We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Jarlway | LSE:JWY | London | Ordinary Share | GB00B09JC675 | ORD 0.25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.375 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:2422F Jarlway Holdings plc 27 June 2006 JARLWAY HOLDINGS PLC RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005 Highlights for the year ended 31 December 2005 * Turnover #4,853,000 (2004 - #564,000) and consolidated net profit after taxation #294,000 (2004 - #101,000 excluding negative goodwill write-back of #2,845,000) (comparative figures are for period from 26 Nov 2004 to 31 Dec 2004 only); * Company remains profitable and cash-positive but trading was below directors' expectations; * Restrictive Chinese Government macro-economic policies impacted sales and profits; * Limited access to fresh capital has tempered expansion plans; * #360,000 provision against trade receivables. Post-period highlights * Solid start to 2006; * New generation of concrete pumps developed; * Contracts won from China Railway Corporation and first export order to Dubai. Chairman Wu Zhi Jia commented, "We are now confident that three key moves, namely customer differentiation, product innovation and tailoring and the strengthening of the internal finance function, including credit control, will help us achieve our objective of consolidating Jarlway's position as a recognised and trusted brand name within the industry. Despite the difficulties encountered during 2005, I look forward to reporting a significantly improved performance in 2006." ENDS Full Chairman's Statement and summary Financial Statements follow. Copies of the Company's audited financial statements are available from the Company's Nominated Adviser, Nabarro Wells & Co. Limited at Saddlers House, Gutter Lane, Cheapside, London EC2V 6HS. For further information, please contact: Jarlway Holdings PLC Nabarro Wells & Co. Limited First City PR Ng Chi Chor Robert Lo Allan Piper Director Director Director +86 20 8221 5862 +44 (0) 20 7710 7400 +44 (0)20 7436 7486 +86 13316269616 +86 (0)13808007147 +852 6419 2915 Note to Editors: Jarlway Machinery Inc. ("Jarlway") is one of the largest concrete pump manufacturers in the People's Republic of China. Jarlway is engaged in the development and sale of large-scale construction machinery including trailer concrete pumps, truck mounted concrete line pumps, concrete boom pumps and concrete mixing stations. Jarlway utilises reliable, patented technology supported by a network of 27 regional sales and service stations throughout most of China. Jarlway's products are assembled under processes that have been certificated to standards similar to ISO9001. More information about Jarlway Holdings plc and its products can be found on line at www.jarlway.com Chairman's Statement I am pleased to report on the results of Jarlway Holdings Plc (the "Company" or "Jarlway") for the year ended 31 December 2005. While the trading results were not to the Board's satisfaction, Jarlway remains profitable and cash-positive. I believe that progress has been made towards ensuring a better financial performance in the future and I am pleased to be able to report a solid start to 2006. BUSINESS REVIEW 2005 was a challenging year for the Company. The senior management time involved in taking the Company onto the Alternative Investment Market ("AIM") of the London Stock Exchange in July had a detrimental effect on the business, and this was compounded by the late-stage change of broker prior to the flotation and ultimately by the disappointing amount raised on flotation. In the meantime, China's restrictive macro-economic policies have impacted our sales and our profits. China introduced restrictive macro-economic policies aimed at slowing the growth in the economy to a more sustainable level. This has resulted in a tightening of the credit extended by the banks to our customers. In accordance with government directives, the local banks have cut back on the mortgage finance available to purchasers of construction machinery by raising more stringent requirements for credit approvals. This has lead to a decline in the businesses of all participants in the construction machinery manufacturing industry. The reduced amount we raised on flotation meant we had to change our plans to move all operations onto one new, larger site. We also had to delay our plans to expand the production of line pumps and boom pumps. Our inability to build these machines, with their enhanced profitability, had a significant adverse impact on our performance in 2005. In response to these difficulties, we have taken a number of measures to minimise the negative effect on Jarlway. We have developed a new generation of trailer pumps which are both more powerful and efficient, and which have been well received in the market. We expect to sell these machines for premium prices and achieve improved gross margins and better payment terms on these sales. These machines should allow us to penetrate the higher end of the market. We have also made applications for various patents for our technology innovations, the approval of which is expected in the second half of 2006. We have implemented new recruitment and training plans for our marketing staff as part of our strategy to target new customers among large enterprises and state-owned enterprises. I would like to assure you that the directors and staff are working hard to restore the confidence of our investors in Jarlway. We realise that 2005 was not a satisfactory year and we are determined to improve the financial performance of the Company in 2006. FINANCIAL RESULTS The consolidated net profit after taxation of the Company and its subsidiaries in respect of the period ended 31 December 2005 was #294,000 (2004 - #2,946,000, or #101,000 before a negative goodwill write-back) and the turnover of the Company was #4,853,000 (2004 - #564,000). The comparative period is only for the five weeks from 26 November 2004, which is the date the main operating company in China joined the Group, and the profit is mainly due to the release of negative goodwill to income. The results for the year are impacted by additional provisions of #360,000 against receivables. Like many Chinese companies, a high proportion of the Group's receivables are significantly overdue although the management expects to recover most of these receivables. At the year-end, an exercise was undertaken to examine each receivable and make appropriate provision. Cash of #239,000 was raised net of expenses when the Company was admitted to AIM in July 2005. PROSPECTS Looking forward, the management is very positive about Jarlway's prospects; current trading for 2006 is encouraging. We have a new generation of concrete pumps and a clearly identified target customer group. Sales in 2006 have started well and the Company has won contracts from various parts of China Railway Corporation and its first export order to Dubai. As the Company indicated in its last trading statement, we have secured an important role as a supplier of equipment for the construction of China's planned high-speed rail network, and are also positioning ourselves as suppliers to wider infrastructure projects and major property developments. We have implemented new recruitment and training plans for our marketing staff, which involve a new "agency development" division whose objective is to secure reliable agents in cities and regions where Jarlway currently has no representation. We are also exploring opportunities for expansion into overseas markets, where we believe our machines will offer significant cost advantages over those sold by our competitors, and we have been recruiting sales and marketing staff to help with this. We believe our development of innovative equipment tailored to customer needs means we are well placed to take advantage of current market opportunities. We have developed a placing boom which combines the attributes of a tower and a boom so that it can rise with the height of the building and distribute concrete within a finite area, such as each floor of a skyscraper. In addition we have developed a new generation of trailer pumps. As we indicated in our last trading statement, we are already seeing some signs of success with our moves to tighten financial controls, with greater emphasis on customer selection, tighter credit terms and stricter rules on the repossession of equipment from overdue creditors. In summary, we believe our competitive advantages are: * superior product quality * strong technical development capability * accurate market positioning * relatively low operating costs * reasonable pricing * strong customer loyalty Overall, despite the difficulties encountered during 2005, we are now confident that these three key moves - tighter financial controls, customer differentiation, and product innovation and tailoring - will help us achieve our objective of establishing Jarlway as a recognised and trusted brand name within the industry. APPRECIATION I wish to thank my fellow directors and all our staff who have worked so hard for the Company during this difficult period. I would also like to thank our shareholders for their continuing support and understanding, and I look forward to a significantly improved performance in 2006. I would like to pay a special tribute to KM Wong, who is not standing for re- election. KM worked extremely hard to bring the Company to AIM and we all wish him well in building up his corporate finance practice. Wu Zhi Jia Chairman Jarlway Holdings Plc Consolidated Income Statement Year ended 31 December 2005 2005 2004 (Proforma) #'000 #'000 Turnover 4,853 564 Cost of sales (3,091) (326) Gross profit 1,762 238 Other revenue 7 - Selling and distribution costs (636) (84) Administrative expenses (790) (45) Negative goodwill release to income statement - 2,845 Profit before taxation 343 2,954 Taxation (49) (8) Profit for the year 294 2,946 Attributable to: Shareholders of the Company 294 2,946 Earnings per share Basic and diluted 1.33p 15p Jarlway Holdings Plc Consolidated Balance Sheet At 31 December 2005 2005 2004 (Proforma) #'000 #'000 Non-current assets Property, plant and equipment 261 91 Trade receivables 165 651 Restricted bank balance 257 772 Deferred tax assets 81 36 764 1,550 Current assets Assets held for sale 332 - Inventories 812 321 Trade and other receivables 5,484 5,157 Financial assets at fair value through profit or loss 5 5 Cash and cash equivalents 298 121 Restricted bank balance 104 178 7,035 5,782 Equity and liabilities Capital and reserves Share capital 61 - Other reserves 3,762 2,845 Total equity 3,823 2,845 Non-current liabilities Non-current portion of bank borrowings 89 545 Current liabilities Trade and other payables 3,133 2,614 Current portion of bank borrowings 642 1,217 Income tax payable 112 111 3,887 3,942 Total liabilities 3,976 4,487 Total equity and liabilities 7,799 7,332 WU Zhi Jia Chairman NG Chi Chor Director 26 June 2006 Jarlway Holdings Plc Consolidated Statement of Changes in Equity Year ended 31 December 2005 Share Share Option Share Exchange Merger Retained Total Capital Reserve Premium Reserve Reserve Earnings #'000 #'000 #'000 #'000 #'000 #'000 #'000 Balance at - - - (101) - 2,946 2,845 31 Dec 2004 Changes in equity for 2005 Exchange differences on - - - 438 - - 438 translating foreign operations Merger reserve arising - - - - (49) - (49) on consolidation Employee share option - 6 - - - - 6 benefit Profit for the year - - - - - 294 294 Ordinary shares issued 61 - 228 - - - 289 _______ _______ _______ _______ _______ _______ _______ Balance at 31 December 2005 carried forward 61 6 228 337 (49) 3,240 3,823 ______ ______ ______ ______ ______ ______ ______ Jarlway Holdings Plc Consolidated Cash Flow Statement Year ended 31 December 2005 2005 2004 (Proforma) #'000 #'000 OPERATING ACTIVITIES Profit before taxation 343 2,954 Adjustment for: Interest income (7) - Depreciation 29 1 Provision for doubtful debts 360 11 Employee share-based compensation payment 6 - Negative goodwill - (2,845) 731 121 Operating profit before changes in working capital Increase in assets held for sale (332) - (Increase)/Decrease in inventories (445) 234 Decrease/(Increase) in trade and other receivables 685 (1,563) Increase in financial assets at fair value through - (5) profit or loss Increase in trade and other payables 132 344 Cash generated from/(used in) operations 771 (869) Interest received 7 - Taxation (107) - Net cash inflow from/(used in) operating activities 671 (869) Investing activities Acquisition of subsidiaries - (97) Change in Restricted bank balances 726 (130) Purchase of property, plant and equipment (187) - Net cash from/(used in) investing activities 539 (227) Financing activities (Repayment)/proceeds of bank borrowings (1,285) 1,217 Issue of share capital 239 - Net cash (used in)/from financing activities (1,046) 1,217 Net increase in cash and cash equivalents 164 121 Cash and cash equivalents at 1 January 121 - Effect of foreign exchange rate changes 13 - Cash and cash equivalents at 31 December 298 121 Jarlway Holdings Plc Notes to the financial information Year ended 31 December 2005 1. The financial information set out in this announcement does not constitute the Company's statutory accounts for the year ended 31 December 2005 and the period ended 31 December 2004. The auditors have reported on the 2005 accounts; their report was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The financial information set out in this announcement was approved by the Board of Directors on 20 June 2006. 2. Principal accounting policies General information The Company is a public listed company incorporated in England and its shares are listed on the Alternative Investment Market ("AIM") of the London Stock Exchange. The principal place of business of the Company is in the People's Republic of China. The principal activities of the Company and its subsidiaries (the Group) are described in note 12. Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted for use in the European Union. Transition to International Financial Reporting Standards The Company's last financial statements to 31 December 2004 were reported under UK Generally Accepted Accounting Practice. These financial statements are presented by the Company under International Financial Reporting Standards. The date of transition is therefore 11 December 2004, the date of the company's incorporation. As the company had not traded in the period to 31 December 2004 there were no differences between the results reported under UK GAAP and International Financial Reporting Standards as of that date. There have been no changes to the previously reported equity of the Company at the beginning of the reporting period as a result of the adoption of International Financial Reporting Standards. Other than the reclassification of taxation items, there have been no significant changes to the cash flow statement from that reported under UK GAAP. Basis of preparation The measurement basis used in the preparation of the financial statements is historical cost, except for financial assets at fair value through profit or loss, which have been measured at fair value. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Basis of consolidation The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 31 December each year. The results of subsidiaries acquired or disposed of during the year are dealt with in the consolidated income statement from or up to their effective dates of acquisition or disposal respectively. All inter-company transactions and balances within the Group are eliminated on consolidation. A share for share exchange agreement between Jarlway Holdings Plc and Jarlway International Limited took place on 19 April 2005. As no acquirer and acquiree were identified, the results of Jarlway Holdings Plc and Jarlway International Limited have been consolidated on a merger basis, whereby the results and cashflows of the relevant entities are combined from the beginning of the year in which the merger occurred, and their assets and liabilities combined at the amounts at which they were previously recorded. On 26 November 2004 Jarlway International Limited acquired 100% of the share capital of Jarlway Machinery Inc. The results have been consolidated from this date. Comparative information Jarlway Holdings Plc was incorporated on 11 December 2004 and did not trade in the period to 31 December 2004. In order to present comparative financial information that is more meaningful to the users of the financial statements, proforma financial information is disclosed which reports the results of Jarlway International Limited and its subsidiary for the period from 26 November 2004 (the date which Jarlway International Limited acquired Jarlway Machinery Inc.) to 31 December 2004. Subsidiaries Subsidiaries are entities controlled by the Company. Control exists when the Company 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 presently are exercisable or exercisable on conversion are taken into account. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. The cost of an item of property, plant and equipment comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Improvements are capitalised only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Expenditures incurred in restoring assets to their normal working condition and other repairs and maintenance costs are charged to the income statement. Depreciation is charged to the income statement on a straight-line basis over the estimated useful life of each component of an item of property, plant and equipment. The estimated useful lives are as follows: Machinery 5-10 years Motor vehicles 10 years Furniture, fittings and equipment 5-10 years Gains or losses arising from the retirement or disposal of property, plant and equipment are determined as the difference between the net sale proceeds and the carrying amount of the asset and are recognised as income or expense in the income statement. Financial instruments Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instruments and on the trade date basis. Financial asset and financial liabilities are measured as follows: Financial assets at fair value through profit or loss Financial instruments classified as financial assets at fair value through profit or loss include financial assets held for trading, and those designated at fair value through profit or loss at inception. These items are measured at fair value, with gains or losses recognised in the income statement. At the balance sheet date, the financial assets are measured at fair value by reference to the price quotation for equivalent instruments in an active market provided by financial institutions. Any changes in fair value are recognised in the income statements. Trade and other receivables Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost less provision for impairment. Loans and receivables without fixed or determinable repayment terms are stated at cost less any accumulated impairment loss. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all the amounts due according to the original terms of receivables. The amount of the provision is the difference between the assets' carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. The amount of provision is recognised in the income statements. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Trade and other payables Trade and other payables are initially recognised at fair value and thereafter stated at amortised cost. The derecognition of a financial asset takes place when the Group's contractual rights to future cash flows from the financial asset expire or the Group transfers the contractual rights to future cash flows to a third party. The Group derecognises a financial liability when, and only when, the liability is extinguished. Cash equivalents For the purpose of the consolidated cash flow statement, cash equivalents represent short-term, highly liquid investments which are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value, net of bank overdrafts. Revenue recognition Revenue is recognised when it is probable that the economic benefits will flow to the Group and when the revenue and costs, if applicable, can be measured reliably and on the following bases. Sales of goods are recognised on the transfer of the risks and rewards of ownership, which generally coincides with the time when goods are delivered to customers and title has passed. Interest income is recognised by applying the effective interest method to the net carrying amount of the financial assets. Foreign currencies Net assets of overseas subsidiaries are translated into sterling at the rate of exchange ruling at the year end. Differences arising from the retranslation of net assets at the beginning of the year are dealt with through reserves. The results of overseas subsidiaries are translated into sterling using the average rates of exchange during the year; the difference between the results translated at average rates and closing rates is taken to reserves. Other assets and liabilities denominated in foreign currency are translated into sterling at the rate of exchange ruling at the year end except where they are covered by foreign exchange contracts in which case the rate appropriate to the forward contract is used. All other translation differences are taken to income statement, with the exception of differences on foreign currency borrowings, which are taken to reserves to the extent that they are used to finance foreign equity investments. Negative goodwill The excess of acquirer's interest in the net fair value of acquiree's identifiable assets, liabilities and contingent liabilities over cost ("negative goodwill") arising on an acquisition is recognised directly through the income statement. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Impairment of assets At each balance sheet date, the Group reviews internal and external sources of information to determine whether the carrying amounts of its property, plant and equipment, investment in subsidiaries, have suffered an impairment loss or an impairment loss previously recognised no longer exists or may be reduced. If any such indication exists, any impairment loss is determined and recognised as follows: The recoverable amount of the asset is estimated, based on the higher of its fair value less costs to sell and value in use. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the smallest group of assets that generates cash flows independently (i.e. cash-generating unit). If the recoverable amount of an asset or a cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. Impairment losses are recognised as an expense immediately. A reversal of impairment loss is limited to the carrying amount of the asset or cash-generating unit that would have been determined had no impairment loss been recognised in prior years. Reversal of impairment losses in respect of other assets is recognised as income immediately. Inventories Inventories are stated at the lower of cost and net realisable value. Cost, which comprises all costs of purchase and, where applicable, other costs that have been incurred in bringing the inventories to their present location and condition, is calculated using the weighted average method. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. Provisions A provision is recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Expenditures for which a provision has been recognised are charged against the related provision in the year in which the expenditures are incurred. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount provided is the present value of the expenditures expected to be required to settle the obligation. Where the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. Borrowing costs Borrowing costs are charged as expenses in the income statement in the period in which they are incurred, except to the extent that they are capitalised as being directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. The capitalisation of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalisation of borrowing costs is suspended or ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or complete. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Operating leases Rentals payable under operating leases are charged to the income statement on a straight-line basis over the term of the relevant lease. Employee benefits Salaries, annual bonuses, paid annual leave, leave passage, contributions to defined contribution plans and the costs of non-monetary benefits are accrued in the year in which the associated services are rendered by employees of the Group. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. Contributions to defined contribution retirement plans are recognised as an expense in the income statement in the period to which they relate. Termination benefits are recognised when, and only when, the Group demonstrably commits itself to terminate employment or to provide benefits as a result of voluntary redundancy by having a detailed formal plan which is without realistic possibility of withdrawal. Share-based payment transactions The Company operates a share option scheme for granting share options, for the purpose of providing incentives and rewards to eligible employees of the Group. The cost of share options granted to employees is measured by reference to the fair value at the date at which they are granted. It is recognised, together with a corresponding increase in equity, over the vesting period. The cumulative expense recognised at each reporting date until the end of the vesting period reflects the extent to which the vesting period has expired and the number of shares that in the opinion of the directors of the Group at that date will ultimately vest. Taxation The charge for taxation is based on the results for the year, adjusted for items which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is provided using the liability method, on all temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The deferred tax liabilities or assets are measured at the tax rates that are expected to apply to the period when the asset is recovered or liability is settled, based on the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences, tax losses and credits can be utilised. Related parties For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other entities and include entities which are under the significant influence of related parties of the Group where those parties are individuals, and post-employment benefit plans which are for the benefit of employees of the Group or of any entity that is a related party of the Group. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 2. Principal accounting policies (continued) Future changes in IFRS At the date of authorisation of these financial statements, the IASB has issued certain new/revised IFRSs that are not yet effective. The directors anticipate that the adoption of these new IFRSs in the future periods will have no material impact on the result of the Group. Critical accounting estimates and judgements Estimates and judgments are currently evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Apart from information disclosed elsewhere in these financial statements, the following summarise: (1) estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year and (2) significant judgments made in the process of applying the Group's accounting policies. (i) Income taxes The Group is subject to income taxes in the People's Republic of China (the "PRC"). Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. (ii) Provision for warranty As explained in note 23, the Group makes provision under the warranties it gives on sale of its large scale construction machinery taking into account the Group's recent claims experience. As the Group is continually upgrading its product designs, it is possible that the recent claims experience is not indicative of future claims that it will receive in respect of past sales. Any increase and decrease in the provision would affect income statements in future years. (iii) Provision for doubtful debts of trade receivables The Group makes provision for doubtful debt against trade receivables based on an assessment of the collectability of trade receivables. Provisions for doubtful debts are applied to trade receivables where events or changes in circumstances indicate that the balances may not be collectible. The identification of doubtful debts requires the use of judgement and estimates. Where the expectation is different from the original estimates, such difference will impact carrying value of receivables and doubtful debt expenses in the period in which such estimate has been changed. 3. The Directors do not recommend the payment of a dividend. 4. The Group financial information consolidates the financial statements of the Company and all operating subsidiaries. 5. The profit and loss accounts of subsidiaries reporting in China Yuan Renminbi have been converted at the average exchange rates prevailing in the year ended 31 December 2005. Jarlway Holdings Plc Notes to the financial information (continued) Year ended 31 December 2005 6. Basic earnings per share and diluted earnings per share The calculation of basic earnings per share is based on profit after taxation of #294,000 (2004: #2,946,000) and on 22,007,160 shares (2004: 20,000,000), being the weighted average number of shares in issue during the year. These values have been calculated to reflect the 20,000,000 shares issued and subdivided in 2005 being in existence from 11 December 2004, the Company's incorporation date. Diluted earnings per share for the year ended 31 December 2005 are equal to the basic earnings per shares as the exercise price of the share options granted by the Company was higher than the average market price for shares during the year. In year ended 31 December 2004 there were no dilutive potential ordinary shares in issue. 7. Reconciliation of movement in shareholders' funds 2005 2004 #000 #000 Profit for the financial year 294 2,946 Currency translation differences on foreign operations 438 (101) Merger reserve arising on consolidation (49) - Employee share option benefit 6 - Ordinary shares issued 289 - Net addition to shareholders' funds 978 2,845 Opening shareholders' funds 2,845 - Closing shareholders' funds 3,823 2,845 This information is provided by RNS The company news service from the London Stock Exchange END FR SEDFLWSMSELM
1 Year Jarlway Chart |
1 Month Jarlway Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions