28th July 2005
BBA GROUP PLC
RESTATEMENT OF 2004 RESULTS TO IFRS
BBA Group Plc today announces the restatement of its results for the year ended 31 December 2004 in accordance with International Financial Reporting Standards (“IFRS”). This announcement is intended to facilitate the understanding of the impact of IFRS on BBA’s statutory accounts ahead of the announcement of its 2005 Interim Results on 1 September 2005, which will be prepared in accordance with IFRS.
The primary areas of IFRS which result in the restatement are:
• Recognition of full net liability on employee defined benefit
pension schemes;
• Dividend liabilities only recognised when declared;
• The requirement not to amortise goodwill arising on acquisitions;
• Recognition of a fair value charge in relation to employee
share options; and,
• Recognition of additional deferred tax assets and liabilities.
The implementation of IFRS has only a limited impact on the underlying reported financial performance and the financial position of BBA. For the year ended 31 December 2004, the restatement under IFRS results in a decrease in normalised profit before tax1 of £3.9m to £124.2m and an increase in net assets of £12.2m. Statutory profit for the period has been increased by £18.1m to £67.9m.
The Group’s ability to generate strong free cash flow and its dividend policy remain unchanged.
1 Profit before tax excluding restructuring costs and non-recurring
items.
For further information please contact:
Andrew Wood, Finance Director (020) 7514 3950
BBA GROUP PLC
Brunswick Group LLP
Lucie Anne Brailsford 020 7404 5959
2004
Preliminary Results Presentation, 23rd February 2005