Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1.

Transcription

1 Volex Group plc Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement 1. Introduction The consolidated financial statements of Volex Group plc ( the Group ) issued for financial years prior to and including 3 April 2005 had been prepared in accordance with Generally Accepted Accounting Principles in the United Kingdom (UK GAAP). It is mandatory for all UK listed companies to prepare their consolidated financial statements for financial periods commencing after 1 January 2005 under International Accounting Standards and International Financial Reporting Standards (collectively IFRS) as endorsed by the International Accounting Standards Board (IASB) and adopted by the European Union (EU). Accordingly the financial statements for the 52 weeks ended 2 April 2006 will be prepared under IFRS and the Interim financial information for the 26 weeks ended 2 October 2005 has been prepared under IFRS. The purpose of this document is to explain the principal changes in accounting policies arising from the adoption of IFRS and present the restated financial information in Section 5 as follows: Income statements for the 26 weeks to 2 October 2004 and 52 weeks to 3 April 2005; Balance sheets as at 5 April 2004, 3 October 2004 and 3 April 2005; and Cash flow statements for the 26 weeks to 2 October 2004 and 52 weeks to 3 April The financial information in this document is unaudited. 2. Basis of preparation The financial information has been prepared on the basis of IFRS that the Directors expect to be applied as at 2 April IFRS remains subject to amendment and interpretation by the International Accounting Standards Board (IASB) and there is an ongoing process of review and endorsement by the European Commission. Consequently, the revised accounting policies, which are detailed in Section 4 are provisional and are subject to change. These accounting policies have been consistently applied to all periods presented in the Interim financial statements with the exception of IAS 32 and IAS 39, Financial Instruments. In accordance with IFRS 1, First-time Adoption of International Financial Reporting Standards, the Directors have elected not to restate comparative information for the impact of IAS 32 and IAS 39, but have only adopted these standards to apply from 4 April The UK GAAP financial information contained in this document does not constitute full accounts within the meaning of Section 240 of the Companies Act The UK GAAP statutory accounts for the 52 weeks ended 3 April 2005 have been filed with the Registrar of Companies for England and Wales and have been reported on by the Group s auditors. The Report of the Auditors was not qualified and did not contain a statement under section 237 (2) and (3) of the Companies Act 1985 as amended. 1

2 3. Principal accounting policy changes and transitional provisions Share based payments In accordance with the transitional rules of IFRS 1, IFRS 2, Share-based Payments, has been applied to share options granted after 7 November 2002 that were unvested at 1 January The fair value of employee share options and stock appreciation rights have been calculated using the Black-Scholes valuation model. The costs of the share options have been charged to the income statement over the periods in which the instruments vest and are adjusted to reflect the expected and actual levels of vesting. Under UK GAAP, the charge for share-based payments only applied to grants made at a discount to their market value. A cumulative expense of 33,000 has been recognised in the transition balance sheet at 5 April For 26 weeks to 3 October 2004 and 52 weeks to 3 April 2005, additional costs of 1,000 and 15,000 have been recorded. Goodwill and business combinations The Group has elected not to apply IFRS 3, Business Combinations, to goodwill and business combinations arising before the date of transition to IFRS. Consequently on transition, goodwill has been retained at its 5 April 2004 UK GAAP carrying value. UK GAAP required that goodwill arising on the acquisition of subsidiary undertakings and businesses was amortised over its useful economic life. Under IFRS an amortisation charge is not made. Hence the UK GAAP amortisation charges in 26 weeks to 3 October 2004 and in 52 weeks to 3 April 2005 of 151,000 and 302,000 respectively, have been reversed thus increasing IFRS profit by these amounts. As a result of reversing the amortisation charges, the impairment charge recorded in 2005 financial year, with respect to the Group s Brazilian operations is increased under IFRS by 132,000, which was the UK GAAP amortisation charge recorded post 5 April 2004 but prior to the impairment being recognised. Employee benefits The Group has applied the requirements of IAS 19, Employee Benefits (revised 2004), to its closed defined benefit schemes. The net deficit of the scheme assets, which are recorded at fair value, less the obligations, which are measured at discounted present value, has been shown on the balance sheet and the movement thereon has been reflected in the statement of recognised income and expense. The financing costs are recognised in the income statement in the period in which they arise. Since the schemes are closed no service cost is required to be recognised at the operating profit level. Interest costs of 71,000 and 142,000 have been recognised in the 26 weeks to 3 October 2004 and 52 weeks to 3 April 2005 respectively, whilst UK GAAP service costs of 74,000 and 255,000 for those periods have been removed. Adjustments to liabilities to recognise the IFRS net pension deficit are calculated as follows:- UK GAAP IFRS Net Accruals Provisions Total Provisions Difference Pension liabilities at: 5 April ,628 3,540 3 October ,537 3,537 3 March ,095 3,914 2

3 The effect of changes in foreign exchange rates Under IFRS, exchange differences arising on consolidation, when translating the net assets of overseas subsidiaries, are required to be recognised as a separate equity reserve. The Group has adopted the transitional provision of IFRS 1, which allows cumulative translation differences to be deemed as zero at the date of transition to IFRS. On transition at 4 April ,032,000 has been credited to the translation reserve and debited to the profit and loss account. Financial derivatives In accordance with IFRS 1, comparative information has not been restated for the impact of IAS 32 and IAS 39, but the Group has only adopted these standards to apply from 4 April Intangible assets IFRS requires certain computer software assets to be shown separately as intangible fixed assets. Under UK GAAP such items were previously classified as property, plant and equipment. Presentation of financial statements In a number of circumstances, IFRS requires a different presentation of items in the financial statements compared with UK GAAP. These requirements for the balance sheet include deferred tax assets to be shown as non-current assets and for provisions to be split between current and non-current. From an income statement perspective, IFRS does not require the profit or loss on sale of fixed assets to be disclosed separately on the face of the statement. Cash flow statement Under UK GAAP the cash flow statement reconciles the combined movement in cash and overdrafts. The IFRS cash flow statement reconciles movements in cash and cash equivalents only, with movements in overdrafts shown within the financing section of the report. Other cash flow differences between UK GAAP and IFRS are either presentational or movements within a classification. There is no impact on the final net debt position or the movement in net debt during the periods presented. 3

4 4. Summary of principal accounting policies The consolidated financial statements included in the interim statement for the 26 weeks to 2 October 2005 and the restated comparative information contained in this document have been prepared on the historical cost basis applying the principal accounting policies summarised below. As previously indicated, IFRS is subject to amendment and interpretation by the IASB and to review and endorsement by the EU. Consequently these accounting policies may be subject to change. (a) Basis of consolidation The consolidated financial statements of Volex Group plc incorporate the financial statements of the Company and entities which it controls (its subsidiaries) and are drawn up to the relevant period end date. Control is achieved where the Company has the power to govern the financial and operating policies so as to be able to obtain benefits from its activities. The Group uses the purchase method of accounting to account for the acquisition of subsidiaries. On acquisition, the assets and liabilities, including contingent liabilities, of a subsidiary are measured at their fair value at the date of acquisition. Any excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recognised as goodwill. If the cost of acquisition is less than the fair value of the identifiable net assets acquired, the difference is recognised directly in the income statement. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group. On consolidation, all intra-group transactions, balances, income and expenses are eliminated. (b) Segment reporting A geographical segment is engaged in providing products or services within a particular geographic and economic environment that are different from those of segments in other geographic environments. A business segment is a group of assets and operations engaged in providing products or services subject to risks and returns that are different from those of other business segments. The primary segment for the Group is the geographical segment. Geographical segments reported are: Asia, North America, United Kingdom and Other Europe. Secondary segments are data/telecommunications, power cords and harnesses. (c) Foreign currency translation Items included in the financial statements of each of the Group s entities are measured using the currency of the primary economic environment in which the entity operates (the functional currency ). The consolidated financial statements are presented in sterling, which is the Company s functional and presentation currency. Transactions in a foreign currency are recorded at the rate of exchange at the date of transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rates of exchange prevailing at that date. Gains and losses arising on translation are included in the income statement. The results of operations that have a functional currency different from the presentation currency are translated at the average rate of exchange during the period and their balance sheets at the rates ruling at the date of the balance sheet. Exchange differences arising on translation are taken directly to a separate component of equity, the translation reserve. On consolidation, exchange differences arising from the translation of the net investment in foreign entities and borrowings designated as hedges of such investments are also taken to a separate component of equity, the translation reserve. 4

5 (d) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable from third parties for goods and services provided in the normal course of business, net of discounts, VAT and other sales-related taxes. Revenue is recognised upon shipment of goods. (e) Taxation The tax expense represents the sum of the current and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences arise from goodwill. Deferred tax liabilities are recognised for taxable temporary differences arising on retained earnings in subsidiaries and associates and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amounts of deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. (f) Property, plant and equipment Land and buildings comprise factories, warehouses and offices. Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. Depreciation is provided on all property, plant and equipment, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over the expected useful life, as follows: Freehold and long leasehold buildings Plant and machinery up to 50 years up to 10 years Fixed assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the fixed asset might not be recoverable. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount exceeds the higher of an asset s fair value less cost to sell and value in use. Any impairment charge is recorded in the income statement. A gain or loss on disposal is determined by comparing the proceeds with the asset s carrying amount and is recognised in the income statement. 5

6 (g) Leases Assets held under finance leases and similar contracts, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful economic life. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the income statement over the period of the lease to produce a constant rate of charge on the balance of the capital repayments outstanding. Rentals under operating leases are charged on a straight-line basis over the lease term, even if payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are spread on a straight-line basis over the lease term. (h) Goodwill Goodwill arising on the acquisition of subsidiaries and businesses, represents an excess of the cost of acquisition over the fair value of the net identifiable assets acquired at the date of acquisition and is carried at cost less accumulated impairment losses. Goodwill is tested annually for impairment. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount exceeds the higher of an asset s fair value less cost to sell and value in use. The gain or loss on the disposal of an entity includes the carrying amount of goodwill relating to the entity sold. Goodwill arising on acquisitions before the date of transition to IFRS has been retained at the previous UK GAAP amounts. Goodwill arising on acquisitions in the year ended 31 March 1998 and earlier periods has been written off to reserves and has not been reinstated in the balance sheet and is not included in determining any subsequent profit or loss on disposal. (i) Computer software Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and use specific software. These costs are included in the balance sheet within intangible assets and are amortised over their estimated useful lives, not exceeding three years. (j) Inventories Inventories are stated at the lower of cost and net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate. (k) Trade receivables Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowance for estimated irrecoverable amounts. (l) Trade payables Trade payables are not interest bearing and are stated at their nominal value. (m) Bank borrowings Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis in the consolidated income statement using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. 6

7 (n) Provisions Provisions for restructuring costs are recognised when the Group has a present legal or constructive obligation as a result of past events, when it is more likely than not that an outflow of resources will be required to settle the obligation and when the amount has been reliably estimated. Restructuring provisions comprise largely employee termination payments and asset write-offs, which in the ordinary course of business would continue to be used and not be deemed impaired. Provisions are not recognised for future operating losses. Provision is also made for the anticipated net costs of onerous leases. The provisions are set up for payment of annual rental costs on empty properties and to meet shortfalls on sub-tenanted properties. (o) Retirement benefits The Group has both defined benefit and defined contribution schemes. For defined benefit schemes, the retirement benefit obligation recognised in the Group s balance sheet represents the present value of the defined benefit obligation less the fair value of the plan assets. The cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the statement of recognised income and expense in full in the period in which they occur. As the defined benefit schemes are now closed, no service cost is incurred. For defined contribution schemes the amount charged to the income statement in the period is the amount of contributions payable in the period. Difference between contributions payable in the period and contributions actually paid are shown either in accruals or prepayments in the balance sheet. (p) Share-based payments The Group issues equity-settled share-based payments to certain employees. Equity-settled sharebased payments are measured at fair value at the date of grant. The fair value determined at the date of grant of the equity-settled share-based payments is expensed to the income statement on a straight-line basis over the vesting period, based on the estimate of the number of options that will eventually vest. Cash-settled share-based payments are measured at the fair value at the balance sheet date and the movement in this liability is recorded in the income statement. Fair value is measured using the Black-Scholes model. In accordance with the transitional provisions, this policy has been applied to all grants of equity instruments after 7 November 2002 which were unvested at 1 January

8 5. Restated IFRS financial information Unaudited reconciliation of UK GAAP profit and loss account to IFRS income statement for 26 weeks to 3 October 2004 UK GAAP as previously IFRS as reported Adjustment restated Revenue 122, ,873 Operating profit 1,005 1,559 2,564 Operating profit before major restructuring programme and goodwill amortisation 1, ,229 Major restructuring programme - 1,335 1,335 Goodwill amortisation (151) Operating profit 1,005 1,559 2,564 Profit on disposal of fixed assets 1,335 (1,335) - 2, ,564 Finance costs - interest (net) (1,610) (71) (1,681) - refinancing costs and amortisation of debt issue costs (769) - (769) (2,379) (71) (2,450) (Loss)/profit before tax (39) Tax (1,089) - (1,089) Loss for the period (1,128) 153 (975) Loss for the period 26 weeks to 3 October As previously reported under UK GAAP (1,128) Reversal of goodwill amortisation 151 Cost of defined benefit pension schemes 3 Share options cost (1) Total adjustments 153 As restated under IFRS (975) ====== 8

9 Unaudited reconciliation of UK GAAP profit and loss account to IFRS income statement for 52 weeks to 3 April 2005 UK GAAP as previously IFRS as reported Adjustment restated Revenue 244, ,551 Operating loss (7,306) 2,328 (4,978) Operating profit before major restructuring programme and goodwill amortisation 1, ,768 Major restructuring programme (8,532) 1,786 (6,746) Goodwill amortisation (302) Operating loss (7,306) 2,328 (4,978) Profit on disposal of fixed assets 1,918 (1,918) - (5,388) 410 (4,978) Finance costs - interest (net) (3,184) (142) (3,326) - refinancing costs and amortisation of debt issue costs (932) - (932) (4,116) (142) (4,258) Loss before tax (9,504) 268 (9,236) Tax (4,424) - (4,424) Loss for the financial year (13,928) 268 (13,660) Loss for the financial year 52 weeks to 3 April As previously reported under UK GAAP (13,928) Reversal of goodwill amortisation 302 Goodwill impairment charge (132) Costs of deferred benefit pension schemes 113 Share options cost (15) Total adjustments 268 As restated under IFRS (13,660) ====== 9

10 Unaudited reconciliation of UK GAAP balance sheet to IFRS balance sheet at 5 April 2004 UK GAAP as previously IFRS as reported Adjustment restated Non-current assets Intangible assets 3, ,029 Property, plant & equipment 23,872 (231) 23,641 Deferred tax asset , ,127 Current assets Inventories 29,345-29,345 Trade & other receivables 50,358 (457) 49,901 Cash & cash equivalents 11,919-11,919 91,622 (457) 91,165 Total assets 119, ,292 Current liabilities Borrowings 3,883-3,883 Other 43,292 (88) 43,204 47,175 (88) 47,087 Net current assets 44,447 (369) 44,078 Non-current liabilities Borrowings 39,586-39,586 Retirement benefit obligation - 3,628 3,628 39,586 3,628 43,214 Total liabilities 86,761 3,540 90,301 Net assets 32,531 (3,540) 28,991 Equity Share capital 7,465-7,465 Share premium 20,986-20,986 Translation reserve (4,032) 4,032 - Profit & loss account 8,112 (7,572) 540 Total equity 32,531 (3,540) 28,991 10

11 Unaudited reconciliation of UK GAAP net assets to IFRS net assets at 5 April 2004 Net assets 000 As previously reported under UK GAAP 32,531 Net deficit of defined benefit pension schemes (3,540) As restated under IFRS 28,991 ====== 11

12 Unaudited reconciliation of UK GAAP balance sheet to IFRS balance sheet at 3 October 2004 UK GAAP as previously IFRS as reported Adjustment restated Non-current assets Intangible assets 3, ,961 Property, plant & equipment 19,808 (163) 19,645 Deferred tax asset , ,161 Current assets Inventories 29,909-29,909 Trade & other receivables 55,141 (555) 54,586 Cash & cash equivalents 16,956-16, ,006 (555) 101,451 Total assets 125, ,612 Current liabilities Borrowings 49,919-49,919 Other 43,258-43,258 93,177-93,177 Net current assets 8,829 (555) 8,274 Non-current liabilities Borrowings Retirement benefit obligation - 3,537 3, ,537 3,686 Total liabilities 93,326 3,537 96,863 Net assets 32,135 (3,386) 28,749 Equity Share capital 7,465-7,465 Share premium 20,986-20,986 Translation reserve (3,300) 4, Profit & loss account 6,984 (7,418) (434) Total equity 32,135 (3,386) 28,749 12

13 Unaudited reconciliation of UK GAAP net assets to IFRS net assets at 3 October 2004 Net assets 000 As previously reported under UK GAAP 32,135 Reversal of goodwill amortisation 151 Net deficit of defined benefit pension schemes (3,537) Total adjustments (3,386) As restated under IFRS 28,749 ====== 13

14 Unaudited reconciliation of UK GAAP balance sheet to IFRS balance sheet at 3 April 2005 UK GAAP as previously IFRS as reported Adjustment restated Non-current assets Intangible assets 1, ,106 Property, plant & equipment 13,568 (176) 13,392 15, ,498 Current assets Inventories 28,030-28,030 Trade & other receivables 50,381-50,381 Cash & cash equivalents 14,962-14,962 93,373-93,373 Total assets 108, ,871 Current liabilities Borrowings 45,453-45,453 Short-term provisions Other 40,180-40,180 85, ,338 Net current assets 7,740 (705) 7,035 Non-current liabilities Borrowings Retirement benefit obligation 181 3,914 4,095 Provisions & other non-current liabilities 3,975 (705) 3,270 4,199 3,209 7,408 Total liabilities 89,832 3,914 93,746 Net assets 18,869 (3,744) 15,125 Equity Share capital 7,465-7,465 Share premium 20,986-20,986 Translation reserve (3,766) 4, Profit & loss account (5,816) (7,776) (13,592) Total equity 18,869 (3,744) 15,125 14

15 Unaudited reconciliation of UK GAAP net assets to IFRS net assets at 3 April 2005 Net assets 000 As previously reported under UK GAAP 18,869 Reversal of goodwill amortisation 302 Goodwill impairment charge (132) Net deficit of defined benefit pension schemes (3,914) Total adjustments (3,744) As restated under IFRS 15,125 ====== 15

16 Unaudited reconciliation of UK GAAP and IFRS cash flows for the 26 weeks to 3 October 2004 UK GAAP as previously IFRS as reported Adjustment restated Operating profit 1,005 1,559 2,564 Adjustments for: Depreciation & impairment on property, plant & equipment 2,549 (71) 2,478 Amortisation & impairment of intangible assets 151 (80) 71 Gain on disposal of property, plant & equipment - (1,335) (1,335) Share option expense Decrease in provisions - (162) (162) Operating cash flow before movement in working capital 3,705 (88) 3,617 Increase in inventories (1,566) - (1,566) Increase in receivables (2,341) - (2,341) Decrease in payables (475) 88 (387) Cash generated by operations (677) - (677) Interest paid (net) (1,927) - (1,927) Taxation paid (418) - (418) Net cash outflow from operating activities (3,022) - (3,022) Cash flows from investing activities Proceeds on disposal of property, plant & equipment 3,525-3,525 Purchases of property, plant & equipment (668) 3 (665) Purchases of intangible assets - (3) (3) Net cash from investing activities 2,857-2,857 Cash flows from financing activities Net repayments of debt (619) - (619) Refinancing costs paid (580) - (580) Increase in bank overdrafts - 6,275 6,275 Repayments of obligations under finance leases (55) - (55) Net cash (used in)/from financing activities (1,254) 6,275 5,021 Net (decrease)/increase in cash & cash equivalents (1,419) 6,275 4,856 Cash & cash equivalents at beginning of period 8,948 2,971 11,919 Effect of foreign exchange rate changes Cash & cash equivalents at end of period 7,654 9,302 16,956 UK GAAP cash & cash equivalents include overdrafts of 2,971,000 and 9,302,000 at 5 April 2004 and 3 October 2004 respectively. IFRS does not classify overdrafts within cash & cash equivalents. 16

17 Unaudited reconciliation of UK GAAP and IFRS cash flows for the 52 weeks to 3 April UK GAAP as previously IFRS as reported Adjustment restated Operating loss (7,306) 2,328 (4,978) Adjustments for: Depreciation & impairment on property, plant & equipment 5,943 (132) 5,811 Amortisation & impairment of intangible assets 2,038 (38) 2,000 Government grants (19) 19 - Gain on disposal of property, plant & equipment - (1,918) (1,918) Share option expense Increase in provisions 3,760 (343) 3,417 Operating cash flow before movement in working capital 4,416 (69) 4,347 Decrease in inventories 1,264-1,264 Increase in receivables (297) - (297) Decrease in payables (3,800) 69 (3,731) Cash generated by operations 1,583-1,583 Interest paid (net) (3,800) - (3,800) Taxation paid (2,159) - (2,159) Net cash outflow from operating activities (4,376) - (4,376) Cash flows from investing activities Proceeds on disposal of property, plant & equipment 7,826-7,826 Purchases of property, plant & equipment (2,061) 77 (1,984) Purchases of intangible assets - (77) (77) Net cash from investing activities 5,765-5,765 Cash flows from financing activities Net advances of debt 1,536-1,536 Refinancing costs paid (743) - (743) Increase in bank overdrafts - 1,050 1,050 Repayments of obligations under finance leases (136) - (136) Net cash from financing activities 657 1,050 1,707 Net increase in cash & cash equivalents 2,046 1,050 3,096 Cash & cash equivalents at beginning of period 8,948 2,971 11,919 Effect of foreign exchange rate changes (58) 5 (53) Cash & cash equivalents at end of period 10,936 4,026 14,962 UK GAAP cash & cash equivalents include overdrafts of 2,971,000 and 4,026,000 at 5 April 2004 and 3 April 2005 respectively. IFRS does not classify overdrafts within cash & cash equivalents.