IFRS Statement
Topps Tiles PLC
02 February 2006
Transition to International Financial Reporting Standards
Topps Tiles Plc
In accordance with IFRS 1 , First-time adoption of International Financial
Reporting Standards ('IFRS'), Topps Tiles Plc, ('Topps'), today restates it's
Net Assets as at 1 October 2005, 2 April 2005 and 2 October 2004, together with
a reconciliation from UK Generally Accepted Accounting Principles (UK GAAP) to
IFRS.
The principal impact of adoption of reporting financial information under IFRS
has been in the following areas:
•The recognition of certain operating lease incentives received over the
entire term of a lease rather than up to the period of the first rent
review;
•Goodwill amortised during 2004/05 has been credited back to the income s
tatement hence increasing Goodwill in the net assets;
•The timing of the recognition of dividends payable to shareholders;
•A charge has been made to the income statement in relation to share based
payments and a new reserve has been created within the Net Assets statement;
and
•The recognition of the fair value of forward foreign currency contracts
and embedded derivatives; and
•Presentational issues with respect to Joint Ventures.
Summary of impact on retained earnings (cumulative) 2004/05 2003/04
£'000 £'000
Lease incentives (increase deferred income) (554) (560)
Goodwill amortisation (increase goodwill) 34 -
Diviends proposed at year end (reduce creditors) 13,576 13,593
Share based payments (reduce reserves) (100) (35)
Financial instruments (increase financial liability) (25) -
Tax effect on above 175 168
Deferred Tax on share options 371 852
Total increase in retained earnings 13,477 14,018
Restatement of financial information for 2005 under IFRS
Introduction
Historically Topps Tiles Plc has prepared its consolidated financial statements
in accordance with UK GAAP. For accounting periods commencing after 1 January
2005 it is mandatory to prepare them in accordance with IFRS.
This first full year results to be produced under IFRS will be for the year
ending 30 September 2006 and the first interim reporting period will be the 6
months to 1 April 2006.
This announcement explains the principal changes in Topps accounting policies as
a result of the new standards.
Basis of Preparation
The financial information in this announcement has been prepared in accordance
with all IFRS standards that are expected to be applicable for the Group's 2006
reporting. These are subject to an ongoing review and possible amendments, t
herefore the financial information provided in this announcement may require
modification until the first set of audited IFRS statements are completed for
the year ending 30 September 2006.
Explanation of adjustments arising from the adoption of IFRS
IFRS 1 First time Adoption of International Financial Reporting Standards
This requires a company to define its IFRS policies and apply them
retrospectively in deriving the opening Balance Sheet at the date of transition.
The standard does allow for a number of exemptions in order to simplify the
transition process, we have explained below when these exemptions are applied.
IFRS 2 Share Based Payment
IFRS 2 requires a charge to be recognised in the income statement for share
based payments, based on the fair value of the option or award at the date of
grant, which is expensed over the vesting period of the option or award.
Topps has applied this only to options or schemes awarded after 7 November 2002
and therefore this only includes employee share save schemes as no executive
share options were granted after this date.
The cumulative effect to 1 October 2005 is a charge of £100,000 to the Retained
Earnings.
IFRS 3 Goodwill and Business Combinations
Topps has elected to take the exemption available under IFRS 1 not to apply IFRS
3 retrospectively to Goodwill; accordingly the value of Goodwill has been frozen
at the carrying value at 2 October 2004.
Under IFRS Goodwill should not be amortised but is subject to an impairment
review annually or more frequently if events or changes occur which may
significantly affect the value.
The effect of the change to IFRS was to reverse the charge of £34,000 to the
income statement for the year ended 1 October 2005 thereby increasing income for
the year and retained earnings by this amount.
IAS 10 Events after the Balance Sheet date
IAS 10 requires that dividends should now be recognised only when they are
declared and approved rather than being accrued for in the period to which they
relate as the liability does not represent a present obligation as defined by
IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
On transition to IFRS £13,593,000 at 2 October 2004 was credited to retained
earnings.
In addition, dividends are to be shown as a movement directly in equity instead
of through the Income Statement.
IAS 17 Leases
Under UK GAAP operating lease incentives in respect of rent free periods were
recognised in the profit and loss account over the period to the date of the
first rent review. IAS 17 states that the incentives must be recognised over the
length of the lease.
The effect of this is that Topps is carrying an increased amount of £554,000 for
deferred lease incentives as at 1 October 2005 and a charge of £6,000 for the 52
weeks ended 1 October 2005.
IAS 31 Jointly Controlled Entities
IAS 31 requires that Topps should recognise in the financial statements our
share of the joint assets, any liabilities that it has incurred directly and its
share of any liabilities incurred jointly with the other entities. Income from
the sale or use of our share of the output of our jointly controlled entity, our
share of its expenses and expenses incurred directly in respect of its interest
in the joint venture are presented after tax in one single line in the income
statement.
IAS 32 & 39 Financial Instruments: Disclosure and Presentation & Recognition and
Measurement
Profits and losses on financial instruments are recognised in the Income
Statement as they arise.
In accordance with IFRS 1, comparative information has not been restated for the
impact of IAS 32 and IAS 39, but the Group has only adopted these standards to
apply from 1 October 2005.
1 Summary of principal accounting policies
The principal accounting policies are summarised below.
a) Basis of accounting
The next financial statements of the Group will be prepared in accordance with
IFRS.
The financial statements have been prepared on the historical cost basis, except
for the revaluation of certain properties and financial instruments. The
principal accounting policies adopted are set out below.
b) Financial period
The accounting period ends on the Saturday which falls closest to 30 September,
resulting in financial periods of either 52 or 53 weeks.
c) Basis of consolidation
The consolidated financial statements incorporate the financial statements of
Topps Tiles Plc and entities controlled by the Company (its subsidiaries).
Control is achieved where the Company has the power to govern the financial and
operating policies of an investee entity so as to obtain benefits from its
activities.
The results of subsidiaries acquired or disposed of during the year are included
in the consolidated income statement from the effective date of acquisition or
up to the effective date of disposal, as appropriate.
All intra-group transactions, balances, income and expenses are eliminated on
consolidation.
d) Investments in Jointly Controlled Entities
A jointly controlled entity is an entity over which the Group is in a position
to exercise joint control, through participation in the financial and operating
policy decisions of the investee.
The results and assets and liabilities of jointly controlled entities are
incorporated in these financial statements using the equity method of
accounting. Investments are carried in the balance sheet at cost adjusted by
post-acquisition changes in the Group's share of the net assets of the jointly
controlled entity, less any impairment in the value of individual investments.
Any excess of the cost of acquisition over the Group's share of the fair values
of the identifiable net assets of the jointly controlled entity at the date of
acquisition is recognised as goodwill.
Where a group company transacts with a jointly controlled entity of the Group,
profits and losses are eliminated to the extent of the Group's interest in the
relevant jointly controlled entity. Losses may provide evidence of an impairment
of the asset transferred in which case appropriate provision is made for
impairment.
e) Goodwill
Goodwill arising on consolidation represents the excess of the cost of
acquisition over the Group's interest in the fair value of the identifiable
assets and liabilities of a subsidiary or jointly controlled entity at the date
of acquisition. Goodwill is initially recognised as an asset at cost and is
subsequently measured at cost less any accumulated impairment losses. Goodwill
which is recognised as an asset is reviewed for impairment at least annually.
Any impairment is recognised immediately in the income statement and is not
subsequently reversed.
For the purpose of impairment testing, goodwill is allocated to each of the
Group's cash-generating units expected to benefit from the synergies of the
combination. Cash-generating units to which goodwill has been allocated are
tested for impairment annually, or more frequently when there is an indication
that the unit may be impaired. If the recoverable amount of the cash-generating
unit is less than the carrying amount of the unit, the impairment loss is
allocated first to reduce the carrying amount of any goodwill allocated to the
unit and then to the other assets of the unit pro-rata on the basis of the
carrying amount of each asset in the unit.
On disposal of a subsidiary or jointly controlled entity, the attributable
amount of goodwill is included in the determination of the profit or loss on
disposal.
Goodwill arising on acquisitions before the date of transition to IFRS has been
retained at the previous UK GAAP amounts subject to being tested for impairment
at that date. Goodwill of £15,080,000 written off to reserves under UK GAAP
prior to 1998 has not been reinstated and is not included in determining any
subsequent profit or loss on disposal.
f) Revenue recognition
Revenue is measured at the fair value of the consideration received or
receivable and represents amounts receivable for goods and services provided in
the normal course of business, net of discounts, VAT and other sales-related
taxes.
Sales of goods are recognised when title has passed.
Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life
of the financial asset to that asset's net carrying amount.
Dividend income from investments is recognised when the shareholders' rights to
receive payment have been established.
g) Foreign currencies
In preparing the financial statements of individual companies, transactions in
currencies other than the entity's functional currency (foreign currencies) are
recorded at the rates of exchange prevailing on the dates of transactions. At
each period end, monetary assets and liabilities that are denominated in foreign
currencies are retranslated at the rates prevailing on that date. Non-monetary
items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in
a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in the income statement for the
period. Exchange differences arising on the retranslation of non-monetary items
carried at fair value are included in profit or loss for the period except for
differences arising on the retranslation of non-monetary items in respect of
which gains and losses are recognised directly in equity. For such non-monetary
items, any exchange component of that gain or loss is also recognised directly
in equity.
For the purpose of presenting consolidated financial statements, the assets and
liabilities of the group's joint venture operation are translated at exchange
rates prevailing at period end dates. Income and expense items are translated at
the average exchange rates for the period, unless exchange rates fluctuate
significantly during the period, in which case the exchange rates at the dates
of transactions are used. Exchange differences arising are classified as equity
and transferred to the group's translation reserve. Such differences are
recognised as income or expense in the period in which the operation is disposed
of.
In order to hedge its exposure to certain foreign exchange risks, the group
enters into forward contracts (see below for details of the group's accounting
policies in respect of such derivative financial instruments).
h) Property, Plant & Equipment
Property, plant and equipment are stated at cost, net of depreciation and any
provision for impairment. Costs are only those costs that are directly attri
butable to bringing the asset into working condition for its intended use.
Depreciation is provided to write off the cost of tangible assets, less
estimated residual value, over their estimated useful lives, as follows:
Freehold buildings - 2% per annum on cost on a straight-line
basis
Short leasehold land and buildings - over the period of the lease, up to 25
years
Fixtures and fittings - over 10 years or at 25% per annum on
reducing balance basis as appropriate
Motor vehicles - 25% per annum on reducing balance
Freehold land is not depreciated.
Residual value is calculated on prices prevailing at the date of acquisition.
i) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost
comprises the purchase price of materials and includes an attributable
proportion of distribution overheads based on normal levels of activity and is
valued at standard cost. Net realisable value is based on estimated selling
price, less further costs expected to be incurred to completion and disposal.
j) 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 stat
ements 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 the initial recognition of 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.
Deferred tax liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, and interests in jointly controlled
entities, except where the group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
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.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net
basis.
k) Leases
Rentals payable under operating leases are charged on a straight line basis over
the lease term, even if the payments are not made on such a basis. Benefits
received and receivable as an incentive to sign an operating lease are similarly
spread on a straight-line basis over the lease term.
l) Pension costs
For defined contribution schemes, the amount charged as an expense to the Income
Statement in respect of pension costs is the contributions payable in the year.
Differences between contributions payable in the year and contributions actually
paid are shown as either accruals or prepayments in the balance sheet.
m) Derivative financial instruments
The Group uses derivative financial instruments to reduce exposure to foreign ex
change risk. The Group does not hold or issue derivative financial instruments
for speculative purposes.
The Group's activities expose it primarily to the financial risks of changes in
foreign currency exchange rates and interest rates.
The use of financial derivatives is governed by the Group's policies approved by
the board of directors, on the use of financial derivatives.
n) Bank Borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds
received, net of direct issue costs. Finance charges are accounted for on an
accrual basis in the Income Statement using the effective interest rate method
and are added to the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise.
o) Provisions
Provisions are recognised when the Group has a present obligation as a result of
a past event, and it is probable that the Group will be required to settle that
obligation. Provisions are measured at the directors' best estimate of the
expenditure required to settle the obligation at the balance sheet date, and are
discounted to present value where the effect is material.
p) Share-based payments
The group has applied the requirements of IFRS 2 Share-based Payments. In
accordance with the transitional provisions, IFRS 2 will be applied to all
grants of equity instruments after 7 November 2002 that were unvested as of 1
January 2005.
The Group issues equity settled share based payments to certain employees.
Equity settled share based payments are measured at fair value at the date of
grant. The fair value determined at the grant date of the share based payment is
expensed on a straight line basis over the vesting period, based on the Group's
estimate of shares that will eventually vest.
Fair value is measured by use of the Black Scholes model. The Group provides
employees with the ability to purchase the Group's ordinary shares at 80% of the
current market value. The Group records an expense, based on its estimate of the
20% discount related to shares expected to vest on a straight line basis over
the vesting period.
q) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits and other
short-term highly liquid investments that are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Reconciliation of Net Assets
As at 2 October 2004
UK GAAP Sharesave Tax Rent Free Dividend Effect of IFRS
2 October IFRS 2 IAS12 IAS 17 IAS 10 Transition to IFRS 2 October 2004
2004
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Non-current assets
Goodwill 551 551
Property Plant
& Equipment 29,236 29,236
Joint venture
undertaking 193 193
----------- -----------
29,980 29,980
Current assets
Inventories 24,373 24,373
Trade and other
receivables
within one year 3,809 3,809
Trade and other
receivables
within one year 110 110
Cash and cash
equivalents 29,624 29,624
----------- -----------
57,916 57,916
Total assets 87,896 87,896
Current
liabilities 0
Trade and
other
payables (18,758) (18,758)
Current tax
liabilities (3,942) (3,942)
Proposed
dividend (13,593) 13,593 13,593 0
Other
current
liabilities (9,159) (560) (560) (9,719)
Financial
liabilities 0 0
----------- ---------- ---------- ----------- -----------
(45,452) (560) 13,593 13,033 (32,419)
----------- ---------- ---------- ----------- -----------
Net current
assets 12,464 (560) 13,593 13,033 25,497
----------- ---------- ---------- ----------- -----------
Non-current
liabilities (7,571) (7,571)
Deferred tax
liabilities (1,864) 11 841 168 1,020 (844)
----------- ---------- ------- ---------- ---------- ----------- -----------
Total
liabilities (54,887) 11 841 (392) 13,593 14,053 (40,834)
Net assets 33,009 11 841 (392) 13,593 14,053 47,062
----------- ---------- ------- ---------- ---------- ----------- -----------
Equity
Share capital 5,673 5,673
Share premium 4,889 4,889
Merger reserve (399) (399)
Share Based
Payment Reserve 0 35 35 35
Treasury shares (733) (733)
Capital
Redemption
Reserve 137 137
Retained
earnings 23,442 (24) 841 (392) 13,593 14,018 37,460
----------- ---------- ------ ---------- ---------- ----------- -----------
Total equity 33,009 11 841 (392) 13,593 14,053 47,062
----------- ---------- ------- ---------- ---------- ----------- -----------
Reconciliation of Net Assets
As at 2 April 2005
Opening Effect of
UK GAAP Balance Sharesave Tax Rent Dividend Good Transition
Sheet Free will to
2 April Adjustment IFRS 2 IAS12 IAS 17 IAS 10 IFRS 3 IFRS
2005
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
--------- ---------- --------- ------- -------- -------- ------- ---------
Non-current
assets
Goodwill 534 17 17
Property Plant
& Equipment 30,914
Joint venture
undertaking 208
--------- ---------- --------- ------- -------- -------- ------- ---------
31,656 17 17
Current assets
Inventories 27,606
Trade and
other
receivables
within one
year 4,113
Trade and
other
receivables
after one year 0
Cash and cash
equivalents 22,734 0
--------- ---------- --------- ------- -------- -------- ------- ---------
54,453 0
Total assets 86,109 17 17
Current
liabilities
Trade and
other payables (17,515)
Current tax
liabilities (3,841) 0
Proposed
dividend (7,870) 13,593 (5,723) 7,870
Other current
liabilities (7,234) (560) (5) (565)
Financial
liabilities 0 0
--------- ---------- --------- ------- -------- -------- ------- ---------
(36,460) 13,033 (5) (5,723) 7,305
--------- ---------- --------- ------- -------- -------- ------- ---------
Net current
assets 17,993 13,033 (5) (5,723) 7,305
--------- ---------- --------- ------- -------- -------- ------- ---------
Non-current
liabilities (8,582)
Deferred tax
liabilities (2,181) 1,020 10 (335) 2 697
--------- ---------- --------- ------- -------- -------- ------- ---------
Total
liabilities (47,223) 14,053 10 (335) (3) (5,723) 8,002
--------- ---------- --------- ------- -------- -------- ------- ---------
Net assets 38,886 14,053 10 (335) (3) 5,723) 17 8,019
--------- ---------- --------- ------- -------- -------- ------- ---------
Equity
Share capital 5,698 0
Share premium 5,384 0
Merger reserve (399) 0
Share Based
Payment
Reserve 0 35 32 67
Treasury shares (4,183) 0
Capital
Redemption
Reserve 137 0
Retained
Earnings 32,249 14,018 (22) (335) (3) (5,723) 17 7,952
--------- ---------- --------- ------- -------- -------- ------- ---------
Total Equity 38,886 14,053 10 (335) (3) (5,723) 17 8.019
--------- ---------- --------- ------- -------- -------- ------- ---------
Reconciliation of Net Assets
As at 2 April 2005
Closing
position
under IFRS
2 April
2005
£'000
Non-current
assets
Goodwill 551
Property Plant
& Equipment 30,914
Joint venture
undertaking 208
0
---------
31,673
Current assets
Inventories 27,606
Trade and
other
receivables
within one
year 4,113
Trade and
other
receivables
after one year 0
Cash and cash
equivalents 22,734
---------
54,453
Total assets 86,126
Current
liabilities
Trade and
other payables (17,515)
Current tax
liabilities (3,841)
Proposed
dividend 0
Other current
liabilities (7,799)
Financial
liabilities 0
---------
(29,155)
---------
Net current
assets 25,298
---------
Non-current
liabilities (8,582)
Deferred tax
liabilities (1,484)
---------
Total
liabilities (39,221)
---------
Net assets 46,905
---------
Equity
Share capital 5,698
Share premium 5,384
Merger reserve (399)
Share Based
Payment
Reserve 67
Treasury shares (4,183)
Capital
Redemption
Reserve 137
Retained
Earnings 40,201
---------
Total Equity 46,905
---------
Reconciliation of Net Assets
as at 1 October 2005
UK GAAP Opening Sharesave Tax Rent Dividend Currency Good Effect of
Balance Free will Transition
1 October Sheet IFRS 2 IAS 12 IAS 17 IAS 10 Exposures IFRS 3 to IFRS
2005 Adjustment IAS 39
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Non-current
assets
Goodwill 517 34 34
Property
Plant
& Equipment 32,072
Joint
venture
undertaking 225
-----
32,814 34 34
Current
assets
Inventories 25,338
Trade and
other
receivables
within
one year 4,071
Trade and
other
receivables
after
one year 115
Cash and
cash
equivalents 27,829
----------- --------- -------- ------- ------- -------- -------- ------- ---------
57,353
Total assets 90,167 34 34
Current
liabilities
Trade and
other
payables (18,503)
Current tax
liabilities (3,640)
Proposed
dividend (13,576) 13,593 (17) 13,576
Other
current
liabilities (4,056) (560) 6 (554)
Financial
liabilities 0 (25) (25)
----------- --------- -------- ------- ------- -------- -------- ------- ---------
(39,775) 13,033 6 (17) (25) 12,997
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Net current
assets 17,578 13,033 6 (17) (25) 12,997
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Non-current
liabilities (9,394)
Deferred
tax
liabilities (2,345) 1,020 20 (500) (2) 8 546
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Total
liabilities (51,514) 14,053 20 (500) 4 (17) (17) 13,543
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Net assets 38,653 14,053 20 (500) 4 (17) (17) 34 13,577
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Equity
Share capital 5,655 0
Share premium 5,575 0
Merger
reserve (399) 0
Share Based
Payment
Reserve 0 35 65 100
Treasury
Shares 0 0
Capital
Redemption
Reserve 190 0
Retained
Earnings 27,632 14,018 (45) (500) 4 (17) (17) 34 13,477
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Total equity 38,653 14,053 20 (500) 4 (17) (17) 34 13,577
----------- --------- -------- ------- ------- -------- -------- ------- ---------
Reconciliation of Net Assets
As at 1 October 2005
Closing position under
IFRS
1 October 2005
£'000
Non-current assets
Goodwill 551
Property Plant & Equipment 32,072
Joint venture undertaking 225
---------------
32,848
Current assets
Inventories 25,338
Trade and other receivables within one year 4,071
Trade and other receivables after one year 115
Cash and cash equivalents 27,829
---------------
57,353
Total assets 90,201
Current liabilities
Trade and other payables (18,503)
Current tax liabilities (3,640)
Proposed dividend 0
Other current liabilities (4,610)
Financial liabilities (25)
---------------
(26,778)
---------------
Net current assets 30,575
---------------
Non-current liabilities (9,394)
Deferred tax liabilities (1,799)
---------------
Total liabilities (37,971)
---------------
Net assets 52,230
---------------
Equity
Share capital 5,655
Share premium 5,575
Merger reserve (399)
Share Based Payment Reserve 100
Treasury Shares 0
Capital Redemption Reserve 190
Retained Earnings 41,109
---------------
Total Equity 52,230
---------------
Consolidated Group Income Statement
For the 26 weeks ended 2 April 2005
UK GAAP
Restated
offer
26 weeks Effect IFRS
ended of 26 weeks
2 April Sharesave Joint Leases Goodwill transfer ended
2005 Venture 2 April
Audited IFRS 2 IAS 31 IAS 17 IFRS 3 To IFRS 2005
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Group Revenue
- continuing
operations 87,482 87,482
Cost of Sales (33,359) (33,359)
---------- --------- ---------- --------- -------- ------- ----------
Gross Profit -
continuing
operations 54,123 54,123
Operating
Expenses
- employee
profit sharing (4,307) (4,307)
- distribution
costs (23,919) (23,919)
- other
operating
expenses (6,268) (32) (5) 17 (20) (6,288)
Share of
results of
joint venture 26 (21) (21) 5
---------- --------- ---------- --------- -------- ------- ----------
Group and
joint venture
share of
operating
profit 19,655 (32) (21) (5) 17 (41) 19,614
Other gains
and losses 1,719 1,719
Investment
revenue 374 13 13 387
---------- --------- ---------- --------- -------- ------- ----------
Profit before
taxation 21,748 (32) (8) (5) 17 (28) 21,720
Taxation (5,071) 10 8 2 20 (5,051)
---------- --------- ---------- --------- -------- ------- ----------
Profit for the
period attributable
to equity holders
of the company 16,677 (22) - (3) 17 (8) 16,669
---------- --------- ---------- --------- -------- ------- ----------
Earnings per
ordinary share
- basic 7.36p 7.36p
- diluted 7.29p 7.29p
Consolidated Group Income Statement
For the 52 weeks ended 1 October 2005
UK GAAP Restated
52 weeks Effect under IFRS
ended of 52 weeks
1 October Sharesave Joint Leases Goodwill transfer ended
2005 Venture 1 October
Audited IFRS 2 IAS 31 IAS 17 IFRS 3 To IFRS 2005
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Group Revenue
- continuing
operations 173,326 173,326
Cost of Sales (67,146) (67,146)
---------- --------- ---------- --------- -------- ------- ----------
Gross Profit -
continuing
operations 106,180 106,180
Operating
Expenses
- employee
profit sharing (7,502) (7,502)
- distribution
costs (46,348) (46,348)
- other
operating
expenses (15,496) (65) 6 34 (25) (15,521)
Share of
results of
joint venture 56 (43) (43) 13
---------- --------- ---------- --------- -------- ------- ----------
Group and joint
venture share
of operating
profit 36,890 (65) (43) 6 34 (68) 36,822
Other gains
and losses 1,700 1,700
Investment
revenue 642 27 27 669
---------- --------- ---------- --------- -------- ------- ----------
Profit before
taxation 39,232 (65) (16) 6 34 (41) 39,191
Taxation (9,043) 20 16 (2) 34 (9,009)
---------- --------- ---------- --------- -------- ------- ----------
Profit for the
period attributable
to equity holders
of the
company 30,189 (45) - 4 34 (7) 30,182
---------- --------- ---------- --------- -------- ------- ----------
Earnings per
ordinary share
- basic 13.34p 13.33p
- diluted 13.24p 13.24p
Consolidated Cashflow Statement
UK GAAP Restated under IFRS
52 weeks to 52 weeks to
1st October 2005 IFRS Adj 1st October 2005
£'000 £'000 £'000
Cashflow from Operating Activities
Profit before taxation 36,834 (75) 36,759
Adjustments for:
Depreciation 3,397 (34) 3,363
Investment income
Share option charge 65 65
Interest expense
(Inc)/Dec in trade/other debtors (267) (267)
increase in stocks (965) (965)
Inc/(Dec) in creditors (3,233) 57 (3,176)
-------------- --------- --------
Net Cash from Operating
Activities 35,766 13 35,779
Interest paid (308) (308)
Taxation paid (8,864) (8,864)
-------------- --------- -------
Net cash from operating
activities 26,594 13 26,607
Cashflows from Investing Activities
Purchase of Treasury
Shares (3,774) (3,774)
Interest Received 942 942
Purchase of
Property/plant/equipment (8,564) (8,564)
Proceeds of sale of
equipment 4,292 4,292
Loans advanced to JV's (13) (13)
Net cash used in
investment activities (7,104) (13) (7,117)
Cashflows from Financing Activities
Proceeds from issue of
share capital 721 721
Repayment of loans (517) (517)
New Loans
Dividends paid (21,489) (21,489)
-------------- --------- --------
Net cash used in
financing activities (21,285) (21,285)
Net Increase in Cash
Equivalents (1,795) - (1,795)
Cash and cash
equivalents at beginning
of period 29,624 - 29,624
-------------- --------- ------
Cash and cash
equivalents at end of
period 27,829 - 27,829
============== ========= ======
Consolidated Cashflow Statement
UK GAAP Restated under IFRS
26 weeks to 26 weeks to
2nd April 2005 IFRS Adj 2nd April 2005
£'000 £'000 £'000
Cashflow from Operating Activities
Profit before taxation 19,629 (27) 19,602
Adjustments for:
Depreciation 1,699 (17) 1,682
Investment income
Share option charge 32 32
Interest expense
(Inc)/Dec in trade/other debtors (189) (189)
increase in stocks (3,233) (3,233)
Inc/(Dec) in creditors (2,436) 17 (2,419)
--------------- --------- -------
Net Cash from Operating
Activities 15,470 5 15,475
Interest paid (165) (165)
Taxation paid (4,362) (4,362)
--------------- --------- -------
Net cash from operating
activities 10,943 5 10,948
Cashflows from Investing Activities
Purchase of Treasury
Shares (3,450) (3,450)
Interest Received 522 522
Purchase of
Property/plant/equipment (5,781) (5,781)
Proceeds of sale of
equipment 4,157 4,157
Loans advanced to JV's (5) (5)
------- ---- ---
Net cash used in
investment activities (4,552) (5) (4,557)
Cashflows from Financing Activities
Proceeds from issue of
share capital 521 521
Repayment of loans (517) (517)
New Loans
Dividends paid (13,285) (13,285)
--------------- --------- --------
Net cash used in
financing activities (13,281) (13,281)
Net Increase in Cash
Equivalents (6,890) - (6,890)
Cash and cash
equivalents at beginning
of period 29,624 - 29,624
--------------- --------- -------
Cash and cash
equivalents at end of
period 22,734 - 22,734
=============== ========= ======
This information is provided by RNS
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Friday, 10th January 2025
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