Interim Results

Safeland PLC 12 December 2005 12 December 2005 SAFELAND PLC Interim Results CHAIRMAN'S STATEMENT SIX MONTHS TO 30 September 2005 I am pleased to report that for the six months ended 30 September 2005 the company is reporting a profit before taxation of £79,000 compared to a restated loss of £33,000 for the same period last year. These are the first accounts that have been drawn up under the newly adopted International Financial Reporting Standards (IFRS). Revenue has gone down from £15.9m (restated) in 2004, to £10.8m in this period. This is due to there having been a greater incidence of sales of single purpose vehicle subsidiaries than had occurred previously. These transactions are shown below gross profit. The profit for the period is after taking into consideration the loss from Espazio, the Italian self-storage company, of £331,000 (2004: £356,000). The company will not be declaring an interim dividend. Net asset value per share at 30 September 2005 is 111p compared with 106p (restated) at 30 September 2004, and earnings per share are 0.30p (2004: loss 0.49p restated). We have now adopted IFRS and as you will see from the attached financial statements, the main changes arise from the accounting for deferred tax, valuation of quoted investments and treatment of property revaluations. Further details of the impact of the move to IFRS are detailed in notes 7 and 8. The marketplace has not changed for a few years and whilst we continue to transact a number of purchases and sales we still await more vibrant conditions to which we are well poised to react. Raymond Lipman Chairman 12 December 2005 SAFELAND PLC UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 Neither audited Neither audited Audited nor reviewed nor reviewed Year ended Six months ended Six months ended 31 March 30 September 30 September 2005 2005 2004 (restated) (restated) £'000 £'000 £'000 Notes Revenue 10,819 15,865 28,456 Direct costs (9,316) (14,110) (23,975) Gross profit 1,503 1,755 4,481 Sales and distribution costs (285) (455) (625) Administrative expenses (1,940) (1,447) (3,528) Other operating income 83 91 333 Gains on revaluation of investment properties - - 99 Profit on disposal of investment properties - 299 476 Profit on disposal of subsidiaries 818 - 1 Operating profit 179 243 1,237 Share of results of associate - post tax (8) (4) (74) Profit on disposal of available-for-sale investments - - 1,201 Profit before interest and tax 171 239 2,364 Finance income 275 155 234 Finance costs (367) (427) (756) Profit/(loss) before tax 79 (33) 1,842 Tax (24) (64) (629) Profit/(loss) for the period 55 (97) 1,213 Basic earnings/(loss) per share (pence) 4 0.30p (0.49p) 6.32p Diluted earnings/(loss) per share (pence) 4 0.30p (0.49p) 6.32p SAFELAND PLC UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 SEPTEMBER 2005 Neither audited Neither audited Audited nor reviewed nor reviewed 31 March 30 September 30 September (restated) 2005 (restated) 2005 2004 £'000 £'000 £'000 Non-current assets Property, plant and equipment 5,943 5,927 5,940 Investment properties 4,271 3,048 4,305 Investment in associated undertakings 28 804 36 Available-for-sale investments 5,146 5,511 4,104 Total non-current assets 15,388 15,290 14,385 Current assets Trading properties 19,541 15,811 11,543 Trade and other receivables 2,957 3,292 5,448 Cash and cash equivalents 2,084 2,212 2,440 Total current assets 24,582 21,315 19,431 Total assets 39,970 36,605 33,816 Current liabilities Borrowings 805 875 813 Trade and other payables 1,730 1,874 2,286 Current tax liabilities 551 387 650 Total current liabilities 3,086 3,136 3,749 Non-current liabilities Borrowings 15,474 12,475 9,762 Trade and other payables - 802 - Deferred tax liability 751 514 458 Derivative financial instruments 51 115 51 Total non-current liabilities 16,276 13,906 10,271 Total liabilities 19,362 17,042 14,020 Net assets 20,608 19,563 19,796 Equity Share capital 925 985 925 Capital reserves 6,116 6,006 6,116 Other reserves (12) (20) (27) Retained earnings 13,579 12,592 12,782 Total equity 20,608 19,563 19,796 SAFELAND PLC UNAUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 Neither audited Neither audited Audited nor reviewed nor reviewed Year ended Six months ended Six months ended 31 March 30 September 30 September 2005 2005 2004 (restated) (restated) £'000 £'000 £'000 Notes Operating activities Net cash (outflow)/inflow from operations 6 (11,493) (379) 1,621 Interest paid (367) (427) (820) Tax paid/(repaid) (114) 317 107 Net cash (outflow)/inflow from operating (11,974) (489) 908 activities Investing activities Interest received 239 106 185 Purchase of investment properties (177) (323) (1,689) Purchase of property, plant and equipment (374) (444) (660) Proceeds from sale of property, plant and 184 115 215 equipment Proceeds from sale of investment properties - 1,555 1,940 Proceeds from sale of available-for-sale - - 3,259 investments Dividends received from available-for-sale 36 49 49 investments Disposal of subsidiaries 6,006 - 52 Net cash inflow from investing activities 5,914 1,058 3,351 Financing activities Proceeds from issue of share capital - - 50 Purchase of own shares - - (760) Net increase/(decrease) in borrowings 5,676 (249) (2,917) Net cash inflow/(outflow)from financing activities 5,676 (249) (3,627) Net (decrease)/increase in cash and cash equivalents (384) 320 632 Cash and cash equivalents at beginning of period 2,430 1,798 1,798 Cash and cash equivalents at end of period 2,046 2,118 2,430 SAFELAND PLC UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2005 Neither audited Neither audited Audited nor reviewed nor reviewed Year ended Six months ended Six months ended 31 March 30 September 30 September 2005 2005 2004 (restated) (restated) £'000 £'000 £'000 Opening equity (as previously reported) 19,403 18,599 18,599 Effect of adopting IFRS 393 671 671 Opening equity (as restated) 19,796 19,270 19,270 Shares issued in the period - - 50 Purchase of own shares - - (760) Fair value gains on available-for-sale investments 1,042 390 307 Deferred tax on fair value gains on available-for-sale (300) 20 65 investments Currency translation differences of foreign currency net 15 (20) (27) investments Profit/(loss) for the period 55 (97) 1,213 Dividends - - (322) Closing equity 20,608 19,563 19,796 SAFELAND PLC NOTES TO THE ACCOUNTS (UNAUDITED) 1. Basis of preparation and accounting policies This interim financial information was approved by the Board of Directors on 12 December 2005. The restated results for the year ended 31 March 2005 are not statutory accounts within the meaning of s240, Companies Act 1985. Statutory accounts for that period (prepared in accordance with UK GAAP) were prepared and filed with the Registrar of Companies and received an unqualified audit report. The results for the six months to 30 September 2005 and 2004 are unaudited and do not constitute the Group's statutory accounts within the meaning of s240 of the Companies Act 1985. The income statement and balance sheet have been prepared, in accordance with applicable International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These standards are also collectively referred to as 'IFRS'. 2. Transition To International Financial Reporting Standards (Ifrs) All listed companies in the EU are required to present their consolidated financial statements for accounting periods beginning on or after 1 January 2005 in accordance with IFRS as adopted by the EU. Therefore, the group's consolidated financial statements for the year ending 31 March 2006 will be presented on this basis with IFRS comparatives. These interim financial statements have been prepared on the basis of the IFRS accounting policies expected to be adopted in the year end consolidated financial statements. Reconciliations have been provided to UK GAAP and these, together with an explanation of the resulting changes in accounting policies, are set out in notes 7 and 8. Although there is a now a fairly stable platform, standards continue to evolve and those currently in issue and endorsed by the EU are subject to interpretation by the International Financial Reporting Interpretations Committee (IFRIC) and further standards may be issued and endorsed by the EU before 31 March 2006. These uncertainties could result in the need to change the basis of accounting or presentation of financial information from that applied in the preparation of this document. The group is required to apply its IFRS accounting policies retrospectively to determine the opening IFRS balance sheet at the transition date of 1 April 2004 and the comparative information for the year ended 31 March 2005. Business combinations prior to 1 April 2004 have not been restated to comply with IFRS 3, 'Business Combinations'. The group has applied IFRS 2, 'Share-based payment', retrospectively only to awards made after 7 November 2002 that had not vested at 1 April 2005. There are no awards that meet this criteria. Exchange differences arising on translation of overseas operations prior to 1 April 2004 have not been recognised in a separate translation reserve. The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results may ultimately differ from those estimates. 3. Accounting policy changes An explanation of the changes in accounting policies as a result of adopting IFRS, together with a full list of the revised accounting policies are shown in notes 7 and 8. 4. Earnings/(loss) per share Basic and diluted earnings per share of 0.30p (30 September 2004: loss of 0.49p; 31 March 2005 earnings of 6.32p) are based on the profit for the period of £55,000 (30 September 2004: loss of £97,000; 31 March 2005: profit of £1,213,000) and on 18,500,530 ordinary shares (30 September 2004: 19,689,102 ordinary shares; 31 March 2005: 19,207,059 ordinary shares) being the weighted average number of shares in issue through the period. The calculation of diluted earnings/(loss) per share was the same earnings/ (loss) figure and weighted average number as the basic calculation, as the exercise value of all share options was higher than the average share price during the period to date of exercise on 8 March 2005. 5. Dividend per share No interim dividend has been declared (six months ended 30 September 2004 - no interim dividend declared). During the year ended 31 March 2005, the company demerged seven subsidiaries by the payment of a dividend in specie representing 90% of the ordinary share capital of each company. 6. Reconciliation of operating profit to net cash (outflow)/inflow from operations Neither audited Neither audited Audited nor reviewed nor reviewed Year ended Six months ended Six months ended 31 March 30 September 30 September 2005 2005 2004 (restated) (restated) £'000 £'000 £'000 Operating profit 179 243 1,237 Adjustments for: Depreciation of property, plant and equipment 194 157 269 Profit on sale of property, plant and equipment (7) (7) (16) Profit on sale of investment properties - (299) (476) Gains on revaluation of investment properties - - (99) Profit on sale of subsidiaries (818) - (1) Changes in working capital: (Increase)/decrease in trading properties (12,975) (2,402) 1,457 Decrease/(increase) in trade and other receivables 2,490 1,041 (1,218) (Decrease)/increase in trade and other payables (556) 888 468 Net cash (outflow)/inflow from operations (11,493) (379) 1,621 7. Summary of significant accounting policies under IFRS Basis of accounting The financial statements have been prepared under the historical cost convention, except for the revaluation of investment properties and certain financial instruments. Prior to the introduction of IFRS, the group had prepared its financial statements under United Kingdom accounting standards. As a result of adopting IFRS it has been necessary to change many of the group's accounting policies and these are detailed below. Basis of consolidation The consolidated financial statements incorporate the financial statements of Safeland plc, all of its subsidiaries and the group's share of profits and losses and net assets of joint ventures and associates made up to 30 September 2005. Goodwill On acquisition, the assets and liabilities of a subsidiary, joint venture or associate that are accounted for as business combinations are measured at their fair value at the date of acquisition. Any excess/(deficiency) of the cost of acquisition over/(below) the fair value of the identifiable net assets acquired is recognised as goodwill/(negative goodwill). Goodwill is recognised as an asset and assessed for impairment at least annually. Negative goodwill is immediately recognised in the income statement. Property, plant and equipment Properties under this heading comprise those properties occupied by group companies. Property, plant and equipment are stated at cost less accumulated depreciation and are depreciated over their estimated useful lives on the following annual bases: Freehold land and buildings 2% (straight line) Motor vehicles 25% (reducing balance) Fixtures, fittings and equipment 20% (reducing balance) Investment properties Investment properties are those properties that are held either to earn rental income or for capital appreciation or both. Investment properties may be freehold properties or leasehold properties. For leasehold properties that are classified as investment properties, the associated leasehold obligations are accounted for as finance lease obligations. Valuation surpluses and deficits arising in the period are included in the income statement. The gain or loss arising on the disposal of a property is determined as the difference between the sales proceeds and the carrying amount of the asset at the beginning of the period and is recognised in the income statement. Joint ventures A joint venture is a contractual arrangement whereby the group and other parties undertake an economic activity that is subject to joint control. Where a group company undertakes its activities under joint venture arrangements directly, the group's share of jointly controlled assets and any liabilities incurred jointly with other ventures are recognised in the financial statements of the group and classified according to their nature. Liabilities and expenses incurred directly in respect of interests in jointly controlled assets are accounted for on an accrual basis. Joint venture arrangements which involve the establishment of a separate entity in which each venturer has an interest are referred to as jointly controlled entities. The group reports its interests in jointly controlled entities using the equity method of accounting. Investments in joint ventures are carried in the balance sheet at cost as adjusted by post-acquisition changes in the group's share of the net assets of the joint ventures, less any impairment in the value of individual investments of the joint ventures. Associates An associate is an entity over which the group is in a position to exercise significant influence, but not control, through participation in the financial and operating policy decisions of the investee. The results and assets and liabilities of associates are incorporated in these financial statements using the equity method of accounting. Investments in associates are carried in the balance sheet at cost, adjusted by post-acquisition changes in the group's share of the net assets of the associates, less any impairment in the value of individual investments of the associates. Available-for-sale investments Available-for-sale investments are non-derivative financial assets that are designated as available-for-sale. The investments are held at fair value with gains and losses taken to equity. The gains and losses taken to equity are recycled through the income statement on realisation. If there is objective evidence that the asset is impaired, the cumulative loss that had been recognised directly in equity is removed from equity and recognised in the income statement. The amount removed from equity and recognised in the income statement, is the difference between the acquisition cost (net of any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously recognised in income. Impairment losses recognised in the income statement are not reversed through income. Trading properties Properties held for development and resale are classified as trading properties and are shown at the lower of cost and net realisable value. Cost comprises purchase price, acquisition costs and direct expenditure, but excludes interest, which is written off in the income statement as incurred. Purchases of properties are recognised on completion of contracts. Cash and cash equivalents Cash and cash equivalents comprise cash balances, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts that are repayable on demand and which form an integral part of the group's cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows. Borrowings Borrowings other than bank overdrafts are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the income statement over the period of the borrowings, using the effective interest method. Leases Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Finance leases are capitalised at the lease commencement at the lower of the fair value of the asset and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charges, are included in current and non-current borrowings. The finance charges are charged to the income statement over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Investment properties acquired under finance leases are carried at their fair value. Derivative financial instruments The group uses derivative financial instruments to help manage its interest rate risk. The group does not hold or issue derivative financial instruments for trading purposes. Derivative financial instruments are recognised initially at cost. Subsequent to initial recognition, derivative financial instruments are stated at fair value with the gain or loss recognised immediately in the income statement, unless the derivative financial instruments qualify for hedge accounting, in which case recognition depends on the nature of the item being hedged. Currently the group's derivative financial instruments only comprise an interest rate swap that does not qualify for hedge accounting. Revenue Revenue comprises the sales proceeds from properties previously held as trading stock, rental income from investment properties and self-storage operations and fees for the provision of services falling within the ordinary activities of the group. Sales of trading properties are recognised on completion of a contract. Revenue is measured at the fair value of the consideration received or receivable and is stated net of discounts, VAT and other sales related taxes. Taxation The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Foreign currencies Transactions in currencies other than sterling are initially recorded at the rates of exchange prevailing on the dates of the transactions. Monetary assets and liabilities denominated in such currencies are retranslated at the rates prevailing on the balance sheet date. Profits and losses arising on retranslation are included in the income statement, except where foreign currency denominated loans are designated as a hedge of the group's investment in its overseas subsidiaries. In this case the exchange difference is taken to equity until the realisation of the overseas investment and then it is transferred to the income statement as part of the profit or loss on realisation. On consolidation, the assets and liabilities of the group's overseas operations are translated into sterling at exchange rates prevailing on the balance sheet date. Exchange differences arising, if any, are classified as equity and transferred to the group's translation reserve. Such translation differences are recognised as income or expenses in the period in which the operation is disposed of. Income and expense items are translated at the average exchange rates for the period. Dividend distribution Dividend distribution to the company's shareholders is recognised as a liability in the group's financial statements in the period in which the dividends are declared. 8. Explanation of transition to International Financial Reporting Standards This is the group's first interim report prepared in accordance with IFRS. The reconciliations of balance sheets and equity at 1 April 2004 (date of transition to IFRS), 31 March 2005 (date of last UK GAAP financial statements) and 30 September 2004 (date of last UK GAAP interim report) are set out below. In addition, there is a reconciliation of profit for the six month period to 30 September 2004 and the year ended 31 March 2005 below. These reconciliations will enable comparison of the 2005 interim figures under IFRS with those published under UK GAAP in the 2004 interim report and the annual report for the year ended 31 March 2005. (a) Consolidated balance sheet as at 1 April 2004 Notes UK GAAP Effect of IFRS transition to IFRS £'000 £'000 £'000 Non-current assets Property, plant and equipment 5,748 - 5,748 Investment properties 3,981 - 3,981 Investment in joint ventures and associated viii 4,683 (3,875) 808 undertaking Available-for-sale investments i 3,926 1,195 5,121 Total non-current assets 18,338 (2,680) 15,658 Current assets Trading properties 13,409 - 13,409 Trade and other receivables viii 2,649 2,001 4,650 Cash and cash equivalents viii 2,212 150 2,362 Total current assets 18,270 2,151 20,421 Total assets 36,608 (529) 36,079 Current liabilities Borrowings 1,224 - 1,224 Trade and other payables viii 2,860 (1,871) 989 Current tax liabilities 301 - 301 Total current liabilities 4,385 (1,871) 2,514 Non-current liabilities Borrowings 12,822 - 12,822 Trade and other payables 802 - 802 Deferred tax liability ii - 556 556 Derivative financial instruments iii - 115 115 Total non-current liabilities 13,624 671 14,295 Total liabilities 18,009 (1,200) 16,809 Net assets 18,599 671 19,270 Equity Share capital 985 - 985 Capital reserves 6,006 - 6,006 Other reserves iv 1,497 (1,497) - Retained earnings 10,111 2,168 12,279 Total equity 18,599 671 19,270 (b) Consolidated balance sheet as at 31 March 2005 Notes UK GAAP Effect of IFRS transition to IFRS £'000 £'000 £'000 Non-current assets Property, plant and equipment 5,940 - 5,940 Investment properties 4,305 - 4,305 Investment in joint ventures and associated viii, ix 3,985 (3,949) 36 undertaking Available-for-sale investments i 3,238 866 4,104 Total non-current assets 17,468 (3,083) 14,385 Current assets Trading properties 11,543 - 11,543 Trade and other receivables viii 3,493 1,955 5,448 Cash and cash equivalents viii 2,226 214 2,440 Total current assets 17,262 2,169 19,431 Total assets 34,730 (914) 3,749 Current liabilities Borrowings 813 - 813 Trade and other payables viii 4,102 (1,816) 2,286 Current tax liabilities 650 - 650 Total current liabilities 5,565 (1,816) 3,749 Non-current liabilities Borrowings 9,762 - 9,762 Deferred tax liability ii - 458 458 Derivative financial instruments iii - 51 51 Total non-current liabilities 9,762 509 10,271 Total liabilities 15,327 (1,307) 14,020 Net assets 19,403 393 19,796 Equity Share capital 925 - 925 Capital reserves 6,116 - 6,116 Other reserves iv 1,415 (1,442) (27) Retained earnings 10,947 1,835 12,782 Total equity 19,403 393 19,796 (c) Consolidated balance sheet as at 30 September 2004 Notes UK GAAP Effect of IFRS transition to IFRS £'000 £'000 £'000 Non-current assets Property, plant and equipment 5,927 - 5,927 Investment properties 3,048 - 3,048 Investment in joint ventures and associated viii 4,669 (3,865) 804 undertaking Available-for-sale investments i 3,926 1,585 5,511 Total non-current assets 17,570 (2,280) 15,290 Current assets Trading properties 15,811 - 15,811 Trade and other receivables viii 1,349 1,943 3,292 Cash and cash equivalents viii 2,062 150 2,212 Total current assets 19,222 2,093 21,315 Total assets 36,792 (187) 36,605 Current liabilities Borrowings 875 - 875 Trade and other payables viii 3,778 (1,904) 1,874 Current tax liabilities 387 - 387 Total current liabilities 5,040 (1,904) 3,136 Non-current liabilities Borrowings 12,475 - 12,475 Trade and other payables 802 - 802 Deferred tax liability ii - 514 514 Derivative financial instruments iii - 115 115 Total non-current liabilities 13,277 629 13,906 Total liabilities 18,317 (1,275) 17,042 Net assets 18,475 1,088 19,563 Equity Share capital 985 - 985 Capital reserves 6,006 - 6,006 Other reserves iv 1,410 (1,430) (20) Retained earnings 10,074 2,518 12,592 Total equity 18,475 1,088 19,563 (d) Reconciliation of changes in equity Notes 31 March 30 September 1 April 2005 2004 2004 £'000 £'000 £'000 Fair value gains on available-for-sale investments i 902 1,585 1,195 Deferred tax on fair value gains on ii (76) (121) (141) available-for-sale investments Deferred tax on revaluation gains on investment ii (382) (393) (415) properties Fair value of derivative financial instruments iii (51) (115) (115) Eliminate negative goodwill v - 132 147 Total adjustment to equity 393 1,088 671 Total equity under UK GAAP 19,403 18,475 18,599 Total equity under IFRS 19,796 19,563 19,270 (e) Consolidated income statement for the six months ended 30 September 2004 Notes UK GAAP Effect of IFRS transition to IFRS £'000 £'000 £'000 Revenue viii 15,767 98 15,865 Direct costs viii (14,057) (53) (14,110) Gross profit 1,710 45 1,755 Sales and distribution costs (455) - (455) Administrative expenses v, viii (1,416) (31) (1,447) Other operating income 91 - 91 Profit on disposal of investment properties 299 - 299 Operating (loss)/profit 229 14 243 Share of results of associate and joint ventures - vi 12 (16) (4) post tax Profit before interest and tax 241 (2) 239 Finance income vi 168 (13) 155 Finance costs (427) - (427) Loss before tax (18) (15) (33) Tax (86) 22 (64) Loss for the period (104) 7 (97) Basic (loss)/earnings per share (pence) 2 (0.53p) 0.04p (0.49p) Diluted (loss)/earnings per share (pence) 2 (0.53p) 0.04p (0.49p) (f) Consolidated income statement for the year ended 31 March 2005 Notes UK GAAP Effect of IFRS transition to IFRS £'000 £'000 £'000 Revenue viii 28,309 147 28,456 Direct costs viii (23,922) (53) (23,975) Gross profit 4,387 94 4,481 Sales and distribution costs (625) - (625) Administrative expenses viii (3,477) (51) (3,528) Other operating income 333 - 333 Gains on revaluation of investment properties vii - 99 99 Profit on disposal of investment properties 476 - 476 Profit on disposal of subsidiaries 1 - 1 Operating profit 1,095 142 1,237 Share of results of associate and joint ventures - vi (28) (46) (74) post tax Profit on disposal of available-for-sale 1,201 - 1,201 investments Write back amounts previously written off i 716 (716) - available-for-sale investments Profit/(loss) before interest and tax 2,984 (620) 2,364 Finance income vi, viii 262 (28) 234 Finance costs iii, (820) 64 (756) viii Profit before tax 2,426 (584) 1,842 Tax (624) (5) (629) Profit for the period 1,802 (589) 1,213 Basic earnings/(loss) per share (pence) 9.38p (3.06p) 6.32p Diluted earnings/(loss) per share (pence) 9.38p (3.06p) 6.32p (g) Notes to reconciliations explaining the transition to IFRS i. IAS 39 - Available-for-sale investments are carried at fair value in the balance sheet. Movements in fair value are taken directly to equity and recycled through the income statement when the investments are disposed of. ii. IAS 12 - Deferred tax liabilities are recognised on fair value gains on available-for-sale investments and revaluation gains on investment properties. Deferred tax on fair value gains on available-for-sale investments is charged to equity and deferred tax on revaluation gains on investment properties is charged to the income statement. iii. IAS 39 - Derivative financial instruments that do not meet the strict criteria for classification as a hedge are stated at fair value in the balance sheet with gains and losses recognised as a finance cost in the income statement. iv. IAS 40 and IAS 21 - The accumulated revaluation reserve on investment properties to 1 April 2004 has been transferred to retained profits. Gains and losses on the translation of foreign operations are taken directly to equity and classified in a separate reserve. v. IFRS 3 - Negative goodwill arising on acquisitions is recognised in the income statement on date of acquisition. Under UK GAAP, negative goodwill was capitalised and amortised to the profit and loss account. vi. IAS 28 - Associates are equity accounted for and the share of results are stated in the income statement post tax. vii. IAS 40 - Revaluation gains and losses on investment properties are recognised in the income statement. viii. IAS 31 - A joint venture that was gross equity accounted for under UK GAAP has been proportionally consolidated as jointly controlled assets under IFRS ix. IAS 28 - Seven investments have been equity accounted for as associates under IFRS. Previously, these were accounted for as fixed asset investments under UK GAAP. 9. Copies of this statement are being sent to all shareholders and are available to the public for collection at the company's Registered Office at 94-96 Great North Road, London N2 0NL. This information is provided by RNS The company news service from the London Stock Exchange D IR KGMMZRZRGKZG

Companies

Safeland plc (SAF.AMPX)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today