Financial Results |
|
|---|
| 2004 IFRS (unaudited) |
2004 UK GAAP |
|---|
| Sales - continuing subsidiaries |
£3,481m |
£3,484m |
| Trading profit - continuing subsidiaries before significant items** |
£215m |
£162m |
| Operating loss - continuing subsidiaries |
£(24)m |
£(87)m |
| Profit/(loss) before tax before significant items - continuing operations** |
£155m |
£132m |
| Profit/(loss) before tax - continuing operations |
£(83)m |
£(118)m |
| Profit from discontinued operations |
£887m |
£720m |
| Profit for the year |
£772m |
£580m |
| Earnings per share |
105.0p |
78.8p |
| Net assets |
£928m |
£1,490m |
*The UK GAAP numbers presented above are as reported in the 2004 Annual Report reformatted in line with presentational requirements under IFRS.
** Significant items are those which because of size or incidence require separate disclosure to enable underlying trading performance to be assessed. They comprise restructuring costs, asset impairment charges and profits on sale of businesses which were classified as exceptional in the 2004 UK GAAP accounts.
- No further material differences highlighted from December 2004 IFRS update.
- Improvement in reported results arises primarily from treatment of pension obligations.
- Presentation of Income Statement reformatted under IFRS to focus on continuing operations.
- Business trading fundamentals, cash generation and operational performance, not affected.
- Reconciliation of profit before tax, goodwill amortisation and exceptional items:
|
2004
IFRS
(£m) |
2004
Results
(£m) |
|---|
| PBT (UK GAAP) |
221 |
221 |
| Pensions (net) |
26 |
- |
| Share based payments |
(3) |
- |
|
244 |
221 |
| Presentation of JV tax |
(3) |
(3) |
|
241 |
218 |
|
|
|
| Continuing operations |
155 |
132 |
| Discontinued operations |
86 |
86 |
|
241 |
218 |
Nigel Stein, Finance Director of GKN plc, commented:
"The transition to IFRS has introduced accounting treatment and presentational changes. The positive impact on our reported 2004 results is, however, in line with the guidance we gave last December.
"The major change relates to pension accounting where deficits now come on to the balance sheet as liabilities whereas under UK GAAP they were written off through the Income Statement. This change increases reported profits, though the underlying performance and fundamentals of the Group remain unchanged.
"Familiarity with the new concepts and formats introduced by IFRS will develop over time, both within GKN and the wider financial community. As always we will endeavour to keep all stakeholders informed on a timely basis of the key elements of the Group's performance."
Further enquiries:
GKN Corporate Communications
Tel: 020 7463 2354
The full text of this release together with an appendix containing extracts from the IFRS Financial Statements may be downloaded from here.
There will be a webcast presentation by Nigel Stein, Group Finance Director at 10.00 BST followed by a question and answer session for analysts and investors.
To participate in the question and answer session please dial
From the UK: 0845 140 0173
From overseas: +44 1452 568 060