22nd Jul 2005 10:00
Pendragon PLC22 July 2005 PENDRAGON PLC - ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS Pendragon PLC, the largest car retailer in the UK, has published today itsreport explaining the effects of the introduction of International FinancialReporting Standards (IFRS) on its previously reported results for the yearended 31 December 2004. The full report is available on Pendragon's website(address http://www.pendragonplc.com/news.asp?newsid=612). Background Pendragon has previously reported its results under UK Generally AcceptedAccounting Principles (UK GAAP). Following adoption of Regulation 1606/2002 bythe European Parliament in July 2002 all EU listed companies are required toreport their consolidated financial statements under IFRS for accountingperiods beginning on or after 1 January 2005. The group's first annual reportunder IFRS will be for the year to 31 December 2005 with the first IFRS interimresults for the six months ended 30 June 2005. The report available on the website explains the main changes that are requiredto the group's financial statements on adoption of IFRS. The financialinformation presented is unaudited. The report is set out in the followingsections: •Summary of IFRS changes •Basis of preparation •IFRS1 - first time adoption rules •Accounting policy changes and financial effect •Group balance sheet transition reconciliation as at 1 January 2004 and 31 December 2004 and 30 June 2004 •Group income statement transition reconciliation for the year ended 31 December 2004 and six months ended 30 June 2004 Summary of IFRS changesThe changes to the 2004 results arising from the implementation of IFRS aresummarised in the table below. To aid comparison, the results under UK GAAP havebeen included in this table. IFRS terminology has been used in the transitionreconciliations. Results year ended 31 December 2004 UK GAAP IFRS£m Underlying operating profit 91.2 87.7Goodwill amortisation/impairment (9.7) (1.9)Exceptional costs of integration (4.7) (4.7) Operating Profit 76.8 81.1 Profit on disposal of fixed assets 18.9 18.9 Profit before interest 95.7 100.0 Interest (30.7) (34.6) Profit before tax 65.0 65.4 Tax (20.9) (19.7) Profit after tax 44.1 45.7 EPS - basic (pence) 35.9 37.1EPS adjusted (pence) 33.9 30.0 The net effect on the 2004 results of the changes arising on transition to IFRSis to increase the group profit after tax by £1.6m which increases basicearnings per share by 1.2 pence per share. Adjusted earnings per share, basedon underlying operating profit less interest cost and the associated taxcharge, reduces by 3.9 pence per share principally due to a one off restatementof the profit generated on acquisitions undertaken last year. The main effect of the IFRS changes is to increase net assets and distributablereserves of the group by £41.2m as at 31 December 2004. The main increases innet assets are £78.8m due to the restatement of land and buildings to fairvalue and £7.4m due to the deferment of the final dividend for 2004 into thesubsequent accounting period. The main reductions in net assets arise with therecognition of pension scheme deficit of £31.9m and an increase in deferred taxliability of £13.9m. All the adjustments are explained in greater detail in the full report. Pendragon will be holding an IFRS presentation this morning at 10.30 at FinsburyGroup, 52 - 58 Tabernacle Street, EC2A 4NJ. The interim results for the sixmonths ending 30 June 2005 will be published on 4 August 2005. For further information, contact; http://www.pendragonplc.com/news.asp?newsid=612 This link will take the reader to the announcement on the plc website from wherethe full report can be accessed. Pendragon PLCDavid Forsyth - Finance Director (01623 725 114)Richard Hamblin - Group Financial Controller (01623 725 114) Finsbury GroupGordon Simpson (0207 251 3801) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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