KENFORD GROUP<00464> - Results Announcement
Kenford Group Holdings Limited announced on 14/07/2006:
(stock code: 00464 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/04/2005 from 01/04/2004
to 31/03/2006 to 31/03/2005
Note ('000 ) ('000 )
Turnover : 403,551 464,910
Profit/(Loss) from Operations : 10,476 66,672
Finance cost : (5,728) (3,912)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 4,147 57,403
% Change over Last Period : -92.78 %
EPS/(LPS)-Basic (in dollars) : 0.01094 0.19130
-Diluted (in dollars) : 0.01090 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 4,147 57,403
Final Dividend : 0.3 cent Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 05/09/2006 to 08/09/2006 bdi.
Payable Date : 22/09/2006
B/C Dates for Annual
General Meeting : 05/09/2006 to 08/09/2006 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Basis of preparation
In the current year, the Group has applied, for the first time, a number
of new Hong Kong Financial Reporting Standards ("HKFRSs") issued by the
Hong Kong Institute of Certified Public Accountants ("HKICPA") that are
effective for accounting periods beginning on or after 1 January 2005.
Pursuant to the adoption of new HKFRSs, certain of the Group's accounting
policies were changed. The application of the new HKFRSs has also resulted
in a change in the presentation of the consolidated income statement,
consolidated balance sheet, consolidated cash flow statement and the
consolidated statement of changes in equity. The changes in presentation
have been applied retrospectively.
The applicable HKFRSs are set out below and the 2005 financial statements
have been restated in accordance with the relevant requirements, where
applicable.
HKAS 1 Presentation of Financial Statements
HKAS 2 Inventories
HKAS 7 Cash Flow Statements
HKAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowings Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separated Financial Statements
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKFRS 2 Share-based Payment
HKAS-INT 15 Operating Leases - Incentives
The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 18, 19, 21,
23, 24, 27, 33, 37 and HKAS-INT 15 did not result in substantial changes
to the Group's accounting policies. In summary:
HKASs 8, 16 and 21 affect certain disclosures of the financial statements.
HKASs 1, 2, 7, 10, 12, 14, 18, 19, 23, 27, 33, 37 and HKAS INT-15 had no
material effect on Group's accounting policies.
HKAS 24 affects the identification of related parties and the disclosure
of related party transactions.
The adoption of HKAS 17 has resulted in a change in accounting policy
relating to leasehold land. In previous years, owner-occupied leasehold
land and buildings were included in property, plant and equipment and
measured using the cost model. Under HKAS 17, the land and buildings
elements of a lease of land and buildings are considered separately for
the purposes of lease classification. To the extent that the allocation of
the lease payments between the land and buildings elements can be made
reliably, the leasehold interests in land are reclassified to "Interests
in leasehold land held for own use under operating leases", which are
carried at cost and amortised over the lease term on a straight-line
basis. The change in accounting policy is adopted retrospectively and
reflected by way of prior period adjustment and restatement of comparative
figures. Alternatively, where the allocation between the land and
buildings elements cannot be made reliably, the leasehold interests in
land continue to be accounted for as property, plant and equipment.
HKAS 32 requires retrospective application. HKAS 39, generally does not
permit the recognition, derecognition or measurement of financial assets
and liabilities on a retrospective basis.
The Group has applied HKFRS 2 "Share-based Payment" which requires an
expense to be recognized where the Group buys goods or obtains services in
exchange for shares or rights over shares ("equity-settled transactions"),
or in exchange for other assets equivalent in value to a given number of
shares or rights over shares ("cash-settled transactions"). The principal
impact of HKFRS 2 on the Group is in relation to the expensing of the fair
value of share options of the Group determined at the date of grant of the
share options over the vesting period.
Summary of the effect of the changes in accounting policies
(i) The adoption of HKAS 17 resulted in:
2006 2005 2004
31 March 31 March 1 April
HK$'000 HK$'000 HK$'000
Decrease in property, plant and equipment(3,247) (3,288) (1,790)
Increase in leasehold land held for own use under operating leases
3,247 3,288 1,790
_______________________________
Increase in net assets - - -
_______________________________
_______________________________
2006 2005
For the year ended 31 March HK$'000 HK$'000
Decrease in cost of sales-depreciation expense (71) (44)
Increase in cost of sales-amortisation expense 71 44
_______________________
Decrease in profit for the year - -
_______________________
_______________________
(ii) The adoption of HKFRS 2 resulted in:
2006 2005
HK$'000 HK$'000
As at 31 March
Increase in share- based compensation reserve 1,000 -
_______________________
_______________________
For the year ended 31 March
Increase in administrative expenses - staff costs
1,000 -
_______________________
_______________________
Decrease in basic earnings per share (cents) 0.2639 -
_______________________
_______________________
Decrease in diluted earning per share (cents) 0.2628 -
_______________________
_______________________
2. Earnings per share
The calculation of basic and diluted earnings per share is based on the
Group's net profit attributable to shareholders of approximately
HK$4,147,000(2005: HK$57,403,000).
The number of shares used to calculate the basic earnings per share is
based on the weighted average number of 378,904,000 (2005: 300,000,000)
ordinary shares in issue during the year. The diluted earnings per share
is based on the weighted average number of ordinary shares in issue during
the year plus the weighted average number of 1,679,000 (2005: nil)
ordinary shares deemed to be issued if all the outstanding options had
been exercised.
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