Business
IFRS Restatement
IFRS Restatement.
About this update from Diploma Plc
[{"type":"text","content":"\n Diploma PLC\n25 January 2006\n\nFOR IMMEDIATE RELEASE 25 January 2006\n\n\n DIPLOMA PLC\n\n THE IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ('IFRS')\n\n Restatement of 2005 Financial Information\n\n\nOn 14 November 2005, Diploma PLC ('Diploma') announced its results for the year\nended 30 September 2005 using UK Generally Accepted Accounting Principles (UK\nGAAP). This Announcement ('Announcement') restates those results under\nInternational Financial Reporting Standards ('IFRS').\n\nThe Group will prepare financial statements for the year ending 30 September\n2006 and for the half year ending 31 March 2006 in accordance with IFRS. The\nresults for the comparative year (ended 30 September 2005) will therefore be\nrestated. This Announcement shows the impact of this restatement and explains\nthe primary differences.\n\nThe move to IFRS will not impact the Group's underlying business performance, it\nwill not change the way the Group is managed and it will have no impact on cash\nflows.\n\nThe financial information in this Announcement is unaudited. It is also subject\nto possible change as the definition and interpretation of IFRS continues to\nevolve and be amended by the relevant authorities.\n\n\nSUMMARY FINANCIAL INFORMATION\n\nThe impact on the Group's consolidated financial results for the year ended 30\nSeptember 2005 is as follows:\n\n\n 2005 IFRS 2005 UK GAAP Variance\n (unaudited) (audited)\n £m £m £m\n\nTurnover 111.3 111.3 -\n\nProfit before financing and tax 16.4 14.6 +1.8\n\nFinance income 0.7 0.7 -\n\nProfit before tax 17.1 15.3 +1.8\n\n\nFree cash flow 11.9 11.9 -\nCash and cash equivalents 25.7 25.7 -\nTrading capital employed 51.4 48.5 +2.9\nTotal shareholders' equity 75.4 72.5 +2.9\n\n\nBasic earnings per share 52.0p 46.6p +5.4p\n\n\nAdjusted PBT £16.9m £16.6m +£0.3m\nAdjusted EPS 52.9p 52.4p +0.5p\n\n\n\n\nAs highlighted in the 2005 Annual Report, the most significant effects of IFRS\non the Group's financial statements include accounting for defined benefit\npension schemes, dividends, goodwill and deferred tax.\n\nThe principal measures of underlying performance in the Income Statement has, in\nthe past, been the profit before tax, goodwill amortisation and exceptional\nitems ('Adjusted PBT') and earnings per share before goodwill amortisation and\nexceptional items ('Adjusted EPS'). In th...