TXH.L Regulatory News (TXH)

14 Sep 2005 14:33

Tex Holdings PLC14 September 2005 TEX HOLDINGS PLC INTERIM STATEMENT TEX HOLDINGS PLCINDEX PageChairman's statement 2Consolidated Income Statement 3Consolidated Statement of Recognised Income and Expense 3Consolidated Balance Sheet 4Consolidated Statement of Changes in Equity 5Consolidated Cash Flow Statement 6Notes to the Financial Statements 7-8Reconciliations on Transition to IFRS 9-14 TEX HOLDINGS PLCCHAIRMANS STATEMENT The interim results are based on the first six calendar months of 2005reflecting the revised year end adopted at the end of 2004, and are presented inconformance with the new International Financial Reporting Standards. Lastyear's comparative figures have been adjusted accordingly as noted in thedetailed appendices to the principal financial statements. Tex Group turnover for the six months to 30th June 2005 amounted to £15.9m,which was a rise of 4.2% on the level recorded in the comparable period of 2004.Pre-tax profit earned in the period was £527k representing an increase of 36.2%on the result shown for the first half of 2004. The impact of the transition toIFRS was fairly minimal and lifted the 2005 pre tax profit by some £24k inrespect of adjustments to pensions and leases. The Plastics Division achieved turnover of £9.6m which was up 14% on the figureof £8.4m recorded for the first half of 2004. Pre-tax profit at £427k was 7%lower than the 2004 result, mainly on account of adverse mix at the Derbyfacility. The picture is expected to be repeated in the second half, with astrong performance from Tex Plastic Products in Barnstaple, but volume andmargin challenges at Tex Industrial Plastics in Derby. The Engineering Division continued to see a depressed level of turnover at £3.1m(2004: £3.3m) as orders failed to materialise or were unsupported by acceptablefinancial documentation. However the second half is looking more promising witha number of orders recently confirmed with underlying Letters of Credit, whichat least should mean this division has turned the corner and will end the yearmodestly in profit. The Boards & Panels Division saw volumes and profits virtually unchanged fromthe previous year, with a 2005 first half turnover of £3.3m and pre-tax profitof £156k. The second half is expected to show a similar performance, withbuoyant activity for caravan components offset by weaker high street demand forpanel & display equipment. In Group terms, the current indications are that sales & profit performance willbe stronger in the second half and that Tex will generate a positive cash inflowto leave the year end drawn borrowings comfortably within agreed facilitylimits. It is thus the Board's intention to pay an interim dividend of 3.0pence, which compares with 2004 interim dividend (following the six monthstrading to 30th September 2004) of 1.5 pence. The 2005 interim dividend will bepaid on 14th October 2005 to shareholders on the register as at 30th September2005. ARB BurrowsChairman14th September 2005 TEX HOLDINGS PLCCONSOLIDATED INCOME STATEMENT 6 months ended 6 months ended 9 months ended 30.6.05 30.6.04 31.12.04 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000Sales 15,907 15,271 21,606Cost of Sales (10,369) (9,744) (15,288) --------- --------- ---------Gross Profit 5,538 5,527 6,318Selling and Marketing Costs (562) (550) (667)Administrative Expenses (4,189) (4,327) (4,890) --------- --------- ---------Operating Profit 787 650 761Finance Costs (260) (263) (389) --------- --------- ---------Profit before Income Tax 527 387 372Income Tax Expense (156) (114) (175) --------- --------- ---------Profit for the Period 371 273 197 ========= ========= ========= Basic earnings per share 5.8p 4.3p 3.0p ========= ========= =========Diluted earnings per share 5.8p 4.3p 3.0p ========= ========= ========= STATEMENT OF RECOGNISED INCOME AND EXPENSE 6 months ended 6 months ended 9 months ended 30.6.05 30.6.04 31.12.04 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000Actuarial gains/(losses)arising in defined benefitpension scheme - 13 (377)Deferred taxation arisingon actuarial gains/(losses) - (4) 113 --------- --------- ---------Net income/(expense)recognised directly inequity - 9 (264)Profit for the period 371 273 197 --------- --------- ---------Total recognised income andexpense for periodattributable to equityshareholders 371 282 (67) ========= ========= ========= Notes:1. Taxation has been computed on the basis of an expected effective CorporationTax rate of 30% (2004: 30%)2. No figures for the six months accounts to 30 June 2004 have previously beenpublished. These have been prepared from management accounts adjusted for theimpact of IFRS.3. The calculation of earnings per share is based on profit after tax and on theaverage of fully paid up shares (6,351,452 in the period under review).4. A copy of this interim report has been circulated to shareholders and will beavailable from the Company's registered office at Claydon Business Park, GippingRoad, Great Blakenham, Ipswich, Suffolk, IP6 0NL. TEX HOLDINGS PLCCONSOLIDATED BALANCE SHEET 6 months 6 months 9 months ended ended ended 30.6.05 30.6.04 31.12.04 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000ASSETSNon-Current AssetsProperty, plant andequipment 8,308 8,722 8,433Intangible Assets 252 252 252Deferred Tax Assets 334 276 347 --------- --------- --------- 8,894 9,250 9,032Current AssetsInventories 5,862 5,863 5,575Trade and other receivables 8,692 9,657 8,676 --------- --------- --------- 14,554 15,520 14,251 --------- --------- ---------Total Assets 23,448 24,770 23,283 ========= ========= =========EQUITYCapital and reserves attributable tothe Company's equity holdersShare Capital 635 635 635Other Reserves 2,906 2,906 2,906Retained Earnings 3,382 3,438 3,106 --------- --------- ---------Total Equity 6,923 6,979 6,647 ========= ========= =========LIABILITIESNon-Current LiabilitiesBorrowings 4,020 4,695 3,767Retirement BenefitObligations 2,929 2,775 2,978 --------- --------- --------- 6,949 7,470 6,745Current LiabilitiesTrade and Other Payables 7,184 7,877 5,312Current Income TaxLiabilities 237 221 537Borrowings 2,155 2,223 4,042 --------- --------- --------- 9,576 10,321 9,891 --------- --------- ---------Total Liabilities 16,525 17,791 16,636 --------- --------- ---------Total Equity andLiabilities 23,448 24,770 23,283 ========= ========= ========= TEX HOLDINGS PLCCONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share Capital Share Retained Total Capital Redemption Premium Earnings Equity Reserve Account £000 £000 £000 £000 £000Balance at 1January 2004 635 16 2,890 3,378 6,919Profit for theperiod - - - 273 273ActuarialMovement (Netof deferredtaxation) - - - 9 9Dividend Paid - - - (222) (222) -------- --------- -------- --------- --------- - - - 60 60 -------- --------- -------- --------- ---------Balance at 30June 2004 635 16 2,890 3,438 6,979 ======== ========= ======== ========= ======== Balance at 1April 2004 635 16 2,890 3,586 7,127Profit for theperiod - - - 197 197ActuarialMovement (Netof deferredtaxation) - - - (264) (264)Dividend Paid - - - (413) (413) -------- --------- -------- --------- -------- - - - (480) (480) -------- --------- -------- --------- --------Balance at 31December 2004 635 16 2,890 3,106 6,647 ======== ========= ======== ========= ======== Balance at 1January 2005 635 16 2,890 3,106 6,647Profit for theperiod - - - 371 371Actuarial Movement (Net - - - - -of deferred taxation)Dividend Paid - - - (95) (95) -------- --------- -------- --------- -------- - - - 276 276 -------- --------- -------- --------- --------Balance at 30June 2005 635 16 2,890 3,382 6,923 ======== ========= ======== ========= ======== TEX HOLDINGS PLCCONSOLIDATED CASH FLOW STATEMENT 6 months 6 months 9 months ended ended ended 30.6.05 30.6.04 31.12.04 (Unaudited) (Unaudited) (Unaudited) £000 £000 £000Cash flows from OperatingActivitiesPre tax profit 527 387 372Interest 260 263 389Depreciation of property,plant and equipment 496 474 722Net (profit)/loss on saleof property, plant andequipment (1) - (1)Movement in inventories (287) (546) (286)Movement in debtors (16) (1,340) 592Movement in creditors 1,823 1,707 (2,332) --------- --------- ---------Cash Generated fromOperations 2,802 945 (544)Interest Paid (260) (263) (389)Income Tax Paid (443) (366) 149 --------- --------- ---------Net Cash Generated fromoperating activities 2,099 316 (784) --------- --------- --------- Cash flows from InvestingActivitiesAcquisition of subsidiary,net of cash acquired - - (12)Purchases of Property,Plant and Equipment (PPE) (392) (439) (415)Proceeds from sale of PPE 22 69 24Purchases of IntangibleAssets - (252) - --------- --------- ---------Net Cash used in InvestingActivities (370) (622) (403) --------- --------- --------- Cash flows from FinancingActivitiesRepayments of borrowings (718) (462) (600)Dividends paid to Company'sShareholders (95) (222) (412) --------- --------- ---------Net Cash used in FinancingActivities (813) (684) (1,012) --------- --------- --------- Net Increase/(Decrease) inCash and Cash Equivalents 916 (990) (2,199)Cash and Cash Equivalentsat beginning of the Period (3,071) (1,233) (872) --------- --------- ---------Cash and Cash Equivalentsat end of the Period (2,155) (2,223) (3,071) ========= ========= ========= TEX HOLDINGS PLCNOTES TO THE FINANCIAL STATEMENTS Basis of preparation These are the first set of accounts prepared under International FinancialReporting Standards (IFRS) and reconciliations between UK Generally AcceptedAccounting Practice (UK GAAP), as previously reported, are set out in attachednotes. The accounting policies have been applied consistently to all periodspresented in these consolidated interim statements. Other than the accountingpolicy changes noted below, arising from the transition to IFRS, all otherpolicies remain unchanged and are detailed in full within the December 2004financial statements. The financial statements and reconciliations shown in this report have beenprepared on an historic cost basis except for certain financial instruments andpension assets and liabilities, which are measured at fair value. EU law (IAS Regulation EC 1606/2002) requires that the next annual consolidatedfinancial statements of the company, for the year ending 31 December 2005, beprepared in accordance with International Financial Reporting Standards (IFRSs)adopted for use in the EU ("adopted IFRSs"). This interim financial information has been prepared on the basis of therecognition and measurement requirements of IFRSs in issue that either areendorsed by the EU and effective (or available for early adoption) at 31December 2005 or are expected to be endorsed and effective (or available forearly adoption) at 31 December 2005, the Group's first annual reporting date atwhich it is required to use adopted IFRSs. Based on these adopted and unadoptedIFRSs, the directors have made assumptions about the accounting policiesexpected to be applied, which are as set out below, when the first annual IFRSfinancial statements are prepared for the year ending 31 December 2005. In particular, the directors have assumed that the following IFRSs issued by theInternational Accounting Standards Board and IFRIC Interpretations issued by theInternational Financial Reporting Interpretations Committee will be adopted bythe EU in sufficient time that they will be available for use in the annual IFRSfinancial statements for the year ending 31 December 2005: • IAS 19 Employee Benefits. The Group has elected to adopt the amendments to IAS19 "Employee Benefits" issued in December 2004 in advance of their effective date of 1 January 2006. The adopted IFRSs that will be effective (or available for early adoption) inthe annual financial statements for the year ending 31 December 2005 are stillsubject to change and to additional interpretations and therefore cannot bedetermined with certainty. Accordingly, the accounting policies for that annualperiod will be determined finally only when the annual financial statements areprepared for the year ending 31 December 2005. The comparative figures for the financial period ended 31 December 2004 are notthe company's statutory accounts for that financial period. Those accounts whichwere prepared under UK Generally Accepted Accounting Practices, have beenreported on by the company's auditors and delivered to the registrar ofcompanies. The report of the auditors was unqualified and did not containstatements under section 237(2) or (3) of the Companies Act 1985. TEX HOLDINGS PLCNOTES TO THE FINANCIAL STATEMENTS First time adoption of IFRSIFRS1 "First Time Adoption of International Financial Reporting Standards" setsout the approach to be followed when IFRS are applied for the first time. IFRSaccounting policies are, in general, to be applied retrospectively althoughIFRS1 provides a number of exceptions to this general principle. The Group hasmade the following choices detailed under the relevant policy headings below. AcquisitionsThe results of acquired businesses are included in the consolidated incomestatement from the date of acquisition. Goodwill is the difference between thefair value of consideration given on acquisition and the aggregate fair value ofits identifiable net assets. In accordance with IFRS3 "Business Combinations",goodwill is no longer amortised but stated at cost less any provision forimpairment in value. Goodwill is reviewed annually for any impairment in itsvalue or at such time there is an indication that its value has reduced. Fixed assetsThe Group has opted to treat the revalued freehold land and buildings book valueas the deemed cost on fixed assets. Leased assetsLeases in terms of which the Group assumes substantially all of the risks andrewards of ownership are classified as finance leases. The owner-occupiedproperty acquired by way of a finance lease is stated at an amount equal to thelower of its fair value and the present value of the minimum lease payments atinception of the lease, less accumulated depreciation and impairment losses. PensionsThe expense of defined benefit pension schemes is determined using the projectedunit method and charged to the income statement based on actuarial assumptionsat the beginning of the financial year. Actuarial gains and losses arerecognised in full in the statement of recognised income and expense in theperiod in which they occur. Net pension obligations are included in the balancesheet at the present value of the scheme liabilities, less the fair value of thescheme assets. Deferred taxationDeferred tax is provided using the balance sheet liability method, providing fortemporary differences between the carrying amounts of assets and liabilities forfinancial reporting purposes and the amounts used for taxation purposes. Thefollowing temporary differences are not provided for: goodwill not deductiblefor tax purposes; the initial recognition of assets or liabilities that affectneither accounting nor taxable profit; and differences relating to investmentsin subsidiaries to the extent that they will probably not reverse in theforeseeable future. The amount of deferred tax provided is based on the expectedmanner of realisation or settlement of the carrying amount of assets andliabilities, using tax rates enacted or substantively enacted at the balancesheet date. A deferred tax asset is recognised only to the extent that it is probable thatfuture taxable profits will be available against which the asset can beutilised. Deferred tax assets are reduced to the extent that it is no longerprobable that the related tax benefit will be realised. TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSUnaudited income statement reconciliation for the nine months to 31st December2004 UK GAAP IAS10 IAS12 IAS17 IAS19 IAS38 IFRS1 IFRS Post Deferred Leases Employee Goodwill Revaluation Balance Taxation Benefits Sheet Dividends Reserve £000 £000 £000 £000 £000 £000 £000 £000 Sales 21,606 - - - - - - 21,606Cost of (15,288) - - - - - - (15,288)Sales ------ ------ ------ ------ ------ ------ ------ ------Gross Profit 6,318 - - - - - - 6,318Selling andMarketingCosts (667) - - - - - - (667)AdministrativeExpenses (5,100) - - 36 162 12 - (4,890) ------ ------ ------ ------ ------ ------ ------ ------OperatingProfit 551 - - 36 162 12 - 761Finance (249) - - (51) (89) - - (389)Costs ------ ------ ------ ------ ------ ------ ------ ------Profit beforeIncome Tax 302 - - (15) 73 12 - 372Income TaxExpense (158) - - 5 (22) - - (175) ------ ------ ------ ------ ------ ------ ------ ------Profit for thePeriod 144 - - (10) 51 12 - 197 ====== ====== ====== ====== ====== ====== ====== ====== TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSUnaudited balance sheet reconciliation at 31st December 2004 UK IAS10 IAS12 IAS17 IAS19 IAS38 IFRS1 IFRS GAAP Post Deferred Leases Employee Goodwill Revaluation Balance Taxation Benefits Reserve Sheet Dividends £000 £000 £000 £000 £000 £000 £000 £000ASSETSNon-CurrentAssetsProperty,plant andequipment 6,615 - - 1,818 - - - 8,433IntangibleAssets 236 - - - - 16 - 252Deferred TaxAssets - - (147) - 494 - - 347 ------ ------ ------ ------ ------ ------ ------ ------ 6,851 - (147) 1,818 494 16 - 9,032CurrentAssetsInventories 5,575 - - - - - - 5,575Trade andotherreceivables 8,836 - - - (160) - - 8,676 ------ ------ ------ ------ ------ ------ ------ ------ 14,411 - - - (160) - - 14,251 ------ ------ ------ ------ ------ ------ ------ ------Total 21,262 - (147) 1,818 334 16 - 23,283Assets ====== ====== ====== ====== ====== ====== ====== ======EQUITYCapital andreservesattributableto theCompany'sequityholdersShare 635 - - - - - - 635CapitalOther 3,397 - - - - - (491) 2,906ReservesRetainedEarnings 5,011 190 (147) (258) (2,197) 16 491 3,106 ------ ------ ------ ------ ------ ------ ------ ------Total 9,043 190 (147) (258) (2,197) 16 - 6,647Equity LIABILITIESNon-CurrentLiabilitiesBorrowings 1,580 - - 2,187 - - - 3,767DeferredIncome TaxLiabilities 558 - - (111) (447) - - -RetirementBenefitObligations - - - - 2,978 - - 2,978 ------ ------ ------ ------ ------ ------ ------ ------ 2,138 - - 2,076 2,531 - - 6,745CurrentLiabilitiesTrade andOther 5,312 - - - - - - 5,312PayablesCurrentIncomeTax 537 - - - - - - 537LiabilitiesBorrowings 4,042 - - - - - - 4,042ProvisionsforOtherLiabilities 190 (190) - - - - - -and Charges ------ ------ ------ ------ ------ ------ ------ ------ 10,081 (190) - - - - - 9,891 ------ ------ ------ ------ ------ ------ ------ ------TotalLiabilities 12,219 (190) - 2,076 2,531 - - 16,636 ------ ------ ------ ------ ------ ------ ------ ------Total EquityandLiabilities 21,262 - (147) 1,818 334 16 - 23,283 ====== ====== ====== ====== ====== ====== ====== ====== TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSUnaudited income statement reconciliation for the six months to 30th June 2004 UK IAS10 IAS12 IAS17 IAS19 IAS38 IFRS1 IFRS GAAP Post Deferred Leases Employee Goodwill Revaluation Balance Taxation Benefits Reserve Sheet Dividends £000 £000 £000 £000 £000 £000 £000 £000Sales 15,271 - - - - - - 15,271Cost of (9,744) - - - - - - (9,744)Sales ------ ------ ------ ------ ------ ------ ------ ------Gross Profit 5,527 - - - - - - 5,527Selling andMarketingCosts (550) - - - - - - (550)AdministrativeExpenses (4,443) - - 24 84 8 - (4,327) ------ ------ ------ ------ ------ ------ ------ ------OperatingProfit 534 - - 24 84 8 - 650Finance (153) - - (34) (76) - - (263)Costs ------ ------ ------ ------ ------ ------ ------ ------Profit beforeIncome Tax 381 - - (10) 8 8 - 387Income TaxExpense (114) - - 3 (3) - - (114) ------ ------ ------ ------ ------ ------ ------ ------Profit for thePeriod 267 - - (7) 5 8 - 273 ====== ====== ====== ====== ====== ====== ====== ====== TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSUnaudited balance sheet reconciliation at 30th June 2004 UK IAS10 IAS12 IAS17 IAS19 IAS38 IFRS1 IFRS GAAP Post Deferred Leases Employee Goodwill Revaluation Balance Taxation Benefits Reserve Sheet Dividends £000 £000 £000 £000 £000 £000 £000 £000ASSETSNon-CurrentAssetsProperty,plant andequipment 6,868 - - 1,854 - - - 8,722IntangibleAssets 244 - - - - 8 - 252Deferred TaxAssets - - (147) - 423 - - 276 ------ ------ ------ ------ ------ ------ ------ ------ 7,112 - (147) 1,854 423 8 - 9,250CurrentAssetsInventories 5,863 - - - - - - 5,863Trade andotherreceivables 10,080 - - - (423) - - 9,657 ------ ------ ------ ------ ------ ------ ------ ------ 15,943 - - - - - - 15,520 ------ ------ ------ ------ ------ ------ ------ ------Total 23,055 - (147) 1,854 - 8 - 24,770Assets ====== ====== ====== ====== ====== ====== ====== ======EQUITYCapital andreservesattributableto theCompany'sequityholdersShare 635 - - - - - - 635CapitalOther 3,397 - - - - - (491) 2,906ReservesRetainedEarnings 4,997 412 (147) (251) (2,072) 8 491 3,438 ------ ------ ------ ------ ------ ------ ------ ------Total 9,029 412 (147) (251) (2,072) 8 - 6,979Equity LIABILITIESNon-CurrentLiabilitiesBorrowings 2,482 - - 2,213 - - - 4,695DeferredIncome TaxLiabilities 565 - - (108) (457) - - -RetirementBenefitObligations - - - - 2,775 - - 2,775 ------ ------ ------ ------ ------ ------ ------ ------ 3,047 - - 2,105 2,318 - - 7,470CurrentLiabilitiesTrade andOther 8,116 - - - (239) - - 7,877PayablesCurrentIncomeTax 228 - - - (7) - - 221LiabilitiesBorrowings 2,223 - - - - - - 2,223ProvisionsforOtherLiabilities 412 (412) - - - - - -and Charges ------ ------ ------ ------ ------ ------ ------ ------ 10,979 (412) - - (246) - - 10,321 ------ ------ ------ ------ ------ ------ ------ ------TotalLiabilities 14,026 (412) - 2,105 2,072 - - 17,791 ------ ------ ------ ------ ------ ------ ------ ------Total EquityandLiabilities 23,055 - (147) 1,854 - 8 - 24,770 ====== ====== ====== ====== ====== ====== ====== ====== TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSUnaudited balance sheet reconciliation at 31st December 2003 UK IAS10 IAS12 IAS17 IAS19 IAS38 IFRS1 IFRS GAAP Post Deferred Leases Employee Goodwill Revaluation Balance Taxation Benefits Reserve Sheet Dividends £000 £000 £000 £000 £000 £000 £000 £000ASSETSNon-CurrentAssetsProperty,plant andequipment 6,310 - - 1,889 - - - 8,199Intangible - - - - - - - -AssetsDeferred TaxAssets - - (147) - 505 - - 358 ------ ------ ------ ------ ------ ------ ------ ------ 6,310 - (147) 1,889 505 - - 8,557CurrentAssetsInventories 5,317 - - - - - - 5,317Trade andotherreceivables 8,767 - - - (450) - - 8,317 ------ ------ ------ ------ ------ ------ ------ ------ 14,084 - - - 55 - - 13,634 ------ ------ ------ ------ ------ ------ ------ ------Total 20,394 - (147) 1,889 55 - - 22,191Assets ====== ====== ====== ====== ====== ====== ====== ======EQUITYCapital andreservesattributableto theCompany'sequityholdersShare 635 - - - - - - 635CapitalOther 3,397 - - - - - (491) 2,906ReservesRetainedEarnings 5,149 222 (147) (244) (2,093) - 491 3,378 ------ ------ ------ ------ ------ ------ ------ ------Total 9,181 222 (147) (244) (2,093) - - 6,919Equity LIABILITIESNon-CurrentLiabilitiesBorrowings 2,048 - - 2,238 - - - 4,286DeferredIncome TaxLiabilities 497 - - (105) (392) - - -RetirementBenefitObligations - - - - 2,821 - - 2,821 ------ ------ ------ ------ ------ ------ ------ ------ 2,545 - - 2,133 2,429 - - 7,107CurrentLiabilitiesTrade andOther 6,419 - - - (281) - - 6,138PayablesCurrentIncomeTax 551 - - - - - - 551LiabilitiesBorrowings 1,476 - - - - - - 1,476ProvisionsforOtherLiabilities 222 (222) - - - - - -and Charges ------ ------ ------ ------ ------ ------ ------ ------ 8,668 (222) - - (281) - - 8,165 ------ ------ ------ ------ ------ ------ ------ ------TotalLiabilities 11,213 - - 2,133 2,148 - - 15,272 ------ ------ ------ ------ ------ ------ ------ ------Total EquityandLiabilities 20,394 - (147) 1,889 55 - - 22,191 ====== ====== ====== ====== ====== ====== ====== ====== TEX HOLDINGS PLCRECONCILIATIONS ON TRANSITION TO IFRSNOTES IAS 10IAS 10 states that if an entity declares dividends to holders of equityinstruments after the balance sheet date, the entity shall not recognise thosedividends as a liability at the balance sheet date. Therefore adjustment hasbeen made to remove proposed dividends from the figures and adjust to reflectonly dividends declared. IAS 12IAS12 states deferred tax should be provided on all taxable temporarydifferences. Therefore adjustment has been made to recognise deferred tax on alltemporary differences. The adjustment reflected in the reconciliation relates tothe deferred tax liability arising in respect of the UK GAAP revaluationreserve. IAS 17The accounting for assets held under a finance lease has not changed under IAS17, however the definition of a finance lease has been amended, and is moredependent upon substance of the transaction rather than the form of thecontract. A review of the property leases has been undertaken and the balancesheet has been adjusted to reflect the assets and the corresponding leaseliability. The rental charges previously taken through the profit and lossaccount have been written back and replaced with depreciation and the financecost of the leases. IAS 19The requirements of IAS 19 are similar to FRS17 in that a defined benefit schemesurplus or deficit should be recognised on the face of the balance sheet. Theresult of this has been that the retirement benefit obligation has been shownupon the balance sheet as a non-current liability for the three reporting dates. Deferred tax charged on the pension fund actuarial gain/loss taken through theSORIE has also been charged through the SORIE in accordance with IAS 12. IAS 38Cumulative amortisation to December 2004 has been written back. IFRS1The revalued amounts have been retained as the deemed cost on transition to IFRSand the associated valuation reserve has been transferred to retained earnings. This information is provided by RNS The company news service from the London Stock Exchange