4th May 2005 06:30
4 May 2005 Premier Farnell presents results for the year ended 30 January 2005 under IFRS Premier Farnell plc, the leading global marketer and distributor of electronic,maintenance, repair and operations (MRO) and specialist products and services,presents its unaudited results under International Financial ReportingStandards (IFRS) for the year ended 30 January 2005.Premier Farnell will prepare its financial statements for the current financialyear, ending 29 January 2006, in accordance with IFRS. As a consequence,comparative financial results for the year ended 30 January 2005 will berestated in accordance with IFRS.IFRS does not impact the Group's underlying business performance, trading cashflows, its ability to pay ordinary dividends or its financing arrangements.The primary effects of IFRS on the Group are as follows: * the cessation of amortisation of goodwill which is instead subject to annual tests for impairment (increases 2004/5 pre-tax profit by ‚£2.7 million); * the requirement to reflect a charge in the profit and loss account relating to share-based payments (reduces 2004/5 pre-tax profit by ‚£2.4 million); * under UK GAAP, Premier Farnell accounted for pensions in accordance with SSAP 24 and also provided the required disclosures in accordance with FRS 17. IFRS requires the application of IAS 19, Employee Benefits, which broadly follows FRS 17 (reduces 2004/5 pre-tax profit by ‚£1.6 million); * the requirement to account for ordinary dividends in the period in which they are approved as opposed to the period to which they relate (no pre-tax profit impact); and * the requirement in 2005/6 to reclassify preference shares from shareholders' funds to debt. The impact on the Group's consolidated profit and loss account for the yearended 30 January 2005 can be summarised as follows: As reported As restated UK GAAP IFRS Audited Unaudited ‚£m ‚£m Revenue 776.7 776.7 Operating profit 73.8 72.5 Net finance cost (13.5) (13.5) Profit before taxation 60.3 59.0 Taxation (13.8) (14.0) Profit after taxation 46.5 45.0 Preference dividends (6.6) (6.6) Profit attributable to ordinary 39.9 38.4 shareholders ________ ________ Basic and diluted earnings per share 11.0p 10.6p Re classification of Preference sharesThe IFRS proforma consolidated profit and loss account (summarised below) hasbeen provided to illustrate the impact under IFRS of having to split thepreference shares into debt and equity components. This results in thereclassification of the preference dividend of ‚£6.6 million to a finance costand the need to reflect an annual amortisation charge relating to the impliedredemption premium of ‚£1.4 million. Under the IFRS 1 transitional rules, thischange in treatment does not take effect until the year ending 29 January 2006,with the comparatives for 2004/5 not requiring restatement.Year ended 30 January 2005 As reported As restated UK GAAP IFRS proforma Audited Unaudited ‚£m ‚£m Revenue 776.7 776.7 Operating profit 73.8 72.5 Net finance cost (13.5) (21.5) Profit before taxation 60.3 51.0 Taxation (13.8) (13.6) Profit after taxation 46.5 37.4 Preference dividends (6.6) - Profit attributable to ordinary 39.9 37.4 shareholders ________ ________ Basic and diluted earnings per share 11.0p 10.3p The full report, which * explains all material changes to the Group's accounting policies as adopted in its UK GAAP financial statements for the year ended 30 January 2005, in order to reflect IFRS; and * presents the unaudited summarised consolidated results of Premier Farnell for the year ended 30 January 2005, and each of the quarterly periods in that year, on an IFRS basis together with reconciliations from UK GAAP to IFRS is available on Premier Farnell's web site, www.premierfarnell.com.Enquiries:Andrew Fisher, Group Finance Premier Farnell plc +44 (0) 20 7851 4100 Director James Garthwaite, Group Director, Communications Richard Mountain Financial Dynamics +44 (0) 20 7269 7291 PREMIER FARNELL PLCRESTATEMENT OF FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JANUARY 2005 INACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)CONTENTSSummaryBasis of PreparationExplanation of IFRS AdjustmentsConsolidated Profit and Loss AccountsStatements of Recognised Income and ExpenseSegmental Operating ProfitConsolidated Balance SheetsSummarised Consolidated Cash Flow StatementsSUMMARYPremier Farnell plc (Premier Farnell) will prepare its financial statements forthe financial year ending 29 January 2006 in accordance with InternationalFinancial Reporting Standards (IFRS). As a consequence, comparative financialresults for the year ended 30 January 2005 will be restated in accordance withIFRS.IFRS does not impact the Group's underlying business performance, trading cashflows, its ability to pay ordinary dividends nor its financing arrangements.The primary effects of IFRS on the Group are as follows: * the cessation of amortisation of goodwill which is instead subject to annual tests for impairment (increases 2004/5 pre-tax profit by ‚£2.7 million); * the requirement to reflect a charge in the profit and loss account relating to share-based payments (reduces 2004/5 pre-tax profit by ‚£2.4 million); * under UK GAAP, Premier Farnell accounted for pensions in accordance with SSAP 24 and also provided the required disclosures in accordance with FRS 17. IFRS requires the application of IAS 19, Employee Benefits, which broadly follows FRS 17 (reduces 2004/5 pre-tax profit by ‚£1.6 million); * the requirement to account for ordinary dividends in the period in which they are approved as opposed to the period to which they relate (no pre-tax profit impact); and * the requirement in 2005/6 to reclassify preference shares from shareholders' funds to debt. IFRS 1 provides a number of exemptions on transition to IFRS which are detailedon page 2. In common with many UK companies, Premier Farnell will not beadopting IAS 32 and IAS 39 in its comparative period but the IFRS proformaconsolidated profit and loss account has been provided to illustrate the impactunder IFRS of having to split the preference shares into debt and equitycomponents. This results in the reclassification of the preference dividend of‚£6.6 million to a finance cost and the need to reflect an annual amortisationcharge relating to the implied redemption premium of ‚£1.4 million. Under theIFRS 1 transitional rules, this change in treatment does not take effect untilthe year ending 29 January 2006, with the comparatives for 2004/5 not requiringrestatement.The impact on the Group's consolidated profit and loss account for the yearended 30 January 2005 can be summarised as follows: As reported As restated As restated UK GAAP IFRS IFRS proforma Audited Unaudited Unaudited ‚£m ‚£m ‚£m Revenue 776.7 776.7 776.7 ________ ________ ________ Operating profit 73.8 72.5 72.5 Net finance cost (13.5) (13.5) (21.5) ________ ________ ________ Profit before taxation 60.3 59.0 51.0 Taxation (13.8) (14.0) (13.6) ________ ________ ________ Profit after taxation 46.5 45.0 37.4 Preference dividends (6.6) (6.6) - ________ ________ ________ Profit attributable to ordinary 39.9 38.4 37.4shareholders ________ ________ ________ Basic and diluted earnings per 11.0p 10.6p 10.3pshare BASIS OF PREPARATION 1. Introduction In 2002, the European Union approved the application of IFRS for all listedcompanies for periods commencing on or after 1 January 2005. As a result,Premier Farnell will first apply IFRS in its financial statements for the yearending 29 January 2006. Accordingly, the Group's quarterly announcements duringthe year ending 29 January 2006, together with comparative information, will beprepared and reported under IFRS.This document explains all material changes to the Group's accounting policiesas adopted in its UK GAAP financial statements for the year ended 30 January2005, in order to reflect IFRS. It also presents the unaudited summarisedconsolidated results of Premier Farnell for the year ended 30 January 2005, andeach of the quarterly periods in that year, on an IFRS basis together withreconciliations from UK GAAP to IFRS.The transition date to IFRS for Premier Farnell is 2 February 2004.2. Basis of AccountingThe financial information presented in this document has been prepared on thebasis of the application of all IFRS that have been published to date that areapplicable to Premier Farnell, including International Accounting Standards(IAS) and interpretations issued by the International Accounting StandardsBoard (IASB) and all its committees. These are subject to ongoing amendment bythe IASB and subsequent endorsement by the European Commission and aretherefore subject to possible change. This could result in the need to changethe basis of accounting or presentation of certain financial information fromthat presented in this document. It is possible, therefore, that furtherchanges will be required to this information before it is published as officialcomparative information for the year ending 29 January 2006.In particular, in preparing this financial information, the Group has assumedthat the European Commission will endorse the amendment to IAS 19, EmployeeBenefits - Actuarial Gains and Losses, Group Plans and Disclosures, whichallows actuarial gains and losses to be accounted for through the Statement ofRecognised Income and Expense.The financial information presented within this document is unaudited.3. IFRS 1 exemptionsIFRS 1, First Time Adoption of IFRS (revised 2004), permits companies adoptingIFRS for the first time to take exemptions from applying the full requirementsof IFRS to certain items. In preparing the financial information in thisdocument, Premier Farnell has taken the following exemptions: a. Business combinations Business combinations prior to the transition date (2 February 2004) have notbeen restated on to an IFRS basis. As a result, in the transition balancesheet, goodwill arising from past business combinations remains as stated underUK GAAP (‚£45.9 million). b. Employee benefits All cumulative actuarial gains and losses relating to employee benefit schemeshave been recognised in equity at the date of transition to IFRS. c. Cumulative translation differences IFRS requires amounts taken to reserves on the retranslation of foreignsubsidiaries to be recorded in a separate translation reserve. The Group hastaken the option to assume that cumulative translation differences are set tozero at the transition date. On the future disposal of a business, thecumulative amount of exchange differences recognised for that business sincethe transition date will be transferred to the income statement as part of theprofit or loss on disposal. d. Financial Instruments As permitted, the implementation of IAS 32, Financial Instruments: Disclosureand Presentation, and IAS 39, Financial Instruments: Recognition andMeasurement, will be first applied to the financial year ending 29 January2006. As a result, financial instruments will continue to be accounted andpresented in accordance with UK GAAP for the year ended 30 January 2005.The main impact of this exemption is that the Company's preference shares willcontinue to be classified as shareholders' funds during the year ended 30January 2005. However, for the year ending 29 January 2006, preference shareswill be split in to a debt and equity component in accordance with IAS 39, andthe preference dividend reclassified as a finance cost. Further details aregiven below.Share-based paymentsIn order to maintain consistency across reporting periods, a full retrospectiveapproach has been followed on all awards granted but not vested at the date oftransition. The Group has chosen not to adopt the exemption to apply IFRS 2,Share-Based Payment, only to awards made after 7 November 2002.4. Presentation of Financial InformationThe primary statements within the financial information contained in thisdocument have been presented in accordance with IAS 1, Presentation ofFinancial Statements. However, this format and presentation may requiremodification as practice develops and in the event of further guidance beingissued.5. SegmentationIAS 14, Segment Reporting, does not change the Group's reportable segments fromthose reported under UK GAAP. The Group's existing business segments under UKGAAP will be the primary reporting segments under IAS 14. The Group's existinggeographical segments under UK GAAP will be the secondary reporting segmentsunder IAS 14. IAS 14 requires additional disclosures to be made for the primaryreporting segments compared to UK GAAP.EXPLANATION OF IFRS ADJUSTMENTSThe following paragraphs explain the key adjustments made to the financialresults for the year ended 30 January 2005, in order to reflect IFRS.1. Intangible assetsa) Goodwill amortisationUK GAAP requires goodwill to be amortised over its estimated useful life, whichPremier Farnell had determined to be 20 years in respect of the two businessacquisitions where goodwill has been capitalised. Under IFRS goodwill isconsidered to have an indefinite life and so is not amortised. Instead it issubject to an annual test for impairment. Thus, goodwill amortisation for theyear ended 30 January 2005 of ‚£2.7 million has been reversed. The annualimpairment test under IFRS during the year ended 30 January 2005 did not resultin any reduction in the carrying value of goodwill.b) Computer softwareUnder UK GAAP, all capitalised computer software is included within tangiblefixed assets as plant and equipment. Under IFRS, only computer software that isintegral to a related item of hardware should be included as plant andequipment. All other computer software should be recorded as an intangibleasset.Accordingly, a reclassification of the net book amount of capitalised computersoftware of ‚£34.4 million has been made in the transition balance sheet and ‚£28.8 million in the balance sheet as at 30 January 2005 between property, plantand equipment and intangible assets. There is no profit and loss account impactas a result of this reclassification since, under both UK GAAP and IFRS,computer software is written down over its estimated useful life.2. Share-based paymentsThe Group operates three share-based incentive schemes: share options, along-term incentive plan (LTIP) and a save as you earn (SAYE) scheme.Under UK GAAP, for accounting periods beginning before 1 January 2005 companieswere required to recognise an expense based on the intrinsic value of theshare-based award, being the difference between the exercise price and the fairvalue of the instrument at the date of the award (typically the market price),adjusted to reflect expected and actual levels of vesting.All the Group's share options have an exercise price equivalent to the fairvalue at the date of award and therefore, prior to the year ending 29 January2006, there was no requirement to recognise any expense under UK GAAP. SAYEschemes were specifically exempt from such a charge under UK GAAP foraccounting periods beginning before 1 January 2005. In relation to the Group'sLTIP, under UK GAAP for accounting periods beginning before 1 January 2005, anexpense is recognised over the vesting period based on the market value at thedate of grant to the extent that shares are expected to vest. Consequently, theonly charge arising for the Group under UK GAAP in the year ended 30 January2005 was in respect of the LTIP.Under IFRS 2, Share-Based Payment, an expense is recognised in the profit andloss account for all share-based payments, including options and SAYE schemes,over the vesting period. The expense is based on valuations arrived at usingoption pricing models. For the Group's share option scheme, as the performanceconditions are based on growth in earnings per share, which under IFRS is a"non-market based" measure, the expense is adjusted to reflect expected andactual levels of vesting. For the Group's LTIP, as the performance conditionsare based on share price performance relative to the FTSE mid-250 Index, whichunder IFRS is a "market based" measure, the expense is not adjusted other thanfor forfeitures. For the SAYE scheme the expense is only reduced to reflectforfeitures.The IFRS expense is based on the fair value of the award at the date of grantusing the following option pricing models selected as the most appropriate forthe type of scheme concerned, these models having being endorsed by the Group'sactuary:SCHEME PRICING MODEL Share options Binomial lattice which enables the modelling of early exercise behaviour LTIP Monte Carlo which involves simulations of future share price movements for the company and its comparator group SAYE Black-Scholes as no performance conditions are attached to the SAYE scheme The transitional rules of IFRS 1 permits companies to ignore awards made before7 November 2002. However, the Group has chosen not to adopt this exemption.Instead, in order to maintain consistency across reporting periods, a fullretrospective approach has been followed on all awards granted but not fullyvested at the date of transition.The operating expense arising from the adoption of IFRS 2 for the year ended30 January 2005 is ‚£2.8 million compared to a UK GAAP expense of ‚£0.4 million.The charge is eliminated in retained earnings, as for UK GAAP, and thus thereis no balance sheet impact other than the associated deferred tax (see point 4below). The ongoing annual operating expense under IFRS is expected to be inthe region of ‚£3.0 million, although the actual charge each year will beinfluenced by the likelihood of performance conditions being met in respect ofthe Group's share option scheme awards.3. PensionsUnder UK GAAP, Premier Farnell accounted for pensions in accordance with SSAP24. This standard adopted a profit and loss account driven approach whichspreads the cost of providing benefits over the estimated average service livesof employees. This results in a stable, regular cost with the smoothing ofassumptions and asset values. The SSAP 24 discount rate is based on thelong-term estimate of the scheme's investment return. Typically, under SSAP 24,pension costs are reviewed triennially.Under UK GAAP, the Group also provided the required disclosures in accordancewith FRS 17 which detail the pension fund surpluses and deficits and the assetsand liabilities based on the valuation methodologies of that standard. FRS 17is fundamentally different to SSAP 24 and adopts a balance sheet drivenapproach with market based measures and thus there is no smoothing ofassumptions. The discount rate under FRS 17 is based on the market yield of ahigh quality corporate bond at the valuation date. Valuations are updatedannually.IAS 19 adopts a similar valuation approach to FRS 17. In addition, PremierFarnell has chosen to adopt the amendment to IAS 19, Employee Benefits -Actuarial Gains and Losses, Group Plans and Disclosures, from the transitiondate which allows actuarial gains and losses to be accounted for through theStatement of Recognised Income and Expense, similar to FRS 17. This amendmentis awaiting endorsement by the European Commission.Set out below is a comparison of the Group's defined benefit pension schemesunder SSAP 24, FRS 17 and IAS 19, on the profit and loss account for the yearended 30 January 2005 and the balance sheet as at 30 January 2005. Profit and loss account Balance sheet 30 January 2005 SSAP 24 FRS 17 IAS 19 SSAP 24 FRS 17 IAS 19 ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m US scheme 5.0 3.4 3.3 81.9 49.1 44.3 UK scheme (0.7) (0.4) (0.3) - (18.2) (20.9) Other schemes - (0.3) (0.3) (1.0) (1.7) (1.7) ________ ________ ________ ________ ________ ________ Pre-tax profit/net 4.3 2.7 2.7 80.9 29.2 21.7 surplus ________ ________ ________ Net deferred tax (30.3) (12.7) (9.8) liability ________ ________ ________ Net assets impact 50.6 16.5 11.9 ________ ________ ________ IAS 19 compared to SSAP 24Under SSAP 24, there was a credit in the profit and loss account amounting to ‚£4.3 million. Under IAS 19, this credit is reduced to ‚£2.7 million for the yearended 30 January 2005 reducing operating profit by ‚£1.6 million. IAS 19 doesnot require the interest cost and expected return on assets to be presentedseparately as a finance cost/(income). Consequently, the net profit and lossaccount impact has been included in arriving at operating profit, in line withSSAP 24.The impact of IAS 19 on the UK GAAP (SSAP 24) balance sheet at 30 January 2005is to reduce net assets by ‚£38.7 million, including the impact of deferred tax.The impact excluding deferred tax is ‚£59.2 million, which comprises ‚£20.9million as a result of including the UK pension scheme liability on the balancesheet which was not required under SSAP 24, ‚£37.6 million relating to the USscheme, the net surplus having reduced from ‚£81.9 million under SSAP 24 to ‚£44.3 million under IAS 19, and ‚£0.7 million in respect of other schemes.The net pension surplus of the Group's defined benefit pension schemes underIFRS at 30 January 2005 was ‚£21.7 million comprising the surplus in the USscheme of ‚£44.3 million and the deficit in the UK and other schemes of ‚£22.6million. Schemes in surplus and schemes in deficit require separate disclosurein the IFRS balance sheet.IAS 19 compared to FRS 17IAS 19 has some minor differences from FRS 17 which do not result in asignificant difference in the profit and loss account impact of these twostandards. In addition, IAS 19 is not specific in a number of areas and istherefore open to interpretation. In particular: * IAS 19 is not specific with respect to the inclusion of scheme expenses when calculating scheme liabilities. Premier Farnell has included an allowance for the cost of future scheme expenses in calculating scheme liabilities. Such an allowance was not required under FRS 17. * IAS 19 is silent on the treatment of non-service related benefits, for example death in service lump sums. The Group has adopted the treatment of apportioning between the past service liability and the service cost. This is slightly different to the method under FRS 17. The impact of these two areas of interpretation at the transition date and at30 January 2005 was to increase pension scheme liabilities, compared to thatdisclosed under FRS 17, by ‚£7.4 million. The associated impact on the profitand loss account compared to FRS 17 is not significant.4. TaxationUnder UK GAAP deferred taxation is recognised on the basis of timingdifferences, being the difference between accounting profit and taxable profit.IFRS requires deferred taxation to be based on temporary differences, being thedifference between the carrying value of an asset or liability and its taxbase. As a result, the Group has provided an additional ‚£1.4 million ofdeferred tax liabilities in the transition balance sheet that was not requiredunder UK GAAP relating to the revaluation of properties.Where required, deferred tax has been provided on the IFRS adjustments. Withrespect to share-based payments, the company receives a tax deduction in itsmajor operating territories at the time of exercise of the share-basedinstrument based on the gains made by employees. IFRS requires a deferred taxasset to be established based on the potential future tax deduction availableto the company estimated using the information available at the balance sheetdate. The reduction in the deferred tax asset from the transition balance sheetdate to the balance sheet as at 30 January 2005 arises primarily due to thelower company share price at 30 January 2005 and has resulted in a deferred taxcharge under IFRS of ‚£0.7 million during the year ended 30 January 2005.Under IFRS, deferred tax assets and deferred tax liabilities are, in certaincircumstances, disclosed separately on the balance sheet as non-current assetsand non-current liabilities, respectively.5. Provisions reclassificationIFRS requires the element of provisions which are expected to be paid withinone year of the balance sheet date to be presented on the balance sheet withincurrent liabilities as short term provisions. The reclassification for eachbalance sheet presented is ‚£0.1 million.6. Ordinary dividendsUnder UK GAAP, ordinary dividends are accounted for in the period to which theyrelate even if the approval of that dividend takes place after the balancesheet date. Under IFRS, proposed ordinary dividends do not meet the definitionof a liability until such time as they have been approved. In the case of afinal ordinary dividend this approval is by shareholders at the Annual GeneralMeeting. The approval of an interim dividend takes place at a meeting of theBoard of Directors.Under IFRS, ordinary dividends are no longer disclosed on the face of theprofit and loss account but shown as a movement in equity.The final dividend for the year ended 1 February 2004 of ‚£18.1 million has beenreversed in the transition balance sheet and charged to equity in the quarterended 1 August 2004. The interim dividend for the six months ended 1 August2004 of ‚£14.5 million has been reversed and charged to equity in the quarterended 31 October 2004. The final dividend for the year ended 30 January 2005has been reversed and will be charged to equity once approved at the AnnualGeneral Meeting on 14 June 2005.7. Cash flow statementsThe transition from UK GAAP to IFRS does not change the reported cash flows ofthe Group.An IFRS cashflow statement is similar to UK GAAP but presents various cashflows in different categories and in a different order from UK GAAP. All of theIFRS adjustments net out within cash generated from operations except for theintangible assets reclassification where the cash used to purchase computersoftware has been reclassified from purchase of plant and equipment to purchaseof intangible assets.8. Financial instrumentsAs permitted, the implementation of IAS 32, Financial Instruments: Disclosureand Presentation, and IAS 39, Financial Instruments: Recognition andMeasurement, will be first applied to the financial year ending 29 January2006. As a result, financial instruments will continue to be accounted andpresented in accordance with UK GAAP for the year ended 30 January 2005.Accordingly, there will be an adjustment as at 31 January 2005 to reflect thetransition from UK GAAP to IFRS. However, a proforma consolidated profit andloss account for the financial year ended 30 January 2005 and a proformabalance sheet as at 30 January 2005 have been included in this report toillustrate the impact of IFRS on the Group's preference shares.Under UK GAAP, convertible, redeemable preference shares are included withinshareholders' funds and the preference dividend is shown as a deduction fromprofit after tax. Under IAS 39, such preference shares are required to be splitinto debt and equity components with the preference dividend being reclassifiedas a finance cost. The fair value of the debt element is established on issueof the shares, based on the discounted cashflows of the instrument to the dateof maturity and is then increased each year on a straight line basis throughthe profit and loss account in order to arrive at the redemption amount payableon maturity of the shares. The equity component is ‚£19.9 million and will onlychange as and when shares are redeemed.At 31 January 2005, the debt element of the preference shares was ‚£106.3million. The proforma full year charge to finance costs of ‚£8.0 millioncomprises the preference dividend reclassification of ‚£6.6 million and theannual amortisation charge relating to the implied redemption premium of ‚£1.4million.The impact of IFRS on the Group's other financial instruments, namely itsforeign currency forward contracts, is not significant.CONSOLIDATED PROFIT AND LOSS ACCOUNT FINANCIAL YEAR 2004/5 UNAUDITED UK GAAP IFRS ADJUSTMENTS IFRS Pro Pro forma forma (IFRS Share-based IAS 32/ IFRS P& format) 39 L Goodwill payments Pensions Pref Account shares ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m Revenue 776.7 - - - 776.7 - 776.7 Cost of sales (462.2) - - - (462.2) - (462.2) Gross profit 314.5 - - - 314.5 - 314.5 Total operating (240.7) 2.7 (2.4) (1.6) (242.0) - (242.0)expenses Operating profit 73.8 2.7 (2.4) (1.6) 72.5 - 72.5 Net finance cost (13.5) - - - (13.5) (8.0) (21.5) Profit before 60.3 2.7 (2.4) (1.6) 59.0 (8.0) 51.0taxation Taxation (13.8) - (0.7) 0.5 (14.0) 0.4 (13.6) Profit after 46.5 2.7 (3.1) (1.1) 45.0 (7.6) 37.4taxation Preference (6.6) - - - (6.6) 6.6 -dividends Profit 39.9 2.7 (3.1) (1.1) 38.4 (1.0) 37.4attributable to ordinary shareholders Earnings per share Basic 11.0p 0.8p (0.9)p (0.3)p 10.6p (0.3)p 10.3p Diluted 11.0p 0.8p (0.9)p (0.3)p 10.6p (0.3)p 10.3pCONSOLIDATED PROFIT AND LOSS ACCOUNT FIRST QUARTER 2004/5 UNAUDITED UK GAAP IFRS ADJUSTMENTS IFRS (IFRS Share-based format) Goodwill payments Pensions ‚£m ‚£m ‚£m ‚£m ‚£m Revenue 200.3 - - - 200.3 Cost of sales (119.9) - - - (119.9) Gross profit 80.4 - - - 80.4 Total operating (61.4) 0.7 (0.5) (0.4) (61.6)expenses Operating profit 19.0 0.7 (0.5) (0.4) 18.8 Net finance cost (3.4) - - - (3.4) Profit before taxation 15.6 0.7 (0.5) (0.4) 15.4 Taxation (4.9) - - 0.1 (4.8) Profit after taxation 10.7 0.7 (0.5) (0.3) 10.6 Preference dividends (1.7) - - - (1.7) Profit attributable to 9.0 0.7 (0.5) (0.3) 8.9ordinary shareholders Earnings per share Basic 2.5p 0.2p (0.1)p (0.1)p 2.5p Diluted 2.5p 0.2p (0.1)p (0.1)p 2.5pCONSOLIDATED PROFIT AND LOSS ACCOUNT SECOND QUARTER 2004/5 UNAUDITED UK GAAP IFRS ADJUSTMENTS IFRS (IFRS Share-based format) Goodwill payments Pensions ‚£m ‚£m ‚£m ‚£m ‚£m Revenue 194.7 - - - 194.7 Cost of sales (116.0) - - - (116.0) Gross profit 78.7 - - - 78.7 Total operating (60.0) 0.7 (0.5) (0.4) (60.2)expenses Operating profit 18.7 0.7 (0.5) (0.4) 18.5 Net finance cost (3.3) - - - (3.3) Profit before taxation 15.4 0.7 (0.5) (0.4) 15.2 Taxation (4.6) - - 0.1 (4.5) Profit after taxation 10.8 0.7 (0.5) (0.3) 10.7 Preference dividends (1.6) - - - (1.6) Profit attributable to 9.2 0.7 (0.5) (0.3) 9.1ordinary shareholders Earnings per share Basic 2.5p 0.2p (0.1)p (0.1)p 2.5p Diluted 2.5p 0.2p (0.1)p (0.1)p 2.5pCONSOLIDATED PROFIT AND LOSS ACCOUNT THIRD QUARTER 2004/5 UNAUDITED UK GAAP IFRS ADJUSTMENTS IFRS (IFRS Share-based format) Goodwill payments Pensions ‚£m ‚£m ‚£m ‚£m ‚£m Revenue 196.7 - - - 196.7 Cost of sales (116.6) - - - (116.6) Gross profit 80.1 - - - 80.1 Total operating (61.2) 0.7 (0.7) (0.4) (61.6)expenses Operating profit 18.9 0.7 (0.7) (0.4) 18.5 Net finance cost (3.4) - - - (3.4) Profit before taxation 15.5 0.7 (0.7) (0.4) 15.1 Taxation (4.0) - - 0.2 (3.8) Profit after taxation 11.5 0.7 (0.7) (0.2) 11.3 Preference dividends (1.6) - - - (1.6) Profit attributable to 9.9 0.7 (0.7) (0.2) 9.7ordinary shareholders Earnings per share Basic 2.7p 0.2p (0.2)p (0.0)p 2.7p Diluted 2.7p 0.2p (0.2)p (0.0)p 2.7pCONSOLIDATED PROFIT AND LOSS ACCOUNT FOURTH QUARTER 2004/5 UNAUDITED UK GAAP IFRS ADJUSTMENTS IFRS (IFRS Share-based format) Goodwill payments Pensions ‚£m ‚£m ‚£m ‚£m ‚£m Revenue 185.0 - - - 185.0 Cost of sales (109.7) - - - (109.7) Gross profit 75.3 - - - 75.3 Total operating (58.1) 0.6 (0.7) (0.4) (58.6)expenses Operating profit 17.2 0.6 (0.7) (0.4) 16.7 Net finance cost (3.4) - - - (3.4) Profit before taxation 13.8 0.6 (0.7) (0.4) 13.3 Taxation (0.3) - (0.7) 0.1 (0.9) Profit after taxation 13.5 0.6 (1.4) (0.3) 12.4 Preference dividends (1.7) - - - (1.7) Profit attributable to 11.8 0.6 (1.4) (0.3) 10.7ordinary shareholders Earnings per share Basic 3.3p 0.2p (0.4)p (0.1)p 3.0p Diluted 3.3p 0.2p (0.4)p (0.1)p 3.0pSTATEMENTS OF RECOGNISED INCOME AND EXPENSE FINANCIAL YEAR 2004/5 UNAUDITED First Quarter Second Quarter UK IFRS IFRS UK IFRS IFRS GAAP adjustments GAAP adjustments ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m Profit for the period 10.7 (0.1) 10.6 10.8 (0.1) 10.7 Foreign exchange translation (1.4) (0.4) (1.8) (0.7) 0.5 (0.2)differences Actuarial losses on defined - - - - - -benefit pension schemes Deferred tax on actuarial - - - - - -losses on defined benefit pension schemes Net gains and losses not (1.4) (0.4) (1.8) (0.7) 0.5 (0.2)recognised in the profit and loss account Total recognised income and 9.3 (0.5) 8.8 10.1 0.4 10.5expense for the period Third Quarter Fourth Quarter UK IFRS IFRS UK IFRS IFRS GAAP adjustments GAAP adjustments ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m Profit for the period 11.5 (0.2) 11.3 13.5 (1.1) 12.4 Foreign exchange translation 3.4 (0.1) 3.3 0.4 0.5 0.9differences Actuarial losses on defined - - - - (15.0) (15.0)benefit pension schemes Deferred tax on actuarial - - - - 5.2 5.2losses on defined benefit pension schemes Net gains and losses not 3.4 (0.1) 3.3 0.4 (9.3) (8.9)recognised in the profit and loss account Total recognised income and 14.9 (0.3) 14.6 13.9 (10.4) 3.5expense for the period Full Year IFRS UK adjustments IFRS GAAP ‚£m ‚£m ‚£m Profit for the period 46.5 (1.5) 45.0 Foreign exchange translation 1.7 0.5 2.2 differences Actuarial losses on defined - (15.0) (15.0) benefit pension schemes Deferred tax on actuarial - 5.2 5.2 losses on defined benefit pension schemes Net gains and losses not 1.7 (9.3) (7.6) recognised in the profit and loss account Total recognised income and 48.2 (10.8) 37.4 expense for the period SEGMENTAL OPERATING PROFIT FINANCIAL YEAR 2004/5 UNAUDITED PRIMARY REPORTING FORMAT - BUSINESS SEGMENTS First Quarter Second Quarter UK IFRS IFRS UK IFRS IFRS GAAP adjustments GAAP adjustments ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m Marketing and Distribution Division Americas 7.3 (0.5) 6.8 6.8 (0.5) 6.3 Europe and Asia Pacific before amortisation of 11.7 - 11.7 11.4 (0.1) 11.3goodwill amortisation of goodwill (0.7) 0.7 - (0.7) 0.7 - 11.0 0.7 11.7 10.7 0.6 11.3 Total Marketing and 18.3 0.2 18.5 17.5 0.1 17.6Distribution Division Industrial Products Division before amortisation of 3.0 (0.2) 2.8 3.5 (0.1) 3.4goodwill amortisation of goodwill - - - - - - 3.0 (0.2) 2.8 3.5 (0.1) 3.4 Head Office costs (2.3) (0.2) (2.5) (2.3) (0.2) (2.5) 19.0 (0.2) 18.8 18.7 (0.2) 18.5 Third Quarter Fourth Quarter UK IFRS IFRS UK IFRS IFRS GAAP adjustments GAAP adjustments ‚£m ‚£m ‚£m ‚£m ‚£m ‚£m Marketing and Distribution DivisionRelated Shares:
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