23rd Jun 2005 07:00
Kesa Electricals plc23 June 2005 Thursday 23 June 2005 Adoption of International Financial Reporting Standards Kesa Electricals plc announces that it will be making a presentation to analystsat 11.30 am today detailing the impact of the adoption by Kesa Electricals plcof International Financial Reporting Standards. Kesa has in the past prepared its financial statements in accordance with UKGenerally Accepted Accounting Principles (UK GAAP). Following a European UnionRegulation issued on 19 July 2002, Kesa is required to report its results inaccordance with International Financial Reporting Standards (IFRS) as adopted bythe European Commission from 1 April 2005. The Transition Date to IFRS for Kesais 1 February 2004, being the start of the period of comparative information. The move to IFRS will not change how Kesa is managed and will have no impact oncash flow. As with most companies, it may lead to increased volatility in theincome statement and balance sheet. The presentation of the financial statementswill also be affected. The main changes compared to the financial results prepared under UK GAAP are asbelow: - Reported PBT of £179.7m, 2.4 per cent lower than the UK GAAP equivalent of £184.2m, mainly reflecting the impact of increased pension charges, partially offset by the elimination of goodwill amortisation. - Effective tax rate of 35.9 per cent, up by 0.3 per cent compared to the UK GAAP equivalent of 35.6 per cent. Tax payable in cash has not changed as a result of IFRS - Reported basic EPS of 21.5p, 2.3 per cent lower than the UK GAAP equivalent of 22.0p - Net assets at 31 January 2005 of £332.7m, compared to the UK GAAP equivalent of £383.0m. This is principally as a result of recognising net pension liabilities on the balance sheet and not recognising a liability for year- end dividends which have been recommended but remaining to be approved by shareholders. The slides which will be referred to in the Analysts meeting and a recording ofthe meeting will be made available on our website www.kesaelectricals.comshortly after the end of the meeting. Kesa will be releasing its figures for the6 month period ending 31 July 2005 in late September 2005 using IFRS. The information about restatements has been prepared on IFRS currently in issueand adopted by the EC. However, these standards may be subject to interpretativeguidance issued by the International Financial Reporting InterpretationsCommittee (IFRIC), and best practice regarding the interpretation andapplication of IFRS continues to develop. New standards may also be issued bythe International Accounting Standards Board (IASB) for adoption for financialyears beginning on or after 1 January 2005. Any or all of these factors couldimpact upon the Kesa Report & Accounts for the year ending 31 January 2005. The financial information presented above is unaudited. Ends Enquiries Analysts Kesa Electricals plcSimon Ward +44 (0) 20 7269 1400 Media Kesa Electricals plc Annabel Donaldson UK +44 (0) 20 7269 1400Guy Lavaud France +33 (0) 1 43 18 52 00 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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