IFRS Statement
Wilmington Group Plc
09 November 2005
9 November 2005
WILMINGTON GROUP PLC
UPDATE ON ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Wilmington Group plc is preparing for the adoption of International Financial
Reporting Standards ('IFRS') as its primary accounting basis for the year ending
30 June 2006. As part of this transition, Wilmington Group is today presenting
unaudited financial information prepared in accordance with IFRS for the year
ended 30 June 2005 and for the six months ended 31 December 2004.
The principal changes to Wilmington Group's reported financial information under
UK GAAP arising from the adoption of IFRS are as a result of the:
• requirement not to amortise goodwill;
• recognition of all employee benefit related assets and obligations,
principally pensions and share options;
• recognition of deferred tax liabilities on a different basis.
Basil Brookes, Financial Director of Wilmington Group, commented:
'The unaudited financial information provided today shows how IFRS impacts
Wilmington Group's recent results in advance of its adoption in the 2006
financial year. The most significant change is that Wilmington Group will no
longer amortise goodwill, resulting in a clearer presentation of underlying
business performance. For the year ended 30 June 2005 the expected impact of the
adoption of IFRS would have been to increase profit attributable to equity
shareholders by £3,476k comprising principally a credit of £2,551k in relation
to the cessation of goodwill amortisation and a credit of £925k in relation to
deferred tax adjustments. Net assets at 30 June 2005 would have increased from
£57.6 million to £59.5 million.'
Enquiries:
Charles Brady, Chief Executive
Basil Brookes, Finance Director
Wilmington Group plc Tel: 020 7422 6800
Nick Oborne / Kirsty Raper / Yvonne Alexander
Weber Shandwick Tel: 020 7067 0700
INTRODUCTION:
Wilmington Group plc and its subsidiaries (together 'the Group') are preparing
for the adoption of International Financial Reporting Standards ('IFRS') as its
primary accounting basis in its consolidated accounts, following the adoption of
Regulation No. 1606/2002 by the European Parliament on 19 July 2002.
This press release explains how the Group's previously reported UK GAAP
financial performance and position are reported under IFRS. It provides, on an
IFRS basis, reconciliations from UK GAAP to IFRS for the following:
• the Group's unaudited consolidated income statement for the year ended
30 June 2005;
• the Group's unaudited consolidated balance sheet at 30 June 2005;
• the Group's unaudited consolidated cash flow statement for the year
ended 30 June 2005;
• the Group's unaudited consolidated balance sheet at 1 July 2004
• the Group's unaudited consolidated income statement for the six months
ended 31 December 2004;
• the Group's unaudited consolidated balance sheet at 31 December 2004; and
• the Group's unaudited consolidated cash flow statement for the six months
ended 31 December 2004
The consolidated opening balance sheet as at 1 July 2004, consolidated
balance sheets as at 31 December 2004 and 30 June 2005, and the
consolidated income statements for the six months ended 31 December 2004
and year ended 30 June 2005, are prepared on the basis set out in 'Basis
of preparation' below.
Attention is drawn to the fact that under IFRS, only a complete set of
financial statements comprising a balance sheet, income statement, statement
of changes in equity, cash flow statement, together with comparative
information and explanatory notes, can provide a fair presentation of the
company's financial position, results of operations and cash flows.
The financial information contained herein has been prepared by management using
their best knowledge and judgement of the expected standards and interpretations
of the IASB, facts and circumstances, and accounting policies that will be
applied when the company prepares its first complete set of IFRS financial
statements as at 30 June 2006. The Group's financial results for the six month
period ending 31 December 2005 will be prepared under IFRS.
Therefore until such time the possibility cannot be excluded that the
comparative information included in that first complete set of IFRS financial
statements may not be consistent with disclosure below.
The financial information presented is unaudited and does not represent the
company's statutory accounts within the meaning of section 240 of the Companies
Act 1985. The statutory accounts for the year ended 30 June 2005 have been
reported on by the company's auditors and will be delivered to the Registrar of
Companies in due course. The report of the auditors on such accounts was
unqualified and did not contain any statement under sections 237(2) or 237(3) of
the Companies Act 1985.
BASIS OF PREPARATION
The financial information presented in this document has been prepared on the
basis of all International Financial Reporting Standards ('IFRS'), including
International Accounting Standards ('IAS') and interpretations issued by the
International Accounting Standards Board ('IASB') and its committees, and as
interpreted by any regulatory bodies applicable to the Group. These are subject
to ongoing amendment by the IASB and subsequent endorsement by the European
Commission and are therefore subject to possible change. As a result,
information contained within this release will require updating for any
subsequent amendment to IFRS required for first time adoption or those new
standards that the Group may elect to adopt early.
1. IFRS 1 exemptions
IFRS 1, 'First-time Adoption of International Financial Reporting Standards'
sets out the procedures that the Group must follow when it adopts IFRS for the
first time as the basis for preparing its consolidated financial statements. The
Group is required to establish its IFRS accounting policies as at 30 June 2005
and, in general, apply these retrospectively to determine the IFRS opening
balance sheet at its date of transition, 1 July 2004.
This standard provides a number of optional exceptions to this general
principle. The most significant of these are set out below, together with a
description in each case of the exception adopted by the Group.
a. Business combinations that occurred before the opening IFRS balance sheet
date (IFRS 3, 'Business Combinations').
The Group has elected not to apply IFRS 3 retrospectively to business
combinations prior to 1 July 2004.
b. Employee Benefits - actuarial gains and losses (IAS 19, 'Employee Benefits')
The cumulative net deficit on defined benefit pension schemes and similar
benefits at the transition date has been recognised in full in equity.
c. Share-based Payments (IFRS 2, 'Share-based Payment')
IFRS 2 has been applied to all grants of equity instruments after 7 November
2002 that had not vested at 1 July 2005.
d. Foreign Currency Translation differences (IAS 21, 'The effects of changes in
foreign exchange rates')
The Group has taken advantage of the IFRS 1 exemption allowing the cumulative
translation difference on retranslation of subsidiaries' net assets to be set to
zero (for all subsidiaries) at the date of transition to IFRS.
2. 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'. However, this format and presentation may require
modification in the event that further guidance is issued and as practice
develops.
KEY IMPACT ANALYSIS
The analysis below sets out the most significant adjustments arising from the
transition to IFRS for the year ended 30 June 2005. Similar adjustments arise
from the transition to IFRS for the six months ended 31 December 2004.
1) Presentation of Financial Statements
The format of the Group's primary financial statements has been presented in
accordance with IAS 1, 'Presentation of Financial Statements'.
IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations' requires
the presentation of a single amount on the face of the income statement relating
to discontinued operations. The results of the Group's discontinued operations
in the year ended 30 June 2005 have been shown as a single amount in the Group's
income statement for that period.
2) Intangible Assets
(a) Goodwill and acquired intangible asset amortisation
IFRS 3 'Business Combinations' requires that goodwill is not amortised. Instead
it is subject to an annual impairment review. As the Group has elected not to
apply IFRS 3 retrospectively to business combinations prior to the opening
balance sheet date under IFRS, the UK GAAP goodwill balance at 30 June 2004
(£34.7m) has been included in the opening IFRS consolidated balance sheet and is
no longer amortised.
From 1 July 2004, business acquisitions have been accounted for in accordance
with IFRS 3, 'Business Combinations'. In the case of subsequent acquisitions of
minority interests in subsidiaries, the difference between the consideration
payable for the additional interest in the subsidiary and the minority
interest's share of the assets and liabilities reflected in the consolidated
balance sheet at the date of acquisition of the minority interest has been
treated as goodwill.
(b) Computer software
Under UK GAAP, all capitalised computer software is included within tangible
fixed assets on the balance sheet. Under IFRS, only computer software that is
integral to a related item of hardware should be included as property, plant and
equipment. All other computer software should be recorded as an intangible
asset. Accordingly, a reclassification has been made in the opening balance
sheet of £0.3m between property, plant and equipment and intangible assets.
3) Deferred and Current Taxes
The scope of IAS 12, 'Income Taxes' is wider than the corresponding UK GAAP
standards, and requires deferred tax to be provided on all temporary differences
rather than just timing differences under UK GAAP. In particular this has
resulted in deferred tax assets and liabilities being set up in respect of
differences between the accounts net book value and tax base cost of intangible
assets.
It also does not allow the deferred tax liability to be discounted which was the
Group's policy under UK GAAP.
IAS 12 also requires deferred tax to be provided in respect of the Group's
liabilities under its post employment benefit arrangements and on other employee
benefits such as share and share option schemes. The tax impact of these and
other IFRS adjustments is quantified in the relevant section of this release.
4) Share-based Payments
IFRS 2, 'Share-based Payment' requires that an expense for equity instruments
granted be recognised in the financial statements based on their fair value at
the date of grant. This expense which is in relation to employee option and
performance share schemes is recognised over the vesting period of the scheme.
IFRS 2 has been applied to all options granted after 7 November 2002 and not
fully vested by 1 July 2005.
The Group has adopted the Black Scholes model for the purposes of computing fair
value under IFRS.
5) Post Employment Benefits
The Group currently applies the provisions of SSAP 24 under UK GAAP and provides
detailed disclosure under FRS 17 in accounting for pensions and other
post-employment benefits.
The Group's opening IFRS balance sheet reflects the assets less liabilities of
the Group's defined benefit schemes totalling a net liability of £0.5m. The
transitional adjustment of £0.5m to opening reserves comprises the reversal of
entries in relation to UK GAAP accounting under SSAP 24 less the recognition of
the net liabilities of the Group's defined benefit schemes. The impact on the
Group's income statement arising from the adoption of the IAS 19 is a charge of
£20k. A related tax credit of £6k was recognised for the year ended 30 June
2005. A movement of £120k in respect of actuarial gains has been recognised as a
change in equity for the year ended 30 June 2005.
6) Foreign Exchange Differences
Under IAS 21, net exchange differences classified as equity must be separately
tracked and the cumulative amounts disclosed. SSAP 20 does not require separate
tracking.
7) Holiday Pay
Under IAS 19, accruals for holiday pay should be made.
8) Post Balance Sheet Events
IAS 10, 'Events after the Balance Sheet Date' requires that dividends declared
after the balance sheet date should not be recognised as a liability at that
balance sheet date as the liability does not represent a present obligation as
defined by IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets'.
The final dividends proposed in relation to the financial years ended 30 June
2004 and 30 June 2005 (including those payable to minority shareholders in
subsidiaries) of £1.7m and £2.2m respectively have been reversed in the relevant
balance sheets and have been or will be charged to equity in the balance sheets
at 30 June 2005 and 30 June 2006.
Wilmington Group plc
Reconciliation of UK GAAP consolidated profit and loss account to IFRS
consolidated income statement for the year ended 30 June 2005
IFRS2
UK GAAP IFRS 5 IAS 38 IFRS3 Share IAS19 IAS12 IAS19
IFRS format Discontinued Intangible Business Based Employee Deferred Holiday IFRS
(unaudited) Operations Assets Combinations Payments Benefits Tax pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 85,080 (4,384) - - - - - - 80,696
Cost of sales (28,471) 925 - - - - - - (27,546)
--------------------------------------------------------------------------------------------------
Gross profit 56,609 (3,459) - - - - - - 53,150
Administration
expenses (44,555) 3,379 173 - (34) (16) - (33) (41,086)
Amortisation
and impairment (6,138) 142 (115) 2,551 - - - - (3,560)
--------------------------------------------------------------------------------------------------
Profit from
operations 5,916 62 58 2,551 (34) (16) - (33) 8,504
Finance costs (892) - - - - (4) - - (896)
--------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
taxation 5,024 62 58 2,551 (34) (20) - (33) 7,608
Tax on profit
on ordinary
activities (3,307) 24 - - 13 6 925 10 (2,329)
--------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
after taxation 1,717 86 58 2,551 (21) (14) 925 (23) 5,279
Loss on
discontinued
operations
after taxation - (86) - - - - - - (86)
--------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
after taxation 1,717 - 58 2,551 (21) (14) 925 (23) 5,193
--------------------------------------------------------------------------------------------------
Attributable
to Equity
holders of the
parent 1,004 - 58 2,551 (21) (14) 925 (23) 4,480
--------------------------------------------------------------------------------------------------
Minority
interest 713 - - - - - - - 713
--------------------------------------------------------------------------------------------------
Wilmington Group plc
Reconciliation of UK GAAP to IFRS consolidated balance sheet as at 30 June 2005
IFRS2
UK GAAP IAS38 IFRS3 Share IAS 19 IAS12 IAS 21 IAS 19
IFRS format Intangible Business Based Employee Deferred IAS 10 Foreign Holiday IFRS
(unaudited) assets Combinations Payments Benefits tax Dividends exchange pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Non-current
assets
Goodwill 37,413 - 4,321 - - - - - - 41,734
Other
intangible
assets 28,315 344 (1,733) - - - - - - 26,926
Property,
plant and
equipment 12,291 (461) - - - - - - - 11,830
Deferred
tax asset - - - 22 113 - - - 99 234
------------------------------------------------------------------------------------------------------
78,019 (117) 2,588 22 113 - - - 99 80,724
Current Assets
Inventories 1,557 - - - - - - - - 1,557
Trade and
other
receivables 17,803 - - - - - - - - 17,803
Cash and
cash
equivalents 1,841 - - - - - - - - 1,841
------------------------------------------------------------------------------------------------------
21,201 - - - - - - - - 21,201
------------------------------------------------------------------------------------------------------
Total Assets 99,220 (117) 2,588 22 113 - - - 99 101,925
------------------------------------------------------------------------------------------------------
Current
liabilities
Trade and
other
payables (29,556) - - - - - 2,170 - (329) (27,715)
Tax
liabilities (1,501) - - - - - - - - (1,501)
Bank
overdrafts
and loans (37) - - - - - - - - (37)
------------------------------------------------------------------------------------------------------
(31,094) - - - - - 2,170 - (329) (29,253)
------------------------------------------------------------------------------------------------------
Non-current
liabilities
Bank loans
and
overdrafts (10,000) - - - - - - - - (10,000)
Retirement
benefit
obligation - - - - (378) - - - - (378)
Deferred
tax
liability (528) - (37) - - (2,210) - - - (2,775)
------------------------------------------------------------------------------------------------------
(10,528) - (37) - (378) (2,210) - - - (13,153)
------------------------------------------------------------------------------------------------------
Total
liabilities (41,622) - (37) - (378) (2,210) 2,170 - (329) (42,406)
------------------------------------------------------------------------------------------------------
Net Assets 57,598 (117) 2,551 22 (265) (2,210) 2,170 - (230) 59,519
------------------------------------------------------------------------------------------------------
Equity
Share capital 4,180 - - - - - - - - 4,180
Share premium
account 42,658 - - - - - - - - 42,658
Capital
reserve 949 - - - - - - - - 949
Translation
reserve - - - - - - - (16) - (16)
Share option
reserve - - - 57 - - - - - 57
Retained
Earnings 7,723 (117) 2,551 (35) (265) (2,210) 2,048 16 (230) 9,481
------------------------------------------------------------------------------------------------------
Equity
Shareholders'
Funds 55,510 (117) 2,551 22 (265) (2,210) 2,048 - (230) 57,309
Minority
interests 2,088 - - - - - 122 - - 2,210
------------------------------------------------------------------------------------------------------
Total equity 57,598 (117) 2,551 22 (265) (2,210) 2,170 - (230) 59,519
------------------------------------------------------------------------------------------------------
Wilmington Group plc
Reconciliation of UK GAAP to IFRS consolidated cash flow statement for the year
ended 30 June 2005
UK GAAP
IFRS IAS38
format Intangible IFRS
(unaudited) assets (unaudited)
Note £'000 £'000 £'000
Net cash from operating activities 2 10,711 - 10,711
Investing activities
Purchase of tangible fixed assets (2,667) 353 (2,314)
Sale of tangible fixed assets 150 - 150
Purchase of subsidiary
undertakings and minority interests (8,735) - (8,735)
Sale of subsidiary undertakings 450 - 450
Purchase of goodwill and intangible assets (270) (353) (623)
----------------------------------
Net cash used in investing activities (11,072) - (11,072)
----------------------------------
Financing activities
Dividends paid (2,819) - (2,819)
Issue of ordinary shares 308 308
Repayment of loan notes (1,000) - (1,000)
Increase in long term loans 3,000 - 3,000
Decrease in bank overdrafts (455) - (455)
----------------------------------
Net cash used in financing activities (966) - (966)
----------------------------------
Net decrease in cash and cash equivalents (1,327) - (1,327)
Cash and cash equivalents at beginning of the year 2,954 - 2,954
Cash and cash equivalents acquired during the year 214 - 214
Cash and cash equivalents at end of the year 1,841 - 1,841
----------------------------------
Wilmington Group plc
Reconciliation of UK GAAP to IFRS consolidated balance sheet as at 1 July 2004
IFRS2
UK GAAP IAS 38 Share IAS19 IAS12 IAS19
IFRS format Intangible Based Employee Deferred IAS 10 Holiday IFRS
(unaudited) Assets Payments Benefits tax Dividends pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Non-current assets
Goodwill 34,681 - - - - - - 34,681
Other intangible
assets 29,772 106 - - - - - 29,878
Property, plant and
equipment 11,665 (281) - - - - - 11,384
Deferred tax asset - - 9 143 - - 89 241
----------------------------------------------------------------------------------------
76,118 (175) 9 143 - - 89 76,184
----------------------------------------------------------------------------------------
Current Assets
Inventories 1,874 - - - - - - 1,874
Trade and other
receivables 17,802 - - - - - - 17,802
Cash and cash
equivalents 2,954 - - - - - - 2,954
----------------------------------------------------------------------------------------
22,630 - - - - - - 22,630
----------------------------------------------------------------------------------------
Total Assets 98,748 (175) 9 143 - - 89 98,814
----------------------------------------------------------------------------------------
Current liabilities
Trade and other
payables (30,312) - - - - 1,746 (296) (28,862)
Tax liabilities (1,028) - - - - - - (1,028)
Bank overdrafts
and loans (492) - - - - - - (492)
----------------------------------------------------------------------------------------
(31,832) - - - - 1,746 (296) (30,382)
----------------------------------------------------------------------------------------
Non-current liabilities
Bank loans (7,000) - - - - - - (7,000)
Retirement benefit
obligation - - - (478) - - - (478)
Deferred tax
liability (604) - - - (3,136) - - (3,740)
----------------------------------------------------------------------------------------
(7,604) - - (478) (3,136) - - (11,218)
----------------------------------------------------------------------------------------
Total liabilities (39,436) - - (478) (3,136) 1,746 (296) (41,600)
----------------------------------------------------------------------------------------
Net Assets 59,312 (175) 9 (335) (3,136) 1,746 (207) 57,214
----------------------------------------------------------------------------------------
Capital and Reserves
Share capital 4,167 - - - - - - 4,167
Share premium account 42,363 - - - - - - 42,363
Capital Reserve 949 - - - - - - 949
Share option reserve - - 23 - - - - 23
Retained Earnings 9,743 (175) (14) (335) (3,136) 1,667 (207) 7,543
----------------------------------------------------------------------------------------
Equity Shareholders'
Funds 57,222 (175) 9 (335) (3,136) 1,667 (207) 55,045
Minority interests 2,090 - - - - 79 - 2,169
----------------------------------------------------------------------------------------
Total equity 59,312 (175) 9 (335) (3,136) 1,746 (207) 57,214
----------------------------------------------------------------------------------------
Wilmington Group plc
Statement of changes in equity for the year ended 30 June 2005
Share
Share Share Capital Option Translation Retained Minority
Capital Premium reserve Reserve Reserve Earnings Total Interests Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30 June 2004 4,167 42,363 949 23 - 7,543 55,045 2,169 57,214
Profit for year - - - - - 4,480 4,480 713 5,193
Exchange translation
difference - - - - (16) - (16) - (16)
Actuarial gain taken
directly to equity - - - - - 120 120 - 120
Tax on items taken
directly to equity - - - - - (35) (35) - (35)
-------------------------------------------------------------------------------------
4,167 42,363 949 23 (16) 12,108 59,594 2,882 62,476
Dividends - - - - - (2,627) (2,627) (296) (2,923)
Issue of share capital 13 295 - - - - 308 - 308
Share Option reserve - - - 34 - - 34 - 34
Acquisition of minorities
during year - - - - - - - (376) (376)
-------------------------------------------------------------------------------------
Balance at 30 June 2005 4,180 42,658 949 57 (16) 9,481 57,309 2,210 59,519
-------------------------------------------------------------------------------------
Notes to the Consolidated IFRS Statement
1. Earnings per share for the year ended 30 June 2005
UK GAAP
IFRS Format IFRS
(unaudited) (unaudited)
2005 2005
£' 000 £' 000
Profit for the financial year 1,004 4,480
Amortisation and impairment of goodwill and intangible 6,097 2,638
assets (net of minority interest and deferred tax)
Exceptional items after tax 638 638
----------------------------
Adjusted profit for the financial year 7,739 7,756
----------------------------
Number Number
Average number of ordinary shares 83,394,158 83,394,158
Exercise of share options 387,373 387,373
Diluted average number of ordinary shares 83,781,531 83,781,531
Basic earnings per share 1.20p 5.37p
Diluted earnings per share 1.20p 5.35p
Adjusted earnings per share 9.28p 9.30p
2. Unaudited reconciliation of profit from operations to net cash inflow from
operating activities for the year ended 30 June 2005.
IFRS2
UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS19
IFRS format Discontinued intangible Business Based Employee Holiday IFRS
(unaudited) Operations assets Combinations Payments Benefits pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Profit from
operations 5,916 62 58 2,551 (34) (16) (33) 8,504
Loss from
discontinued
operations - (62) - - - - - (62)
Depreciation
of property,
plant and
equipment 1,794 - (173) - - - - 1,621
Amortisation
of intangible
fixed assets 6,138 - 115 (2,551) - - - 3,702
Loss on disposal
of property,plant
and equipment 36 - - - - - - 36
Exchange translation
differences (16) - - - - - - (16)
Share option charge - - - - 34 - - 34
------------------------------------------------------------------------------------------
Operating cash
flows before
movements in
working capital 13,868 - - - - (16) (33) 13,819
Decrease in
inventories 251 - - - - - - 251
Increase in
receivables (189) - - - - - (189)
Increase in
payables 608 - - - - 16 33 657
------------------------------------------------------------------------------------------
Cash generated
by operations 14,538 - - - - - - 14,538
Tax paid (2,930) - - - - - - (2,930)
Interest paid (897) - - - - - - (897)
------------------------------------------------------------------------------------------
Net cash from
operating
activities 10,711 - - - - - - 10,711
------------------------------------------------------------------------------------------
Wilmington Group plc
Reconciliation of UK GAAP consolidated profit and loss account to IFRS
consolidated income statement for the six months ended 31 December 2004
UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS12 IAS19
IFRS format Discontinued Intangible Business Based Employee Deferred Holiday IFRS
(unaudited) Operations assets Combinations Payments Benefits Tax pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Revenue 39,715 (2,563) - - - - - - 37,152
Cost of sales (13,774) 489 - - - - - - (13,285)
--------------------------------------------------------------------------------------------------
Gross profit 25,941 (2,074) - - - - - - 23,867
Administration
expenses (22,325) 2,124 87 - (17) (12) - 200 (19,943)
Amortisation
and impairment (2,389) 71 (58) 1,275 - - - - (1,101)
--------------------------------------------------------------------------------------------------
Profit from
operations 1,227 121 29 1,275 (17) (12) - 200 2,823
Finance costs (450) - - - - (2) - - (452)
--------------------------------------------------------------------------------------------------
Profit on
ordinary
activities
before
taxation 777 121 29 1,275 (17) (14) - 200 2,371
Tax on profit
on ordinary
activities (959) (15) - - 6 5 222 (60) (801)
--------------------------------------------------------------------------------------------------
(Loss)/profit
on ordinary
activities
after taxation (182) 106 29 1,275 (11) (9) 222 140 1,570
Loss on
discontinued
operations
after taxation - (106) - - - - - - (106)
--------------------------------------------------------------------------------------------------
(Loss)/profit
on ordinary
activitieS
after taxation (182) - 29 1,275 (11) (9) 222 140 1,464
--------------------------------------------------------------------------------------------------
Attributable
to Equity
holders of the
parent (445) - 29 1,275 (11) (9) 222 140 1,201
--------------------------------------------------------------------------------------------------
Minority
interest 263 - - - - - - - 263
--------------------------------------------------------------------------------------------------
Wilmington Group plc
Reconciliation of UK GAAP to IFRS consolidated balance sheet as at 31 December
2004
UK GAAP IFRS2
IFRS IAS38 IFRS3 Share IAS 19 IAS12 IAS 21 IAS 19
format Intangible Business Based Employee Deferred IAS 10 Foreign Holiday IFRS
(unaudited) assets Combinations Payments Benefits tax Dividends exchange pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Non-current
assets
Goodwill 34,542 - 3,159 - - - - - - 37,701
Other
intangible
assets 30,854 182 (1,884) - - - - - - 29,152
Property,
plant and
equipment 12,666 (328) - - - - - - - 12,338
Deferred
tax asset - - - 15 136 - - - 29 180
----------------------------------------------------------------------------------------------------
78,062 (146) 1,275 15 136 - - - 29 79,371
----------------------------------------------------------------------------------------------------
Current
Assets
Inventories 2,039 - - - - - - - - 2,039
Trade and
other
receivables 15,803 - - - - - - - - 15,803
Cash and cash
equivalents 1,668 - - - - - - - - 1,668
----------------------------------------------------------------------------------------------------
19,510 - - - - - - - - 19,510
----------------------------------------------------------------------------------------------------
Total
Assets 97,572 (146) 1,275 15 136 - - - 29 98,881
----------------------------------------------------------------------------------------------------
Current
liabilities
Trade and
other
payables (25,804) - - - - - 959 - (96) (24,941)
Tax
liabilities (855) - - - - - - - - (855)
Bank
overdrafts
and loans (3,405) - - - - - - - - (3,405)
----------------------------------------------------------------------------------------------------
(30,064) - - - - - 959 - (96) (29,201)
----------------------------------------------------------------------------------------------------
Non-current
liabilities
Bank loans and
overdrafts (9,000) - - - - - - - - (9,000)
Retirement
benefit
obligation - - - - (453) - - - - (453)
Deferred tax
liability (578) - - - - (2,914) - - - (3,492)
----------------------------------------------------------------------------------------------------
(9,578) - - - (453) (2,914) - - - (12,945)
----------------------------------------------------------------------------------------------------
Total
liabilities (39,642) - - - (453) (2,914) 959 - (96) (42,146)
----------------------------------------------------------------------------------------------------
Net Assets
Equity 57,930 (146) 1,275 15 (317) (2,914) 959 - (67) 56,735
----------------------------------------------------------------------------------------------------
Share capital 4,167 - - - - - - - - 4,167
Share premium
account 42,363 - - - - - - - - 42,363
Capital
Reserve 949 - - - - - - - - 949
Translation
reserve - - - - - - - 25 - 25
Share option
reserve - - - 40 - - - - - 40
Retained
Earnings 8,364 (146) 1,275 (25) (317) (2,914) 959 (25) (67) 7,104
----------------------------------------------------------------------------------------------------
Equity
Share-holders'
Funds 55,843 (146) 1,275 15 (317) (2,914) 959 - (67) 54,648
Minority
interests 2,087 - - - - - - - - 2,087
----------------------------------------------------------------------------------------------------
Total equity 57,930 (146) 1,275 15 (317) (2,914) 959 - (67) 56,735
----------------------------------------------------------------------------------------------------
Wilmington Group plc
Reconciliation of UK GAAP to IFRS consolidated cash flow statement for the six
months ended 30 December 2004
UK GAAP
IFRS IAS38
format Intangible IFRS
(unaudited) assets (unaudited)
Note £'000 £'000 £'000
Net cash from operating activities 2 2,025 - 2,025
Investing activities
Purchase of tangible fixed assets (1,891) 133 (1,758)
Sale of tangible fixed assets 11 - 11
Purchase of subsidiary
undertakings and minority interests (3,215) - (3,215)
Sale of subsidiary undertakings - - -
Purchase of goodwill and
intangible assets (383) (133) (516)
---------------------------------------
Net cash used in investing activities (5,478) - (5,478)
---------------------------------------
Financing activities
Dividends paid (1,746) - (1,746)
Issue of ordinary shares - - -
Repayment of loan notes (1,000) - (1,000)
Increase in long term loans 2,000 - 2,000
Increase in bank overdrafts 2,913 - 2,913
---------------------------------------
Net cash used in financing activities 2,167 - 2,167
---------------------------------------
Net decrease in cash and cash equivalents of the year (1,286) - (1,286)
Cash and cash equivalents at beginning 2,954 - 2,954
Cash and cash equivalents acquired during the year - - -
---------------------------------------
Cash and cash equivalents at end of the year 1,668 - 1,668
---------------------------------------
Wilmington Group plc
Statement of changes in equity for the six months ended 31 December 2004
Share
Share Share Capital Option Translation Retained Minority
Capital Premium reserve Reserve Reserve Earnings Total Interests Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 30
June 2004 4,167 42,363 949 23 - 7,543 55,045 2,169 57,214
Profit for period - - - - - 1,201 1,201 263 1,464
Exchange translation
difference - - - - 25 - 25 - 25
Actuarial gain taken
directly to equity - - - - - 39 39 - 39
Tax on items taken
directly to equity - - - - - (12) (12) - (12)
------------------------------------------------------------------------------------------
4,167 42,363 949 23 25 8,771 56,298 2,432 58,730
Dividends - - - - - (1,667) (1,667) - (1,667)
Issue of share capital - - - - - - - - -
Share Option reserve - - - 17 - - 17 - 17
Acquisition of minorities
during period - - - - - - - (345) (345)
------------------------------------------------------------------------------------------
Balance at 31
December 2004 4,167 42,363 949 40 25 7,104 54,648 2,087 56,735
------------------------------------------------------------------------------------------
Notes to the Consolidated IFRS Statement
1. Earnings per share for the six months ended 31 December 2004
UK GAAP
IFRS Format IFRS
(unaudited) (unaudited)
2004 2004
£'000 £'000
Profit for the financial period (445) 1,201
Amortisation and impairment of goodwill and
intangible assets (net of minority interest and
deferred tax) 2,371 861
Exceptional items after tax 642 642
--------------------------
Adjusted profit for the financial period 2,568 2,704
--------------------------
Number Number
Average number of ordinary shares 83,351,679 83,351,679
Exercise of share options 325,463 325,463
Diluted average number of ordinary shares 83,677,142 83,677,142
Basic earnings per share (0.53)p 1.44p
Diluted earnings per share (0.53)p 1.44p
Adjusted earnings per share 3.08p 3.24p
2. Unaudited reconciliation of profit from operations to net cash inflow from
operating activities for the six months ended 31 December 2004.
IFRS2
UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS19
IFRS format Discontinued intangible Business Based Employee Holiday IFRS
(unaudited) Operations assets Combinations Payments Benefits pay (unaudited)
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Profit from
operations 1,227 121 29 1,275 (17) (12) 200 2,823
Loss from
discontinued
operations - (121) - - - - - (121)
Depreciation
of property,
plant and
equipment 884 - (87) - - - - 797
Amortisation
of intangible
fixed assets 2,389 - 58 (1,275) - - - 1,172
Profit on
disposal of
property,
plant and
equipment (5) - - - - - - (5)
Exchange
translation
differences 25 - - - - - - 25
Share option
charge - - - - 17 - - 17
------------------------------------------------------------------------------------------
Operating
cash flows
before
movements in
working
capital 4,520 - - - - (12) 200 4,708
Increase in
inventories (165) - - - - - - (165)
Decrease in
receivables 1,951 - - - - - - 1,951
Decrease in
payables (2,682) - - - - 12 (200) (2,870)
------------------------------------------------------------------------------------------
Cash generated by
operations 3,624 - - - - - - 3,624
Tax paid (1,158) - - - - - - (1,158)
Interest paid (441) - - - - - - (441)
------------------------------------------------------------------------------------------
Net cash from
operating
activities 2,025 - - - - - - 2,025
------------------------------------------------------------------------------------------
This information is provided by RNS
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