21st Jul 2005 15:06
Atkins (WS) PLC21 July 2005 NEWS RELEASE WS Atkins plc Tel: +44 (0)1372 726140 Woodcote Grove, Ashley Road Fax: +44 (0)1372 740055 Epsom, Surrey KT18 5BW [email protected] United Kingdom www.atkinsglobal.com Atkins announces impact of adoption of International Financial Reporting Standards As part of its preparation for the adoption of International Financial ReportingStandards (IFRS), WS Atkins plc ("Atkins" or "the Group") today was to hold aseminar for analysts on the anticipated impact of IFRS on its results for theyear ended 31 March 2005. However, given incidents in London today the decisionwas made to cancel the presentation. Atkins has to date prepared its consolidated accounts in compliance with UKGenerally Accepted Accounting Principles (UK GAAP). From 1 April 2005 the Groupis required by European Directives to report its consolidated accounts underInternational Financial Reporting Standards (IFRS). The first full yearreporting under IFRS will be the year ending 31 March 2006. Highlights Conversion to IFRS is an accounting change which should have no impact on theGroup's operational performance, risk profile or ability to generate cash.Financing arrangements and dividend payments are not expected to be affected asthere are sufficient distributable reserves to enable payment of dividends toshareholders for the foreseeable future. The effect of IFRS on the Group's reported profits for the period ended 31 March2005 is not significant. Net assets are, however, significantly affected byrecognition of the deficit on the Group's defined benefit pension schemes. The standards in respect of PFI/PPP concessions have not been finalised and onlydraft interpretations are available. These have fundamental accountingimplications for the Group's interests in such concessions, particularlyMetronet. The guidance is potentially subject to change following a consultationprocess which is currently ongoing. As a result, the Pro-forma indicative IFRSresults given below are indicative only and further amendment to these figureswill be necessary once the new accounting rules have been finalised in thisarea. A summary of the effect of the restatement on the 2005 consolidated accounts,which are unaudited follows: Results for period ended 31 March 2005 - unaudited Pro-forma indicative UK GAAP IFRS* IFRS** £m £m £m Profit attributable to equity shareholders 38.6 38.9 40.9Fully diluted earnings per share 38.4p 38.7p 40.7pNet assets / (liabilities) 118.2 (44.9) (51.1)Cashflow from operations 82.6 88.1 88.1Net funds 106.7 106.7 106.7 * excluding the impact of IFRIC Drafts 12-14 on concession accounting which are subject to IFRIC adoption and EU endorsement, and IAS 32 and 39 which will be adopted with effect from 1 April 2005. ** including the indicative impact of IFRIC Drafts 12-14 and IAS 32 and 39. The primary changes to the Group's reported financial information for the yearended 31 March 2005 following the adoption of IFRS are as a result of: • Recognising the deficit on defined benefit pension schemes on the balance sheet; • Ceasing to amortise goodwill; and • Changes to the segmental disclosures. The Group has elected not to adopt the standards on Financial Instruments (IAS32 and IAS 39) until 1 April 2005. These standards, however, have a significantimpact upon the Group and particularly affect the results and net assets of theGroup's PFI/PPP concessions, particularly Metronet. Pro-forma indicative IFRSfinancial statements, which include the impact of IAS 32 and IAS 39 as if theGroup had adopted them for the year ended 31 March 2005, are given. The effect of the adoption of IFRS in respect of the Group's consolidatedaccounts for the year ended 31 March 2005 is set out in detail in a report thatcan be downloaded from the company's website as from 3.00pm today atwww.atkinsglobal.com. 21 July 2005ENQUIRIES: Atkins Robert MacLeod, Group Finance Director Tel: + 44 (0)1372 726140 BrunswickMike Smith, Deborah Done Tel: + 44 (0)20 7404 5959 SUPPLEMENTARY INFORMATION: 1. AtkinsAtkins (www.atkinsglobal.com) plans, designs and enables the delivery of complexinfrastructure and buildings for clients in the public and private sectorsacross the world. Atkins is the largest multi-disciplinary consultancy inEurope; the largest engineering consultancy in the UK; and the seventh largestdesign firm in the world (sources: New Civil Engineer - Consultants File 2005;Swedish Federation of Consultant Engineers & Architects - 2004; Engineering News- Record - 2004). 2. Analyst PresentationA presentation for analysts will be held today at The Lincoln Centre, 18Lincoln's Inn Fields, WC2A 3ED, at 3.00pm. A webcast of the presentation willsubsequently be available via the Company's website, www.atkinsglobal.com. Ends This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ATK.L