Design Group Regulatory News (IGR)

13 Dec 2007 07:01

International Greetings PLC13 December 2007 Under Embargo 7am13 December 2007 INTERNATIONAL GREETINGS PLC ("International Greetings" or "the Group") INTERIM RESULTS International Greetings PLC (AIM: IGR), the global designer and manufacturer ofgreetings products, film and television character based licensed stationery,books and gifts, today announces interim results for the six months ended 30September 2007. Financial highlights: • Turnover for the period was £91.8million (2006: £85.1million) • Operating profit of £3.9million (2006: £6.5million) • Interest payable during the period increased to £1.7million (2006: £0.9million) • Profit before tax of £1.9million (2006: £5.6million) • Basic earnings per share for the period were 3.0p (2006: 9.2p) • Interim dividend of 2.0p (2006: 2.25p) Operational highlights: • Continuing difficulties with revenues and margins in the UK Greetings Division • Overseas operations continue to perform in line with expectations: - - 10% increase in turnover in US Division (excluding Glitterwrap); - 24% increase in turnover in European Gift Wrap Division • Acquisition of Weltec photo frame business strengthens position in German market • Acquisition of Glitterwrap Inc in US enhancing market presence • Acquisition (post period end) of a 50% shareholding in Artwrap Pty, extending the Group's reach into Australia For further information: Keith James, Chairman, International Greetings: Richard Day, Arden Partners Plc 020 7398 1632 Jeremy Carey/Gemma Bradley, Tavistock Communications: 020 7920 3150 CHAIRMAN'S STATEMENT I announce below the interim results for the six months to 30 September 2007. FINANCIAL REVIEW Turnover for the period was £91.8m (2006: £85.1m), with operating profit of£3.9m (2006: £6.5m). Net interest payable during the period increased to £1.7mfrom £0.9m last year. The group's share of losses of associates was £0.3m (2006:£nil), resulting in profit before tax of £1.9m (2006: £5.6m). Basic earnings pershare for the period were 3.0p (2006: 9.2p). Turnover of £4m and operatingprofit of £nil was attributable to acquisitions made during the period. Theseresults are a reflection of the announcement made on 4th December 2007 that theUK retail climate remains extremely tough. OPERATIONAL REVIEW Our US and European businesses continue to develop with a 10% increase inturnover of the US Division (excluding Glitterwrap) and a 24% increase inturnover of the European Gift Wrap Division. In the Far East, our strategy todevelop FOB sales direct to our global customer base is proving successful andwe expect this trend to continue. These rates of growth, together with theacquisitions made overseas during the first half of the financial year,illustrate the potential that exists in our global markets. The acquisition ofthe Weltec photo frame business in April this year has strengthened our positionin the German market place, and we expect to achieve good sales growth duringthe next financial year. The purchase of Glitterwrap Inc has enhanced our marketposition in the US. It is being merged with our existing business, therebyproviding trading and cost saving benefits for both. We recently announced thepurchase of a 50% shareholding in Artwrap Pty, which gives the Group a presencein Australia. We have identified many opportunities to sell products from otherDivisions within the Group into the Australian market. In addition, Artwrap willobtain significant cost saving benefits from its association with us. In the US,our 50% investment in Halloween Express involves three areas of business; theexisting franchise operation, the development of an internet site under the samebanner and the trialing of a Halloween and Christmas merchandise operation witha view to extending the franchise business. Once the seasonal trading period hascompleted, we will evaluate each of these areas to plan our forward strategy forthis investment. In the UK, our Anker and Alligator trading divisions are performing broadly inline with expectations. However, the UK Greetings Division continues to beaffected by the tough trading climate in this sector with both volumes andmargins under pressure. As a result, an extensive review is underway which will lead to a restructuringof the UK manufacturing and distribution base and its associated plants in bothLatvia and China. We expect that the outcome will be a reorganised businesscompatible with the volumes and margins now attainable in this Division capableof earning acceptable profit margins in the future. BOARD CHANGES In order to help implement the restructuring and improve the performance of theUK Greetings Division, the following Board changes will take place withimmediate effect. Paul Fineman will take on the newly created role of GroupManaging Director and will be directly responsible for the restructuring of theUK Greetings Division. Anders Hedlund will step down as Joint Chief Executiveand become Deputy Chairman. Nick Fisher, currently Joint Chief Executive, willbecome Group Chief Executive. All other Directors will maintain their existing roles and responsibilities. DIVIDEND Taking into account current trading and forward prospects the Board havereviewed the level of dividend which is appropriate for the Group to pay andproposes an interim dividend of 2p, which will be paid on 22 January 2008 to allshareholders on the register on 21 December 2007. OUTLOOK As shareholders are aware, we have been aggressively pursuing a strategy todiversify our business both geographically and into new product categories toreduce our historical reliance on the UK multiple retail sector. The Board isconfident that this is the right strategy and that following the restructuringof the UK manufacturing and distribution base, the business will show improvedresults in the future. Keith James OBEChairman13 December 2007 CONDENSED CONSOLIDATED INCOMESTATEMENT FOR THE SIX MONTHSENDED 30 SEPTEMBER 2007 Unaudited six months Unaudited six ended 30 months ended September 30 September 12 months to Notes 2007 2006 31 March 2007 £000 £000 £000 Revenue 91,774 85,093 196,718 -------- -------- --------Operating profit beforerestructuring costsand disposal of fixed assets 3,933 6,837 20,487 Restructuring costs 4 - (304) (1,252) Profit on disposal offixed assets - - 2,240 -------- -------- --------Operating profit 3,933 6,533 21,475 Financial expenses (1,674) (958) (2,757) -------- -------- -------- 2,259 5,575 18,718 Share of loss of associates (netof tax) (343) - - -------- -------- --------Profit before taxation 1,916 5,575 18,718 Taxation 2 (498) (1,317) (4,315) -------- -------- -------- Profit for the periodattributable to equity holders ofthe parent company 1,418 4,258 14,403 ========= ======== ======== Earnings per share 3Basic 3.0p 9.2p 31.1pDiluted 3.0p 9.1p 30.6p CONDENSED CONSOLIDATED BALANCESHEET AS AT 30 SEPTEMBER 2007 Unaudited Unaudited as as at 30 at 30 September September 12 months to 2007 2006 31 March 2007 £000 £000 £000 AssetsProperty, plant and equipment 43,813 40,017 41,882Intangible assets 32,502 26,091 28,153Investments in associates 3,630 - - -------- -------- --------Total non-current assets 79,945 66,108 70,035 Current assetsInventories 66,472 62,254 48,577Trade and other receivables 84,192 75,519 41,283Cash and cash equivalents 20 10 12,990Investments - 15 20 -------- -------- --------Total current assets 150,684 137,798 102,870 -------- -------- --------Total assets 230,629 203,906 172,905 ======== ======== ======== EquityIssued capital 2,353 2,314 2,317Share premium 3,007 2,455 2,515Reserves 13,298 12,845 11,759Shares to be issued 2,091 1,052 2,235Retained earnings 63,777 56,688 65,923 -------- -------- --------Total equity attributable toequity holders of the parentcompany 84,526 75,354 84,749 Non-current liabilities 11,921 9,300 7,958 Current liabilities 134,182 119,252 80,198 -------- -------- --------Total liabilities 146,103 128,552 88,156 -------- -------- --------Total equity and liabilities 230,629 203,906 172,905 ======== ======== ======== CONSOLIDATED CASH FLOW STATEMENTSIX MONTHS ENDED 30 SEPTEMBER 2007 Unaudited Unaudited as as at 30 at 30 September September 12 months to 2007 2006 31 March 2007 £000 £000 £000Cash flows from operatingactivitiesProfit for the period 1,418 4,258 14,403Adjustments for:Depreciation 2,833 3,560 5,876Financial expenses 1,674 958 2,757Share of loss of associates 343 - -Gain on sale of property, plantand equipment - - (2,240)Equity settled share-based payment 65 112 244Income tax expense 498 1,317 4,315 -------- -------- --------Operating profit beforechanges in working capitaland provisions 6,831 10,205 25,355 Change in inventories (14,402) (20,802) (7,521)Change in trade and otherreceivables (43,109) (44,131) (6,917)Change in trade and other payables 9,665 15,512 1,804Change in provisions and deferredincome (416) (857) (1,832) -------- -------- -------- (41,431) (40,073) 10,889Interest paid (2,074) (1,020) (2,419)Income taxes paid (497) (703) (3,024) -------- -------- --------Net cash (outflow)/ inflowfrom operating activities (44,002) (41,796) 5,446 Cash flows from investingactivitiesAcquisition of subsidiaries,including overdrafts acquired (10,555) (16,372) (16,776)Acquisition of shares in associates (791) - -Payments to acquire property,plant and equipment (3,785) (7,005) (11,933)Receipts from sales of property,plant and equipment 3,715 109 95Receipt of grants 1,962 - -Receipts from sale ofinvestments 20 286 45 -------- -------- --------Net cash (outflow) from investingactivities (9,434) (22,982) (28,569) -------- -------- --------Cash flows from financingactivitiesProceeds from the issue of sharecapital - 38 101Repayment of loans (159) (177) (89)Receipt of new loans - 1,203 -Payment of finance lease liabilities (48) (91) (280)Equity dividends (3,629) (3,240) (4,282) Net cash (outflow) from financing -------- -------- --------activities (3,836) (2,267) (4,550) -------- -------- --------Net (decrease) in cash and cash equivalents (57,272) (67,045) (27,673) Cash and cash equivalents atstart of period (35,567) (9,025) (9,025) Effect of exchange ratefluctuations on cash held (223) 777 1,131 -------- -------- --------Cash and cash equivalents at endof period (93,062) (75,293) (35,567) ======== ======== ======== Reconciliation of cash and cash equivalents Unaudited Unaudited as as at 30 at 30 September September 12 months to 2007 2006 31 March 2007 £000 £000 £000 Cash and cash equivalents 20 10 12,990Loans and borrowings (93,082) (75,303) (48,557) -------- -------- --------Cash and cash equivalents per the cash flow statement (93,062) (75,293) (35,567) ======== ======== ======== CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the six months ended30 September 2007 Total equity attributable to Potential Capital equity holder Merger Retained issue of redemption Translation of the parentSeptember 2007 Share Capital Share premium reserve earnings shares reserve reserve company £000 £000 £000 £000 £000 £000 £000 £000 Balance at 1 April 2007 2,317 2,515 13,416 65,923 2,235 1,340 (2,997) 84,749 Exchange adjustment - - - - - - (578) (578) ------------------------------------------------------------------------------------------------Net income recognised directly in equity - - - - - - (578) (578) Profit for the period - - - 1,418 - - - 1,418 ------------------------------------------------------------------------------------------------Total income and expense recognised for the period - - - 1,418 - - (578) 840 Dividends paid - - - (3,629) - - - (3,629) Equity settled transactions - - - 65 - - - 65Shares issued 36 492 2,117 - - - - 2,645Decrease in potential issue of shares - - - - (144) - - (144) ------------------------------------------------------------------------------------------------Balance at 30 September 2007 2,353 3,007 15,533 63,777 2,091 1,340 (3,575) 84,526 ================================================================================================ CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the six months ended30 September 2006 Total equity attributable to Potential Capital equity holderSeptember 2006 Share capital Share premium Merger Retained issue of redemption Translation of the parent reserve earnings shares reserve reserve company £000 £000 £000 £000 £000 £000 £000 £000 Balance at 1 April 2006 2,308 2,386 13,023 55,558 1,052 1,340 (399) 75,268 Exchange adjustment - - - - - - (1,512) (1,512) ------------------------------------------------------------------------------------------------Net income recognised directly in equity - - - - - - (1,512) (1,512) Profit for the period - - - 4,258 - - - 4,258 ------------------------------------------------------------------------------------------------Total income and expense recognised for the period - - - 4,258 - - (1,512) 2,746 Dividends paid - - - (3,240) - - - (3,240) Equity settled transactions - - - 112 - - - 112 Shares issued 6 69 393 - - - - 468 ------------------------------------------------------------------------------------------------Balance at 30 September 2006 2,314 2,455 13,416 56,688 1,052 1,340 (1,911) 75,354 ================================================================================================ CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the six months ended31st March 2007 Total equity attributable to Potential Capital equity holderMarch 2007 Share capital Share premium Merger Retained issue of redemption Translation of the parent reserve earnings shares reserve reserve company £000 £000 £000 £000 £000 £000 £000 £000 Balance at 1 April 2006 2,308 2,386 13,023 55,558 1,052 1,340 (399) 75,268 Exchange adjustment - - - - - - (2,598) (2,598) ------------------------------------------------------------------------------------------------Net income recognised directly in equity - - - - - (2,598) (2,598) Profit for the period - - - 14,403 - 14,403 ------------------------------------------------------------------------------------------------ Total income and expense recognised for the period - - 14,403 - (2,598) 11,805 Dividends paid - - - (4,282) - - - (4,282) Equity settled transactions - - - 244 - - - 244 Shares issued 9 129 393 - - - - 531 Increase in potential issue of shares - - - - 1,183 - - 1,183 ------------------------------------------------------------------------------------------------Balance at 31 March 2007 2,317 2,515 13,416 65,923 2,235 1,340 (2,997) 84,749 ================================================================================================ Notes 1. Accounting policies Basis of preparation The financial information contained in this interim report does not constitutestatutory accounts as defined in Section 240 of the Companies Act and isunaudited. The comparative figures for the financial year ended 31 March 2007 are not thecompany's statutory accounts for that financial year. Those accounts, which havebeen prepared under UK GAAP, have been reported on by the company's auditors anddelivered to the registrar of companies. The report of the auditors was (i)unqualified (ii) did not include a reference to any matters to which theauditors drew attention by way of emphasis without qualifying their report, and(iii) did not contain a statement under section 237 (2) or (3) of the CompaniesAct 1985. The AIM rules require that the next annual consolidated financial statements ofthe company for the year ended 31 March 2008 be prepared in accordance withInternational Financial Reporting Standards (IFRSs) as adopted by the EU("adopted IFRSs"). This interim financial information has been prepared on thebasis of the recognition and measurement requirements of adopted IFRSs as at 30September 2007 that are effective (or available for early adoption) as at 31March 2008, the Group's first annual reporting date at which it is required touse adopted IFRSs. Based on these adopted IFRSs, the directors have applied theaccounting policies which they expect to apply when the first annual IFRSfinancial statements are prepared for the year ending 31 March 2008. However, the adopted IFRSs that will be effective (or available for earlyadoption) in the annual financial statements for the year ending 31 March 2008are still subject to change and to additional interpretations and thereforecannot be determined with certainty. Accordingly, the accounting policies forthat annual period will be determined finally only when the annual financialstatements are prepared for the year ended 31 March 2008. Note 7 and the subsequent pages set out detailed reconciliations to show thedifferences in accounting treatment as compared to the previous UK GAAP basis ofaccounting. There are reconciliations for the Consolidated Income Statement(formerly the Consolidated Profit and Loss Account) and Consolidated BalanceSheet for the restated comparative results for the year ended 31 March 2007 andthe six months ended 30 September 2006. 2. Taxation charge Taxation for the six months to 30 September 2007 is based on the effective rateof taxation, which is estimated to apply for the year ending 31 March 2008taking into account the impact on deferred tax of the reduction in tax rate to28% from 1 April 2008. 3. Earnings per share Unaudited Unaudited 12 months to six months six months 31 March 2007 ended 30 ended 30 September September 2007 2006 £000 £000 £000 Earnings 1,418 4,258 14,403 ------------------------------------Adjusted basic earningsper share excluding exceptionalrestructuring costs and profit ondisposal of fixed assets 3.0p 9.7p 29.4p Loss per share on exceptionalrestructuring costs - (0.5p) (1.9p) Earnings per share on profit ondisposal of fixed assets - - 3.6p ------------------------------------Basic earnings per share 3.0p 9.2p 31.1p Weighted average number of shares- basic 46,600,114 46,257,862 46,278,695 Earnings per share - diluted 3.0p 9.1p 30.6p Weighted average number of shares - diluted 47,381,362 47,003,239 46,998,106 4. Restructuring costs The restructuring costs of £304,000 during the six months ended 30 September2006 and £1,252,000 during the twelve months ended 31 March 2007 represent costsincurred in relation to the restructuring of the Group's UK operations in orderto maintain competitiveness. 5. Acquisitions The following acquisitions took place during the period. Provisional fairvalues have been attributed to assets and liabilities acquired. a) On 4 April 2007, the Group acquired 100% of the issued share capital of Weltec Holding BV, a distributor of photographic frames based in Holland, for €415,000, paid in cash. During the period 4 April 2007 to 30 September 2007, the Group's results include turnover of £2.0 million, interest payable for £29,000 and a loss before tax of £139,000 attributable to Weltec. b) On 17 May 2007, the group acquired the business and assets of Przedsiebiorstwp Produckcyjno-Handlowo- Uslugowe Artex ("Artex"), a supplier of giftwrap and greetings products based in Poland, for a consideration of €760,000, paid in cash. During the period 17 May 2007 to 30 September 2007, the Group's results include turnover of £139,000 and a loss before tax of £121,000 attributable to Artex. c) On 27 July 2007, the Group acquired 50% of the issued share capital of Halloween Express Inc, a franchise retailer of Halloween products based in the USA. Initial consideration of $2.65 million was paid, $1.65 million in cash and $1 million by the issue of 119,948 new ordinary shares. Further additional payments of up to $5.5 million may be payable, of which $800k may be paid by the issue of new ordinary shares, dependant on future profitability of the business. On the same date, the Group also acquired a 50% interest in the share capital of two newly formed companies based in the USA, Asadart LLC inc and Vizterra LLC inc. Asadart is an internet retailer of Halloween and Christmas products and Vizterra operated as a seasonal retailer selling Halloween and Christmas products. During the period 27 July 2007 to 30 September 2007, the Group's results include its share of these associates losses after tax of £343,000. d) On 4 September 2007, the Group acquired 100% of the issued share capital of Glitterwrap Inc, a supplier of giftwrap and partyware products based in the USA. Initial consideration of $2.8 million was paid, $1.5 million in cash and $1.3 million by the issue of 232,024 new ordinary shares. Additional deferred consideration of $5.7 million is payable with up to $3.47 million payable by the issue of new ordinary shares. During the period 4 September 2007 to 30 September 2007, the Group's results include turnover of £1.85 million, interest payable of £29,000 and profit before tax of £230,000 attributable to Glitterwrap. 6. Share based payments The fair value of services received in return for share options granted toemployees are measured by reference to the fair value of share options granted.The estimate of the fair value of the services received is measured based on theBlack Scholes model (with the contractual life of the option and expectations ofearly exercise incorporated into the model). The charge for the six months ended30 September 2007 was £65,000. 7. Transition to IFRS As stated in the accounting policies note, these are the Group's first condensedconsolidated interim financial statements for part of the period covered by thefirst IFRS annual consolidated financial statements prepared in accordance withadopted IFRS. An explanation of how the transition from UK GAAP to adopted IFRS has affectedthe Group's financial position, financial performance and cash flows is set outin the following tables and notes that accompany the tables. The transition toIFRS has not resulted in any impact on cash flows. The cash flow statement haschanged in terms of presentation only. There have been no changes to theaccounting policies presented in the 2007 financial statements other than in theareas below. Goodwill Subject to the transitional relief in IFRS 1, all business combinations areaccounted for by applying the purchase method. Goodwill represents amountsarising on acquisition of subsidiaries, associates and Jointly ControlledEntities. In respect of business acquisitions that have occurred since 1 April2006, goodwill represents the difference between the cost of the acquisition andthe fair value of the net identifiable assets acquired. Identifiable intangiblesare those which can be sold separately or which arise from legal rightsregardless of whether those rights are separable. Provisional fair values havebeen assigned to assets and liabilities in accordance with IFRS 3 'Businesscombinations' and will be finalised in the financial statements for the yearended 31 March 2008. Goodwill is stated at cost less any accumulated impairment losses. Goodwill isallocated to cash-generating units and is not amortised but is tested annuallyfor impairment. In respect of associates, the carrying amount of goodwill isincluded in the carrying amount of the investment in the associate. IFRS 1 grants certain exemptions from the full requirements of Adopted IFRSs inthe transition period. The Group elected not to restate business combinationsthat took place prior to 1 April 2006. In respect of acquisitions prior to 1April 2006, goodwill is included at 1 April 2006 on the basis of its deemedcost, which represents the amount recorded under UK GAAP which was broadlycomparable save that only separable intangibles were recognised and goodwill wasamortised. Negative goodwill arising on an acquisition is recognised in profitor loss. Under UK GAAP the Group's policy was to amortise goodwill over 10 - 30 years.Under IFRS 3 there is no amortisation of goodwill, so the goodwill amortisationcharge of £1,458,000 for the year ended 31 March 2007 and £669,000 for the sixmonths ended 30 September 2006 has been excluded from the restated accounts. Forward contracts Derivative financial instruments Derivative financial instruments are recognised at fair value. The gain or losson re-measurement to fair value is recognised immediately in profit or loss.However, where derivatives qualify for hedge accounting, recognition of anyresultant gain or loss depends on the nature of the item being hedged (seebelow). The fair value of forward exchange contracts is their quoted market price at thebalance sheet date. Cash flow hedges Where a derivative financial instrument is designated as a hedge of thevariability in cash flows of a recognised asset or liability, or a highlyprobable forecast transaction, the effective part of any gain or loss on thederivative financial instrument is recognised directly in the hedging reserve.Any ineffective portion of the hedge is recognised immediately in the incomestatement. Under UK GAAP, no adjustment was made to reflect the fair value of forwardexchange contracts entered into by the Group. A charge of £401,000 (before taxattributable of £120,000) for the year ended 31 March 2007 and £305,000 (beforetax attributable of £91,000) for the six months ended 30 September 2006 has beenincluded in the restated accounts to reflect the change in the fair values ofthese financial instruments during these periods as the criteria for hedging wasnot met. Deferred tax Deferred tax is provided on temporary differences between the carrying amountsof assets and liabilities for financial reporting purposes and the amounts usedfor taxation purposes. The following temporary differences are not provided for:the initial recognition of goodwill; the initial recognition of assets orliabilities that affect neither accounting nor taxable profit other than in abusiness combination, and differences relating to investments in subsidiaries tothe extent that they will probably not reverse in the foreseeable future. Theamount of deferred tax provided is based on the expected manner of realisationor settlement of the carrying amount of assets and liabilities, using tax ratesenacted or substantively enacted at the balance sheet date. Under UK GAAP, the group had an unprovided deferred tax liability on gains oncapital disposals rolled over into replacement assets and where grants havereduced the tax cost of properties for use in capital gains calculations onfuture disposals. Under IFRS, there is no option to not recognise a deferred taxliability in relation to this and therefore an adjustment has been made at 1April 2006 and in the year ended 31 March 2007 to reflect the recognition ofthis liability. Impact on 1 April 2006 Retained earnings as at 1 April 2006 have been increased by £74,000,representing the fair value of financial instruments after attributable tax atthe transition date and reduced by £597,000 representing the recognition of adeferred tax liability previously unprovided. Profit and loss account Adjusted6 months to 30 September UK GAAP Adjustments IFRS2006 £000 £000 £000 Revenue 85,093 - 85,093 =============================================Operating profit beforerestructuring costsand profit on disposal of fixedassets 6,473 364 6,837 Restructuring costs (304) - (304) ---------------------------------------------Operating profit 6,169 364 6,533 Interest payable (958) - (958) ---------------------------------------------Profit before taxation 5,211 364 5,575 Taxation (1,408) 91 (1,317) Profit after taxationattributable toequity holders of the parent --------------------------------------------- company 3,803 455 4,258 ============================================= Earnings per ShareBasic 8.2p 1.0p 9.2pDiluted 8.1p 1.0p 9.1p Profit and loss account AdjustedYear ended 31 March 2007 UK GAAP Adjustments IFRS £000 £000 £000 Revenue 196,718 - 196,718 --------------------------------------------- Operating profit beforerestructuring costsand profit on disposal of fixedassets 19,430 1,057 20,487 Restructuring costs (1,252) - (1,252) Profit on disposal of fixedassets 2,240 - 2,240 ---------------------------------------------Operating profit 20,418 1,057 21,475 Interest payable (2,757) - (2,757) ---------------------------------------------Profit before taxation 17,661 1,057 18,718 Taxation (4,662) 347 (4,315) ---------------------------------------------Profit after taxationattributable to equityholders of the parentcompany 12,999 1,404 14,403 =============================================Earnings per ShareBasic 28.1p 2.9p 31.1pDiluted 27.7p 2.9p 30.6p Balance sheet Adjusted30 September 2006 UK GAAP Adjustments IFRS £000 £000 £000AssetsProperty, plant andequipment 40,017 - 40,017Intangible assets 25,422 669 26,091 ---------------------------------------------Total non-current assets 65,439 669 66,108 Current assetsInventories 62,254 - 62,254Trade and other receivables 75,460 59 75,519Cash and cash equivalents 10 - 10Investments 15 - 15 ---------------------------------------------Total current assets 137,739 59 137,798 Total assets 203,178 728 203,906 =============================================EquityIssued capital 2,314 - 2,314Share premium 2,455 - 2,455Reserves 12,845 - 12,845Potential issue shares 1,052 - 1,052Retained earnings 56,756 (68) 56,688 ---------------------------------------------Total equity attributableto equity holders of theparent company 75,422 (68) 75,354 Non-current liabilities 8,703 597 9,300 Current liabilities 119,053 199 119,252 ---------------------------------------------Total liabilities 127,756 796 128,552 ---------------------------------------------Total equity and liabilities 203,178 728 203,906 ============================================= Balance sheet Adjusted31 March 2007 UK GAAP Adjustments IFRS £000 £000 £000 AssetsProperty, plant andequipment 41,882 - 41,882Intangible assets 26,695 1,458 28,153 ---------------------------------------------Total non-current assets 68,577 1,458 70,035 Current assetsInventories 48,577 - 48,577Trade and other receivables 41,283 - 41,283Cash and cash equivalents 12,990 - 12,990Investments 20 - 20 ---------------------------------------------Total current assets 102,870 - 102,870 Total assets 171,447 1,458 172,905 ============================================= EquityIssued capital 2,317 - 2,317Share premium 2,515 - 2,515Reserves 11,759 - 11,759Potential issue shares 2,235 - 2,235Retained earnings 65,042 881 65,923 ---------------------------------------------Total equity attributableto equity holders of theparent company 83,868 881 84,749 Non-current liabilities 7,676 282 7,958 Current liabilities 79,903 295 80,198 ---------------------------------------------Total liabilities 87,579 577 88,156 ---------------------------------------------Total equity and liabilities 171,447 1,458 172,905 ============================================= This information is provided by RNS The company news service from the London Stock Exchange