14th Oct 2005 07:45
Renishaw PLC14 October 2005 First quarter trading statement I am pleased to report that both turnover and profit for the first three monthsof this current financial year are ahead of those for the comparable period lastyear. The Group has seen growth in all its major markets worldwide, inparticular, the Far East and in all our major product lines. Progress continues with the preparation of our Stonehouse property for the moveof the manufacturing facility from our New Mills site. The Stonehouse facilitywill be fully operational by the end of March 2006. A number of new products have been introduced at recent exhibitions, inparticular, at EMO held in Hannover in September. The Gyro range of heads, tocomplement REVO and RENSCAN5 introduced in April this year in our Co-ordinateMeasuring Machine (CMM) product line were very well received. Also introducedwere the OMP400 High Accuracy Strain Gauge Probe and On-Machine VerificationSoftware launched by our Machine Tool product line. The Company has recently acquired a 50% interest in Pulseteq Limited, a small UKcompany, specialising in radio frequency coil electronics and other enhancementsto magnetic resonance scanners. This investment illustrates our intention toundertake further investigations and exploit opportunities in the medical fieldby applying our in-house metrology expertise. Also since the year end we have acquired a 50% interest in Metrology SoftwareProducts Limited, another small UK-based company, to strengthen the softwaredevelopment programmes for our CMM and Machine Tool product lines. Following the triennial actuarial valuation of the Company's Pension Fund andthe results of the 2005 FRS17 calculation which were incorporated in the annualresults to 30th June 2005, your Board is currently undertaking a review of theCompany's pension arrangements. The annual accounts for the year ended 30th June 2005 have been restated underthe International Financial Reporting Standards. These have been issued thismorning and are now available on our website. The overall net effect of theseaccounting changes is a small increase in the reported profits before tax from£31.3m to £31.7m and an increase in earnings per share from 34.3p to 34.9p. We remain confident of the Company's future prospects. 2005 accounts restated under International Financial Reporting Standards("IFRS") Renishaw plc today issues its 2005 accounts restated under IFRS. The first setof accounts to be prepared under IFRS will be the interim results for the firsthalf year ending 31st December 2005, with the comparative figures for the firsthalf year to 31st December 2004 and the full year to 30th June 2005 beingrestated. A full set of accounts for the year ended 30th June 2005, compliant with IFRSand with accompanying accounting policies, is available on our websitewww.renishaw.com. The major impacts of IFRS accounting standards on income for the year ended 30thJune 2005 and on the balance sheet at 30th June 2005 were: * Capitalisation of development costs - IFRS requires certain development expenditure to be capitalised and subsequently amortised over a period of time. This has resulted in an increase in profit before tax of £0.5m for the year and an intangible asset of £4.8m at 30th June 2005. * Earnings per share increased from 34.3p to 34.9p * Dividends - Under IFRS, dividends are only accounted for, once they have been approved by shareholders. The 2005 final dividend is therefore not accounted for in the 2005 results and equity at 30th June 2005 is thereby increased by £10.0m. * Treatment of exchange differences. Under IFRS, exchange gains and losses resulting from the hedging operation to hedge future foreign currency income streams are reflected in turnover, whereas under previous UK generally accepted accounting policies ("UK GAAP"), these were shown within administrative expenses. This has increased turnover and administrative expenses by £0.7m, although the profit before tax is unchanged. * Balance sheet reclassifications - IFRS requires a number of assets and liabilities to be presented differently. The most significant are - + The pension deficit is shown at the gross value, with a related deferred tax asset shown as part of non-current assets. Previously, the pension deficit was shown net of the deferred tax amount. + Software licences, previously part of tangible fixed assets, have been reclassified as intangible fixed assets. + The deferred tax balance has been analysed between deferred tax assets and deferred tax liabilities and these balances are shown separately under assets and liabilities. A summarised 2005 income statement reconciliation and a balance sheetreconciliation at 30th June 2005 are as follows: 2005 income statement Capitalised Tax on development intragroup Other UK GAAP costs trading items Reanalysis IFRS £m £m £m £m £m £m Turnover 154.1 0.7 154.8 Cost of sales (81.4) 0.5 (80.9) ________ ________ ________ ________ ________ ________Gross profit 72.7 0.5 0.7 73.9 Overheads (43.8) (0.1) (0.7) (44.6) ________ ________ ________ ________ ________ ________Operating profit 28.9 0.5 (0.1) 29.3 Finance income 2.4 2.4 ________ ________ ________ ________ ________ ________Profit before tax 31.3 0.5 (0.1) 31.7 Tax expense (6.3) (0.1) 0.1 (6.3) ________ ________ ________ ________ ________ ________Net profit 25.0 0.4 0.1 (0.1) 25.4 ________ ________ ________ ________ ________ ________ Balance sheet at 30th June 2005 Capitalised Reversal development of Other UK GAAP costs dividend items Reanalysis IFRS £m £m £m £m £m £mAssetsProperty, plant 66.7 (2.4) 64.3Intangible assets - 4.8 2.4 7.2Deferred tax - 0.7 9.9 10.6 ________ ________ ________ ________ ________ ________Total non-current assets 66.7 4.8 - 0.7 9.9 82.1 ________ ________ ________ ________ ________ ________ Inventories 27.4 27.4Trade receivables 34.6 34.6Current tax - 0.3 0.3Other receivables 2.8 2.8Cash 30.1 30.1 ________ ________ ________ ________ ________ ________Total currentassets 94.9 - - - 0.3 95.2 ________ ________ ________ ________ ________ ________ Total assets 161.6 4.8 - 0.7 10.2 177.3 ________ ________ ________ ________ ________ ________ EquityIssued capital 14.6 14.6Share premium - -Currency reserve - 0.7 0.7Retained earnings 97.6 3.4 10.0 (0.7) 110.3 ________ ________ ________ ________ ________ ________Total equity 112.2 3.4 10.0 - - 125.6 ________ ________ ________ ________ ________ ________ LiabilitiesEmployee benefits 14.8 5.9 20.7Deferred tax 4.5 1.4 4.0 9.9Provisions 0.6 0.6 ________ ________ ________ ________ ________ ________Total non-current liabilities 19.9 1.4 - - 9.9 31.2 ________ ________ ________ ________ ________ ________ Trade payable 9.5 9.5Current tax 2.3 0.3 2.6Other payables 17.7 (10.0) 0.7 8.4 ________ ________ ________ ________ ________ ________Total currentLiabilities 29.5 - (10.0) 0.7 0.3 20.5 ________ ________ ________ ________ ________ ________ Total liabilities 49.4 1.4 (10.0) 0.7 10.2 51.7 ________ ________ ________ ________ ________ ________ Total equityand liabilities 161.6 4.8 - 0.7 10.2 177.3 ________ ________ ________ ________ ________ ________ For further information, please contact: Allen Roberts Group Finance Director 01453 524445 Ben Taylor Assistant Chief Executive 01453 524445 Registered office. New Mills, Wotton-under-Edge, Gloucestershire, UK. GL12 8JR Telephone. 01453 524524 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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