Punch Taverns plc (‘the Group’) today releases its consolidated financial results for the 52 weeks ended 20 August 2005 as prepared under International Financial Reporting Standards (‘IFRS’).  Results were previously issued under UK GAAP on 10 November 2005.
 
Highlights

• Profit before tax and exceptional items of £207m, £6m higher than under UK GAAP
• Effective tax rate before exceptional items of 19%, 3% lower than under UK GAAP
• Adjusted EPS before exceptional items of 66.4p, 4.1p higher than under UK GAAP
• Net assets at 20 August 2005 of £1,123m, £70m higher than under UK GAAP

The above changes from the adoption of IFRS mainly result from:
 
Goodwill – goodwill is not amortised but reviewed annually for impairment

Tax charge - the benefit of indexation allowance on additional deferred tax liabilities
 
Net assets - a full revaluation of the estate on transition to IFRS and the recognition of additional deferred tax liabilities on properties which were revalued subsequent to their acquisition by the Group
 
Earnings reported under UK GAAP for the year to 20 August 2005 can be reconciled to those which would have been presented under IFRS as follows:

• Details of the IFRS first-time adoption choices which have been made
• Description of IFRS adjustments
• IFRS accounting policies
• Income Statement, Balance Sheet and Cash Flow Statement in IFRS format for 2004/05
• Supporting reconciliations identifying the adjustments between UK GAAP and IFRS

As previously reported, IFRS has no impact on the cash flows of the business or on the Group’s ability to meet debt covenants.

The Group will be announcing its interim results for the 28 weeks to 4 March 2006 on 22 May 2006.

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