12th Oct 2005 07:00
Oxford Instruments PLC12 October 2005 12 October 2005 Oxford Instruments plc Summary of impact of International Financial Reporting Standards (IFRS) Oxford Instruments plc, the advanced instrumentation business, today provides anunaudited summary of the restatement to IFRS of its results for the year ended31 March 2005. This summary is provided in advance of the publication of theGroup's interim report for the six months to 30 September 2005 on 22 November2005, which will adopt IFRS for the first time. The comparative data (theresults for the six months to 30 September 2004 and for the 12 months to 31March 2005) will also be reported under IFRS within the interim report. Although the summary is unaudited the Group's auditors, KPMG Audit plc, havereviewed the principles and methodology used in the conversion to IFRS of theresults for the year to 31 March 2005. The principal changes of adopting IFRS in place of UK GAAP for the year ended 31March 2005 are summarised below: For the year ended 31 March 2005 UK GAAP IFRS £m £m Turnover from continuing operations 156.5 154.8Profit from operations* 7.4 7.4Profit before tax from continuingoperations 1.3 0.1Shareholders' funds 82.0 58.0 pence per share pence per share Underlying earnings per share * 10.9 10.3Basic earnings per share 3.3 12.2 * Profit from operations and underlying earnings per share under UK GAAP isstated before exceptional costs, goodwill amortisation, gains on disposal ofbusinesses and discontinued operations. Profit from operations and underlyingearnings per share under IFRS is stated before amortisation of acquiredintangible assets, certain restructuring and other non-recurring costs which theDirectors consider should be excluded in order to give a better indication ofunderlying performance, gains on disposal of businesses and discontinuedoperations. • Profit from operations is unchanged after the following adjustments: - Development costs of £1.2m are capitalised and therefore no longer charged - There is a reduction in the operating charge for pensions cost of £0.2m - There is a reduction in the charge for empty properties of £0.2m - Amortisation of £1.4m is charged in respect of development costs - There is an increase in the charge for share based payments of £0.2m. • Profit before tax is £1.2m lower due to the following additional items: - Amortisation of £1.1m is charged in respect of acquired intangible assets. - There is a pension net finance charge of £0.5m - There is an impairment of empty property carrying value of £0.5m - Goodwill of £0.9m is no longer amortised. • Shareholders' funds reduce by £24.0m, comprising a reduction of £28.1m (after tax) as a result of the adoption of IAS 19 (retirement benefit obligations) and a credit in respect of other items in particular capitalised R&D and proposed dividends no longer being treated as a liability at the balance sheet date. • Underlying earnings per share decreases by 0.6p • The adoption of IFRS has no cash impact. It is possible that further changes will be required to the comparative databefore it is published in the interim report and the final report and accountsfor the year ended 31 March 2006, as not all the IFRS statements have beenformally endorsed by the EU and further interpretative guidance on the standardsmay be issued. The conversion to IFRS in respect of the Group's financial statements for theyear ended 31 March 2005 is set out in detail in a report entitled "OxfordInstruments plc - conversion to IFRS" that can be downloaded from the company'swebsite at www.oxford-instruments.com along with a presentation summarising thekey points. Both documents can also be obtained from Shannon Pendrey at theCompany's registered office at Old Station Way, Eynsham, Witney, Oxon, OX29 4TL(email: [email protected]). ENDS Enquiries:Oxford Instruments plc Tel 01865 881437Martin Lamaison, Financial Director Fax 01865 884045 Hogarth Partnership Limited Tel 020 7357 9477Rachel Hirst Fax 020 7357 8533Andrew Jaques Notes to Editors As a global leader in advanced instrumentation, Oxford Instruments has a broadrange of capabilities which provide the tools, processes and solutions needed toadvance fundamental nanoscience research and its transfer into commercialnanotechnology applications. With a unique set of technologies to enable themanipulation and observation of matter at the smallest scales, OxfordInstruments offers solutions for the fabrication and characterisation ofnanoscale materials, structures and devices, and environments in which toperform fundamental nanoscience. The first technology business to be spun outfrom Oxford University over forty years ago, Oxford Instruments today employsover 1,200 people, operating globally, and is listed on the London StockExchange (OXIG). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Oxford Instruments