21st Sep 2005 06:00
Investec plc and Investec Limited ("Investec" or "the group")21 September 2005Transition to International Financial Reporting StandardsInvestec is hosting an investor briefing today starting at 09:00 (GMT) whichwill focus on the key impacts resulting from the adoption of InternationalFinancial Reporting Standards (IFRS).From 1 April 2005 the group is required to prepare its consolidated results(comprising the results of Investec plc and Investec Limited) in accordancewith IFRS. Previously these were prepared in accordance with UK GenerallyAccepted Accounting Practice (UK GAAP). The first set of IFRS compliantfinancial statements that will be prepared by the group will be for the yearending 31 March 2006.The group's transition to IFRS has been performed in accordance with IFRS 1"First-Time Adoption of International Reporting Standards" and other relevantstandards as expected to be applicable at 31 March 2006.A summary of the impact on the group of the transition to IFRS for the yearended 31 March 2005 and for the six months ended 30 September 2004 is providedin the tables below.For the year ended 31 March 2005 Unaudited Audited % change IFRS UK GAAP Pro-forma*** (as previously reported) Operating profit before goodwill 229 234 222 388 3.1impairment, non-operating items and tax (‚£'000) Profit attributable to shareholders* (‚£ 114 465 100 524 13.9'000) Adjusted** profit attributable to 153 087 151 146 1.3ordinary shareholders (‚£'000) Basic EPS (pence) 92.5 81.5 13.5 Adjusted** EPS (pence) 137.8 140.8 (2.1) Basic weighted average number of shares 111.1 107.4 3.4in issue (million) Total equity including minority 1 083 056 980 451 10.5interest as at 1 April 2005 (‚£'000) For the six months ended 30 September Unaudited Audited % change 2004 IFRS UK GAAP Pro-forma*** (as previously reported) Operating profit before goodwill 96 896 95 887 1.1impairment, non-operating items and tax (‚£'000) Profit attributable to shareholders* 61 663 37 776 63.2(‚£'000) Adjusted** profit attributable to 68 172 66 208 3.0ordinary shareholders (‚£'000) Basic EPS (pence) 49.7 29.9 66.2 Adjusted** EPS (pence) 60.9 61.7 (1.3) Basic weighted average number of shares 111.9 107.4 4.2in issue (million) Total equity including minority 882 941 803 225 9.9interest as at 30 September 2004 (‚£'000) Note:*After tax, minority interests, non-operating items and goodwill impairment.**Before goodwill impairment and non-operating items and after taking intoconsideration earnings attributable to perpetual preference shareholders.***In accordance with the provisions of IFRS 1, the group has elected not toapply the requirements of IAS 32, "Financial Instruments: Disclosure andRecognition", IAS 39, "Financial Instruments: Recognition and Measurement" andIFRS 4, "Insurance Contracts" to the 2005 comparative period. The impact ofadoption of these standards is reflected as an adjustment to the openingbalance sheet at 1 April 2005. To facilitate comparability, a pro-forma incomestatement is presented which incorporates the impact of the adoption of IAS39in the following respects: * recognising certain fees on an effective yield basis, * the release of general provisions on loans and advances and * fair value adjustments for embedded derivatives. An assessment of the key statements and their impact on the group'sattributable profit, assets, liabilities and equity for the year ended 31 March2005 and for the six months ended 30 September 2004 is provided in the tablesbelow:‚£'000 Pro-forma Assets Liabilities Total profit equity, attributable including to minorities shareholders Key statements / impacts 31 March 1 April 1 April 1 April 2005 2005 2005 2005 IFRS 2 - share based payments (8 018) 1 240 686 554 IFRS 3 - business combinations 11 218 10 943 - 10 943 IFRS 4 - insurance contracts - 1 288 406 1 288 406 - IAS 10 - events after balance - - (49 593) 49 593sheet date IAS 12 - income taxes 413 7 144 (154) 7 298 IAS 17 - leases (6 386) 4 430 11 363 (6 933) IAS 18 - revenue recognition (3 490) (2 565) 11 300 (13 865) IAS 19 - employee benefits - 3 297 3 437 (140) IAS 21 - effects of changes in 1 142 - - -foreign exchange rates IAS 27/28/31 - consolidations 2 340 25 676 2 030 23 646 IAS 32/39 - financial 12 389 676 810 645 301 31 509instruments IAS 40 - investment property 4 333 - - - Overall impact of IFRS 13 941 2 015 381 1 912 776 102 605‚£'000 Pro-forma Assets Liabilities Total profit equity, attributable including to minorities shareholders Key statements / impacts 30 Sept 30 Sept 30 Sept 30 Sept 2004 2004 2004 2004 IFRS 2 - share based payments (4 525) 100 330 (230) IFRS 3 - business combinations 23 760 23 877 - 23 877 IFRS 4 - insurance contracts - 78 873 78 873 - IAS 10 - events after balance - - (38 231) 38 231sheet date IAS 12 - income taxes 100 115 (4) 119 IAS 17 - leases (3 120) 3 475 7 197 (3 722) IAS 18 - revenue recognition (2 821) - - - IAS 19 - employee benefits - 5 188 5 328 (140) IAS 21 - effects of changes in 1 441 - - -foreign exchange rates IAS 27/28/31 - consolidations 1 028 22 799 1 218 21 581 IAS 32/39 - financial 5 195 - - -instruments IAS 40 - investment property 2 829 - - - Overall impact of IFRS 23 887 134 427 54 711 79 716Supporting information is available on the website or from the Investor Relations Division.Note: future developments under IFRSThe financial information contained in this announcement has been prepared onthe group's expectation of standards that will be applicable at 31 March 2006(being the first time that the group will prepare financial statements underIFRS). Changes to information presented in this announcement may be requireddue to one or more of the following reasons: * Further standards and interpretations may be issued that could be applicable to the financial year ended 31 March 2006. * Interpretations may differ as practice develops. * Tax legislation and tax related interpretations may develop further. Presentation detailsThe investor briefing presentation will be broadcast live via video conferencefrom the group's offices in Johannesburg to London and Cape Town. The briefingwill also be available via a live telephone conference call. A delayed webcastand the recorded telephone conference call will be available on the websitethis afternoon. Further details in this regard can be found on the website at: www.investec.comInvestor Relations timetable:Six-month period end: 30 September 2005Release of interim results: 17 November 2005Financial year-end: 31 March 2006Release of preliminary results: 18 May 2006For further information please contact:Investec Investor Relations Citigate Dewe Rogerson Ursula Munitich Sara Batchelor / Simon Rigby+44 207 597 5546 +44 207 638 [email protected] PLCRelated Shares:
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