28th Mar 2006 07:02
Wolverhampton& Dudley Breweries PLC28 March 2006 28 March 2006 The Wolverhampton & Dudley Breweries, PLC Adoption of International Financial Reporting Standards (IFRS) The Wolverhampton & Dudley Breweries, PLC ("the Group") today releases restatedconsolidated financial information for the year ended 1 October 2005, applyingInternational Financial Reporting Standards. The adoption of IFRS will have no impact on the underlying business, cash flowsor debt covenants of the Group. The key headlines are: Year ended 1 October 2005 UK GAAP IFRS Change Revenue (£m) 597.3 556.1 (41.2)Profit before tax (£m) 47.9 54.2 6.3Profit after tax (£m) 33.4 39.1 5.7Basic earnings per share (pence) 44.3 51.9 7.6Net assets as at 1 October 2005 (£m) 758.5 652.1 (106.4) The accounting policy changes that have the most significant impact on thefinancial statements of the Group for the year ended 1 October 2005 are: • Excise duty excluded from turnover and operating expenses - no impact on operating profit. • Goodwill amortisation ceases - operating profit increased by £7.1m. • Deferred tax liability recognised on property revaluation - net assets reduced by £89.9m, tax charge reduced by £1.0m. • Post employment obligations - net assets reduced by £65.6m excluding deferred tax. • Timing of the recognition of dividends - net assets increased by £19.8m. These changes are further explained in Section 4 'Changes from UK GenerallyAccepted Accounting Principles (UK GAAP) to IFRS' and detailed reconciliationsare shown in the appendices to this report. CONTENTS 1 Background 2 Basis of preparation 3 First time adoption options 4 Changes from UK GAAP to IFRS 5 Accounting policies under IFRS 6 Appendices: Restated IFRS consolidated financial statements The full text of this announcement will be available on our websitewww.wdb.co.uk. Enquiries: Paul Inglett, Finance Director Tel: 01902 329516 1 Background Following a European Union regulation issued in 2002, all EU listed companiesare required to report their consolidated financial statements under IFRS forall reporting periods commencing after 1 January 2005. IFRS will apply for thefirst time to the Group's consolidated financial statements for the year ending30 September 2006, including comparative information from the date oftransition, 2 October 2004. The first results to be published under IFRS will bethe interim results for the six months ending 1 April 2006. The purpose of this report is to explain how the Group's financial performancefor the year ended 1 October 2005 and its financial position as at that date,prepared under IFRS, differs from that previously reported under UK GAAP. The format of the IFRS primary financial statements is presented under IAS 1 'Presentation of Financial Statements'. There are a number of presentational andclassification differences in these statements (See appendices). The implementation of IFRS may result in increased volatility in reportedresults and net assets. 2 Basis of preparation The restated results have been prepared on the basis of all IFRS issued by theInternational Accounting Standards Board which are relevant to the Group andexpected to be effective for 2006 financial reporting, with the exception of IAS34 'Interim Financial Reporting' which is not mandatory in the UK. If theEuropean Commission does not adopt all of these standards in time for thefinancial reporting at September 2006, or the issue of further interpretationsby the International Financial Reporting Interpretation Committee (IFRIC) inadvance of the reporting date, this could result in the need to change the basisof accounting or presentation of certain financial information from thatpresented in this document. The financial information in this document isunaudited. 3 First time adoption options IFRS requires a Group to comply with each accounting standard effective at thereporting date for its first full set of IFRS statements. Usually, the standardsare applied retrospectively. IFRS1 'First-Time Adoption of International Financial Reporting Standards'outlines the procedures a company or group must follow when adopting IFRS forthe first time. It offers certain exemptions from the full requirements of IFRSin the year of transition. The Group has elected to apply the followingexemptions: a) Business combinations (IFRS 3): those business combinations prior tothe transition date have not been restated on an IFRS basis. b) Valuation of properties (IAS 16): the carrying value of property, plantand equipment revalued in the year ended 2 October 2004 under UK GAAP has beendeemed to be cost at the date of transition. All other property has been fairvalued at the date of transition under IFRS. c) Employee benefits (IAS 19): the cumulative net actuarial losses inrelation to employee benefit schemes have been recognised in full at thetransition date as an adjustment to equity. d) Financial instruments (IAS 32 and IAS 39): IAS 32 'FinancialInstruments: Disclosure and Presentation' and IAS 39 'Financial Instruments:Recognition and Measurement' will not be applied to the comparative period. Thecomparative period has been prepared on the basis of previous UK GAAP forfinancial instruments. The Group will apply IAS 32 and IAS 39 for the yearending 30 September 2006. e) Share based payments (IFRS 2): the Group has applied IFRS 2 'Sharebased payments' to equity settled awards that were granted after 7 November 2002but not vested at 1 January 2005. 4 Changes from UK GAAP to IFRS a) Revenue Revenue, previously identified as turnover under UK GAAP, includes only thegross inflows of economic benefits received and receivable by the Group. Amountscollected on behalf of third parties such as excise duty are not economicbenefits which flow to the Group. Excise duty is excluded from revenue where itrelates to brewing and packaging of products on which the Group is accountableto the Government for the duty. For the year ended 1 October 2005 revenue has been reduced by £41.2m. This hasbeen reclassified within the income statement and therefore has no impact onreported profit. b) Business combinations Under UK GAAP, goodwill is amortised over its expected useful economic life upto a presumed maximum of 20 years, whereas under IFRS goodwill is considered tohave an indefinite life and is not amortised. Instead it is tested forimpairment annually or more frequently if circumstances indicate that impairmentmay have occurred. Goodwill has been tested for impairment at 2 October 2004 and1 October 2005 and no impairment adjustment is required. Goodwill amortisationof £7.1m charged under UK GAAP since the date of transition has been credited tothe income statement. Any future negative goodwill will be written off immediately to the incomestatement. c) Intangible assets In accordance with IAS 38 'Intangible Assets', tangible assets of £0.8m at 2October 2004 (under UK GAAP) have been reclassified under IFRS to intangibleassets. This consists of computer software costs, which are amortised overthree years. There is no impact on the income statement as depreciation ratesand amortisation rates remain unchanged. Intangible assets arising on an acquisition are recognised separately fromgoodwill if the fair value of the asset can be identified separately andmeasured reliably. On the acquisition of Jennings Brothers PLC in the year ended 1 October 2005,£2.8m of the goodwill arising on acquisition has been reclassified to intangibleassets. This represents the fair value of the acquired brand name. d) Post employment obligations Pensions The Group accounted for defined benefit post retirement benefits under UK GAAPin accordance with Statement of Standard Accounting Practice (SSAP) 24 and alsogave disclosures under Financial Reporting Standard (FRS) 17 in accounting forits pension obligations. Pension costs were charged to the profit and loss account over the averageexpected service life of current employees. Actuarial surpluses and deficitswere amortised over the expected remaining service lives of current employees.Any differences between the amount charged to the profit and loss account andpayments made to the scheme were treated as assets and liabilities in thebalance sheet. Under IFRS, pension accounting costs for defined benefit plans are assessed bydetermining the pension obligation using the projected unit credit method. The income statement bears the service cost as part of operating profit, andinterest on pension scheme liabilities less the expected return on pensionscheme assets as finance costs. Actuarial gains and losses are recognised in the income statement over theexpected average remaining working lives of the employees only to the extentthat their net cumulative amount exceeds 10% of the greater of the present valueof the obligation and the fair value of the plan assets at the end of theprevious year. Unrecognised actuarial gains and losses are reflected in thebalance sheet. The present value of pension obligations is measured by reference to marketyields on high corporate bonds which have terms to maturity approximating to theterms of the related pension liability. Plan assets are measured at fair value. The Group has recognised all cumulative actuarial gains and losses for allexisting defined benefit pension plans as at 2 October 2004, reducing net assetsby £64.7m (before deferred tax). Other post employment obligations The Group operates a scheme which provides post-retirement healthcare benefitsto certain retired employees and their dependent relatives. The present value ofestimated future benefit payments has been included in the balance sheet (2October 2004: £0.3m, 1 October 2005: £0.3m). e) Financial instruments Financial instruments for the year ended 1 October 2005 are recorded inaccordance with current UK GAAP accounting policies. The Group uses interest rate swaps to fix the interest rate payable on thefloating rate tranches of its secured loan notes. These derivative financialinstruments have qualified for cash flow hedge accounting so that changes infair value are recognised in reserves for the effective portion of the hedge. Aliability of £14.3m will be recorded in the opening balance sheet for the yearending 30 September 2006, reflecting the fair value of the swaps at thisreporting date under IFRS. f) Share options Under UK GAAP at 2 October 2004, the profit and loss account was charged inrespect of the intrinsic value of the Long Term Incentive Plan at the date ofgrant over the performance period, where performance criteria must be satisfied.IFRS requires the fair value of all equity based transactions at the date ofgrant to be charged to the income statement. The fair value has been determinedby applying the Black-Scholes valuation model and is being charged to the incomestatement evenly over the vesting periods (adjustments to the income statement:6 months to 2 April 2005 £0.1m, year ended 1 October 2005 £0.2m). g) Deferred tax IAS 12 'Income taxes' requires deferred tax to be provided on all temporarydifferences between the tax base and the carrying value of assets andliabilities in the financial statements rather than just on timing differencesas under UK GAAP. Specifically, deferred tax is now recognised on the rolledover gains on property disposals and asset revaluations. As at 2 October 2004,an additional deferred tax liability of £91.4m has been recorded, reducing netassets. In addition, deferred tax assets have been recorded at 2 October 2004 for thefollowing: Pension scheme deficit £19.5mShare based payments £1.9m As at 1 October 2005, a deferred tax liability of £89.9m has been recognised inrespect of property and a further £18.1m in respect of the Burtonwood, Jenningsand English Country Inns acquisitions. Deferred tax assets have been recorded at 1 October 2005 for the following: Pension scheme deficit £19.7mShare based payments £2.3m h) Dividends Dividends relating to an accounting period are dealt with in that period underUK GAAP. IFRS does not permit recognition of a dividend until it is approved,usually after the accounting period to which it relates. The effect of thischange is to increase net assets by £16.9m at 2 October 2004. i) Financing costs Financing costs now comprise interest payable on borrowings, interest receivableon funds invested, interest on pension scheme liabilities net of expected returnon assets, and gains and losses on hedging instruments that are recognised inthe income statement. j) Leases Premiums paid on the acquisition of leasehold property were classified as fixedassets under UK GAAP. Under IAS 16 'Property, Plant and Equipment' premiums are considered to beadvance rent and so have been reclassified as other non-current assets (£0.6m asat 2 October 2004, £1.0m as at 1 October 2005). Depreciation previously chargedhas been reclassified as rent. 5 Accounting policies under IFRS a) Basis of preparation This financial information has been prepared in accordance with IFRS as endorsedby the EU or are expected to be effective for the year end. The disclosuresrequired by IFRS 1 concerning the transition from UK GAAP to IFRS are given inthe appendices to this report. The financial information has been prepared on the historic cost basis, asmodified for the revaluation of certain properties and financial instruments.The principle accounting policies adopted are set out below. b) Basis of consolidation The consolidated financial statements incorporate the audited financialstatements of The Wolverhampton & Dudley Breweries, PLC and all of itssubsidiary undertakings. The results of new subsidiary undertakings are includedin the Group accounts from the date on which control transfers to the Group or,in the case of disposals, up to the effective date of disposal. Transactionsbetween Group companies are eliminated on consolidation. c) Revenue recognition Revenue represents the value of goods and services supplied to customers, andrents receivable from licensed and unlicensed properties. Revenue for drink,food and accommodation is recognised at the point the goods or services areprovided. Machine income is recognised as earned or received. Rental income isrecognised in respect of the period to which it relates. Revenue is recorded netof discounts, intra-Group transactions and VAT. Amounts collected on behalf ofthird parties such as excise duty are not economic benefits which flow to theGroup. Revenue will exclude excise duty, relating to the brewing and packagingof products, for which the Group is accountable to the Government. d) Deferred tax Deferred tax is provided in full, using the liability method, on all temporarydifferences that have originated but not reversed by the balance sheet datewhich gave rise to an obligation to pay more or less tax in the future.Temporary differences are differences between the carrying value of assets andliabilities and their tax base. Deferred tax assets are recognised to the extent that is probable that futuretaxable profit will be available against which the temporary differences can beutilised. Deferred tax is calculated using tax rates that are expected to apply when therelated deferred asset is realised or the deferred taxation liability issettled. e) Property, plant and equipment • Freehold and leasehold properties are stated at valuation or at cost. Plant, furnishings, equipment and other similar items are stated at cost. • Freehold buildings are depreciated to residual value on a straight line basis over 50 years. • Other tangible fixed assets are depreciated to residual value on a straight line basis at rates calculated to provide for the cost of the assets over their anticipated useful lives. Leasehold properties are depreciated over the lower of the lease period and 50 years and other tangible assets over periods ranging from three to 15 years. • Own labour directly attributable to capital projects is capitalised. • Land is not depreciated. An annual assessment will be performed to ensure that residual values are basedon current prices. Payments made on entering into or acquiring leaseholds that are accounted for asoperating leases represent prepaid lease payments and classified as non-currentassets. These are amortised on a straight line basis over the lease term. Valuation of properties Properties are revalued by qualified valuers on a regular basis at open marketvalue so that the carrying amount of an asset does not differ materially fromits fair value at the balance sheet date. When a valuation is below currentcarrying value, the asset concerned is reviewed for impairment. Impairmentlosses are charged to the revaluation reserve to the extent that a previous gainhas been recorded, and thereafter to the income statement. Surpluses onrevaluation are recognised in the revaluation reserve, except where they reversepreviously charged impairment losses, in which case they are recorded in theincome statement. f) Employee benefits Pension costs for the Group's defined benefit post retirement benefits plans aredetermined by the Projected Unit Credit Method, with actuarial calculationsbeing carried out at each year end date. Costs are recognised separately as operating and financing costs in the incomestatement. Operating costs comprise the current service cost, any gains orlosses on settlement or curtailments, and past service costs where benefits havevested. Finance items comprise the interest on plan liabilities and the expectedreturn on plan assets. Actuarial gains or losses comprising differences between actual and expectedreturn on plan assets, changes in plan liabilities due to experience and changesin actuarial assumptions are recognised in the income statement over theexpected average remaining working lives of the employees only to the extentthat their net cumulative amount exceeds 10% of the greater of the present valueof the pension obligation and the fair value of the plan assets at the end ofthe previous year. Unrecognised actuarial gains and losses are reflected in the balance sheet. The liability recognised in the balance sheet for the defined benefit plan isthe present value of scheme liabilities less the fair value of scheme assets. Pension costs for the Group's defined contribution plan are charged to theincome statement in the period incurred. g) Share based payments The fair value of share based remuneration at the date of grant is calculatedusing the Black-Scholes model and charged to the income statement on a straightline basis over the vesting period of the award. The charge to the incomestatement takes account of the estimated number of shares that will vest. h) Intangible assets Goodwill Goodwill arising on acquisition is capitalised and represents the excess of thefair value of the consideration given over the fair value of identifiable netassets and liabilities acquired. Goodwill is subject to an annual impairmentreview or more frequently if events or changes in circumstances indicate thatthe carrying value may be impaired. Any impairment is recognised immediately inthe income statement. Negative goodwill is recognised in the income statement immediately. Other intangible assets Other intangible assets are carried at cost less accumulated amortisation andany impairment losses. This includes software costs which are amortised over three years. Intangible assets arising on acquisition are recognised separately from goodwillif the fair value of the assets can be identified separately and measuredreliably. Amortisation is calculated on a straight line basis over the estimated usefullife of the intangible asset. The carrying values are reviewed for impairment if events or changes incircumstances indicate that their carrying value may be impaired. i) Leases Leases are classified as finance leases if the terms of the lease transfersubstantially all the risks and rewards of ownership to the lessee. All otherleases are classified as operating leases. The cost of assets held under finance leases is included within tangible fixedassets and depreciation is charged in accordance with the policy for the classof asset concerned. The corresponding capital obligations under these leases areshown as creditors. The finance charge element of rentals is charged to theincome statement and classified within finance costs as incurred. Rental costs under operating leases are charged to the income statement on astraight line basis over the term of the lease. j) Financial instruments Other Financial assets Trade loans are classified as held for trading and are recognised initially atcost. Subsequently trade loans are measured at fair value being amounts advancedless deemed impairment. Gains or losses are recognised in the income statementfor the period. Derivative financial instruments The Group uses derivative financial instruments to hedge its exposure tofluctuations in interest rates. Derivative financial instruments are recognisedin the balance sheet at fair value. Changes in the fair value of derivativesthat do not qualify for hedge accounting are charged or credited to the incomestatement in the period. The Group seeks to achieve hedge accounting to mitigate the impact on the Groupof changes in interest rates on the floating tranche of loan notes by matchingthe impact with a fixed rate swap in the income statement. This is recognisedas a cash flow hedge. To qualify for hedge accounting, the hedging relationship must meet severalconditions with respect to documentation, probability of occurrence, hedgeeffectiveness and reliability of measurement. At the inception of thetransaction the Group documents the relationship between hedging instruments andhedged items, as well as the Group's risk management objective and strategy forundertaking various hedge transactions. This process includes linking allderivatives designated as hedges to specific liabilities. The Group alsodocuments its assessment, both at the hedge inception and on a quarterly basis,as to whether the derivatives that are used in hedging transactions have been,and are likely to continue to be, highly effective at offsetting changes in cashflows. The effective part of the changes in fair value of cash flow hedges isrecognised in equity, whilst any ineffective part is recognised immediately inthe income statement. Trade receivables Trade receivables are measured at initial recognition, do not carry any interestand are stated at their fair value. They are subsequently measured at amortisedcost using the effective interest rate method. Trade payables Trade payables are non-interest bearing and are stated at their nominal value. Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held on call withbanks, other short term highly liquid investments with original maturities ofthree months or less and bank overdrafts. Bank overdrafts are shown withinborrowings in current liabilities in the balance sheet. For the purpose of theGroup Cash Flow Statement, cash and cash equivalents are as defined above, netof outstanding bank overdrafts. Borrowings and borrowing costs All loans and borrowings, which include the Group's secured loan notes, arestated initially at the fair value of the consideration received net of issuecosts. Borrowings are subsequently stated at amortised cost; any difference between theproceeds (net of issue costs) and the redemption value is recognised in theincome statement over the period of the borrowings using the effective interestmethod. Borrowing costs are expensed in the period in which they are incurred, exceptfor issue costs which are amortised over the period of the borrowing. Investments Interests in subsidiaries are initially recognised at cost, net of acquisitionfees associated with the investment, less any impairment charge. Investments that are actively traded in organised financial markets are carriedat fair value determined by reference to Stock Exchange quoted market bid pricesat the close of business on the balance sheet date. k) Provisions Provisions are recognised in the balance sheet when the Group has a presentlegal or constructive obligation as a result of a past event and it is probablethat an outflow of economic benefits will be required to settle the obligation. A provision for restructuring is recognised when the Group has approved adetailed and formal restructuring plan, and the restructuring has eithercommenced or has been publicly announced. Future operating losses are notprovided for. Provisions are measured at the Directors' best estimate of the amount requiredto settle the obligation at the balance sheet date. l) Inventories Inventories are stated at the lower of cost and net realisable value. Costincludes direct materials and a proportion of attributable overheads. m) Segmental reporting A business segment is a group of assets and operations engaged in providingproducts or services that are subject to risks and returns that are differentfrom those of other business segments. A geographical segment is engaged inproviding products or services within a particular economic environment that aresubject to risks and returns that are different from those of segments operatingin other economic environments. At 1 October 2005, the Group has four core divisions which are the primarybusiness segments: • Pathfinder Pubs • The Union Pub Company • WDB Brands • Central costs There is no geographical segmentation as the Group trades in one geographicalsegment, being the United Kingdom. n) Dividends Dividends proposed by the Board but unpaid at the year end are recognised in thefinancial statements when they have been approved by the shareholders. Interimdividends are recognised when paid. o) Non- current assets held for sale Assets are held for sale when the value of an asset will be recovered through asale transaction rather than continuing use. This condition is met when the saleis highly probable and the asset is available for immediate sale in its presentcondition. Management must be committed to the sale and the completion should beexpected within one year from the date of classification. Assets held for saleare valued at the lower of carrying value and fair value less costs to sell andare no longer depreciated. The Wolverhampton & Dudley Breweries, PLC Income statement reconciliation - Year ended 1 October 2005 (unaudited) IAS 19 IFRS 3 IFRS 2 IAS 10 IAS 12 IAS 18 Retire- Bus- Share Total Final De- IAS 16 Revenue ment IAS 38 iness based IFRS UK IAS 1 Divi- ferred Revalua- beer Bene- Good- Combin- Pay- Adjust- GAAP Reclass dends Tax tion duty fits will ations ments ments IFRS £m £m £m £m £m £m £m £m £m £m £m £m Revenue 597.3 (41.2) (41.2) 556.1 Operatingexpenses (475.4) 4.0 (0.4) 41.2 2.0 7.0 0.1 0.2 54.1 (421.3) ------- ----- ----- ---- ------ ------- ----- ----- ----- ----- ------- -------Operatingprofit 121.9 4.0 - - (0.4) - 2.0 7.0 0.1 0.2 12.9 134.8 Fixed assetdisposals 4.0 (4.0) (4.0) -Finance income 0.2 0.2Finance costs (78.2) (2.6) (2.6) (80.8) ------- ------ ----- ----- ------ ------- ------ ----- ----- ----- ------- -------Profit beforetax 47.9 - - - (0.4) - (0.6) 7.0 0.1 0.2 6.3 54.2 Tax (14.5) 1.0 0.2 (1.8) (0.6) (15.1) ------- ------ ----- ----- ------ ------- ------ ----- ----- ------ ------- -------Profit aftertax 33.4 - 1.0 (0.4) - (0.4) 7.0 0.1 (1.6) 5.7 39.1 Dividends (29.9) 29.9 29.9 - ------- ------ ------ ----- ------ ------- ------ ----- ----- ------ ------- -------Retainedprofit for theperiod 3.5 - 29.9 1.0 (0.4) - (0.4) 7.0 0.1 (1.6) 35.6 39.1 ------- ------ ------ ----- ------ ------- ------ ----- ----- ------ ------- ------- The Wolverhampton & Dudley Breweries, PLC Balance sheet reconciliation - Year ended 1 October 2005 (unaudited) IAS 19 IFRS 2 IAS 10 IAS 16 Retire- IAS IAS 38 IFRS 3 Share Total Final IAS 12 Lease ment 38 Computer Business based IFRS UK Divi- Deferred Pre- Bene- Good- Soft- Combina- pay- adjust- GAAP dends Tax miums fits will ware tions ments ments IFRS £m £m £m £m £m £m £m £m £m £m £mNon-current assetsGoodwill 105.9 7.0 18.1 25.1 131.0Intangibleassets - 1.1 2.8 3.9 3.9Property,plant andequipment 1,553.1 (1.0) (1.1) (2.1) 1,551.0Othernon-currentassets 21.1 1.0 1.0 22.1 -------- ----- ----- ------ ------ ----- ------ ------ ------ ------ -------- 1,680.1 - - - - 7.0 - 20.9 - 27.9 1,708.0 -------- ----- ----- ------ ------ ----- ------ ------ ------ ------ -------- Current assetsInventories 13.6 13.6Trade andotherreceivables 82.7 (28.7) (28.7) 54.0Current taxasset 5.9 5.9Cash and cashequivalents 76.1 76.1 -------- ----- ----- ------ ------- ----- ------ ------ ----- ------- -------- 178.3 - - - (28.7) - - - - (28.7) 149.6 -------- ----- ----- ------ ------- ----- ------ ------ ----- ------- -------- Current liabilitiesBorrowings (53.8) (53.8)Derivatives - - -Trade andother payables (112.4) 19.8 0.2 20.0 (92.4)Pensionliabilities (3.3) 3.3 3.3 - -------- ------ ----- ------ ------- ----- ------ ------ ----- ------- -------- (169.5) 19.8 - - - - - 3.3 0.2 23.3 (146.2) -------- ------ ----- ------ ------- ----- ------ ------ ----- ------- -------- Non-current liabilitiesBorrowings (894.0) (894.0)Derivatives (0.9) - (0.9)Pensionliabilities - (36.6) (6.0) (42.6) (42.6)Deferred tax (32.8) (89.9) 19.7 (18.1) 2.3 (86.0) (118.8)Othernon-currentliabilities (0.5) (0.3) (0.3) (0.8)Provisions (2.2) (2.2) -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- -------- (930.4) - (89.9) - (17.2) - - (24.1) 2.3 (128.9) (1,059.3) -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- --------Net assets 758.5 19.8 (89.9) - (45.9) 7.0 - 0.1 2.5 (106.4) 652.1 -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- -------- Capital and reservesShare capital 22.9 22.9Share premiumaccount 185.1 185.1Merger reserve 41.5 41.5Revaluationreserve 379.9 (68.7) (68.7) 311.2Capitalredeemptionreserve 6.0 6.0Retainedearnings 121.1 19.8 (21.2) (45.9) 7.0 0.1 2.5 (37.7) 83.4 -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- --------Shareholders'equity 756.5 19.8 (89.9) - (45.9) 7.0 - 0.1 2.5 (106.4) 650.1Minorityinterest inequity 2.0 2.0 -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- --------Total equity 758.5 19.8 (89.9) - (45.9) 7.0 - 0.1 2.5 (106.4) 652.1 -------- ------ ------- ------ ------- ----- ------ ------- ----- ------- -------- The Wolverhampton & Dudley Breweries, PLC Income statement reconciliation - Interims to 2 April 2005 (unaudited) IAS 1 IAS 10 IAS 12 IAS 16 IAS 18 IAS 19 IAS 38 IFRS 2 Reclass Final Deferred Revaluation Revenue Retirement Goodwill Share Total IFRS UK GAAP dividends tax Beer benefits based adjustments IFRS duty payments £m £m £m £m £m £m £m £m £m £m £m Revenue 277.6 (20.0) (20.0) 257.6 Operating expenses (226.4) 2.8 (1.7) 20.0 0.8 3.6 0.1 25.6 (200.8) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------Operating profit 51.2 2.8 - - (1.7) - 0.8 3.6 0.1 5.6 56.8 Fixed asset disposals 2.8 (2.8) (2.8) -Finance income 0.1 0.1Finance costs (21.5) (1.3) (1.3) (22.8) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------Profit before tax 32.6 - - - (1.7) - (0.5) 3.6 0.1 1.5 34.1 Tax (10.1) 0.4 0.2 (0.3) 0.3 (9.8) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------Profit after tax 22.5 - - 0.4 (1.7) - (0.3) 3.6 (0.2) 1.8 24.3 Dividends (10.1) 10.1 10.1 - ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------Retained profit for the period 12.4 - 10.1 0.4 (1.7) - (0.3) 3.6 (0.2) 11.9 24.3 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ The Wolverhampton & Dudley Breweries, PLC Balance sheet reconciliation - Interims - As at 2 April 2005 (unaudited) IAS 10 IAS 12 IAS 16 IAS 16 IAS 19 IAS 38 IAS 38 IFRS 3 IFRS 2 UK GAAP Final Deferred Lease Revalua- Retire- Goodwill Computer Business Share Total divi- tax premiums tion ment software combin- based IFRS dends Benefits ations pay- adjust- ments ments IFRS £m £m £m £m £m £m £m £m £m £m £m £mNon-current assetsGoodwill 99.0 3.6 14.4 18.0 117.0Intangible assets - 0.9 0.9 0.9Property, plant and equipment 1,395.2 (1.0) 52.0 (0.9) 50.1 1,445.3Other non-current assets 22.4 1.0 1.0 23.4 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ 1,516.6 - - - 52.0 - 3.6 - 14.4 - 70.0 1,586.6 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ Current assetsInventories 13.5 13.5Trade and other receivables 49.8 49.8Financial assets 0.9 0.9Cash and cash equivalents 24.9 24.9 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ 89.1 - - - - - - - - - - 89.1 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------Current liabilitiesBorrowings (0.2) (0.2)Derivatives (1.8) (1.8)Trade and other payables (123.6) 10.1 0.1 10.2 (113.4)Pension liabilities (1.9) 0.7 1.2 1.9 - ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ (127.5) 10.1 - - - 0.7 - - 1.2 0.1 12.1 (115.4) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------Non-current liabilitiesBorrowings (740.5) (740.5)Derivatives (9.5) (9.5)Pension liabilities - (66.0) (3.0) (69.0) (69.0)Deferred tax (21.1) (90.7) 19.8 (12.6) 3.1 (80.4) (101.5)Other non-current liabilities (1.6) (0.3) (0.3) (1.9)Provisions (1.2) (1.2) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ (773.9) - (90.7) - - (46.5) - - (15.6) 3.1 (149.7) (923.6) ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------Net assets 704.3 10.1 (90.7) - 52.0 (45.8) 3.6 - - 3.2 (67.6) 636.7 Share capital 22.7 22.7Share premium account 252.2 252.2Merger reserve - -Revaluation reserve 321.7 (68.9) 53.2 (15.7) 306.0Capital redeemption reserve 6.0 6.0Retained earnings 101.7 10.1 (21.8) (1.2) (45.8) 3.6 3.2 (51.9) 49.8 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------Shareholders' equity 704.3 10.1 (90.7) - 52.0 (45.8) 3.6 - - 3.2 (67.6) 636.7 ------ ------ ------- ------ ------ ----- ------ ------ ------ ------ ------ ------ The Wolverhampton & Dudley Breweries, PLC Balance sheet reconciliation - Transition date - As at 2 October 2004 (unaudited) IAS 10 IAS 12 IAS 16 IAS 16 IAS 19 IAS 38 IFRS 2 Final Def- Lease Revaluation Retirement Computer Share Total IFRS divi- erred premiums benefits software based adjustments IFRS UK GAAP dends tax payments £m £m £m £m £m £m £m £m £m £mNon-current assetsGoodwill 109.1 109.1Intangible assets - 0.8 0.8 0.8Property, plant and 1,182.3 (0.6) 53.7 (0.8) 52.3 1,234.6equipmentOther non-current 21.2 0.6 0.6 21.8assets -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- 1,312.6 - - - 53.7 - - - 53.7 1,366.3 -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- Current assetsInventories 13.5 13.5Trade and other 45.0 45.0receivablesCash and cash 16.2 16.2equivalents -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- 74.7 - - - - - - - - 74.7 -------- ------ ------- ------ ------ ------ ------ ------- ------ -------Current liabilitiesBorrowings (3.9) (3.9)Derivatives (1.8) (1.8)Trade and other (131.5) 16.9 (0.2) 16.7 (114.8)payablesPension liabilities (1.5) 1.5 1.5 - -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- (138.7) 16.9 - - - 1.5 - (0.2) 18.2 (120.5) -------- ------ ------- ------ ------ ------ ------ ------- ------ -------Non-currentliabilitiesBorrowings (572.7) (572.7)Derivatives (10.4) (10.4)Pension liabilities - (66.2) (66.2) (66.2)Deferred tax (15.7) (91.4) 19.5 1.9 (70.0) (85.7)Other non current - (0.3) (0.3) (0.3)liabilitiesProvisions (1.5) (1.5) -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- (600.3) - (91.4) - - (47.0) - 1.9 (136.5) (736.8) -------- ------ ------- ------ ------ ------ ------ ------- ------ -------Net assets 648.3 16.9 (91.4) - 53.7 (45.5) - 1.7 (64.6) 583.7 -------- ------ ------- ------ ------ ------ ------ ------- ------ -------Capital and reservesShare capital 21.5 21.5Share premium 209.9 209.9accountRevaluation reserve 321.9 (69.2) 54.9 (14.3) 307.6Capital redeemption 6.0 6.0reserveRetained earnings 89.0 16.9 (22.2) (1.2) (45.5) 1.7 (50.3) 38.7 -------- ------ ------- ------ ------ ------ ------ ------- ------ -------Shareholders' equity 648.3 16.9 (91.4) - 53.7 (45.5) - 1.7 (64.6) 583.7 -------- ------ ------- ------ ------ ------ ------ ------- ------ ------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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