Segmental Reporting Change and IAS 19 Restatement
04 July 2013
Segmental Reporting Change
As previously announced, with effect from 1st April 2013 the group has reorganised its management structure. To reflect this new structure and to improve transparency to stakeholders, for the year ending 31st March 2014 the group will report the results of five divisions: Emission Control Technologies; Process Technologies; Precious Metal Products; Fine Chemicals; and New Businesses. An unaudited segmental schedule showing the effect of this reorganisation on historic financial results is appended to this press release.
There is no change to the operating profit numbers at the group level as a result of this change.
The results of Emission Control Technologies Division for the year ended 31st March 2012 were distorted by the impact of higher rare earth prices. In the first half of that year the group bore the impact of those higher costs but in the second half of the year the results benefited from action taken to reduce the impact of those higher costs. This included a combination of thrifting, substitution for cheaper raw materials and negotiating price surcharges with its customers.
In the second half of the year ended 31st March 2012 the underlying operating profit of Process Technologies Division was impacted by restructuring costs in its UK AMOG business.
As previously reported, the results of Precious Metal Products Division for the year ended 31st March 2013 were adversely impacted by lower precious metal prices and volumes, and the results in the first six months of that year were further impacted by operational issues at our Salt Lake City gold and silver refinery.
The costs associated with our new business development group were previously included within corporate. These costs have now been allocated to the New Businesses Division and corporate costs have reduced accordingly.
AS 19 Restatement
With effect from 1st April 2013, the group is required to take account of the revised accounting standard, IAS 19 – 'Employee Benefits'. This change impacts the group by amending disclosure requirements and replacing the expected return on plan assets and interest cost on plan obligations with net interest on the net defined benefit liability based upon the discount rate. Schedules on the new structure showing the effect of this restatement on the group's results for the year ended 31st March 2013 and the half year ended 30th September 2012 are also appended to this press release and have been reviewed by our auditor.
Ian Godwin Director, IR and Corporate Communications
020 7269 8410
Robert MacLeod, Group Finance Director
020 7269 8484
Howard Lee, The HeadLand Consultancy
020 7367 5225