22nd Sep 2005 07:01
AVEVA Group PLC22 September 2005 22 September 2005 AVEVA Group plc Adoption of International Financial Reporting Standards AVEVA Group plc ("AVEVA"; stock code: AVV) is preparing for the adoption ofInternational Financial Reporting Standards ("IFRS") as its primary accountingbasis for the year ending 31 March 2006 and the six months ending 30 September2005. As part of this transition and in advance of the interim announcement inNovember 2005, AVEVA is announcing today the impact of the adoption of IFRS onthe year ended 31 March 2005 and the six months ended 30 September 2004. The primary changes to AVEVA's reported financial information from the adoptionof IFRS are as a result of: • requirement not to amortise goodwill; • recognition of intangible assets in connection with the acquisition of Tribon and RealityWave and associated amortisation; • recognition of defined benefit pension schemes in accordance with IAS 19; • inclusion of a fair value charge in relation to employee share options; and • recognition of deferred tax assets and liabilities on a different basis Paul Taylor, Finance Director, commented: "The financial information provided today shows how IFRS impacts AVEVA's recentresults in advance of the interims for the six months ended 30 September 2005.The most significant changes for AVEVA are that goodwill is no longer beingamortised, defined benefit pension schemes are recognised in accordance with IAS19, and the different basis for recognising deferred tax assets and liabilities.There is no change to the underlying cash flows of the business as a result ofadopting IFRS." A summary of the impact of the adoption of IFRS on the profit before tax is setout below: 6 months ended 30 Year ended September 2004 31 March 2005 £'000 £'000Profit before tax as reported under UK GAAP (163) 5,764 Adjustments for:Reversal of goodwill amortisation 1,022 2,331Amortisation of recognised intangibles on Tribon acquisition (538) (1,306)Reversal of fair value adjustment for deferred revenue (290) (380)Holiday pay accrual 110 10Share-based payment charge (8) (23)Accounting for defined benefit pension scheme under IAS 19 2,160 1,601Reversal of SSAP 24 accounting for defined benefit pension scheme 539 1,127 Profit before tax as reported under IFRS 2,832 9,124 A summary of the impact of the adoption of IFRS on the net assets is set outbelow: As at 31 March As at 30 September As at 31 March 2004 2004 2005 £'000 £'000 £'000Total shareholders' funds as reported under UK GAAP 21,570 40,768 43,570 Adjustments for:Dividends not recognised as a liability until declared 699 395 948Recording of defined benefit pension scheme liability (8,500) (5,301) (4,872)Deferred asset re defined benefit pension scheme liability 2,550 1,590 1,462Deferred tax on long leasehold property (263) (259) (256)Holiday pay accruals (237) (127) (227)Deferred tax asset re holiday pay accrual 71 38 68Deferred tax asset re share option exercises 85 118 304Amortisation of intangibles acquired re Tribon - (538) (1,306)Deferred tax movement on intangibles amortisation - 150 366Reversal of amortisation of goodwill - 1,022 2,331Deferred tax on share based payment - 2 7Deferred revenue release re fair value adjustment to Tribon - (290) (380)Deferred tax movement on deferred revenue - 81 106Deferred tax adjustment re tax losses - (242) (794)Retranslation of Tribon goodwill and intangibles - 35 42Total shareholders' funds as reported under IFRS 15,975 37,442 41,369 Further details of the IFRS adjustments are contained in the attached documententitled "AVEVA Group plc - Restatement of financial information underInternational Financial Reporting Standards". Enquiries: AVEVA Group plcPaul Taylor, finance directorTel: 01223 556 611 Hudson SandlerAndrew HayesSandrine GallienJames HillTel: 020 7796 4133 Notes The UK GAAP financial information contained in this document does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. Theauditors have issued unqualified opinions on the AVEVA Group plc's UK GAAPfinancial statements for the years ended 31 March 2004 and 31 March 2005. The UKGAAP financial statements for the years ended 31 March 2004 and 31 March 2005have been delivered to the Registrar of Companies. About AVEVA AVEVA Group plc is one of the world's foremost and fastest-growing lifecycleengineering IT solutions and services providers to the oil and gas, paper andpulp, power, chemical, pharmaceutical and shipbuilding industries. Listed on theLondon Stock Exchange (LSE:AVV), the Group reported, for the year ended March2005, a growth in turnover of 51% over 2004. The Group has grown consistentlysince 1967 on the strength of pioneering engineering technology that protectsthe information assets of its customers from the volatile nature of the ITindustry. The Group's history of innovation spans five decades and has produced most oftoday's major engineering IT technologies. Serving over 1500 clients, AVEVA hasa dominant position in many market sectors both on and offshore. In May 2004,the Group acquired Tribon Solutions AB, the market-leading shipbuilding solutioncompany and now serves 85% of the world's top 20 shipbuilders. The Group's clients include leading plant owner operators, shipbuilders andengineering contractors such as 3M, ALSTOM Power, AMEC, BASF, China HuanqiuContracting & Engineering Corporation, Daewoo Heavy Industries, DaewooShipbuilding & Marine Engineering (DSME), Dalian New Shipbuilding, Du Pont,Electricite de France, Framatome ANP, Halliburton, Hanjin Heavy Industries,Hitachi, Hudong Zhonghua Shipyard, Hyundai Mipo Dockyard, Hyundai Samho HeavyIndustries, Kawasaki Heavy Industries, Kawasaki Shipbuilding Corporation,Kvaerner, Merck, Mitsubishi Heavy Industries, Mitsui Engineering & Shipbuilding,North-West Electric Power Design Institute, Petronas Carigali, SamsungEngineering, Shanghai Waigaoqiao Shipbuilding, Shell, Sinopec EngineeringIncorporation, STX Shipbuilding and Uhde. Headquartered in Cambridge, England, AVEVA Group plc and its operatingsubsidiaries currently employ more than 500 staff worldwide with offices inEngland, Australia, China, France, Germany, Hong Kong, India, Italy, Japan,Malaysia, Norway, Russia, Saudi Arabia, Singapore, Sweden, South Korea and theUSA. About VANTAGETM VANTAGE, the collective name for AVEVA's four-family plant lifecycle productsuite, offers proven, integrated and versatile solutions for engineering IT.Well known for its Plant Design Management System (PDMS), it also addresses datamanagement, project management, engineering design, visualisation, third partysoftware integration, procurement and connecting the business enterprise on acommon foundation. VANTAGE represents AVEVA's commitment to harnessing the bestof technology to answer the needs of good engineering and offers the engineeringworld's most advanced globally-distributed project work solution. VANTAGE isdeveloped upon a proven and evolving technology that has been deployed on majorglobal projects for over 25 years. About PDMSTM VANTAGE Plant Design Management System (PDMS) is a data centric,multi-disciplinary solution for 3D process plant design featuring applicationsand reference data for every engineering discipline. It differs fromconventional 3D approaches by not requiring a drawing engine, but producinggraphics directly from a single, coherent data model of the entire plant. Firstlaunched in 1976, PDMS's architecture was designed to evolve: it has done sothrough many leading operating systems during the progress of the IT industry.The system offers compatibility with all previous versions and many otherleading industry systems. For further information, please contact AVEVA through www.aveva.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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