From 1 January 2005, Devro, in common with all publicly quoted companies, will be required to implement the new international accounting standards. As part of this process, we are required to restate 2004's financial results in terms of these new standards and we are taking this opportunity to communicate the effect on the 2004 results.
This restatement reduces pre-tax profits by £0.7 million and net assets by £17.3 million. These effects are due almost entirely to IAS 19, the new accounting standard relating to pensions accounting. While these numbers will not be audited until the end of 2005, the group's auditors have been consulted on, and involved in, their preparation.
The change to the new standards has had no operational effect on the company and, in particular, Devro plc dividend payments are unaffected.
Trading for 2005 has generally been sound with a solid sales performance being delivered by each of our principal operations - Devro, Coria and Cutisin. The stable underlying trading pattern of 2004 has been maintained with many of our markets recording improvements over prior year.
The prospects for the business, as reflected in the current order book and long term market outlook, continue to be positive. The Directors, therefore, continue to view the company's future with confidence.