Financial News

FINANCIAL RESULTS UNDER IFRS

10 JUNE 2005

Burberry Group plc reports on its unaudited financial results for the year to 31 March 2005 and six months to 30 September 2004 under International Financial Reporting Standards (IFRS).

For the year to 31 March 2005, primary differences under IFRS relative to previously reported financial results under UK GAAP are highlighted below:

  • Turnover and gross profit unchanged.

  • EBITA (1) under IFRS of £161.3 million compared to £165.5 million under UK GAAP. The £4.2 million difference primarily relates to an increased charge under IFRS for share based remuneration payments.

  • Goodwill amortisation and exceptional gain reported under UK GAAP are not applicable under IFRS.

  • Net interest income of £5.6 million under IFRS compared to £4.9 million under UK GAAP. The £0.7 million difference primarily reflects foreign currency gains on intercompany loans, which under IFRS are recognised in the income statement and not taken directly to reserves.

  • Effective tax rate of 32.1% compared to 32.0% reported under UK GAAP (calculated on profit before taxation, goodwill amortisation and exceptional gain).

  • Profit after tax of £113.4 million under IFRS compared to £109.9 million reported under UK GAAP.

  • Diluted EPS of 22.4p under IFRS compared to diluted EPS (before goodwill amortisation and exceptional gain) of 23.0p reported under UK GAAP.

  • Shareholders' funds at 31 March 2005 of £478.4 million under IFRS compared to £454.6 million reported under UK GAAP, driven by balance sheet reclassifications and remeasurements under IFRS, including the reversal of £21.7 million provided for the proposed final dividend payment under UK GAAP.

International Financial Reporting Standards are subject to ongoing amendments by the International Accounting Standards board and some standards have yet to be endorsed by the European Commission. Further development of the interpretation of these standards could result in changes in the basis in accounting or presentation of certain items and accordingly this financial information is subject to possible change.

Group income statement - unaudited

Year to
31 March 2005

Six months to
September 2004

UK GAAP 2005

IFRS adjustments

IFRS
2005

UK GAAP (3) 2004

IFRS adjustments

IFRS
2004

£m

£m

£m

£m

£m

£m

Turnover

Wholesale

371.9

-

371.9

111.0

-

111.0

Retail

265.2

-

265.2

197.2

-

197.2

Licence

78.4

-

78.4

39.3

-

39.3

Total turnover

715.5

-

715.5

347.5

-

347.5

Cost of sales

(291.3)

-

(291.3)

(144.0)

-

(144.0)

Gross profit

424.2

-

424.2

203.5

-

203.5

Net operating expenses

(258.7)

(4.2)

(262.9)

(124.7)

(1.2)

(125.9)

EBITA (1)

165.5

(4.2)

161.3

78.8

(1.2)

77.6

Goodwill amortisation

(6.8)

6.8

-

(3.3)

3.3

-

Exceptional gain (2)

0.8

(0.8)

-

0.8

(0.8)

-

Profit before interest and taxation

159.5

1.8

161.3

76.3

1.3

77.6

Net interest income

4.9

0.7

5.6

2.0

0.6

2.6

Profit before taxation

164.4

2.5

166.9

78.3

1.9

80.2

Tax on profit

(54.5)

1.0

(53.5)

(26.0)

0.9

(25.1)

Attributable profit for the year

109.9

3.5

113.4

52.3

2.8

55.1

Diluted EPS before goodwill amortisation and exceptional gain

23.0p

n/a

10.8p

n/a

Diluted EPS

21.8p

22.4p

10.3p

10.9p

Basic EPS

22.2p

22.9p

10.5p

11.1p


Notes:
(1) EBITA represents operating profit before interest, taxation, exceptional gain and goodwill amortisation. Following the adoption of IFRS, the exceptional gain and goodwill amortisation are no longer applicable.
(2) The £0.8m pre-tax exceptional gain in the year to 31 March 2005 under UK GAAP relates to lapsed awards under the IPO Senior Executive Restricted Share Plan.
(3) Amounts previously reported have been restated to reflect the impact of adopting FRS 17 'Retirement Benefits'.

Management will discuss these results during a conference call at 8:00am today. The conference call can be accessed by dialling +44 (0) 20 7081 7194, password 299766. This document, together with the appendices, will be available on the Group's website at www.burberryplc.com.

Enquiries:

Burberry020 7968 0577
Stacey CartwrightCFO
Matt McEvoyStrategy and IR
John ScaramuzzaStrategy and IR


Brunswick020 7404 5959
Susan Gilchrist
Laura Cummings
Robert Gardener

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements.

This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc or GUS plc shares. Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.

View the full Financial results under IFRS Announcement in PDF format.


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