Statement re IFRS transition

European Motor Hldgs PLC
18 October 2005


EUROPEAN MOTOR HOLDINGS plc ("EMH")

ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS


European Motor Holdings plc has today published its unaudited full year restated
results for the year ended 28 February 2005 under International Financial
Reporting Standards ("IFRS").  The full report, which is now available on EMH's
website at www.emhplc.com/IFRS.pdf, covers the following areas:

• Basis of preparation
• First time adoption of IFRS
• Financial impact of transition
• Principal accounting policies

Reconciliations of UK GAAP to IFRS in respect of profits for the six months
ended 31 August 2004 and the year ended 28 February 2005, and the financial
position as at 1 March 2004 (the transition date), 31 August 2004 and 28
February 2005 following the adoption of IFRS are also provided.

EMH has previously reported its results under UK Generally Accepted Accounting
Principles ("UK GAAP").  All EU listed  companies are required to report their
consolidated financial statements under IFRS for accounting periods beginning on
or after 1 January 2005.  The group's first annual report under IFRS will be for
the year ending 28 February 2006 with the first IFRS interim results being for
the six months ended 31 August 2005.

The report available on the website explains the main changes that are required
to the group's financial statements on adoption of IFRS.  The results for the 
year ended 28 February 2005 under both UK  GAAP and IFRS are shown below for 
comparison. 

Results for the year ended 28 February 2005                UK GAAP       IFRS
                                                               £m           £m
------------------------------                            ---------     --------
Operating profit before exceptional items                    14.7         15.8
Exceptional items                                             8.3          8.5
------------------------------                            ---------     --------

Profit before interest                                       23.0         24.3
Net interest                                                  0.8         (0.1)
Exceptional interest                                          6.3          6.3
------------------------------                            ---------     --------

Profit before tax                                            30.1         30.5
Tax                                                          (9.7)        (9.3)
------------------------------                            ---------     --------

Profit after tax                                             20.4         21.2
------------------------------                            ---------     --------

As can be seen from the above table, the impact of the transition is broadly
neutral on profit before tax.  The tax charge is lower under IFRS because the UK
GAAP charge included an exceptional element that would have been provided in
prior years under IFRS in respect of rolled over gains.


The impact on net assets is similarly broadly neutral (an increase from £80.0
million to £80.1 million) with an increase as the final dividend is no longer
provided for under IFRS, offset by reductions principally as a result of the
inclusion of the net pension deficit and deferred tax liability on rolled over
gains, which were previously unprovided under UK GAAP.


There is no impact on the business fundamentals, including underlying cash
flows, as a result of the transition from UK GAAP to IFRS.


EMH will be announcing its interim results for the six months ended 31 August
2005 on 26 October 2005.


For further information, please contact

Richard Palmer (Chief Executive)
Ann Wilson (Finance Director)
Tel [phone]


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