Spirax-Sarco Regulatory News (SPX)

12 Jul 2005 09:30

Spirax-Sarco Engineering PLC12 July 2005 Spirax-Sarco Engineering plc Charlton House Cheltenham Glos. GL53 8ER News Release Telephone: 01242 521361 Fax: 01242 581470 www.SpiraxSarcoEngineering.com 12th July 2005 Restatement of primary financial information for 2004 under International Financial Reporting Standards Spirax-Sarco Engineering plc and its subsidiaries (the Group) has for theaccounting periods up to 31st December 2004 prepared its consolidated financialstatements under UK Generally Accepted Accounting Principles (UK GAAP). From1st January 2005, the Group is required by European Directives to report itsconsolidated financial statements under International Financial ReportingStandards (IFRS). As part of this transition, the Group is presenting a restatement of its 2004results under IFRS. This will form the comparative to the 2005 Interim Reportand the 2005 Annual Report. A summary of the effect of the restatement follows:- Year ended 31st December 2004 Change in Change in UK Minorities Pensions (IAS 19) Other IFRS GAAP (IAS 27) £m Changes IFRS £m £m £m £m Revenue 325.8 (9.8) nil nil 316.0Operating profit 51.1 (2.5) (1.0) 0.4 48.0Profit before tax 50.8 (1.8) (0.7) 0.4 48.7Basic EPS (p) 43.4p nil (0.9p) 0.6p 43.1pNet assets attributable toshareholders 178.0 nil (27.0) 13.0 164.0 Six months ended 30th June 2004 Change in Change in UK Minorities Pensions (IAS 19) Other IFRS GAAP (IAS 27) £m Changes IFRS £m £m £m £m Revenue 157.7 (4.8) nil nil 152.9Operating profit 23.4 (1.1) (0.4) 0.2 22.1Profit before tax 23.1 (0.8) (0.3) 0.2 22.2Basic EPS (p) 19.6p nil (0.4p) 0.5p 19.7pNet assets attributable toshareholders 168.5 nil (30.7) 5.7 143.5 The principal changes from the transition to IFRS are: Change in minorities • Reassessing control in minority interests resulting in a change in the treatment of the Group's investments in India and Mexico on consolidation from subsidiary companies to associate companies. Although there is a reduction in 2004 sales of £9.8 million and in pre-tax profit of £1.8 million, there is no change in EPS or net assets attributable to shareholders. Change in pensions • Recognising the deficit on defined benefit pension schemes on the balance sheet and the higher income statement charge for pensions under IAS 19. For the 2004 year £27.0 million of additional balance sheet net liabilities have been recognised and the income statement charge (before tax) increases by £0.7 million. Other IFRS changes • Recording the cost of share options awarded to employees on a fair value basis. The 2004 income statement charge (before tax) increases by £0.4 million. • Ceasing goodwill amortisation (subject to annual impairment testing). The 2004 income statement reflects the reversal of the £0.7 million charge under UK GAAP. • Not accruing a liability for dividends that have not been declared or approved at the balance sheet date. Shareholders funds increase by £11.4 million at 31st December 2004. • Capitalisation of the development element of R&D expenditure under certain circumstances. Net intangible assets increase by £2.5 million (before tax effects) at 31st December 2004. Changes to the income statement are immaterial. • Providing deferred tax on property revaluations. This results in the creation of a £1.8 million deferred tax liability at 31st December 2004. The effect of the adoption of IFRS in respect of the Group's 2004 financialstatements is set out in detail in a report that can be downloaded from thecompany's website at www.SpiraxSarcoEngineering.com. Alternatively copies canbe obtained from the Company Secretary at Charlton House, Cheltenham, Glos. GL538ER. The Group intends to announce the interim results for the six months ended 30thJune 2005 on Tuesday 6th September 2005. Enquiries: Marcus Steel - Chief ExecutiveDavid Meredith - Director Finance Tel: 01242 521361Fax: 01242 581470 www.SpiraxSarcoEngineering.com This information is provided by RNS The company news service from the London Stock Exchange