5.6) - 5.6 5.6 -
-------- -------- --------- -------- --------
- exceptionals (1.0) - - - (1.0)
-------- -------- --------- -------- --------
Operating
(loss)/profit (0.9) (0.1) 5.6 5.5 4.6
-------- -------- --------- -------- --------
Net finance
costs (2.6) - - - (2.6)
-------- -------- --------- -------- --------
(Loss)/profit
before tax (3.5) (0.1) 5.6 5.5 2.0
-------- -------- --------- -------- --------
Taxation 0.4 - - - 0.4
-------- -------- --------- -------- --------
(Loss)/profit
after tax (3.1) (0.1) 5.6 5.5 2.4
-------- -------- --------- -------- --------
Minority - - - - -
interest -------- -------- --------- -------- --------
(Loss)/profit
for the period (3.1) (0.1) 5.6 5.5 2.4
-------- -------- --------- -------- --------
(Loss)/earning
s per share (0.7)p - 1.3 1.3 0.6p
-------- -------- --------- -------- --------
Earnings per
share before
goodwill
amortisation &
exceptionals 0.6p - 0.1 0.1 0.7p
-------- -------- --------- -------- --------
Reconciliation of Equity as at 30 June 2004
---------------------------------------------------------------------------------------------------------------------
Previously Re- IFRS 12 IFRS 3 IFRS 5 Total effect Restated
reported under classifications Shared based Business Non-current of transition under IFRS
UK GAAP payments combinations assets to IFRS Unaudited
(a) (c) (g)
---------------------------------------------------------------------------------------------------------------------
£million £million £million £million £million £million £million
---------------------------------------------------------------------------------------------------------------------
ASSETS
Non-Current
assets
Property,
plant &
equipment 175.2 - - - (3.4) (3.4) 171.8
--------- --------- --------- --------- --------- --------- ---------
Goodwill &
intangible
assets 158.2 - - 5.6 5.6 163.8
--------- --------- --------- --------- --------- --------- ---------
Other
investments 3.8 - - - - - 3.8
--------- --------- --------- --------- --------- --------- ---------
Deferred tax
assets - 26.0 - - - 26.0 26.0
--------- --------- --------- --------- --------- --------- ---------
337.2 26.0 - 5.6 (3.4) 28.2 365.4
--------- --------- --------- --------- --------- --------- ---------
Current
Assets --------- --------- --------- --------- --------- --------- ---------
Inventories 68.1 - - - (1.8) (1.8) 66.3
--------- --------- --------- --------- --------- --------- ---------
Trade & other
receivables 93.4 - - - (1.5) (1.5) 91.9
--------- --------- --------- --------- --------- --------- ---------
Short term
investments,
cash & cash
equivalents 32.4 - - - - - 32.4
--------- --------- --------- --------- --------- --------- ---------
Non current
assets held
for sale - - - - 6.7 6.7 6.7
--------- --------- --------- --------- --------- --------- ---------
193.9 - - - 3.4 3.4 197.3
--------- --------- --------- --------- --------- --------- ---------
Total assets 531.1 26.0 - 5.6 - 31.6 562.7
--------- --------- --------- --------- --------- --------- ---------
LIABILITIES
Current
liabilities
Short term
borrowings
overdrafts &
current
instalments of
loans (8.7) - - - - - (8.7)
--------- --------- --------- --------- --------- --------- ---------
Other
creditors (66.6) - - - 1.2 1.2 (65.4)
--------- --------- --------- --------- --------- --------- ---------
Liabilities
held for sale - - - - (1.3) (1.3) (1.3)
--------- --------- --------- --------- --------- --------- ---------
(75.3) - - - (0.1) (0.1) (75.4)
--------- --------- --------- --------- --------- --------- ---------
Non-current
liabilities
Loans (129.9) - - - - - (129.9)
--------- --------- --------- --------- --------- --------- ---------
Net pension
liability (53.7) (26.0) - - - (26.0) (79.7)
--------- --------- --------- --------- --------- --------- ---------
Provisions (24.4) 0.9 - - 0.1 1.0 (23.4)
--------- --------- --------- --------- --------- --------- ---------
Government
Grants (2.4) - - - - - (2.4)
--------- --------- --------- --------- --------- --------- ---------
Deferred tax
liabilities - (0.9) - - - (0.9) (0.9)
--------- --------- --------- --------- --------- --------- ---------
(210.4) (26.0) - - 0.1 (25.9) (236.3)
--------- --------- --------- --------- --------- --------- ---------
Total
liabilities (285.7) (26.0) - - - (26.0) (311.7)
--------- --------- --------- --------- --------- --------- ---------
Net assets 245.4 - - 5.6 - 5.6 251.0
--------- --------- --------- --------- --------- --------- ---------
EQUITY
Capital &
reserves
attributable to
equity
holders
Share capital 23.6 - - - - - 23.6
--------- --------- --------- --------- --------- --------- ---------
Share premium 1.2 - - - - - 1.2
--------- --------- --------- --------- --------- --------- ---------
Capital
redemption
reserve 66.9 - - - - - 66.9
--------- --------- --------- --------- --------- --------- ---------
Profit & loss
account 151.8 - - 5.6 - 5.6 157.4
--------- --------- --------- --------- --------- --------- ---------
243.5 - - 5.6 - 5.6 249.1
--------- --------- --------- --------- --------- --------- ---------
Minority
equity
interests 1.9 - - - - - 1.9
--------- --------- --------- --------- --------- --------- ---------
Total equity &
reserves 245.4 - - 5.6 - 5.6 251.0
--------- --------- --------- --------- --------- --------- ---------
Reconciliation of Profit
For the year ended 31 December 2004
--------------------------------------------------------------------------------------------------------------------
Previously Reclassification IFRS 2 IFRS 3 IAS 38 IAS 12 Total
reported Share Business Intangible Income effect of Restated
under based combinations assets tax transition under IFRS
UK Gaap payments to IFRS Unaudited
(a) (c) (f) (e)
-----------------------------------------------------------------------------------------------------------------------
£million £million £million £million £million £million £million £million
-----------------------------------------------------------------------------------------------------------------------
Sales 389.2 - - - - - - 389.2
-------- ---------- -------- -------- ------- ------ ------- -------
Operating
profit: -------- ---------- -------- -------- ------- ------ ------- -------
- before
goodwill 11.8 (0.2) - (0.1) - (0.3) 11.5
amortisation &
exceptionals -------- ---------- -------- -------- ------- ------ ------- ------
- goodwill
amortisation (11.4) - - 11.4 - - 11.4 -
-------- ---------- -------- -------- ------- ------ ------- ------
- exceptionals (2.9) 0.3 - - - - 0.3 (2.6)
-------- ---------- -------- -------- ------- ------ ------- ------
Operating
(loss)/profit (2.5) 0.3 (0.2) 11.4 (0.1) - 11.4 8.9
-------- ---------- -------- -------- ------- ------ ------- ------
Non operating
exceptionals 0.3 (0.3) - - - - (0.3) -
-------- ---------- -------- -------- ------- ------ ------- ------
Net finance
costs (5.6) - - - - - - (5.6)
-------- ---------- -------- -------- ------- ------ ------- ------
(Loss)/profit
before tax (7.8) - (0.2) 11.4 (0.1) - 11.1 3.3
-------- ---------- -------- -------- ------- ------ ------- -------
Taxation - - - - - 0.1 0.1 0.1
-------- ---------- -------- -------- ------- ------ ------- -------
(Loss)/profit
after tax (7.8) - (0.2) 11.4 (0.1) 0.1 11.2 3.4
-------- ---------- -------- -------- ------- ------ ------- -------
Minority - - - - - - - -
interest -------- ---------- -------- -------- ------- ------ ------- -------
(Loss)/profit
for the year (7.8) - (0.2) 11.4 (0.1) 0.1 11.2 3.4
-------- ---------- -------- -------- ------- ------ ------- -------
(Loss)/earning
s per share (1.8)p - - 2.6 - - 2.6 0.8p
-------- ---------- -------- -------- ------- ------ ------- -------
Earnings per
share before
goodwill
amortisation &
exceptionals 1.4p - (0.1) - - - (0.1) 1.3p
-------- ---------- -------- -------- ------- ------ ------- -------
Reconciliation of Equity as at 31 December 2004
-----------------------------------------------------------------------------------------------------------------------
Previously Re- IFRS 2 IFRS 3 IAS 38 IAS 12 IFRS 5 Total effect Restated
reported under classifications Share based Business Intangible Income Non-current of transition under
UK GAAP payments combinations assets tax assets to IFRS IFRS
(a) (b) (f) (e) (g) Unaudited
-----------------------------------------------------------------------------------------------------------------------
£million £million £million £million £million £million £million £million £million
-----------------------------------------------------------------------------------------------------------------------
ASSETS
Non-Current
assets
Property,
plant &
equipment 173.4 - - - - - (0.4) (0.4) 173.0
---------------------------------------------------------------------------------------------------------
Goodwill &
intangible
assets 144.4 - - 11.4 (0.1) - - 11.3 155.7
---------------------------------------------------------------------------------------------------------
Other
investments 1.9 - - - - - - - 1.9
---------------------------------------------------------------------------------------------------------
Deferred tax
assets - 16.9 - - - - - 16.9 16.9
-----------------------------------------------------------------------------------------------------------------------
319.7 16.9 - 11.4 (0.1) - (0.4) 27.8 347.5
-----------------------------------------------------------------------------------------------------------------------
Current
Assets
Inventories 70.1 - - - - - (1.8) (1.8) 68.3
--------------------------------------------------------------------------------------------------------
Trade & other
receivables 85.5 - - - - - (1.5) (1.5) 84.0
---------------------------------------------------------------------------------------------------------
Short term
investments,
cash & cash
equivalents 11.5 - - - - - - - 11.5
----------------------------------------------------------------------------------------------------------
Non current
assets held
for sale - - - - - - 3.7 3.7 3.7
---------------------------------------------------------------------------------------------------------
167.1 - - - - - 0.4 0.4 167.5
---------------------------------------------------------------------------------------------------------
Total assets 486.8 16.9 - 11.4 (0.1) - - 28.2 515.0
---------------------------------------------------------------------------------------------------------
LIABILITIES
Current
liabilities
Short term
borrowings
overdrafts &
current
instalments of
loans (4.4) - - - - - - - (4.4)
----------------------------------------------------------------------------------------------------------
Other
creditors (81.0) - - - - - 1.2 1.2 (79.8)
----------------------------------------------------------------------------------------------------------
Liabilities
held for sale - - - - - - (1.3) (1.3) (1.3)
----------------------------------------------------------------------------------------------------------
(85.4) - - - - - (0.1) (0.1) (85.5)
----------------------------------------------------------------------------------------------------------
Non-current
liabilities
Loans (97.3) - - - - - - - (97.3)
----------------------------------------------------------------------------------------------------------
Net pension
liability (64.5) (16.9) - - - - - (16.9) (81.4)
----------------------------------------------------------------------------------------------------------
Provisions (25.5) 3.0 - - - - 0.1 3.1 (22.4)
----------------------------------------------------------------------------------------------------------
Government
Grants (2.4) - - - - - - - (2.4)
--------------------------------------------------------------------------------------------------------
Deferred tax
liabilities - (3.0) - - - 0.1 - (2.9) (2.9)
---------------------------------------------------------------------------------------------------------
(189.7) (16.9) - - - 0.1 0.1 (16.7) (206.4)
-----------------------------------------------------------------------------------------------------------
Total
liabilities (275.1) (16.9) - - - 0.1 - (16.8) (291.9)
----------------------------------------------------------------------------------------------------------
Net assets 211.7 - - 11.4 (0.1) 0.1 - 11.4 223.1
---------------------------------------------------------------------------------------------------------
EQUITY
Capital &
reserves
attributable to
equity
holders
Share capital 23.8 - - - - - - - 23.8
---------------------------------------------------------------------------------------------------------
Share premium 1.2 - - - - - - - 1.2
---------------------------------------------------------------------------------------------------------
Capital
redemption
reserve 71.5 - - - - - - - 71.5
---------------------------------------------------------------------------------------------------------
Profit & loss
account 113.4 - - 11.4 (0.1) 0.1 - 11.4 124.8
----------------------------------------------------------------------------------------------------------
209.9 - - 11.4 (0.1) 0.1 - 11.4 221.3
----------------------------------------------------------------------------------------------------------
Minority
equity
interests 1.8 - - - - - - - 1.8
----------------------------------------------------------------------------------------------------------
Total equity &
reserves 211.7 - - 11.4 (0.1) 0.1 - 11.4 223.1
---------------------------------------------------------------------------------------------------------
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- 6 hours ago WH Smith
- 6 hours ago Staffline Group
- 7 hours ago Manchester & London Investment Trust
- 7 hours ago Associated British Foods