Woolworths Group plc
Adoption of International Financial
Reporting Standards
5 July 2005
Woolworths Group plc
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Contents
1 INTRODUCTION
2. SUMMARY OF FINANCIAL IMPACT
3 BASIS OF PREPARATION
4 KEY IMPACT ANALYSIS
5 RESTATED IFRS CONSOLIDATED STATEMENTS
6 NOTES TO IFRS FINANCIAL INFORMATION
7 FAIR VALUE OF SHARE BASED PAYMENTS
8 OTHER INFORMATION
Appendices - Detailed reconciliation of UK GAAP to IFRS
1. INTRODUCTION
Woolworths Group plc and its subsidiaries (the 'Group') have historically
prepared consolidated financial statements under UK Generally Accepted
Accounting Practice ('UK GAAP'). For the year ending 28 January 2006 the Group
will be required to prepare its financial statements in accordance with
International Financial Reporting Standards ('IFRS'). Accordingly, the Group's
interim results for the 6 month period ending 30 July 2005 will be prepared and
reported under IFRS.
This document explains how the Group's reported UK GAAP financial results for
the year ended 29 January 2005 and its financial position as at that date would
have been reported under IFRS. It includes:
• the Group's consolidated balance sheet at 1 February 2004, the Group's
date of transition to IFRS (the 'opening' IFRS balance sheet);
• the Group's consolidated income statement for the financial year ended 29
January 2005;
• the Group's consolidated statement of recognised income and expense for
the financial year ended 29 January 2005;
• the Group's consolidated balance sheet at 29 January 2005.
The financial information presented in this document is unaudited.
Detailed reconciiations to assist the reader in understanding the nature and
size of differences between UK GAAP and IFRS are included in the Appendices.
2. SUMMARY OF FINANCIAL IMPACT:
The following table summarises the impact of IFRS:-
Profit before
tax, exceptional
costs and
goodwill Profit
amortisation after tax Net assets
2005 2005 2005 2004
£m £m £m £m
Total reported under
UK GAAP 73.1 2.2 464.8 457.3
Pensions (2.4) (1.7) (68.2) (66.1)
Share based payments (1.7) (1.8) 0.9 1.0
Lease incentives (1.6) (1.0) (14.8) (13.7)
Reversal of
dividend accrual - - - 16.1
Goodwill
amortisation
write back - 2.9 2.9 3.1
Joint venture
acquisition gain
adjustment - 2.9 (1.2) -
Amortisation of
intangible assets (1.0) (1.0) (1.0) -
IAS 12 tax
adjustments - (1.8) (14.0) (12.2)
Other (0.5) (0.3) (0.4) -
Total reported 65.9 0.4 369.0 385.5
under IFRS
3 BASIS OF PREPARATION
The financial information presented in this document has been prepared on the
basis of all International Financial Reporting Standards ('IFRS'), including
International Accounting Standards ('IAS') and interpretations issued by the
International Accounting Standards Board ('IASB') and its committees, and as
interpreted by any regulatory bodies applicable to the Group published by 31
December 2004. These are subject to ongoing amendment by the IASB and subsequent
endorsement by the European Commission and are therefore subject to possible
change. Further standards and interpretations may also be issued that will be
applicable for financial years beginning on or after 1 January 2005 or that are
applicable to later accounting periods but may be adopted early. The Group's
first IFRS financial statements may, therefore, be prepared in accordance with
some different accounting policies from the financial information presented
here.
In preparing this financial information, the Group has assumed that the European
Commission will endorse the amendment to IAS 19, 'Employee Benefits - Actuarial
Gains and Losses, Group Plans and Disclosures'.
On 19 November 2004, the European Commission endorsed an amended version of IAS
39, 'Financial Instruments: Recognition and Measurement' rather than the full
version as previously published by the IASB. In accordance with guidance issued
by the UK Accounting Standards Board, the full version of IAS 39, as issued by
the IASB, will be adopted with effect from 30 January 2005 (being the
commencement of Woolworths 2005/06 financial year).
3.1. Presentation of financial information
The primary statements within the financial information contained in this
document have been presented in accordance with IAS 1, 'Presentation of
Financial Statements'. It is likely that these formats may be modified going
forward.
3.2. IFRS 1 First-Time Adoption Choices
IFRS 1, 'First-time Adoption of International Financial Reporting Standards'
sets out the procedures that the Group must follow when it adopts IFRS for the
first time as the basis for preparing its consolidated financial statements. The
Group is required to establish its IFRS accounting policies as at 28 January
2006 and, in general, apply these retrospectively to determine the IFRS opening
balance sheet at its date of transition, 1 February 2004.
This standard provides a number of optional exemptions to this general
principle. Set out below is a description of the significant first time adoption
choices made by the Group.
a) Business combinations before the opening IFRS balance sheet date (IFRS 3,
'Business Combinations')
The Group has elected not to apply IFRS 3 retrospectively to business
combinations that took place before the date of transition.
The valuation of the VCI business was reviewed at transition date and no
impairment was found necessary. As a result, goodwill arising from the VCI
business combination at transition remains as stated under UK GAAP at 1
February 2004 (£45.9m).
During the year the Group entered into a joint venture with BBC Worldwide to
form 2entertain Limited. The net effect of this transaction was to dispose
of a 60% share of the VCI business in return for a 40% share in the joint
venture. This transaction completed on 27 September 2005. An impairment
review on goodwill was undertaken as at 29 January 2005 and no impairment
was considered necessary.
b) Employee Benefits - actuarial gains and losses (IAS 19, 'Employee
Benefits')
The Group has elected to recognise all cumulative actuarial gains and losses
in relation to employee benefit schemes at the date of transition. The Group
has recognised actuarial gains and losses in full in the period in which
they occur in a statement of recognised income and expense in accordance
with the amendment to IAS 19, issued on 16 December 2004.
c) Valuation of properties (IAS 16, 'Property, plant and equipment')
The Group owns few freehold properties and no investment properties. The
Group has elected to treat the revalued amount of operating properties at 1
February 2004 as deemed cost as at that date and will not revalue for
accounts purposes in future. The Group will however provide the current
market values as additional disclosure in the financial statements.
d) Share-based Payments (IFRS 2, 'Share-based Payment')
The Group has not adopted the exemption to apply IFRS 2 only to awards
granted after 7 November 2002. Instead, a full retrospective approach has
been followed on all awards granted but not fully vested at the date of
transition to maintain consistency across reporting periods.
e) Financial Instruments (IAS 39, 'Financial Instruments: Recognition
and Measurement' and IAS 32, 'Financial Instruments: Disclosure and
Presentation')
The Group has taken the option to defer the implementation of IAS 32 and
IAS 39 to the financial year ending 28 January 2006. Therefore,
financial instruments will continue to be accounted for and presented in
accordance with UK GAAP for the year ended 29 January 2005. To the
extent that any adjustment is required, this would be in order to
reflect the movements from UK GAAP carrying values to IAS 39 values. It
is the Group's intention to apply hedge accounting where the
requirements of IAS 39 are met.
4 KEY IMPACT ANALYSIS
The analysis below sets out the most significant adjustments arising from the
transition to IFRS.
4.1. Presentation of Financial Statements
The Group has chosen to account for its joint venture interests in 2entertain
Limited and Flogistics Limited using the proportionate consolidation method
permitted under IAS 31. The Group will continue to account for its associate
investments using the equity accounting method.
The presentation of the Group's share of the results of joint ventures in the
Group's consolidated income statement will therefore change under IFRS. Under UK
GAAP, the Group's share of joint venture operating profit, interest and tax have
been disclosed separately in the consolidated income statement. In accordance
with IAS 31, the results of joint ventures are presented on a proportionate
basis. There is no net effect on the result for the financial period from this
adjustment.
Woolworths will continue to disclose material items which by virtue of their
size and significance to the business would previously have been disclosed as
operating exceptional items as permitted by IAS 1 and provide adjusted earnings
per share to assist stakeholders.
4.2. Intangible Assets
a) Goodwill amortisation
Under IFRS 3, goodwill is no longer amortised on a straight-line basis but is
instead subject to annual impairment testing. Consequently, the goodwill
balances have been reviewed for impairment as at 1 February 2004 and 29
January 2005. No impairment was found to be necessary. The non-amortisation
of positive goodwill increases profits for 2004/05.
b) Amortisation of Intangibles
IAS 38 requires all separately identifiable brands and intangible assets
acquired to be shown as intangible assets rather than included as goodwill. As a
result, £30.1m of intangibles arising on the acquisition of the Group's share in
2entertain Limited have been reallocated from goodwill. The Group has taken
advantage of the exemption, under IFRS 3, which permits the use of provisional
values for a period of a year from the date of acquisition. These assets are
being written off over ten years and the effect on profit is a £1.0m charge in
2004/05 reflecting the charge since the formation of the joint venture during
the year.
c) Computer Software
Under UK GAAP, all capitalised computer software is included within tangible
fixed assets on the balance sheet. Under IFRS, only computer software that
is integral to a related item of hardware should be included as property,
plant and equipment. All other computer software should be recorded as an
intangible asset.
Accordingly, a reclassification has been made of £29.3m as at 1 February 2004
and of £24.9m in the balance sheet as at 29 January 2005 from property, plant
and equipment to intangible assets. There is no impact on the profit and loss
account from this reclassification.
4.3. Post Employment Benefits
The Group currently applies the provisions of SSAP 24 under UK GAAP and
provides detailed disclosure under FRS 17 in accounting for pensions and
other post-employment benefits.
The Group has elected to undertake the early adoption of the amendment to IAS
19, 'Employee Benefits' issued by the IASB on 16 December 2004 which allows all
actuarial gains and losses to be charged or credited to equity.
The Group's IFRS balance sheet as at 1 February 2004 reflects the assets and
liabilities of the Group's defined benefit schemes comprising a net liability of
£66.1m. (£94.5m gross deficit before deferred tax at £28.4m - calculated at the
UK corporate tax rate of 30%). The incremental charge arising from the adoption
of IAS 19 on the Group's income statement includes an increased operating charge
of £0.9m and a net financing charge of £1.5m.
The actuarial loss before tax of £0.6m arising in the year ended 29 January 2005
has been recorded in the statement of recognised income and expense. The net
pension deficit under IFRS at 29 January 2005 is £68.2m (£97.5m gross deficit
before deferred tax of £29.3m.)
4.4. Deferred and Current Taxes
The scope of IAS 12, 'Income Taxes' is wider than the corresponding UK GAAP
standards, and requires deferred tax to be provided on all temporary
differences rather than just taxable timing differences under UK GAAP. As a
result, the Group's IFRS opening balance sheet at 1 February 2004 includes
an additional deferred tax liability of £3.6m in addition to the deferred
tax asset on pensions referred to in note 4.3 above. The majority of this
adjustment relates to the deferred tax provided on held-over and rolled-over
gains partly offset by the lease incentive deferred tax credit. At 29
January 2005, the additional deferred tax liability was £13.9m, which
primarily reflects the impact of the deferred tax liability relating to the
2entertain Limited transaction which was completed during that year.
'Income tax expense' on the face of the consolidated income statement
comprises the tax charge of Woolworths and its joint ventures under IFRS.
The tax effect of the IFRS accounting adjustments has been reflected where
appropriate.
The effective tax rate before exceptional items is 33.5% compared with 30.6%
under UK GAAP. The increase is as a result of certain adjustments to
profits which have no tax effect and deferred tax being provided on
temporary differences as described above.
4.5. Share-based Payments
IFRS 2, 'Share-based Payment' requires that an expense for equity instruments
granted is recognised in the financial statements based on their fair value
at the date of grant. This expense, which is primarily in relation to
employee option and performance share schemes, is recognised over the
vesting period of the scheme.
The Group has principally adopted the Black Scholes model for the purposes of
calculating the fair value under IFRS.
The additional pre-tax charge arising from the adoption of IFRS 2 on the Group's
income statement is £1.7m for the year ended 29 January 2005. The impact from
the adoption of this standard is relatively small going forward as the Group
ceased offering executive share options in 2004 and replaced them with share
awards for which a charge equating to the market value of the deferred shares
has been recognised under UK GAAP.
4.6. Leases
a) Capitalisation of building leases
IAS 17, 'Leases' requires that the building element of leases on land and
buildings is considered separately for the purposes of determining whether
the lease is a finance or operating lease.
In response to this requirement a review has been undertaken of the Group's
leased property portfolio to assess whether the building element of these leases
could be categorised as finance in nature. Based on this review and the
assessment of the expected useful economic life of the properties at the point
of inception it is considered that the respective building elements are
operating in nature.
b) Lease incentives
Under UK GAAP, lease incentives were recognised over the period up to the first
market rent review. Under Standing Interpretations Committee 15, lease
incentives are required to be recognised over the entire lease term.
As a result, the Group's IFRS opening balance sheet at 1 February 2004 includes
additional deferred income of £19.6m and a reduction in operating profit for the
year ended 29 January 2005 of £1.6m.
4.7. Post Balance Sheet Events
IAS 10, 'Events after the Balance Sheet Date' requires that dividends
declared after the balance sheet date should not be recognised as a
liability at that balance sheet date as the liability does not represent a
present obligation as defined by IAS 37, 'Provisions, Contingent Liabilities
and Contingent Assets'.
The final dividend declared in March 2004 in relation to the financial year
ended 31 January 2004 of £16.1m has been reversed in the opening balance sheet
and charged to equity in the balance sheet as at 29 January 2005. There was no
final dividend accrued for the year ended 29 January 2005.
4.8. Other Adjustments
The main adjustment relates to foreign currency adjustments under IAS 21 which
requires all foreign currency transactions to be recorded at the rate of
exchange ruling at the date of the transaction, with monetary items retranslated
at period end. Under UK GAAP the Group has used the one-transaction approach
with transactions booked at a relevant contracted rate for the year with any
foreign exchange gains or losses deferred until the related stock is sold. The
impact of this adjustment is to reduce profit by £0.6m in the year 2004/05 with
reductions to stock and creditors of £4.2m and £3.6m respectively.
5. RESTATED IFRS CONSOLIDATED STATEMENTS
Group Income Statement
For the 52 weeks to 29 January 2005
2005 2005 2005 2005
Comprising:
(under Adjust- (restated Exceptional Before
UK ments for under items exceptional
GAAP) IFRS IFRS) (Note 6.1) items
Total
Note £m £m £m £m £m
Turnover -
Group and
share of
joint
ventures
Continuing
operations 2,897.1 - 2,897.1 - 2,897.1
Less: share
of joint
venture's
turnover (41.9) 41.9 - - -
Group
turnover 2,855.2 41.9 2,897.1 - 2,897.1
Cost of
sales (2,116.5) (21.8) (2,138.3) (17.3) (2,121.0)
Gross
profit 738.7 20.1 758.8 (17.3) 776.1
Selling
expenses (568.8) (8.3) (577.1) 0.2 (577.3)
Administrative
expenses (177.7) (4.6) (182.3) (43.6) (138.7)
Other
operating
income 15.7 3.3 19.0 2.9 16.1
Group
operating
profit 7.9 10.5 18.4 (57.8) 76.2
Share of
operating
profit in
joint
ventures
after
amortisation
of goodwill
of £0.9m 10.2 (10.2) - - -
Operating
profit
including
joint
ventures 18.1 0.3 18.4 (57.8) 76.2
Finance
income 3.2 - 3.2 - 3.2
Finance
costs (12.0) (1.5) (13.5) - (13.5)
Profit
before
taxation 9.3 (1.2) 8.1 (57.8) 65.9
Income tax
expense (7.1) (0.6) (7.7) 14.4 (22.1)
Profit on
ordinary
activities
after
taxation 2.2 (1.8) 0.4 (43.4) 43.8
Attributable
to:
Equity
holders of
the company 2.0 (1.8) 0.2
Minority
interest 0.2 - 0.2
2.2 (1.8) 0.4
Earnings
per share
(pence) 6.2
Basic 0.1 (0.1) -
Diluted 0.1 (0.1) -
Group Statement of Recognised Income and Expense
For the 52 weeks to 29 January 2005
2005 2005 2005
(under UK Adjustments (restated under
GAAP) for IFRS IFRS)
Total
Note £m £m £m
Profit for the
financial year 2.2 (1.8) 0.4
Gain on formation
of joint venture 6.1 4.1 (4.1) -
Actuarial loss on
defined benefit
scheme - (0.6) (0.6)
Total gains/loss
recognised 6.3 (6.5) (0.2)
5. RESTATED IFRS CONSOLIDATED STATEMENTS
Group Balance Sheet
At 29 January 2005 and 31 January 2004
2005 2005 2005 2004
(under UK Adjustments (restated (restated
GAAP) for IFRS under IFRS) under IFRS)
£m £m £m £m
Assets
Non-current
assets
Property, plant
and equipment 312.1 (24.4) 287.7 294.4
Intangible
fixed assets 12.0 56.0 68.0 91.1
Investments -
associates 0.2 - 0.2 0.2
- joint
ventures -
share of gross
assets 49.2 (49.2) - -
- share of
gross
liabilities (43.5) 43.5 - -
- goodwill 51.2 (19.4) 31.8 -
Deferred tax
asset - 29.3 29.3 28.4
381.2 35.8 417.0 414.1
Current assets
Stocks 371.1 (1.0) 370.1 359.5
Trade and other
receivables 148.8 34.0 182.8 166.9
Cash and cash
equivalents 208.4 6.8 215.2 155.2
728.3 39.8 768.1 681.6
Total assets 1,109.5 75.6 1,185.1 1,095.7
Equity
Called up share
capital 184.6 - 184.6 177.8
Other reserves 27.1 - 27.1 27.2
Retained
earnings 253.1 (95.8) 157.3 180.3
464.8 (95.8) 369.0 385.3
Minority
interests - - - 0.2
Total equity 464.8 (95.8) 369.0 385.5
Liabilities
Non-current
liabilities
Borrowings 99.6 - 99.6 98.5
Deferred income
tax liabilities 20.3 13.9 34.2 27.6
Retirement
benefit
obligations - 97.5 97.5 94.5
Provisions for
other
liabilities and
charges 25.7 (0.2) 25.5 3.8
145.6 111.2 256.8 224.4
Current
liabilities
Trade and other
payables 494.1 60.2 554.3 466.0
Current income
tax liabilities 5.0 - 5.0 16.0
Borrowings - - - 3.8
499.1 60.2 559.3 485.8
Total 644.7 171.4 816.1 710.2
liabilities
Total equity 1,109.5 75.6 1,185.1 1,095.7
and liabilities
6. Notes to IFRS Financial Information
6.1 Exceptional items
2005 2005 Adjustments 2005
(under UK for IFRS (restated
GAAP) under IFRS)
£m £m £m
Stock disposals and (17.3) - (17.3)
store clearance
Disposal of leases
and reconfiguration
of the out-of-town
estate (37.6) 0.2 (37.4)
Other (6.0) - (6.0)
Gain arising on - 2.9 2.9
formation of Joint
Venture
Total operating (60.9) 3.1 (57.8)
exceptional items
In March 2004, the Group announced that Woolworths big W as traded from its
existing portfolio did not represent a secure source of long-term profitability.
As a result, a number of stores have been disposed of and in others excess space
has been vacated, cut down or is in the process of being sold and/or vacated.
The gain on the formation of the 2entertain joint venture of £4.1m originally
shown in the statement of total recognised gains and losses is now shown as an
exceptional item. The gain has reduced by £1.2m reflecting Woolworths share of
the impact of re-crediting the 2004/5 amortisation charge for goodwill on the
VCI business.
6.2 Adjusted earnings per share
2005 2005
Weighted Restated Under
average under UK
IFRS GAAP
number Per Per
of share share
Earnings Adjustments Earnings shares Amount Amount
for IFRS
£m £m £m m Pence Pence
Basic
earnings
per share
Earnings
attributable
to ordinary
shareholders 2.0 (1.8) 0.2 1,406.1 - 0.1
Effect of
dilutive
share
options 19.3
Diluted
earnings
per share 2.0 (1.8) 0.2 1,425.4 - 0.1
Supplementary
earnings
per share
Basic
earnings
per share 2.0 (1.8) 0.2 1,406.1 - 0.1
Effect of
exceptional
items 60.9 (3.1) 57.8 - 4.1 4.3
Tax impact
arising on
exceptional
items (14.4) - (14.4) - (1.0) (1.0)
Basic
earnings
per share
before
exceptional
items 48.5 (4.9) 43.6 1,406.1 3.1 3.4
Amortisation
of
acquisition
goodwill 2.9 (2.9) - - - 0.2
Basic -
adjusted
earnings
per share 51.4 (7.8) 43.6 1,406.1 3.1 3.6
Diluted
earnings
per share 2.0 (1.8) 0.2 1.425.4 - 0.1
Effect of
exceptional
items 60.9 (3.1) 57.8 - 4.1 4.3
Tax impact
arising on
exceptional
items (14.4) - (14.4) - (1.0) (1.0)
Diluted
earnings
per share
before
exceptional
items 48.5 (4.9) 43.6 1,425.4 3.1 3.4
Amortisation
of
acquisition
goodwill 2.9 (2.9) - - - 0.2
Diluted -
adjusted
earnings
per share 51.4 (7.8) 43.6 1,425.4 3.1 3.6
7. Fair Value of Share based Payments
As required by IFRS 2 the fair value of grants made before 7 November 2002 that
impact the Group 2004/05 profit and loss account are shown below
Grant date Description Vesting period Fair value of
individual award
at grant date
(pence per
share)
26 September Executive Share 3.5 years 8.0
2001 Option
24 April 2002 Executive Share 3 years 11.8
Option
11 September Executive Share 3 years 7.2
2002 Option
6 June 2002 Sharesave Option 3.11 years 11.8
8. Other information
The enclosed financial information is derived from the full Group Financial
Statements for the 52 weeks ended 29 January 2005 and does not constitute the
full statutory statements of Woolworths Group plc within the meaning of section
240 of the Companies Act 1985 (as amended).
APPENDICES
CONSOLIDATED INCOME STATEMENT
For the 52 weeks to 29 January 2005
Repor- Joint IAS IFRS IAS SIC IFRS IAS Gain Other Restated
ted venture 19 3 38 15 2 12 on (FX under
under proport- Employee Busi- Amorti- Lease Share Taxa- forma- and IFRS
UK ionate bene- ness sation incen- based tion tion holiday
GAAP consoli- fits com- charge tives pay- of pay)
dation bina- on ments joint
tions intan- venture
gibles
£m £m £m £m £m £m £m £m £m £m £m
Revenue 2,855.2 41.9 2,897.1
Cost of (2,116.5) (21.8) (2,138.3)
sales
Gross profit 738.7 20.1 758.8
Selling (568.8) (6.5) (0.4) (1.4) - (577.1)
costs
Administrative (177.7) (3.8) (0.5) 2.9 (1.0) (1.7) - (0.5) (182.3)
expenses
Other 15.7 0.4 - 2.9 19.0
operating
income
Group 7.9 10.2 (0.9) 2.9 (1.0) (1.4) (1.7) - 2.9 (0.5) 18.4
operating
profit
Share of 10.2 (10.2) - -
operating
profit in
joint
ventures
Operating 18.1 - (0.9) 2.9 (1.0) (1.4) (1.7) - 2.9 (0.5) 18.4
profit
including
joint
ventures
Finance 3.2 3.2
income
Finance (12.0) - (1.5) - - - - - - - (13.5)
costs
Profit before 9.3 - (2.4) 2.9 (1.0) (1.4) (1.7) - 2.9 (0.5) 8.1
taxation
Tax on profit (7.1) - 0.7 - - 0.4 (0.1) (1.8) - 0.2 (7.7)
on ordinary
activities
Profit after 2.2 - (1.7) 2.9 (1.0) (1.0) (1.8) (1.8) 2.9 (0.3) 0.4
taxation
CONSOLIDATED BALANCE SHEET
As at 1 February 2004
Repor- Reallo- IFRS IAS Proport- IFRS IAS SIC Other Restated
ted cation 3 19 ionate 2 12 15 (FX, under
under to Busi- Employee consoli- Share Taxa- Lease divi- IFRS
UK intan- ness bene- dation based tion incen- dend,
GAAP gible combi- fits of pay- tives holi-
assets nations JV ments day
pay)
£m £m £m £m £m £m £m £m £m £m
Non-current
assets
Property, 323.7 (29.3) 294.4
plant and
equipment
Intangible 58.7 29.3 3.1 91.1
fixed
assets
Investments - 0.2 0.2
associates
Joint 12.0 (12.0) -
ventures
- share of
gross
assets
- share of (12.0) 12.0 -
gross
liabilities
Deferred tax - 28.4 28.4
asset
382.6 3.1 28.4 414.1
Current
assets
Stocks 363.4 0.1 (4.0) 359.5
Trade and 166.3 0.6 166.9
other
receivables
Cash and cash 155.2 155.2
equivalents
684.9 0.7 (4.0) 681.6
Total 1,067.5 - 3.1 28.4 0.7 - - - (4.0) 1,095.7
assets
Equity
Called up 177.8 177.8
share
capital
Other 27.2 27.2
reserves
Retained 252.1 3.1 (66.1) 1.0 (12.2) (13.7) 16.1 180.3
earnings
457.1 3.1 (66.1) 1.0 (12.2) (13.7) 16.1 385.3
Minority 0.2 - 0.2
interests
Total 457.3 3.1 (66.1) 1.0 (12.2) (13.7) 16.1 385.5
equity
Liabilities
Non-current
liabilities
Borrowings 98.5 98.5
Deferred 24.0 (1.0) 12.2 (5.9) (1.7) 27.6
income tax
liabilities
Retirement - 94.5 94.5
benefit
obligations
Provisions 3.8 3.8
for other
liabilities
and charges
126.3 94.5 (1.0) 12.2 (5.9) (1.7) 224.4
Current
liabilities
Trade and 464.1 0.7 19.6 (18.4) 466.0
other
payables
Current 16.0 16.0
income tax
liabilities
Borrowings 3.8 3.8
483.9 0.7 19.6 (18.4) 485.8
Total 610.2 94.5 0.7 (1.0) 12.2 13.7 (18.4) 710.2
liabilities
Total equity 1,067.5 - 3.1 28.4 0.7 - - - (4.0) 1,095.7
and
liabilities
CONSOLIDATED BALANCE SHEET
As at 29 January 2005
Repor- Reallo- IFRS IAS Proport- IFRS IAS SIC Other Restated
ted cation 3 19 ionate 2 12 15 (FX, under
under to Busi- Employee consoli- Share Taxa- Lease holiday IFRS
UK intan- ness benefits dation based tion incen- pay)
GAAP gible combi- of pay- tives
assets nation JV ments
£m £m £m £m £m £m £m £m £m £m
Non-current
assets
Property, 312.1 (24.9) 0.5 287.7
plant and
equipment
Intangible 12.0 54.0 2.0 68.0
fixed
assets
Investments - 0.2 0.2
associates
Joint 49.2 (49.2) -
ventures
- share of
gross
assets
- share of (43.5) 43.5 -
gross
liabilities
- goodwill 51.2 (30.1) 10.7 31.8
Deferred tax - 29.3 29.3
asset
381.2 (1.0) 10.7 29.3 (3.2) 417.0
Current
assets
Stocks 371.1 3.2 (4.2) 370.1
Trade and 148.8 34.0 182.8
other
receivables
Cash and cash 208.4 6.8 215.2
equivalents
728.3 44.0 (4.2) 768.1
Total 1,109.5 (1.0) 10.7 29.3 40.8 - - - (4.2) 1,185.1
assets
Equity
Called up 184.6 184.6
share
capital
Other 27.1 27.1
reserves
Retained 253.1 (1.0) 1.7 (68.2) 0.9 (14.0) (14.8) (0.4) 157.3
earnings
Total 464.8 (1.0) 1.7 (68.2) 0.9 (14.0) (14.8) (0.4) 369.0
Equity
Liabilities
Non-current
liabilities
Borrowings 99.6 99.6
Deferred 20.3 9.0 (0.9) 14.0 (6.4) (1.8) 34.2
income tax
liabilities
Retirement - 97.5 97.5
benefit
obligations
Provisions 25.7 (0.2) 25.5
for other
liabilities
and charges
145.6 9.0 97.5 (0.2) (0.9) 14.0 (6.4) (1.8) 256.8
Current
liabilities
Trade and 494.1 41.0 21.2 (2.0) 554.3
other
payables
Current 5.0 5.0
income tax
liabilities
499.1 41.0 21.2 (2.0) 559.3
Total 644.7 9.0 97.5 40.8 (0.9) 14.0 14.8 (3.8) 816.1
liabilities
Total equity 1,109.5 (1.0) 10.7 29.3 40.8 - - - (4.2) 1,185.1
and
liabilities