28th Jun 2005 09:30
Computacenter PLC28 June 2005 Restatement of 2004 financial information under IFRS Computacenter plc, the European IT infrastructure services provider has todaypublished excerpts of its financial statements for 2004, restated in line withInternational Financial Reporting Standards ('IFRS'). This report explains the impact of the adoption of IFRS on the Group's results,and quantifies the expected impact on 2004 financial information, including the1 January 2004 balance sheet, previously prepared under UK GAAP. The Group's first financial result under IFRS will be its 2005 interims, whichare due to be released on 8th September 2005. The full report, which contains detailed explanations of the IFRS and UK GAAPnumbers, is also available on the Computacenter website http://www.computacenter.com.----------------------------- For further information, please contact: Tony Conophy, Group Finance Director 01707 631515Keith Mortimer, Group Financial Controller 01707 639888 Restated financial information under International Financial Reporting Standards 28 June 2005 Contents Summary information-------------------Introduction and summary of IFRS impact Basis of preparation Restated consolidated income statements Restated balance sheets Explanatory notes on the impact of IFRS Detailed information--------------------Detailed restated consolidated income statements Detailed restated balance sheets Principal accounting policies IntroductionComputacenter is required to report its consolidated financial statements underInternational Financial Reporting Standards (IFRS), as adopted by the EuropeanUnion for all accounting periods beginning on or after 1 January 2005.Previously the Group has applied UK Generally Accepted Accounting Principles (UKGAAP). The first financial result under IFRS will be the 2005 interim report, to bereleased on 8th September. This document explains the impact of the adoption ofIFRS on the Group's results, and quantifies the expected impact on 2004financial information, including the 1 January 2004 balance sheet, previouslyprepared under UK GAAP. Summary of IFRS impactThe impact on the profit for the year ended 31 December 2004, together with theimpact split between the half-year and second half results is detailed in thetable below: ________________________________________ _____________ Year ended 31 December 2004 H1 H2 2004 2004 ________________________________________ _____________ Profit before Income Discon- Profit Profit Profit tax, tax tinued for for for continuing expense operations the the the operations year year year ________________________________________ _____________ £'000 £'000 £'000 £'000 £'000 £'000________________________________________________________________________ _____________UK GAAP 67,287 (19,860) (2,642) 44,785 23,368 21,417________________________________________________________________________ _____________Reclassification Discontinued operation 1,568 (1) (1,567) - - -Adjustments1a Positive goodwill 282 - - 282 141 1411b Negative goodwill (531) - - (531) (531) -2 Share based payment (898) 222 - (676) (502) (174)3 Employee benefits 35 - - 35 (2,519) 2,5544 Accounting for joint venture 185 - 286 471 - 471________________________________________________________________________ ______________Total IFRS adjustments (927) 222 286 (419) (3,411) 2,992________________________________________________________________________ ______________IFRS 67,928 (19,639) (3,923) 44,366 19,957 24,409________________________________________________________________________ ______________ The impact on total equity (and net assets) at 31 December 2004, 30 June 2004and 31 December 2003 is shown in the table below: 31 December 2004 30 June 2004 31 December 2003 _________________________________________________ Total equity Total equity Total equity £'000 £'000 £'000_________________________________________________________________________UK GAAP (315,138) (300,287) (282,883)_________________________________________________________________________ Reclassification Discontinued operation - - -Adjustments1a Positive goodwill (282) (141) -1b Negative goodwill - - (531)2 Share based payment (461) (325) (330)3 Employee benefits 883 3,437 9184 Accounting for joint venture (471) - -5 Proposed dividend (9,785) (4,316) (9,236)_________________________________________________________________________Total IFRS adjustments (10,116) (1,345) (9,179)_________________________________________________________________________IFRS (325,254) (301,632) (292,062)_________________________________________________________________________ Detailed reconciliation information for the relevant 2004 primary statements isprovided later in this document. Summary of IFRS impact (continued) The introduction of IFRS has no impact on the underlying cash flows of thebusiness. From 1 January 2005, the application of IAS 32 'Financial instruments:disclosure and presentation' and IAS 39 'Financial instruments: recognition andmeasurement' will affect the financial statements of the Group, the mostmaterial changes on adoption, which are explained further on page 11, will bedue to non-recourse financing and hedge accounting on foreign currency forwardcontracts. Basis of preparation Statement of complianceThese extracts of the unaudited financial statements of Computacenter plc havebeen prepared, for the first time, in accordance with IFRS and are covered byIFRS 1 'First-time adoption of IFRS'. They have been prepared in accordance withthose IFRS standards issued and effective as at the time of preparing thesestatements, and have been applied retrospectively except where certainexceptions apply. As listed companies are adopting IFRS for the first time, there is limitedestablished practice upon which to draw in matters of interpretation andapplication. Furthermore, it is possible that new standards, revisions toexisting standards and new interpretations may be issued which affect the Group.Consequently it is not possible at this stage to definitively quantify theimpact of the adoption of IFRS, and therefore the comparative information in the2005 interim and annual reports may differ from that presented in this document. IFRS 1 'First-time adoption of international financial reporting standards'The Group has adopted IFRS 1 'First-time adoption of international financialreporting standards' and has applied the following optional IFRS 1 exemptions: IFRS 3 'Business combinations' Business combinations prior to 1 January 2004 have not been restated to comply with IFRS 3. IAS 21 - 'The effects of changes in foreign exchange rates' Under IAS 21, exchange differences arising on the retranslation are taken directly to a separate component of equity. The Group has elected, under the provisions of IFRS 1, to set the historic translation differences on foreign subsidiaries to zero. IFRS 2 'Share based payments' IFRS 2 is mandatory for accounting periods beginning on or after 1 January 2005. The Group has taken advantage of the transitional provisions of IFRS 2 in respect of equity-settled awards and has applied IFRS 2 only to equity-settled awards granted after 7 November 2002 that had not vested on or before 1 January 2005. IAS 32 'Financial instruments : disclosure and presentation' and IAS 39 'Financial instruments recognition and measurement' The Group has taken advantage of the transitional provisions of IAS 32 and IAS 39 and has not adopted these two standards early. They will be adopted from 1 January 2005. The comparative information for 2004 has not been restated from UK GAAP to IFRS. More details are provided in the "Explanatory notes on the impact of IFRS" and "Principal accounting policies" sections. Consolidated income statement, prepared under IFRS (unaudited) (i) Year ended 31 December 2004 UK GAAP profit and Reclass Other loss discontinued IFRS IFRS income account operation adjs statement £'000 £'000 £'000 £'000Continuing operationsRevenue 2,455,752 (45,162) - 2,410,590 Cost of sales (2,120,351) 39,959 - (2,080,392) ___________ ___________ ________ ____________Gross profit 335,401 (5,203) - 330,198 Distribution costs (20,759) 133 - (20,626)Administrative expenses (248,899) 6,617 (1,112) (243,394) ___________ ___________ ________ ____________Profit from continuing operations before tax and finance costs 65,743 1,547 (1,112) 66,178 Finance costs (3,573) 36 - (3,537)Finance income 5,262 (15) - 5,247Share of loss of joint venture (411) - 185 (226)Share of profit of associate 266 - - 266 ___________ ___________ ________ ____________Profit before tax 67,287 1,568 (927) 67,928 Income tax expense (19,860) (1) 222 (19,639) ___________ ___________ ________ ____________Profit for the year from continuing operations 47,427 1,567 (705) 48,289 Discontinued operationLoss for the year from discontinued operation (2,356) (1,567) - (3,923)Net loss on investment in joint venture (286) - 286 - ___________ ___________ ________ ____________Profit for the year 44,785 - (419) 44,366 =========== =========== ======== ============Attributable to:Equity holders of the parent 44,854 - (419) 44,435Minority interests (69) - - (69) ___________ ___________ ________ ____________ 44,785 - (419) 44,366 =========== =========== ======== ============Earnings per share- basic for profit for the year 24.1p -0.3p 23.8p - basic for profit from continuing operations 25.5p 0.4p 25.9p- diluted for profit for the year 23.7p -0.2p 23.5p- diluted for profit from continuing operations 25.1p 0.5p 25.6p Consolidated income statement, prepared under IFRS (unaudited) (ii) Period ended 30 June 2004 UK GAAP profit and Reclass Other IFRS loss discontinued IFRS income account operation adjs statement £'000 £'000 £'000 £'000 Continuing operationsRevenue 1,254,918 (25,977) - 1,228,941 Cost of sales (1,083,683) 22,862 - (1,060,821) ___________ ___________ ________ ____________Gross profit 171,235 (3,115) - 168,120 Distribution costs (9,953) 85 - (9,868)Administrative expenses (128,247) 3,313 (3,459) (128,393) ___________ ___________ ________ ____________Profit from continuing operations before tax and finance costs 33,035 283 (3,459) 29,859 Finance costs (1,743) 21 - (1,722)Finance income 1,996 (1) - 1,995Share of loss of joint venture (205) - - (205)Share of profit of associate 135 - - 135 ___________ ___________ ________ ____________Profit before tax 33,218 303 (3,459) 30,062 Income tax expense (9,850) 1 48 (9,801) ___________ ___________ ________ ____________ Profit for the year from continuing operations 23,368 304 (3,411) 20,261 Discontinued operationLoss for the year from discontinued operation - (304) - (304)Net loss on investment in joint venture - - - - ___________ ___________ ________ ____________Profit for the year 23,368 - (3,411) 19,957 =========== =========== ======== ============Attributable to:Equity holders of the parent 23,338 - (3,411) 19,927Minority interests 30 - - 30 ___________ ___________ ________ ____________ 23,368 - (3,411) 19,957 =========== =========== ======== ============ Earnings per share- basic for profit for the year 12.6p -1.9p 10.7p- basic for profit from continuing operations 12.7p -1.8p 10.9p- diluted for profit for the year 12.3p -1.8p 10.5p- diluted for profit from continuing operations 12.5p -1.8p 10.7p Consolidated balance sheet, prepared under IFRS (unaudited) (i) As at 31 December 2004 UK GAAP Reclass Other IFRS balance discontinued IFRS balance sheet operation adjs sheet £'000 £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and 93,430 (349) (3,167) 89,914equipmentIntangible assets 4,474 - 3,449 7,923Investment in a joint 5,648 - (5,648) -ventureInvestment in an associate 373 - - 373Deferred income tax assets 1,433 - 53 1,486 _______________________________________________ 105,358 (349) (5,313) 99,696 _______________________________________________Current assetsInventories 120,087 (1,173) - 118,914Trade and other receivables :gross 444,512 (6,060) - 438,452Less : non-returnable proceeds (39,043) - - (39,043) _______________________________________________Trade and other receivables 405,469 (6,060) - 399,409Prepayments 55,797 (662) - 55,135Cash and short-term deposits 139,182 (964) - 138,218 _______________________________________________ 720,535 (8,859) - 711,676Non-current assets classified as held forsale - 9,208 - 9,208 _______________________________________________ TOTAL ASSETS 825,893 - (5,313) 820,580 =============================================== EQUITY AND LIABILITIESEquity attributable to equity holdersof the parentIssued capital (9,489) - - (9,489)Share premium (73,920) - - (73,920)Capital redemption reserve (100) - - (100)Investment in own shares 2,503 - - 2,503Other reserves - - 904 904 Amounts recognised directly in equityrelating to non-currentassets held for sale - - 7 7Retained earnings (234,086) - (11,027) (245,113) _______________________________________________ (315,092) - (10,116) (325,208)Minority interest (46) - - (46) _______________________________________________TOTAL EQUITY (315,138) - (10,116) (325,254) _______________________________________________ Non-current liabilitiesInterest-bearing loans and borrowings (429) - - (429)Provisions (15,233) - - (15,233)Other non-current liabilities (2,691) - - (2,691)Deferred income tax liabilities (1,455) - - (1,455) ______________________________________________ (19,808) - - (19,808) ______________________________________________Current liabilitiesTrade and other payables (311,344) 5,306 (926) (306,964)Deferred income (90,665) 1,582 - (89,083)Interest-bearing loans and borrowings (58,706) - - (58,706)Income tax payable (11,927) - 408 (11,519)Dividend payable (9,828) - 9,828 -Provision for joint venture deficit (6,119) - 6,119 -Provisions (2,358) - - (2,358) ______________________________________________ (490,947) 6,888 15,429 (468,630)Liabilities directly associated withnon-current assetsclassified as held forsale - (6,888) - (6,888) ______________________________________________TOTAL LIABILITIES (510,755) - 15,429 (495,325) ______________________________________________TOTAL EQUITY AND LIABILITIES (825,893) - 5,313 (820,580) ============================================== Consolidated balance sheet, prepared under IFRS (unaudited) (ii) As at 30 June 2004 UK GAAP Reclass Other IFRS balance discontinued IFRS balance sheet operation adjs sheet £'000 £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 94,925 (393) (2,077) 92,455Intangible assets 4,646 - 2,218 6,864Investment in a joint venture 7,450 - (7,430) 20Investment in an associate 649 - - 649Listed investment 3,047 - - 3,047Deferred income tax assets 3,086 - 21 3,107 ________________________________________________ 113,803 (393) (7,268) 106,142 ________________________________________________ Current assetsInventories 121,005 (1,095) - 119,910Trade and other receivables :gross 422,144 (5,540) - 416,604Less : non-returnable proceeds (55,643) - - (55,643) ________________________________________________Trade and other receivables 366,501 (5,540) - 360,961Prepayments 60,499 (451) - 60,048Cash and short-term deposits 101,032 (1,705) - 99,327 ________________________________________________ 649,037 (8,791) - 640,246Non-current assets classified as held for sale - 9,184 - 9,184 ________________________________________________ TOTAL ASSETS 762,840 - (7,268) 755,572 ================================================ EQUITY AND LIABILITIESEquity attributable toequity holders of the parentIssued capital (9,447) - - (9,447)Share premium (71,778) - - (71,778)Capital redemption reserve (100) - - (100)Investment in own shares 2,503 - - 2,503 Amounts recognised directly in equity relating tonon-current assets held forsale - - 85 85Other reserves - - 1,860 1,860Retained earnings (221,382) - (3,290) (224,672) ________________________________________________ (300,204) - (1,345) (301,549)Minority interest (83) - - (83) ________________________________________________ TOTAL EQUITY (300,287) - (1,345) (301,632) ________________________________________________Non-current liabilitiesInterest-bearing loans and borrowings (326) - - (326)Provisions (14,628) - - (14,628)Other non-current liabilities (3,221) - - (3,221)Deferred income tax liabilities (1,667) - - (1,667) ________________________________________________ (19,842) - - (19,842) ________________________________________________Current liabilitiesTrade and other payables (302,108) 7,342 (3,422) (298,188)Deferred income (79,834) - - (79,834)Interest-bearing loans and borrowings (38,279) - - (38,279)Income tax payable (9,092) - 304 (8,788)Dividend payable (4,301) - 4,301 -Provision for joint venture deficit (7,430) - 7,430 -Provisions (1,667) - - (1,667) ________________________________________________ (442,711) 7,342 8,613 (426,756)Liabilities directly associated with non-currentassets classified as heldfor sale - (7,342) - (7,342) ________________________________________________ TOTAL LIABILITIES (462,553) - 8,613 (453,940) ________________________________________________ TOTAL EQUITY AND LIABILITIES (762,840) - 7,268 (755,572) ================================================ Consolidated balance sheet, prepared under IFRS (unaudited) (iii) As at 31 December 2003 UK GAAP Reclass Other IFRS balance discontinued IFRS balance sheet operation adjs sheet £'000 £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 100,549 (456) (2,251) 97,842Intangible assets 4,223 - 2,782 7,005Investment in a joint venture 7,450 - (7,224) 226Investment in an associate 539 - - 539Listed investment 3,047 - - 3,047Deferred income tax assets 3,315 - 191 3,506 ________________________________________________ 119,123 (456) (6,502) 112,165 ________________________________________________Current assetsInventories 134,133 (1,343) - 132,790Trade and other receivables : gross 469,200 (5,635) - 463,565Less : non-returnable proceeds (78,390) - - (78,390) ________________________________________________Trade and other receivables 390,810 (5,635) - 385,175Prepayments 48,186 (440) - 47,746Cash and short-term deposits 96,997 (1,511) - 95,486 ________________________________________________ 670,126 (8,929) - 661,197Non-current assets classified as held for sale - 9,385 - 9,385 ________________________________________________TOTAL ASSETS 789,249 - (6,502) 782,747 ================================================ EQUITY AND LIABILITIESEquity attributable to equity holdersof the parentIssued capital (9,441) - - (9,441)Share premium (71,486) - - (71,486)Capital redemption reserve (100) - - (100)Investment in own shares 2,503 - - 2,503Other reserves - - - -Amounts recognised directly in equity relating tonon-current assets held forsale - - - -Retained earnings (204,244) - (9,179) (213,423) ________________________________________________ (282,768) - (9,179) (291,947)Minority interest (115) - - (115) ________________________________________________TOTAL EQUITY (282,883) - (9,179) (292,062) ________________________________________________Non-current liabilitiesInterest-bearing loans and borrowings (326) - - (326)Provisions (15,100) - - (15,100)Other non-current liabilities (13,597) - - (13,597)Deferred income tax liabilities (1,668) - - (1,668) ________________________________________________ (30,691) - - (30,691) ________________________________________________Current liabilitiesTrade and other payables (326,800) 7,136 (972) (320,636)Deferred income (78,179) - - (78,179)Interest-bearing loans and borrowings (46,746) - - (46,746)Income tax payable (5,801) - 139 (5,662)Dividend payable (9,290) - 9,290 -Provision for joint venture deficit (7,224) - 7,224 -Provisions (1,635) - - (1,635) ________________________________________________ (475,675) 7,136 15,681 (452,858)Liabilities directly associated with non-currentassets classified as held forsale - (7,136) - (7,136) ________________________________________________TOTAL LIABILITIES (506,366) - 15,681 (490,685) ________________________________________________ TOTAL EQUITY AND LIABILITIES (789,249) - 6,502 (782,747) ================================================= Explanatory notes on the impact of IFRS The notes below explain the impact that the adoption of IFRS has had on theGroup's consolidated results, which is summarised on pages 5 to 9. These notesalso support the detailed UK GAAP to IFRS reconciliations on pages 12 to 16. Inaddition to the adjustments below, details of the Group's IFRS 1 elections havebeen summarised on page 4. Discontinued operation The discontinued operation relates to the results of Computacenter Austria,which, under IFRS, is classified as held for sale as at 31 December 2004. Forcomparative purposes all figures within the 2004 results, in respect of thisoperation, have been removed from continuing operations. Under UK GAAP, therelevant amounts were disclosed under discontinued operations in the 2004year-end accounts only. Other adjustments1) IFRS 3 - Business combinations; IAS 36 - Impairment of assets; IAS 38 -Intangible assets IFRS 3 applies to accounting for business combinations forwhich the agreement date is on or after 31 March 2004. The Group has elected not to apply IFRS 3 retrospectively to businesscombinations that took place prior to 1 January 2004. As a result in the openingbalance sheet, positive goodwill arising from previous business combinationsremains (£4.8m) as stated under UK GAAP at 31 December 2003. The transitional provisions of IFRS 3 have required the Group to carry forwardthe UK GAAP net book value of positive goodwill as deemed cost under IFRS, andto eliminate the net negative goodwill brought forward under UK GAAP of £531,000with a corresponding entry in reserves at 1 January 2004. The adoption of IFRS 3 and IAS 36 has resulted in the Group ceasing annualgoodwill amortisation from 1 January 2004. As a result, the UK GAAP amortisationcharge of £282,000 and credit of £531,000, for positive and negative goodwillrespectively have been removed from the Group's 2004 IFRS profit for the year. 2) IFRS 2 - Share-based paymentIFRS 2 'Share-based payment' requires an expense to be recognised where theGroup buys goods or services in exchange for shares or rights over shares('equity-settled transactions'), or in exchange for other assets equivalent invalue to a given number of shares or rights over shares ('cash-settledtransactions'). The main impact of IFRS 2 on the Group is the expensing ofemployees' and directors' share options and other share-based incentives byusing an option-pricing model. The effect of the revised policy has decreased consolidated 2004 profit beforetax by £898,000, and half year profits by £550,000 due to an increase in theemployee benefits expense with a corresponding increase in equity which is takento retained earnings. A corresponding deferred tax movement has also beenaccounted for. 3) IAS 19 - Employee benefitsIAS 19 requires the Group to recognise in full liabilities in relation toemployee benefits. As at 1 January 2004, the Group has recognised an additional£918,000 of liabilities for holiday pay and other long-term employee benefits.The corresponding provision as at 31 December 2004 is £883,000, and as a result,there is an increase in the profit for the year of £35,000 for the year ended 31December 2004. This introduces seasonality into the Group's result, because the holidayentitlement of employees is typically higher at 30 June that at 31 December. Theadditional provision required at 30 June 2004 results in a charge to thehalf-year income statement of £2,519,000. 4) IAS 31 - Interest in joint ventureUnder UK GAAP the Group's interest in its joint venture was accounted under thegross equity method, which is not a recognised approach under IFRS. The Grouphas therefore changed its method of accounting for the joint venture to equityaccounting. During the second half of 2004 the Group's holding in its joint venture wasdiluted, and its share of the losses exceeded the Group's net investment. UnderUK GAAP the Group was required to continue recognising its share of the losseseven though this resulted in a net negative amount in the balance sheet. UnderIFRS the Group only recognises its share of the losses up until the point thatits net investment is reduced to zero. This has resulted in £185,000 of lossesand an exceptional charge of £286,000 in respect of the dilution in the Group'sholding, both of which were recognised under UK GAAP, not being recognised underIFRS. 5) IAS 10 - Events after the balance sheet dateIn accordance with IAS 10, dividends declared after the balance sheet date arenot recognised as a liability in the financial statements as there is no presentobligation at the balance sheet date, as defined by IAS 37 - Provisions,contingent liabilities and contingent assets. Accordingly, the final dividendsfor 2003 of £9,236,000 and 2004 of £9,785,000 (as recognised under previousGAAP) are de-recognised in the balance sheets for 31 December 2003 and 31December 2004. The interim dividend has also been accounted for in this manner. 6) IAS 38 - Intangible assetsComputer software that is not an integral part of the related hardware isclassified as an intangible asset under IFRS, whereas such assets wereclassified under tangible assets under UK GAAP. Reclassifications of £2,251,000have been made between tangible and intangible assets at 1 January 2004,£2,077,000 at 30 June 2004 and £3,167,000 at 31 December 2004 accordingly. 7) IAS 21 - The effects of changes in foreign exchange ratesFrom 1 January 2004, foreign currency translation differences are pulled into aseparate reserve. As stated on page 4, the Group has elected, under theprovisions of IFRS 1, to set the historic translation differences on foreignsubsidiaries to zero. Additional changes from 1 January 2005 IAS 32 and 39 - Financial instruments: recognition, measurement and disclosureThe Group has taken advantage of the transitional provisions of IAS 32 and IAS39 and has not adopted these two standards early. They will be adopted from 1January 2005. The comparative information for 2004 has not been restated from UKGAAP to IFRS. The most material changes on adoption of these standards will be due tonon-recourse financing and accounting for foreign currency forward contracts. Non-recourse financing----------------------For the 2004 comparative numbers, under UK GAAP, the Group has adopted a linkedpresentation of its non-recourse financing, in line with FRS 5 'Reporting thesubstance of transactions'. Linked presentation is not permitted under IFRS.Application of IFRS to the non-recourse financing scheme in operation throughout2004 would have resulted in the financing element being accounted for asborrowings. There would have been no impact on the 2004 income statement. Forward currency contracts--------------------------The Group uses forward currency contracts to hedge material risks associatedwith movements in foreign currency exchange rates. In 2004 the material riskrelated to a £32,448,000 receivable (in Euros) relating to the purchase of GECompuNet and GECITS Austria in 2003. Under UK GAAP the fair value of the foreign currency forward contracts has notbeen recognised, and the receivable has been recorded at the contract rate. Under IFRS, foreign currency forward contracts are recognised at their fairvalue. The receivable would also be recognised at its fair value, and berecorded at the spot rate prevailing at the balance sheet date. If IAS 32 and 39 had been applied from 1 January 2004, there would have been anasset of £75,000 on the opening balance sheet, and a net movement in the incomestatement, from measuring both instruments at fair value, of a loss of £286,000before tax. Reconciliation of consolidated income statement(i) For the year ended 31 December 2004 1a 1b 2 UK GAAP Reclass Share profit and discontinued Positive Negative based loss account operation goodwill goodwill payment £'000 £'000 £'000 £'000 £'000Continuing operationsRevenue 2,455,752 (45,162) - - - Cost of sales (2,120,351) 39,959 - - - _________________________________________________________Gross profit 335,401 (5,203) - - - Distribution costs (20,759) 133 - - -Administrative expenses (248,899) 6,617 282 (531) (898) _________________________________________________________Profit from continuing operations before tax andfinance costs 65,743 1,547 282 (531) (898) Finance costs (3,573) 36 - - -Finance income 5,262 (15) - - -Share of loss of joint venture (411) - - - -Share of profit of associate 266 - - - - _________________________________________________________Profit before tax 67,287 1,568 282 (531) (898) Income tax expense (19,860) (1) - - 222 _________________________________________________________Profit for the year from continuing operations 47,427 1,567 282 (531) (676) Discontinued operationLoss for the year from discontinued operation (2,356) (1,567) - - -Net loss on investment in joint venture (286) - - - - _________________________________________________________Profit for the year 44,785 - 282 (531) (676) =========================================================Attributable to:Equity holders of the parent 44,854 - 282 (531) (676)Minority interests (69) - - - - _________________________________________________________ 44,785 - 282 (531) (676) =========================================================Earnings per share- basic for profit for the year 24.1p- basic for profit from continuing operations 25.5p- diluted for profit for the year 23.7p- diluted for profit from continuing operations 25.1p Reconciliation of consolidated income statement(i) For the year ended 31 December 2004 continued 3 4 Employee Accounting Other benefits for joint IFRS IFRS income venture adjs statement £'000 £'000 £'000 £'000Continuing operationsRevenue - - - 2,410,590 Cost of sales - - - (2,080,392) ____________________________________________Gross profit - - - 330,198 Distribution costs - - - (20,626)Administrative expenses 35 - (1,112) (243,394) ____________________________________________Profit from continuing operations before tax andfinance costs 35 - (1,112) 66,178 Finance costs - - - (3,537)Finance income - - - 5,247Share of loss of joint venture - 185 185 (226)Share of profit of associate - - - 266 ____________________________________________Profit before tax 35 185 (927) 67,928 Income tax expense - - 222 (19,639) ____________________________________________Profit for the year from continuing operations 35 185 (705) 48,289 Discontinued operationLoss for the year from discontinued operation - - - (3,923)Net loss on investment in joint venture - 286 286 - ____________________________________________ Profit for the year 35 471 (419) 44,366 ============================================Attributable to:Equity holders of the parent 35 471 (419) 44,435Minority interests - - - (69) ____________________________________________ 35 471 (419) 44,366 ============================================Earnings per share- basic for profit for the year -0.3p 23.8p- basic for profit from continuing operations 0.4p 25.9p- diluted for profit for the year -0.2p 23.5p- diluted for profit from continuing operations 0.5p 25.6p Reconciliation of consolidated income statement(ii) For the six months ended 30 June 2004 1a 1b 2 UK GAAP profit and Reclass Share loss discontinued Positive Negative based account operation goodwill goodwill payment £'000 £'000 £'000 £'000 £'000 Continuing operationsRevenue 1,254,918 (25,977) - - - Cost of sales (1,083,683) 22,862 - - - ________________________________________________________Gross profit 171,235 (3,115) - - - Distribution costs (9,953) 85 - - -Administrative expenses (128,247) 3,313 141 (531) (550) ________________________________________________________Profit from continuing operations before tax andfinance costs 33,035 283 141 (531) (550) Finance costs (1,743) 21 - - -Finance income 1,996 (1) - - -Share of loss of joint venture (205) - - - -Share of profit of associate 135 - - - - ________________________________________________________Profit before tax 33,218 303 141 (531) (550) Income tax expense (9,850) 1 - - 48 ________________________________________________________Profit for the year from continuing operations 23,368 304 141 (531) (502) Discontinued operationLoss for the year from discontinued operation - (304) - - -Net loss on investment in joint venture - - - - - ________________________________________________________Profit for the year 23,368 - 141 (531) (502) ========================================================Attributable to:Equity holders of the parent 23,338 - 141 (531) (502)Minority interests 30 - - - - ________________________________________________________ 23,368 - 141 (531) (502) ========================================================Earnings per share- basic for profit for the year 12.6p- basic for profit from continuing operations 12.7p- diluted for profit for the year 12.3p- diluted for profit from continuing operations 12.5p Reconciliation of consolidated income statement(ii) For the six months ended 30 June 2004 continued 3 4 Employee Accounting Other benefits for joint IFRS IFRS income venture adjs statement £'000 £'000 £'000 £'000 Continuing operationsRevenue - - - 1,228,941 Cost of sales - - - (1,060,821) ____________________________________________Gross profit - - - 168,120 Distribution costs - - - (9,868)Administrative expenses (2,519) - (3,459) (128,393) ____________________________________________Profit from continuing operations before tax and finance costs (2,519) - (3,459) 29,859 Finance costs - - - (1,722)Finance income - - - 1,995Share of loss of joint venture - - - (205)Share of profit of associate - - - 135 ____________________________________________Profit before tax (2,519) - (3,459) 30,062 Income tax expense - - 48 (9,801) ____________________________________________Profit for the year from continuing operations (2,519) - (3,411) 20,261 Discontinued operationLoss for the year from discontinued operation - - - (304)Net loss on investment in joint venture - - - - ____________________________________________Profit for the year (2,519) - (3,411) 19,957 ============================================Attributable to:Equity holders of the parent (2,519) - (3,411) 19,927Minority interests - - - 30 ____________________________________________ (2,519) - (3,411) 19,957 ============================================Earnings per share- basic for profit for the year -1.9p 10.7p- basic for profit from continuing operations -1.8p 10.9p- diluted for profit for the year -1.8p 10.5p- diluted for profit from continuing operations -1.8p 10.7p Reconciliation of consolidated balance sheet(i) As at 31 December 2004 1a 1b 2 3 4 UK GAAP Reclass Positive Negative Share Employee Accounting balance discontinued goodwill goodwill based benefits for joint sheet operation payment venture £'000 £'000 £'000 £'000 £'000 £'000 £'000ASSETSNon-current assetsProperty, plant and equipment 93,430 (349) - - - - -Intangible assets 4,474 - 282 - - - -Investment in a joint venture 5,648 - - - - - (5,648)Investment in an associate 373 - - - - - -Deferred income tax assets 1,433 - - - 53 - - ________________________________________________________________________ 105,358 (349) 282 - 53 - (5,648) ________________________________________________________________________Current assetsInventories 120,087 (1,173) - - - - -Trade and other receivables: gross 444,512 (6,060) - - - - -Less: non-returnable proceeds (39,043) - - - - - - ________________________________________________________________________Trade and other receivables 405,469 (6,060) - - - - -Prepayments 55,797 (662) - - - - -Cash and short-term deposits 139,182 (964) - - - - - ________________________________________________________________________ 720,535 (8,859) - - - - -Non-current assets classified as held forsale - 9,208 - - - - - ________________________________________________________________________TOTAL ASSETS 825,893 - 282 - 53 - (5,648) ========================================================================EQUITY AND LIABILITIESEquity attributable to equityholders of the parentIssued capital (9,489) - - - - - -Share premium (73,920) - - - - - -Capital redemption reserve (100) - - - - - -Investment in own shares 2,503 - - - - - -Other reserves - - - - - - -Amounts recognised directly in equityrelating to non-currentassets held for sale - - - - - - -Retained earnings (234,086) - (282) - (461) 883 (471) ________________________________________________________________________ (315,092) - (282) - (461) 883 (471)Minority interest (46) - - - - - - ________________________________________________________________________TOTAL EQUITY (315,138) - (282) - (461) 883 (471) ________________________________________________________________________ Non-current liabilitiesInterest-bearing loans and borrowings (429) - - - - - -Provisions (15,233) - - - - - -Other non-current liabilities (2,691) - - - - - -Deferred income tax liabilities (1,455) - - - - - - ________________________________________________________________________ (19,808) - - - - - - ________________________________________________________________________Current liabilitiesTrade and other payables (311,344) 5,306 - - - (883) -Deferred income (90,665) 1,582 - - - - -Interest-bearing loansRelated Shares:
Computacenter