Final Results

19th Nov 2008 07:00

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2008 

FINANCIAL HEADLINES

Sales £54.0 million (2007: £55.2 million)

EBITDA* of £5.2 million (2007: £6.5 million).

Profit before taxation £3.5 million (2007: £4.5 million)

Basic earnings per ordinary share 3.7p (2007: 4.8p).

Cash generated from operations of £3.1 million (31 August 2007: £5.9 million).

Recommended dividend of 0.65p (31 August 2007: 0.65p) per ordinary share.

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

BUSINESS HIGHLIGHTS

New exclusive distribution agreements for Clifford, Viper, Hornet and Orion (car security and audio brands), Roth Audio, Aquavision bathroom televisions, Soundcast wireless audio streaming systems and Epson projectors for the home entertainment market.

Investment in new facilities in Manchester providing over 100,000 sq. ft. of manufacturing, warehousing, showroom and offices. This first class operating facility will allow for expansion, enhanced showcasing of Group products and increased levels of service to our customers.

New products launched during the year include iO (in-car Bluetooth music streaming and handsfree solutions), "Viewsmart" (proprietary range of brackets, cables and audio-visual accessories) and additions and enhancements to the Autoleads, Alphason, QED, Q Acoustics, Audica, Myryad and NAD product ranges. 

Business awards from the trade and consumer press and numerous product awards and recommendations, won over the past year, recognise the Group operations' leading positions in their respective markets.

George Dexter, Chief Executive of Armour Group plc commented:

"The strong trading environment of the first six months gave way to challenging trading conditions in the second half of the year. Despite these deteriorating economic circumstances the Group has delivered a satisfactory set of results.

Strategically, our business model remains unchanged and is based upon strong recognised brands, a quality product portfolio, unrivalled distribution into the UK's consumer electronics market, a structured programme of product innovation and first class customer service. We have made good progress building on all these elements over the past year and will continue to pursue these strategic goals.

These are undoubtedly challenging times for all businesses, from which we are not immune. However, our business model and strategy gives the Group a strong foundation to weather the current economic downturn and be well prepared to return to growth when our markets recover." 

For further information please contact: 

Armour Group plc Tel: 01892 502700

George Dexter, Chief Executive

John Harris, Finance Director

FinnCap, Nominated Adviser and Broker Tel: 0207 600 1658

Geoff Nash, Corporate Finance Director

Threadneedle Communications, Financial PR Tel: 020 7936 9666

Trevor Bass, Alex White

  

ABOUT ARMOUR

Armour Group is the United Kingdom's leading consumer electronics group within the home and in-car communication and entertainment markets, committed to designing, manufacturing and distributing leading-edge audio and visual products and solutions. 

Armour Group has two principle operating divisions, Armour Home and Armour Auto, and employs over 330 people across eight operating sites in the UK, Sweden and Hong Kong.

The Group possesses a strong brand portfolio, including more than 4,000 products and accessories, which is underpinned by innovative product development and investment in proprietary technology. 

An unrivalled distribution capability ensures that products are supplied direct to more than 6,000 retail outlets within the UK and to customers in 65 countries worldwide. Armour Group is also a leading supplier of audio and visual technology to a host of non-retail customers including vehicle manufacturers, hotel chains, house builders and custom installers. 

The Group's strength is based on 5 fundamentals:

Strong recognised brands

Quality product portfolio

Unrivalled distribution into the UK's electronics market

Structured programme of product innovation

First class customer service

Armour Home

Armour Home is the leading provider of high-end, products, solutions and services to the hi-fi, home theatre and entertainment market within the UK. 

Armour Home boasts a diverse mix of more than 1,700 products that span all aspects of vision, sound and the living experience within home entertainment. This wide-ranging portfolio includes brands that are at the forefront of the hi-fi and audio-visual sectors, with the recognised industry leaders QED cable interconnects, Systemline multi-room entertainment systems and Alphason furniture solutions. A mix of eleven owned brands and twelve distributed brands are supplied to more than 2,500 customers, 4,000 retail outlets and 150 international partners across 70 markets. Within the UK, customers include Sevenoaks Sound and Vision, Audio T, Comet, Argos, Tesco, Selfridges, Harrods, Asda and Marks & Spencer.

The Division has two operating companies- Armour Home Electronics and Alphason Designs.

Armour Auto

Armour Auto is the UK and Sweden's market leader in the supply of audio and video products and accessories for the in-car entertainment and communications market.

Armour Auto's portfolio of 9 specialist brands, 5 of which are owned, offer in excess of 2,500 products that are supplied to over 1,500 customers across a wide range of market sectors including the retail aftermarket, original equipment manufacturers (OEM), leisure, commercial vehicles, car dealerships and agriculture. 

Brands include Autoleads, acknowledged as being the industry standard for in-vehicle connectivity solutions; Radiomobile, the longest established aftermarket car stereo marque in the UK; iO, Armour Auto's new brand of in-car Bluetooth music streaming and handsfree solutions; and Clifford, the UK's market leading Thatcham approved vehicle security brand.  Armour Auto's customers include Halfords, Carphone Warehouse, Motorworld, BMW, Bentley, Hyundai, Scania Trucks, Claas, Case New Holland Tractors and over 1,500 independent specialist automotive retailers across the UK and Ireland.   

CHAIRMAN'S STATEMENT

The Group results for the year to 31 August 2008 reflect the significant changes that have taken place in the economy as a whole and, in particular, our core trading markets. Group sales were down by 2% to £54.0 million (31 August 2007: £55.2 million) and profit from operations declined by 23% to £4.0 million (31 August 2007: £5.2 million). Basic underlying earnings per ordinary share are 3.9p, a reduction of 20% and the full year dividend is maintained at 0.65p per ordinary share.

The Group's strong first half results were followed by a weaker trading performance in the second half of the financial year, brought about by the deteriorating economic climate and falling levels of consumer confidence. Both operating divisions have been impacted by the slowing economy in the second half of the year, although this has been more pronounced in the automotive division. Nonetheless, the Group has delivered a credible overall performance against an increasingly difficult economic backdrop.

We offer our customers a comprehensive range of quality brands and products in our core areas of focus and further differentiate ourselves from our competitors by service excellence. We are the United Kingdom market leader in the supply of distributed audio and video multi-room entertainment systems and audio-visual furniture, have the United Kingdom's leading brand of hi-fi interconnects and are the leading accessory supplier to the in-car entertainment aftermarket.  Our market leading position in both the home and automotive sectors is underlined by the 26 awards presented over the past year by the trade and consumer press to our operating divisions. These included best business awards for Alphason Designs Limited ("Alphason") and Armour Auto as well as a host of product awards and recommendations across many of the Group's brands. 

As part of our strategy to offer quality products and recognised brands, we continue to look for partners who have complementary brands and products, which can be successfully distributed through our channels to market. In July 2008, we were pleased to announce the agreement with Directed Electronics appointing Armour Auto as its exclusive distributor for its automotive brands in the United Kingdom, Sweden and Republic of Ireland. This distribution agreement was one of a number of such agreements signed in the year. Currently, third party brands, which are typically distributed on an exclusive basis, account for 23% of the Group's sales.

We continue to invest in the Group's operations, infrastructure, new product development and sales and marketing. This investment is central to our strategy and will support the Group's sales in the medium term by providing innovative products and infrastructure to deliver a first class service to our customers. The largest single investment in the year has been the relocation of Alphason onto a single site in Wigan, which provides over 100,000 sq. ft. of manufacturing, warehousing, showroom and offices. This first class operating facility allows for expansion and increased levels of service to our customers.

The Group now employs over 330 people in the United Kingdom, Ireland, Sweden and Hong Kong. It is thanks to their hard work, dedication and professionalism that the Group continues its development even in these more testing times. I would like to acknowledge the Board's appreciation of their commitment and effort over the course of the year.

The wider economic outlook for the next year is one of uncertainty, presenting challenges that will affect both businesses and households alike. The Group has a broad portfolio of strong brands, customers and products and a business model and strategy that the Board believes will deliver sustainable long-term growth. The current economic volatility and period of weak consumer demand are cyclical events, which will stabilise and recover in due course. Whilst we are aware of the current economic weakness and are taking appropriate steps to minimise its impact, pursuit of our strategic goals will continue such that the Group is in a position of strength when the economy recovers.  

BOB MORTON

Chairman

19 November 2008

  ARMOUR GROUP PLC

CONSOLIDATED INCOME STATEMENT

For the year ended 31 August 2008

	Note	31 August 2008  £000	31 August  2007 £000
Revenue	2	54,008	55,171
Changes in inventory of finished goods and work in progress		2,870	1,609
Raw materials and consumables		(31,272)	(30,038)
Employee benefits costs		(9,631)	(9,516)
Depreciation and amortisation expense		(1,075)	(1,178)
Other expenses		(10,871)	(10,805)
Total expenses		(49,979)	(49,928)
Profit from operations		4,029	5,243
Finance expense		(703)	(765)
Finance income		166	22
Share of (loss)/profit of associated undertakings		(7)	3
Profit before taxation	2	3,485	4,503
Taxation expense	3	(991)	(1,262)
Profit from continuing operations		2,494	3,241
Post taxation loss on disposal of discontinued operations	4	-	(2,979)
Profit for the year		2,494	262
Earnings/(loss) per ordinary share	5
From continuing and discontinued operations
Basic		3.7p	0.4p
Diluted		3.7p	0.4p
From continuing operations
Basic		3.7p	4.8p
Diluted		3.7p	4.7p
From discontinued operations
Basic		-	(4.4)p
Diluted		-	(4.3)p

  ARMOUR GROUP PLC

CONSOLIDATED BALANCE SHEET

At 31 August 2008

	Note	31 August  2008 £000	31 August  2007 £000
Non-current assets
Goodwill		21,082	21,082
Other intangible assets		2,041	991
Property, plant and equipment		2,102	1,604
Investment in associated undertakings		368	375
Total non-current assets		25,593	24,052
Current assets
Inventories		12,826	10,490
Trade and other receivables		10,220	11,430
Cash and cash equivalents		170	892
Total current assets		23,216	22,812
Total assets	2	48,809	46,864
Current liabilities
Bank overdrafts and borrowings		(6,650)	(714)
Trade and other payables		(9,755)	(14,664)
Corporation taxation liability		(326)	(1,146)
Provisions		(136)	(296)
Total current liabilities		(16,867)	(16,820)
Non-current liabilities
Borrowings		(2,394)	(3,082)
Provisions		(226)	-
Deferred taxation liability		(520)	(18)
Total non-current liabilities		(3,140)	(3,100)
Total liabilities	2	(20,007)	(19,920)
Total net assets	2	28,802	26,944
Equity
Share capital		6,848	6,848
Share premium		8,513	8,513
Other reserves		871	871
Retained earnings		13,074	10,919
Translation reserve		68	(7)
Share trust reserve		(572)	(200)
Total equity		28,802	26,944

  

ARMOUR GROUP PLC

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the years ended 31 August 2008

	Share capital	Share premium	Other reserves	Retained earnings	Translation reserve	Share trust reserve	Total equity
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 September 2006	6,841	8,496	871	10,907	-	(200)	26,915
Profit for the year	-	-	-	262	-	-	262
Currency translation	-	-	-	-	(7)	-	(7)
	-	-	-	262	(7)	-	255
Options exercised	7	17	-	-	-	-	24
Share-based payments	-	-	-	121	-	-	121
Dividend paid	-	-	-	(371)	-	-	(371)
At 31 August 2007	6,848	8,513	871	10,919	(7)	(200)	26,944
Profit for the year	-	-	-	2,494	-	-	2,494
Currency translation	-	-	-	-	75	-	75
	-	-	-	2,494	75	-	2,569
Shares acquired by share trust	-	-	-	-	-	(372)	(372)
Share-based payments	-	-	-	100	-	-	100
Dividend paid	-	-	-	(439)	-	-	(439)
At 31 August 2008	6,848	8,513	871	13,074	68	(572)	28,802

  ARMOUR GROUP PLC

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 August 2008

	Note	31 August  2008 £000	31 August  2007 £000
Cash flow from operating activities
Cash generated from operations	7	3,124	5,892
Income taxes paid		(1,308)	(919)
Net cash from operating activities		1,816	4,973
Investing activities
Acquisition of subsidiary undertaking, net of cash acquired		(4,302)	(155)
Disposal of subsidiary undertaking, net of cash disposed		400	-
Purchase of property, plant and equipment		(1,196)	(718)
Sale of property, plant and equipment		147	84
Expenditure on intangible assets		(1,506)	(646)
Invested in associated undertakings		-	(372)
Interest received		166	22
Net cash used in investing activities		(6,291)	(1,785)
Financing activities
Proceeds on issue of shares		-	24
Dividend paid		(439)	(371)
Repayment of bank loans		(720)	(720)
Repayment of finance lease creditors		(26)	(44)
Shares acquired by share trust		(372)	-
Interest paid		(726)	(511)
Net cash used in financing activities		(2,283)	(1,622)
Net (decrease)/increase in cash, cash equivalents and bank overdrafts	8	(6,758)	1,566
Currency variations on cash, cash equivalents and bank overdrafts		74	(8)
Cash, cash equivalents and bank overdrafts at the start of the year		892	(666)
Cash, cash equivalents and bank overdrafts at the end of the year		(5,792)	892

  

ARMOUR GROUP PLC

Year ended 31 August 2008	Armour  Auto £000	Armour  Home £000	Central operations £000	Total £000
Revenue	14,409	39,599	-	54,008
Profit/(loss) before taxation	1,284	4,872	(2,671)	3,485
Balance Sheet
Assets	8,557	18,650	21,602	48,809
Liabilities	(2,281)	(6,538)	(11,188)	(20,007)
Net Assets	6,276	12,112	10,414	28,802
Other
Capital expenditure	(210)	(973)	(13)	(1,196)
Depreciation	209	397	13	619
Amortisation of intangible assets	133	323	-	456

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

 

Year ended 31 August 2007	Armour  Auto £000	Armour  Home £000	Central operations £000	Total £000
Revenue	17,290	37,881	-	55,171
Profit/(loss) before taxation	2,158	4,600	(2,255)	4,503
Balance Sheet
Assets	9,709	16,008	21,147	46,864
Liabilities	(3,267)	(7,335)	(9,318)	(19,920)
Net Assets	6,442	8,673	11,829	26,944
Other
Capital expenditure	(286)	(325)	(39)	(650)
Depreciation	234	395	9	638
Amortisation of intangible assets	139	401	-	540

The Group's secondary reporting format for reporting segment information is geographic segments.

	Revenue by location of customers		Total assets by location of assets		Capital expenditure by location of assets
	2008 £000	2007 £000	2008 £000	2007 £000	2008 £000	2007 £000
United Kingdom	45,855	46,930	28,349	26,593	(1,185)	(636)
Rest of Europe	6,346	6,624	446	357	(8)	(3)
Rest of world	1,807	1,617	7	(6)	(3)	(11)
	54,008	55,171	28,802	26,944	(1,196)	(650)

	31 August  2008 £000	31 August  2007 £000
Current taxation expense
UK Corporation Tax on profit for the year	(478)	(1,211)
Adjustment in respect of prior years	36	10
Income tax of overseas operations	(47)	(38)
Total current taxation expense	(489)	(1,239)
Deferred taxation expense
UK operations	(544)	(12)
Adjustment in respect of prior years	62	-
Overseas operations	(20)	(11)
Total deferred taxation expense	(502)	(23)
Total taxation expense	(991)	(1,262)

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

	31 August  2008 £000	31 August  2007 £000
Profit on ordinary activities before taxation	3,485	4,503
Profit multiplied by the rate of UK corporation tax of 29.17% (2007: 30%)	(1,017)	(1,351)
Effects of:
Expenses not deductible for taxation purposes	(166)	(146)
Taxation credits (Research and Development and options relief)	40	53
Recognition of losses carried forward	11	-
Use of previously unrecognised losses	20	175
Lower taxation rates on overseas profit and marginal relief	10	3
Corporate and deferred taxation rate differences	13	(6)
Adjustments in respect of prior years	98	10
Total taxation expense	(991)	(1,262)

The current year rate of UK Corporation Tax is shown as 29.17% reflecting the rate change from 30% to 28% effective from April 2008.

		£000
Non-current assets		463
Inventories		547
Trade and other receivables		600
Trade and other payables		(183)
		1,427
Sale proceeds		400
Cost of sale		(30)
Provision for onerous lease		(120)
		250
Loss before goodwill		(1,177)
Goodwill written off		(1,625)
Loss after taxation for the year		(177)
Loss on disposal		(2,979)

The trading result for the year ended 31 August 2007 of the discontinued operations is shown below:

		£000
Revenue		2,185
Expenses		(2,454)
Loss before taxation		(269)
Taxation		92
Loss after taxation for the year		(177)

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 67,191,706 (31 August 2007: 67,493,840). Diluted earnings per ordinary share is calculated with reference to 68,044,400 (31 August 2007: 68,831,976) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is 852,694 (31 August 2007: 1,338,136).

At 31 August 2008, the Armour Employees' Share Trust held 3,424,000 (31 August 2007: 966,000) ordinary shares. The weighted average number of ordinary shares held by the Armour Employees' Share Trust during the year of 1,288,361 (31 August 2007: 966,000) are not included in either the weighted average, or diluted weighted average, ordinary shares in issue during the financial year.

Underlying earnings per ordinary share are also shown calculated by reference to earnings before share-based payments. The Directors consider that this gives a useful additional indication of underlying performance. It should be noted that the term "underlying" is not defined under IFRS and may not therefore be comparable with similarly titled profit measures reported by other entities. 

	31 August 2008			31 August 2007
	£000	Basic p	Diluted p	£000	Basic p	Diluted p
Total operations
Profit for the financial period	2,494	3.7	3.7	262	0.4	0.4
Share-based payments	100	0.2	0.1	121	0.2	0.2
Underlying earnings	2,594	3.9	3.8	383	0.6	0.6
Continuing operations
Profit from continuing operations	2,494	3.7	3.7	3,241	4.8	4.7
Share-based payments	100	0.2	0.1	115	0.1	0.1
Underlying earnings	2,594	3.9	3.8	3,356	4.9	4.8

	31 August  2008 £000	31 August  2007 £000
Proposed dividend for the year of 0.65p (31 August 2007: 0.65p) per ordinary share	(423)	(439)

The Board is recommending an unchanged dividend for the year of 0.65 pence per ordinary share. The proposed dividend for the year has not been accrued in the Consolidated Balance Sheet as at 31 August 2008. The dividend proposed in the financial statements as at 31 August 2007, and approved by shareholders at the Annual General Meeting held on 11 December 2007, was charged to reserves and paid during the year. 

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

7. Net Cash Inflow from Operations

	Twelve months to 31 August 2008 £000	Twelve months to 31 August 2007 £000
Profit from operations	4,029	5,243
Loss from trading of discontinued operations	-	(269)
Depreciation of property, plant and equipment	619	715
Amortisation of intangible assets	456	553
Share-based payments	100	121
(Gain)/loss on sale of property, plant and equipment	(68)	9
Movements before working capital	5,136	6,372
Increase in inventories	(2,335)	(1,201)
Decrease/(increase) in trade and other receivables	810	(1,926)
(Decrease)/increase in trade, other payables and provisions	(487)	2,647
Net cash from operations	3,124	5,892

8. Reconciliation of Net Cash Flow to Movement in Net Debt

Net debt incorporates the Group's borrowings, bank overdrafts and obligations under finance leases, less cash and cash equivalents. A reconciliation of the movement in the net debt from the beginning to the end of the year is shown below:

	Twelve months to 31 August 2008 £000	Twelve months to 31 August 2007 £000
Net (decrease)/increase in cash and cash equivalents	(6,758)	1,566
Net cash outflow from debt and lease financing	746	764
Other non-cash movements	42	(43)
(Increase)/decrease in net debt	(5,970)	2,287
Opening net debt	(2,904)	(5,191)
Closing net debt	(8,874)	(2,904)

9. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute the Group's financial statements for the year ended 31 August 2008 and the year ended 31 August 2007. 

The financial statements for the year ended 31 August 2007 were prepared in accordance with applicable UK Generally Accepted Accounting Practice and have been delivered to the Registrar of Companies. Details of the affect on those financial statements having subsequently adopted IFRS are given in note 11 to this preliminary announcement. The financial statements for the year ended 31 August 2008 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors' report on both accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under sections 237(2) or (3) of the Companies Act 1985.

The full audited financial statements of Armour Group plc for the period ended 31 August 2008 are expected to be posted to shareholders no later than 22 December 2008 and will be available to the public at the Company's registered office, Lonsdale House, 7-9 Lonsdale Gardens, Tunbridge Wells Kent, TN1 1NU and available to view on the Company's website at www.armourgroup.uk.com from that date. 

10. Annual General Meeting

The Annual General Meeting will be held at the offices of Arnold & Porter (UK) LLP, Tower 42, 25 Old Broad Street, London, EC2N 1HQ on 29 January 2009.

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

11. First time adoption of IFRS

Reconciliations and explanatory notes on how the transition to IFRS has affected profit and net assets previously reported under UK GAAP are given below:

Profit and Loss Account Reconciliation for the Year Ended 31 August 2007. 

		UK GAAP £000	Transition  adjustments £000	IFRS £000
Revenue
Continuing operations		55,171	-	55,171
Discontinued operations		2,185	(2,185)	-
		57,356	(2,185)	55,171
Profit from operations
Continuing operations		4,118	1,125	5,243
Discontinued operations		(360)	360	-
		3,758	1,485	5,243
Share of (loss)/profit of associated undertakings		(15)	18	3
Finance income		22	-	22
Finance costs		(765)	-	(765)
Profit before taxation		3,000	1,503	4,503
Taxation expense		(1,155)	(107)	(1,262)
		1,845	1,396	3,241
Discontinued operations		(2,711)	(268)	(2,979)
(Loss)/profit for the financial year		(866)	1,128	262

Summary of adjustments	Sub-note	£000
Reversal of amortisation of goodwill	a	1,168
Development costs capitalised in the financial year	c	539
Amortisation and amounts written off capitalised development costs	c	(484)
Losses recognised on derivatives	e	(58)
Restatement of lease rental incentives	f	(40)
Restatement of associated undertakings	g	18
Deferred taxation adjustment	h	(15)
Total of adjustments		1,128

The trading result of discontinued operations, being a post taxation loss of £268,000 (inclusive of amortisation of goodwill of £91,000), has been reclassified within the single income statement heading of "Discontinued operations".

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

11. First time adoption of IFRS (continued)

Consolidated Balance Sheet Reconciliation at 1 September 2006.

	Sub- note	UK GAAP £000	Transition  adjustments £000	IFRS £000
Non-current assets
Goodwill	a	23,338	-	23,338
Other intangible assets	b, c	-	950	950
Property, plant and equipment	b	2,256	(151)	2,105
Deferred taxation assets	h, i	291	(291)	-
Total non-current assets		25,885	508	26,393
Current assets
Inventories		9,836	-	9,836
Trade and other receivables		9,702	-	9,702
Cash and cash equivalents		186	-	186
Total current assets		19,724	-	19,724
Total assets		45,609	508	46,117
Current liabilities
Bank overdrafts and borrowings		(1,610)	-	(1,610)
Trade and other payables	e, f, i	(12,631)	(8)	(12,639)
Corporation taxation liability		(916)	-	(916)
Provisions	i	-	(140)	(140)
Total current liabilities		(15,157)	(148)	(15,305)
Non-current liabilities
Borrowings		(3,767)	-	(3,767)
Deferred consideration		(127)	-	(127)
Deferred taxation liability	h, i	-	(3)	(3)
Total non-current liabilities		(3,894)	(3)	(3,897)
Total liabilities		(19,051)	(151)	(19,202)
Total net assets		26,558	357	26,915
Equity
Share capital		6,841	-	6,841
Share premium		8,496	-	8,496
Other reserves		871	-	871
Retained earnings		10,550	357	10,907
Share trust reserve		(200)	-	(200)
Total equity		26,558	357	26,915

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

11. First time adoption of IFRS (continued)

Consolidated Balance Sheet Reconciliation at 31 August 2007.

	Sub- note	UK GAAP £000	Transition  adjustments £000	IFRS £000
Non-current assets
Goodwill	a	19,914	1,168	21,082
Other intangible assets	b, c	-	991	991
Property, plant and equipment	b	1,741	(137)	1,604
Investment in associated undertakings	g	357	18	375
Deferred taxation assets	h, i	291	(291)	-
Total non-current assets		22,303	1,749	24,052
Current assets
Inventories		10,490	-	10,490
Trade and other receivables		11,430	-	11,430
Cash and cash equivalents		892	-	892
Total current assets		22,812	-	22,812
Total assets		45,115	1,749	46,864
Current liabilities
Bank overdrafts and borrowings		(714)	-	(714)
Trade and other payables	e, f, i	(14,714)	50	(14,664)
Corporation taxation liability		(1,146)	-	(1,146)
Provisions	i	-	(296)	(296)
Total current liabilities		(16,574)	(246)	(16,820)
Non-current liabilities
Borrowings		(3,082)	-	(3,082)
Deferred taxation liability	h, i	-	(18)	(18)
Total non-current liabilities		(3,082)	(18)	(3,100)
Total liabilities		(19,656)	(264)	(19,920)
Total net assets		25,459	1,485	26,944
Equity
Share capital		6,848	-	6,848
Share premium		8,513	-	8,513
Other reserves		871	-	871
Retained earnings		9,427	1,492	10,919
Translation reserve	d	-	(7)	(7)
Share trust reserve		(200)	-	(200)
Total equity		25,459	1,485	26,944

ARMOUR GROUP PLC

Preliminary Announcement of the audited financial statements for the year ended 31 August 2008

 

ENDFR EAFFPFSKPFFE

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