19th Jun 2006 07:00
Electronic Data Processing PLC19 June 2006 19 June 2006 Electronic Data Processing PLC (EDP) Interim results - 6 months to 31 March 2006 EDP is the largest IT solution provider to the UK independent Builders andTimber Merchants market place and a leading supplier to the wholesaledistribution industry. Financial Highlights • Profit before tax £218,000 (2005: £216,000) reflects continuing tough trading conditions in sector. • Turnover only marginally lower at £3.3 million (2005: £3.5 million). • Recurring revenues represent 72% of total revenues. • Significant hosting contract wins in the period alongside improving demand for the Group's Internet trading, XML Highway and Business Intelligence software products. • Continued R&D investment of £733,000 in the period (£1.6 million in the full year to 30 September 2005). • Cash balances £5.8 million. • Interim dividend maintained at 0.713p per share. Michael Heller, Chairman of EDP, said: "Although the IT sector remains difficult, the investments that we have made inour advanced software technology products and hosting services facilities makeme more optimistic for the medium term and I look forward to a satisfactoryoutcome for the year as a whole." -Ends- For further information please contact: Richard Jowitt Julian WassellChief Executive Financial Director0114 262 2001 0114 262 2007 www.edp.fastfreenet.com Sebastian Hoyle / Toby MountfordCitigate Dewe Rogerson020 7638 9571 Chairman's Statement Group pre-tax profit for the period was £218,000 (2005: £216,000) which reflectsthe continuing tough trading conditions in the IT sector. Group sales for the period were only marginally lower at £3.3 million comparedwith £3.5 million in the corresponding period. Contracted recurring revenues,the majority of which relate to Group software products annual licence fees andhosting services fees, represent 72% of turnover. These results are presented for the first time under International FinancialReporting Standards (IFRS). All 2005 comparisons have been restatedaccordingly. The most significant impact of this change is the recognition of aliability of £326,000, net of deferred tax, in respect of the Group's DefinedBenefit Pension Scheme as at 31st March 2006 and a change in the timing of therecognition of dividends payable. These matters, together with otheradjustments required under IFRS, are explained more fully later in this interimstatement. Significant application solution hosting contract wins have been achieved withthirty-seven customers now contracted. More customers are choosing this methodof operation. The need of our customers to implement extended IT facilitiesresults in increasing complexity of IT infrastructure generally and to deal withit management require more and more of the technical skills your Group provides.This modus operandi has been boosted by the rapid reduction in the cost ofbroadband telecommunications. A number of significant proposals remainoutstanding and we expect to win further major hosting contracts in the secondhalf. These long-term customer-hosting contracts provide additionalopportunities for our customers to implement our Quantum VSII Internet Tradingsolution, which integrates with the back office system and permits theircustomers to trade online. We are also beginning to see signs of demandimproving for our Quantum VS XML Highway product-set as businesses begin tounderstand the operational benefits to be gained by trading electronically,taking physical paper out of their business processes. Licence sales of QuantumVS myViewpoint, the Group's Business Intelligence & Decision Support solution,continue to grow with a further 40 licences shipped in the first half. The nextrelease of the myViewpoint product-set, myViewpoint Anywhere, is due to achieveits General Customer Availability status in July. This release will enablefactual personalised Business Intelligence, Sales Intelligence and DecisionSupport information to be available through the browser. A further extension tothis online functionality via the BlackBerry hand held device is in its detailedplanning stage. The Group cost base continues to be reduced as the computer hardware serviceoperations decline and existing maintenance contracts come to an end. YourGroup will become wholly a supplier of its software products and associatedservices, and we intend to grow our long-term application hosting servicesbusiness. Our continued investment in Research & Development was £733,000 during theperiod (£1.6 million in the full year to 30 September 2005) all of which hasbeen charged in the Income Statement. The Group's balance sheet remains strong with net assets of £12.8 million ofwhich £5.8 million is in cash. As previously reported, the Group's propertyportfolio was professionally valued during the year to 30th September 2005 at£11.3 million which compares with the book value of £8.85 million. Your Directors have resolved to pay an interim dividend of 0.713p per ordinaryshare, the same as last year, and this dividend will be paid on 1st August 2006to those shareholders on the register on 7th July 2006. The shares will beex-dividend on 5th July 2006. Although the IT sector remains difficult, the investments that we have made inour advanced software technology products and hosting services facilities makeme more optimistic for the medium term and I look forward to a satisfactoryoutcome for the year as a whole. Michael Heller 16 June 2006Chairman Consolidated Income StatementFor the 6 months ended 31 March 2006 Unaudited Unaudited Unaudited 6 months 6 months Full year to to to 31.3.06 31.3.05 30.9.05 £'000 £'000 £'000 Revenue 3,274 3,472 6,964 Gross profit 2,961 3,177 6,338 Administrative expenses (2,868) (3,115) (6,119)Restructuring costs - - (66) Operating profit 93 62 153 Finance revenue 125 154 278 Profit before tax 218 216 431 Income tax expense (17) (69) (143) Profit for the period attributable to equity holders of the 201 147 288parent Earnings per share - basic and diluted 0.82p 0.60p 1.18p Dividends per share 0.713p 0.713p 2.376p Net assets per share 52.5p 53.1p 53.5p Consolidated Balance Sheetat 31 March 2006 Unaudited Unaudited Unaudited at at at 31.3.06 31.3.05 30.9.05 £'000 £'000 £'000 Non-current assetsProperty, plant and equipment 6,779 9,176 9,083Investment property 673 680 676Deferred tax asset 174 213 155Intangible assets 88 113 105 7,714 10,182 10,019Current assetsAssets held for resale 2,131 - -Inventories 218 289 246Trade and other receivables 1,752 2,357 1,927Income tax receivable 92 73 76Cash and cash equivalents 5,789 6,513 5,269 9,982 9,232 7,518Current liabilitiesDeferred income (2,493) (2,648) (2,511)Income tax payable (55) (138) (40)Trade and other payables (1,689) (3,042) (1,335) (4,237) (5,828) (3,886) Net current assets 5,745 3,404 3,632 Total assets less current liabilities 13,459 13,586 13,651 Non-current liabilitiesDeferred income (15) (15) (25)Employee benefits (465) (493) (395)Deferred tax liability (150) (111) (150) (630) (619) (570) 12,829 12,967 13,081 EquityIssued capital 1,222 1,220 1,222Share premium 87 77 87Capital redemption reserve 88 88 88Translation reserve 3 - 3Retained earnings 11,429 11,582 11,681 12,829 12,967 13,081 Consolidated Cash Flow Statementfor the 6 months ended 31 March 2006 Unaudited Unaudited Unaudited 6 months 6 months Full year to to to 31.3.06 31.3.05 30.9.05 £'000 £'000 £'000 Cash generated from operations 422 133 829Interest received 123 121 254Income taxes paid (16) (23) (158)Net cash from operating activities 529 231 925 Cash flows from investing activitiesPurchase of property, plant and equipment (41) (79) (249)Purchase of intangible assets - - (10)Proceeds from sale of plant and equipment 32 42 67Net cash used in investing activities (9) (37) (192) Cash flows from financing activitiesSale of own shares - - 12Dividends paid - - (1,800)Net cash used in financing activities - - (1,788) Net increase/(decrease)in cash and cash equivalents 520 194 (1,055)Cash and cash equivalents at beginning of period 5,269 6,320 6,320Effect of exchange rate fluctuations on cash held - (1) 4Cash and cash equivalents at end of period 5,789 6,513 5,269 Statement of Total Recognised Income and Expensefor the 6 months ended 31 March 2006 Unaudited Unaudited Unaudited 6 months 6 months Full year to to to 31.3.06 31.3.05 30.9.05 £'000 £'000 £'000 Actuarial (losses)/gains on pension scheme (68) 618 807Deferred tax on pension liability 21 (185) (242)Foreign exchange translation difference - - 3 Net (expense)/income recognised directly In equity (47) 433 568 Profit for the period 201 147 288 Total recognised income and expense 154 580 856 Notes (1) The interim results to 31 March 2006, which are unaudited, are the first results to be prepared under IFRS. They have been prepared in accordance with the accounting policies to be adopted in the Group's next annual accounts, which are the same as those policies used in the preparation of the accounts for the year ended 30 September 2005 with the exception of certain changes which have been adopted in order to comply with IFRS. (2) The comparative figures for the financial year ended 30 September 2005 are not the Company's statutory accounts for that financial year. Those accounts which were prepared under UK GAAP have been reported on by the Company's auditor and delivered to the Registrar of Companies. The independent auditor's report was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. (3) The taxation charge is derived from the Directors' best estimate of the annual tax rate applied to the result for the period. The tax rate for the period differs from the standard rate of corporation tax in the UK of 30% mainly due to adjustments relating to prior years. (4) Earnings per share is calculated by dividing the profit after tax of £201,000 (2005: £147,000) by 24,432,362 (2005: 24,402,362) being the average number of shares in issue during the period. Basic and diluted earnings per share are both 0.82p (2005: 0.60p). (5) Reconciliation of operating profit to net cash inflow from operating activities Unaudited Unaudited Unaudited 6 months 6 months Full year to to to 31.3.06 31.3.05 30.9.05 £'000 £'000 £'000 Operating profit 93 62 153 Depreciation and amortisation 198 259 524 Changes in working capital and other non-cash items 131 (188) 152 Cash inflow from operating activities 422 133 829 The Impact of International Financial Reporting Standards (IFRS) Introduction Consolidated financial statements for listed companies are required to beproduced under IFRS for all accounting periods beginning on or after 1 January2005. Accordingly Electronic Data Processing PLC (EDP) has produced its interimresults for the 6 months ended 31 March 2006 and will produce its consolidatedfinancial statements for the year ending 30 September 2006 in accordance withIFRS, as adopted for use in the EU. The adoption of IFRS requires the restatement of the Group's comparative resultsfor the year ended 30 September 2005 and for the 6 month period ended 31 March2005, together with the restatement of the Group's Balance Sheets as at 1October 2004 (the Group's effective date of transition to IFRS), 31 March 2005and 30 September 2005. The effect of this is set out below together with anexplanation of the main differences between UK GAAP and IFRS which affect EDP. Preparation of Financial Information The information presented below reflects all IFRS and International AccountingStandards ("IAS") that are currently expected to apply to the Group's financialstatements for the year ended 30 September 2006. However, certain standards maybe subject to amendment. Therefore the Group's financial statements for theyear ended 30 September 2006 and the restated information set out below could beaffected by any such amendments. The UK GAAP figures shown below relating to the 1 October 2004 Balance Sheet andfor the financial year ended 30 September 2005 are not the Company's statutoryaccounts, but are derived therefrom. Those accounts, which were prepared underUK GAAP, have been reported on by the Company's auditor and delivered to theRegistrar of Companies. The independent auditor's report was unqualified anddid not contain a statement under Section 237(2) or (3) of the Companies Act1985. In accordance with IFRS 1, no adjustments have been made for any changes inestimates made at the time of approval of the UK GAAP financial statements onwhich the restated information is based. The financial statements are prepared on the historical cost basis. Non-currentassets held for sale are stated at the lower of previous carrying amount andfair value less costs to sell. Accounting Policies and Transition Adjustments The Group's accounting policies have been applied consistently to all periodsand are the same as those policies used in the preparation of the last annualfinancial statements for the year ended 30 September 2005, with the exception ofthe following changes to the accounting policies which have been adopted inorder to comply with IFRS. Dividends Under UK GAAP, as previously reported, dividends were charged in the period towhich they relate and were accrued in the Balance Sheet at that date. In accordance with IAS 10, "Events after the Balance Sheet Date", dividendsapproved after the Balance Sheet date are not accrued at the Balance Sheet datebecause they do not represent an obligation as defined by IAS 37, "Provisions,Contingent Liabilities and Contingent Assets". Under IFRS dividends aretherefore charged in the period in which they are approved or, in the case ofinterim dividends, the period in which they are paid. The impact of this adjustment has been to reverse the final and specialdividends for the years ended 30 September 2004 and 2005, and to reflect them inequity in the following accounting periods. Additionally the interim dividendrelating to the 6 month period ended 31 March 2005 has been reversed at thatdate and is now reflected in equity in the second half of the financial yearended 30 September 2005. Goodwill Goodwill represents the excess of the fair value of the purchase price over thefair value of the net assets acquired as part of a business combination. UnderUK GAAP the Group amortised goodwill over its expected useful life. Under IFRS3, "Business Combinations", goodwill is assumed to have an indefinite usefullife and is therefore not amortised but is reviewed for impairment on an annualbasis. The amount of any such impairment is charged to the Income Statement. The goodwill existing in the Balance Sheet at 1 October 2004 related to theacquisition of the Group's wholly owned subsidiaries Disys and BCT and under UKGAAP was fully written off at 30 September 2005. In making the transition toIFRS, the Group has retrospectively applied IFRS 3 to the acquisition of each ofthese subsidiaries and has attributed values to the intangible assets acquired.As a result, under IFRS, all intangible assets arising from businesscombinations have been fully written off prior to 1 October 2004. The adjustment reverses the amortisation charged in the Income Statement andremoves the balance of the goodwill from the Group Balance Sheets. The impacton the Income Statements for the 6 months ending 31 March 2005 and the yearending 30 September 2005 is £80,000 and £141,000 respectively. At 1 October2004 and 31 March 2005 the Group's net assets were reduced by £141,000 and£61,000 respectively. Lease Incentives Under UK GAAP, rent free periods have been spread over the period from the dateof grant to the date of the first available break clause in the lease. UnderIFRS, rent free periods are amortised over the period from the date of grant tothe end of the lease. The adjustment spreads the cost of a rent free period over the longer period tothe end of the lease term. Employee Benefits - Holiday Pay Under UK GAAP, provision for holiday pay is a matter of accounting policy. TheGroup's policy was not to provide for holiday pay. Under IFRS, it is arequirement to provide for holiday pay. This adjustment reflects the incorporation of the provision for holiday pay ateach Balance Sheet date. The resulting movement in the provision is charged orcredited to employee costs included within administration costs in the IncomeStatement. Employee Benefits - Pensions The Group operates both defined contribution and defined benefit pensionschemes. The premiums relating to defined contribution schemes are charged tothe Income Statement in the period in which they accrue. The Group's net obligation in respect of its defined benefit pension plan iscalculated by estimating the amount of future benefit that employees have earnedin return for their service in the current and prior periods; that benefit isdiscounted to determine its present value, and the fair value of any planassets. The calculation is performed by a qualified actuary using the projectedunit credit method. Actuarial gains and losses occur when the actual returns on scheme assets differfrom those initially expected by the actuary. All actuarial gains and losses asat 1 October 2004 were recognised. The Group recognises actuarial gains andlosses arising subsequent to 1 October 2004 directly into equity through theStatement of Recognised Income and Expense in the period they occur. Under UK GAAP costs for defined benefit pension schemes were accounted for as acharge against operating profit by spreading the cost of providing the benefitsover the estimated average remaining service lives of employees in accordancewith SSAP 24. Under IAS 19, "Employee Benefits", the deficit on the Group's defined benefitpension scheme is recorded as a liability in the Balance Sheet and the actuarialgains and losses associated with this liability are to be recognised in theStatement of Recognised Income and Expense as they arise. All other movementsin the pension liability are recognised in the Income Statement for the relevantperiod. Under IFRS the deficit initially recognised in the Balance Sheet at 1 October2004 was £1,048,000. This liability subsequently reduced to £493,000 and£395,000 at 31 March 2005 and 30 September 2005 respectively. Associateddeferred tax assets were also recognised at the relevant Balance Sheet dates. The Statement of Total Recognised Income and Expense reflects £618,000 inrespect of this adjustment for the 6 month period ended 31 March 2005 and£807,000 for the year ended 30 September 2005. The balance of the movements inthe pension liability are reflected as a charge in the Income Statement for therelevant period. Associated movements in the deferred tax asset are alsorecognised in the Statement of Total Recognised Income and Expense or the IncomeStatement as appropriate. Property Property, plant and equipment are stated at cost or deemed cost less accumulateddepreciation and impairment losses. Certain items of property, plant andequipment that had been revalued to fair value on or prior to 1 October 2004 aremeasured on the basis of deemed cost, being the revalued amount at the date ofthat revaluation. Amounts previously included within the revaluation reservehave been transferred to retained earnings. Investment properties are properties which are held either to earn rental incomeor for capital appreciation or for both. Investment properties are stated atcost less accumulated depreciation. The Group's former head office building which was initially owner occupied hassubsequently changed its use and consequently is classified as an investmentproperty under IFRS. This adjustment is presentational only and does not affectthe Group's net assets. Non-Current Assets Held for Sale A non-current asset is classified as held for sale if its carrying amount willbe recovered principally through sale rather than through continuing use, it isavailable for immediate sale and sale is highly probable within one year. On initial classification as held for sale, non-current assets are measured atthe lower of previous carrying amount and fair value less costs to sell with anyadjustments taken to profit or loss. The same applies to gains and losses onsubsequent remeasurement. In accordance with IFRS 5, "Non-current Assets Heldfor Sale and Discontinued Operations", the above policy is effective from thestart of the current period; no reclassifications are made in prior periods. Foreign Currency Translation Differences Under IAS 21, the assets and liabilities of foreign operations are translated atexchange rates ruling at the Balance Sheet date. The revenues and expenses offoreign operations are translated at the average rate of exchange during theperiod. Previously the Group had translated these results under UK GAAP at theyear-end rate of exchange. The adjustment restates the results for the relevant periods in the IncomeStatement. A corresponding adjustment, reflecting the difference between theresults for the period at the average rate and at the year-end rates ofexchange, is made to the Translation Reserve. UK GAAP does not require translation differences to be separately identified andaccounted for in subsequent disposals of foreign operations. Under IFRS,translation differences are separately recorded in a Translation Reserve inequity. On disposal of a foreign operation, the cumulative translationdifferences for that operation are released into the Income Statement as part ofthe gain or loss on disposal. Under IFRS 1, the Group is not required to record cumulative translationdifferences arising prior to 1 October 2004. The Group has utilised thisexemption and all cumulative translation differences are deemed to be zero atthat date. Taxation Tax on the Group's profit or loss for the period comprises current and deferredtax. Tax is recognised in the Income Statement except to the extent that itrelates to items recognised directly in equity, in which case it is recognisedin equity. Current tax is the expected tax payable on the taxable income for the year,using tax rates enacted or substantively enacted at the Balance Sheet date, andany adjustment to tax payable in respect of previous years. Deferred tax is provided on temporary differences between the carrying amountsof assets and liabilities for financial reporting purposes and the amounts usedfor taxation purposes. The amount of deferred tax provided is based on theexpected manner of realisation or settlement of the carrying amount of assetsand liabilities, using tax rates enacted or substantively enacted at the BalanceSheet date. A deferred tax asset is recognised only to the extent that it isprobable that future taxable profits will be available against which the assetcan be utilised. Under IAS 12, "Income Taxes", deferred tax is based on temporary differencesbetween the carrying value of an asset or liability and its tax base. Under UKGAAP deferred tax is based on timing differences between accounting profit andtaxable profit. The effect of this on the Group Balance Sheet at 1 October 2004 was to increasethe Group's net assets by £314,000 in relation to the deferred tax assetassociated with the pension scheme liability and £18,000 in respect of otherIFRS adjustments. The deferred tax asset reduced by £168,000 in the 6 months ended 31 March 2005of which £17,000 was credited in the Income Statement and £185,000 was chargeddirectly to equity. The deferred tax asset reduced by £200,000 in the yearended 30 September 2005 of which £42,000 was credited in the Income Statementand £242,000 was charged directly to equity. Research and Development Costs Under UK GAAP, capitalisation of research and development costs is a matter ofaccounting policy. The Group's policy was not to capitalise such costs. Under IAS 38, "Intangible assets", research costs are written off as incurredbut development costs are capitalised if certain strict criteria are met. At the Balance Sheet dates in question, the Group does not consider that thosecriteria have been met in full due principally to technical and marketuncertainties. Accordingly it is not considered appropriate to captaliseinternal development costs at 1 October 2004, 31 March 2005 or 30 September2005. However, the criteria for capitalisation under IAS 38 will continue to beconsidered in relation to future development costs. Share Based Payments IFRS 2, "Share-based Payments", requires that the cost of providing shareoptions be charged to the Income Statement evenly over the vesting period of theoption. Cost is defined as the fair value of the option at the date of grant. The Group has chosen to adopt the exemption whereby IFRS 2 is only applied tooptions granted after 7 November 2002. As all of the Group's outstanding shareoptions were granted prior to that date, no adjustments to the Group's IncomeStatements are required under IFRS. Cash Flow The Group's cash flow statements have been revised under IFRS. However, thisonly affects the presentation of the cash flow information, not the underlyingfigures. Presentation The UK GAAP figures shown in the following reconciliations have in certaininstances been reformatted in order to comply with the presentationalrequirements of IFRS. However, the underlying UK GAAP figures are consistentwith those previously reported by the Group. Consolidated Income Statement For the year ended 30 September 2005 UK GAAP Goodwill Leases Employee Pensions Property Foreign Deferred IFRS Benefits Exchange Tax £000 £000 £000 £000 £000 £000 £000 £000 £000Revenue 6,971 (7) 6,964Cost of sales (626) (626)Gross profit 6,345 - - - - - (7) - 6,338 Administrative expenses (6,126) 141 4 8 (154) 8 (6,119)Restructuring costs (66) (66)Operating profit 153 141 4 8 (154) - 1 - 153 Finance revenue 278 278Profit before tax 431 141 4 8 (154) - 1 - 431 Income tax expense (185) 42 (143)Profit after tax 246 141 4 8 (154) - 1 42 288 Consolidated Income StatementFor the 6 months ended 31 March 2005 UK GAAP Goodwill Leases Employee Pensions Property Foreign Deferred IFRS Benefits Exchange Tax £000 £000 £000 £000 £000 £000 £000 £000 £000 Revenue 3,472 3,472Cost of sales (295) (295)Gross profit 3,177 - - - - - - - 3,177 Administrative expenses (3,138) 80 2 4 (63) (3,115)Restructuring costs - -Operating profit 39 80 2 4 (63) - - - 62 Finance revenue 154 154Profit before tax 193 80 2 4 (63) - - - 216 Income tax expense (86) 17 (69)Profit after tax 107 80 2 4 (63) - - 17 147 Consolidated Balance SheetAt 30 September 2005 UK GAAP Dividends Goodwill Leases Employee Pensions Property Foreign Deferred IFRS Benefits Exchange Tax £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Non-current assetsProperty, plant and 9,759 (676) 9,083equipmentInvestment property - 676 676Deferred tax asset 23 132 155Intangible assets 105 - - 105 9,887 - - - - - - - 132 10,019Current assetsInventories 246 246Trade and other 1,917 10 1,927receivablesIncome tax 76 76receivableCash and cash 5,269 5,269equivalents 7,508 - - 10 - - - - - 7,518Current liabilitiesDeferred income (2,511) (2,511)Income tax payable (40) (40)Trade and other (1,683) 406 (58) (1,335)payables (4,234) 406 - - (58) - - - - (3,886) Net current assets 3,274 406 - 10 (58) - - - - 3,632 Total assets less 13,161 406 - 10 (58) - - - 132 13,651current liabilities Non-currentliabilitiesDeferred income (25) (25)Employee benefits - (395) (395)Deferred tax (150) (150)liabilityNet assets 12,986 406 - 10 (58) (395) - - 132 13,081 EquityIssued capital 1,222 1,222Share premium 87 87Revaluation reserve 912 (912) -Capital redemption 88 88reserveTranslation reserve 4 (1) 3Retained earnings 10,673 406 10 (58) (395) 912 1 132 11,681 Total equity 12,986 406 - 10 (58) (395) - - 132 13,081 Consolidated Balance SheetAt 31 March 2005 UK GAAP Dividends Goodwill Leases Employee Pensions Property Foreign Deferred IFRS Benefits Exchange Tax £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Non-current assetsProperty, plant and 9,856 (680) 9,176equipmentInvestment property - 680 680Deferred tax asset 49 164 213Intangible assets 174 (61) 113 10,079 - (61) - - - - - 164 10,182Current assetsInventories 289 289Trade and other 2,349 8 2,357receivablesIncome tax 73 73receivableCash and cash 6,513 6,513equivalents 9,224 - - 8 - - - - - 9,232Current liabilitiesDeferred income (2,648) (2,648)Income tax payable (138) (138)Trade and other (3,154) 174 (62) (3,042)payables (5,940) 174 - - (62) - - - - (5,828) Net current assets 3,284 174 - 8 (62) - - - - 3,404 Total assets less 13,363 174 (61) 8 (62) - - - 164 13,586current liabilities Non-currentliabilitiesDeferred income (15) (15)Employee benefits - (493) (493)Deferred tax (111) (111)liabilityNet assets 13,237 174 (61) 8 (62) (493) - - 164 12,967 EquityIssued capital 1,220 1,220Share premium 77 77Revaluation reserve 917 (917) -Capital redemption 88 88reserveTranslation reserve - -Retained earnings 10,935 174 (61) 8 (62) (493) 917 164 11,582Total equity 13,237 174 (61) 8 (62) (493) - - 164 12,967 Consolidated Balance SheetAt 1 October 2004 UK GAAP Dividends Goodwill Leases Employee Pensions Property Foreign Deferred IFRS Benefits Exchange Tax £000 £000 £000 £000 £000 £000 £000 £000 £000 £000Non-current assetsProperty, plant and 10,068 (683) 9,385equipmentInvestment property - 683 683Deferred tax asset 105 332 437Intangible assets 269 (141) 128 10,442 - (141) - - - - - 332 10,633Current assetsInventories 308 308Trade and other 2,351 6 2,357receivablesIncome tax 73 73receivableCash and cash 6,320 6,320equivalents 9,052 - - 6 - - - - - 9,058Current liabilitiesDeferred income (2,617) (2,617)Income tax payable (154) (154)Trade and other (3,308) 1,626 (66) (1,748)payables (6,079) 1,626 - - (66) - - - - (4,519) Net current assets 2,973 1,626 - 6 (66) - - - - 4,539 Total assets less 13,415 1,626 (141) 6 (66) - - - 332 15,172current liabilities Non-currentliabilitiesDeferred income (24) (24)Employee benefits - (1,048) (1,048)Deferred tax (87) (87)liabilityNet assets 13,304 1,626 (141) 6 (66) (1,048) - - 332 14,013 EquityIssued capital 1,220 1,220Share premium 77 77Revaluation reserve 922 (922) -Capital redemption 88 88reserveTranslation reserve - -Retained earnings 10,997 1,626 (141) 6 (66) (1,048) 922 332 12,628Total equity 13,304 1,626 (141) 6 (66) (1,048) - - 332 14,013 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Electronic Data Processing