New accounting standards hit profits by £7.2 million
Woolworths' profits for the year to January 29 were reduced after adopting International Financial Reporting Standards (IFRS).

In its modified financial statement today, it revealed a£7.2 million fall in profit before tax, exceptional costs and goodwill amortisation from£73.1 million to£65.9 million. Profit after tax fell from£2.2 million to£400,000 and net assets fell from£463.8 million to£368 million.

IFRS will apply for the first time in Woolworths' financial statements for the year to January 28, 2006. Accordingly, financial results for the six months to July 30 this year will be prepared and reported under IFRS. The company affirmed that none of the adjustments arising from IFRS relate to cash and there is no impact on reported cashflows.