27th Mar 2006 07:06
27 March 2006The Sage Group plc ("Sage")2005 restatement and new accounting policies under International FinancialReporting StandardsAs required by International Accounting Standards, Sage will report itsconsolidated financial statements under International Financial ReportingStandards (IFRS), for all accounting periods beginning on or after 1 October2005. Previously the Group has applied UK Generally Accepted AccountingPrinciples (UK GAAP). The first financial results under IFRS will be the 2006interim results, for the period ended 31 March 2006, to be released on 10 May2006.Sage's results for the year ended 30 September 2005 were originally reportedunder UK GAAP in December 2005. As indicated at that time, Sage today reports arestatement (unaudited), under IFRS, of its 2005 financial results. Results forthe first half of 2005 are also included in the restatement.The purpose of this restatement is to assist in understanding of Sage's futureIFRS financial results and comparison with prior periods. Sage has alreadyprovided an illustration of IFRS impacts by presenting a restatement of its2004 financial results. The impact of the restatement on the 2005 results isbroadly similar to the impact on the 2004 results. The fundamentals of Sage'srevenues, profits, cash flows and balance sheet are unaffected.Restatements are shown for: i. Income Statement (previously referred to under UK GAAP as the Profit and Loss Account) ii. Balance Sheet iii. Cash Flow Statement - this restatement affects only the presentation of results iv. Geographical segmentation of revenue and operating profit The effects of the restatement upon the Income Statement are summarised below:Year ended 30 September Revenue EBITA* PBT2005, ‚£m UK GAAP 776.6 211.1 205.4 IAS 18: Revenue (17.0) (1.6) (1.6) IFRS 2: Share-based Payment (7.4) (7.4) IFRS 3: Business (i) (2.0)Combinations IAS 19: Employee Benefits (1.3) (1.3) IAS 38: Intangible Assets Development capitalisation 1.1 Development amortisation (0.6) Net development expenditure (ii) 0.5 IFRS 759.6 200.8 193.6 Impact of IFRS restatement (17.0) (10.3) (11.8) Impact of IFRS restatement -2% -5% -6%(%) *EBITA measure (Earnings before interest, tax and amortisation) excludes the effects of (i) amortisation of acquired intangible assets (ii) net capitalisation of software development expenditure Also released today are the Group's current accounting policies, which havebeen revised to comply with current application of IFRS.The full restatements and Sage's new accounting policies are available on www.sage.com/investors/ifrs.pdfAll future financial results will be reported under IFRS.Enquiries:The Sage Group plc +44 (0) 191 294 3068Paul Harrison, Finance DirectorPhil Branston, Investor RelationsTulchan Communications +44 (0) 20 7353 4200Julie FosterKirstie HamiltonENDSAGE GROUP PLCRelated Shares:
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