Press Information

31 March 2005

Statement on the transition to International Accounting Standards

Introduction

Elementis plc will be reporting its financial results in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) with effect from 1 January 2005. This statement presents the results for the six months ended 30 June 2004 and the year ended 31 December 2004 restated to an IFRS basis.

2004 Full Year Highlights

• Sales unchanged at 389.2 million
• Underlying operating profit of 11.5 million¹ (UK Gaap: 11.8 million)
• Profit before tax of 3.3 million (UK Gaap: loss of 7.8 million)
• Underlying earnings per share 1.3p (UK Gaap: 1.4p)
• Group cash flow and net year end borrowings unchanged
• Net assets increased by 11.4 million and net year end gearing 29 per cent² (UK Gaap: 30 per cent)
  
  ¹ Exceptional items are not defined under IFRS. Underlying profits exclude those items classified as exceptional under UK Gaap, together with any goodwill amortisation charged under UK Gaap.
  ² The ratio of net borrowings to shareholders’ funds plus net borrowings.

Brian Taylorson, Finance Director of Elementis plc, said:
"The main impact of the transition to IFRS is that goodwill arising on acquisition will no longer be amortised over 20 years. Profit before taxation in 2004 is increased by 11.1 million mainly due to this change. Underlying earnings per share which excluded goodwill amortisation and items classified as exceptional under UK Gaap is 1.3 pence per share under IFRS compared to 1.4 pence per share under UK Gaap"

Download full statement in Adobe Acrobat format [158 Kb]

On 31 March 2005 at 14.30 BST, Elementis will be holding a conference call for analysts and investors to discuss the implications of the transition to IFRS on the reported results. The conference call will be hosted by Brian Taylorson, Finance Director, and Stuart Kilpatrick, Group Financial Controller, and UK and international callers can participate by calling +44 (0)1452 561263. Should you be unable to attend this conference call, a replay facility will be available for 7 days on 0845 245 5205 from the UK or on +44 (0)1452 550 000 internationally, access code 491 0800#.

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