European Metals Holdings Regulatory News (EMH)

18 Oct 2005 15:50

European Motor Hldgs PLC18 October 2005 EUROPEAN MOTOR HOLDINGS plc ("EMH") ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS European Motor Holdings plc has today published its unaudited full year restatedresults for the year ended 28 February 2005 under International FinancialReporting Standards ("IFRS"). The full report, which is now available on EMH'swebsite at www.emhplc.com/IFRS.pdf, covers the following areas: • Basis of preparation• First time adoption of IFRS• Financial impact of transition• Principal accounting policies Reconciliations of UK GAAP to IFRS in respect of profits for the six monthsended 31 August 2004 and the year ended 28 February 2005, and the financialposition as at 1 March 2004 (the transition date), 31 August 2004 and 28February 2005 following the adoption of IFRS are also provided. EMH has previously reported its results under UK Generally Accepted AccountingPrinciples ("UK GAAP"). All EU listed companies are required to report theirconsolidated financial statements under IFRS for accounting periods beginning onor after 1 January 2005. The group's first annual report under IFRS will be forthe year ending 28 February 2006 with the first IFRS interim results being forthe six months ended 31 August 2005. The report available on the website explains the main changes that are requiredto the group's financial statements on adoption of IFRS. The results for the year ended 28 February 2005 under both UK GAAP and IFRS are shown below for comparison. Results for the year ended 28 February 2005 UK GAAP IFRS £m £m------------------------------ --------- --------Operating profit before exceptional items 14.7 15.8Exceptional items 8.3 8.5------------------------------ --------- -------- Profit before interest 23.0 24.3Net interest 0.8 (0.1)Exceptional interest 6.3 6.3------------------------------ --------- -------- Profit before tax 30.1 30.5Tax (9.7) (9.3)------------------------------ --------- -------- Profit after tax 20.4 21.2------------------------------ --------- -------- As can be seen from the above table, the impact of the transition is broadlyneutral on profit before tax. The tax charge is lower under IFRS because the UKGAAP charge included an exceptional element that would have been provided inprior years under IFRS in respect of rolled over gains. The impact on net assets is similarly broadly neutral (an increase from £80.0million to £80.1 million) with an increase as the final dividend is no longerprovided for under IFRS, offset by reductions principally as a result of theinclusion of the net pension deficit and deferred tax liability on rolled overgains, which were previously unprovided under UK GAAP. There is no impact on the business fundamentals, including underlying cashflows, as a result of the transition from UK GAAP to IFRS. EMH will be announcing its interim results for the six months ended 31 August2005 on 26 October 2005. For further information, please contact Richard Palmer (Chief Executive)Ann Wilson (Finance Director)Tel 01491 413399 This information is provided by RNS The company news service from the London Stock Exchange