14th Apr 2008 12:22
Redhall Group PLC14 April 2008 Redhall Group plc Adoption of International Financial Reporting Standards Redhall Group plc ("Redhall" or "the Group"), the specialist engineering supportservices group, has previously prepared its financial statements using UnitedKingdom Generally Accepted Accounting Practice ("UK GAAP") but will report itsresults for the year ending 30 September 2008 under International FinancialReporting Standards ("IFRS"). The Group's first published financial statements under IFRS will be for the sixmonth period ending 31 March 2008, which will include comparative numbers forthe six month period ended 31 March 2007 and also for the year ended 30September 2007 restated to IFRS from UK GAAP. Redhall's date of transition toIFRS was 1 October 2006. The Directors have prepared a document ("Transition Document") which explainsthe impact of the adoption of IFRS on the trading results and net assets of theGroup. The Transition Document, which can be viewed on the Group's website(www.redhallgroup.co.uk/ir-pr.asp), shows that the adoption of IFRS has not,overall, had a material impact. Other than presentational differences for bothperiods, the most significant impact has been a reduction in amortisationcharges, an increase in the tax charge and a decrease in the deferred tax asseton the balance sheet for the year ended 30 September 2007. For the period ended31 March 2007 the most material impact has been a decrease in amortisationcharges and a decrease in the deferred tax asset on the balance sheet. TheGroup's adjusted diluted earnings per share are reduced under IFRS due to anincrease in the tax charge because of the differing treatment of deferred taxunder IFRS compared with UK GAAP. The adoption of IFRS has no effect on the Group's strategy, cash flows or netdebt position. The following table summarises the impact of IFRS on key elements of the Group'sresults: Year ended 30 September 2007 Period ended 31 March 2007 UK GAAP IFRS UK GAAP IFRS audited unaudited unaudited unaudited £'000 £'000 £'000 £'000Consolidated income statementRevenue 57,049 57,049 22,268 22,268 Operating profit 2,211 2,324 784 793 Adjusted EBITA* 2,467 2,467 918 918 Profit before tax 2,169 2,282 760 769 Adjusted PBTA** 2,425 2,425 894 894 Basic earnings per share (pence per share) 11.02p 11.42p 4.67p 4.75p Diluted earnings per share (pence per share) 10.75p 11.14p 4.53p 4.61p Adjusted diluted earnings per share (pence per 12.14p 11.72p 4.71p 4.71pshare)*** Consolidated balance sheetNet assets 17,962 17,907 4,600 4,333 Net (debt)/cash (1,294) (1,294) 1,025 1,025 Consolidated statement of cash flowsCash generated from operations**** 2,583 2,583 675 675 * Adjusted EBITA comprises profit on ordinary activities before interest, tax, amortisation of intangible assets and share based payment charge. ** Adjusted PBTA comprises profit before tax, amortisation of intangible assets and share based payment charge. *** Adjusted to exclude the effect of the amortisation of intangible assets and share based payment charge. ****Adjusted to exclude special pension contribution. For more information please contact: Redhall Group plc Tel: +44 (0)1924 385 386David Jackson, Chairman and Chief ExecutiveChris Lewis-Jones, Finance Director Altium Tel: +44 (0)161 831 9133Phil Adams/Paul Lines This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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