Spirax-Sarco Engineering PLC
12 July 2005
Spirax-Sarco Engineering plc Charlton House
Cheltenham
Glos. GL53 8ER
News Release Telephone: 01242 521361
Fax: 01242 581470
www.SpiraxSarcoEngineering.com
12th July 2005
Restatement of primary financial information for 2004 under International
Financial Reporting Standards
Spirax-Sarco Engineering plc and its subsidiaries (the Group) has for the
accounting periods up to 31st December 2004 prepared its consolidated financial
statements under UK Generally Accepted Accounting Principles (UK GAAP). From
1st January 2005, the Group is required by European Directives to report its
consolidated financial statements under International Financial Reporting
Standards (IFRS).
As part of this transition, the Group is presenting a restatement of its 2004
results under IFRS. This will form the comparative to the 2005 Interim Report
and the 2005 Annual Report.
A summary of the effect of the restatement follows:-
Year ended 31st December 2004
Change in Change in
UK Minorities Pensions (IAS 19) Other IFRS
GAAP (IAS 27) £m Changes IFRS
£m £m £m £m
Revenue 325.8 (9.8) nil nil 316.0
Operating profit 51.1 (2.5) (1.0) 0.4 48.0
Profit before tax 50.8 (1.8) (0.7) 0.4 48.7
Basic EPS (p) 43.4p nil (0.9p) 0.6p 43.1p
Net assets attributable to
shareholders 178.0 nil (27.0) 13.0 164.0
Six months ended 30th June 2004
Change in Change in
UK Minorities Pensions (IAS 19) Other IFRS
GAAP (IAS 27) £m Changes IFRS
£m £m £m £m
Revenue 157.7 (4.8) nil nil 152.9
Operating profit 23.4 (1.1) (0.4) 0.2 22.1
Profit before tax 23.1 (0.8) (0.3) 0.2 22.2
Basic EPS (p) 19.6p nil (0.4p) 0.5p 19.7p
Net assets attributable to
shareholders 168.5 nil (30.7) 5.7 143.5
The principal changes from the transition to IFRS are:
Change in minorities
• Reassessing control in minority interests resulting in a change in the
treatment of the Group's investments in India and Mexico on consolidation
from subsidiary companies to associate companies. Although there is a
reduction in 2004 sales of £9.8 million and in pre-tax profit of £1.8
million, there is no change in EPS or net assets attributable to
shareholders.
Change in pensions
• Recognising the deficit on defined benefit pension schemes on the balance
sheet and the higher income statement charge for pensions under IAS 19.
For the 2004 year £27.0 million of additional balance sheet net liabilities
have been recognised and the income statement charge (before tax) increases
by £0.7 million.
Other IFRS changes
• Recording the cost of share options awarded to employees on a fair value
basis. The 2004 income statement charge (before tax) increases by £0.4
million.
• Ceasing goodwill amortisation (subject to annual impairment testing). The
2004 income statement reflects the reversal of the £0.7 million charge
under UK GAAP.
• Not accruing a liability for dividends that have not been declared or
approved at the balance sheet date. Shareholders funds increase by £11.4
million at 31st December 2004.
• Capitalisation of the development element of R&D expenditure under certain
circumstances. Net intangible assets increase by £2.5 million (before tax
effects) at 31st December 2004. Changes to the income statement are
immaterial.
• Providing deferred tax on property revaluations. This results in the
creation of a £1.8 million deferred tax liability at 31st December 2004.
The effect of the adoption of IFRS in respect of the Group's 2004 financial
statements is set out in detail in a report that can be downloaded from the
company's website at www.SpiraxSarcoEngineering.com. Alternatively copies can
be obtained from the Company Secretary at Charlton House, Cheltenham, Glos. GL53
8ER.
The Group intends to announce the interim results for the six months ended 30th
June 2005 on Tuesday 6th September 2005.
Enquiries:
Marcus Steel - Chief Executive
David Meredith - Director Finance
Tel: 01242 521361
Fax: 01242 581470
www.SpiraxSarcoEngineering.com
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.