29th Jun 2005 07:00
Davis Service Group PLC29 June 2005 FOR IMMEDIATE RELEASE 29 June 2005 DAVIS SERVICE GROUP Implementation of IFRS for the publication of comparative results for 2004 Davis Service Group plc ("Davis") today announces the expected impact of theimplementation of Internal Financial Reporting Standards (IFRS) on its financialstatements. As previously announced, there is a limited net impact on theGroup's reported EPS before goodwill amortisation and sale of properties andrestructuring (formerly referred to as 'exceptional items'), which waspreviously reported as 31.69p for the year ended 31 December 2004 under UK GAAPand is 31.67p under IFRS. An unaudited summary of the effects on the group'sfinancial statements is shown below. Consolidated Income Statement Six months ended Twelve months 30 June ended 2004 31 December 2004 £'000s £'000s UK GAAP operating profit in UK GAAP(1) format 47,999 108,086 IFRS format adjustments: Goodwill amortisation (9,388) (20,389)Sale of properties and restructuring 10 4,421 UK GAAP operating profit in IFRS format 38,621 92,118 IFRS adjustments: Reversal of goodwill amortisation 9,388 20,389Recognition of intangible asset amortisation (213) (589)Share based payment expense (51) (109)Pension expense 600 900Operating profit under IFRS 48,345 112,709 Analysis of IFRS operating profit : Operating profit(1) pre sale of properties and restructuring 48,335 108,288Sale of properties and restructuring 10 4,421Operating profit 48,345 112,709 Earnings per share before property sales and restructuring: UK GAAP 13.78p 31.69pIFRS 13.67p 31.67p Net Assets Net assets as at Net assets as at 30 June 31 December 2004 2004 £'000s £'000s Net assets under UK GAAP 437,933 435,944 Adjusted by: Reversal of goodwill amortisation 8,864 19,878Share based payment expense (23) (52)Pension liabilities previously unrecognised (32,753) (33,291)Reversal of final dividends 10,626 23,039Deferred tax adjustments (685) (1,673)Net assets under IFRS 423,962 443,845 Kevin Quinn, Finance Director of Davis said: "We have completed our review of the implementation of IFRS and are pleased toannounce that, excluding the reversal of goodwill amortisation, there is verylimited impact on our EPS. In addition, the adoption of IFRS does not have anyimpact on the fundamentals of our business, our strategy or future cash flows." The Group will be holding a presentation today for analysts to discuss theimpact of IFRS on its accounts. The full details of the changes to ourhistorical results are available on Davis's website: www.dsgplc.co.uk. For further information contact: Davis Service Group Financial Dynamics Kevin Quinn Finance Director Richard MountainKelly Pone Group Accounting Manager Robert GurnerTelephone 020 7259 6663 Telephone 020 7269 7291 Disclaimer Standards currently in issue and adopted by the EU are subject to interpretationissued from time to time by the International Financial ReportingInterpretations Committee (IFRIC). Further standards may be issued by the IASBthat will be adopted for financial years beginning on or after 1 January 2005.Additionally, IFRS is currently being applied in the United Kingdom and in alarge number of countries simultaneously for the first time. Furthermore, due toa number of new and revised Standards included within the body of Standards thatcomprise IFRS, there is not yet significant established practice on which todraw in forming decisions regarding the interpretation and application.Accordingly, practice is continuing to evolve. At this preliminary stage,therefore, the full financial effect of reporting under IFRS as it will beapplied and reported on in the Group's first IFRS financial statements for theyear ended 31 December 2005 may be subject to change. -------------------------- (1) Operating profit pre goodwill amortisation and exceptional items This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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