9th Nov 2005 07:01
Wilmington Group Plc09 November 2005 9 November 2005 WILMINGTON GROUP PLC UPDATE ON ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS Wilmington Group plc is preparing for the adoption of International FinancialReporting Standards ("IFRS") as its primary accounting basis for the year ending30 June 2006. As part of this transition, Wilmington Group is today presentingunaudited financial information prepared in accordance with IFRS for the yearended 30 June 2005 and for the six months ended 31 December 2004. The principal changes to Wilmington Group's reported financial information underUK GAAP arising from the adoption of IFRS are as a result of the: • requirement not to amortise goodwill; • recognition of all employee benefit related assets and obligations, principally pensions and share options; • recognition of deferred tax liabilities on a different basis. Basil Brookes, Financial Director of Wilmington Group, commented: "The unaudited financial information provided today shows how IFRS impactsWilmington Group's recent results in advance of its adoption in the 2006financial year. The most significant change is that Wilmington Group will nolonger amortise goodwill, resulting in a clearer presentation of underlyingbusiness performance. For the year ended 30 June 2005 the expected impact of theadoption of IFRS would have been to increase profit attributable to equityshareholders by £3,476k comprising principally a credit of £2,551k in relationto the cessation of goodwill amortisation and a credit of £925k in relation todeferred tax adjustments. Net assets at 30 June 2005 would have increased from£57.6 million to £59.5 million." Enquiries: Charles Brady, Chief ExecutiveBasil Brookes, Finance DirectorWilmington Group plc Tel: 020 7422 6800 Nick Oborne / Kirsty Raper / Yvonne AlexanderWeber Shandwick Tel: 020 7067 0700 INTRODUCTION: Wilmington Group plc and its subsidiaries (together "the Group") are preparingfor the adoption of International Financial Reporting Standards ("IFRS") as itsprimary accounting basis in its consolidated accounts, following the adoption ofRegulation No. 1606/2002 by the European Parliament on 19 July 2002. This press release explains how the Group's previously reported UK GAAPfinancial performance and position are reported under IFRS. It provides, on anIFRS basis, reconciliations from UK GAAP to IFRS for the following: • the Group's unaudited consolidated income statement for the year ended 30 June 2005; • the Group's unaudited consolidated balance sheet at 30 June 2005; • the Group's unaudited consolidated cash flow statement for the year ended 30 June 2005; • the Group's unaudited consolidated balance sheet at 1 July 2004 • the Group's unaudited consolidated income statement for the six months ended 31 December 2004; • the Group's unaudited consolidated balance sheet at 31 December 2004; and • the Group's unaudited consolidated cash flow statement for the six months ended 31 December 2004 The consolidated opening balance sheet as at 1 July 2004, consolidatedbalance sheets as at 31 December 2004 and 30 June 2005, and theconsolidated income statements for the six months ended 31 December 2004and year ended 30 June 2005, are prepared on the basis set out in "Basisof preparation" below. Attention is drawn to the fact that under IFRS, only a complete set offinancial statements comprising a balance sheet, income statement, statementof changes in equity, cash flow statement, together with comparativeinformation and explanatory notes, can provide a fair presentation of thecompany's financial position, results of operations and cash flows. The financial information contained herein has been prepared by management usingtheir best knowledge and judgement of the expected standards and interpretationsof the IASB, facts and circumstances, and accounting policies that will beapplied when the company prepares its first complete set of IFRS financialstatements as at 30 June 2006. The Group's financial results for the six monthperiod ending 31 December 2005 will be prepared under IFRS. Therefore until such time the possibility cannot be excluded that thecomparative information included in that first complete set of IFRS financialstatements may not be consistent with disclosure below. The financial information presented is unaudited and does not represent thecompany's statutory accounts within the meaning of section 240 of the CompaniesAct 1985. The statutory accounts for the year ended 30 June 2005 have beenreported on by the company's auditors and will be delivered to the Registrar ofCompanies in due course. The report of the auditors on such accounts wasunqualified and did not contain any statement under sections 237(2) or 237(3) ofthe Companies Act 1985. BASIS OF PREPARATION The financial information presented in this document has been prepared on thebasis of all International Financial Reporting Standards ("IFRS"), includingInternational Accounting Standards ("IAS") and interpretations issued by theInternational Accounting Standards Board ("IASB") and its committees, and asinterpreted by any regulatory bodies applicable to the Group. These are subjectto ongoing amendment by the IASB and subsequent endorsement by the EuropeanCommission and are therefore subject to possible change. As a result,information contained within this release will require updating for anysubsequent amendment to IFRS required for first time adoption or those newstandards that the Group may elect to adopt early. 1. IFRS 1 exemptions IFRS 1, "First-time Adoption of International Financial Reporting Standards"sets out the procedures that the Group must follow when it adopts IFRS for thefirst time as the basis for preparing its consolidated financial statements. TheGroup is required to establish its IFRS accounting policies as at 30 June 2005and, in general, apply these retrospectively to determine the IFRS openingbalance sheet at its date of transition, 1 July 2004. This standard provides a number of optional exceptions to this generalprinciple. The most significant of these are set out below, together with adescription in each case of the exception adopted by the Group. a. Business combinations that occurred before the opening IFRS balance sheetdate (IFRS 3, "Business Combinations"). The Group has elected not to apply IFRS 3 retrospectively to businesscombinations prior to 1 July 2004. b. Employee Benefits - actuarial gains and losses (IAS 19, "Employee Benefits") The cumulative net deficit on defined benefit pension schemes and similarbenefits at the transition date has been recognised in full in equity. c. Share-based Payments (IFRS 2, "Share-based Payment") IFRS 2 has been applied to all grants of equity instruments after 7 November2002 that had not vested at 1 July 2005. d. Foreign Currency Translation differences (IAS 21, "The effects of changes inforeign exchange rates") The Group has taken advantage of the IFRS 1 exemption allowing the cumulativetranslation difference on retranslation of subsidiaries' net assets to be set tozero (for all subsidiaries) at the date of transition to IFRS. 2. Presentation of financial information The primary statements within the financial information contained in thisdocument have been presented in accordance with IAS 1, "Presentation ofFinancial Statements". However, this format and presentation may requiremodification in the event that further guidance is issued and as practicedevelops. KEY IMPACT ANALYSIS The analysis below sets out the most significant adjustments arising from thetransition to IFRS for the year ended 30 June 2005. Similar adjustments arisefrom the transition to IFRS for the six months ended 31 December 2004. 1) Presentation of Financial Statements The format of the Group's primary financial statements has been presented inaccordance with IAS 1, "Presentation of Financial Statements". IFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" requiresthe presentation of a single amount on the face of the income statement relatingto discontinued operations. The results of the Group's discontinued operationsin the year ended 30 June 2005 have been shown as a single amount in the Group'sincome statement for that period. 2) Intangible Assets (a) Goodwill and acquired intangible asset amortisation IFRS 3 "Business Combinations" requires that goodwill is not amortised. Insteadit is subject to an annual impairment review. As the Group has elected not toapply IFRS 3 retrospectively to business combinations prior to the openingbalance sheet date under IFRS, the UK GAAP goodwill balance at 30 June 2004(£34.7m) has been included in the opening IFRS consolidated balance sheet and isno longer amortised. From 1 July 2004, business acquisitions have been accounted for in accordancewith IFRS 3, "Business Combinations". In the case of subsequent acquisitions ofminority interests in subsidiaries, the difference between the considerationpayable for the additional interest in the subsidiary and the minorityinterest's share of the assets and liabilities reflected in the consolidatedbalance sheet at the date of acquisition of the minority interest has beentreated as goodwill. (b) Computer software Under UK GAAP, all capitalised computer software is included within tangiblefixed assets on the balance sheet. Under IFRS, only computer software that isintegral to a related item of hardware should be included as property, plant andequipment. All other computer software should be recorded as an intangibleasset. Accordingly, a reclassification has been made in the opening balancesheet of £0.3m between property, plant and equipment and intangible assets. 3) Deferred and Current Taxes The scope of IAS 12, "Income Taxes" is wider than the corresponding UK GAAPstandards, and requires deferred tax to be provided on all temporary differencesrather than just timing differences under UK GAAP. In particular this hasresulted in deferred tax assets and liabilities being set up in respect ofdifferences between the accounts net book value and tax base cost of intangibleassets. It also does not allow the deferred tax liability to be discounted which was theGroup's policy under UK GAAP. IAS 12 also requires deferred tax to be provided in respect of the Group'sliabilities under its post employment benefit arrangements and on other employeebenefits such as share and share option schemes. The tax impact of these andother IFRS adjustments is quantified in the relevant section of this release. 4) Share-based Payments IFRS 2, "Share-based Payment" requires that an expense for equity instrumentsgranted be recognised in the financial statements based on their fair value atthe date of grant. This expense which is in relation to employee option andperformance share schemes is recognised over the vesting period of the scheme. IFRS 2 has been applied to all options granted after 7 November 2002 and notfully vested by 1 July 2005. The Group has adopted the Black Scholes model for the purposes of computing fairvalue under IFRS. 5) Post Employment Benefits The Group currently applies the provisions of SSAP 24 under UK GAAP and providesdetailed disclosure under FRS 17 in accounting for pensions and otherpost-employment benefits. The Group's opening IFRS balance sheet reflects the assets less liabilities ofthe Group's defined benefit schemes totalling a net liability of £0.5m. Thetransitional adjustment of £0.5m to opening reserves comprises the reversal ofentries in relation to UK GAAP accounting under SSAP 24 less the recognition ofthe net liabilities of the Group's defined benefit schemes. The impact on theGroup's income statement arising from the adoption of the IAS 19 is a charge of£20k. A related tax credit of £6k was recognised for the year ended 30 June2005. A movement of £120k in respect of actuarial gains has been recognised as achange in equity for the year ended 30 June 2005. 6) Foreign Exchange Differences Under IAS 21, net exchange differences classified as equity must be separatelytracked and the cumulative amounts disclosed. SSAP 20 does not require separatetracking. 7) Holiday Pay Under IAS 19, accruals for holiday pay should be made. 8) Post Balance Sheet Events IAS 10, "Events after the Balance Sheet Date" requires that dividends declaredafter the balance sheet date should not be recognised as a liability at thatbalance sheet date as the liability does not represent a present obligation asdefined by IAS 37, "Provisions, Contingent Liabilities and Contingent Assets". The final dividends proposed in relation to the financial years ended 30 June2004 and 30 June 2005 (including those payable to minority shareholders insubsidiaries) of £1.7m and £2.2m respectively have been reversed in the relevantbalance sheets and have been or will be charged to equity in the balance sheetsat 30 June 2005 and 30 June 2006. Wilmington Group plc Reconciliation of UK GAAP consolidated profit and loss account to IFRSconsolidated income statement for the year ended 30 June 2005 IFRS2 UK GAAP IFRS 5 IAS 38 IFRS3 Share IAS19 IAS12 IAS19 IFRS format Discontinued Intangible Business Based Employee Deferred Holiday IFRS (unaudited) Operations Assets Combinations Payments Benefits Tax pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Revenue 85,080 (4,384) - - - - - - 80,696Cost of sales (28,471) 925 - - - - - - (27,546) --------------------------------------------------------------------------------------------------Gross profit 56,609 (3,459) - - - - - - 53,150Administration expenses (44,555) 3,379 173 - (34) (16) - (33) (41,086)Amortisation and impairment (6,138) 142 (115) 2,551 - - - - (3,560) --------------------------------------------------------------------------------------------------Profit from operations 5,916 62 58 2,551 (34) (16) - (33) 8,504Finance costs (892) - - - - (4) - - (896) --------------------------------------------------------------------------------------------------Profit on ordinary activities before taxation 5,024 62 58 2,551 (34) (20) - (33) 7,608Tax on profit on ordinary activities (3,307) 24 - - 13 6 925 10 (2,329) --------------------------------------------------------------------------------------------------Profit on ordinary activities after taxation 1,717 86 58 2,551 (21) (14) 925 (23) 5,279Loss on discontinued operations after taxation - (86) - - - - - - (86) --------------------------------------------------------------------------------------------------Profit on ordinary activities after taxation 1,717 - 58 2,551 (21) (14) 925 (23) 5,193 --------------------------------------------------------------------------------------------------Attributable to Equity holders of the parent 1,004 - 58 2,551 (21) (14) 925 (23) 4,480 --------------------------------------------------------------------------------------------------Minority interest 713 - - - - - - - 713 -------------------------------------------------------------------------------------------------- Wilmington Group plc Reconciliation of UK GAAP to IFRS consolidated balance sheet as at 30 June 2005 IFRS2 UK GAAP IAS38 IFRS3 Share IAS 19 IAS12 IAS 21 IAS 19 IFRS format Intangible Business Based Employee Deferred IAS 10 Foreign Holiday IFRS (unaudited) assets Combinations Payments Benefits tax Dividends exchange pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Non-currentassetsGoodwill 37,413 - 4,321 - - - - - - 41,734Other intangible assets 28,315 344 (1,733) - - - - - - 26,926Property, plant and equipment 12,291 (461) - - - - - - - 11,830Deferred tax asset - - - 22 113 - - - 99 234 ------------------------------------------------------------------------------------------------------ 78,019 (117) 2,588 22 113 - - - 99 80,724Current AssetsInventories 1,557 - - - - - - - - 1,557Trade and other receivables 17,803 - - - - - - - - 17,803Cash and cash equivalents 1,841 - - - - - - - - 1,841 ------------------------------------------------------------------------------------------------------ 21,201 - - - - - - - - 21,201 ------------------------------------------------------------------------------------------------------Total Assets 99,220 (117) 2,588 22 113 - - - 99 101,925 ------------------------------------------------------------------------------------------------------ Current liabilitiesTrade and other payables (29,556) - - - - - 2,170 - (329) (27,715)Tax liabilities (1,501) - - - - - - - - (1,501)Bank overdrafts and loans (37) - - - - - - - - (37) ------------------------------------------------------------------------------------------------------ (31,094) - - - - - 2,170 - (329) (29,253) ------------------------------------------------------------------------------------------------------Non-current liabilitiesBank loans and overdrafts (10,000) - - - - - - - - (10,000)Retirement benefit obligation - - - - (378) - - - - (378)Deferred tax liability (528) - (37) - - (2,210) - - - (2,775) ------------------------------------------------------------------------------------------------------ (10,528) - (37) - (378) (2,210) - - - (13,153) ------------------------------------------------------------------------------------------------------Total liabilities (41,622) - (37) - (378) (2,210) 2,170 - (329) (42,406) ------------------------------------------------------------------------------------------------------Net Assets 57,598 (117) 2,551 22 (265) (2,210) 2,170 - (230) 59,519 ------------------------------------------------------------------------------------------------------EquityShare capital 4,180 - - - - - - - - 4,180Share premium account 42,658 - - - - - - - - 42,658Capital reserve 949 - - - - - - - - 949Translation reserve - - - - - - - (16) - (16)Share option reserve - - - 57 - - - - - 57Retained Earnings 7,723 (117) 2,551 (35) (265) (2,210) 2,048 16 (230) 9,481 ------------------------------------------------------------------------------------------------------Equity Shareholders' Funds 55,510 (117) 2,551 22 (265) (2,210) 2,048 - (230) 57,309Minority interests 2,088 - - - - - 122 - - 2,210 ------------------------------------------------------------------------------------------------------Total equity 57,598 (117) 2,551 22 (265) (2,210) 2,170 - (230) 59,519 ------------------------------------------------------------------------------------------------------ Wilmington Group plc Reconciliation of UK GAAP to IFRS consolidated cash flow statement for the yearended 30 June 2005 UK GAAP IFRS IAS38 format Intangible IFRS (unaudited) assets (unaudited) Note £'000 £'000 £'000Net cash from operating activities 2 10,711 - 10,711 Investing activities Purchase of tangible fixed assets (2,667) 353 (2,314) Sale of tangible fixed assets 150 - 150 Purchase of subsidiary undertakings and minority interests (8,735) - (8,735) Sale of subsidiary undertakings 450 - 450 Purchase of goodwill and intangible assets (270) (353) (623) ----------------------------------Net cash used in investing activities (11,072) - (11,072) ----------------------------------Financing activities Dividends paid (2,819) - (2,819) Issue of ordinary shares 308 308 Repayment of loan notes (1,000) - (1,000) Increase in long term loans 3,000 - 3,000 Decrease in bank overdrafts (455) - (455) ----------------------------------Net cash used in financing activities (966) - (966) ----------------------------------Net decrease in cash and cash equivalents (1,327) - (1,327)Cash and cash equivalents at beginning of the year 2,954 - 2,954Cash and cash equivalents acquired during the year 214 - 214Cash and cash equivalents at end of the year 1,841 - 1,841 ---------------------------------- Wilmington Group plc Reconciliation of UK GAAP to IFRS consolidated balance sheet as at 1 July 2004 IFRS2 UK GAAP IAS 38 Share IAS19 IAS12 IAS19 IFRS format Intangible Based Employee Deferred IAS 10 Holiday IFRS (unaudited) Assets Payments Benefits tax Dividends pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Non-current assetsGoodwill 34,681 - - - - - - 34,681Other intangible assets 29,772 106 - - - - - 29,878Property, plant and equipment 11,665 (281) - - - - - 11,384Deferred tax asset - - 9 143 - - 89 241 ---------------------------------------------------------------------------------------- 76,118 (175) 9 143 - - 89 76,184 ----------------------------------------------------------------------------------------Current AssetsInventories 1,874 - - - - - - 1,874Trade and other receivables 17,802 - - - - - - 17,802Cash and cash equivalents 2,954 - - - - - - 2,954 ---------------------------------------------------------------------------------------- 22,630 - - - - - - 22,630 ----------------------------------------------------------------------------------------Total Assets 98,748 (175) 9 143 - - 89 98,814 ----------------------------------------------------------------------------------------Current liabilitiesTrade and other payables (30,312) - - - - 1,746 (296) (28,862)Tax liabilities (1,028) - - - - - - (1,028)Bank overdrafts and loans (492) - - - - - - (492) ---------------------------------------------------------------------------------------- (31,832) - - - - 1,746 (296) (30,382) ----------------------------------------------------------------------------------------Non-current liabilitiesBank loans (7,000) - - - - - - (7,000)Retirement benefit obligation - - - (478) - - - (478)Deferred tax liability (604) - - - (3,136) - - (3,740) ---------------------------------------------------------------------------------------- (7,604) - - (478) (3,136) - - (11,218) ----------------------------------------------------------------------------------------Total liabilities (39,436) - - (478) (3,136) 1,746 (296) (41,600) ----------------------------------------------------------------------------------------Net Assets 59,312 (175) 9 (335) (3,136) 1,746 (207) 57,214 ----------------------------------------------------------------------------------------Capital and ReservesShare capital 4,167 - - - - - - 4,167Share premium account 42,363 - - - - - - 42,363Capital Reserve 949 - - - - - - 949Share option reserve - - 23 - - - - 23Retained Earnings 9,743 (175) (14) (335) (3,136) 1,667 (207) 7,543 ----------------------------------------------------------------------------------------Equity Shareholders' Funds 57,222 (175) 9 (335) (3,136) 1,667 (207) 55,045Minority interests 2,090 - - - - 79 - 2,169 ----------------------------------------------------------------------------------------Total equity 59,312 (175) 9 (335) (3,136) 1,746 (207) 57,214 ---------------------------------------------------------------------------------------- Wilmington Group plc Statement of changes in equity for the year ended 30 June 2005 Share Share Share Capital Option Translation Retained Minority Capital Premium reserve Reserve Reserve Earnings Total Interests Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 June 2004 4,167 42,363 949 23 - 7,543 55,045 2,169 57,214 Profit for year - - - - - 4,480 4,480 713 5,193Exchange translation difference - - - - (16) - (16) - (16)Actuarial gain taken directly to equity - - - - - 120 120 - 120Tax on items taken directly to equity - - - - - (35) (35) - (35) ------------------------------------------------------------------------------------- 4,167 42,363 949 23 (16) 12,108 59,594 2,882 62,476 Dividends - - - - - (2,627) (2,627) (296) (2,923)Issue of share capital 13 295 - - - - 308 - 308Share Option reserve - - - 34 - - 34 - 34Acquisition of minorities during year - - - - - - - (376) (376) -------------------------------------------------------------------------------------Balance at 30 June 2005 4,180 42,658 949 57 (16) 9,481 57,309 2,210 59,519 ------------------------------------------------------------------------------------- Notes to the Consolidated IFRS Statement 1. Earnings per share for the year ended 30 June 2005 UK GAAP IFRS Format IFRS (unaudited) (unaudited) 2005 2005 £' 000 £' 000Profit for the financial year 1,004 4,480Amortisation and impairment of goodwill and intangible 6,097 2,638 assets (net of minority interest and deferred tax)Exceptional items after tax 638 638 ----------------------------Adjusted profit for the financial year 7,739 7,756 ---------------------------- Number NumberAverage number of ordinary shares 83,394,158 83,394,158Exercise of share options 387,373 387,373Diluted average number of ordinary shares 83,781,531 83,781,531Basic earnings per share 1.20p 5.37pDiluted earnings per share 1.20p 5.35pAdjusted earnings per share 9.28p 9.30p 2. Unaudited reconciliation of profit from operations to net cash inflow fromoperating activities for the year ended 30 June 2005. IFRS2 UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS19 IFRS format Discontinued intangible Business Based Employee Holiday IFRS (unaudited) Operations assets Combinations Payments Benefits pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Profit from operations 5,916 62 58 2,551 (34) (16) (33) 8,504Loss from discontinued operations - (62) - - - - - (62)Depreciation of property, plant and equipment 1,794 - (173) - - - - 1,621Amortisation of intangible fixed assets 6,138 - 115 (2,551) - - - 3,702Loss on disposal of property,plant and equipment 36 - - - - - - 36Exchange translation differences (16) - - - - - - (16) Share option charge - - - - 34 - - 34 ------------------------------------------------------------------------------------------Operating cash flows beforemovements in working capital 13,868 - - - - (16) (33) 13,819Decrease in inventories 251 - - - - - - 251Increase in receivables (189) - - - - - (189)Increase in payables 608 - - - - 16 33 657 ------------------------------------------------------------------------------------------Cash generated by operations 14,538 - - - - - - 14,538Tax paid (2,930) - - - - - - (2,930)Interest paid (897) - - - - - - (897) ------------------------------------------------------------------------------------------Net cash from operating activities 10,711 - - - - - - 10,711 ------------------------------------------------------------------------------------------ Wilmington Group plc Reconciliation of UK GAAP consolidated profit and loss account to IFRSconsolidated income statement for the six months ended 31 December 2004 UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS12 IAS19 IFRS format Discontinued Intangible Business Based Employee Deferred Holiday IFRS (unaudited) Operations assets Combinations Payments Benefits Tax pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 39,715 (2,563) - - - - - - 37,152Cost of sales (13,774) 489 - - - - - - (13,285) --------------------------------------------------------------------------------------------------Gross profit 25,941 (2,074) - - - - - - 23,867Administration expenses (22,325) 2,124 87 - (17) (12) - 200 (19,943)Amortisation and impairment (2,389) 71 (58) 1,275 - - - - (1,101) --------------------------------------------------------------------------------------------------Profit from operations 1,227 121 29 1,275 (17) (12) - 200 2,823Finance costs (450) - - - - (2) - - (452) --------------------------------------------------------------------------------------------------Profit on ordinary activities before taxation 777 121 29 1,275 (17) (14) - 200 2,371Tax on profit on ordinary activities (959) (15) - - 6 5 222 (60) (801) --------------------------------------------------------------------------------------------------(Loss)/profit on ordinary activities after taxation (182) 106 29 1,275 (11) (9) 222 140 1,570Loss on discontinued operations after taxation - (106) - - - - - - (106) --------------------------------------------------------------------------------------------------(Loss)/profit on ordinary activitieS after taxation (182) - 29 1,275 (11) (9) 222 140 1,464 --------------------------------------------------------------------------------------------------Attributable to Equity holders of the parent (445) - 29 1,275 (11) (9) 222 140 1,201 --------------------------------------------------------------------------------------------------Minority interest 263 - - - - - - - 263 -------------------------------------------------------------------------------------------------- Wilmington Group plcReconciliation of UK GAAP to IFRS consolidated balance sheet as at 31 December2004 UK GAAP IFRS2 IFRS IAS38 IFRS3 Share IAS 19 IAS12 IAS 21 IAS 19 format Intangible Business Based Employee Deferred IAS 10 Foreign Holiday IFRS (unaudited) assets Combinations Payments Benefits tax Dividends exchange pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Non-current assetsGoodwill 34,542 - 3,159 - - - - - - 37,701Other intangible assets 30,854 182 (1,884) - - - - - - 29,152Property, plant and equipment 12,666 (328) - - - - - - - 12,338Deferred tax asset - - - 15 136 - - - 29 180 ---------------------------------------------------------------------------------------------------- 78,062 (146) 1,275 15 136 - - - 29 79,371 ----------------------------------------------------------------------------------------------------Current AssetsInventories 2,039 - - - - - - - - 2,039Trade and other receivables 15,803 - - - - - - - - 15,803Cash and cash equivalents 1,668 - - - - - - - - 1,668 ---------------------------------------------------------------------------------------------------- 19,510 - - - - - - - - 19,510 ----------------------------------------------------------------------------------------------------Total Assets 97,572 (146) 1,275 15 136 - - - 29 98,881 ----------------------------------------------------------------------------------------------------Current liabilitiesTrade and other payables (25,804) - - - - - 959 - (96) (24,941)Tax liabilities (855) - - - - - - - - (855)Bank overdrafts and loans (3,405) - - - - - - - - (3,405) ---------------------------------------------------------------------------------------------------- (30,064) - - - - - 959 - (96) (29,201) ----------------------------------------------------------------------------------------------------Non-current liabilitiesBank loans and overdrafts (9,000) - - - - - - - - (9,000) Retirement benefit obligation - - - - (453) - - - - (453) Deferred tax liability (578) - - - - (2,914) - - - (3,492) ---------------------------------------------------------------------------------------------------- (9,578) - - - (453) (2,914) - - - (12,945) ----------------------------------------------------------------------------------------------------Total liabilities (39,642) - - - (453) (2,914) 959 - (96) (42,146) ----------------------------------------------------------------------------------------------------Net Assets Equity 57,930 (146) 1,275 15 (317) (2,914) 959 - (67) 56,735 ----------------------------------------------------------------------------------------------------Share capital 4,167 - - - - - - - - 4,167Share premium account 42,363 - - - - - - - - 42,363Capital Reserve 949 - - - - - - - - 949Translation reserve - - - - - - - 25 - 25Share option reserve - - - 40 - - - - - 40Retained Earnings 8,364 (146) 1,275 (25) (317) (2,914) 959 (25) (67) 7,104 ----------------------------------------------------------------------------------------------------Equity Share-holders' Funds 55,843 (146) 1,275 15 (317) (2,914) 959 - (67) 54,648Minority interests 2,087 - - - - - - - - 2,087 ----------------------------------------------------------------------------------------------------Total equity 57,930 (146) 1,275 15 (317) (2,914) 959 - (67) 56,735 ---------------------------------------------------------------------------------------------------- Wilmington Group plc Reconciliation of UK GAAP to IFRS consolidated cash flow statement for the sixmonths ended 30 December 2004 UK GAAP IFRS IAS38 format Intangible IFRS (unaudited) assets (unaudited) Note £'000 £'000 £'000Net cash from operating activities 2 2,025 - 2,025 Investing activities Purchase of tangible fixed assets (1,891) 133 (1,758) Sale of tangible fixed assets 11 - 11 Purchase of subsidiary undertakings and minority interests (3,215) - (3,215) Sale of subsidiary undertakings - - - Purchase of goodwill and intangible assets (383) (133) (516) ---------------------------------------Net cash used in investing activities (5,478) - (5,478) --------------------------------------- Financing activities Dividends paid (1,746) - (1,746) Issue of ordinary shares - - - Repayment of loan notes (1,000) - (1,000) Increase in long term loans 2,000 - 2,000 Increase in bank overdrafts 2,913 - 2,913 ---------------------------------------Net cash used in financing activities 2,167 - 2,167 ---------------------------------------Net decrease in cash and cash equivalents of the year (1,286) - (1,286)Cash and cash equivalents at beginning 2,954 - 2,954Cash and cash equivalents acquired during the year - - - ---------------------------------------Cash and cash equivalents at end of the year 1,668 - 1,668 --------------------------------------- Wilmington Group plcStatement of changes in equity for the six months ended 31 December 2004 Share Share Share Capital Option Translation Retained Minority Capital Premium reserve Reserve Reserve Earnings Total Interests Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 June 2004 4,167 42,363 949 23 - 7,543 55,045 2,169 57,214Profit for period - - - - - 1,201 1,201 263 1,464 Exchange translation difference - - - - 25 - 25 - 25Actuarial gain taken directly to equity - - - - - 39 39 - 39Tax on items taken directly to equity - - - - - (12) (12) - (12) ------------------------------------------------------------------------------------------ 4,167 42,363 949 23 25 8,771 56,298 2,432 58,730Dividends - - - - - (1,667) (1,667) - (1,667)Issue of share capital - - - - - - - - -Share Option reserve - - - 17 - - 17 - 17Acquisition of minorities during period - - - - - - - (345) (345) ------------------------------------------------------------------------------------------Balance at 31 December 2004 4,167 42,363 949 40 25 7,104 54,648 2,087 56,735 ------------------------------------------------------------------------------------------ Notes to the Consolidated IFRS Statement 1. Earnings per share for the six months ended 31 December 2004 UK GAAP IFRS Format IFRS (unaudited) (unaudited) 2004 2004 £'000 £'000Profit for the financial period (445) 1,201Amortisation and impairment of goodwill and intangible assets (net of minority interest and deferred tax) 2,371 861Exceptional items after tax 642 642 --------------------------Adjusted profit for the financial period 2,568 2,704 -------------------------- Number NumberAverage number of ordinary shares 83,351,679 83,351,679Exercise of share options 325,463 325,463Diluted average number of ordinary shares 83,677,142 83,677,142Basic earnings per share (0.53)p 1.44pDiluted earnings per share (0.53)p 1.44pAdjusted earnings per share 3.08p 3.24p 2. Unaudited reconciliation of profit from operations to net cash inflow fromoperating activities for the six months ended 31 December 2004. IFRS2 UK GAAP IFRS 5 IFRS38 IFRS3 Share IAS19 IAS19 IFRS format Discontinued intangible Business Based Employee Holiday IFRS (unaudited) Operations assets Combinations Payments Benefits pay (unaudited) £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Profit from operations 1,227 121 29 1,275 (17) (12) 200 2,823Loss from discontinued operations - (121) - - - - - (121)Depreciation of property, plant and equipment 884 - (87) - - - - 797Amortisation of intangible fixed assets 2,389 - 58 (1,275) - - - 1,172Profit on disposal of property, plant and equipment (5) - - - - - - (5)Exchange translation differences 25 - - - - - - 25Share option charge - - - - 17 - - 17 ------------------------------------------------------------------------------------------Operating cash flows before movements in working capital 4,520 - - - - (12) 200 4,708Increase in inventories (165) - - - - - - (165)Decrease in receivables 1,951 - - - - - - 1,951Decrease in payables (2,682) - - - - 12 (200) (2,870) ------------------------------------------------------------------------------------------Cash generated by operations 3,624 - - - - - - 3,624Tax paid (1,158) - - - - - - (1,158)Interest paid (441) - - - - - - (441) ------------------------------------------------------------------------------------------Net cash from operating activities 2,025 - - - - - - 2,025 ------------------------------------------------------------------------------------------ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Wilmington