27th Sep 2005 07:02
Big Yellow Group PLC27 September 2005 27 September 2005 Big Yellow Group PLC ("Big Yellow" or "the Group") Unaudited results for the year ended 31 March 2005 under International Financial Reporting Standards ('IFRS') Big Yellow Group PLC is today announcing the impact of the adoption IFRS on theGroup's income statement and balance sheet for the year ended 31 March 2005. Overview The introduction of IFRS affects accounting only. There is no impact on ourunderlying business or cash flows. The main change resulting from the introduction of IFRS is that Big Yellow haschanged the classification and accounting for the majority of its properties to"investment properties" with a consequential significant impact on the incomestatement and balance sheet. •Big Yellow storage centres are now classified as investment properties under the provisions of IAS 40. As a consequence they are held on the balance sheet at fair value having previously been held at cost. •Investment properties are not depreciated and will be subject to an external valuation bi-annually with any movements on revaluation recognised separately in the income statement. •Deferred tax arising from revaluation of investment property is provided in full and movements of this provision are now charged through the income statement. •In accordance with IAS 40, investment properties which are owned leasehold are accounted for as finance leases rather than operating leases. The other principal changes arising from the adoption of IFRS for the March 2005results are: •Recognition of the final dividend only after its approval at the Group's Annual General Meeting. •Deferred tax provision for potential deduction on exercise of share options. •Inclusion of a charge in respect of the fair value of share options. •Goodwill is subject to an annual impairment review and as a result there is no charge in the year. •A fair value adjustment in respect of the Group's fixed interest rate debt has been debited to the income statement. Effect on Key Numbers 2004/05 UK GAAP IFRS £m £mProfit from Operations 9.7 15.0Profit before Tax 4.1 42.8Profit after Tax 2.5 30.1Net Assets 58.7 159.2 EPS 2.52p 30.15pAdjusted EPS 2.52p 5.61pAdjusted NAV per share 185.8p 191.1p For further information, please contact: Big Yellow Group PLC 01276 470190James Gibson, Chief Executive Weber Shandwick Square Mile 020 7067 0700Louise Robson or Yvonne Alexander 27 September 2005 Big Yellow Group PLC ("Big Yellow" or "the Group") Unaudited results for the year ended 31 March 2005 under International Financial Reporting Standards ('IFRS') Introduction Under European Union (EU) regulations EU listed companies are required toprepare consolidated financial statements in accordance with InternationalFinancial Reporting Standards (IFRS) for accounting periods beginning on orafter 1 January 2005. Big Yellow will therefore publish its 2005/6 InterimReport and 2005/6 Annual Report and Accounts in accordance with IFRS. The purpose of this document is to •Explain the basis on which Big Yellow has effected the transition to IFRS; •Set out the principal accounting changes between UK GAAP and IFRS as they affect Big Yellow; and •Show the impact of the restatement in accordance with IFRS on Big Yellow's previously reported UK GAAP financial statements for the year ended 31 March 2005. The financial information has been set out in 2 sections: Section 1 - Basis of Preparation This describes the IFRS 1 "First Time Adoption" exemptions that Big Yellow has elected to take and the assumptions made in implementing IFRS. The section provides an overview of the impact of IFRS on the financial statements, and explains the principal differences between UK GAAP and IFRS affecting Big Yellow's financial statements. Section 2 - Financial Information for the year ended 31 March 2005 This comprises of a restated Group income statement, Group balance sheet, Group statement of changes in shareholder's equity, Group cash flow statement and Group reconciliation of Earnings per share and Net Asset Value per share SECTION 1BASIS OF PREPARATION 1. Qualifications and IFRS 1 exemptions Qualifications European Union (EU) regulations require that the Group's financial statementsfor the year ended 31 March 2006 are prepared on the basis of IFRS, includinginterpretations issued by the Standard Interpretations Committee (SIC) andInternational Financial Reporting Interpretations Committee (IFRIC) of theInternational Accounting Standards Board. Although the IASB adopted a "stableplatform" in 2004, IFRS has continued, and will continue to evolve. As a resultthe financial information contained in this release may be amended before it ispresented as comparative figures in the IFRS accounts to be issued by the Groupfor the six months ending 30 September 2005 as well as for the year ending 31March 2006. Furthermore, the financial information contained in this releasedoes not constitute a complete set of financial statements including comparativefigures and notes. IFRS 1 exemptions The transition to IFRS is governed by the requirements of IFRS 1 "First-timeAdoption of IFRS". The opening IFRS balance sheet on 1 April 2004 (the date oftransition to IFRS) has been prepared using accounting policies which theDirectors expect to be applicable as at 31 March 2006. IFRS 1 permits companies adopting IFRS for the first time to take certainexemptions from full retrospective application of IFRS accounting policies. BigYellow has taken the following key exemptions: (a) Business combinations: Big Yellow has chosen not to restate business combinations that occurred prior to 1 April 2004 to comply with IFRS 3 "Business Combinations". As a result the carrying value of goodwill recorded under UK GAAP as at 1 April 2004 has been fixed at transition date. (b) Share-based payments: IFRS 2 "Share-based Payments" has been applied retrospectively to equity-settled awards that had not vested as at 1 April 2005 and were granted on or after 7 November 2002. (c) Financial Instruments: Big Yellow has elected to apply IAS 32 and IAS 39 from 1 April 2005. The Group has decided not to adopt hedge accounting. In accordance with IFRS 1 Big Yellow has not revised estimates required underIFRS that were also required under UK GAAP as at 31 March 2004 and 2005, and, inaddition where estimates were not required under UK GAAP, they have been basedon information known at that time, and not subsequent events. 2. Basis of presentation The preliminary comparative financial statements included in this document arein accordance with IAS 1 "Presentation of Financial Statements". However, whereno definitive guidance exists in respect of presentation, a UK GAAP approach hasbeen followed to maintain consistency with previous years. The formats adoptedmay therefore require modification in the future as best practice develops andfurther guidance is issued. Over the past 18 months the Group has been working towards the implementation ofIFRS which involved: •the analysis of each Standard to identify the difference between the Big Yellow's existing accounting policies under UK GAAP. •the collection of additional data required to restate Big Yellow's results in accordance with IFRS with effect from the transition date. •the ongoing modification of Big Yellow's reporting systems to meet IFRS requirements. Progress of the IFRS project has been reported on regularly to the AuditCommittee. 3. Overview of impact of IFRS A summary of the impact on Big Yellow's 2004/5 profit for the year, earnings pershare and net assets is set out below in paragraphs 3.1 to 3.3. Explanations ofthese changes are set out in paragraph 4. 3.1 Income statement +----------------------------------------+----+--------+--------+-------+|Impact of IFRS |Para| £'000| £'000| £'000||For the year ended 31 March 2005 | | Profit| Tax| Profit|| | | before| | after|| | | tax| | tax|+----------------------------------------+----+--------+--------+-------+|UK GAAP - Profit for the financial year | | 4,053| (1,531)| 2,522|+----------------------------------------+----+--------+--------+-------+|IAS 40 Investment property | 4.1| | | |+----------------------------------------+----+--------+--------+-------+| - Reversal of depreciation | | 3,685| (639)| 3,046|| - Gain on revaluation of properties | | 34,976|(10,493)| 24,483|| - Leases | | 40| (12)| 28|+----------------------------------------+----+--------+--------+-------+|IFRS 2 Share based payments | 4.3| (82)| -| (82)|+----------------------------------------+----+--------+--------+-------+|IFRS 3 Business combinations - | 4.4| 97| -| 97||elimination of goodwill amortisation | | | | |+----------------------------------------+----+--------+--------+-------+|IAS 39 Financial instruments | 4.5| 67| (20)| 47|+----------------------------------------+----+--------+--------+-------+|IFRS restated profit for the year | | 42,836|(12,695)| 30,141|+----------------------------------------+----+--------+--------+-------+ 3.2 Earnings per share +---------------------------------------------------+---------+---------+|Impact of IFRS | Basic|Adjusted*||For the year ended 31 March 2005 | pence| pence|+---------------------------------------------------+---------+---------+|UK GAAP | 2.52| 2.52|+---------------------------------------------------+---------+---------+|IAS 40 Investment property | | |+---------------------------------------------------+---------+---------+| - Reversal of depreciation | 3.68| 3.68|| - Gain on revaluation of properties | 34.98| -|| - Leases | 0.04| 0.04|+---------------------------------------------------+---------+---------+|IAS 12 Income taxes | (11.16)| (0.65)|+---------------------------------------------------+---------+---------+|IFRS 2 Share based payments | (0.08)| (0.08)|+---------------------------------------------------+---------+---------+|IFRS 3 Business combinations - elimination of | 0.10| 0.10||goodwill amortisation | | |+---------------------------------------------------+---------+---------+|IAS 39 Financial instruments | 0.07| -|+---------------------------------------------------+---------+---------+|IFRS restated | 30.15| 5.61|+---------------------------------------------------+---------+---------+* Adjusted earnings per share as set out above and in section 2.5 3.3 Net assets +---------------------------------------------------+---------+---------+|Reconciliation of net assets | Para No | £'000|+---------------------------------------------------+---------+---------+| | | |+---------------------------------------------------+---------+---------+|Net assets - UK GAAP at 31 March 2005 | | 58,679|+---------------------------------------------------+---------+---------+|IAS 40 Investment property | 4.1 | |+---------------------------------------------------+---------+---------+| - Revaluation of investment properties | | 133,979|| - Reversal of depreciation | | 3,685|| - Short term provisions and leases | | 96|+---------------------------------------------------+---------+---------+|IAS 12 Income taxes - effect of revaluation of | 4.2 | (38,727)||investment properties | | |+---------------------------------------------------+---------+---------+|IFRS 3 Business combinations - goodwill | 4.4 | 97||amortisation not charged | | |+---------------------------------------------------+---------+---------+|IAS 39 Financial instruments | 4.5 | (153)|+---------------------------------------------------+---------+---------+|IAS 10 Events after balance sheet date - | 4.6 | 1,512||elimination of proposed dividend | | |+---------------------------------------------------+---------+---------+|IFRS restated | | 159,168|+---------------------------------------------------+---------+---------+ 4. Principal differences between UK GAAP and IFRS There are seven principal differences between UK GAAP and IFRS affecting BigYellow and these are described in the following paragraphs: 4.1 Investment properties Under UK GAAP, Big Yellow held its property at cost less accumulateddepreciation within Tangible Fixed Assets. As a result of the introduction ofIFRS Big Yellow has changed the classification and accounting for its openstorage centres to "investment properties" with a consequential significantimpact on the income statement and balance sheet. Investment properties are defined by IAS40 as property held by the owner to earnrentals or for capital appreciation or both rather than for use in theproduction or supply of goods or services or for administration purposes. Theproperty is investment property only if an insignificant portion is held for usein the production or supply of goods or services or for administrative purposes.A property interest that is held by a lessee under an operating lease may beclassified and accounted for as investment property if, and only if, theproperty would otherwise meet the definition of an investment property and thelessee uses the fair value model. All Big Yellow stores lease storage units to customer tenants under operatingleases. Sales of ancillary goods and services, such as packing materials areinsignificant, representing 5-6% of turnover. The purchase of contents insuranceby tenants is directly linked to the rental of units and is not consideredancillary. Self storage is a defined real estate class with a proven valuationmethodology and the centres are also held for their capital appreciation.Therefore, all Big Yellow centres, both freehold and leasehold, have beenclassified as investment properties under IAS40 and are held in balance sheet atfair value from 1 April 2004. The investment properties have been valued as at 31 March 2005 and 30 September2004 by external valuers, Cushman & Wakefield Healey & Baker ("CWHB"). Thevaluations have been carried out in accordance with the RICS Appraisal andValuation Standards published by the Royal Institute of Chartered Surveyors (TheRed Book). The methodology is fully explained in Note 22 of the 2005 AnnualReport. A directors' valuation of the 29 stores open as at 1 April 2004 based oninternal projections prevailing at that time has been used to determine the gainon revaluation for the year ending 31 March 2005. Valuations Investment properties £'000 At 31 March 2005 Property valuations 275,230 -----------Historic cost 148,927 Accumulated depreciation under UK GAAP (11,361) -----------Net book value UK GAAP 137,566 Depreciation adjustment under IFRS 3,685 Net book value IFRS 141,251 -----------Gain on revaluation as at 31 March 2005 133,979 At 31 March 2004 Property valuations 205,450 Net book value 106,447 -----------Gain on revaluation as at 31 March 2004 99,003 ----------- Gain on revaluation IFRS for year ended 31 March 2005 34,976 ----------- Properties held as tangible fixed assets under UK GAAP The historic cost net book value of the relevant properties held as tangiblefixed assets under UK GAAP at 31 March 2005 was £137,566,000. As a result of theadoption of IFRS depreciation charged for the year to 31 March 2005 of£3,685,000 has been added back to give a historic cost net book value of therelevant properties under IFRS at 31 March 2005 of £141,251,000. Theseproperties have been reclassified to Investment Property at the 31 March2005 external valuation of £275,230,000. The resulting gain on revaluation of£133,979,000 has been credited to retained earnings. A similar review was undertaken for the relevant properties at 1 April 2004which had an historic cost net book value of £106,447,000 and a fair value of£205,450,000, based on the directors' valuation, resulting in a revaluation surplusat that date of £99,003,000. Properties accounted for as leases under UK GAAP In accordance with IAS40, investment property held under leases is stated grossof the recognised finance lease liability. This has resulted in a £26,233,000finance lease creditor and corresponding increase to the disclosed investmentproperty balance as at 1 April 2004. For the year ending 31 March 2005 operatinglease rent payments have been allocated between a finance lease charge and areduction in the outstanding lease creditor so as to achieve a constantfinancing rate. The corresponding asset is depreciated over the lease term inline with the reduction in the creditor. As at 31 March 2005 the finance leasecreditor and asset were £25,659,000. The net effect is to reduce cost of salesby £2,179,000, with a finance charge of £1,605,000 and a depreciation charge of£574,000, with no net effect on profit. Summary carrying value of investment properties under IFRS Investment property under IFRS at 31 March is therefore comprised of: 2005 2004 £'000 £'000Net Book Value 141,251 106,447Gain on revaluation 133,979 99,003Finance Lease Asset 25,659 26,233 -------------------- 300,889 231,683 Summary effect on the income statement (excluding tax) Gains and losses arising from the changes in fair value of investment propertyare included in the income statement of the period in which they arise. For theyear ended 31 March 2005, the effect on the income statement was a revaluationgain of £34,976,000. In accordance with IAS40, as Big Yellow uses the fair value model, nodepreciation is provided in respect of investment properties including integralplant resulting in a credit of £3,685,000. As explained above the finance leaseasset included in the investment property is depreciated over the lease termresulting in a charge of £574,000 in the year. The total depreciation charge forthe year has reduced by £3,111,000. Operating lease payments of £2,179,000 areno longer included in cost of sales under IFRS. A further adjustment of £40,000has been made with respect to rent free payments. The total adjustment to costof sales is therefore £5,330,000. Summary effect on revaluation surplus within reserves In order to calculate the element of the gain on revaluation that relates to theyear ending 31 March 2005 a directors' valuation of the store portfolio at 1April 2004 has been carried out. The valuation uses the same methodology usedfor the external valuations performed at 30 September 2004 and 31 March 2005 byCWHB. At 31 March 2004 the 29 open storage centres were valued at £205,450,000representing a £99,003,000 cumulative uplift on net book value as at that date.The gain as at 31 March 2005 was £133,979,000. Other matters affecting property Assets in the course of construction are accounted for in accordance with IAS16Property, Plant & Equipment and are held at historic cost as they were under UKGAAP. On the opening of the store the property is re-classified as InvestmentProperty and fair valued at the next balance sheet date. Properties used for administration purposes are accounted for under IAS16. 4.2 Income taxes IAS12 requires that full provision is made for the deferred tax liabilityassociated with the revaluation of investment properties. The Group did notrevalue its properties in the balance sheet under UK GAAP. The movement indeferred tax associated with the gain on revaluation during the year has beencharged to the income statement. The provision for deferred tax should have regard for the manner in which therevaluation surplus will be realised. Since the valuation is based on discountedcash flow of net operating income then the realisation of value will come fromfuture rental income rather than the sale of the portfolio in the short tomedium term. Deferred tax of 30% on the full amount of the £134.0m surplus hastherefore been provided although the liability will not be incurred while theGroup continues to hold its investment properties. IAS12 requires a provision in respect of potential Schedule 23 deductions on theexercise of share options net of charges expensed through the income statement.The potential deduction has been calculated based on difference between theshare price at 31 March 2005, the respective option prices and the remainingvesting periods. The resulting figure of £7.16m is adjusted for the £0.16mcharge to date in respect of share based payments and deferred tax at 30%provided leading to a provision of £2.1m. £'000 Deferred tax liability under UK GAAP as at 31 March 2005 299Deferred tax liability under IFRS as at 31 March 2005 39,026 ---------Increase in deferred tax liability as at 31 March 2005 38,727 --------- Income statement movement for year ending 31 March 2005 Revaluation of investment properties 10,493Depreciation adjustment re qualifying assets 639Reduction in finance lease creditor 12Decrease in finance costs on valuation of interest rate swaps 20 --------- 11,164 Balance Sheet movement Share option deductions (2,100)Revaluations of investment properties 29,701Fair value adjustment of interest rate swaps (66)Write off a liability re rent free periods 28 --------- 27,563 ---------Total adjustment under IFRS at 31 March 2005 38,727 --------- 4.3 Share-based payments Under IFRS2 "Share based payments" a charge is recognised in the IncomeStatement for all share-based payments granted to employees after 7 November2002 but not yet vested based on the fair values of the grants and the numberexpected to become exercisable. The fair value at the date of award iscalculated using an option pricing model (Black-Scholes) and the resultingvalues will be amortised through the income statement over the vesting period ofthe options to reflect actual and expected levels of vesting. Application of this standard has resulted in an additional charge to the incomestatement of £82,000 for the year ended 31 March 2005 over and above thatalready made under UK GAAP in respect of options awarded under the Group's LongTerm Incentive Plan. A charge of £78,000 has been debited to retained earningsbrought forward at 31 March 2004. There is no effect on net assets. Details of share option awards are contained in the Report on Director'sRemuneration and Note 19 of the 2005 Annual Report. 4.4 Business combinations Under UK GAAP, goodwill was amortised on a straight line basis over its economicuseful life of up to 20 years, tested for impairment and provided for ifnecessary. Under IFRS3 "Business Combinations" goodwill is not amortised but iscarried at cost and subject to an annual review for impairment review at 31March. The goodwill arising from the purchase of Big Yellow Self Storage CompanyLtd has been assessed as having a fair value in excess of its 1 April 2004 netbook value of £1,432,000. As a consequence the amortisation charged under UKGAAP for the year to 31 March 2005 of £97,000 has been reversed with aconsequential increase in net assets. 4.5 Financial instruments IAS 32 and IAS 39 are the standards which govern the accounting for financialinstruments. IAS 32 covers disclosure and presentation, while IAS 39 coversrecognition and measurement, including detailed rules for hedge accounting.These standards are not considered to have a significant impact on Big Yellow. Big Yellow's policy in respect of interest rates is to maintain a balancebetween flexibility and hedging of interest rate risk. The Group does not applyhedge accounting to its interest rate swaps. The difference between the carryingvalue and the fair value of Big Yellow's financial assets and liabilities wasonly a disclosure requirement under UK GAAP, as shown in Note 19 of the 2005Annual Report. Under IAS 39 changes to the fair value will be reported in theincome statement. As at 1 April 2004 the fair value of loans was assessed at £220,000 more thanthe carrying amount. At 31 March 2005 the fair value had reduced to £153,000resulting in debit to the income statement of £67,000 for the financial year andnet assets being £153,000 lower under IFRS than that recorded under UK GAAP. 4.6 Events after balance sheet date Under UK GAAP, proposed dividends are recognised as a liability in the period towhich they related. Under IAS10 "Events after the Balance Sheet Date" onlyliabilities actually existing at the balance sheet date are to be provided for.Final dividends payable do not meet this definition as they are subject toapproval at the Annual General Meeting. As a result the 2005 proposed finaldividend of £1,512,000 provided under UK GAAP has not been recognised in theyear and the net assets at 31 March 2005 under IFRS have increased by thatamount. There is no effect on the income statement. 4.7 Non-current assets held for resale At 31 March 2005, the cost of surplus land intended for sale of £2,867,000 hasbeen reclassified from the Fixed Asset class "Assets under the course ofConstruction" to "Non-Current Assets Held for Sale" as prescribed by IFRS5. Thefigure represents the historic cost of surplus land held at three sites which itwas the Group's intention to sell during the financial year ending 31 March2006. There is no effect on the profit for the year to 31 March 2005 or the netassets at that date. SECTION 2 FINANCIAL INFORMATION FOR THE YEAR ENDED 31 MARCH 2005 2.1 Group income statement 2.2 Group balance sheet 2.3 Group statement of changes in shareholders' equity 2.4 Group cash flow statement 2.5 Group reconciliation of Earnings per share and Net Asset Value per share 2.1. Group Income Statement Unaudited Consolidated Income Statement Year ended 31 March 2005 IFRS2 IFRS3 IAS39 IAS 40 Share based Business Financial Investment Total UK GAAP payments Combinations Instruments Property Adjustments IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 Revenue 33,375 - 33,375 Cost Of Sales (18,254) 5,330 5,330 (12,924) ----------------------------------------------------------------------------------Gross Profit 15,121 - - - 5,330 5,330 20,451 Administrative expenses (5,436) (82) 97 15 (5,421) ---------------------------------------------------------------------------------- Profit from Operations 9,685 (82) 97 - 5,330 5,345 15,030 Profit on the sale of investment properties 2 - 2 Gain on revaluation of properties - 34,976 34,976 34,976Finance Income 142 - 142Finance costs (5,776) 67 (1,605) (1,538) (7,314) ----------------------------------------------------------------------------------Profit before tax 4,053 (82) 97 67 38,701 38,783 42,836 Taxation (1,531) (20) (11,144) (11,164) (12,695) ----------------------------------------------------------------------------------Profit after tax 2,522 (82) 97 47 27,557 27,619 30,141 ---------------------------------------------------------------------------------- Basic Earnings per Share 2.52 30.15 Diluted Earnings per Share 2.48 29.70 2.2 Unaudited Consolidated Balance Sheet 31 March 2005 IFRS2 IFRS3 IFRS5 IAS10 IAS12 IAS39 IAS40 Events Share after based Business Assets held balance Income Financial Investment UK GAAP payments Combinations for sale sheet date Tax Instruments Property IFRS £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Non-current assets Intangible Assets 1,335 97 1,432 Property, plant and equipment 177,824 (2,867) (137,566) 37,391 Investment Property 300,889 300,889 --------------------------------------------------------------------------------------------------- 179,159 - 97 (2,867) - - 163,323 339,712 ---------------------------------------------------------------------------------------------------Current assets Inventories 254 254Trade and other receivables 8,896 8,896 Cash and cash equivalents 6,379 6,379 --------------------------------------------------------------------------------------------------- 15,529 - - - - - 15,529 --------------------------------------------------------------------------------------------------- Non-current assets held for sale - 2,867 2,867 ---------------------------------------------------------------------------------------------------Total Assets 194,688 - 97 - - - 163,323 358,108 --------------------------------------------------------------------------------------------------- Current liabilities Trade and other (3,623) (3,623) payables Tax liabilities (32) (32) Bank overdrafts and loans - Short-term provisions (11,569) 1,512 96 (9,961) --------------------------------------------------------------------------------------------------- (15,224) - - - 1,512 - 96 (13,616) Net current assets 305 - - - 1,512 - 96 1,913 --------------------------------------------------------------------------------------------------- Non-current liabilities Bank Loans (108,348) (153) (108,501)Finance Lease creditor - (25,659) (25,659)Deferred tax liabilities (299) (38,727) (39,026)Long term provisions (12,138) (12,138) --------------------------------------------------------------------------------------------------- (120,785) - - - - (38,727) (153) (25,658) (185,324) ---------------------------------------------------------------------------------------------------Total Liabilities (136,009) - - - 1,512 (38,727) (153) (25,562) (198,940) ---------------------------------------------------------------------------------------------------Net Assets 58,679 - 97 - 1,512 (38,727) (153) 131,937 159,168 ---------------------------------------------------------------------------------------------------EQUITYShare capital 10,073 10,073Capital Redemption reserve 1,653 1,653Share premium account 2,390 2,390Own shares (812) (812)Distributable reserves 42,853 82 1,512 (27,563) (220) 99,059 115,723Profit for the year ended 31 March 2005 2,522 (82) 97 (11,164) 67 38,701 30,141 ---------------------------------------------------------------------------------------------------Equity attributable to equity holders 58,679 - 97 - 1,512 (38,727) (153) 137,760 159,168 2.3 Group statement of changes in shareholders' equity Unaudited Statement of Changes in Equity Capital Share redemption Share Own Distributable Capital reserve Premium Shares Reserves Total £'000 £'000 £'000 £'000 £'000 £'000 Balance at 1 April 2004 UK GAAP 9,940 1,653 1,959 44,839 58,391IFRS Opening adjustments 72,320 72,320 --------------------------------------------------------------------------Balance at 1 April 2004 IFRS 9,940 1,653 1,959 117,159 130,711 Issue of shares 133 431 564Equity share options 108 108Purchase of own shares (812) (812) --------------------------------------------------------------------------Net income recognised directly in equity 133 431 (812) 108 (140) Profit for the financial year 30,141 30,141 --------------------------------------------------------------------------Total recognised income and expenses for the year 133 431 (812) 30,249 30,001 Dividends (1,544) (1,544) Balance at 31 March 2005 IFRS 10,073 1,653 2,390 (812) 145,864 159,168 2.4 Group cash flow statement Unaudited Consolidated Cash Flow Statementfor the year ended 31 March 2005 IFRS2 IFRS3 IAS40 Share based Business Investment Total UK GAAP payments Combinations Property Adjustments IFRS £'000 £'000 £'000 £'000 £'000 £'000 Net operating profit 9,685 (82) 97 5,290 5,305 14,990Depreciation 4,347 (3,071) (3,071) 1,276Amortisation of goodwill 97 (97) (97) -Share options expense 82 82 82Increase in stock 34 - 34Increase in debtors (561) - (561)Increase in creditors 1,185 (614) (614) 571 --------------------------------------------------------------------------Cash generated from operations 14,787 - - 1,605 1,605 16,392 -------------------------------------------------------------------------- Interest paid (4,837) (1,605) (1,605) (6,442)Loan arrangement fees (415) (415)Interest received 129 129 --------------------------------------------------------------------------Net cash from operating activities 9,664 - - - - 9,664 -------------------------------------------------------------------------- Investing activitiesProceeds on disposal of property, plant and equipment 3,729 - 3,729Purchases of property, plant & equipment (45,710) - (45,710) --------------------------------------------------------------------------Net cash used in Investing activities (41,981) - - - - (41,981) -------------------------------------------------------------------------- Financing activitiesDividends paid (1,545) - (1,545)Issue of ordinary share capital (net of expenses) 564 - 564Purchase of own shares (812) - (812)New bank loans raised 40,000 - 40,000 --------------------------------------------------------------------------Net cash from Financing activities 38,207 - - - - 38,207 -------------------------------------------------------------------------- Net Increase in cash 5,890 - - - - 5,890 -------------------------------------------------------------------------- 2.5 Group reconciliation of Earnings per share and Net Asset Value per share Earnings Per Share year ended 31 March 2005 UK GAAP Adjustments IFRS £'000 £'000 £'000 Earnings used for calculation of basic earning per share 2,522 27,619 30,141 Less gain on revaluation of investment properties (34,976) (34,976) Add back deferred tax in respect of investment properties 10,493 10,493 Add back fair value movement on interest rate swaps net of tax (47) (47) ---------------------------------------------Earnings used for calculation of adjusted earnings per share 2,522 3,088 5,611 Weighted average no. of shares 99,971,791 99,971,791Adjusted basic earnings per share 2.52p 3.09p 5.61p Net Asset Value per Share UK GAAP Adjustments IFRS £'000 £'000 £'000 As per Balance Sheet 58,679 100,489 159,168Fair Value movement of interest rate swaps (154) 154 Exercise of share options 7,331 7,331 Revaluation uplift on properties 134,983 (134,983) Add back deferred tax on revaluation surplus 40,194 40,194 Add back deferred tax on fair value of interest rate swaps (46) (46) --------------------------------------------- 200,839 5,808 206,647 No. of shares 108,120,866 108,120,866Adjusted net assets per share 185.8p 191.1p This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Big Yellow