RNS Number:7336E
Vista Group PLC
28 September 2007
VISTA GROUP PLC
("Vista" or the "Company")
UNAUDITED INTERIM RESULTS
FOR SIX MONTHS ENDED 30 JUNE 2007
Unaudited six Unaudited six
months to 30 months to 30
June 2007 June 2006
#000 #000
Revenue 4,078 3,649
Gross profit 1,659 1,324
Operating profit 569 328
Profit before tax 517 263
Basic earnings per share (pence) 2.3 1.14
For further information:
Vista Group plc
Keith Sadler (Chief Executive) 0151 608 1423
Keith Salisbury (Non Executive Director) 07851 008 212
WH Ireland Limited
David Youngman 0161 832 2174
VISTA GROUP PLC
("Vista" or the "Company")
UNAUDITED INTERIM RESULTS
FOR SIX MONTHS ENDED 30 JUNE 2007
Chairman's Statement and management report
Results
I am pleased to report another improved set of half year results in what, I
believe, remains a tough market.
Turnover in the period under review increased by 11.7 % to #4.1 million (2006
#3.6 million) with profit before tax increasing to #517,000 (2006 #263,000).
Basic earnings per share rose to 2.3p per share (2006 1.14p per share)
Operating cash flow was ahead of last year and continued to be utilised to
further reduce bank debt.
Composite doors sales have increased steadily during this period, with an
unexpected increase in door panel sales. The panel market continues to remain
extremely price competitive but we believe we have increased sales due to our
service, quality and accreditations. We have launched new marketing material
including brochures and wall charts and we exhibited in March at the annual "
Glassex" show. We have continued to focus on all cost areas and overheads which
has helped to maintain margins.
Outlook
The second half of the year is likely to be challenging as we believe the market
will continue to be tough. The achievement of our sales target and attributable
margins will be the principal risks and uncertainties. We believe that Vista
has an excellent reputation in the market and the board expects the Group to
continue to perform well.
Gavin Johnson
Chairman
27th September 2007
Consolidated Income Statement
for the six months ended 30 June 2007
Note Unaudited Unaudited Year ended
Six months to Six months to 31 Dec 2006
30 June 2007 30 June 2006
#000 #000 #000
Revenue 4,078 3,649 7,280
Cost of sales (2,419) (2,325) (4,798)
_____ _____ ______
Gross profit 1,659 1,324 2,482
Distribution expenses (155) (136) (301)
Administrative expenses (935) (860) (1,424)
_____ _____ _____
Operating profit 569 328 757
Financial income - 1 3
Financial expenses (52) (66) (126)
_____ _____ _____
Net financing costs (52) (65) (123)
Profit before tax 517 263 634
Taxation 2 (163) (88) (201)
_____ _____ _____
Profit for the period attributable to 354 175 433
equity shareholders of the parent
_____ _____ _____
Basic earnings per share 3 2.3p 1.14p 2.81p
There were no recognised gains and losses in the period, or in the prior periods
shown, other than the results shown above.
Statement of Changes in Shareholders Equity
for the six months ended 30 June 2007
Share Share premium Retained Total
Capital earnings
#000 #000 #000 #000
Profit for the period - - 354 354
_____ _____ _____ _____
Total recognised income and expense - - 354 354
Opening shareholders funds at 1 January 77 895 975 1,947
2007
_____ _____ _____ _____
Closing shareholders funds at 30 June 2007 77 895 1,329 2,301
_____ _____ _____ _____
For the six months ended 30 June 2006
Share Share Retained Total
capital premium earnings
#000 #000 #000 #000
Profit for the period - - 175 175
_____ _____ _____ _____
Total recognised income and expense - - 175 175
Opening shareholders funds at 1 January 77 895 542 1,514
2006
_____ _____ _____ _____
Closing shareholders funds at 30 June 2006 77 895 717 1,689
_____ _____ _____ _____
For the year ended 31 December 2006
Share Share Retained Total
Capital premium earnings
#000 #000 #000 #000
Profit for the period - - 433 433
_____ _____ _____ _____
Total recognised income and expense - - 433 433
Opening shareholders funds at 1 January 77 895 542 1,514
2006
_____ _____ _____ _____
Closing shareholders funds at 77 895 975 1,947
31 December 2006
_____ _____ _____ _____
Consolidated Balance Sheet
at 30 June 2007
Unaudited Unaudited 31
30 June 2007 30 June December
2006 2006
#000 #000 #000
Non-current assets
Plant and equipment 393 561 492
Goodwill 1,974 1,974 1,974
Deferred tax asset 39 26 39
_____ _____ _____
Total non-current assets 2,406 2,561 2,505
_____ _____ _____
Current assets
Inventories 670 551 566
Trade and other receivables 1,560 1,586 1,544
Cash and cash equivalents 1 45 13
_____ _____ _____
Total current assets 2,231 2,182 2,123
_____ _____ _____
Total assets 4,637 4,743 4,628
_____ _____ _____
Current liabilities
Financial liabilities (509) (1,275) (504)
Trade and other payables (1,123) (1,477) (1,363)
Current tax payable (210) (113) (210)
_____ _____ _____
Total current liabilities (1,842) (2,865) (2,077)
_____ _____ _____
Non-current liabilities
Financial liabilities (331) (101) (604)
Current tax payable (163) (88) -
_____ _____ _____
Total non current liabilities (494) (189) (604)
_____ _____ _____
Total liabilities (2,336) (3,054) (2,681)
_____ _____ _____
Net assets 2,301 1,689 1,947
_____ _____ _____
Equity
Share capital 77 77 77
Share premium 895 895 895
Retained earnings 1,329 717 975
_____ _____ _____
Total equity attributable to equity shareholders 2,301 1,689 1,947
_____ ______ _____
Consolidated Cash Flow Statement
for the six months ended 30 June 2007
Unaudited Unaudited Year ended
Six months to Six months 31 December
30 June 2007 to 2006
30 June 2006
#000 #000 #000
Cash flows from operating activities
Profit before tax 517 263 634
Adjustments for:
Depreciation 105 101 210
Financial income - (1) (3)
Financial expense 52 66 126
Profit on sale of plant and equipment - - (4)
_____ _____ _____
Operating profit before changes in working capital and 674 429 963
provisions
Net movement in working capital (360) (66) (152)
_____ _____ _____
Cash generated from the operations 314 363 811
Tax paid - - (117)
_____ _____ _____
Net cash inflow from operating activities 314 363 694
_____ _____ _____
Cash flows from investing activities
Interest received - 1 3
Acquisition of plant and equipment (6) (24) (66)
Proceeds from sale of plant and equipment - - 5
_____ _____ _____
Net cash outflow from investing activities (6) (23) (58)
____ _____ ________
Cash flows from financing activities
Interest paid (52) (66) (126)
Repayment of borrowings (242) (227) (464)
Payment of finance lease liabilities (26) (39) (70)
____ _____ _____
Net cash outflow from financing activities (320) (332) (660)
____ _____ _____
Net (decrease)/ increase in cash and cash equivalents (12) 8 (24)
Cash and cash equivalents at beginning of period 13 37 37
____ _____ _____
Cash and cash equivalents at end of period 1 45 13
____ _____ _____
Notes
(forming part of the interim financial statements)
1 Basis of preparation
The interim financial statements of Vista Group PLC for the period ended 30 June
2007 are unaudited and do not comprise statutory accounts within the meaning of
Section 240 of the Companies Act 1985.
From 1 January 2007, Vista Group PLC is required to prepare its consolidated
financial statements in accordance with adopted International Financial
Reporting Standards (IFRS) as adopted by the European Union ('adopted IFRSs').
Reconciliations and descriptions of the effect of the transition from UK GAAP to
adopted IFRSs on the Group's balance sheet and its income statement are provided
on pages 10 to 20 of this interim report.
This interim financial information has been prepared on the basis of the
recognition and measurement requirements of endorsed IFRSs as at 30 June 2007
that are effective (or available for early adoption) at 31 December 2007, the
Group's first annual reporting date at which it is required to apply adopted
IFRSs. Based on these adopted IFRSs, the directors have applied the accounting
policies set out in the restatement report, included in this document, which
they expect to apply when the first annual financial statements are prepared in
accordance with adopted IFRSs for the year ending 31 December 2007.
Standards currently in issue and adopted by the EU are subject to interpretation
issued from time to time by the International Financial Reporting
Interpretations Committee (IFRIC). Further standards may be issued by the
International Accounting Standards Board that will be adopted for financial
years beginning on or after 1 January 2007. Accordingly, the accounting
policies for that annual period will be determined finally only when the annual
financial statements are prepared for the year ending 31 December 2007.
The comparative figures for the financial year ended 31 December 2006 are not
the Group's statutory accounts for that financial year. Those accounts, which
were prepared under UK GAAP, have been reported on by the company's auditors and
delivered to the registrar of companies. The report of the auditors was (i)
unqualified, (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 237(2) or (3) of the Companies
Act 1985.
2 Taxation
The tax charge is based on the estimated tax rate for the year ended 31 December
2007.
3 Earnings per share
The calculation of the basic earnings per share is based on the profit after
taxation divided by the weighted average number of shares in issue, being
15,382,116 (period ended 30 June 2006: and year ended 31 December 2006: same).
Copies of the interim statement will be sent to shareholders shortly and will be
available to the public at the registered office of the Company at Vista Group
plc, Unit H1, Prenton Way, North Cheshire Trading Estate, Wirral, Merseyside
CH43 3DU and on the Company's website at www.vistapanels.co.uk.
IFRS Restatement report (unaudited)
Vista Group PLC transition to IFRS
From 1 January 2007 Vista Group PLC ('the Group') is required to prepare its
consolidated accounts under International Accounting Standards and International
Financial Reporting Standards (collectively referred to as "adopted IFRS's"
throughout this document) as adopted by the European Union ("EU") having
previously prepared its accounts under UK Generally Accepted Accounting
Principles ("UK GAAP"). The transition date for the Group is 1 January 2006 and
this report covers the restatement of the opening consolidated balance sheet as
at 1 January 2006, the consolidated accounts for the year ended 31 December 2006
and the consolidated accounts for the six months ended 30 June 2006. This
report shows the impact of the transition to adopted IFRS's on the Group's
reported performance and financial position; reconciles this to previously
reported financial information; and explains the reasons for the adjustments.
Transitional arrangements - Application of IFRS 1
The Group's financial statements for the year ended 31 December 2007 will be the
Group's first annual financial statements in compliance with adopted IFRS's.
The Group's transition date is 1 January 2006 and the Group prepared its opening
IFRS balance sheet at that date. .
On transition to adopted IFRS's an entity is generally required to apply adopted
IFRS's retrospectively, except where an exemption is available under IFRS 1 '
First-time Adoption of International Financial Reporting Standards'.
The following are the key elections from IFRS 1 that were made by the Group:
* The Group has elected to adopt the IFRS 1 exemption in relation to business
combinations and will only apply IFRS 3 'Business Combinations'
prospectively from 1 January 2006. As a result the balance of goodwill
under UK GAAP as at 31 December 2005 will be deemed the cost of
goodwill at 1 January 2006.
International Financial Reporting Standards - Changes in accounting policies
The interim results for the period ended 30 June 2007 have been prepared in
accordance with accounting policies under adopted IFRS's. The Group's revised
accounting policies under IFRS are included in note 2 to this restatement
report.
IFRS Restatement report (continued)
Reconciliation of income statement from UK GAAP to adopted IFRS's (unaudited)
UK GAAP IFRS UK GAAP IFRS
30 June Goodwill 30 June 31 December Goodwill 31 December
2006 amortisation 2006 2006 amortisation 2006
(note 1) (note 1)
#000 #000 #000 #000 #000 #000
Revenue 3,649 - 3,649 7,280 - 7,280
Cost of sales (2,325) - (2,325) (4,798) - (4,798)
_____ _____ _____ _____ _____ _____
Gross profit 1,324 1,324 2,482 - 2,482
Distribution expenses (136) (136) (301) - (301)
Administration expenses (915) 55 (860) (1,535) 111 (1,424)
_____ _____ _____ _____ _____ _____
Operating profit 273 55 328 646 111 757
Financial income 1 1 3 - 3
Financial expenses (66) (66) (126) - (126)
_____ _____ _____ _____ _______ _____
Net financing costs (65) (65) (123) - (123)
_____ _____ _____ _____ _____ _____
Profit before tax 208 55 263 523 111 634
Taxation (88) (88) (201) - (201)
_____ _____ _____ _____ _____ _____
Profit for the period, all 120 55 175 322 111 433
attributable to equity
shareholders of the parent
_____ _____ _____ _____ _____ _____
Basic earnings per share 0.78p 0.36p 1.14p 2.1p 0.71p 2.81p
IFRS Restatement report (continued)
Reconciliation of balance sheet from UK GAAP to adopted IFRS's (unaudited)
UK GAAP IFRS UK GAAP IFRS
30 June Goodwill 30 June 31 December Goodwill 31 December
2006 amortisation 2006 2006 amortisation 2006
(note 1) (note 1)
#000 #000 #000 #000 #000 #000
Non current assets
Plant and equipment 561 - 561 492 -- 492
Goodwill 1,919 55 1,974 1,863 111 1,974
Deferred tax asset 26 - 26 39 - 39
_____ _____ _____ _____ _____ _____
Total non current assets 2,506 55 2,561 2,394 111 2,505
_____ _____ _____ _____ _____ _____
Current assets
Inventories 551 - 551 566 - 566
Trade and other receivables 1,586 - 1,586 1,544 - 1,544
Cash and cash equivalents 45 - 45 13 - 13
_____ _____ _____ _____ _____ _____
Total current assets 2,182 - 2,182 2,123 - 2,123
_____ _____ _____ _____ _____ _____
Total assets 4,688 55 4,743 4,517 111 4,628
_____ _____ _____ _____ _____ _____
Current liabilities
Financial liabilities (1,275) - (1,275) (504) - (504)
Trade and other payables (1,477) - (1,477) (1,363) - (1,363)
Current tax payable (113) - (113) (210) - (210)
_____ _____ _____ _____ ______ _____
Total current liabilities (2,865) - (2,865) (2,077) - (2,077)
_____ _____ _____ _____ _____ _____
Non current liabilities
Financial liabilities (101) - (101) (604) - (604)
Current tax payable (88) - (88) - - -
_____ _____ _____ _____ _____ ______
Total non current (189) - (189) (604) - (604)
liabilities
_____ _____ _____ _____ _____ _____
Total liabilities (3,054) - (3,054) (2,681) - (2,681)
_____ _____ _____ _____ _____ _____
Net assets 1,634 55 1,689 1,836 111 1,947
_____ _____ _____ _____ _____ _____
Equity
Share capital 77 - 77 77 - 77
Share premium 895 - 895 895 - 895
Retained earnings 662 55 717 864 111 975
_____ _____ _____ _____ _____ _____
Total equity attributable to 1,634 55 1,689 1,836 111 1,947
equity shareholders
_____ _____ _____ _____ _____ _____
IFRS Restatement report (continued)
Reconciliation of balance sheet from UK GAAP to adopted IFRS's (unaudited)
(continued)
UK GAAP IFRS
1 January Goodwill 1 January
2006 amortisation 2006
(note 1)
#000 #000 #000
Non current assets
Plant and equipment 525 - 525
Goodwill 1,974 - 1,974
Deferred tax asset 26 - 26
_____ _____ _____
Total non current assets 2,525 - 2,525
_____ _____ _____
Current assets
Inventories 448 - 448
Trade and other receivables 1,568 - 1,568
Cash and cash equivalents 37 - 37
_____ _____ _____
Total current assets 2,053 - 2,053
_____ _____ _____
Total assets 4,578 - 4,578
_____ _____ _____
Current liabilities
Financial liabilities (1,484) - (1,484)
Trade and other payables (1,421) - (1,421)
Current tax payable (113) - (113)
_____ _____ _____
Total current liabilities (3,018) - (3,018)
_____ _____ _____
Non current liabilities
Other financial liabilities (46) - (46)
_____ _____ _____
Total liabilities (3,064) - (3,064)
_____ _____ _____
Net assets 1,514 - 1,514
_____ _____ _____
Equity
Share capital 77 - 77
Share premium 895 - 895
Retained earnings 542 - 542
_____ _____ _____
Total equity attributable to equity shareholders 1,514 - 1,514
_____ _____ _____
IFRS Restatement report (continued)
Reconciliation of cash flow statements from UK GAAP to adopted IFRS's
(unaudited)
With the exception of reclassifications, there were no material differences
between cash flows presented under adopted IFRS's and the cash flows presented
under UK GAAP.
Reconciliation of retained earnings from UK GAAP to adopted IFRS's (unaudited)
UK GAAP IFRS UK GAAP IFRS
30 June Goodwill 30 June 31 December Goodwill 31 December
2006 amortisation 2006 2006 amortisation 2006
(note 1) (note 1)
#000 #000 #000 #000 #000 #000
Profit for the financial 120 55 175 322 111 433
period
_____ _____ _____ _____ _____ _____
Total recognised income in 120 55 175 322 111 433
the period
Opening retained earnings 542 - 542 542 - 542
_____ _____ _____ _____ _____ _____
Closing retained earnings 662 55 717 864 111 975
_____ _____ _____ _____ _____ _____
Notes to the IFRS Restatement report
1. IFRS 3 'Business combinations' - income statement
The Group has elected to take the exemption available under IFRS 1 in respect of
restating business combinations and therefore the net book value of goodwill as
at the transition date, 1 January 2006, is deemed to be cost.
The adoption of IFRS 3 'Business combinations' has resulted in the write back of
goodwill amortised since 1 January 2006 (see note 2). In the six months ended
30 June 2006 #55,000 amortisation has been added back and #111,000 has been
added back for the year ended 31 December 2006.
Under UK GAAP goodwill is amortised over its useful estimated life. Under IFRS
goodwill is not amortised but assessed at least every 12 months for impairment.
The Group undertook an impairment review as at the date of transition, 1 January
2006, and at least every 12 months since transition in accordance with IAS 36.
2. Accounting policies
The following accounting policies represent the Group's revised policies under
IFRS which will be adopted by the Group in its financial statements for the year
ended 31 December 2007.
Basis of consolidation
The Group financial statements comprise the financial statements of the Company
and all of its subsidiary undertakings made up to the financial year end.
Subsidiaries are entities controlled by the Group. Control exists when the Group
has the power, directly or indirectly, to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing
control, potential voting rights that are currently exercisable or convertible
are taken into account. The financial statements of subsidiaries are included in
the consolidated financial statements from the date that control commences until
the date that control ceases.
The results of subsidiary undertakings acquired or disposed of in the year are
included in the Group Income Statement from the effective date of acquisition or
to the effective date of disposal. Accounting policies are consistently applied
throughout the Group. Inter-company balances and transactions have been
eliminated. Material profits from inter-company sales, to the extent that they
are not yet realised outside the Group, have also been eliminated.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with
banks, other short term highly liquid investments. Bank overdrafts are shown
within borrowings in current liabilities on the balance sheet.
Bank overdrafts that are repayable on demand and form an integral part of the
Group's cash management are included as a component of cash and cash equivalents
for the purpose only of the statement of cash flows.
Notes to the IFRS Restatement report (continued)
2. Accounting policies (continued)
Plant and equipment
Plant and equipment are stated at cost less accumulated depreciation and
impairment losses.
Where parts of an item of plant and equipment have different useful lives, they
are accounted for as separate items of plant and equipment.
Leases in which the Group assumes substantially all the risks and rewards of
ownership of the leased asset are classified as finance leases.
Depreciation is charged to the income statement on a straight-line basis over
the estimated useful lives of each part of an item of plant and equipment. The
estimated useful lives are as follows:
Improvements to leasehold property Over lease term
Plant and machinery - 10-20% per annum on valuation
Fixtures and fittings 20% straight line
Motor vehicles - 33.3% per annum on reducing balance
Computer equipment - 33.3% per annum on reducing balance
Inventories
Inventories are valued at the lower of cost and net realisable value. Cost is
calculated as the cost of materials, direct labour and appropriate production
overheads estimated based on normal capacity levels. Net realisable value is
based on estimated selling price less additional costs to completion and
disposal.
Work in progress
Work in progress is valued on the basis of direct costs plus attributable
overheads based on normal level of activity. Provision is made for any
foreseeable losses where appropriate. No element of profit is included in the
valuation of work in progress.
Intangible assets
All business combinations are accounted for by applying the purchase method.
Goodwill represents amounts arising on acquisition of subsidiaries. In respect
of business acquisitions that have occurred since 1 January 2006, goodwill
represents the difference between the cost of the acquisition and the fair value
of the net identifiable assets and contingent liabilities acquired.
Identifiable intangibles are those which can be sold separately or which arise
from legal rights regardless of whether those rights are separable.
Adjustments are made where necessary to bring the accounting policies of
acquired businesses into alignment with those of the Group.
Goodwill on acquisition of subsidiaries is included in intangible assets.
Goodwill is allocated to cash generating units and is not amortised, but is
tested annually for impairment. An impairment charge is recognised for any
amount by which the carrying value of goodwill exceeds its fair value.
In respect of acquisitions prior to 1 January 2006, goodwill is included at 1
January 2006 on the basis of its deemed cost, which represents the amount
recorded under UK GAAP which was broadly comparable save that only separable
intangibles were recognised and goodwill was amortised. On transition,
amortisation of goodwill has ceased as required by IFRS 1.
Notes to the IFRS Restatement report (continued)
2. Accounting policies (continued)
Revenue
Revenue represents the amounts derived from the provision of goods and services,
stated net of Value Added Tax.
Taxation
Tax on the profit or loss for the period comprises current and deferred tax. Tax
is recognised in the income statement except to the extent that it relates to
items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the period,
using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous years.
Deferred tax is provided on temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used
for taxation purposes. The following temporary differences are not provided for:
the initial recognition of goodwill; the initial recognition of assets or
liabilities that affect neither accounting nor taxable profit other than in a
business combination, and differences relating to investments in subsidiaries to
the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation
or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be
utilised.
Interest bearing borrowings
Interest bearing borrowings are recognised initially at fair value less
attributable transaction costs. Subsequent initial recognition, interest
bearing borrowings are stated at amortised cost with any difference between cost
and redemption value being recognised in the income statement over the period of
the borrowings on an effective interest basis.
Provisions
A provision is recognised in the balance sheet when the Group has a present
legal or constructive obligation as a result of a past event, and it is probable
that an outflow of economic benefits will be required to settle the obligation.
If the effect is material, provisions are determined by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of
the time value of money and, where appropriate, the risks specific to the
liability.
Impairment of assets
The carrying amounts of the Group's assets other than, inventories and deferred
tax assets, are reviewed at each balance sheet date to determine whether there
is any indication of impairment. If any such indication exists, the asset's
recoverable amount is estimated.
Notes to the IFRS Restatement report (continued)
2. Accounting policies (continued)
Impairment of assets (continued)
For goodwill, assets that have an indefinite useful life and intangible assets
that are not yet available for use, the recoverable amount is estimated at each
balance sheet date.
An impairment loss is recognised whenever the carrying amount of an asset or its
cash-generating unit exceeds its recoverable amount. Impairment losses are
recognised in the income statement.
Impairment losses recognised in respect of cash-generating units are allocated
first to reduce the carrying amount of any goodwill allocated to cash-generating
units and then to reduce the carrying amount of the other assets in the unit on
a pro rata basis. A cash generating unit is the smallest identifiable group of
assets that generates cash inflows that are largely independent of the cash
inflows from other assets or groups of assets.
Goodwill, assets that have an indefinite useful life and intangible assets that
are not yet available for use were tested for impairment as at 1 January 2006,
the date of transition to Adopted IFRSs, even through no indication of
impairment existed.
When a decline in the fair value of an available-for-sale financial asset has
been recognised directly in equity and there is objective evidence that the
asset is impaired, the cumulative loss that had been recognised directly in
equity is recognised in profit or loss even though the financial asset has not
been derecognised. The amount of the cumulative loss that is recognised in
profit or loss is the difference between the acquisition cost and current fair
value, less any impairment loss on that financial asset previously recognised in
profit or loss.
Calculation of recoverable amount
The recoverable amount of the Group's investments in held-to-maturity securities
and receivables carried at amortised cost is calculated as the present value of
estimated future cash flows, discounted at the original effective interest rate
(i.e. the effective interest rate computed at initial recognition of these
financial assets). Receivables with a short duration are not discounted.
The recoverable amount of other assets is the greater of their net selling price
and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to
the asset. For an asset that does not generate largely independent cash inflows,
the recoverable amount is determined for the cash-generating unit to which the
asset belongs.
Reversals of impairment
An impairment loss in respect of a held-to-maturity security or receivable
carried at amortised cost is reversed if the subsequent increase in recoverable
amount can be related objectively to an event occurring after the impairment
loss was recognised.
An impairment loss in respect of an investment in an equity instrument
classified as available for sale is not reversed through profit or loss. If the
fair value of a debt instrument classified as available-for-sale increases and
the increase can be objectively related to an event occurring after the
impairment loss was recognised in profit or loss, the impairment loss is
reversed through profit or loss.
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, an impairment loss is reversed when there is an indication that the
impairment loss may no longer exist and there has been a change in the estimates
used to determine the recoverable amount.
An impairment loss is reversed only to the extent that the asset's carrying
amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognised.
Notes to the IFRS Restatement report (continued)
2. Accounting policies (continued)
Segment reporting
A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and rewards that are different
from those of other business segments.
A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and returns that are
different from those of segments operating in other economic environments
Expenses
Operating lease payments
Payments made under operating leases are recognised in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are
recognised in the income statement as an integral part of the total lease
expense.
Finance lease payments
Minimum lease payments are apportioned between the finance charge and the
reduction of the outstanding liability. The finance charge is allocated to each
period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability.
Net financing costs
Net financing costs comprise interest payable, finance charges on shares
classified as liabilities and finance leases, interest receivable on funds
invested, dividend income and foreign exchange gains and losses that are
recognised in the income statement.
Interest income and interest payable is recognised in profit or loss as it
accrues, using the effective interest method. Dividend income is recognised in
the income statement on the date the entity's right to receive payments is
established.
Employee benefits
Defined contribution plan
The Group operates a defined contribution pension scheme for employees. The
assets of the scheme are held separately from those of the Group. The annual
contributions payable are charged to the income statement.
Notes to the IFRS Restatement report (continued)
2. Accounting policies (continued)
Financial instruments
Following the adoption of IAS 32, financial instruments issued by the Group are
treated as equity (i.e. forming part of shareholders' funds) only to the extent
that they meet the following two conditions:
(a) they include no contractual obligations upon the company (or group as
the case may be) to deliver cash or other financial assets or to exchange
financial assets or financial liabilities with another party under conditions
that are potentially unfavourable to the company (or group); and
(b) where the instrument will or may be settled in the company's own equity
instruments, it is either a non-derivative that includes no obligation to
deliver a variable number of the company's own equity instruments or is a
derivative that will be settled by the company's exchanging a fixed amount of
cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are
classified as a financial liability. Where the instrument so classified takes
the legal form of the company's own shares, the amounts presented in these
financial statements for called up share capital and share premium account
exclude amounts in relation to those shares.
Where a financial instrument that contains both equity and financial liability
components exists these components are separated and accounted for individually
under the above policy. The finance cost on the financial liability component
is correspondingly higher over the life of the instrument.
Finance payments associated with financial liabilities are dealt with as part of
finance expenses. Finance payments associated with financial instruments that
are classified in equity are dividends and are recorded directly in equity.
The Group does not hold or issue derivative financial instruments for trading
purposes.
Responsibility statement.
The directors confirm to the best of their knowledge;
* the condensed set of financial statements give a true and fair view of the
assets, liabilities, financial position and profit of the undertakings
included in the consolidation and have been prepared in accordance with
International Accounting Standard 34.
* The interim management report includes a fair review of the important
events that have occurred during the first six months of the financial year
and their impact on the condensed financial statements and a description of
the principal risks and uncertainties for the remaining six months of the
financial year.
* The interim management report includes any related party transactions that
have taken place in the first six months of the current financial period
that have materially affected the financial performance of the group and
any changes in the related party transactions described in the last annual
report that had a material effect on the financial performance of the group
in that period.
For and on behalf of the board of directors
Gavin Johnson
Chairman
Vista Group plc
Unit H1
Prenton Way
North Cheshire Trading Estate
Wirral
Merseyside
CH43 3DU
This information is provided by RNS
The company news service from the London Stock Exchange
END
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