REG-M&C Saatchi PLC Final Results - 2007 Prelims - Part 3
Released : 27/03/2008 07:04
.
RNS Number:8698Q
MC Saatchi PLC
Part 3 : For preceding part double-click [nRN1a8698Q]
Reconciliation of Profit for the Year Ended 31 December 2006
UK GAAP IFRS 3 IAS 32 & IAS 39 IAS 39
(IFRS format) Acquisitions Put options Liability Other IFRS
recognition
£000 £000 £000 £000 £000 £000
note a note b note c note d
--------------- ------- -------- -------- -------- ------ ---------
Billings 369,490 - - - (845) 368,645
--------------- ------- -------- -------- -------- ------ ---------
Revenue 75,877 - - 16 - 75,893
Operating costs (71,354) 1,735 - - (20) (69,639)
--------------- ------- -------- -------- -------- ------ ---------
Operating profit 4,523 1,735 - 16 (20) 6,254
--------------- ------- -------- -------- -------- ------ ---------
Share of results of
associates 15 - - - (10) 5
Finance income 1,540 - - - - 1,540
Finance costs (41) - (8,970) - 8 (9,003)
--------------- ------- -------- -------- -------- ------ ---------
Profit / (loss)
before taxation 6,037 1,735 (8,970) 16 (22) (1,204)
--------------- ------- -------- -------- -------- ------ ---------
Taxation on
profits (2,886) - - (5) 34 (2,857)
--------------- ------- -------- -------- -------- ------ ---------
Profit / (loss)
after taxation 3,151 1,735 (8,970) 11 12 (4,061)
--------------- ------- -------- -------- -------- ------ ---------
M&C SAATCHI PLC - 2007 PRELIMINARY STATEMENT
Notes - Continued
Reconciliation in movements in 1 January 2006 Balance Sheet
UK GAAP IAS 32 & IAS 39 IAS 39
(IFRS format) Put options Liability
recognition Other IFRS
£000 £000 £000 £000 £000
note b note c note d
--------------- ------- -------- -------- ------ ---------
Non current assets
Intangible assets 14,592 - - - 14,592
Investments in associates 81 - - (81) -
Plant, equipment 3,194 - - - 3,194
Deferred tax assets 354 - 959 (36) 1,277
Other non
current assets 243 - - - 243
--------------- ------- -------- -------- ------ ---------
18,464 - 959 (117) 19,306
--------------- ------- -------- -------- ------ ---------
Current assets
Work in progress 3,277 - - (3,277) -
Trade and other receivables 49,953 - - 3,277 53,230
Current tax assets 599 - - - 599
Cash and cash equivalents 20,486 - - - 20,486
--------------- ------- -------- -------- ------ ---------
74,315 - - - 74,315
--------------- ------- -------- -------- ------ ---------
Current liabilities
Trade and other payables (56,088) - (3,196) - (59,284)
Current tax liabilities (2,760) - - - (2,760)
Other financial
liabilities (121) - - - (121)
Minority shareholder
put option liabilities - (5,540) - - (5,540)
--------------- ------- -------- -------- ------ ---------
(58,969) (5,540) (3,196) - (67,705)
--------------- ------- -------- -------- ------ ---------
Net current assets 15,346 (5,540) (3,196) - 6,610
--------------- ------- -------- -------- ------ ---------
Total assets less current
liabilities 33,810 (5,540) (2,237) (117) 25,916
--------------- ------- -------- -------- ------ ---------
Non current liabilities
Deferred tax liabilities (21) - - - (21)
Other financial liabilities (36) - - - (36)
Minority shareholder
put option liabilities - (7,679) - - (7,679)
Other non current
liabilities (1,215) - - 81 (1,134)
--------------- ------- -------- -------- ------ ---------
(1,272) (7,679) - 81 (8,870)
--------------- ------- -------- -------- ------ ---------
Total net
assets 32,538 (13,219) (2,237) (36) 17,046
=============== ======= ======== ======== ====== =========
Equity
Share capital 542 - - - 542
Share premium 9,618 - - - 9,618
Merger reserve 14,756 - - - 14,756
Minority interest put
option reserve - (13,219) - - (13,219)
Retained earnings 6,700 - (1,864) (36) 4,800
--------------- ------- -------- -------- ------ ---------
31,616 (13,219) (1,864) (36) 16,497
--------------- ------- -------- -------- ------ ---------
Minority interests 922 - (373) - 549
--------------- ------- -------- -------- ------ ---------
Total equity 32,538 (13,219) (2,237) (36) 17,046
=============== ======= ======== ======== ====== =========
M&C SAATCHI PLC - 2007 PRELIMINARY STATEMENT
Notes - Continued
Reconciliation in movements of 31 December 2006 Balance Sheet
UK GAAP IFRS 3 IAS 32 & IAS 39 IAS 39
Liability
(IFRS format) Acquisitions Put options recognition Other IFRS
£000 £000 £000 £000 £000 £000
note a note b note c note d
--------------- -------- -------- -------- -------- ------ --------
Non current assets
Intangible assets 13,555 1,735 - - 67 15,357
Investments in
associates 81 - - - (81) -
Plant equipment 3,618 - - - (87) 3,531
Deferred tax
assets 693 - - 954 29 1,676
Other non
current assets 460 - - - - 460
--------------- -------- -------- -------- -------- ------ --------
18,407 1,735 - 954 (72) 21,024
--------------- -------- -------- -------- -------- ------ --------
Current assets
Work in progress 2,416 - - - (2,416) -
Trade and other
receivables 45,900 - - - 2,421 48,321
Current tax
assets 88 - - - - 88
Cash and cash
equivalents 31,284 - - - - 31,284
--------------- -------- -------- -------- -------- ------ --------
79,688 - - - 5 79,693
--------------- -------- -------- -------- -------- ------ --------
Current liabilities
Trade and
other payables (63,330) - - (3,180) - (66,510)
Current tax
liabilities (1,036) - - - - (1,036)
Other financial
liabilities (34) - - - - (34)
Deferred
consideration (67) - - - - (67)
Minority shareholder
put option liabilities - - (11,077) - - (11,077)
--------------- -------- -------- -------- -------- ------ --------
(64,467) - (11,077) (3,180) - (78,724)
--------------- -------- -------- -------- -------- ------ --------
Net current assets 15,221 - (11,077) (3,180) 5 969
-------------- -------- -------- -------- -------- ------ --------
Total assets
less current
liabilities 33,628 1,735 (11,077) (2,226) (67) 21,993
--------------- -------- -------- -------- -------- ------ --------
Non current liabilities
Deferred tax
liabilities (141) - - - - (141)
Other financial
liabilities (29) - - - - (29)
Minority shareholder
put option liabilities - - (11,211) - - (11,211)
Other non current
liabilities (938) - - - 76 (862)
--------------- -------- -------- -------- -------- ------ --------
(1,108) - (11,211) - 76 (12,243)
--------------- -------- -------- -------- -------- ------ --------
Total net assets 32,520 1,735 (22,288) (2,226) 9 9,750
=============== ======== ======== ======== ======== ====== ========
Equity
Share capital 542 - - - - 542
Share premium 9,618 - - - - 9,618
Merger reserve 13,553 1,203 - - - 14,756
Treasury reserve (792) - - - - (792)
Other reserves - - (13,318) - - (13,318)
Foreign exchange
reserve - - - - (371) (371)
Retained
earnings / (loss) 8,437 532 (8,970) (1,640) 380 (1,261)
--------------- -------- -------- -------- -------- ------ --------
31,358 1,735 (22,288) (1,640) 9 9,174
--------------- -------- -------- -------- -------- ------ --------
Minority interests 1,162 - - (586) - 576
-------------- -------- -------- -------- -------- ------ --------
Total equity 32,520 1,735 (22,288) (2,226) 9 9,750
=============== ======== ======== ======== ======== ====== ========
M&C SAATCHI PLC - 2007 PRELIMINARY STATEMENT
Notes - Continued
Notes to IFRS adjustments
a) IFRS 3 Business combinations
Under IFRS goodwill is not amortised, instead annual impairment reviews are
conducted. As the Group has elected not to apply IFRS 3 (business combinations)
retrospectively, the only adjustment is to reverse the 2006 amortisation charge.
b) IAS 32 & IAS 39 Minority shareholder put options
IAS 32 & IAS 39 requires a valuation of the liability Group companies have to
minority shareholders that have the right to exchange their minority
shareholdings in the subsidiary companies for shares in M&C Saatchi plc (a put
option) at their creation (or at the Group's transition to IFRS) and then at
each reporting date. The movement in the valuation of the liability is charged
to the income statement (there is no revaluation of the reserve).
c) IAS 39 Liability recognition
IAS 39 requires a liability to be recognised based on the legal obligation to
pay; UK GAAP recognises a liability where there is a reasonable expectation that
the liability will be paid. Many of our contracts are formed verbally and this
gives rise to uncertainty which is treated differently by UK and IFRS GAAP.
d) Other
Other adjustments have been made in respect of IAS 38 intangible assets, IAS 1
and IAS 39 presentation of financial statements (associates), IAS 12 deferred
tax, IAS 21 creation of a foreign currency reserve and IAS18 billings
recognition.
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END