Last checked at 18 Jun 2008 11:00
| Press Release | 18 June 2008 |
Hardide plc
("Hardide" or "the Group")
Adoption of IFRS
Set out below are reconciliations to show the effect on the reported figures of the Group moving from UK Generally Accepted Accounting Practice (UK GAAP) to International Financial Reporting Standards (IFRS). The reconciliations of equity as at 1 October 2006 (the date of transition to IFRS) and as at 30 September 2007 (the date of our last UK GAAP financial statements), and the reconciliation of profit for that year, as required by IFRS1 are shown below. In addition, a reconciliation of the effect of IFRS on the profit for the six months to March 2007 and on the equity as at 31 March 2007 is shown in order to allow a comparison of the effects for each period.
The adoption of IFRS represents an accounting change only and does not affect the underlying operation of the business or Hardide's cash flows.
First time adoption of IFRS
The Group's transition date to IFRS was 1 October 2006, which is the beginning of the comparative period for the year ended 30 September 2007. The Group has applied IFRS1 for the first time adoption of IFRS and has elected to use the following exemptions:
| Business combinations - business combinations that took place prior to 1 October 2006 have not been restated; | |
| Share-based payment - the Group has applied the requirements of IFRS2 Share-based payments to all grants of equity instruments after 7 November 2002 that were unvested as of 1 October 2006. |
The key impacts of implementing IFRS with respect to the Group's consolidated accounts are:
Goodwill amortisation: In accordance with IFRS 3, goodwill is no longer amortised but is subject to annual impairment tests. Goodwill amortised from 1 October 2006 is reversed and goodwill on earlier acquisitions is fixed at the 1 October 2006 value.
Negative goodwill: The balance of negative goodwill is written off at the opening balance sheet date.
Property, plant and equipment: In accordance with IAS 16, purchased software is classified as an intangible asset.
For further information:
| Hardide plc | |
| Robert Goddard / Peter Davenport / Jackie Robinson | Tel: +44 (0) 1869 353 830 |
| www.hardide.com | |
| Seymour Pierce Limited | |
| Nicola Marrin / Richard Feigen | Tel: +44 (0) 20 7107 8000 |
| nicolamarrin@seymourpierce.com / richardfeigen@seymourpierce.com | www.seymourpierce.com |
| Media enquiries: | |
| Abchurch | |
| Chris Lane / George Parker | Tel: +44 (0) 20 7398 7719 |
| george.parker@abchurch-group.com | www.abchurch-group.com |
| Reconciliation of equity at 1 October 2006 (date of transition to IFRS) | ||||||
| Effect of transition | ||||||
| UK GAAP | to IFRS | IFRS | ||||
| £ '000 | £ '000 | £ '000 | ||||
| Assets | ||||||
| Non-current assets | ||||||
| Investments | - | - | - | |||
| Goodwill | (10) | 81 | 71 | |||
| Intangible assets | - | 9 | 9 | |||
| Property, plant & equipment | 1,753 | (9) | 1,744 | |||
| Total non-current assets |
| 1,743 |
| 81 |
| 1,824 |
| Current assets | ||||||
| Inventories | 102 | - | 102 | |||
| Trade and other receivables | 340 | - | 340 | |||
| Other current financial assets | 248 | - | 248 | |||
| Cash and cash equivalents | 1,803 | - | 1,803 | |||
| Total current assets |
| 2,493 |
| - |
| 2,493 |
| Total assets |
| 4,236 |
| 81 |
| 4,317 |
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables | 485 | - | 485 | |||
| Financial liabilities | 98 | - | 98 | |||
| Provisions | - | - | - | |||
| Total current liabilities |
| 584 |
| - |
| 584 |
| Net current assets |
| 1,909 |
| - |
| 1,909 |
| Non-current liabilities | ||||||
| Financial liabilities | 216 | - | 216 | |||
| Total non-current liabilities |
| 216 |
| - |
| 216 |
| Total liabilities |
| 800 |
| - |
| 800 |
| Net assets |
| 3,436 |
| 81 |
| 3,517 |
| Equity | ||||||
| Share capital | 1,467 | - | 1,467 | |||
| Share premium | 3,345 | - | 3,345 | |||
| Retained earnings | (1,387) | 81 | (1,306) | |||
| Share-based payments reserve | - | - | - | |||
| Translation reserve | 11 | - | 11 | |||
| Total equity |
| 3,436 |
| 81 |
| 3,517 |
| Reconciliation of equity at 31 March 2007 (date of last UK GAAP interim statements) | ||||||
| Effect of transition | ||||||
| UK GAAP | to IFRS | IFRS | ||||
| £ '000 | £ '000 | £ '000 | ||||
| Assets | ||||||
| Non-current assets | ||||||
| Investments | - | - | - | |||
| Goodwill | 10 | 60 | 69 | |||
| Intangible assets | - | 8 | 8 | |||
| Property, plant & equipment | 1,908 | (8) | 1,900 | |||
| Total non-current assets |
| 1,918 |
| 60 |
| 1,977 |
| Current assets | ||||||
| Inventories | 125 | - | 125 | |||
| Trade and other receivables | 426 | - | 426 | |||
| Other current financial assets | 164 | - | 164 | |||
| Cash and cash equivalents | 700 | - | 700 | |||
| Total current assets |
| 1,416 |
| - |
| 1,416 |
| Total assets |
| 3,333 |
| 60 |
| 3,393 |
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables | 449 | - | 449 | |||
| Financial liabilities | 114 | - | 114 | |||
| Provisions | - | - | - | |||
| Total current liabilities |
| 563 |
| - |
| 563 |
| Net current assets |
| 853 |
| - |
| 853 |
| Non-current liabilities | ||||||
| Financial liabilities | 164 | - | 164 | |||
| Total non-current liabilities |
| 164 |
| - |
| 164 |
| Total liabilities |
| 727 |
| - |
| 727 |
| Net assets |
| 2,606 |
| 60 |
| 2,666 |
| Equity | ||||||
| Share capital | 1,467 | - | 1,467 | |||
| Share premium | 3,345 | - | 3,345 | |||
| Retained earnings | (2,232) | 60 | (2,172) | |||
| Share-based payments reserve | 22 | - | 22 | |||
| Translation reserve | 4 | - | 4 | |||
| Total equity |
| 2,606 |
| 60 |
| 2,666 |
| Reconciliation of equity at 30 September 2007 (date of last UK GAAP financial statements) | ||||||
| Effect of transition | ||||||
| UK GAAP | to IFRS | IFRS | ||||
| £ '000 | £ '000 | £ '000 | ||||
| Assets | ||||||
| Non-current assets | ||||||
| Investments | - | - | - | |||
| Goodwill | 24 | 46 | 69 | |||
| Intangible assets | - | 7 | 7 | |||
| Property, plant & equipment | 1,668 | (7) | 1,661 | |||
| Total non-current assets |
| 1,692 |
| 46 |
| 1,737 |
| Current assets | ||||||
| Inventories | 99 | - | 99 | |||
| Trade and other receivables | 648 | - | 648 | |||
| Other current financial assets | 147 | - | 147 | |||
| Cash and cash equivalents | 1,135 | - | 1,135 | |||
| Total current assets |
| 2,029 |
| - |
| 2,029 |
| Total assets |
| 3,721 |
| 46 |
| 3,767 |
| Liabilities | ||||||
| Current liabilities | ||||||
| Trade and other payables | 512 | - | 512 | |||
| Financial liabilities | 145 | - | 145 | |||
| Provisions | - | - | - | |||
| Total current liabilities |
| 657 |
| - |
| 657 |
| Net current assets |
| 1,372 |
| - |
| 1,372 |
| Non-current liabilities | ||||||
| Financial liabilities | 893 | - | 893 | |||
| Total non-current liabilities |
| 893 |
| - |
| 893 |
| Total liabilities |
| 1,550 |
| - |
| 1,550 |
| Net assets |
| 2,171 |
| 46 |
| 2,217 |
| Equity | ||||||
| Share capital | 1,467 | - | 1,467 | |||
| Share premium | 3,345 | - | 3,345 | |||
| Retained earnings | (3,122) | 46 | (3,076) | |||
| Share-based payments reserve | 450 | - | 450 | |||
| Translation reserve | 31 | - | 31 | |||
| Total equity |
| 2,171 |
| 46 |
| 2,217 |
| Reconciliation of loss for six months ended 31 March 2007 | ||||||
| Effect of transition | ||||||
| UK GAAP | to IFRS | IFRS | ||||
| £ '000 | £ '000 | £ '000 | ||||
| Revenue | 1,105 | - | 1,105 | |||
| Cost of Sales | (581) | - | (581) | |||
| Gross Profit |
| 525 |
| - |
| 525 |
| Administrative expenses | (1,229) | - | (1,229) | |||
| Depreciation and amortisation | (195) | (22) | (217) | |||
| Operating profit |
| (899) |
| (22) |
| (921) |
| Interest income | 24 | - | 24 | |||
| Finance costs | (12) | - | (12) | |||
| Profit on ordinary activities before tax | (887) |
| (22) |
| (909) | |
| Tax | - | - | - | |||
| Profit for the period |
| (887) |
| (22) |
| (909) |
| Reconciliation of loss for the year ended 30 September 2007 | ||||||
| Effect of transition | ||||||
| UK GAAP | to IFRS | IFRS | ||||
| £ '000 | £ '000 | £ '000 | ||||
| Revenue | 2,470 | - | 2,470 | |||
| Cost of Sales | (1,180) | - | (1,180) | |||
| Gross Profit |
| 1,290 |
| - |
| 1,290 |
| Administrative expenses | (2,676) | - | (2,676) | |||
| Depreciation | (439) | (36) | (475) | |||
| Operating profit |
| (1,825) |
| (36) |
| (1,861) |
| Interest income | 31 | - | 31 | |||
| Finance costs | (25) | - | (25) | |||
| Profit on ordinary activities before tax | (1,819) |
| (36) |
| (1,855) | |
| Tax | 24 | - | 24 | |||
| Profit for the period |
| (1,795) |
| (36) |
| (1,831) |