Restatement for IFRS
Electrocomponents PLC
12 July 2005
Embargoed to 9:00am, Tuesday 12 July 2005
ELECTROCOMPONENTS PLC:
THE IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ('IFRS')
Restatement of 2005 Financial Information
On 25 May 2005, Electrocomponents plc announced its results for the year ended
31 March 2005 using UK Generally Accepted Accounting Principles. This
announcement restates those results under International Financial Reporting
Standards (IFRS).
The Group will prepare financial statements for the year ended 31 March 2006,
and for the half year to 30 September 2005, in accordance with IFRS. The results
for the comparative year (ending 31 March 2005) will therefore be restated. This
report shows the impact of this restatement and explains the primary
differences.
The Group will issue a trading update at its Annual General Meeting on 15 July
2005.
SUMMARY RESULTS
2005 IFRS 2005 UK GAAP 2005 UK GAAP
(unaudited) After amortisation of Before amortisation of
goodwill goodwill
Revenue £773.9m £773.9m
Operating profit £100.8m £95.9m £105.3m
Profit before tax £99.9m £95.0m £104.4m
Income tax expense (£32.3m) (£30.3m) (£30.3m)
Profit for the year attributable to £67.6m £64.7m £74.1m
equity shareholders
Earnings per share 15.5p 14.9p 17.0p
Free cash flow £61.1m £61.1m
Net debt £55.4m £55.4m
Net assets £355.7m £330.7m
As highlighted in the 2004 and 2005 Annual Reports, the most significant areas
of change for the Group include accounting for defined benefit pension schemes,
share options, dividends and goodwill. These affect the profit and loss account
and balance sheet but they have no impact on business performance or cash flow.
The main profit and loss account focus of observers has, in the past, been the
profit before tax and goodwill, which was £104.4m in the year ended 31 March
2005. Under IFRS, this is £99.9m, a decline of 4.3%, with the movements being
the charge for share based payments (£2.4m) and the additional charge for the
defined benefit pension schemes (£2.1m). Calculated on the same basis, earnings
per share falls from 17.0p to 15.5p, a decline of 8.8%. This includes the
additional deferred tax charge resulting from the IFRS treatment of goodwill.
On the balance sheet, the net assets increase from £330.7m under UK GAAP to
£355.7m under IFRS. The main differences are the movement of the provision for
the final dividend for the year ended 31 March 2005 into the following year
(+£54.8m) and the provision for the defined benefit pension scheme deficits net
of deferred tax (-£32.4m). Other smaller adjustments increasing net assets by
£2.6m are detailed in this announcement. The Company has considerable
distributable reserves under both UK GAAP and IFRS.
Cash flow is unchanged from that previously reported under UK GAAP.
Enquiries:
Jeff Hewitt, Deputy Chairman /
Finance Director Electrocomponents plc 01865 204000
Jeremy Wilson, Group Controller Electrocomponents plc 01865 204000
Diana Soltmann Flagship Consulting Ltd 0207 886 8440
This statement is published on the corporate website at
www.electrocomponents.com
INTRODUCTION
The European Union has approved the application of International Financial
Reporting Standards (IFRS) for listed companies for periods beginning on or
after 1 January 2005. For Electrocomponents, the financial statements for the
year ended 31 March 2006 will be the first to be prepared in accordance with
IFRS. In those financial statements, the results for the comparative year
(ending 31 March 2005) will be restated. This report shows the impact of this
restatement and explains the primary differences.
The financial information presented in this statement has been prepared by
applying all IFRS that have been published to date that are applicable to the
Group, including International Accounting Standards (IAS) and interpretations
issued by the International Accounting Standards Board (IASB) and its
committees. These are subject to amendment by the IASB and subsequent
endorsement by the European Commission and are therefore subject to possible
change. This could result in the need to change the basis of accounting or
presentation of certain financial information from that presented in this
announcement. It is possible, therefore, that further changes will be required
before final comparative information for the year ending 31 March 2006 is
published. The financial information presented now is unaudited.
BASIS OF ACCOUNTING
First time adoption of IFRS (IFRS 1)
This Standard has been issued to assist the first time adoption of IFRS. The
Standard allows alternative treatments for certain areas of the financial
statements during the initial transition period:
Business combinations
The Group has made the elective exemption that allows goodwill in respect of
acquisitions made prior to 1 April 2004 to remain as stated under UK GAAP.
Employee benefits
IFRS requires that a balance sheet asset or liability must be shown in respect
of defined benefit pension schemes. Actuarial gains and losses arise when the
actual returns on scheme assets differ from those initially expected by the
actuary. The Group will adopt the exemption in IFRS 1 allowing all actuarial
gains and losses arising before 1 April 2004 to be shown in the opening balance
sheet at 1 April 2004. In the future, actuarial gains and losses will be
included in the Statement of Recognised Income and Expense.
Cumulative translation differences
In the Group financial statements the results of overseas subsidiaries are
translated into Sterling at the average exchange rate. The balance sheet is
translated at the closing rate. This leads to exchange gains and losses being
generated on consolidation. IFRS requires translation differences on the
revaluation of the assets and liabilities of overseas subsidiaries to be taken
directly to reserves. On the disposal of an overseas entity, exchange
differences previously taken to reserves will be transferred to the income
statement as part of the profit/loss on disposal of that entity.
The elective exemption in IFRS 1 means that any translation differences prior to
the date of transition (1 April 2004) do not need to be analysed retrospectively
and so the deemed cumulative translation differences at this date can be set to
£nil. Thus, any cumulative translation differences arising prior to the date of
transition are excluded from any future profit/loss on disposal of any entities.
The Group will adopt this exemption.
Share-based payment (IFRS 2)
The Group has chosen to adopt the exemption whereby IFRS 2, Share-Based Payment,
is applied only to awards made after 7 November 2002.
Financial instruments (IAS 32 and 39)
The Group has chosen to adopt the exemption delaying the implementation of IAS
32, Financial Instruments: Disclosure and Presentation, and IAS 39, Financial
Instruments: Recognition and Measurement. These will be first applied in the
year ending 31 March 2006.
Presentation of financial information
The primary statements within the financial information contained in this
document have been presented in accordance with IAS 1, Presentation of Financial
Statements.
Segmentation
Under IAS 14, Segment Reporting, the Group's existing geographical segments
reported under UK GAAP will remain the primary reported segments.
EXPLANATION OF IFRS ADJUSTMENTS
The following paragraphs explain the key adjustments made to the financial
results for the year ended 31 March 2005, in order to reflect IFRS.
Share based payments (IFRS 2)
IFRS 2 requires that the fair value of share options be charged to the income
statement over the vesting period of the options. For Electrocomponents, these
are mainly the Savings Related Share Option Scheme (SAYE) and the Long Term
Incentive Option Scheme (LTIOS).
The fair value is assessed at the date of grant of the options and then charged
to the income statement over the vesting period. Fair values per share have been
calculated for options granted since 7 November 2002. These have then been
charged to the income statement over their respective vesting periods. The
charge for these share-based payments was £2.4m in the 2005 IFRS accounts. This
charge included the Long Term Incentive Option Scheme options issued in July
2003 and July 2004. The charge for the year ended 31 March 2006 will also
include the impact of the options issued in July 2005.
The fair values are calculated using an appropriate option pricing model. The
income statement charge is then adjusted to reflect expected and actual levels
of vesting based on non-market performance criteria. The Group's SAYE scheme has
been valued using a Black-Scholes model and the income statement charge has been
adjusted for forfeitures caused by employees failing to maintain either their
employment or the required savings. The Group's LTIOS scheme includes
performance criteria based on the Group's total shareholder return performance
relative to a group of 13 comparable companies. The fair value of the LTIOS
schemes has been calculated using a Monte Carlo model and the income statement
charge has been adjusted for options forfeited by employees leaving the Group.
The International Financial Reporting Interpretations Committee (IFRIC) is
considering the application of IFRS 2 and its findings could lead to a change in
reporting under this standard.
Employee benefits (IAS 19)
The Standard splits employee benefits into long term and short term.
Long term
The primary long term employee benefits are pensions, which were accounted for
under SSAP 24 with accompanying disclosures prepared using FRS 17. Under SSAP
24, the cost of providing benefits was charged against the operating profit over
the period during which the Group expected to benefit from the employees'
services. The application of SSAP 24 resulted in a prepayment of £4.1m as at 31
March 2005, and this asset is reversed as a result of the adoption of IAS 19.
The IAS 19 approach is similar to FRS 17. In summary, IAS 19 requires that the
Group's pension deficits be recorded as balance sheet liabilities. The Group has
elected to adopt the amendment to IAS 19, which allows the impact of changes in
the value of the deficits to be recorded in the Statement of Recognised Income
and Expenses rather than the income statement. Annual charges to the income
statement will comprise a service cost and a finance cost. The following is a
table summarising the main impacts of IAS 19, FRS 17 and SSAP 24 with regard to
the pension schemes.
Defined benefit schemes Profit and loss account
Year ended 31 March 2005
IAS 19 FRS 17 SSAP 24
£m £m £m
UK 9.8 9.8 8.1
Germany and Ireland 0.8 0.8 0.4
Pre-tax cost 10.6 10.6 8.5
Under SSAP 24, there was a cost of £8.5m in the income statement for the year
ended 31 March 2005. Under IAS 19, this cost would have been £10.6m.
Defined benefit schemes Balance sheet
31 March 2005
IAS 19 FRS 17
£m £m
UK -41.3 -41.3
Germany -5.3 -5.3
Ireland -0.4 -0.4
Deficit in the scheme -47.0 -47.0
Deferred tax asset 14.6 14.6
Net pension liability -32.4 -32.4
The deficit on the balance sheet under IAS 19 reduced net assets by £32.4m, net
of £14.6m of deferred tax. There was a corresponding reduction in equity.
Finally, creditors of £2.9m, under UK GAAP, relating to long term employee
benefits are now disclosed as part of retirement benefit obligations.
Short term
The requirement of IAS 19 is that when an employee has rendered service to an
enterprise, the enterprise should recognise the undiscounted amount of the short
term benefits expected to be paid in exchange for that service as either a
liability or an expense.
If an employee is allowed to be away from work (either on holiday or sick) for a
certain number of days per year, but does not take that time off, then the
employee has given a greater number of days work to the enterprise than he or
she has been paid for. The enterprise must then accrue for that extra work done.
Consequently the Group has now included an accrual for accumulating holiday pay
and sick pay where relevant. The accrual at 1 April 2005 is £3.7m and the income
statement charge for the year ending 31 March 2005 is £nil.
It is noted that IAS 19 (revised), and hence the accounting treatment detailed
in this section, is still subject to endorsement by the European Union and could
still change. IFRIC is considering the application of IAS 19 and its findings
could also lead to a change in reporting under this standard.
Business combinations and goodwill (IFRS 3)
A business combination occurs when one entity gains control of another. The
acquired assets and liabilities should be stated at fair value in the books of
the acquirer (if appropriate) or in the Group accounts. The excess of the
purchase price over the cost is classified as goodwill on the face of the
balance sheet in the Group accounts. Goodwill should not be amortised but should
be reviewed, at least annually, for impairment and carried in the balance sheet
at cost less any accumulated impairment losses. For goodwill already in
existence at the transition date to IFRS the goodwill amortisation already
recognised will not be adjusted. The impact on the income statement for the year
ending 31 March 2005 is that goodwill amortisation of £9.4m that was previously
charged is now removed.
Events after the balance sheet date (IAS 10)
Under IAS 10, dividends declared after the balance sheet date should not be
accrued. This is a change from the current treatment under UK GAAP. This means
that each dividend will be charged in the period in which it is approved rather
than in the period to which it relates.
Income taxes (IAS 12)
Under UK GAAP deferred tax was provided on the basis of timing differences
between accounting profit and taxable profit. IAS 12 requires that deferred
taxation is based on temporary differences between the carrying value of an
asset or liability and its tax base.
The impact of IFRS on the total tax charge to the Group's Income Statement for
the year ended 31 March 2005 is an increase of £2.0m to £32.3m. This increases
the effective tax rate from 31.9% of profit before tax (PBT) (29% of profit
before tax and goodwill) to 32.3% of PBT for the year.
Tax charge PBT&G % of PBT&G
£m £m %
Total tax charge under UK GAAP 30.3 104.4 29.0%
Tax charge PBT % of PBT
£m £m %
Total tax charge under UK GAAP 30.3 95.0 31.9%
Increase in deferred tax charge on goodwill 3.4
Increase in deferred tax credit on employee benefits -0.6
Increase in deferred tax credit on share based payments -0.8
Total tax charge under IFRS 32.3 99.9 32.3%
The deferred tax liability on goodwill increases as the Group continues to
receive a US tax deduction for amortisation but no longer amortises the goodwill
through the income statement. Therefore the temporary difference between the
accounts value of goodwill and the tax value of goodwill increases by £3.4m. The
increased asset on employee benefits relates largely to the IFRS 2 share scheme
charge to the income statement, where the share scheme costs are not tax
deductible until incurred.
The impact of IFRS on deferred tax in the balance sheet is as follows:
2005
£m
Net deferred tax liability at 31/03/05 - UK GAAP -14.3
IFRS adjustments:
Deferred tax on pension deficit 14.6
Deferred tax on other employee benefits 0.3
Increase in deferred tax charge on goodwill -3.4
Deferred tax on share based payments 1.3
Net deferred tax liability at 31/03/05 - IFRS -1.5
Represented by:
Deferred tax asset at 31/03/05 17.6
Deferred tax liability at 31/03/05 -19.1
Intangible assets (IAS 38)
Under IFRS, computer software is treated as an intangible asset 'when the
software is not an integral part of the related hardware'. This means
application software costs that have been capitalised as tangible fixed assets
must now be reclassified as intangible assets.
The value of the reclassification of assets from tangible to intangible assets
was £53.0m at 31 March 2005. The major element of these reclassified assets
relates to the Enterprise Business System project. There is no income statement
impact as the software will continue to be written off over its remaining useful
life.
Cash and cash equivalents (IAS 7)
Under IAS 7 (Cash flow statements), for an investment to qualify as a cash
equivalent, it must be readily convertible to a known amount of cash. Therefore,
an investment normally only qualifies as cash when it has a maturity of 3 months
or less from the date of acquisition.
The Group has reclassified deposits with a maturity of less than 3 months from '
current asset investments' to 'cash and cash equivalents'. The overall impact is
to reclassify £53.6m from investments to cash at 31 March 2005.
Leases (IAS 17)
IAS 17 does not normally permit the disclosure of land as a finance lease.
Therefore, land and buildings, currently held on the balance sheet under finance
leases, are required to be split to determine how much relates to land and how
much to buildings so that the land element can be reclassified to operating
leases. The Group has two such leases and therefore, £1.8m has been reclassified
from finance leases to operating leases.
Other changes
There are a number of other minor changes. These have no material effect on
either reported profits or net assets.
DISTRIBUTABLE RESERVES
The Company has considerable distributable reserves under both UK GAAP and IFRS.
CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2005
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m
Revenue 773.9 773.9
Cost of sales -361.8 -361.8
Gross profit 412.1 0.0 0.0 0.0 412.1
Distribution and marketing expenses -298.8 -2.4 -2.1 -303.3
Operating expenses -17.4 9.4 -8.0
Operating profit 95.9 -2.4 -2.1 9.4 100.8
Financial income 3.6 3.6
Financial expenses -4.5 -4.5
Net financing costs -0.9 0.0 0.0 0.0 -0.9
Profit before tax 95.0 -2.4 -2.1 9.4 99.9
Income tax expense -30.3 0.8 0.6 -3.4 -32.3
Profit for the year attributable to shareholders 64.7 -1.6 -1.5 6.0 67.6
Earnings per share
Basic 14.9p -0.4p -0.4p 1.4p 15.5p
Diluted 14.9p 15.5p
CONSOLIDATED INCOME STATEMENT
For the half year ended 30 September 2004
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m
Revenue 379.5 379.5
Operating profit 46.8 -1.0 -0.9 4.8 49.7
Net financing costs -0.1 -0.1
Profit before tax 46.7 -1.0 -0.9 4.8 49.6
Income tax expense -14.9 0.8 0.3 -1.7 -15.5
Profit for the period attributable to shareholders 31.8 -0.2 -0.6 3.1 34.1
Earnings per share 7.3p 7.8p
Basic
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the year ended 31 March 2005
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m
Foreign exchange translation differences 1.6 -0.1 1.5
Actuarial gain on defined benefit pension schemes 0.5 0.5
Tax on items taken directly to equity -0.2 -0.2
Net income recognised directly in equity 1.6 0.0 0.3 -0.1 1.8
Profit for the year 64.7 -1.6 -1.5 6.0 67.6
Total recognised income and expense for the year 66.3 -1.6 -1.2 5.9 69.4
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
For the half year ended 30 September 2004
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m
Foreign exchange translation differences 5.7 0.1 5.8
Actuarial gain on defined benefit pension schemes 0.0
Tax on items taken directly to equity 0.0
Net income recognised directly in equity 5.7 0.0 0.0 0.1 5.8
Profit for the period 31.8 -0.2 -0.6 3.1 34.1
Total recognised income and expense for the period 37.5 -0.2 -0.6 3.2 39.9
CONSOLIDATED BALANCE SHEET
As at 31 March 2005
IFRS adjustments
Share based Employee
payments benefits Goodwill Dividend Other IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m £m £m
Non-current assets
Intangible assets 129.6 9.4 52.9 191.9
Property, plant and equipment 165.8 -54.9 110.9
Investments 0.2 0.2
Trade and other receivables -4.1 6.9 2.8
falling due after more than one
year
Deferred tax asset 17.6 17.6
295.6 0.0 -4.1 9.4 0.0 22.5 323.4
Current assets
Inventories 142.3 142.3
Trade and other receivables 152.4 -7.3 145.1
Investments 53.6 -53.6 0.0
Income tax receivables 2.2 2.2
Cash and cash equivalents 11.2 53.6 64.8
359.5 0.0 0.0 0.0 0.0 -5.1 354.4
Current liabilities
Trade and other payables -207.0 -3.7 54.8 46.4 -109.5
Loans and borrowings -27.7 -27.7
Tax liabilities -18.7 -18.7
Net current assets 152.5 0.0 -3.7 0.0 54.8 -5.1 198.5
Total assets less current 448.1 0.0 -7.8 9.4 54.8 17.4 521.9
liabilities
Non-current liabilities
Trade and other payables -103.1 2.9 92.6 -7.6
falling due after more than one
year
Retirement benefit obligations -47.0 -47.0
Loans and borrowings -92.5 -92.5
Deferred tax liability -14.3 1.3 14.9 -3.4 -17.6 -19.1
Net assets 330.7 1.3 -37.0 6.0 54.8 -0.1 355.7
Equity
Called-up share capital 43.5 43.5
Share premium account 38.4 38.4
Retained earnings 248.8 1.3 -37.0 6.0 54.8 -0.1 273.8
Equity attributable to the 330.7 1.3 -37.0 6.0 54.8 -0.1 355.7
shareholders of the parent
CONSOLIDATED BALANCE SHEET
As at 30 September 2004
IFRS adjustments
Share based Employee
payments benefits Goodwill Dividend Other IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m £m £m
Non-current assets
Intangible assets 140.1 4.8 44.2 189.1
Property, plant and equipment 165.6 -46.1 119.5
Investments 0.1 0.1
Trade and other receivables -2.8 5.5 2.7
falling due after more than one
year
Deferred tax asset 25.2 25.2
305.8 0.0 -2.8 4.8 0.0 28.8 336.6
Current assets
Inventories 139.6 139.6
Trade and other receivables 144.1 -4.1 140.0
Investments 25.0 -25.0 0.0
Income tax receivables 0.5 0.5
Cash and cash equivalents 24.9 25.0 49.9
333.6 0.0 0.0 0.0 0.0 -3.6 330.0
Current liabilities
Trade and other payables -171.7 -3.7 25.2 46.0 -104.2
Loans and borrowings -28.2 -28.2
Tax liabilities -17.8 -17.8
Net current assets 161.9 0.0 -3.7 0.0 25.2 -3.6 179.8
Total assets less current 467.7 0.0 -6.5 4.8 25.2 25.2 516.4
liabilities
Non-current liabilities
Trade and other payables -97.5 2.8 82.9 -11.8
falling due after more than one
year
Retirement benefit obligations -47.5 -47.5
Loans and borrowings -82.9 -82.9
Deferred tax liability -13.5 1.3 15.0 -1.7 -25.3 -24.2
Net assets 356.7 1.3 -36.2 3.1 25.2 -0.1 350.0
Equity
Called-up share capital 43.5 43.5
Share premium account 38.4 38.4
Retained earnings 274.8 1.3 -36.2 3.1 25.2 -0.1 268.1
Equity attributable to the 356.7 1.3 -36.2 3.1 25.2 -0.1 350.0
shareholders of the parent
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2005
IFRS adjustments
Share based Employee
payments benefits Goodwill Other IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)(unaudited)
£m £m £m £m £m £m
Cash flows from operating activities
Operating profit 95.9 -2.4 -2.1 9.4 100.8
Amortisation of goodwill 9.4 -9.4 0.0
Depreciation and other amortisation 22.3 -0.1 22.2
Employee share options 2.4 2.4
Increase in inventories -13.6 -13.6
Decrease in trade and other receivables 6.2 3.0 0.1 9.3
Decrease in trade and other payables -2.8 -0.9 -3.7
Cash generated from operations 117.4 0.0 0.0 0.0 0.0 117.4
Net interest payable -1.3 -1.3
Income tax expense -31.2 -31.2
Operating cash flow 84.9 0.0 0.0 0.0 0.0 84.9
Cash flows from investing activities
Capital expenditure and financial -24.6 -24.6
investment
Proceeds from sale of tangible fixed assets 0.8 0.8
Receipt of capital grant 0.0
Dividends received 0.0
Net cash used in investing activities -23.8 0.0 0.0 0.0 0.0 -23.8
Free cash flow 61.1 0.0 0.0 0.0 0.0 61.1
Cash flows from financing activities
Proceeds from the issue of share capital 0.0 0.0
New bank loans 35.0 35.0
Repayment of bank loans -20.8 -20.8
Equity dividends paid -80.0 -80.0
Net cash used in financing activities -65.8 0.0 0.0 0.0 0.0 -65.8
Net decrease in cash and cash equivalents -4.7 0.0 0.0 0.0 0.0 -4.7
Cash and cash equivalents at the beginning 72.6 72.6
of the year
Effect of exchange rates in cash -5.3 -5.3
Cash and cash equivalents at the end of the 62.6 0.0 0.0 0.0 0.0 62.6
year
CONSOLIDATED CASH FLOW STATEMENT
For the half year ended 30 September 2004
IFRS adjustments
Share based Employee
payments benefits Goodwill Other IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m £m
Cash flows from operating activities
Operating profit 46.8 -1.0 -0.9 4.8 49.7
Amortisation of goodwill 4.8 -4.8 0.0
Depreciation and other amortisation 10.9 10.9
Employee share options 1.0 1.0
Increase in inventories -9.8 -9.8
Decrease in trade and other receivables 5.9 5.9
Decrease in trade and other payables -2.2 0.9 -1.3
Cash generated from operations 56.4 0.0 0.0 0.0 0.0 56.4
Net interest payable -0.1 -0.1
Income tax expense -15.8 -15.8
Operating cash flow 40.5 0.0 0.0 0.0 0.0 40.5
Cash flows from investing activities
Capital expenditure and financial -12.2 -12.2
investment
Proceeds from sale of tangible fixed assets 0.0
Receipt of capital grant 0.0
Dividends received 0.0
Net cash used in investing activities -12.2 0.0 0.0 0.0 0.0 -12.2
Free cash flow 28.3 0.0 0.0 0.0 0.0 28.3
Cash flows from financing activities
Proceeds from the issue of share capital 0.0 0.0
New bank loans 2.7 2.7
Repayment of bank loans 0.0 0.0
Equity dividends paid -54.8 -54.8
Net cash used in financing activities -52.1 0.0 0.0 0.0 0.0 -52.1
Net decrease in cash and cash equivalents -23.8 0.0 0.0 0.0 0.0 -23.8
Cash and cash equivalents at the beginning 72.6 72.6
of the period
Effect of exchange rates in cash 0.4 0.4
Cash and cash equivalents at the end of the 49.2 0.0 0.0 0.0 0.0 49.2
period
SEGMENTAL PROFIT BEFORE TAX
For the year ended 31 March 2005
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited)(unaudited)
£m £m £m £m £m
United Kingdom 107.5 -1.3 -0.5 105.7
Rest of Europe 56.0 -0.2 -0.3 55.5
North America 15.8 -0.1 15.7
Japan 1.5 1.5
Rest of World 4.0 4.0
Contribution 184.8 -1.6 -0.8 0.0 182.4
Groupwide process costs -79.5 -0.8 -1.3 -81.6
Amortisation of goodwill - Allied (North America) -9.2 9.2 0.0
Amortisation of goodwill - RS Norway (Rest of Europe) -0.2 0.2 0.0
Net interest payable -0.9 -0.9
Profit before tax 95.0 -2.4 -2.1 9.4 99.9
SEGMENTAL PROFIT BEFORE TAX
For the half year ended 30 September 2004
IFRS adjustments
Share based Employee
payments benefits Goodwill IFRS
UK GAAP (unaudited) (unaudited) (unaudited) (unaudited)
£m £m £m £m £m
United Kingdom 54.8 -0.5 -0.6 53.7
Rest of Europe 25.0 -0.1 -0.3 24.6
North America 7.5 7.5
Japan 0.6 0.6
Rest of World 1.8 1.8
Contribution 89.7 -0.6 -0.9 0.0 88.2
Groupwide process costs -38.1 -0.4 -38.5
Amortisation of goodwill - Allied (North America) -4.7 4.7 0.0
Amortisation of goodwill - RS Norway (Rest of Europe) -0.1 0.1 0.0
Net interest payable -0.1 -0.1
Profit before tax 46.7 -1.0 -0.9 4.8 49.6
Safe Harbour: This announcement contains certain statements, statistics and
projections that are or may be forward-looking. The accuracy and completeness of
all such statements, including, without limitation, statements regarding the
future financial position, strategy, projected costs, plans and objectives for
the management of future operations of Electrocomponents plc and its
subsidiaries is not warranted or guaranteed. These statements typically contain
words such as 'intends', 'expects', 'anticipates', 'estimates' and words of
similar import. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will
occur in the future. Although Electrocomponents plc believes that the
expectations reflected in such statements are reasonable, no assurance can be
given that such expectations will prove to be correct. There are a number of
factors, which may be beyond the control of Electrocomponents plc, which could
cause actual results and developments to differ materially from those expressed
or implied by such forward-looking statements. Other than as required by
applicable law or the applicable rules of any exchange on which our securities
may be listed, Electrocomponents plc has no intention or obligation to update
forward-looking statements contained herein.
This information is provided by RNS
The company news service from the London Stock Exchange
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