EX-99.1 10 g68409ex99-1.txt FINANCIAL STATEMENTS OF ANSA LOGISTICS LIMITED 1 EXHIBIT 99.1 ANSA LOGISTICS LIMITED REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2000 REGISTERED NO: 3715126 2 ANSA LOGISTICS LIMITED
Pages Report of Independent Accountants 1 Profit and loss account 2 Balance sheet 3 Cash flow statement 4 - 5 Notes to the financial statements 6 - 20
3 ANSA LOGISTICS LIMITED 1 REPORT OF INDEPENDENT ACCOUNTANTS TO THE MEMBERS OF ANSA LOGISTICS LIMITED We have audited the accompanying balance sheet of Ansa Logistics Limited as of 31 December 2000 and 1999 and the related profit and loss account and statement of cash flows for the year ended 31 December 2000 and the 10 months ended 31 December 1999, all expressed in pounds sterling and prepared on the basis set forth in Note 1 to the financial statements. As described in Note 28, these financial statements are the responsibility of the company's directors. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits both in accordance with Auditing Standards issued by the Auditing Practices Board and generally accepted auditing standards in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the company at 31 December 2000 and 1999 and the results of its operations and its cash flows for the year ended 31 December 2000 and the 10 months ended 31 December 1999, all expressed in pounds sterling in conformity with accounting principles generally accepted in the United Kingdom. Accounting principles generally accepted in the United Kingdom differ in certain significant respects from those generally accepted in the United States of America. The effects of the differences in the determination of net income and shareholders' equity are shown in Note 27 to the financial statements. /s/ PriceWaterhouseCoopers --------------------------------------- PRICEWATERHOUSECOOPERS Chartered Accountants Bristol 13 April 2001 4 ANSA LOGISTICS LIMITED 2 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2000
Notes YEAR ENDED 10 months 31 DECEMBER ended 2000 31 December 1999 (POUND)'000 (pound)'000 TURNOVER - CONTINUING OPERATIONS 2 69,722 53,669 Cost of sales (49,604) (38,163) -------- -------- GROSS PROFIT - CONTINUING OPERATIONS 20,118 15,506 Administrative expenses (14,827) (11,945) -------- -------- OPERATING PROFIT - CONTINUING OPERATIONS 5,291 3,561 Interest payable and similar charges 5 (96) (107) Interest receivable and similar income 6 102 73 -------- -------- PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 7 5,297 3,527 Tax on profit on ordinary activities 8 (2,010) (1,442) -------- -------- RETAINED PROFIT FOR THE FINANCIAL PERIOD 18 3,287 2,085 ======== ========
The company has no recognised gains and losses other than the profit above and therefore no separate statement of total recognised gains and losses has been presented. There is no difference between the profit on ordinary activities before taxation and the profit for the financial period, and their historical cost equivalents. 5 ANSA LOGISTICS LIMITED 3 BALANCE SHEET AT 31 DECEMBER 2000
Notes 31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 TANGIBLE FIXED ASSETS 9 2,831 4,480 ------- ------- CURRENT ASSETS Stocks 11 229 397 Debtors 12 21,779 13,213 Cash at bank and in hand 602 55 ------- ------- 22,610 13,665 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 13 (19,348) (15,632) ------- ------- NET CURRENT ASSETS/(LIABILITIES) 3,262 (1,967) ------- ------- TOTAL ASSETS LESS CURRENT LIABILITIES 6,093 2,513 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 14 (600) -- PROVISIONS FOR LIABILITIES AND CHARGES 15 (121) (428) ------- ------- NET ASSETS 5,372 2,085 ======= ======= CAPITAL AND RESERVES Called up share capital ((pound)1) 17 -- -- Profit and loss account 18 5,372 2,085 ------- ------- EQUITY SHAREHOLDERS' FUNDS 19 5,372 2,085 ======= =======
The financial statements on pages 2 to 20 were approved by the board of directors on 12 April 2001 and were signed on its behalf by: P NUTTALL Director 6 ANSA LOGISTICS LIMITED 4 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2000
YEAR ENDED 10 months Notes 31 DECEMBER ended 2000 31 December 1999 (POUND)'000 (pound)'000 NET CASH INFLOW FROM CONTINUING OPERATING ACTIVITIES (reconciliation to operating profit on page 5) 6,881 1,984 RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest received 102 73 Interest paid (96) (107) ------- ------- 6 (34) TAXATION Taxation paid (1,873) (364) CAPITAL EXPENDITURE Purchase of tangible fixed assets (146) (5,901) Sale of tangible fixed assets 49 -- ------- ------- (97) (5,901) ------- ------- CASHFLOW BEFORE FINANCING 4,917 (4,315) FINANCING Issue of ordinary shares (1999:(pound)1) -- -- ------- ------- INCREASE/(DECREASE) IN CASH IN THE PERIOD 21 4,917 (4,315) ======= =======
7 ANSA LOGISTICS LIMITED 5 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
YEAR ENDED 0 months 31 DECEMBER ended 2000 31 December 1999 (POUND)'000 (pound)'000 CONTINUING OPERATING ACTIVITIES Operating profit 5,291 3,561 Depreciation on tangible fixed assets 1,746 1,421 Decrease/(increase) in stocks 168 (397) (Increase) in debtors (8,566) (13,213) Increase in creditors 8,549 10,184 (Decrease)/increase in provisions for liabilities and charges (307) 428 ------ ------- NET CASH INFLOW FROM CONTINUING OPERATING ACTIVITIES 6,881 1,984 ====== =======
8 ANSA LOGISTICS LIMITED 6 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2000 1 ACCOUNTING POLICIES These financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. A summary of the more important accounting policies, which have been consistently applied are set out below. TURNOVER Turnover, which excludes value added tax and trade discounts, represents the value of services supplied. TANGIBLE FIXED ASSETS Land and buildings are stated at cost. Other tangible fixed assets are stated at their purchase price, together with any incidental expenses of acquisition. Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight line basis over the expected useful economic lives of the assets concerned. The principal lives used for this purpose are: Motor vehicles 4 - 8 years Plant and machinery 5 years Leasehold land and buildings Lease term Computer equipment 3 years Freehold property 50 years INVESTMENTS Investments are stated at the lower of cost or net realisable value. STOCKS AND WORK IN PROGRESS Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business. Provision is made where necessary for obsolete, slow moving and defective stocks. FOREIGN CURRENCIES Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rates ruling at the balance sheet date. Exchange gains or losses are included in operating profit. 9 ANSA LOGISTICS LIMITED 7 DEFERRED TAXATION Provision is made for deferred taxation, using the liability method, on all material timing differences to the extent that it is probable that a liability or asset will crystallise. PENSION ARRANGEMENTS From 29 October 1999 the company has been the principal employer of the Ansa Logistics Pension Plan, a defined benefit scheme. Pension costs charged to the profit and loss account represent contributions paid by the company into that fund. In the period 1 May 1999 to 28 October 1999, the company contributed to a previous employers' pension scheme. The fund will be valued every three years by a professionally qualified actuary, who will determine whether additional contributions are required from the company to meet the liabilities of the scheme. Where additional contributions are required the costs will be spread over the expected average remaining service lives of members of the scheme. The company provides no other post retirement benefits to its employees. OPERATING LEASES Costs in respect of operating leases are charged on a straight-line basis over the lease term. 2 TURNOVER The whole of the turnover arises in the United Kingdom and relates to the transport of motor vehicles. Turnover consists of the amount of goods and services supplied during the year, net of value added tax. 3 DIRECTORS' EMOLUMENTS
YEAR ENDED 10 months 31 DECEMBER ended 2000 31 December 1999 (POUND)'000 (pound)'000 Aggregate emoluments 30 80 ============ =============
10 ANSA LOGISTICS LIMITED 8 J C Merry and P J are employed by AutoLogic Holdings plc, one of the shareholders and they are remunerated by that company in respect of their services for the group. Their emoluments are dealt with in the accounts of AutoLogic Holdings plc. The directors receive no emoluments from the company, nor is any charge levied on the company by the shareholding company in respect of directors' emoluments. During the year D C Pound became an employee of Autologic Holdings plc and as such is remunerated by them. Whilst in the employment of Ansa Logistics Limited his emoluments are included in the above. 4 EMPLOYEE INFORMATION The average monthly number of persons (including executive directors) employed during the period was:
YEAR ENDED 10 months ended 31 DECEMBER 31 December 2000 1999 NUMBER Number Drivers 250 265 Hourly paid 266 298 Staff 94 100 610 663 =========== =========== YEAR ENDED 10 months ended 31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 STAFF COSTS (FOR THE ABOVE PERSONS): Wages and salaries 25,986 19,296 Social security costs 2,441 1,823 Other pension costs (see note 16) 2,108 1,403 ----------- ----------- 30,535 22,522 =========== ===========
11 ANSA LOGISTICS LIMITED 9 5 INTEREST PAYABLE AND SIMILAR CHARGES
10 months YEAR ENDED ended 31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 Interest payable on bank loans and overdrafts 65 83 Interest payable on loan from related undertakings -- 3 Other interest 31 21 ------------- ------------ 96 107 ============= ============
6 INTEREST RECEIVABLE AND SIMILAR INCOME
10 months YEAR ENDED ended 31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 Interest on loans to related undertakings 102 62 Interest on bank deposits -- 11 ---------------- --------------- 102 73 ================ ===============
7 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
10 months YEAR ENDED ended 31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION IS STATED AFTER CHARGING: Depreciation of tangible fixed assets Auditors' remuneration - for audit services 1,746 1,421 - for non-audit services 16 30 Hire of plant and machinery under operating leases 11 31 Hire of other assets under operating leases 2,043 111 1,284 884 =========== ============
12 ANSA LOGISTICS LIMITED 10 8 TAX ON PROFIT ON ORDINARY ACTIVITIES
10 months YEAR ENDED ended 31 DECEMBER 31 December 2000 (POUND)'000 1999 (pound)'000 UNITED KINGDOM CORPORATION TAX CHARGE AT 30% (1999: 30%): Current period 2,010 1,442 ===== =====
9 TANGIBLE FIXED ASSETS
Short leasehold Freehold land and Plant & Computer Motor Property buildings Machinery Equipment vehicles Total (pound)'000 (pound)'000 (pound)'000 (pound)'000 (pound)'000 (pound)'000 COST At 1 January 2000 425 2,344 375 19 2,735 5,898 Additions -- 5 53 32 56 146 Disposals -- -- (3) -- (78) (81) AT 31 DECEMBER 2000 425 2,349 425 51 2,713 5,963 ====== ====== ====== ====== ====== ====== ACCUMULATED DEPRECIATION At 1 January 2000 -- (334) (63) (4) (1,017) (1,418) Charge for year -- (456) (79) (15) (1,196) (1,746) Disposals -- -- 4 -- 28 32 ------ ------ ------ ------ ------ ------ AT 31 DECEMBER 2000 -- (790) (138) (19) (2,185) (3,132) ====== ====== ====== ====== ====== ====== NET BOOK VALUE AT 31 DECEMBER 2000 425 1,559 287 32 528 2,831 ====== ====== ====== ====== ====== ====== Net book value At 31 December 1999 425 2,010 312 15 1,718 4,480 ====== ====== ====== ====== ====== ======
13 ANSA LOGISTICS LIMITED 11 10 INVESTMENTS IN SUBSIDIARIES
Name of company Description of shares held % shareholding Nature of business ----------------------------------------------------------------------------------------- Corkdean Limited Ordinary (pound)1 100% Non-trading company
The investment in Corkdean Limited is disclosed as a 100% subsidiary due to the substance of the agreement in place to acquire all of the shares of that company, through a series of share purchase options. The results of Corkdean Limited have not been consolidated within the financial statements as in the directors' opinion, the results for the year and the net assets of the company are not material to Ansa Logistics Limited. 11 STOCKS
2000 1999 (POUND)'000 (pound)'000 Parts, protective clothing and consumables 88 298 Fuel and oil 141 99 -------------- -------------- 229 397 ============== ============== 12 DEBTORS 2000 1999 (POUND)'000 (pound)'000 AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors 224 1,081 Amounts owed by related companies 15,676 9,088 Other debtors 3,727 2,327 Prepayments and accrued income 2,152 717 -------------- -------------- 21,779 13,213 ============== ==============
Included within prepayments is an amount of which (pound)600,000 is due after more than one year. 14 ANSA LOGISTICS LIMITED 12 13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2000 1999 (POUND)'000 (pound)'000 Bank overdraft (see below) -- 4,370 Trade creditors 2,108 2,013 Amounts owed to related companies 4,917 1,148 Other creditors 672 451 Corporation tax 1,216 1,078 Other taxation and social security payable 1,375 1,078 Accruals and deferred income 9,060 5,494 -------------- ------------ 19,348 15,632 ============== ============
The bank overdraft is secured by floating charges over the assets of the company. 14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2000 1999 (POUND)'000 (pound)'000 Other creditors 600 -- ------------- ------------ 600 -- ============== ============
15 PROVISIONS FOR LIABILITIES AND CHARGES
DILAPIDATION PROVISION (POUND)'000 AT 31 DECEMBER 1999 428 -------------- Unused amounts reversed during the period (202) Amounts charged against the provision during the year (105) -------------- AT 31 DECEMBER 2000 121 ==============
The dilapidation provision relates to the estimated costs of restoring assets held under operating leases to a condition stipulated within the terms of the lease. These relate to leases which expire within one year. 15 ANSA LOGISTICS LIMITED 13 DEFERRED TAXATION The potential deferred tax asset, none of which has been recognised in the financial statements, is as follows :
2000 1999 (POUND)'000 (pound)'000 AMOUNTS Amounts UNPROVIDED unprovided TAX EFFECTS OF TIMING DIFFERENCES BECAUSE OF: Excess of tax allowances over depreciation 397 258 Other short term timing differences 29 20 ============= ------------- 426 278 ============= =============
16 PENSION SCHEME ARRANGEMENTS Since 29 October 1999, the company has participated in a final salary pension scheme. The assets of the scheme are held separately from those of the companies in the scheme in an independently administered fund. Contributions of (pound)53,000 (1999: (pound)46,000) were due to the scheme at 31 December 2000. Total contributions being (pound)2,108,000 (1999: (pound)379,000) as shown in note 4. From 1 May 1999 to 28 October 1999, the company contributed (pound)1,024,000 to a previous employers' pension scheme. 17 CALLED-UP SHARE CAPITAL
2000 1999 (POUND) (pound) AUTHORISED 100 Ordinary shares of(pound)1 each 100 100 ----------- ----------- 100 100 =========== =========== ISSUED, ALLOTTED & FULLY PAID UP 1 Ordinary share of(pound)1 1 1 ----------- ----------- 1 1 =========== ===========
16 ANSA LOGISTICS LIMITED 14 18 RESERVES
PROFIT AND LOSS ACCOUNT (POUND)'000 AT 31 DECEMBER 1999 2,085 Profit for the year 3,287 ---------------- AT 31 DECEMBER 2000 5,372 ================
19 RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
2000 1999 (POUND)'000 (pound)'000 Opening shareholders' funds 2,085 -- Issue of share capital (1999:(pound)1) -- -- Profit for the financial period 3,287 2,085 ----------- ----------- Closing shareholders' funds 5,372 2,085 =========== ===========
20 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS / (DEBT)
(POUND)'000 Net debt at 1 January 2000 (4,315) Increase in cash in the period 4,917 ------------- Net funds at 31 December 2000 602 =============
17 ANSA LOGISTICS LIMITED 15 21 ANALYSIS OF NET FUNDS/(DEBT)
At CASH AT 31 December FLOW 31 DECEMBER 1999 2000 2000 (pound)'000 (POUND)'000 (POUND)'000 Cash at bank and in hand 55 547 602 Overdrafts (4,370) 4,370 -- ------ ----- ----- TOTAL (4,315) 4,917 602 ====== ===== =====
22 CONTINGENT LIABILITIES The company has given an unlimited multilateral cross company guarantee to its bankers in respect of Autocar Logistics Limited. Autocar Logistics Limited is owned by the same shareholders as Ansa Logistics Limited. The company is a participant in a banking arrangement under which all surplus cash balances are held as collateral for bank facilities advanced to Autocar Logistics Limited. In addition the company has issued an unlimited guarantee to the bank to support these facilities. 23 FINANCIAL COMMITMENTS At 31 December 2000 the company has annual commitments under non-cancellable operating leases expiring as follows:
MOTOR Motor LAND AND VEHICLES Land and Vehicles and BUILDINGS AND TRAILERS Buildings Trailers 2000 2000 1999 1999 (POUND)'000 (POUND)'000 (pound)'000 (pound)'000 Expiring within one year -- 79 38 -- Expiring between two to five years 899 1,400 899 861 Expiring after five years 84 737 84 334 --------------- --------------- -------------- ------------ 983 2,216 1,021 1,195 =============== =============== ============== ============
24 CAPITAL AND OTHER COMMITMENTS Capital expenditure that has been contracted for but has not been provided for in the financial statements is nil. 18 ANSA LOGISTICS LIMITED 16 25 RELATED PARTY TRANSACTIONS (a) The company contracts with Walon Limited, a subsidiary of AutoLogic Holdings plc. The company made purchases of (pound)2,533,000 (ex vat) from Walon Limited. All of these transactions were at arms length and in the ordinary course of business. A net amount of (pound)781,000 was owing to Walon Limited at the balance sheet date. (b) The company contracts with Translogistix Limited, a subsidiary undertaking of AutoLogic Holdings plc. The company made purchases of (pound)1,000 from Translogistix Limited during the period. All of these transactions were at arms length and in the ordinary course of business. A net amount of (pound)30,000 was owing from Translogistix Limited at the balance sheet date. (c) The company contracts with Autocar Logistics Limited, a joint venture undertaking of AutoLogic Holdings plc and Axis International Inc. The company made sales of (pound)67,939,000 (ex vat) to Autocar Logistics Limited and made purchases of (pound)5,150,000 (ex vat) during the period. All of these transactions were at arms length and in the ordinary course of business. A net amount of (pound)11,507,000 was owing from Autocar Logistics Limited at the balance sheet date. 26 ULTIMATE AND IMMEDIATE PARENT COMPANIES The directors regard AutoLogic Holdings plc and Axis International Inc. as the joint parent and controlling parties of Ansa Logistics Limited. Each company holds 50% of the share capital of Ansa Logistics Limited. As a result, Ansa Logistics Limited has no single ultimate holding company. 19 ANSA LOGISTICS LIMITED 17 27 SUMMARY OF DIFFERENCES BETWEEN UK GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND US GENERALLY ACCEPTED ACCOUNTING PRINCIPLES The company's financial statements have been prepared in accordance with accounting principles generally accepted in the United Kingdom (UK GAAP), which differs in certain significant respects from those generally accepted in the United States (US GAAP). The effect of the application of US GAAP to net income and shareholders' equity is set out in the tables below. RECONCILIATION OF NET INCOME
YEAR ENDED 10 months 31 DECEMBER ended 2000 31 December 1999 (POUND)'000 (pound)'000 ----------------------------------------------------------------------------------------------------------------- Net income under UK GAAP 3,287 2,085 US GAAP adjustments: Up-front revenue recognition a 647 -- Deferred start-up costs a (647) -- Pensions - application of SFAS 87 b (766) (71) Deferred taxes - application of SFAS 109 c 148 278 Deferred tax on US GAAP adjustments c 230 21 ----------------------------------------------------------------------------------------------------------------- Income before cumulative effect of changes in accounting principles: 2,899 2,313 Cumulative effect of change in accounting principle for up-front revenue a (2,426) -- Cumulative effect of change in accounting principle for deferred start-up costs a 2,426 -- ----------------------------------------------------------------------------------------------------------------- Net income under US GAAP 2,899 2,313 -----------------------------------------------------------------------------------------------------------------
RECONCILIATION OF SHAREHOLDERS' EQUITY
31 DECEMBER 31 December 2000 1999 (POUND)'000 (pound)'000 ----------------------------------------------------------------------------------------------------------------- Shareholders' equity under UK GAAP 5,372 2,085 US GAAP adjustments: Deferred revenue a (1,779) -- Deferred start up costs a 1,779 -- Pensions - application of SFAS 87 b (837) (71) Deferred taxes - application of SFAS 109 c 426 278 Deferred tax on US GAAP adjustments c 251 21 ----------------------------------------------------------------------------------------------------------------- 5,212 2,313 -----------------------------------------------------------------------------------------------------------------
20 ANSA LOGISTICS LIMITED 18 (A) REVENUE RECOGNITION AND DEFERRAL OF START-UP COSTS Staff Accounting Bulletin No. 101 (SAB 101) Revenue Recognition in Financial Statements provides the views of the staff of the Securities and Exchange Commission on recognition of revenue. SAB 101 requires certain up-front fees to be recognised as revenue over the expected period of the customer relationship to which they relate. Under SAB 101 deferred costs are also charged to expense proportionally and over the same period that the associated deferred revenue is recognised as revenue. The cumulative effect of the change in accounting principle in adopting SAB 101 has been recorded in 2000. Under UK GAAP, these up-front fees were recognised as revenue upon receipt in 1999; the associated costs were recognised as expense in 1999. Pro forma US GAAP net income for 1999 would not have changed had SAB 101 been applied then. (B) PENSIONS Under UK GAAP, the expected cost of providing retirement benefits are charged to the profit and loss account over the periods benefiting from the employees' services. Variations from expected cost are similarly spread. Under US GAAP, pension costs and liabilities are calculated in accordance with Statement of Financial Accounting Standards No. 87, "Employer's Accounting for Pensions" (SFAS 87) which requires the use of a prescribed actuarial method and a set of measurement principles. (C) DEFERRED TAXES Under UK GAAP the company provides for deferred tax in respect of the tax attributable to timing differences only to the extent that such timing differences are expected to reverse in the foreseeable future. US GAAP requires recognition of all deferred tax assets and liabilities for temporary differences using enacted tax rates in effect at year end in accordance with Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" (SFAS 109). A valuation allowance is posted to the extent that it is more likely than not that all or part of the deferred tax assets will not be realised. Deferred tax has also been calculated in respect of the US GAAP adjustments. (D) CURRENT ASSETS AND LIABILITIES Current assets under UK GAAP include amounts that fall due after more than one year. Under US GAAP, such assets would be reclassified as non-current assets. Provisions for liabilities and charges under UK GAAP include amounts due within one year that would be reclassified to current liabilities under US GAAP. 21 ANSA LOGISTICS LIMITED 19 CASH FLOW INFORMATION Under UK GAAP, the company complies with Financial Reporting Standard 1 (revised) "Cash Flow Statements" (FRS 1), the objective and principles of which are similar to those set out in Statement of Financial Accounting Standards No. 95, "Statement of Cash Flows" (SFAS 95). The principal difference between the two standards is in respect of classification. Under UK GAAP, cash flows are presented separately for operating activities, returns on investments and servicing of finance, taxation, capital expenditure, financial investment, acquisition and disposals, equity dividends paid, management of liquid resources and financing. Under US GAAP, only three categories of cash flow activity are reported operating activities, investing activities and financing activities. Under UK GAAP cash paid or received for interest and income taxes is presented separately from operating activities and dividends paid are presented separately from financing activities. Under US GAAP cash flows from operating activities are based on net income which includes interest and income taxes. Under UK GAAP, cash is defined as cash in hand and deposits repayable on demand. The US GAAP cash flow statement reports changes in cash and cash equivalents which includes short term highly liquid investments with an original maturity of three months or less but excludes bank overdrafts. UK investors regard free cash flow as the cash available annually to be allocated between a number of options including capital expenditure, payment of dividends and the financing of acquisitions. Under US GAAP presentation the following amounts would have been reported:
YEAR ENDED 31 10 months ended 31 DECEMBER 2000 December 1999 (POUND)'000 (pound)'000 ------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 5,014 1,586 Net cash used in investment activities (97) (5,901) Net cash provided by (used in) financing activities (4,370) 4,370 ------------------------------------------------------------------------------------------------------------- Net increase in cash and cash equivalents 547 55 Cash and cash equivalents at beginning of period 55 - ------------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period 602 55 -------------------------------------------------------------------------------------------------------------
As disclosed in Note 25 to the financial statements, the majority of the turnover in the period was with Autocar Logistics Limited, which acts as intermediary in billings under contracts that Autocar Logistics Limited enters into with it customers. Autocar Logistics Limited is also a joint venture company, with the same two shareholders as Ansa Logistics Limited. 22 ANSA LOGISTICS LIMITED 20 28 UNITED KINGDOM COMPANY LAW REQUIREMENTS (UNAUDITED) The directors are required by United Kingdom company law to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company as at the end of the financial year and of the profit or loss of the company for that period. The directors confirm that suitable accounting policies have been use and applied consistently, and reasonable and prudent judgements and estimates have been made in the preparation of the financial statements for the year ended 31 December 2000. The directors also confirm the applicable accounting standards have been followed. The directors are responsible for keeping proper accounting records, for safeguarding the assets of the company and of the group and hence for taking responsible steps for the prevention and detection of fraud and other irregularities.