12th Jul 2005 07:01
Premier Foods plc12 July 2005 PREMIER FOODS PLC ANNOUNCES ADOPTION OF INTERNATIONAL FINANCIAL REPORTINGSTANDARDS Premier Foods plc today announces that it has adopted International FinancialReporting Standards (IFRS) with effect from 1 January 2005. The group's resultswill be published under IFRS commencing with the half-year results, which willbe released on 6 September 2005. This press release describes the impact of theconversion from UK GAAP to IFRS on the group's results for 2004 and sets out thecomparatives that are expected to form the base for 2005 performance. Summary of main changes for 2004 Operating profit Net profit Net EPS - continuing business after tax liabilities at Basic 31 December 2004 £m £m £m PencePreviouslyreportedunder UK GAAP 73.1 6.2 (14.9) 3.9in IFRS format Pensionadjustments* 9.8 6.9 (51.9) 4.3 Amortisationadjustments* 7.4 5.5 5.5 3.5 Otheradjustments* (2.3) (2.8) 9.4 (1.8) Totaladjustments* 14.9 9.6 (37.0) 6.0 IFRS* 88.0 15.8 (51.9) 9.9 * Unaudited The group's turnover is unaffected by the change of accounting basis. The majoritems impacting the operating profit are: * The cost of pensions and other employee benefits under IAS 19 (Employee Benefits). The adjustment to operating profit is primarily due to a non-recurring item that arises because expected asset returns exceeded the interest accrual on the liabilities of the scheme during the course of the year; and * The cessation of goodwill amortisation as a result of IFRS 3 (Business Combinations). IAS 19 has also been a major factor in the increase in the net liabilities ofthe group as the net deficit of the group's pension schemes is brought on to thebalance sheet for the first time. The detailed schedules and explanatory notes are available online atwww.premierfoods.co.uk/about/investor/financial/financial-presentations.cfm. Commenting on this change in accounting basis, Paul Thomas, Group FinanceDirector of Premier Foods plc, said: "The information we have released today isintended to help our shareholders and the financial community to understand theeffect of IFRS on our reported results as we move to full adoption. Whilereported earnings have been modified by these new standards it is important torecall that the underlying cash flows and economics of the business remainunchanged." A telephone conference for financial analysts will take place at 10.30 am Londontime on Tuesday 12 July 2005 with a brief presentation followed by a Q&Asession. Dial-in telephone numbers are as follows: UK: 0208 3223331Europe: +44 208 3223331Restated IAS/IFRS figures and the presentation for the telephone conference areavailable online at www.premierfoods.co.uk/about/investor/financial/financial-presentations.cfm. There will be a telephone replay facility for theconference call on telephone number 020 7081 9440, account number 801102, passnumber 050712, for 7 days. The IFRS restatement of preliminary results for year ended 31 December 2004 areunaudited. The financial information set out in the announcement does notconstitute the Company's statutory accounts for the years ended 31 December2004. The UK GAAP balance sheets as at 1 January 2004 and 31 December 2004 arederived from the statutory accounts for the year ended 31 December 2003 and 31December 2004. The auditors reported on those accounts; their report wasunqualified and did not contain a statement under either section 237 (2) orsection 237 (3) of the Companies Act 1985. Certain statements made in this presentation are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results and performance todiffer materially from any expected future results and performance, express orimplied, by forward-looking statements. Factors that might cause forward-lookingstatements to differ materially from actual results include, among other things,regulatory and economic factors. Premier Foods' assumes no responsibility toupdate any of the forward-looking statements contained herein. Further enquiries to: Premier Foods - Investor Relations:Paul Thomas 01727 815850Gwyn Tyley 01727 815850 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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