UK: Wolverhampton & Dudley Breweries’ financial year results applying IFRS

The Wolverhampton & Dudley Breweries, PLC released on March 28 its restated consolidated financial information for the year ended 1 October 2005, applying International Financial Reporting Standards. The company said that the adoption of IFRS will have no impact on the underlying business, cash flows or debt covenants of the Group.

Wolverhampton & Dudley Breweries PLC announced its pretax profit for the year to Oct 1 2005 rises by GBP 6.3 mln when restated for International Financial Reporting Standards (IFRS) to GBP 54.2 mln GBP from GBP 47.9 GBP a year earlier. Revenue for the year is down GBP 41.2 mln GBP to GBP 556.1 mln under IFRS. Profit after tax is up by GBP 5.7 mln to GBP 39.1 mln.

The accounting policy changes that have the most significant impact on the financial statements of the Group for the year ended 1 October 2005 are:
- Excise duty excluded from turnover and operating expenses - no impact on operating profit.
- Goodwill amortisation ceases - operating profit increased by £7.1m.
- Deferred tax liability recognised on property revaluation - net assets reduced by £89.9m, tax charge reduced by £1.0m.
- Post employment obligations - net assets reduced by £65.6m excluding deferred tax.
- Timing of the recognition of dividends - net assets increased by £19.8m.

IFRS will apply for the first time to the Group’s consolidated financial statements for the year ending 30 September 2006, including comparative information from the date of transition, 2 October 2004. The first results to be published under IFRS will be the interim results for the six months ending 1 April 2006.

The restated results have been prepared on the basis of all IFRS issued by the International Accounting Standards Board which are relevant to the Group and expected to be effective for 2006 financial reporting, with the exception of IAS 34 ‘Interim Financial Reporting’ which is not mandatory in the UK. If the European Commission does not adopt all of these standards in time for the financial reporting at September 2006, or the issue of further interpretations by the International Financial Reporting Interpretation Committee (IFRIC) in advance of the reporting date, this could result in the need to change the basis of accounting or presentation of certain financial information from that presented in this document. The financial information in this document is unaudited.

The Group will apply IAS 32 and IAS 39 for the year ending 30 September 2006.

The Group has recognised all cumulative actuarial gains and losses for all existing defined benefit pension plans as at 2 October 2004, reducing net assets by £64.7m (before deferred tax).

The Group operates a scheme which provides post-retirement healthcare benefits to certain retired employees and their dependent relatives. The present value of estimated future benefit payments has been included in the balance sheet (2 October 2004: £0.3m, 1 October 2005: £0.3m).

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