12th Sep 2005 13:17
UPDATE ON ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS") RESULTS FOR THE YEAR ENDED 31 MARCH 2005 RESTATED UNDER IFRS PART I(Part II of this document contains detailed reconciliations between the UK GAAPand IFRS numbers shown below. It is available from the Cable & Wirelesswebsite: www.cw.com).Cable & Wireless today, 12 September 2005, publishes its results, restatedunder IFRS for the year ended 31 March 2005. These results were previouslypublished under UK GAAP on 26 May 2005.As indicated in the 31 March 2005 "Update on adoption of IFRS", the principalareas of impact in the year ended 31 March 2005 are the same as those in theyear ended 31 March 2004: * the deconsolidation of the Maldives business * pensions accounting and * accounting for share based payments. As previously mentioned, due to the utilisation of certain exemptions ontransition to IFRS, accounting for financial instruments will have anadditional impact from 1 April 2005.As indicated in the 26 May 2005 full year results press release the SEC hasissued an accommodation allowing foreign private issuers preparing their firstset of financial statements under IFRS to file two rather than three years ofinformation. As a result of taking advantage of this accommodation, the Group'sdate of transition to IFRS is now 1 April 2004.As outlined in the 31 March 2005 "Update on adoption of IFRS", the scale ofadjustments in the year ended 31 March 2005 is in line with the adjustments inthe year ended 31 March 2004, with the exception of the anticipated increase inshare-based payments. The impact on the primary financial statements for theyear ended 31 March 2005 is outlined in the table below.Full year 2004/5 results from continuing activities Revenue PBT EPS1 Free cash Net cash Net flow2 3 assets ‚£m ‚£m pence ‚£m ‚£m ‚£m As reported under UK GAAP before 3,023 361 9.3p 144 1,328 2,137 exceptional items Reclassification of (22) (6) (0.2p) (4) (7) - `held for sale' assets4 Reclassification of - share of associates' tax charge above (7) - - - - profit before tax UK GAAP after IFRS 3,001 reclassification 348 9.1p 140 1,321 2,137 Deconsolidation of Maldives business5 (54) (17) - (26) (46) (45) Pensions - 4 0.2p 4 - (381) Other employee - (2) (0.1p) (2) - (12) benefits Share based payments - (8) (0.4p) (8) - - Intangible assets - 1 - 1 - 40 Others6 - - - - - 40 As restated under IFRS before significant 2,947 326 8.8p 109 1,275 1,779 items7 Full year 2004/5 results from continuing activities including exceptional itemsAs reported under UK 3,023 202 6.1p - 1,328 2,137 GAAP As restated under IFRS 2,948 167 5.7p (39) 1,275 1,779 1EPS is calculated on earnings from continuing activities attributable toequity shareholders.2Free cash flow is defined as operating profit before exceptional/significantitems plus depreciation and amortisation, less cash capital expenditure.3 Net cash includes cash, cash equivalents and short-term investments.4The Group's Sakhalin operations and a Spanish subsidiary were held for sale atyear end and hence are disclosed as part of discontinued operations in theincome and cash flow statements.5 The adjustment in respect of the Maldives business reflects itsdeconsolidation and inclusion as a joint venture.6 Principally comprises dividends (‚£60 million) less income taxes (‚£15million).7 Significant items comprise those items that were reported as exceptionalunder UK GAAP.The restatement of the results under IFRS for the year ended 31 March 2005 hasa limited impact on EPS, free cash flow and the Company's ability to pay cashdividends.OutlookThe scale of adjustments on transition to IFRS in the year ending 31March 2006 is expected to be broadly in line with those in the year ending 31March 2005 before taking the following items into account: * The share-based payments in the year ending 31 March 2005 represent only two years of three-year rolling schemes; and * As previously indicated, the impact of accounting for financial instruments under IFRS will result in a non-cash interest charge of approximately ‚£8 million and some increased volatility in the year to 31 March 2006. The IFRS implications of the Energis acquisition will be finalised followingcompletion of that transaction.Cable & Wireless reports under IFRS from 1 April 2005 and accordingly willreport its results for the six months ending 30 September 2005 under IFRS on 8November 2005.Contacts:Investor Relations:Louise BreenDirector, Investor RelationsTel: +44 20 7315 4460Virginia PorterVP, Investor Relations and Assoc. General CounselTel: +1 212 239 3581Media:Lesley SmithGroup Director Corporate and Public AffairsTel: +44 (0)1344 726945Steve DoubleGroup Head of Media CommunicationsTel: +44 (0)1344 726946Mob: +44 (0)7917 067580Cable & Wireless press office Tel: 01344 818888Note to editorsCable & Wireless is one of the world's leading international communicationscompanies. It provides voice, data and IP (Internet Protocol) services tobusiness and residential customers, as well as services to other telecomscarriers, mobile operators and providers of content, applications and internetservices.Cable & Wireless' principal operations are in the United Kingdom, continentalEurope, Asia, the Caribbean, Panama and the Middle East. For more informationabout Cable & Wireless, go to www.cw.com.ENDCable & Wireless PLCRelated Shares:
CWC.L