7th Jun 2005 10:22
Cobham PLC07 June 2005 07 June 2005 TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS Cobham plc will adopt International Financial Reporting Standards (IFRS) for its2005 financial statements, as required for all European listed companies. Today,the Group announces completion of preparations for this change, including therestatement of its transition balance sheet+ and 2004 financial statements. Summary Impact of IFRS O 2004 operating profit increases by £13.2m (10%) to 149.1m. Underlying operating profit decreases by £6.1m (4%) to £150.8m. Both of these movements include a reduction of £3.5m due to reclassification of joint venture interest and tax. This has no impact on profit after tax O Underlying operating margin falls by 0.8%pts to 15.2%. # O 2004 profit after tax increases £16.2m (19%) to £101.2m. Underlying profit after tax reduces by £3.1m (3%) to £102.9m O Basic earnings per share (EPS) for 2004 increased by 14.5p (19%) to 90.5p. Underlying EPS down by 3.2p (3%) to 91.6p O Key underlying profit impacts for 2004 arise from; o Treatment of share incentives o Changes to employee benefit accruals o Long term contracts o Increased deferred tax charge O No impact on cash flow As previously, the Cobham group will report an adjusted presentation for itsprofitability and earnings, in parallel with the basic financial results, inorder to present the underlying position and trends in the business. Underlyingprofit under UK GAAP has been defined as profit before the impact of goodwillamortisation and the impact of exceptional items. Under IFRS underlying profitwill be defined as profit after removing the impact of amortisation ofintangibles recognised on acquisition, exceptional items and, for 2005 onwards,the impact of changes in the fair value of derivative financial instruments,primarily employed to manage currency exposures, on transactions denominated inUS dollars. A more detailed review of the impacts of the changes in reporting standards asthey affect the transition balance sheet and the 2004 financial statements arecontained in a separate press release, also published today. Both of these press releases are also available on the Cobham web site at http://www.cobham.com/download/Transition_to_IFR_Standards.pdf + In adopting new standards for the 2005 financial year, it is necessary torestate the opening balance sheet for 2004 in order to correctly present theincome statement effects of the standard change in the comparative year. Thetransition date for Cobham's adoption of IFRS standards is therefore defined as1st January 2004. # Includes 0.2%pts due to the reclassification of tax expense - see section 8.1 NOTES TO EDITOR Cobham plc - Cobham designs and manufactures equipment, specialised systems andcomponents supplied to the aerospace, defence, homeland security, search andrescue and communications markets and operates, modifies and maintains aircraftfor military training, special mission flight operations and outsourced freightand passenger services. ENQUIRIES Cobham plc Allan CookChief Executive Telephone +44 (0) 1202 882 020 Warren TuckerGroup Financial Director Telephone +44 (0) 1202 882 020 Weber ShandwickRachel Taylor Telephone +44 (0) 207 067 0730 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Cobham