News Releases
Transition to International Financial Reporting Standards - Restatement of 2004 Financial Information
23 Jun 2005Transition to International Financial Reporting Standards
Restatement of 2004 Financial Information
Balfour Beatty plc has adopted International Financial Reporting Standards with effect from January 2005, in accordance with European Union regulations. Balfour Beatty will therefore publish its 2005 Interim Report and 2005 Annual Report and Accounts in accordance with IFRS. Today’s announcement provides restated consolidated financial information for the full year 2004. It also includes indicative 2004 numbers to show the impact of adopting the financial instruments standards and draft interpretations relating to PFI/PPP concession accounting had the Group implemented these in 2004. Information for the first half-year 2004 is available on the Group’s website.
The key points for Balfour Beatty plc from today’s announcement are:
- IFRS has no impact on strategy, business operations, risk management, cash, financing or profit recognition policy on contracting and service activities
- Indicative adjusted eps is in line with the position under UK GAAP
- Net assets are reduced by the inclusion of pension scheme deficits.
HIGHLIGHTS
| UK GAAP | IFRS | Indicative IFRS ** | |
| 2004 Underlying profit from continuing operations* | £150m | £110m | £106m |
| 2004 Profit for the year | £203m | £250m | £248m |
| 2004 Basic earnings per ordinary share | 43.8p | 55.1p | 59.1p |
| 2004 Adjusted earnings per ordinary share† | 23.4p | 20.2p | 21.9p |
| Shareholders' funds at 31 December 2004 | £413m | £273m | £247m |
| 2004 Cash generated from operations | £171m | £171m | £171m |
| Cash and cash equivalents at 31 December 2004 | £406m | £406m | £406m |
* before exceptional items and taxation (under UK GAAP, before goodwill amortisation
and impairment, and including £8m results of discontinued operations)
† before exceptional items and the premium arising on buy-back of preference
shares, and including the results of discontinued operations (under UK GAAP, before goodwill charges)
** including IAS 32 and IAS 39 (‘Financial Instruments')
This announcement summarises:
- the impact of restatement in accordance with IFRS on the Group’s previously reported 2004 results and financial position under UK GAAP;
- the principal differences between UK GAAP and IFRS which affect the Group;
- the basis on which Balfour Beatty has effected the transition to IFRS; and
- indicative comparator IFRS results including the impact of IAS 32 and IAS 39 ‘Financial Instruments’ and draft interpretations on PFI/PPP concession accounting, which will be adopted from 1 January 2005.
View the full Transition to International Financial Reporting Standards restatement of 2004 Financial Information press release (PDF, 821 KB).
View the International Financial Reporting Standards presentation (PDF, 436 KB).
View the International Financial Reporting Standards presentation (Webcast).
View the IFRS Information page.
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