19th May 2005 07:00
The Vitec Group PLC19 May 2005 19 May 2005 The Vitec Group plc The impact of International Financial Reporting Standards ("IFRS") Restatement of 2004 financial information The Vitec Group plc ("Vitec"), the international supplier of products, servicesand solutions to the Broadcast, Entertainment and Media industries, presents itsunaudited results under International Financial Reporting Standards (IFRS) forthe year ended 31 December 2004. The full report, which contains detailedexplanations of the IFRS and UK GAAP numbers, is available on Vitec's website,www.vitecgroup.com. The full year 2004 results prepared on an IFRS basis and those under UK GAAP can be summarised as follows: Financial results 2004 IFRS 2004 UK (unaudited) GAAP*Sales £185.4m £185.4mProfit / (loss) before tax before significant items** £16.3m £16.2mProfit / (loss) before tax £14.1m £12.3mBasic earnings per share before significant items** 21.6p 22.9pBasic earnings per share 18.5p 15.6pNet assets £64.2m £56.7m * The UK GAAP numbers presented above are as reported in the 2004 Annual Report, reformatted in line with presentational requirements under IFRS. ** Significant items are those which, because of size or incidence, require separate disclosure to enable underlying trading performance to be assessed. They comprise restructuring costs, asset impairment charges and profits on sale of businesses which were classified as exceptional in the 2004 UK GAAP accounts. Highlights • No material effect on profit before tax and eps before significant items • Trading fundamentals, cash generation and operational performance not affected • Basic eps improved due to reversal of goodwill amortisation • Tax charge increases due to increased deferred tax (cash taxes unchanged) • Net assets increase due to deferred tax, partly offset by provision for pension deficit Alastair Hewgill, Finance Director of The Vitec Group plc, commented: "The Group's transition to IFRS has gone well and we are pleased to present therequired financial information within the timescale laid down by the EU. Theimpact of IFRS on 2004 profit before tax and significant items is not materialfor the Group. Whilst our current taxes payable remain low and the current taxcharge remains unchanged, the impact of IFRS adjustments on pensions, goodwilland the calculation of deferred tax balances would have increased our deferredtax charge, and therefore our overall tax charge." "On the balance sheet, a major change relates to pension accounting wheredeficits are now shown as liabilities, whereas under UK GAAP they were amortisedover a number of years. However, that has been more than compensated for by theimpact of IFRS adjustments on the calculation of deferred tax balances, wherethe Group now has net deferred tax assets rather than net deferred taxliabilities." "As we move towards full reporting under IFRS for 2005, our aim will be to keepthe investment community informed about the expected impacts on reporting." Further enquiries: Alastair HewgillGroup Finance DirectorTel: 020 8939 4650 Notes to Editors About The Vitec Group plc The Vitec Group plc supplies a wide range of equipment and services to thebroadcasting, entertainment and photographic industries. Its products aredistributed in nearly 100 countries, either through dealerships or direct to theend user or corporate sector, and it has manufacturing facilities in fourcountries. The Vitec Group is a major force in its chosen specialised fields. More information can be found at: http://www.vitecgroup.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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