Business
Revision of Tax Charge
Revision of Tax Charge.
About this update from Software Circle Plc
[{"type":"text","content":"\n Printing.com plc\n10 January 2007\n\n\nFOR RELEASE 7.00AM 10 JANUARY 2007\n\n Printing.com plc\n\n Revision of tax charge\n\n Current sales in line with Board's expectations\n\nPrinting.com plc (the 'Company') has been notified by Baker Tilly, its auditors\nand tax advisers, that an error has been made in computing the Group's taxation\ncharge for the two years ended 31 March 2005 and 2006. As a result, the Group's\ntax charge in the audited accounts for those two financial years has been\nunderstated by an aggregate of approximately £210,000. This amount will be\nincluded as a once only adjustment to the tax charge for the year ending 31\nMarch 2007 and will therefore reduce basic earnings for that year by\napproximately 0.47p per share. Trading throughout the Company's franchised\nnetwork remains in line with the Board's expectations and, of course, has not\nbeen affected by this error.\n\nThe error arose from an invalid claim for rollover relief on profits from the\nfranchising of previously Company owned Stores. As a result the relevant tax\ncharge was understated by approximately £90,000 for the year ended 31 March 2005\nand approximately £120,000 for the year ended 31 March 2006. This has served to\nshow a tax charge in previous years lower than the headline rate of 30%. The\nincreased tax charge would have resulted in a reduction in the reported basic\nearnings per share for 2005 and 2006 of 7.6% and 6.6%, to 2.53p and 3.85p\nrespectively. The financial statements for the year ending 31 March 2007 will\naccordingly show an increased tax charge as a one off adjustment. The interim\nstatement of results for the 28 weeks ended 16 October 2006 incorporate the\ncorrect tax charge for that period and the stated earnings per share is not\naffected by this error.\n\nEncouragingly, post the release of the Company's interim statement, sales\nvolumes in the 4 week periods ending 10 December and 7 January continue to be in\nline with the Company's internal forecast. The Directors remain optimistic that\nadditional international licences will shortly be granted.\n\n\nFor further information:\n\nPrinting.com plc\nAlan Roberts (Finance Director) 07977 277 521\nTony Rafferty (Chief Executive) 07966 517 336\n\nCubitt Consulting\nBrian Coleman-Smith / Allison Reid 020 7367 5100\n\n\nPrinting.com\n\nPrinting.com offers a broad product...