NSH.L Regulatory News (NSH)

18 Sep 2007 07:00

Norish PLC18 September 2007 NORISH PLC 2007 INTERIM RESULTS AND TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS Norish plc Part 1: Interim results Results Norish plc announces pre-tax profits of £320,000 for the six months ended 30June 2007. This compares with pre-tax profits of £284,000 for the same periodlast year. Turnover from continuing operations increased by £323,000 to£5,550,000. Earnings per share increased to 2.5p compared to 2.1p for the sameperiod last year. All our cold stores preformed better than the first six months last year. Our ambient food storage business started the year with full occupancy which hassubsequently reduced. We expect to see volumes reduce further in the second halfof the year. Outlook We have had a better than expected first half and have no reason to believe thatthis will not continue into the second half of the year. However, the reductionin volumes at our ambient food storage business will have some adverse impact onour profitability. Board Changes Raymond French was appointed to the board on 1 March 2007. He is currentlyChairman of International Securities Trading Corporation and a Director of thefunds of Global Asset Management (GAM) and Anglo Irish Bank Corporation (IOM)PLC. Financial Strength Shareholders funds at 30 June 2007 were £6,505,000 compared with £6,297,000 at31 December 2006. Net debt at 30 June 2007 was £6,350,000, compared with a netdebt of £6,416,000 at 31 December 2006. Dividend The Board has decided not to declare an interim dividend. Ted O'NeillChairman 18 September 2007 Norish plcConsolidated Income StatementFor the six months ended 30 June 2007 Six months Six months Six months Year ended ended ended ended 30 June 30 June 30 June 31 December 2007 2007 2006 2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) £'000 •'000 £'000 £'000 Continuing operationsRevenue 5,550 8,162 5,227 10,671Cost of sales (4,924) (7,241) (4,575) (9,474) -------- -------- -------- --------Gross profit 626 921 652 1,197 -------- -------- -------- --------Administrative expenses (144) (212) (204) (368) -------- -------- -------- --------Operating profit from continuing operations 482 709 448 829 -------- -------- -------- --------Finance expenses (215) (316) (211) (425)Finance income 53 78 47 84 -------- -------- -------- --------Profit on continuing activities before taxation 320 471 284 488 -------- -------- -------- --------Tax on profit on ordinary activities (112) (165) (102) (190) -------- -------- -------- --------Profit for the period attributable to shareholders 208 306 182 298 ======== ======== ======== ======== Profit per share expressed in pence per share:From continuing operations - basic 2.5p 3.6c 2.1p 3.5p- diluted 2.5p 3.6c 2.1p 3.5p Note : The unaudited financial information presented in pounds sterling as ofand for the period ended 30 June 2007 is also expressed in Euro, solely forconvenience, at the rate of €1 = £0.68, the closing rate for the period. Norepresentation is made that the pounds sterling amounts have been, could havebeen or could be converted into Euro at that or any other rate. Norish plcInterim Balance SheetAs at 30 June 2007 As at As at As at 30 June 30 June 31 December 2007 2006 2006 (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) £'000 £'000 £'000AssetsNon current assetsGoodwill 216 216 216Property, plant and equipment 12,715 13,006 12,903 --------- ---------- --------- 12,931 13,222 13,119 --------- ---------- ---------Current assetsTrade and other receivables 2,909 2,681 2,762Financial assets: Fair value ofinterest rate swaps 82 22 44Cash and cash equivalents 400 508 584 --------- ---------- --------- 3,391 3,211 3,390 --------- ---------- ---------LiabilitiesCurrent liabilitiesTrade and other payables (2,116) (2,207) (2,394)Current tax liabilities (275) (83) (154)Bank overdraft and loans (500) (500) (500) --------- ---------- --------- (2,891) (2,790) (3,048) --------- ---------- --------- --------- ---------- ---------Net current assets 500 421 342 --------- ---------- ---------Non-current liabilitiesBank loans (6,250) (6,750) (6,500)Deferred tax (676) (640) (664) --------- ---------- --------- (6,926) (7,390) (7,164) --------- ---------- ---------Net assets 6,505 6,253 6,297 ======== ======== ======== EquityShare capital 1,493 1,493 1,493Share premium account 3,156 3,156 3,156Capital conversion reserve fund 23 23 23Retained earnings 1,833 1,581 1,625 --------- ---------- ---------Equity attributable to equityholders of the parent 6,505 6,253 6,297 ======== ======== ======== Norish plcConsolidated Statement of Changes in EquityFor the six months ended 30 June 2007 Capital Share Share Conversion Retained capital premium Reserve earnings Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) £'000 £'000 £'000 £'000 £'000 At 1 January 2006 1,493 3,156 23 1,471 6,143 Net profit for the period - - - 182 182Equity dividends paid (recogniseddirectly in equity) - - - (72) (72) -------- -------- ------- -------- --------At 30 June 2006 1,493 3,156 23 1,581 6,253 -------- -------- ------- -------- -------- Net profit for the period - - - 116 116Equity dividends paid (recogniseddirectly in equity) - - - (72) (72) -------- -------- ------- -------- --------At 31 December2006 1,493 3,156 23 1,625 6,297 -------- -------- ------- -------- -------- Net profit for the period - - - 208 208 -------- -------- ------- -------- --------At 30 June 2007 1,493 3,156 23 1,833 6,505 ======== ======== ======= ======== ======== Norish plcConsolidated Cash Flow StatementFor the six months ended 30 June 2007 Six months Six months Year ended ended ended 30 June 30 June 31 December 2007 2006 2006 (Unaudited) (Unaudited) (Unaudited) (Restated) (Restated) £'000 £'000 £'000 Profit on continuing activities before taxation 320 284 488Adjustments for:Finance expenses 215 211 425Finance income (53) (47) (84)Depreciation - property, plant andequipment 264 287 521 Changes in working capital:(Increase)/decrease in trade andother receivables (147) 223 142Decrease in payables (278) (197) (15) ---------- -------- --------Cash generated from operations 321 761 1,477 ---------- -------- --------Cash absorbed by operating activitiesInterest paid - bank loans and overdrafts (215) (211) (420)Taxation received 21 187 194 ---------- -------- --------Net cash absorbed by operating activities (194) (24) (226) ---------- -------- --------Investing activitiesInterest received 15 25 40Purchase of property, plant and equipment (76) (216) (347) ---------- -------- --------Net cash used in investing activities (61) (191) (307) ---------- -------- --------Financing activitiesDividends paid to shareholders - (72) (144) ---------- -------- --------Net cash from financing activities - (72) (144) ---------- -------- -------- ---------- -------- --------Net increase/(decrease) in cash andcash equivalents 66 474 800 ---------- -------- -------- Cash and cash equivalents at thebeginning of the period (6,416) (7,216) (7,216) ---------- -------- --------Cash and cash equivalents at end ofperiod (6,350) (6,742) (6,416) ---------- -------- -------- Norish plcNotes to the Interim Financial StatementsFor the six months ended 30 June 2007 1. Basis of preparation These interim financial statements are the first interim financial statementsfollowing the adoption of International Financial Reporting Standards ("IFRS").As the Group has not previously published a full set of financial statementsunder IFRS, Part 2 of this announcement contains reconciliations of net assetsand equity from previously reported amounts under UK Generally AcceptedAccounting Principles ("UK GAAP") for the six months ended 30 June 2006 and theyear ended 31 December 2006 along with explanations of the changes. Theserestated financial figures will be the principal comparative figures in the 2007financial statements and have been released to provide a more detailed analysisof the impact of adopting IFRS on the Group. Also included as Appendix 1 of thisannouncement are the restated Group accounting policies that the Directorsanticipate will be complied with in the annual financial statements. The financial information has been prepared in accordance with all IFRS andInternational Financial Reporting Interpretations Committee ("IFRIC")interpretations that had been published by 30 June 2007 and which apply toaccounting periods beginning on or after 1 January 2006. The standards used arethose endorsed by the EU together with those standards and interpretations thathave been issued by the International Accounting Standards Board ("IASB") buthad not been endorsed by the EU by 30 June 2007. Further standards and interpretations may be issued that will be applicable forfinancial years beginning on or after 1 January 2006 or that are applicable tolater accounting periods but may be adopted early. The Group's first full IFRSAnnual Report to 31 December 2007 may, therefore, be prepared in accordance withsome different accounting policies from the information presented here. This interim report, which comprises the consolidated interim balance sheet asat 30 June 2007 and the related consolidated interim statements of income, cashflows and changes in shareholders' equity for the six months then ended andrelated notes, is unaudited and does not constitute audited accounts within themeaning of the Companies Act 1985. The accounts for the year ended 31 December2006, on which the auditors gave an unqualified audit opinion, were prepared inaccordance with UK GAAP and not in accordance with IFRS and IFRICinterpretations, and have been filed with the Registrar of Companies. 2. Copies of the interim financial statements A copy of the interim report will be available from our UK office at: Northern Way, Northern Industrial Estate, Bury St Edmunds, Suffolk, IP32 6NL or can be downloaded from our website at www.norish.com. 3. Information for shareholders The Company's share register and related records are maintained by ComputershareServices (Ireland) Ltd., to whom shareholder enquires, should be addressed. Their address is Heron House, Corrig Road, Sandyford Industrial Estate, Dublin18, Ireland. Telephone +353 (1) 2163100. The group's website can be accessed at www.norish.com. Norish plcPart 2: Transition to International Financial Reporting Standards Norish plc ("the Group") today announces its interim results for the six monthsended 30 June 2007. These interim financial statements are the first financialstatements following the adoption of International Financial Reporting Standards("IFRS"). For all periods up to and including 31 December 2006, Norish plc has preparedits financial statements in accordance with UK GAAP. Therefore, the Group'sfirst published Interim Financial Statements under IFRS are in respect of thesix months ended 30 June 2007 and the first Annual Report and Accounts preparedon this basis will be for the year ended 31 December 2007. It is important to recognise that the move from UK GAAP to IFRS does not changethe cash flows of the Group nor does it impact Group strategy or commercialdecisions. 1. Introduction As the Group has not previously published a full set of financial statementsunder IFRS, this release contains reconciliations of net assets and equity frompreviously reported amounts under UK Generally Accepted Accounting Principles("UK GAAP") for the six months ended 30 June 2006 and the year ended 31 December2006. These restated financial figures will be the principal comparative figuresin the 2007 financial statements and have been released to provide a moredetailed analysis of the impact of adopting IFRS on the Group. 2. Summary of Changes The most significant changes required to the financial statements of the Grouparising from the adoption of IFRS are: • The cessation of goodwill amortisation; • The recording of a holiday pay accrual; and • The measurement of derivative financial instruments at fair value. The restated accounting policies and reconciliations between financial statements previously presented under UK GAAP and the IFRS presentation are included in the following appendices: Appendix 1: Restatement of Group accounting policiesAppendix 2: Restatement of the balance sheet as at 1 January 2006Appendix 3: Restatement of the income statement for the year ended 31 December 2006Appendix 4: Restatement of the balance sheet as at 31 December 2006Appendix 5: Restatement of the cash flow statement for the year ended 31 December 2006 3. Summary of Impacts to Financial Statements 3.1 Summary Income Statement Impact for the Year Ended 31 December 2006 The table below shows the impact of IFRS adoption on the Group consolidatedincome statement for the six months ended 30 June 2006 and the year ended 31December 2006: 6 months ended Year ended 30 June 2006 31 December 2006 £'000 £'000 Reported profit - UK GAAP 180 253IFRS adjustments (with paragraph references):5.1: IFRS 3 "Business Combinations" 7 155.2: IAS 19 "Employee Benefits" (20) (1)5.3: IAS 39 "Financial Instruments" (net of deferred tax) 15 31 ----------- -----------Sub total of adjustments 2 45 ----------- -----------Restated profit - IFRS 182 298 =========== =========== 3.2 Net Asset Adjustments The table below shows the impact of IFRS adoption on the Group consolidated netassets at 1 January 2006, at 30 June 2006 and at 31 December 2006: As at As at As at 31 December 30 June 1 January 2006 2006 2006 £'000 £'000 £'000 Total shareholders' equity - UK GAAP 6,254 6,253 6,145IFRS Adjustments (with paragraph references):5.1: IFRS 3 "Business Combinations" 15 7 -5.2: IAS 19 "Employee Benefits" (3) (22) (2)5.3: IAS 39 "Financial Instruments"(net of deferred tax) 31 15 - --------- --------- ---------Sub total of adjustments 43 - (2) --------- --------- ---------Total shareholders' equity - IFRS 6,297 6,253 6,143 ========= ========= ========= 4. Transitional arrangements Under the provisions of IFRS 1 "First time Adoption of IFRS" specific exemptionsmay be applied in certain areas as part of the transition of the financialstatements to IFRS. The Group has elected to apply the following exemptions: IFRS 2 "Share-based Payment" IFRS 2 has been adopted from the transition date and is only being appliedto share options granted on or after 7 November 2002 that had not vested on 1 January 2006, the date of transition to IFRS. All options outstanding at the transition date were granted before 7 November2002 and no options have been granted since, therefore the Group has notrecorded a charge to the income statement in the year ended 31 December 2006, orin the 6 months ended 30 June 2007. IFRS 3 "Business Combinations" IFRS 3 has been adopted from the transition date and is only being applied toacquisitions made on or after 1 January 2006. IFRS 3 also requires goodwill to be carried at cost with impairment reviewscarried out at least annually. The Group has applied the standard from thetransition date and so the net carrying value of goodwill at 31 December 2005has been brought forward as the cost at 1 January 2006, with no amortisationcharge from that date. In addition, intangible assets that were previously included within goodwillbecause they could not be sold separately without disposing of the business ofthe entity, are not required to be shown separately for acquisitions made before1 January 2006. 5. Details of Changes 5.1 IFRS 3 "Business Combinations" IFRS 3 deals with accounting for business combinations including goodwill andintangible fixed assets. Under UK GAAP, the Group adopted FRS 10 "Goodwill and intangible assets", from 1January 1997 and goodwill arising on acquisitions after this date wascapitalised and amortised over its useful economic life, which was presumed tobe twenty years. Goodwill arising before this date was eliminated againstreserves. In addition, the Group tested for impairment when there was anindication that the carrying value of an asset might be impaired. Under IFRS 3, goodwill is no longer amortised, and impairment tests areperformed annually or whenever there is an indication that the carrying value ofan asset might be impaired. At the transition date, the Group had goodwill assets with a net book value of£216,000 which under the transitional arrangements laid out in IFRS 1 was deemedto be the cost carried forward for this asset from that date. During the year ended 31 December 2006, under UK GAAP, a goodwill amortisationcharge of £15,000 was made, which has been credited back to the income statementunder IFRS. No acquisitions were made by the Group after 1 January 2006. 5.2 IAS 19 "Employee Benefits" IAS 19 requires companies to make an accrual for holiday pay. At the date oftransition a £2,000 holiday pay accrual was recognised with a correspondingadjustment being made to retained earnings. At 31 December 2006, the accrualincreased to £3,000. At 30 June 2007, the accrual is £23,000. IAS 39 "Financial Instruments" In March 2006, the Group entered into an interest swap agreement to hedge toGroup's interest rate exposure. Under UK GAAP, the Group's policy was that swapinstruments were not recognised until the hedged future transaction occurred,when the gain or loss was recorded in the Profit and Loss account to offset thegain or loss on the hedged item. Under IAS 39, such an instrument is classified as "fair value through profit andloss" and is required to be recorded at its fair value at each balance sheetdate, with movements in the fair value recorded in the income statement, unlesshedge accounting criteria are met. The Group does not meet the hedge accounting criteria set out within thisstandard, therefore the movement in the fair value of the swap has been recordedin the Income Statement. At 31 December 2006, the fair value of the hedge was£44,000. Norish plcTransition to International Financial Reporting StandardsAppendix 1Restatement of Group Accounting Policies Introduction Following are the restated Group accounting policies that the Directors haveestablished in order to produce the interim financial statements in accordancewith IFRS and which the Directors anticipate will be complied with in the annualfinancial statements for the year ending 31 December 2007, the Group's firstIFRS financial statements. The date of transition to IFRS for the Group is 1January 2006. These accounting policies are based on the assumption that allexisting standards in issue from the IASB will be fully endorsed by the EU,however, these are subject to ongoing amendment by the IASB and subsequentendorsement by the EU, and are therefore subject to possible change. The consolidated financial statements will be prepared on a historical costbasis except for certain items which will be measured at fair value, asdiscussed in the accounting policies below. Some of the policies will only be applied from 1 January 2006 because of thetransitional arrangements for first time adoption of IFRS as noted in theindividual policies where applicable. Basis of consolidation The consolidated financial statements include the results of Norish plc and itssubsidiary undertakings for that period. The results of subsidiary undertakings acquired or disposed of in the year areincluded in the consolidated Income Statement from the date of acquisition or upto the date of disposal. Upon the acquisition of a business, fair values areattributed to the identifiable net assets acquired. Goodwill arising onacquisitions is dealt with as set out below. Business combinations and goodwill Goodwill represents the excess of the fair value of the purchase considerationfor the subsidiary undertakings over the fair value of the identifiable assets,including any intangible assets identified, and liabilities of a subsidiary atthe date of acquisition. Goodwill arising on acquisitions is capitalised and subject to impairment reviewat least annually, but also when there are indications that the carrying valuemay not be recoverable. Any impairment is recognised immediately in the incomestatement and is not subsequently reversed. Prior to 1 January 1997, goodwill was written off to reserves in the year ofacquisition. Goodwill after this date until the adoption of IFRS on 1 January2006 was capitalised and amortised over its useful economic life, which waspresumed to be 20 years. The Group has elected not to apply IFRS 3 "Businesscombinations" retrospectively to business combinations that took place before 1January 2006 and, as a result, all goodwill arising from prior businesscombinations has been frozen at the transition date. Any goodwill remaining onthe balance sheet at transition is no longer being amortised but is subject toimpairment review. Property, plant and equipment Property, plant and equipment is stated at historical cost less accumulateddepreciation and any impairment in value. Historical cost includes allexpenditure that is directly attributable to the acquisition of the assets.Subsequent costs are included in the asset's carrying amount or recognised as aseparate asset, as appropriate, only when the costs provide enhancement, it isprobable that future economic benefits associated from the item will flow to theGroup and the cost of the enhancement can be measured reliably. All other repairand maintenance costs are charged to the income statement during the financialperiod in which they are incurred. With the exception of freehold land, depreciation is provided to write off thecost less the estimated residual value of property, plant and equipment by equalannual instalments over their estimated useful economic lives (or lease terms ifshorter) which are as follows: Freehold buildings 50 yearsLeasehold buildings 35 yearsPlant and equipment 3 to 14 years Freehold land is not depreciated. Impairment charges The Company considers at each reporting date whether there is any indicationthat non-current assets are impaired. If there is such an indication, theCompany carries out an impairment test by measuring the assets' recoverableamount, which is the higher of the assets' fair value less costs to sell andtheir value in use. If the recoverable amount is less than the carrying amountan impairment loss is recognised, and the assets are written down to theirrecoverable amount. Revenue recognition Revenue, which arises principally from storage and handling income, representsnet sales to customers outside the Group, and excludes Value Added Tax. Incomefrom sub-letting of warehouses is also included in revenue. An appropriate portion of handling revenue is deferred until the despatch ofgoods out. Revenue in respect of the storage is invoiced in advance and is recognised overthe period that the storage is provided Revenue from all other activities is recognised in the periods in which theservices are provided. Derivative financial instruments The Group utilises interest rate swaps to hedge against its interest rateexposure. Such instruments are classified as financial instruments at fair valuethrough profit and loss. The interest rate swaps are recorded at fair value ateach balance sheet date. Fair value is estimated using the settlement rates ateach balance sheet date. All recognised gains or losses resulting from thesettlement of the contract are recorded within Finance Expenses in the IncomeStatement. Taxation The tax expense represents the sum of the tax currently payable and deferredtax. Current tax, including Irish Corporation tax and foreign tax, is provided on theGroup's taxable profits, at amounts expected to be paid using the tax rates andlaws that have been enacted or substantially enacted by the balance sheet date. Deferred tax assets and liabilities are determined based on temporarydifferences between the financial reporting and tax bases of assets andliabilities and are measured on a non-discounted basis at the rates expected toapply when the differences are expected to reverse. Deferred tax assets are recognised to the extent that the Directors considerthat it is more likely than not that there will be suitable taxable profits fromwhich the future reversal of the underlying timing differences can be deducted.Provision is made for the tax that would arise on the remittance of the retainedearnings of overseas subsidiaries only to the extent that, at the balance sheetdate, dividends have been accrued as receivable. Foreign currencies The consolidated financial statements are presented in pounds sterling, which isthe Company's functional and presentational currency. The Group determines thefunctional currency of each entity and items included in the financialstatements of each entity are measured using that functional currency. Transactions in foreign currencies by individual entities are recorded using therate of exchange ruling at the date of the transaction. Monetary assets andliabilities denominated in foreign currencies are translated using the rate ofexchange ruling at the balance sheet date and the gains or losses on translationare included in the income statement. Government grants Capital grants received are shown as deferred income and credited to the IncomeStatement by instalments on a basis consistent with the depreciation policy ofthe relevant assets. Other grants are credited to the Income Statement to offset the matchingexpenditure. Leased assets Leases are classified as finance leases whenever the terms of the lease transfersubstantially all the risks and rewards of ownership to the lessee. All otherleases are classified as operating leases. Expenditure on operating leases is charged to the Income Statement on a basisrepresentative of the benefit derived from the asset, normally on astraight-line basis over the lease period. Benefits received as an incentive toenter into an operating lease are also spread on a straight-line basis over thelease term. Assets held under finance leases are capitalised and included in property, plantand equipment at fair value. Depreciation is calculated using expected usefullives on the same basis as owned assets or, where shorter, over the term of therelevant lease. The capital elements of obligations under finance leases arerecorded as liabilities. The interest elements of the rental obligations areallocated to accounting periods over the lease term to give a constant periodicrate of interest on the outstanding liability. Pension costs The costs of providing defined contribution pensions are charged toAdministrative expenses as they fall due. The scheme funds are administered bytrustees and are independent of the Group's finances. Differences between theamounts charged to the Income Statement and payments made to the pension schemeare treated as prepayments or accruals, as necessary. Dividends Distributions to equity holders are not recognised in the income statement, butare disclosed as a component of the movement in shareholders' equity. Dividendsunpaid at the balance sheet date are only recognised as a liability at that dateto the extent that they are appropriately authorised and no longer at thediscretion of the Company. Unpaid dividends that do not meet these criteria aredisclosed in the notes to the financial statements. Provision for impairment of trade receivables Trade receivables are first assessed individually for impairment, orcollectively where the receivables are not individually significant. Where thereis no objective evidence of impairment for an individual receivable, it isincluded in a group of receivables with similar credit risk characteristics andthese are collectively assessed for impairment. Movements in the provision forimpairment of trade receivables are recorded in the income statement. Net cash and cash equivalents Net cash and cash equivalents in the balance sheet comprise cash at bank and inhand and short-term deposits with an original maturity of less than threemonths, reduced by overdrafts to the extent that there is a right of offsetagainst other cash balances. Norish plcTransition to International Financial Reporting StandardsAppendix 2Restatement of the Balance Sheet as at 1 January 2006 from UK GAAP to IFRS Reformatted Employee As restated in UK GAAP as benefits accordance Previsously IAS 19 with IFRS stated (Unaudited) (Unaudited) £'000 £'000 £'000AssetsNon current assetsGoodwill 216 - 216Property, plant andequipment 13,077 - 13,077 ---------- ---------- ---------- 13,293 - 13,293 ---------- ---------- ----------Current assetsTrade and otherreceivables 2,904 - 2,904Current tax assets 199 - 199Cash and cash equivalents 284 - 284 ---------- ---------- ---------- 3,387 - 3,387 ---------- ---------- ----------LiabilitiesCurrent liabilitiesTrade andother payables (2,402) (2) (2,404)Bank overdraftand loans (500) - (500) --------- --------- --------- (2,902) (2) (2,904) --------- --------- ---------- --------- --------- ---------Net current assets 485 (2) 483 --------- --------- ---------Non-current liabilitiesBank loans (7,000) - (7,000)Deferred tax (633) - (633) --------- --------- --------- (7,633) - (7,633) --------- --------- ---------Net assets 6,145 (2) 6,143 ========= ========= ========= EquityShare capital 1,493 - 1,493Share premium account 3,156 - 3,156Capital conversionreserve fund 23 - 23Retained earnings 1,473 - 1,471 --------- --------- ---------Equity attributable to equityholders of the parent 6,145 (2) 6,143 ========= ========= ========= Norish plcTransition to International Financial Reporting StandardsAppendix 3Restatement of the Income Statement for the Year Ended 31 December 2006 from UKGAAP to IFRS As restated Reformatted Business Employee Financial in UK GAAP as combinations benefits instruments accordance previously IFRS 3 IAS 19 IAS 39 with IFRS stated (Unaudited) (Unaudited) (Unaudited) (Unaudited) £'000 £'000 £'000 £'000 £'000 Continuing operationsRevenue 10,671 - - - 10,671Cost of sales (9,474) - - - (9,474) --------- --------- --------- --------- ---------Gross profit 1,197 - - - 1,197 --------- --------- --------- --------- ---------Administrative expenses (382) 15 (1) - (368) --------- --------- --------- --------- ---------Operating / profit from continuingoperations 815 15 (1) - 829 --------- --------- --------- --------- ---------Finance expenses (425) - - - (425)Finance income 40 - - 44 84 --------- --------- --------- --------- ---------Profit on continuing activitiesbefore taxation 430 15 (1) 44 488 --------- --------- --------- --------- ---------Tax on loss on ordinary activities (177) - - (13) (190) --------- --------- --------- --------- ---------Profit for the period attributableto shareholders 253 15 (1) 31 298 ========= ========= ========= ========= ========= Profit per share expressed in pence per share:From continuing operations - basic 2.99p 3.5p- diluted 2.99p 3.5p Norish plcTransition to International Financial Reporting StandardsAppendix 4Restatement of the Balance Sheet as at 31 December 2006 from UK GAAP to IFRS Reformatted Business Employee Financial As restated in UK GAAP as combinations benefits instrument accordance previously IFRS 3 IAS 19 IAS 39 with IFRS stated (Unaudited) (Unaudited) (Unaudited) (Unaudited) £'000 £'000 £'000 £'000 £'000AssetsNon current assetsGoodwill 201 15 - - 216Property, plant andequipment 12,903 - - - 12,903 --------- --------- --------- --------- --------- 13,104 15 - - 13,119 --------- --------- --------- --------- ---------Current assetsTrade and otherreceivables 2,762 - - - 2,762Financial asset: Fairvalue of interest rateswap - 44 44Cash and cashequivalents 584 - - - 584 --------- --------- --------- --------- --------- 3,346 - - 44 3,390 --------- --------- --------- --------- ---------LiabilitiesCurrent liabilitiesTrade andother payables (2,391) - (3) - (2,394)Current taxliabilities (154) - - - (154)Bank overdraftand loans (500) - - - (500) --------- --------- --------- --------- --------- (3,045) - (3) - (3,048) --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------Net current assets 301 - (3) 44 342 --------- --------- --------- --------- ---------Non-current liabilitiesBank loans (6,500) - - - (6,500)Deferred tax (651) - - (13) (664) --------- --------- --------- --------- --------- (7,151) - - (13) (7,164) --------- --------- --------- --------- ---------Net assets 6,254 15 (3) 31 6,297 --------- --------- --------- --------- --------- EquityShare capital 1,493 - - - 1,493Share premium account 3,156 - - - 3,156Capital conversionreserve fund 23 - - - 23Retained earnings 1,582 15 (3) 31 1,625 --------- --------- --------- --------- ---------Equity attributableto equity holders of theparent 6,254 15 (3) 31 6,297 --------- --------- --------- --------- --------- Norish plcTransition to International Financial Reporting StandardsAppendix 5Restatement of the Cash Flow Statement for the Year Ended 31 December 2006 fromUK GAAP to IFRS Business Employee Financial As restated in Reformatted UK combinations benefits instruments accordance with GAAP as IFRS 3 IAS 19 IAS 39 IFRS previously stated (Unaudited) (Unaudited) (Unaudited) (Unaudited) £'000 £'000 £'000 £'000 £'000Continuing operationsProfit on continuing activities beforetaxation 430 15 (1) 44 488Adjustments for:Finance expenses 425 - - - - Finance income (40) - - (44) (84)Depreciation - property, plant andequipment 521 - - - 521Amortisation of intangiblefixed assets 15 (15) - - - Changes in working capital:Decrease in trade and otherreceivables 142 - - - 142Decrease in payables (16) - 1 (15) ---------- -------- -------- --------- ----------Cash absorbed from perations 1,477 - - - 1,477 ---------- -------- -------- --------- ---------- Cash generated from/(absorbed by) operating activitiesInterest paid - bank loans and overdrafts (420) - - - (420)Taxation paid 194 - - - 194 ---------- -------- -------- --------- ----------Net cash absorbed by operatingactivities (226) - - - (226) ---------- -------- -------- --------- ---------- Investing activitiesInterest received 40 - - - 40Purchase of property, plant andequipment (347) - - - (347) ---------- -------- -------- --------- ---------Net cash used in investing activities (307) - - - (307) ---------- -------- -------- --------- ----------Financing activitiesDividends paid to shareholders (144) - - - (144) ---------- -------- -------- --------- ----------Net cash from financing activities (144) - - - (144) ---------- -------- -------- --------- ---------- ---------- -------- -------- --------- ----------Net increase in cash and cash equivalents 800 - - - 800 ---------- -------- -------- --------- ----------Cash and cash equivalents atthe beginning of the period (7,216) - - - (7,216) ---------- -------- -------- --------- ----------Cash and cash equivalents atend of period (6,416) - - - (6,416) ---------- -------- -------- --------- ---------- This information is provided by RNS The company news service from the London Stock Exchange