Revision of Tax Charge

10 Jan 2007 07:00

Printing.com plc10 January 2007 FOR RELEASE 7.00AM 10 JANUARY 2007 Printing.com plc Revision of tax charge Current sales in line with Board's expectations Printing.com plc (the "Company") has been notified by Baker Tilly, its auditorsand tax advisers, that an error has been made in computing the Group's taxationcharge for the two years ended 31 March 2005 and 2006. As a result, the Group'stax charge in the audited accounts for those two financial years has beenunderstated by an aggregate of approximately £210,000. This amount will beincluded as a once only adjustment to the tax charge for the year ending 31March 2007 and will therefore reduce basic earnings for that year byapproximately 0.47p per share. Trading throughout the Company's franchisednetwork remains in line with the Board's expectations and, of course, has notbeen affected by this error. The error arose from an invalid claim for rollover relief on profits from thefranchising of previously Company owned Stores. As a result the relevant taxcharge was understated by approximately £90,000 for the year ended 31 March 2005and approximately £120,000 for the year ended 31 March 2006. This has served toshow a tax charge in previous years lower than the headline rate of 30%. Theincreased tax charge would have resulted in a reduction in the reported basicearnings per share for 2005 and 2006 of 7.6% and 6.6%, to 2.53p and 3.85prespectively. The financial statements for the year ending 31 March 2007 willaccordingly show an increased tax charge as a one off adjustment. The interimstatement of results for the 28 weeks ended 16 October 2006 incorporate thecorrect tax charge for that period and the stated earnings per share is notaffected by this error. Encouragingly, post the release of the Company's interim statement, salesvolumes in the 4 week periods ending 10 December and 7 January continue to be inline with the Company's internal forecast. The Directors remain optimistic thatadditional international licences will shortly be granted. For further information: Printing.com plcAlan Roberts (Finance Director) 07977 277 521Tony Rafferty (Chief Executive) 07966 517 336 Cubitt ConsultingBrian Coleman-Smith / Allison Reid 020 7367 5100 Printing.com Printing.com offers a broad product range including leaflets, booklets,postcards, promotional cards, invitations, letterheads and business cards toconsumers and small and medium sized companies. Unlike its competitors,Printing.com's Stores and Franchises do not depend on any printing equipment onlocation. The Company's printing and ancillary equipment is based at thecentralised Production Hub with the head office in Manchester. All work isproduced in full four colour rather than two colour. The printing sector hastraditionally been served by smaller printing companies or other On DemandPrinters and is estimated to be worth some £1 billion. Printing.com has three routes to market: Franchise Stores, Bolt-on Franchisesand Company owned Stores. This information is provided by RNS The company news service from the London Stock Exchange