21st Dec 2005 07:00
Ricardo PLC21 December 2005 21 December 2005 Ricardo plc Adoption of International Financial Reporting Standards ("IFRS") SUMMARY Ricardo plc, the leading UK independent automotive consultancy, has completedits assessment of the impact of IFRS on the Group's reported financialinformation. This document includes a commentary on the key issues andappendices reconciling the UK GAAP and IFRS financial statements for the yearended 30 June 2005 and the half year ended 31 December 2004. Commenting on the changes, Andrew Goodburn, Finance Director said: "The net effect of conversion to IFRS on the Group's reported profits after taxfor the year ended 30 June 2005 is minor. Under IFRS the amount of the deficiton the Group's defined benefit pension scheme is very similar to the FRS17deficit previously reported, but this is now included within the balance sheetand therefore impacts Net Assets, and may cause some volatility in futuremovements in reserves. Conversion to IFRS has no impact on Ricardo's operationalperformance or ability to generate cash." The key impacts can be summarised as follows: Year ended 30 June 2005 Net Assets Profit after tax* Basic EPS at 30 June 2005 £m £m pence £mPer UK GAAP 7.08 14.2 59.29Impacts on profit before tax:Pensions (0.13) (36.79)Goodwill amortisation 1.00 1.00Share Based Payments 0.04 0.02Other impacts on profitbefore tax (0.02) (0.09) -------- 0.89 1.7Tax impact (0.81) (1.6) 10.16Ordinary Dividends impact 3.15 ----------------------------- ----------------Per IFRS 7.16 14.3 36.74 ----------------------------- ---------------- *attributable to equity shareholders Further enquiries: Ricardo plcAndrew Goodburn, Finance Director Tel +44 (0)1273 455611 Gavin Anderson & CompanyCharlotte Stone / Fergus Wylie Tel +44 (0)20 7554 1400 INTRODUCTION As required by European Union law, the Group will prepare its financialstatements under International Financial Reporting Standards ("IFRS") witheffect from 1 July 2005. Previously the Group has applied United KingdomGenerally Accepted Accounting Principles ("UK GAAP"). The first financialstatements that will be prepared for the Group under IFRS will be the interimfinancial statements for the six months to 31 December 2005. Standards currently in issue and adopted by the EU may be subject to change.Additionally, IFRS is currently being applied in the UK and in a large number ofother countries almost simultaneously for the first time, and practice iscontinuing to evolve. Therefore, at this preliminary stage, the full financialeffect of reporting under IFRS as it will be applied and reported on in theGroup's first IFRS financial statements for the six months ended 31 December2005 and for the year ended 30 June 2006 may be subject to change. During the assessment of the impact of IFRS on the Group and the preparation ofthis press release the Group has worked closely with its auditors, but thesenumbers are unaudited. A copy of this document will be available from the company's website atwww.ricardo.com. COMMENTARY ON THE KEY ISSUES 1 First-time Adoption of IFRS (IFRS 1) IFRS 1 requires that IFRS is applied retrospectively to establish the Group'sbalance sheet at the date of transition, 1 July 2004, unless a permittedexemption is applied. Accordingly the Group has elected: • to recognise in full all actuarial gains and losses relating to defined benefit pension schemes both at 1 July 2004 and prospectively through the statement of recognised income and expense, • to deem cumulative translation differences for all foreign operations to be zero as at 1 July 2004, • not to apply IAS 32 Financial Instruments: Disclosure and Presentation and IAS 39 Financial Instruments: Recognition and Measurement for the year ended 30 June 2005, and to adopt these standards with effect from 1 July 2005, • not to apply IFRS 2 Share-based Payments to share-based payments granted before 7 November 2002, and • not to apply IFRS 3 Business Combinations to business combinations that occurred before 1 July 2004. 2 Employee Benefits (IAS 19) Under UK GAAP, the Group accounted for its defined benefit pension scheme underSSAP 24 Accounting for Pension Costs, and published the transitional disclosuresrequired under FRS 17 Retirement Benefits. Under SSAP 24, the cost of providingthe defined benefit pension was charged against operating profit. This includedthe amortisation of the pension scheme surpluses and deficits over the remainingservice lives of participating employees. IAS 19 covers all forms of employee benefits, in particular post retirementbenefits and defined benefit pension schemes. Under IAS 19, the defined benefitpension scheme surplus or deficit is recognised as an asset or liability on thebalance sheet, together with the related deferred tax asset or liability. Thecost of providing pension benefits to employees relating to the current year'sservice is included in the income statement in arriving at operating profit,whilst the difference between the notional interest on scheme liabilities andthe expected return on scheme assets is included within finance costs. The Grouphas elected to recognise the actuarial gains and losses in full in the period inwhich they occur in the statement of recognised income and expense. The impact of this on profit before tax for the year ended 30 June 2005 is a netreduction of £0.13m, comprised of an increase in operating profit of £0.90m, andan increase in finance costs of £1.03m. Net assets at 30 June 2005 are reducedby £36.79m before the impact of deferred tax, and by £25.76m net of the deferredtax impact. It should be noted that this is very similar to the impact that theapplication of FRS 17 under UK GAAP would have had to the comparatives for theyear ended 30 June 2006 if the Group's accounts had remained under UK GAAP. 3 Intangible Assets (IAS 38) (a) Goodwill Under UK GAAP, goodwill arising on acquisition of businesses after 1 July 1998was amortised on a straight line basis over its estimated useful life, whichvaried between five and twenty years. On transition to IFRS on 1 July 2004, amortisation ceased to be charged.Instead, annual reviews of goodwill are performed to test for potentialimpairment. Therefore, although it may be possible to carry goodwill for longerthan the normal maximum amortisation period of 20 years under UK GAAP, there isthe potential for increased volatility to be introduced to the income statementby way of impairment charges if the forecast cash flows are not sufficient tosupport the carrying value. Impairment tests have been carried out for goodwill at 1 July 2004 and haveshown that there was no impairment. The impact of this on profit before tax for the year ended 30 June 2005 and netassets at 30 June is an increase of £1.00m, due to the reversal of theamortisation charge. There is a deferred tax impact of £0.04m reducing profitand net assets, for where UK corporation tax relief for amortisation ofpurchased goodwill is obtained. (b) Research and Development Under UK GAAP, the Group's accounting policy was to write off expenditure onresearch and development in the year in which it was incurred. Under IAS 38,development costs must be capitalised as intangible assets if they satisfycertain specified criteria. Research and development, both internally and customer funded, is an integralpart of Ricardo's business. However, expenditure on research and development ispredominantly aimed either at under-pinning the Group's expertise or satisfyinga customer contract, rather than at launching new Ricardo products, and wouldtherefore not normally meet the criteria for capitalisation under IAS 38. There is no impact of this on the Group's profit before tax for the year ended30 June 2005 and net assets at 30 June, but the Group's accounting policies willbe changed to accommodate the possibility of some development costs beingcapitalised under IAS 38 in the future. 4 Share-based Payments (IFRS 2) Under UK GAAP, the Group accounted for its share incentive plans in accordancewith UITF 17. There was a charge to the profit and loss account in relation toits Long Term Incentive Plan ("LTIP") to spread the estimated fair value of theawards over the period to which the performance criteria related. There was nocharge to the profit and loss account in relation to either its executive shareoption schemes or its savings related share option scheme. IFRS 2 requires an expense to be recorded in the income statement for all formsof share based payment granted after 7 November 2002 and not yet vested at 1July 2005. The expense is based on the fair value of the award at the date theaward is granted, and detailed guidance is given on how fair values should becalculated. The expense is spread over the period when the services arereceived. Accordingly, the Group's executive share options and LTIPs awardedafter 7 November 2002 are now valued using appropriate valuation models and arerecorded in the income statement. No savings related share options have beengranted since 7 November 2002. The net impact of these changes on profit before tax for the year ended 30 June2005 is an increase of £0.04m. 5 Income Taxes (IAS 12) Under UK GAAP, deferred tax had to be provided on timing differences except forcertain items, such as unrealised revaluations or rolled over gains, which werenot expected to reverse in the foreseeable future. Under IAS 12, deferred tax has to be provided on all temporary differencesbetween the accounting and tax bases. Consequently deferred tax has beenprovided on the IFRS adjustments affecting net assets, as those adjustments arenot expected to impact on the Group's corporation tax position for the yearended 30 June 2005. The impact of this on profit after tax for the year ended 30 June 2005 is adecrease of £0.81m, principally due to provision for tax on the gain on an intergroup transfer of the ownership of the Group's main US subsidiary. The gain isexpected to be rolled over, but a deferred tax provision is nonetheless requiredfor this under IAS 12. The net impact on net assets at 30 June 2005 is anincrease of £10.16m, principally due to the deferred tax asset for the deficiton the defined benefit pension scheme, partially offset by the deferred taxprovision on the rolled over gain. 6 Post Balance Sheet Events (IAS 10) Under UK GAAP, proposed dividends were accrued by the Group in the accountingperiod to which they related. Under IAS 10, dividends must be recognised in theaccounting period in which they are appropriately authorised and become nolonger at the discretion of the entity. Furthermore, dividends must be takendirectly to reserves rather than recognised within the income statement. A provision for a final ordinary dividend of £3.15m was provided in thefinancial statements for the year ended 30 June 2005 under UK GAAP. Under IFRSthis accrual has been reversed, resulting in an increase in net assets at 30June 2005 of the same amount. 7 Financial Instruments: Recognition and Measurement (IAS 39) IAS 39 will be adopted with effect from 1 July 2005, and therefore IAS 39 has noimpact on the Group's profit before tax for the year ended 30 June 2005 and netassets at 30 June, however there are potential impacts going forwards. (a) Net investment in overseas subsidiaries The Group has foreign currency loans of €23m to hedge against the foreignexchange currency risk relating to the Group's net investment in its Germanoperations. Hedge accounting will apply to this with effect from 4 October 2005,and therefore from that date differences arising on the translation of theseforeign currency borrowings will be taken directly to reserves. No impact isexpected on profit before tax for the period between 1 July 2005 and 4 October2005. (b) Derivatives and hedge accounting Under UK GAAP where foreign exchange forward contracts were taken out tomitigate foreign exchange risks, these hedges were matched with the hedgeditems, allowing open forward contracts not to be held at a value in the balancesheet to the extent that they were hedges of future transactions such aspayments from customers for long term contracts priced in foreign currencies. Under IAS 39, a similar accounting result can only be obtained if extensivehedge accounting documentation requirements and effectiveness tests are met.Open forward contracts must be accounted for at their fair market value at eachbalance sheet date. To the extent that the hedge accounting requirements aremet, changes in the value of open forward contracts can be held in equity untilthe hedged item is realised. If the documentation requirements are not met,changes in the value of open forward contracts must be recognised in the IncomeStatement. The Group will continue to use foreign exchange forward contracts or otherfinancial derivatives as part of its risk management strategy. However it maynot be suitable for hedge accounting documentation to be put in place for allsuch contracts, or the strict hedge accounting criteria may not be met. This maylead to volatility in the Income Statement caused by gains or losses on ahedging instrument being recorded in a different accounting period to the gainor loss on the base transaction, the extent of which will not be known until theexchange rates affecting the values of the items are known at the relevantbalance sheet date. (c) Embedded Derivatives Under IAS 39, where contracts are denominated in a currency other than thefunctional currency of the customer or supplier, it is normally necessary totreat the contract as having two separate elements: the "host" contract which isdeemed to be in the currency of the customer or supplier, and the "embeddedderivative" which introduces the third currency. If unrealised, the embeddedderivative must then be accounted for at its fair market value at each balancesheet date, and changes in its value must be recognised in the Income Statement.Depending on the contracts and exchange rates at future balance sheet dates,this may also lead to volatility in the Income Statement. 8 Dividend Policy It is expected that the Group's conversion to IFRS will have no impact on thecompany's dividend policy. OTHER ISSUES Holiday accruals (Employee Benefits - IAS 19) The Group has reviewed its compliance with IAS 19 with regard to holidayaccruals across the Group and as a result has increased its holiday accrual ontransition to IFRS at 1 July 2004 by £0.23m. Software (Intangible Assets - IAS 38) Under UK GAAP, the Group included purchased software within Tangible FixedAssets. Under IAS 38, software is included within the definition of intangibleassets. The impact of this is that a balance sheet re-classification isrequired. There is no impact of this on the Group's profit before tax or netassets. Leases (IAS 17) Under UK GAAP, the Group's operating lease incentives received were amortisedover the period from inception of the lease to the first open market rentreview. Under IAS 17, such lease incentives must be amortised over the whole ofthe lease term. The impact of this on Profit before tax for the year ended 30June 2005 is minimal at £0.01m. Net assets at 30 June 2005 are reduced by £0.10mbefore considering the tax impact. Borrowing Costs (IAS 23) Under UK GAAP, the Group has treated dividends on preference shares of £0.01m asan item not impacting on profit before tax. Under IAS 23 these will be treatedas finance costs. Provisions (IAS 37) Under UK GAAP, the Group has accounted for warranty provisions within creditorsfalling due within one year due to their size. Under IAS 37 these will bedisclosed as short term provisions. The impact of this is that a balance sheetre-classification is required. Cash Flow Statements (IAS 7) Under UK GAAP, the increase in cash in the year ended 30 June 2005 was £13.00m,and an exchange loss on cash of £0.26m included in a reconciliation in the notesto the accounts. Under IAS 7, the exchange loss will be included in the primarycash flow statement. The other changes to the cash flow statement are layoutchanges only. Therefore the net increase in cash and cash equivalents for theyear ended 30 June 2005 under IFRS was £12.74m. This is expected to be analysedas follows: £mNet cash from operating activities 9.57Net cash used in investing activities (6.10)Net cash generated from financing activities 9.53Effects of exchange rate changes (0.26) ------Net increase in cash and cash equivalents 12.74 ====== Half Year Results This commentary where relevant refers to impacts on the Group's profit beforetax for the year ended 30 June 2005 and net assets at 30 June 2005. The keyissues which have an impact on the Group's profit before tax for the six monthsended 31 December 2004 and net assets at 31 December 2004 are the same, and thedetailed amounts are included in appendix II. APPENDIX I: Reconciliations for the year ended 30 June 2005 Consolidated Income Statement for the year ended 30 June 2005 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 12 IAS 17 IAS 23 Restated IFRS format Employee Intangible Share Based Income Leases Borrowing under IFRS Benefits Assets Payments Taxes Costs £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000ContinuingoperationsRevenue 159,920 159,920Cost of sales (113,241) (113,241) -----------------------------------------------------------------------------------------Gross profit 46,679 0 0 0 0 0 0 46,679Administrativeexpenses (38,536) 899 1,004 36 0 (14) (36,611) -----------------------------------------------------------------------------------------Profit fromoperations 8,143 899 1,004 36 0 (14) 0 10,068Finance costs (796) (1,029) (6) (1,831) -----------------------------------------------------------------------------------------Profit beforetax 7,347 (130) 1,004 36 0 (14) (6) 8,237Tax (186) 39 (42) (11) (796) 4 (992) -----------------------------------------------------------------------------------------Profit for theperiod 7,161 (91) 962 25 (796) (10) (6) 7,245 ========================================================================================= Profit attributableto minority interest 82 82 Profit attributableto equity shareholders 7,079 (91) 962 25 (796) (10) (6) 7,163 ----------------------------------------------------------------------------------------- 7,161 (91) 962 25 (796) (10) (6) 7,245 ========================================================================================= Consolidated Statement of Recognised Income and Expense for the year ended 30 June 2005 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 12 IAS 17 IAS 23 IAS 21 Restated IFRS format Employee Intangible Share Income Leases Borrowing Exchange under IFRS Benefits Assets Based Taxes Costs Rate Payments Changes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Actuarialgains/ (losses) (7,892) (7,892) Net exchangeadjustments 171 (171) 0 Tax on items taken directly 2,367 2,367to equity -----------------------------------------------------------------------------------------------Net gains/ (losses)not recognised inthe incomestatement 171 (5,525) 0 0 0 0 0 (171) (5,525) Profit for theperiod attributable to equity shareholders 7,079 (91) 962 25 (796) (10) (6) 0 7,163 -----------------------------------------------------------------------------------------------Total recognisedincome and expense for the year 7,250 (5,616) 962 25 (796) (10) (6) (171) 1,638 =============================================================================================== Consolidated Balance Sheet as at 1 July 2004 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 12 IAS 10 IAS 17 IAS 37 Restated IFRS format Employee Intangible Share Based Income Dividends Leases Provisions under IFRS Benefits Assets Payments Taxes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assetsGoodwill 16,161 (10) 16,151Otherintangible assets 756 756Property, plant and equipment 50,944 (756) 50,188Deferred taxasset 9,924 9,924 ----------------------------------------------------------------------------------------------------- 67,105 0 (10) 0 9,924 0 0 0 77,019 -----------------------------------------------------------------------------------------------------Current assetsInventories 6,285 6,285Trade and otherreceivables 34,057 (1,240) 32,817Current taxassets 2,468 2,468Cash and cashequivalents 11,119 11 11,130 ----------------------------------------------------------------------------------------------------- 53,929 (1,240) 0 11 0 0 0 0 52,700 ----------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------Total assets 121,034 (1,240) (10) 11 9,924 0 0 0 129,719 -----------------------------------------------------------------------------------------------------Current liabilitiesTrade andother payables (33,040) (234) (81) 43 (33,312)Tax liabilities (3,480) (3,480)Bank overdrafts and loans (16,588) (16,588)Proposed finaldividend (3,139) 3,139 0Provisions (43) (43) ----------------------------------------------------------------------------------------------------- (56,247) (234) 0 0 0 3,139 (81) 0 (53,423) ----------------------------------------------------------------------------------------------------- Net current assets/(liabilities) (2,318) (1,474) 0 11 0 3,139 (81) 0 (723) ----------------------------------------------------------------------------------------------------- Non-current liabilitiesBank loans (4,788) (4,788)Retirement benefitobligation (27,296) (27,296)Deferred taxliabilities (3,561) 8,631 (9,924) 24 (4,830)Long term provisions (282) (282) ----------------------------------------------------------------------------------------------------- (8,631) (18,665) 0 0 (9,924) 0 24 0 (37,196) -----------------------------------------------------------------------------------------------------Totalliabilities (64,878) (18,899) 0 0 (9,924) 3,139 (57) 0 (90,619) ----------------------------------------------------------------------------------------------------- NET ASSETS 56,156 (20,139) (10) 11 0 3,139 (57) 0 39,100 ==================================================================================================== EQUITYShare capital 12,474 12,474Share premiumaccount 12,076 12,076Capital redemptionreserve 40 40Merger reserve 967 967Other 11 11Retained earnings 30,106 (20,139) (10) 0 3,139 (57) 13,039 -----------------------------------------------------------------------------------------------------Equity attributableto shareholders of Ricardo plc 55,663 (20,139) (10) 11 0 3,139 (57) 0 38,607 Minority interest in Equity 493 493 -----------------------------------------------------------------------------------------------------Total equity 56,156 (20,139) (10) 11 0 3,139 (57) 0 39,100 ==================================================================================================== Consolidated Balance Sheet as at 30 June 2005 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 12 IAS 10 IAS 17 IAS 37 IAS 21 Restated IFRS format Employee Intangible Share-based Income Dividends Leases Provisions Exchange under IFRS Benefits Assets Payments Taxes Rate Changes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assetsGoodwill 14,643 994 15,637Other intangibleassets 1,126 1,126Property, plant and equipment 47,872 (1,126) 46,746Deferred taxasset 11,268 11,268 ----------------------------------------------------------------------------------------------------- 62,515 0 994 0 11,268 0 0 0 0 74,777 -----------------------------------------------------------------------------------------------------Current assetsInventories 6,918 6,918Trade and otherreceivables 43,138 43,138SSAP24 debtor 1,848 (1,848) 0Current taxassets 1,603 1,603Cash and cashequivalents 8,807 8 8,815 ----------------------------------------------------------------------------------------------------- 62,314 (1,848) 0 8 0 0 0 0 0 60,474 ----------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------Total assets 124,829 (1,848) 994 8 11,268 0 0 0 0 135,251 ----------------------------------------------------------------------------------------------------- Current liabilitiesBank overdrafts and loans (1,536) (1,536)Trade andother payables (35,513) (234) 14 (95) 356 (35,472)Tax liabilities (4,866) (4,866)Short-termprovisions (35) (35)Proposed finaldividend (3,151) 3,151 0Provisions (356) (356) ----------------------------------------------------------------------------------------------------- (45,066) (234) 0 14 0 3,151 (95) (35) 0 (42,265) -----------------------------------------------------------------------------------------------------Net currentassets 17,248 (2,082) 0 22 0 3,151 (95) (35) 0 18,209 ----------------------------------------------------------------------------------------------------- Non-current liabilitiesBank loans (18,531) (18,531)Deferredconsideration (124) (124)Retirementbenefitobligation (34,710) (34,710)Deferred taxliabilities (1,780) 11,037 (42) (11) (12,064) 28 (51) (2,883)Long termprovisions (35) 35 0 ---------------------------------------------------------------------------------------------------------- (20,470) (23,673) (42) (11) (12,064) 0 28 35 (51) (56,248) ---------------------------------------------------------------------------------------------------------- Totalliabilities (65,536) (23,907) (42) 3 (12,064) 3,151 (67) 0 (51) (98,513) ---------------------------------------------------------------------------------------------------------- NET ASSETS 59,293 (25,755) 952 11 (796) 3,151 (67) 0 (51) 36,738 ========================================================================================================== EQUITYShare capital 12,504 12,504Share premiumaccount 12,201 12,201Capitalredemptionreserve 40 40LTIP reserve 143 (22) 121Merger reserve 967 967Translationreserve 120 120Other 8 8Retained earnings 32,944 (25,755) 952 25 (796) 3,151 (67) (171) 10,283 ----------------------------------------------------------------------------------------------------------Equityattributable toshareholders of Ricardo plc 58,799 (25,755) 952 11 (796) 3,151 (67) 0 (51) 36,244 Minorityinterest inEquity 494 494 ----------------------------------------------------------------------------------------------------------Total equity 59,293 (25,755) 952 11 (796) 3,151 (67) 0 (51) 36,738 ========================================================================================================== APPENDIX II: Reconciliations for the six months ended 31 December 2004 Consolidated Income Statement for the six months ended 31 December 2004 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 17 IAS 23 Restated IFRS format Employee Intangible Share Based Leases Borrowing under IFRS Benefits Assets Payments Costs £'000 £'000 £'000 £'000 £'000 £'000 £'000Continuingoperations Revenue 72,584 72,584Cost of sales (50,520) (50,520) ---------------------------------------------------------------------------------Gross profit 22,064 0 0 0 0 0 22,064Administrativeexpenses (19,160) 408 502 187 (7) (18,070) ---------------------------------------------------------------------------------Profit fromoperations 2,904 408 502 187 (7) 0 3,994Finance costs (447) (514) (3) (964) ---------------------------------------------------------------------------------Profit before tax 2,457 (106) 502 187 (7) (3) 3,030Tax (183) 32 (21) (56) 2 (226) ---------------------------------------------------------------------------------Profit for theperiod 2,274 (74) 481 131 (5) (3) 2,804 ================================================================================= Profit attributableto minority interest 25 25Profit attributableto equityshareholders 2,249 (74) 481 131 (5) (3) 2,779 --------------------------------------------------------------------------------- 2,274 (74) 481 131 (5) (3) 2,804 ================================================================================= Consolidated Statement of Recognised Income and Expense for the six months ended 31 December 2004 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 17 IAS 23 IAS 21 Restated IFRS format Employee Intangible Share Based Leases Borrowing Exchange under IFRS Benefits Assets Payments Costs Rate Changes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Actuarial gains/ (losses) (4,977) (4,977) Net exchangeadjustments (683) 683 0 Tax on itemstaken directly 1,493 1,493to equity --------------------------------------------------------------------------------------------Net gains/ (losses)not recognisedin the income statement (683) (3,484) 0 0 0 0 683 (3,484) Profit for theperiod attributable to equity shareholders 2,249 (74) 481 131 (5) (3) 0 2,779 --------------------------------------------------------------------------------------------Total recognisedincome and expense for the year 1,566 (3,558) 481 131 (5) (3) 683 (705) ============================================================================================ Consolidated Balance Sheet at 31 December 2004 UK GAAP in IAS 19 IAS 38 IFRS 2 IAS 10 IAS 17 IAS 37 IAS 21 Restated IFRS format Employee Intangible Share-based Dividends Leases Provisions Exchange under IFRS Benefits Assets Payments Rate Changes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assetsGoodwill 16,365 492 16,857Other intangibleassets 699 699Property, plant and equipment 48,995 (699) 48,296Deferred taxasset 9,623 205 9,828 ------------------------------------------------------------------------------------------------ 65,360 9,623 492 0 0 0 0 205 75,680 ------------------------------------------------------------------------------------------------Current assetsInventories 7,786 7,786Trade and otherreceivables 39,031 39,031SSAP24 debtor 1,544 (1,544) 0Current taxassets 2,060 2,060Cash and cashequivalents 6,352 11 6,363 ------------------------------------------------------------------------------------------------ 56,773 (1,544) 0 11 0 0 0 0 55,240 ------------------------------------------------------------------------------------------------ Total assets 122,133 8,079 492 11 0 0 0 205 130,920 ------------------------------------------------------------------------------------------------ Current liabilitiesBank overdrafts andloans (19,235) (19,235)Trade andother payables (34,478) (234) 31 (88) 221 (34,548)Tax liabilities (3,777) (3,777)Proposed finaldividend (1,354) 1,354 0Provisions (221) (221) ------------------------------------------------------------------------------------------------ (58,844) (234) 0 31 1,354 (88) 0 0 (57,781) ------------------------------------------------------------------------------------------------Net current assets (2,071) (1,778) 0 42 1,354 (88) 0 0 (2,541) ------------------------------------------------------------------------------------------------ Non-current liabilitiesBank loans (2,903) (2,903)Retirement benefitobligation (32,075) (32,075)Deferred taxliabilities (3,180) 533 (21) (56) 26 (2,698)Long termprovisions (660) (660) ------------------------------------------------------------------------------------------------ (6,743) (31,542) (21) (56) 0 26 0 0 (38,336)Totalliabilities (65,587) (31,776) (21) (25) 1,354 (62) 0 0 (96,117) ------------------------------------------------------------------------------------------------NET ASSETS 56,546 (23,697) 471 (14) 1,354 (62) 0 205 34,803 ================================================================================================ EQUITYShare capital 12,477 12,477Share premiumaccount 12,085 12,085Capital redemptionreserve 40 40LTIP reserve 165 (156) 9Merger reserve 967 967Translationreserve (478) (478)Other 11 11Retained earnings 30,315 (23,697) 471 131 1,354 (62) 683 9,195 ------------------------------------------------------------------------------------------------Equityattributable toshareholders of Ricardo plc 56,049 (23,697) 471 (14) 1,354 (62) 0 205 34,306 Minority interest in Equity 497 497 ------------------------------------------------------------------------------------------------Total equity 56,546 (23,697) 471 (14) 1,354 (62) 0 205 34,803 ================================================================================================ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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