2nd Feb 2006 16:03
Topps Tiles PLC02 February 2006 Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1 , First-time adoption of International FinancialReporting Standards ('IFRS'), Topps Tiles Plc, ('Topps'), today restates it'sNet Assets as at 1 October 2005, 2 April 2005 and 2 October 2004, together witha reconciliation from UK Generally Accepted Accounting Principles (UK GAAP) toIFRS. The principal impact of adoption of reporting financial information under IFRShas been in the following areas: •The recognition of certain operating lease incentives received over the entire term of a lease rather than up to the period of the first rent review; •Goodwill amortised during 2004/05 has been credited back to the income s tatement hence increasing Goodwill in the net assets; •The timing of the recognition of dividends payable to shareholders; •A charge has been made to the income statement in relation to share based payments and a new reserve has been created within the Net Assets statement; and •The recognition of the fair value of forward foreign currency contracts and embedded derivatives; and •Presentational issues with respect to Joint Ventures. Summary of impact on retained earnings (cumulative) 2004/05 2003/04 £'000 £'000 Lease incentives (increase deferred income) (554) (560)Goodwill amortisation (increase goodwill) 34 -Diviends proposed at year end (reduce creditors) 13,576 13,593Share based payments (reduce reserves) (100) (35)Financial instruments (increase financial liability) (25) -Tax effect on above 175 168Deferred Tax on share options 371 852 Total increase in retained earnings 13,477 14,018 Restatement of financial information for 2005 under IFRS Introduction Historically Topps Tiles Plc has prepared its consolidated financial statementsin accordance with UK GAAP. For accounting periods commencing after 1 January2005 it is mandatory to prepare them in accordance with IFRS. This first full year results to be produced under IFRS will be for the yearending 30 September 2006 and the first interim reporting period will be the 6months to 1 April 2006. This announcement explains the principal changes in Topps accounting policies asa result of the new standards. Basis of Preparation The financial information in this announcement has been prepared in accordancewith all IFRS standards that are expected to be applicable for the Group's 2006reporting. These are subject to an ongoing review and possible amendments, therefore the financial information provided in this announcement may requiremodification until the first set of audited IFRS statements are completed forthe year ending 30 September 2006. Explanation of adjustments arising from the adoption of IFRS IFRS 1 First time Adoption of International Financial Reporting Standards This requires a company to define its IFRS policies and apply themretrospectively in deriving the opening Balance Sheet at the date of transition.The standard does allow for a number of exemptions in order to simplify thetransition process, we have explained below when these exemptions are applied. IFRS 2 Share Based Payment IFRS 2 requires a charge to be recognised in the income statement for sharebased payments, based on the fair value of the option or award at the date ofgrant, which is expensed over the vesting period of the option or award. Topps has applied this only to options or schemes awarded after 7 November 2002and therefore this only includes employee share save schemes as no executiveshare options were granted after this date. The cumulative effect to 1 October 2005 is a charge of £100,000 to the RetainedEarnings. IFRS 3 Goodwill and Business Combinations Topps has elected to take the exemption available under IFRS 1 not to apply IFRS3 retrospectively to Goodwill; accordingly the value of Goodwill has been frozenat the carrying value at 2 October 2004. Under IFRS Goodwill should not be amortised but is subject to an impairmentreview annually or more frequently if events or changes occur which maysignificantly affect the value. The effect of the change to IFRS was to reverse the charge of £34,000 to theincome statement for the year ended 1 October 2005 thereby increasing income forthe year and retained earnings by this amount. IAS 10 Events after the Balance Sheet date IAS 10 requires that dividends should now be recognised only when they aredeclared and approved rather than being accrued for in the period to which theyrelate as the liability does not represent a present obligation as defined byIAS 37 Provisions, Contingent Liabilities and Contingent Assets. On transition to IFRS £13,593,000 at 2 October 2004 was credited to retainedearnings. In addition, dividends are to be shown as a movement directly in equity insteadof through the Income Statement. IAS 17 Leases Under UK GAAP operating lease incentives in respect of rent free periods wererecognised in the profit and loss account over the period to the date of thefirst rent review. IAS 17 states that the incentives must be recognised over thelength of the lease. The effect of this is that Topps is carrying an increased amount of £554,000 fordeferred lease incentives as at 1 October 2005 and a charge of £6,000 for the 52weeks ended 1 October 2005. IAS 31 Jointly Controlled Entities IAS 31 requires that Topps should recognise in the financial statements ourshare of the joint assets, any liabilities that it has incurred directly and itsshare of any liabilities incurred jointly with the other entities. Income fromthe sale or use of our share of the output of our jointly controlled entity, ourshare of its expenses and expenses incurred directly in respect of its interestin the joint venture are presented after tax in one single line in the incomestatement. IAS 32 & 39 Financial Instruments: Disclosure and Presentation & Recognition andMeasurement Profits and losses on financial instruments are recognised in the Income Statement as they arise. In accordance with IFRS 1, comparative information has not been restated for theimpact of IAS 32 and IAS 39, but the Group has only adopted these standards toapply from 1 October 2005. 1 Summary of principal accounting policies The principal accounting policies are summarised below. a) Basis of accounting The next financial statements of the Group will be prepared in accordance withIFRS. The financial statements have been prepared on the historical cost basis, exceptfor the revaluation of certain properties and financial instruments. Theprincipal accounting policies adopted are set out below. b) Financial period The accounting period ends on the Saturday which falls closest to 30 September,resulting in financial periods of either 52 or 53 weeks. c) Basis of consolidation The consolidated financial statements incorporate the financial statements ofTopps Tiles Plc and entities controlled by the Company (its subsidiaries).Control is achieved where the Company has the power to govern the financial andoperating policies of an investee entity so as to obtain benefits from itsactivities. The results of subsidiaries acquired or disposed of during the year are includedin the consolidated income statement from the effective date of acquisition orup to the effective date of disposal, as appropriate. All intra-group transactions, balances, income and expenses are eliminated onconsolidation. d) Investments in Jointly Controlled Entities A jointly controlled entity is an entity over which the Group is in a positionto exercise joint control, through participation in the financial and operatingpolicy decisions of the investee. The results and assets and liabilities of jointly controlled entities areincorporated in these financial statements using the equity method ofaccounting. Investments are carried in the balance sheet at cost adjusted bypost-acquisition changes in the Group's share of the net assets of the jointlycontrolled entity, less any impairment in the value of individual investments. Any excess of the cost of acquisition over the Group's share of the fair valuesof the identifiable net assets of the jointly controlled entity at the date ofacquisition is recognised as goodwill. Where a group company transacts with a jointly controlled entity of the Group,profits and losses are eliminated to the extent of the Group's interest in therelevant jointly controlled entity. Losses may provide evidence of an impairmentof the asset transferred in which case appropriate provision is made forimpairment. e) Goodwill Goodwill arising on consolidation represents the excess of the cost ofacquisition over the Group's interest in the fair value of the identifiableassets and liabilities of a subsidiary or jointly controlled entity at the dateof acquisition. Goodwill is initially recognised as an asset at cost and issubsequently measured at cost less any accumulated impairment losses. Goodwillwhich is recognised as an asset is reviewed for impairment at least annually.Any impairment is recognised immediately in the income statement and is notsubsequently reversed. For the purpose of impairment testing, goodwill is allocated to each of theGroup's cash-generating units expected to benefit from the synergies of thecombination. Cash-generating units to which goodwill has been allocated aretested for impairment annually, or more frequently when there is an indicationthat the unit may be impaired. If the recoverable amount of the cash-generatingunit is less than the carrying amount of the unit, the impairment loss isallocated first to reduce the carrying amount of any goodwill allocated to theunit and then to the other assets of the unit pro-rata on the basis of thecarrying amount of each asset in the unit. On disposal of a subsidiary or jointly controlled entity, the attributableamount of goodwill is included in the determination of the profit or loss ondisposal. Goodwill arising on acquisitions before the date of transition to IFRS has beenretained at the previous UK GAAP amounts subject to being tested for impairmentat that date. Goodwill of £15,080,000 written off to reserves under UK GAAPprior to 1998 has not been reinstated and is not included in determining anysubsequent profit or loss on disposal. f) Revenue recognition Revenue is measured at the fair value of the consideration received orreceivable and represents amounts receivable for goods and services provided inthe normal course of business, net of discounts, VAT and other sales-relatedtaxes. Sales of goods are recognised when title has passed. Interest income is accrued on a time basis, by reference to the principaloutstanding and at the effective interest rate applicable, which is the ratethat exactly discounts estimated future cash receipts through the expected lifeof the financial asset to that asset's net carrying amount. Dividend income from investments is recognised when the shareholders' rights toreceive payment have been established. g) Foreign currencies In preparing the financial statements of individual companies, transactions incurrencies other than the entity's functional currency (foreign currencies) arerecorded at the rates of exchange prevailing on the dates of transactions. Ateach period end, monetary assets and liabilities that are denominated in foreigncurrencies are retranslated at the rates prevailing on that date. Non-monetaryitems carried at fair value that are denominated in foreign currencies areretranslated at the rates prevailing at the date when the fair value wasdetermined. Non-monetary items that are measured in terms of historical cost ina foreign currency are not retranslated. Exchange differences arising on the settlement of monetary items, and on theretranslation of monetary items, are included in the income statement for theperiod. Exchange differences arising on the retranslation of non-monetary itemscarried at fair value are included in profit or loss for the period except fordifferences arising on the retranslation of non-monetary items in respect ofwhich gains and losses are recognised directly in equity. For such non-monetaryitems, any exchange component of that gain or loss is also recognised directlyin equity. For the purpose of presenting consolidated financial statements, the assets andliabilities of the group's joint venture operation are translated at exchangerates prevailing at period end dates. Income and expense items are translated atthe average exchange rates for the period, unless exchange rates fluctuatesignificantly during the period, in which case the exchange rates at the datesof transactions are used. Exchange differences arising are classified as equityand transferred to the group's translation reserve. Such differences arerecognised as income or expense in the period in which the operation is disposedof. In order to hedge its exposure to certain foreign exchange risks, the groupenters into forward contracts (see below for details of the group's accountingpolicies in respect of such derivative financial instruments). h) Property, Plant & Equipment Property, plant and equipment are stated at cost, net of depreciation and anyprovision for impairment. Costs are only those costs that are directly attributable to bringing the asset into working condition for its intended use.Depreciation is provided to write off the cost of tangible assets, lessestimated residual value, over their estimated useful lives, as follows: Freehold buildings - 2% per annum on cost on a straight-line basis Short leasehold land and buildings - over the period of the lease, up to 25 years Fixtures and fittings - over 10 years or at 25% per annum on reducing balance basis as appropriate Motor vehicles - 25% per annum on reducing balance Freehold land is not depreciated. Residual value is calculated on prices prevailing at the date of acquisition. i) Inventories Inventories are stated at the lower of cost and net realisable value. Costcomprises the purchase price of materials and includes an attributableproportion of distribution overheads based on normal levels of activity and isvalued at standard cost. Net realisable value is based on estimated sellingprice, less further costs expected to be incurred to completion and disposal. j) Taxation The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxableprofit differs from net profit as reported in the income statement because itexcludes items of income or expense that are taxable or deductible in otheryears and it further excludes items that are never taxable or deductible. Thegroup's liability for current tax is calculated using tax rates that have beenenacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differencesbetween the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxableprofit, and is accounted for using the balance sheet liability method. Deferredtax liabilities are generally recognised for all taxable temporary differencesand deferred tax assets are recognised to the extent that it is probable thattaxable profits will be available against which deductible temporary differencescan be utilised. Such assets and liabilities are not recognised if the temporarydifference arises from the initial recognition of goodwill or from the initialrecognition (other than in a business combination) of other assets andliabilities in a transaction that affects neither the tax profit nor theaccounting profit. Deferred tax liabilities are recognised for taxable temporary differencesarising on investments in subsidiaries, and interests in jointly controlledentities, except where the group is able to control the reversal of thetemporary difference and it is probable that the temporary difference will notreverse in the foreseeable future. Deferred tax is calculated at the tax rates that are expected to apply in theperiod when the liability is settled or the asset is realised. Deferred tax ischarged or credited in the income statement, except when it relates to itemscharged or credited directly to equity, in which case the deferred tax is alsodealt with in equity. Deferred tax assets and liabilities are offset when there is a legallyenforceable right to set off current tax assets against current tax liabilitiesand when they relate to income taxes levied by the same taxation authority andthe Group intends to settle its current tax assets and liabilities on a netbasis. k) Leases Rentals payable under operating leases are charged on a straight line basis overthe lease term, even if the payments are not made on such a basis. Benefitsreceived and receivable as an incentive to sign an operating lease are similarlyspread on a straight-line basis over the lease term. l) Pension costs For defined contribution schemes, the amount charged as an expense to the IncomeStatement in respect of pension costs is the contributions payable in the year.Differences between contributions payable in the year and contributions actuallypaid are shown as either accruals or prepayments in the balance sheet. m) Derivative financial instruments The Group uses derivative financial instruments to reduce exposure to foreign exchange risk. The Group does not hold or issue derivative financial instrumentsfor speculative purposes. The Group's activities expose it primarily to the financial risks of changes inforeign currency exchange rates and interest rates. The use of financial derivatives is governed by the Group's policies approved bythe board of directors, on the use of financial derivatives. n) Bank Borrowings Interest-bearing bank loans and overdrafts are recorded at the proceedsreceived, net of direct issue costs. Finance charges are accounted for on anaccrual basis in the Income Statement using the effective interest rate methodand are added to the carrying amount of the instrument to the extent that theyare not settled in the period in which they arise. o) Provisions Provisions are recognised when the Group has a present obligation as a result ofa past event, and it is probable that the Group will be required to settle thatobligation. Provisions are measured at the directors' best estimate of theexpenditure required to settle the obligation at the balance sheet date, and arediscounted to present value where the effect is material. p) Share-based payments The group has applied the requirements of IFRS 2 Share-based Payments. Inaccordance with the transitional provisions, IFRS 2 will be applied to allgrants of equity instruments after 7 November 2002 that were unvested as of 1January 2005. The Group issues equity settled share based payments to certain employees.Equity settled share based payments are measured at fair value at the date ofgrant. The fair value determined at the grant date of the share based payment isexpensed on a straight line basis over the vesting period, based on the Group'sestimate of shares that will eventually vest. Fair value is measured by use of the Black Scholes model. The Group providesemployees with the ability to purchase the Group's ordinary shares at 80% of thecurrent market value. The Group records an expense, based on its estimate of the20% discount related to shares expected to vest on a straight line basis overthe vesting period. q) Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits and othershort-term highly liquid investments that are readily convertible to a knownamount of cash and are subject to an insignificant risk of changes in value. Reconciliation of Net Assets As at 2 October 2004 UK GAAP Sharesave Tax Rent Free Dividend Effect of IFRS 2 October IFRS 2 IAS12 IAS 17 IAS 10 Transition to IFRS 2 October 2004 2004 £'000 £'000 £'000 £'000 £'000 £'000 £'000Non-current assetsGoodwill 551 551Property Plant & Equipment 29,236 29,236Joint ventureundertaking 193 193 ----------- ----------- 29,980 29,980 Current assetsInventories 24,373 24,373Trade and otherreceivableswithin one year 3,809 3,809Trade and otherreceivableswithin one year 110 110Cash and cash equivalents 29,624 29,624 ----------- ----------- 57,916 57,916 Total assets 87,896 87,896 Currentliabilities 0Trade andother payables (18,758) (18,758)Current taxliabilities (3,942) (3,942)Proposeddividend (13,593) 13,593 13,593 0Othercurrent liabilities (9,159) (560) (560) (9,719)Financialliabilities 0 0 ----------- ---------- ---------- ----------- ----------- (45,452) (560) 13,593 13,033 (32,419) ----------- ---------- ---------- ----------- -----------Net currentassets 12,464 (560) 13,593 13,033 25,497 ----------- ---------- ---------- ----------- ----------- Non-currentliabilities (7,571) (7,571)Deferred taxliabilities (1,864) 11 841 168 1,020 (844) ----------- ---------- ------- ---------- ---------- ----------- -----------Totalliabilities (54,887) 11 841 (392) 13,593 14,053 (40,834)Net assets 33,009 11 841 (392) 13,593 14,053 47,062 ----------- ---------- ------- ---------- ---------- ----------- ----------- EquityShare capital 5,673 5,673Share premium 4,889 4,889Merger reserve (399) (399)Share BasedPayment Reserve 0 35 35 35Treasury shares (733) (733)Capital RedemptionReserve 137 137Retainedearnings 23,442 (24) 841 (392) 13,593 14,018 37,460 ----------- ---------- ------ ---------- ---------- ----------- -----------Total equity 33,009 11 841 (392) 13,593 14,053 47,062 ----------- ---------- ------- ---------- ---------- ----------- ----------- Reconciliation of Net AssetsAs at 2 April 2005 Opening Effect of UK GAAP Balance Sharesave Tax Rent Dividend Good Transition Sheet Free will to 2 April Adjustment IFRS 2 IAS12 IAS 17 IAS 10 IFRS 3 IFRS 2005 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 --------- ---------- --------- ------- -------- -------- ------- --------- Non-currentassetsGoodwill 534 17 17Property Plant& Equipment 30,914Joint ventureundertaking 208 --------- ---------- --------- ------- -------- -------- ------- --------- 31,656 17 17 Current assetsInventories 27,606Trade andotherreceivableswithin oneyear 4,113Trade andotherreceivablesafter one year 0Cash and cashequivalents 22,734 0 --------- ---------- --------- ------- -------- -------- ------- --------- 54,453 0Total assets 86,109 17 17 CurrentliabilitiesTrade andother payables (17,515)Current taxliabilities (3,841) 0Proposeddividend (7,870) 13,593 (5,723) 7,870Other currentliabilities (7,234) (560) (5) (565)Financialliabilities 0 0 --------- ---------- --------- ------- -------- -------- ------- --------- (36,460) 13,033 (5) (5,723) 7,305 --------- ---------- --------- ------- -------- -------- ------- ---------Net currentassets 17,993 13,033 (5) (5,723) 7,305 --------- ---------- --------- ------- -------- -------- ------- --------- Non-currentliabilities (8,582)Deferred taxliabilities (2,181) 1,020 10 (335) 2 697 --------- ---------- --------- ------- -------- -------- ------- ---------Totalliabilities (47,223) 14,053 10 (335) (3) (5,723) 8,002 --------- ---------- --------- ------- -------- -------- ------- ---------Net assets 38,886 14,053 10 (335) (3) 5,723) 17 8,019 --------- ---------- --------- ------- -------- -------- ------- --------- EquityShare capital 5,698 0Share premium 5,384 0Merger reserve (399) 0Share BasedPaymentReserve 0 35 32 67Treasury shares (4,183) 0CapitalRedemptionReserve 137 0RetainedEarnings 32,249 14,018 (22) (335) (3) (5,723) 17 7,952 --------- ---------- --------- ------- -------- -------- ------- ---------Total Equity 38,886 14,053 10 (335) (3) (5,723) 17 8.019 --------- ---------- --------- ------- -------- -------- ------- --------- Reconciliation of Net AssetsAs at 2 April 2005 Closing position under IFRS 2 April 2005 £'000Non-currentassetsGoodwill 551Property Plant& Equipment 30,914Joint ventureundertaking 208 0 --------- 31,673 Current assetsInventories 27,606Trade andotherreceivableswithin oneyear 4,113Trade andotherreceivablesafter one year 0Cash and cashequivalents 22,734 --------- 54,453Total assets 86,126 CurrentliabilitiesTrade andother payables (17,515)Current taxliabilities (3,841)Proposeddividend 0Other currentliabilities (7,799)Financialliabilities 0 --------- (29,155) ---------Net currentassets 25,298 --------- Non-currentliabilities (8,582)Deferred taxliabilities (1,484) ---------Totalliabilities (39,221) ---------Net assets 46,905 --------- EquityShare capital 5,698Share premium 5,384Merger reserve (399)Share BasedPaymentReserve 67Treasury shares (4,183)CapitalRedemptionReserve 137RetainedEarnings 40,201 ---------Total Equity 46,905 --------- Reconciliation of Net Assets as at 1 October 2005 UK GAAP Opening Sharesave Tax Rent Dividend Currency Good Effect of Balance Free will Transition 1 October Sheet IFRS 2 IAS 12 IAS 17 IAS 10 Exposures IFRS 3 to IFRS 2005 Adjustment IAS 39 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-currentassetsGoodwill 517 34 34PropertyPlant & Equipment 32,072Jointventure undertaking 225 ----- 32,814 34 34CurrentassetsInventories 25,338Trade andotherreceivableswithinone year 4,071Trade andotherreceivablesafterone year 115Cash andcash equivalents 27,829 ----------- --------- -------- ------- ------- -------- -------- ------- --------- 57,353Total assets 90,167 34 34 CurrentliabilitiesTrade andother payables (18,503)Current taxliabilities (3,640)Proposeddividend (13,576) 13,593 (17) 13,576Othercurrent liabilities (4,056) (560) 6 (554)Financialliabilities 0 (25) (25) ----------- --------- -------- ------- ------- -------- -------- ------- --------- (39,775) 13,033 6 (17) (25) 12,997 ----------- --------- -------- ------- ------- -------- -------- ------- ---------Net currentassets 17,578 13,033 6 (17) (25) 12,997 ----------- --------- -------- ------- ------- -------- -------- ------- --------- Non-currentliabilities (9,394)Deferredtaxliabilities (2,345) 1,020 20 (500) (2) 8 546 ----------- --------- -------- ------- ------- -------- -------- ------- ---------Totalliabilities (51,514) 14,053 20 (500) 4 (17) (17) 13,543 ----------- --------- -------- ------- ------- -------- -------- ------- ---------Net assets 38,653 14,053 20 (500) 4 (17) (17) 34 13,577 ----------- --------- -------- ------- ------- -------- -------- ------- --------- EquityShare capital 5,655 0Share premium 5,575 0Merger reserve (399) 0 Share BasedPaymentReserve 0 35 65 100Treasury Shares 0 0CapitalRedemptionReserve 190 0RetainedEarnings 27,632 14,018 (45) (500) 4 (17) (17) 34 13,477 ----------- --------- -------- ------- ------- -------- -------- ------- ---------Total equity 38,653 14,053 20 (500) 4 (17) (17) 34 13,577 ----------- --------- -------- ------- ------- -------- -------- ------- --------- Reconciliation of Net AssetsAs at 1 October 2005 Closing position under IFRS 1 October 2005 £'000 Non-current assetsGoodwill 551Property Plant & Equipment 32,072Joint venture undertaking 225 --------------- 32,848 Current assetsInventories 25,338Trade and other receivables within one year 4,071Trade and other receivables after one year 115Cash and cash equivalents 27,829 --------------- 57,353Total assets 90,201 Current liabilitiesTrade and other payables (18,503)Current tax liabilities (3,640)Proposed dividend 0Other current liabilities (4,610)Financial liabilities (25) --------------- (26,778) ---------------Net current assets 30,575 --------------- Non-current liabilities (9,394)Deferred tax liabilities (1,799) ---------------Total liabilities (37,971) ---------------Net assets 52,230 --------------- EquityShare capital 5,655Share premium 5,575Merger reserve (399)Share Based Payment Reserve 100Treasury Shares 0Capital Redemption Reserve 190Retained Earnings 41,109 ---------------Total Equity 52,230 --------------- Consolidated Group Income StatementFor the 26 weeks ended 2 April 2005 UK GAAP Restated offer 26 weeks Effect IFRS ended of 26 weeks 2 April Sharesave Joint Leases Goodwill transfer ended 2005 Venture 2 April Audited IFRS 2 IAS 31 IAS 17 IFRS 3 To IFRS 2005 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Group Revenue- continuingoperations 87,482 87,482Cost of Sales (33,359) (33,359) ---------- --------- ---------- --------- -------- ------- ---------- Gross Profit -continuingoperations 54,123 54,123 OperatingExpenses- employeeprofit sharing (4,307) (4,307)- distributioncosts (23,919) (23,919)- otheroperatingexpenses (6,268) (32) (5) 17 (20) (6,288)Share ofresults ofjoint venture 26 (21) (21) 5 ---------- --------- ---------- --------- -------- ------- ---------- Group andjoint ventureshare ofoperatingprofit 19,655 (32) (21) (5) 17 (41) 19,614Other gainsand losses 1,719 1,719Investmentrevenue 374 13 13 387 ---------- --------- ---------- --------- -------- ------- ---------- Profit beforetaxation 21,748 (32) (8) (5) 17 (28) 21,720Taxation (5,071) 10 8 2 20 (5,051) ---------- --------- ---------- --------- -------- ------- ---------- Profit for theperiod attributable to equity holdersof the company 16,677 (22) - (3) 17 (8) 16,669 ---------- --------- ---------- --------- -------- ------- ---------- Earnings perordinary share - basic 7.36p 7.36p - diluted 7.29p 7.29p Consolidated Group Income StatementFor the 52 weeks ended 1 October 2005 UK GAAP Restated 52 weeks Effect under IFRS ended of 52 weeks 1 October Sharesave Joint Leases Goodwill transfer ended 2005 Venture 1 October Audited IFRS 2 IAS 31 IAS 17 IFRS 3 To IFRS 2005 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Group Revenue- continuingoperations 173,326 173,326Cost of Sales (67,146) (67,146) ---------- --------- ---------- --------- -------- ------- ---------- Gross Profit -continuingoperations 106,180 106,180 OperatingExpenses- employeeprofit sharing (7,502) (7,502)- distributioncosts (46,348) (46,348)- otheroperatingexpenses (15,496) (65) 6 34 (25) (15,521)Share ofresults ofjoint venture 56 (43) (43) 13 ---------- --------- ---------- --------- -------- ------- ---------- Group and joint venture share of operatingprofit 36,890 (65) (43) 6 34 (68) 36,822Other gainsand losses 1,700 1,700Investmentrevenue 642 27 27 669 ---------- --------- ---------- --------- -------- ------- ---------- Profit beforetaxation 39,232 (65) (16) 6 34 (41) 39,191Taxation (9,043) 20 16 (2) 34 (9,009) ---------- --------- ---------- --------- -------- ------- ---------- Profit for theperiod attributable to equity holdersof thecompany 30,189 (45) - 4 34 (7) 30,182 ---------- --------- ---------- --------- -------- ------- ---------- Earnings perordinary share - basic 13.34p 13.33p - diluted 13.24p 13.24p Consolidated Cashflow Statement UK GAAP Restated under IFRS 52 weeks to 52 weeks to 1st October 2005 IFRS Adj 1st October 2005 £'000 £'000 £'000Cashflow from Operating ActivitiesProfit before taxation 36,834 (75) 36,759 Adjustments for: Depreciation 3,397 (34) 3,363 Investment income Share option charge 65 65 Interest expense (Inc)/Dec in trade/other debtors (267) (267) increase in stocks (965) (965) Inc/(Dec) in creditors (3,233) 57 (3,176) -------------- --------- -------- Net Cash from OperatingActivities 35,766 13 35,779 Interest paid (308) (308)Taxation paid (8,864) (8,864) -------------- --------- ------- Net cash from operatingactivities 26,594 13 26,607 Cashflows from Investing ActivitiesPurchase of TreasuryShares (3,774) (3,774)Interest Received 942 942Purchase ofProperty/plant/equipment (8,564) (8,564)Proceeds of sale ofequipment 4,292 4,292Loans advanced to JV's (13) (13) Net cash used ininvestment activities (7,104) (13) (7,117) Cashflows from Financing ActivitiesProceeds from issue ofshare capital 721 721Repayment of loans (517) (517)New LoansDividends paid (21,489) (21,489) -------------- --------- -------- Net cash used infinancing activities (21,285) (21,285) Net Increase in CashEquivalents (1,795) - (1,795)Cash and cashequivalents at beginningof period 29,624 - 29,624 -------------- --------- ------ Cash and cashequivalents at end ofperiod 27,829 - 27,829 ============== ========= ====== Consolidated Cashflow Statement UK GAAP Restated under IFRS 26 weeks to 26 weeks to 2nd April 2005 IFRS Adj 2nd April 2005 £'000 £'000 £'000Cashflow from Operating ActivitiesProfit before taxation 19,629 (27) 19,602 Adjustments for: Depreciation 1,699 (17) 1,682 Investment income Share option charge 32 32 Interest expense (Inc)/Dec in trade/other debtors (189) (189) increase in stocks (3,233) (3,233) Inc/(Dec) in creditors (2,436) 17 (2,419) --------------- --------- ------- Net Cash from OperatingActivities 15,470 5 15,475 Interest paid (165) (165)Taxation paid (4,362) (4,362) --------------- --------- ------- Net cash from operatingactivities 10,943 5 10,948 Cashflows from Investing ActivitiesPurchase of TreasuryShares (3,450) (3,450)Interest Received 522 522Purchase ofProperty/plant/equipment (5,781) (5,781)Proceeds of sale ofequipment 4,157 4,157Loans advanced to JV's (5) (5) ------- ---- --- Net cash used ininvestment activities (4,552) (5) (4,557) Cashflows from Financing Activities Proceeds from issue ofshare capital 521 521Repayment of loans (517) (517)New LoansDividends paid (13,285) (13,285) --------------- --------- -------- Net cash used infinancing activities (13,281) (13,281) Net Increase in CashEquivalents (6,890) - (6,890)Cash and cashequivalents at beginningof period 29,624 - 29,624 --------------- --------- ------- Cash and cashequivalents at end ofperiod 22,734 - 22,734 =============== ========= ====== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Topps Tiles