13th Jan 2006 07:01
Bespak PLC13 January 2006 For immediate release 13 January 2006 Bespak plc Adoption of International Financial Reporting Standards (IFRS) Bespak (LSE: BPK), a leader in specialty medical devices, today announces theimpact of the transition to IFRS in advance of publication on 18 January 2006 ofBespak's interim results for the 26 weeks to 29 October 2005, which representsBespak's first results under IFRS. Introduction Bespak plc has previously prepared consolidated financial statements under UKGenerally Accepted Accounting Principles (UK GAAP). From 1 May 2005, the Groupwill be reporting its financial results in accordance with InternationalFinancial Reporting Standards (IFRS) and International Accounting Standards(IAS) as adopted by the European Union (EU). Bespak's first results under IFRS will be the interim results for the 26 weeksto 29 October 2005, whilst the first annual report under IFRS will be for the 52weeks to 29 April 2006. Bespak's date of transition to IFRS is 2 May 2004, beingthe start of the earliest period of comparative information. The purpose of this statement is to present the effects of IFRS on Bespak at thedate of transition and for the half year and full year comparative periods. Therestatement of historical financial information is unaudited and has beenprepared on the basis of IFRS expected to be adopted by the EU by 29 April 2006.These standards are subject to ongoing review and interpretation and thereforemay be subject to change. Summary The adoption of IFRS represents an accounting change only, and does not affectthe underlying operations or cash flows of Bespak, although implementation ofthe new standards may result in increased volatility in reported results. Highlights of the figures under UK GAAP and IFRS are as follows: 26 weeks to 30 October 2004 52 weeks to 30 April 2005 UK GAAP IFRS Change UK GAAP IFRS Change £000 £000 £000 £000 Profit before tax and exceptionals* 5,709 5,659 -1% 11,450 10,882 -5%Profit before tax 1,842 1,792 -3% 5,384 4,816 -11% Earnings per share before exceptionals* 15.6p 15.4p -1% 32.8p 31.3p -5%Earnings per share 1.1p 0.9p -18% 10.2p 8.7p -15% Total equity 66,513 57,847 -13% 65,594 57,998 -12% * The exceptional operating expenses comprise impairment charges and cash costsassociated with closure of the manufacturing facility in North Carolina, UnitedStates. The most significant impacts on Bespak's results are in the following areas: • Share-based payments - an expense is included in theconsolidated income statement. • Pensions - the deficit in the defined benefit pensionscheme is included in the consolidated balance sheet, whilst the pension chargeis allocated between operating expenses and financing items in the consolidatedincome statement. • Dividends - these are recognised when the dividend isapproved or paid. Bespak will highlight individual items included in operating profit wherenecessary to ensure readers of the accounts have a full understanding of theperformance in any period. Reconciliation from UK GAAP to IFRS The following table summarises the impact of the adoption of IFRS on the profitbefore tax for the 26 weeks to 30 October 2004 and the 52 weeks to 30 April2005. Profit before tax 26 weeks to 52 weeks to 30 October 2004 30 April 2005 £000 £000 As reported under UK GAAP 1,842 5,384Share-based payments (65) (236)Pension charges (272) (486)Holiday pay 167 8Associates - 22Financial instruments 120 124Restated under IFRS 1,792 4,816 The following table summarises the impact of the adoption of IFRS on totalequity at 2 May 2004, at 30 October 2004 and at 30 April 2005. Total equity 2 May 2004 30 October 2004 30 April 2005 £000 £000 £000 As reported under UK GAAP 67,983 66,513 65,594Pension deficit (12,647) (15,210) (15,679)Holiday pay (289) (122) (281)Proposed dividend 3,237 1,875 3,241Financial instruments (36) 84 88Deferred taxation 4,070 4,707 5,035Restated under IFRS 62,318 57,847 57,998 Martin Hopcroft, Bespak's Finance Director, commented: "The adoption of IFRS represents an accounting change only, and does not affectthe underlying operations or cash flows of Bespak. The underlying economics areunchanged." For further information, please contact:Bespak plc Tel: +44 (0) 1908 525240Martin Hopcroft - Finance Director Buchanan Communications Tel: +44 (0) 20 7466 5000Tim Thompson / Mark Court / Mary-Jane Johnson About Bespak plc Bespak, a leader in specialty medical devices, develops new delivery systems forthe pharmaceutical industry and disposable airway management products forcritical care settings. Bespak's product range includes metered dose inhalers,dry powder devices, actuators, inflation valves, disposable face masks,breathing circuits and laryngeal tubes. The group, which has facilities inKing's Lynn and Milton Keynes in the UK and Indianapolis in the US, is a publiccompany quoted on the Official List of the London Stock Exchange (LSE: BPK). Formore information, please visit www.bespak.com. Bespak plc Adoption of International Financial Reporting Standards (IFRS) First time adoption of IFRS Bespak plc has presented restated financial information in accordance withInternational Financial Reporting Standards (IFRS) and International AccountingStandards (IAS) adopted by the International Accounting Standards Board (IASB)and interpretations issued by the International Financial ReportingInterpretations Committee of the IASB. IFRS1 (First-Time Adoption of International Financial Reporting Standards)details the rules for adopting IFRS for the first time in preparing consolidatedfinancial statements, together with optional exemptions to assist in thetransition to reporting under IFRS. Bespak has applied the following exemptions: • Business combinations - these have only been applied fromthe date of transition on 2 May 2004. • Share-based payments - a charge for share options andawards granted after 7 November 2002 that had not vested at 1 January 2005 hasbeen applied. • Pensions - all cumulative actuarial gains and losses inrespect of employee benefit schemes have been recognised at the date oftransition; actuarial gains and losses are recognised in full through theconsolidated statement of changes in equity in the period in which they arise. • Cumulative translation differences - the cumulativetranslation differences have been set to nil at the date of transition. Main changes arising from the transition from UK GAAP to IFRS Presentation of financial statements The primary statements have been presented in accordance with IAS 1(Presentation of Financial Statements). In the consolidated income statement,(i) net finance income combines interest income and interest expense on the faceof the income statement; (ii) the service cost for Bespak's defined benefitpension scheme is included in operating expenses whilst the net financing cost,for which there was no equivalent under UK GAAP, is included in finance costs;and (iii) the share of the profit of joint ventures and associates is nowpresented including its share of interest and tax. In the consolidated balancesheet, (i) assets and liabilities are analysed between current and non-current;(ii) current and deferred tax is shown separately; (iii) the defined benefitpension deficit is shown separately; (iv) cash includes short-term investmentsthat are readily convertible to cash; and (v) proposed dividends are excluded. Share-based payments Bespak operates a number of share-based incentive schemes. Under UK GAAP, whereshares are awarded to employees, UITF17 allows the charge to the profit and lossaccount to be based on the difference between the market value of the shares andthe exercise price (an intrinsic value basis) spread over the performanceperiod. SAYE schemes are exempt and no charge is made. Under IFRS, the charge tothe consolidated income statement is based on the fair value of share optionsand awards granted. The fair value of the equity instrument is measured at grantdate and spread over the vesting period through the income statement with acorresponding increase in equity. The fair value of the share options and awardshas been measured using a Black-Scholes model, as revised to take account ofmarket based conditions. Bespak has applied IFRS2 only to share options andawards granted after 7 November 2002 that had not vested at 1 January 2005.Future charges are expected to rise in view of the value of subsequent awards,in particular as the new long term incentive programme is introduced. Pensions Under UK GAAP, there was a defined benefit pension charge within operatingexpenses in the consolidated income statement. Under IFRS, this is allocatedbetween operating expenses and financing costs (reflecting the differencebetween the expected returns on scheme assets and scheme liabilities). Thedefined benefit pension scheme deficit is included in the consolidated balancesheet. Holiday pay Under Bespak's UK GAAP accounting policy, holiday pay was only accrued whererequired by local accounting regulations. IFRS requires holiday pay to beaccrued for all employees. Dividends Under IFRS, interim dividends are recognised when paid, whilst final dividendsare recognised when approved by shareholders at the annual general meeting.Dividends are no longer shown on the face of the consolidated income statementbut as a movement in equity. Intangible assets Under IFRS, the policy on intangible assets is to capitalise all such assetswhere they meet the specified criteria in IAS38. In respect of internal productdevelopment expenditure, it is management's view that it is not possible todemonstrate with sufficient certainty, prior to customer and regulatoryapproval, that these criteria are currently met. Consequently no internaldevelopment costs have been capitalised. Capitalised software costs that are not an integral part of the related hardwarehave been reclassified as intangible fixed assets. Software reclassification hasnot resulted in a revision of useful economic lives and has not affectedreported profits. Financial Instruments Under IFRS, all derivative financial instruments are recognised as assets orliabilities in the consolidated balance sheet at fair value. Gains and lossesare recognised in the consolidated income statement unless they meet thedefinition of a cash flow hedge under IAS 39, in which case the element of thegains and losses that fulfil the hedge effectiveness criteria are taken directlyto equity. Bespak's hedging strategy is unchanged in respect of hedging the net investmentposition of foreign subsidiaries and covering the transactional risk of foreigncurrency sales and purchases. However, the stricter designation, documentationrequirements and effectiveness testing needed to qualify for hedge accountingunder IFRS means that transactions undertaken as hedges under UK GAAP may notqualify for the same treatment under IFRS. Deferred taxation Deferred tax is required to be provided on all temporary differences under IFRSrather than timing differences under UK GAAP. The deferred tax asset has beenoffset against the deferred tax liability in the consolidated balance sheet, asthe deferred income taxes relate to the same fiscal authority. Consolidated Income Statements (unaudited) 26 weeks to 52 weeks to 30 October 2004 30 April 2005 £000 £000 Sales of products and services 38,344 77,894 Sales of tooling and equipment 595 1,492 Revenue 38,939 79,386 Operating expenses (33,414) (68,831) Exceptional operating expenses (3,867) (6,066) Operating profit 1,658 4,489 Operating profit before exceptionals 5,525 10,555Exceptional operating expenses (3,867) (6,066)Operating profit 1,658 4,489 Net finance income 156 344 Share of joint ventures and associates (22) (17) Profit before tax 1,792 4,816 Taxation (1,540) (2,498) Profit for the financial period 252 2,318 Basic earnings per share before exceptionals 15.4p 31.3pBasic earnings per share on exceptionals (14.5p) (22.6p)Basic earnings per share 0.9p 8.7p All amounts relate to continuing activities. The exceptional operating expenses comprise impairment charges and cash costsassociated with the closure of the manufacturing facility in North Carolina,United States. Consolidated Balance Sheets (unaudited) 2 May 2004 30 October 2004 30 April 2005 £000 £000 £000 Non-current assetsProperty, plant and equipment 60,182 53,154 51,159Intangible assets 297 205 130Investment in associates 308 286 269Available-for-sale financial assets 235 236 77 61,022 53,881 51,635 Current assetsInventories 5,996 4,982 6,082Trade and other receivables 10,615 11,962 14,616Financial instruments - 84 88Cash and cash equivalents 19,970 21,114 20,302 36,581 38,142 41,088 Current liabilitiesShort-term borrowings and overdrafts (7,650) (6,084) (2,887)Financial instruments (36) - -Trade and other payables (10,778) (9,006) (11,621)Current tax liabilities (1,316) (1,816) (1,618)Provisions - - (2,054) (19,780) (16,906) (18,180) Net current assets 16,801 21,236 22,908 Non-current liabilitiesDeferred taxation (1,653) (919) (443)Retirement benefit obligations (12,773) (15,285) (15,703)Provisions (281) (268) -Other liabilities (798) (798) (399) (15,505) (17,270) (16,545) Net assets 62,318 57,847 57,998 Shareholders' equityShare capital 2,681 2,681 2,681Share premium 23,052 23,051 23,051Other reserves 36,585 32,115 32,266Total equity 62,318 57,847 57,998 Consolidated Cash Flow Statements (unaudited) 26 weeks to 52 weeks to 30 October 2004 30 April 2005 £000 £000 Cash flows from operating activitiesOperating profit before taxation 1,658 4,489Depreciation 3,961 7,637Impairment charge 3,867 3,784Increase in working capital (2,257) (4,142)Increase in provisions 11 1,887Other non-cash movements 265 563Cash generated from operations 7,505 14,218Interest paid (59) (157)Tax paid (1,120) (2,608)Net cash inflow from operating activities 6,326 11,453 Cash flows from investing activitiesPurchases of property, plant and equipment (1,016) (2,590)Proceeds from sale of property, plant & equipment - 4Purchase of other assets (8) -Disposal of other assets - 66Interest received 422 900Net cash used in investing activities (602) (1,620) Cash flows from financing activitiesNet proceeds from issue of ordinary share capital 10 12Equity dividends paid to shareholders (3,237) (5,111)Net cash used in financing activities (3,227) (5,099) Net increase in cash and cash equivalents 2,497 4,734 Effects of exchange rate changes 213 361Cash and cash equivalents at start of period 12,320 12,320Cash and cash equivalents at end of period 15,030 17,415 Cash and cash equivalents consists of:Cash and cash equivalents 21,114 20,302Overdrafts and short-term loans (6,084) (2,887) 15,030 17,415 Consolidated Statements of Changes in Equity (unaudited) Share Share Other capital premium reserves Total £000 £000 £000 £000 At 2 May 2004 - as previously reported (UK GAAP) 2,681 23,052 42,250 67,983Changes relating to the first time adoption of IFRS - - (5,665) (5,665)At 2 May 2004 - restated (IFRS) 2,681 23,052 36,585 62,318Profit for the period - - 252 252Exchange differences on translation of foreign subsidiaries - - (39) (39)Movements due to share-based payments - (1) 158 157Actuarial losses on defined benefit pension scheme - - (2,291) (2,291)Taxation on items taken directly to equity - - 687 687Equity dividends - - (3,237) (3,237)At 30 October 2004 - restated (IFRS) 2,681 23,051 32,115 57,847 At 2 May 2004 - as previously reported (UK GAAP) 2,681 23,052 42,250 67,983Changes relating to the first time adoption of IFRS - - (5,665) (5,665)At 2 May 2004 - restated (IFRS) 2,681 23,052 36,585 62,318Profit for the period - - 2,318 2,318Exchange differences on translation of foreign subsidiaries - - (142) (142)Movements due to share-based payments - (1) 398 397Actuarial losses on defined benefit pension scheme - - (2,546) (2,546)Taxation on items taken directly to equity - - 764 764Equity dividends - - (5,111) (5,111)At 30 April 2005 - restated (IFRS) 2,681 23,051 32,266 57,998 Summary of significant accounting policies The significant accounting policies which are expected to be adopted in thepreparation of Bespak's IFRS financial statements are set out below: Basis of preparation The financial statements have been prepared on the historical cost basis, exceptfor certain financial instruments and pension assets and liabilities that aremeasured at fair value. The preparation of financial statements in conformity with generally acceptedaccounting principles requires the use of estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period. Although theseestimates are based on management's best knowledge of current events andactions, actual results ultimately may differ from those estimates. There is still some uncertainty over the IFRS policies that will be applied dueto the potential issuance of new standards and the amendment of existingstandards by the IASB. Consolidation The financial statements include the financial statements of the company and allthe subsidiaries and associated undertakings during the years reported for theperiods during which they were members of Bespak. Intra-group balances betweengroup companies are eliminated on consolidation. Legacy goodwill has not been restated, however for all future acquisitions,assets and liabilities of subsidiaries will be measured at their fair values atthe date of acquisition with any excess of the cost of acquisition over thisvalue being capitalised as goodwill. Interest in joint venture A joint venture is a contractual arrangement whereby Bespak and other partiesundertake an economic activity that is subject to joint control. Bespak'sinterest in the results and assets and liabilities of the joint venture areincluded in the financial statements using the equity method of accounting. Revenue Revenue from sales of products is recognised when goods are delivered and riskpasses to the customer, and is stated net of agency arrangements, value addedtax and other sales taxes. Revenue from sales of services is recognised in theperiod in which the related chargeable costs are incurred or when revenue isearned under contractual obligations. Revenue from sales of tooling andequipment is recognised on acceptance by the customer. Foreign currencies Items included in the financial statements of each of Bespak's entities aremeasured using the currency of the primary economic environment in which theentity operates. The consolidated financial statements are presented insterling, which is Bespak's functional and presentational currency. Foreign currency transactions are translated into the functional currency usingthe exchange rates prevailing at the dates of the transactions. Foreign exchangegains and losses resulting from the settlement of such transactions and from thetranslation at year-end exchange rates of monetary assets and liabilitiesdenominated in foreign currencies are recognised in the consolidated incomestatement. Foreign exchange gains and losses resulting from the settlement offoreign currency transactions and from the translation at the year end exchangerate of monetary assets and liabilities denominated in foreign currencies arerecognised in the consolidated income statement, except where hedge accountingis applied. The results and financial position of all group companies that have a functionalcurrency different from the presentational currency are translated into thepresentational currency with (i) assets and liabilities for each balance sheettranslated at the closing rate at the date of that balance sheet; (ii) incomeand expenses for each income statement translated at average exchange rates; and(iii) all resulting exchange differences recognised as a separate component ofequity (cumulative translation adjustment). Exchange differences arising from the translation of the net investment inforeign entities, and of borrowings and other currency instruments designated ashedges of such investments, are taken to shareholders' equity on consolidation. Goodwill and fair value adjustments arising on the acquisition of a foreignentity are treated as assets and liabilities of the foreign entity andtranslated at the closing rate. Property, plant and equipment Property, plant and equipment is stated at cost including any incidental costsof acquisition. The cost of fixed assets is written off on a straight-line basisover their expected useful lives as follows: - Freehold buildings & leasehold buildings 30 to 50 years- Cleanrooms 20 years- Building services 10 to 20 years- Plant, equipment and vehicles 3 to 10 years Cleanrooms and building services are categorised within plant and equipment.Land is not depreciated. Assets under construction The costs of property, plant and equipment are capitalised as incurred and arenot depreciated until such time as the assets are commissioned, when the totalcosts are transferred to the appropriate asset category. Intangible fixed assets Goodwill, representing the excess of purchase consideration over fair value ofnet assets acquired, is capitalised. Goodwill is not amortised but is reviewedfor impairment annually. Purchased intangibles, including purchased patents, know-how, trademarks,software licences and distribution rights are capitalised at cost and amortisedon a straight-line basis over their estimated useful economic lives. Theestimated useful life of an intangible asset ranges between 3 and 20 years,depending on its nature. Research and development expenditure In respect of internal product development expenditure, Bespak considers that itis not possible to demonstrate with sufficient certainty that a project will becommercially viable prior to customer and regulatory approval. Consequently,expenditure on research and development is expensed as incurred. Impairment of assets Goodwill arising on acquisition is allocated to cash-generating units(equivalent to the reported primary business segments). The recoverable amountof the cash-generating unit to which goodwill has been allocated is tested forimpairment annually or when events or changes in circumstance indicate that itmight be impaired. The carrying values of property, plant and equipment, and intangible assets withfinite lives are reviewed for impairment when events or changes in circumstanceindicate the carrying value may not be recoverable. If any such indicationexists, the recoverable amount of the asset is estimated in order to determinethe extent of impairment loss. Where it is not possible to identify separatecash flows relating to individual assets, Bespak estimates the recoverableamount of the cash-generating unit to which it belongs. Leasing Commitments Rentals payable under operating leases are charged to income on a straight-linebasis over the term of the relevant lease. Inventories Inventories and work in progress are stated at the lower of cost and netrealisable value. Cost comprises the direct cost of production and theattributable portion of overheads based on normal operating capacity appropriateto location and con-dition. Taxation The charge for current taxation is based on the results for the year as adjustedfor items that are non-assessable or disallowed. It is calculated using ratesthat have been enacted, or substantially enacted, by the balance sheet date. Deferred taxation is accounted for in full using the balance sheet liabilitymethod in respect of temporary differences arising from differences between thecarrying amount of assets and liabilities in the financial statements and thecorresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognised for all taxable temporary differencesexcept in respect of investments in subsidiaries and interests in joint ventureswhere Bespak is able to control the reversal of the temporary difference and itis probable that the temporary difference will not reverse in the foreseeablefuture. Deferred tax assets are recognised to the extent that it is probable that futuretaxable profit will be available against which the temporary difference can beutilised. Their carrying amount is reviewed at each balance sheet date on thesame basis. Deferred tax is measured on an undiscounted basis, and at the tax rates that areexpected to apply in the periods in which the asset or liability is settled. Itis recognised in the consolidated income statement except when it relates toitems credited or charged directly to shareholders' equity, in which case thedeferred tax is also dealt with in shareholders' equity. Share-based payments The Group operates a number of executive and employee share schemes. For allgrants of share options and awards, the fair value as at the date of grant iscalculated using an option pricing model and the corresponding expense isrecognised over the vesting period. Post retirement benefits In respect of Bespak's defined benefit scheme, the employer's portion of pastand current service cost is charged as an operating expense, with the interestcost net of expected return on assets in the plans reported as a financing item.Actuarial gains or losses are recognised directly in shareholders' equity suchthat the consolidated balance sheet reflects the scheme's surplus or deficit asat the balance sheet date. Contributions to defined contribution plans are charged to operating profit asthey become payable. Financial Instruments Financial instruments are initially recorded at fair value and subsequentlyre-measured to fair value or amortised cost at subsequent balance sheet dates.Changes in fair value are taken to the consolidated income statement, with otherchanges taken to shareholders' equity. Consolidated Income Statement (unaudited) - Reconciliation from UK GAAP to IFRS For the 26 weeks to 30 October 2004 UK GAAP IFRS2 IAS19 IAS19 As Share-based Retirement Employee previously payments benefits benefits reported £000 £000 £000 £000 Sales of products and services 38,344 - - -Sales of tooling and equipment 595 - - -Revenue 38,939 - - -Operating expenses (33,570) (65) (66) 167Exceptional operating expenses (3,867) - - -Operating profit 1,502 (65) (66) 167Operating profit before exceptionals 5,369 (65) (66) 167Exceptional operating expenses (3,867) - - -Operating profit 1,502 (65) (66) 167Net finance income 362 - (206) -Share of joint ventures and associates (22) - - -Profit before tax 1,842 (65) (272) 167Taxation (1,536) - 82 (50)Profit for the financial period 306 (65) (190) 117 Basic earnings per share before exceptionals 15.6p (0.2p) (0.7p) 0.4pBasic earnings per share on exceptionals (14.5p) - - -Basic earnings per share 1.1p (0.2p) (0.7p) 0.4p Consolidated Income Statement (unaudited) - Reconciliation from UK GAAP to IFRS For the 26 weeks to 30 October 2004 - continued IAS28 IAS39 IFRS Share of Financial Total effect Restated joint instruments of IFRS ventures & transition associates £000 £000 £000 £000 Sales of products and services - - - 38,344Sales of tooling and equipment - - - 595Revenue - - - 38,939Operating expenses - 120 156 (33,414)Exceptional operating expenses - - - (3,867)Operating profit - 120 156 1,658Operating profit before exceptionals - 120 156 5,525Exceptional operating expenses - - - (3,867)Operating profit - 120 156 1,658Net finance income - - (206) 156Share of joint ventures and associates - - - (22)Profit before tax - 120 (50) 1,792Taxation - (36) (4) (1,540)Profit for the financial period - 84 (54) 252 Basic earnings per share before exceptionals - 0.3p (0.2p) 15.4pBasic earnings per share on exceptionals - - - (14.5p)Basic earnings per share - 0.3p (0.2p) 0.9p Consolidated Income Statement (unaudited) - Reconciliation from UK GAAP to IFRS For the 52 weeks to 30 April 2005 UK GAAP IFRS2 IAS19 IAS19 As Share-based Retirement Employee previously payments benefits benefits reported £000 £000 £000 £000 Sales of products and services 77,894 - - -Sales of tooling and equipment 1,492 - - -Revenue 79,386 - - -Operating expenses (68,634) (236) (93) 8Exceptional operating expenses (6,066) - - -Operating profit 4,686 (236) (93) 8Operating profit before exceptionals 10,752 (236) (93) 8Exceptional operating expenses (6,066) - - -Operating profit 4,686 (236) (93) 8Net finance income 737 - (393) -Share of joint ventures and associates (39) - - -Profit before tax 5,384 (236) (486) 8Taxation (2,656) 73 146 (2)Profit for the financial period 2,728 (163) (340) 6 Basic earnings per share before exceptionals 32.8p (0.6p) (1.2p) -Basic earnings per share on exceptionals (22.6p) - - -Basic earnings per share 10.2p (0.6p) (1.2p) - Consolidated Income Statement (unaudited) - Reconciliation from UK GAAP to IFRS For the 52 weeks to 30 April 2005 - continued IAS28 IAS39 IFRS Share of Financial Total effect Restated joint instruments of IFRS ventures & transition associates £000 £000 £000 £000 Sales of products and services - - - 77,894Sales of tooling and equipment - - - 1,492Revenue - - - 79,386Operating expenses - 124 (197) (68,831)Exceptional operating expenses - - - (6,066)Operating profit - 124 (197) 4,489Operating profit before exceptionals - 124 (197) 10,555Exceptional operating expenses - - - (6,066)Operating profit - 124 (197) 4,489Net finance income - - (393) 344Share of joint ventures and associates 22 - 22 (17)Profit before tax 22 124 (568) 4,816Taxation (22) (37) 158 (2,498)Profit for the financial period - 87 (410) 2,318 Basic earnings per share before exceptionals - 0.3p (1.5p) 31.3pBasic earnings per share on exceptionals - - - (22.6p)Basic earnings per share - 0.3p (1.5p) 8.7p Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 2 May 2004 UK GAAP IAS1 IFRS2 IAS7 IAS10 As Opening balance Share-based Cash & cash Events after the previously sheet adjustment payments equivalents balance sheet date reported Presentation of financial statements £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and 60,479 - - - - -equipmentIntangible assets - - - - - -Investment in 308 - - - - -associatesAvailable-for-sale 235 - - - - -financial assetsDeferred tax assets - - - 178 - - 61,022 - - 178 - - Current assetsInventories 5,996 - - - - -Trade and other 10,615 - - - - -receivablesFinancial - - - - - -instrumentsShort-term 17,739 - - - (17,739) -investmentsCash and cash 2,231 - - - 17,739 -equivalents 36,581 - - - - - Current liabilitiesShort-term (7,650) - - - - -borrowings andoverdraftsFinancial - - - - - -instrumentsTrade and other (10,489) - - - - -payablesCurrent tax (1,316) - - - - -liabilitiesProposed dividend (3,237) - - - - 3,237Provisions - - - - - - (22,692) - - - - 3,237 Net current assets 13,889 - - - - 3,237 Non-currentliabilitiesDeferred taxation (5,723) - - - - -Retirement benefit - - - - - -obligationsProvisions (407) - - - - -Other liabilities (798) - - - - - (6,928) - - - - - Net assets 67,983 - - 178 - 3,237 Shareholders' equityShare capital 2,681 - - - - -Share premium 23,052 - - - - -Other reserves 42,250 - - 178 - 3,237Total equity 67,983 - - 178 - 3,237 Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 2 May 2004 - continued IAS12 IAS19 IAS19 IAS38 IAS39 IFRS Income Retirementbenefits Employee Intangible Financial Total Restated taxes benefits assets instruments effect of IFRS transition £000 £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and equipment - - - (297) - (297) 60,182Intangible assets - - - 297 - 297 297Investment in associates - - - - - - 308Available-for-sale financial - - - - - - 235assetsDeferred tax assets (4,070) 3,794 87 - 11 - - (4,070) 3,794 87 - 11 - 61,022 Current assetsInventories - - - - - - 5,996Trade and other receivables - - - - - - 10,615Financial instruments - - - - - - -Short-term investments - - - - - (17,739) -Cash and cash equivalents - - - - - 17,739 19,970 - - - - - - 36,581 Current liabilitiesShort-term borrowings and - - - - - - (7,650)overdraftsFinancial instruments - - - - (36) (36) (36)Trade and other payables - - (289) - - (289) (10,778)Current tax liabilities - - - - - - (1,316)Proposed dividend - - - - - 3,237 -Provisions - - - - - - - - - (289) - (36) 2,912 (19,780) Net current assets - - (289) - - 2,912 16,801 Non-current liabilitiesDeferred taxation 4,070 - - - - 4,070 (1,653)Retirement benefit - (12,773) - - - (12,773) (12,773)obligationsProvisions - 126 - - - 126 (281)Other liabilities - - - - - - (798) 4,070 (12,647) - - (36) (8,577) (15,505) Net assets - (8,853) (202) - (25) (5,665) 62,318 Shareholders' equityShare capital - - - - - - 2,681Share premium - - - - - - 23,052Other reserves - (8,853) (202) - (25) (5,665) 36,585Total equity - (8,853) (202) - (25) (5,665) 62,318 Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 30 October 2004 UK IAS1 IFRS2 IAS7 IAS10 GAAP As Opening Share-based Cash & cash Events previously balance Presentation payments equivalents after the reported sheet of financial balance adjustment statements sheet date £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and equipment 53,359 (297) - - - -Intangible assets - 297 - - - -Investment in associates 286 - - - - -Available-for-sale financial 236 - - - - -assetsDeferred tax assets - - - (46) - - 53,881 - - (46) - - Current assetsInventories 4,982 - - - - -Trade and other receivables 11,962 - - - - -Financial instruments - - - - - -Short-term investments 19,246 (17,739) - - (1,507) -Cash and cash equivalents 1,868 17,739 - - 1,507 - 38,058 - - - - - Current liabilitiesShort-term borrowings and (6,084) - - - - -overdraftsFinancial instruments - (36) - - - -Trade and other payables (8,884) (289) - - - -Current tax liabilities (1,816) - - - - -Proposed dividend (1,875) 3,237 - - - (1,362)Provisions - - - - - - (18,659) 2,912 - - - (1,362) Net current assets 19,399 2,912 - - - (1,362) Non-current liabilitiesDeferred taxation (5,626) 4,070 - - - -Retirement benefit obligations - (12,773) - - - -Provisions (343) 126 - - - -Other liabilities (798) - - - - - (6,767) (8,577) - - - - Net assets 66,513 (5,665) - (46) - (1,362) Shareholders' equityShare capital 2,681 - - - - -Share premium 23,051 - - - - -Other reserves 40,781 (5,665) - (46) - (1,362)Total equity 66,513 (5,665) - (46) - (1,362) Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 30 October 2004 - continued IAS12 IAS19 IAS19 IAS38 IAS39 IFRS Income Retirement Employee Intangible Financial Total effect Restated taxes benefits benefits assets instruments of IFRS transition £000 £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and equipment - - - 92 - (205) 53,154Intangible assets - - - (92) - 205 205Investment in associates - - - - - - 286Available-for-sale financial - - - - - - 236assetsDeferred tax assets (662) 769 (50) - (11) - - (662) 769 (50) - (11) - 53,881 Current assetsInventories - - - - - - 4,982Trade and other receivables - - - - - - 11,962Financial instruments - - - - 84 84 84Short-term investments - - - - - (19,246) -Cash and cash equivalents - - - - - 19,246 21,114 - - - - 84 84 38,142 Current liabilitiesShort-term borrowings and - - - - - - (6,084)overdraftsFinancial instruments - - - - 36 - -Trade and other payables - - 167 - - (122) (9,006)Current tax liabilities - - - - - - (1,816)Proposed dividend - - - - - 1,875 -Provisions - - - - - - - - - 167 - 36 1,753 (16,906) Net current assets - - 167 - 120 1,837 21,236 Non-current liabilitiesDeferred taxation 662 - - - (25) 4,707 (919)Retirement benefit obligations - (2,512) - - - (15,285) (15,285)Provisions - (51) - - - 75 (268)Other liabilities - - - - - - (798) 662 (2,563) - - (25) (10,503) (17,270) Net assets - (1,794) 117 - 84 (8,666) 57,847 Shareholders' equityShare capital - - - - - - 2,681Share premium - - - - - - 23,051Other reserves - (1,794) 117 - 84 (8,666) 32,115Total equity - (1,794) 117 - 84 (8,666) 57,847 Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 30 April 2005 UK GAAP IAS1 IFRS2 IAS7 IAS10 As Opening Share-based Cash & cash Events previously balance Presentation payments equivalents after the reported sheet of financial balance adjustment statements sheet date £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and equipment 51,289 (297) - - - -Intangible assets - 297 - - - -Investment in associates 269 - - - - -Available-for-sale financial 77 - - - - -assetsDeferred tax assets - - - 94 - - 51,635 - - 94 - - Current assetsInventories 6,082 - - - - -Trade and other receivables 14,616 - - - - -Financial instruments - - - - - -Short-term investments 15,229 (17,739) - - 2,510 -Cash and cash equivalents 5,073 17,739 - - (2,510) - 41,000 - - - - - Current liabilitiesShort-term borrowings and (2,887) - - - - -overdraftsFinancial instruments - (36) - - - -Trade and other payables (11,340) (289) - - - -Current tax liabilities (1,618) - - - - -Proposed dividend (3,241) 3,237 - - - 4Provisions - - (2,054) - - - (19,086) 2,912 (2,054) - - 4 Net current assets 21,914 2,912 (2,054) - - 4 Non-current liabilitiesDeferred taxation (5,478) 4,070 - - - -Retirement benefit obligations - (12,773) - - - -Provisions (2,078) 126 2,054 - - -Other liabilities (399) - - - - - (7,955) (8,577) 2,054 - - - Net assets 65,594 (5,665) - 94 - 4 Shareholders' equityShare capital 2,681 - - - - -Share premium 23,051 - - - - -Other reserves 39,862 (5,665) - 94 - 4Total equity 65,594 (5,665) - 94 - 4 Consolidated Balance Sheet (unaudited) - Reconciliation from UK GAAP to IFRS At 30 April 2005 - continued IAS12 IAS19 IAS19 IAS38 IAS39 IFRS Income Retirement Employee Intangible Financial Total effect Restated taxes benefits benefits assets instruments of IFRS transition £000 £000 £000 £000 £000 £000 £000 Non-current assetsProperty, plant and equipment - - - 167 - (130) 51,159Intangible assets - - - (167) - 130 130Investment in associates - - - - - - 269Available-for-sale financial - - - - - - 77assetsDeferred tax assets (991) 910 (2) - (11) - - (991) 910 (2) - (11) - 51,635 Current assetsInventories - - - - - - 6,082Trade and other receivables - - - - - - 14,616Financial instruments - - - - 88 88 88Short-term investments - - - - - (15,229) -Cash and cash equivalents - - - - - 15,229 20,302 - - - - 88 88 41,088 Current liabilitiesShort-term borrowings and - - - - - - (2,887)overdraftsFinancial instruments - - - - 36 - -Trade and other payables - - 8 - - (281) (11,621)Current tax liabilities - - - - - - (1,618)Proposed dividend - - - - - 3,241 -Provisions - - - - - (2,054) (2,054) - - 8 - 36 906 (18,180) Net current assets - - 8 - 124 994 22,908 Non-current liabilitiesDeferred taxation 991 - - - (26) 5,035 (443)Retirement benefit obligations - (2,930) - - - (15,703) (15,703)Provisions - (102) - - - 2,078 -Other liabilities - - - - - - (399) 991 (3,032) - - (26) (8,590) (16,545) Net assets - (2,122) 6 - 87 (7,596) 57,998 Shareholders' equityShare capital - - - - - - 2,681Share premium - - - - - - 23,051Other reserves - (2,122) 6 - 87 (7,596) 32,266Total equity - (2,122) 6 - 87 (7,596) 57,998 Consolidated Statement of Changes in Equity (unaudited) - Reconciliation from UKGAAP to IFRS For the 26 weeks to 30 October 2004 UK GAAP IAS1 IFRS2 IAS7 IAS10 As Opening Share-based Cash & cash Events after previously balance Presentation payments equivalents the balance reported sheet of financial sheet date adjustment statements £000 £000 £000 £000 £000 £000 At 2 May 2004 67,983 (5,665) - - - -Profit for the period 306 - - (65) - -Equity dividends (1,875) - - - - (1,362)Exchange movements (39) - - - - -Movements due to share-based - - - 19 - -paymentsActuarial losses on pension - - - - - -schemePayment for ordinary shares 10 - - - - -Credit in respect of employee 128 - - - - -share schemesAt 30 October 2004 66,513 (5,665) - (46) - (1,362) Consolidated Statement of Changes in Equity (unaudited) - Reconciliation from UKGAAP to IFRS For the 26 weeks to 30 October 2004 - continued IAS12 IAS19 IAS19 IAS38 IAS39 IFRS Income Retirement Employee Intangible Financial Total effect Restated taxes benefits benefits assets instruments of IFRS transition £000 £000 £000 £000 £000 £000 £000 At 2 May 2004 - - - - - (5,665) 62,318Profit for the period - (190) 117 - 84 (54) 252Equity dividends - - - - - (1,362) (3,237)Exchange movements - - - - - - (39)Movements due to share-based - - - - - 19 19paymentsActuarial losses on pension - (1,604) - - - (1,604) (1,604)schemePayment for ordinary shares - - - - - - 10Credit in respect of employee - - - - - - 128share schemesAt 30 October 2004 - (1,794) 117 - 84 (8,666) 57,847 Consolidated Statement of Changes in Equity (unaudited) - Reconciliation from UKGAAP to IFRS For the 52 weeks to 30 April 2005 UK GAAP IAS1 IFRS2 IAS7 IAS10 As Opening Share-based Cash & cash Events previously balance payments equivalents after the reported sheet Presentation balance adjustment of financial sheet date statements £000 £000 £000 £000 £000 £000 At 2 May 2004 67,983 (5,665) - - - -Profit for the period 2,728 - - (163) - -Equity dividends (5,115) - - - - 4Exchange movements (142) - - - - -Movements due to share-based - - - 257 - -paymentsActuarial losses on pension - - - - - -schemePayment for ordinary shares 12 - - - - -Credit in respect of employee 128 - - - - -share schemesAt 30 April 2005 65,594 (5,665) - 94 - 4 Consolidated Statement of Changes in Equity (unaudited) - Reconciliation from UKGAAP to IFRS For the 52 weeks to 30 April 2005 - continued IAS12 IAS19 IAS19 IAS38 IAS39 IFRS Income Retirement Employee Intangible Financial Total effect Restated taxes benefits benefits assets instruments of IFRS transition £000 £000 £000 £000 £000 £000 £000 At 2 May 2004 - - - - - (5,665) 62,318Profit for the period - (340) 6 - 87 (410) 2,318Equity dividends - - - - - 4 (5,111)Exchange movements - - - - - - (142)Movements due to share-based - - - - - 257 257paymentsActuarial losses on pension - (1,782) - - - (1,782) (1,782)schemePayment for ordinary shares - - - - - - 12Credit in respect of employee - - - - - - 128share schemesAt 30 April 2005 - (2,122) 6 - 87 (7,596) 57,998 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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