Level 2

Company Announcements

Interim Results

Related Companies

RNS Number : 4605A
boohoo.com plc
29 September 2015
 

For Immediate Release                                                                 29 September 2015

 

 

 

 

boohoo.com plc - Interim results for the six months to 31 August 2015

 

"The Global Fashion Leader for a Social Generation"

 

£000

6 months ended     31 August 2015

6 months ended     31 August 2014

Change

 

Revenue

90,784

67,197

+35%

Gross profit

54,539

41,843

+30%

  Gross margin

60.1%

62.3%

-220bps

Operating profit

5,976

4,326

+38%

EBITDA (adjusted)(1)

7,613

6,794

+12%

Profit before tax

6,270

4,500

+39%

Cash at period end

60,360

55,817

+8%

Earnings per share

0.45p

0.29p

+55%

 (1): EBITDA (adjusted) is pre-exceptional costs of £nil (2014:£1.2m) and share based payment costs of £0.3m (2014: £0.4m)

 

Highlights for the six months to 31 August 2015

·     Revenue up 35% (39% CER(2))

UK up 30%, rest of Europe up 19% (34% CER), rest of world up 65% (75% CER)

International now represents 35% of total revenue

·     Gross margin 60.1%

·     8.4% EBITDA (adjusted) margin (2014: 10.1%), reflecting investment in price, promotions and marketing

·     3.5m active customers(3), up 32% on prior year

·     UK app launched and responsive websites introduced for European sites, improving mobile and tablet offering  (now 65% of sessions)

·     Warehouse extension completed and now in use

·     Strong balance sheet with net cash of £60m

 (2): CER designates Constant Exchange Rate translation of foreign currency revenue

 (3): Active customers defined as having shopped in the last year

 

Mahmud Kamani and Carol Kane, joint CEOs, commented:

"We are pleased to report a successful first half, with strong revenue growth driven by acquiring new customers through our investments in price, promotions and marketing spend. We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.

The autumn/winter marketing campaign #WeAreNow is supporting a good start to the second half. We are also pleased with the response to our new app and responsive websites and will continue to invest in building customer value and market reach in the second half of the year."



 

Investor and Analyst Meeting

A meeting for analysts will be held at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN on 29 September 2015 commencing at 8.30am. boohoo.com plc's Interim Results 2015 are available at www.boohooplc.com .

 

Enquiries

boohoo.com plc

Mahmud Kamani, Joint Chief Executive

Carol Kane, Joint Chief Executive

Neil Catto, Chief Financial Officer

 

c/o Buchanan Tel: +44 (0)20 7466 5000

 

 

 

 

Buchanan - Financial PR adviser

Richard Oldworth

Helen Chan

Gabriella Clinkard

 

Tel: +44 (0)20 7466 5000

boohoo@buchanan.uk.com

 

 

Zeus Capital - Nominated adviser and joint broker

Nick Cowles

Andrew Jones

John Goold

 

 

Tel: +44 (0)161 831 1512

 

Tel: +44 (0)20 3829 2001

Jefferies Hoare Govett - joint broker

Nick Adams

Max Jones

 

 

Tel: +44 (0)20 7029 8000

 

 

About boohoo.com

"24/7 Global Fashion"

 

Keeping one step ahead of the trends or making a subtle style change is easy with boohoo.com and with up to 100 pieces hitting the site every day and a new collection each week, boohoo.com never stops - it's 24/7 fashion at its best.

 

From the UK's best kept fashion secret to one of the fastest growing own-brand, international etailers, boohoo.com has quickly evolved into a global fashion leader of its generation.  Combining cutting-edge, aspirational design with an affordable price tag, boohoo.com has been pushing boundaries since 2006 to bring its customers all the latest looks for less.

 

www.boohoo.com

www.boohoo.com/newz/page/home

fr.boohoo.com

www.boohoo.com/europe/page/home

www.boohoo.com/sweden/page/home

de.boohoo.com

www.boohoo.com/usa/page/home

www.boohoo.com/denmark/page/home

it.boohoo.com

www.boohoo.com/canada/page/home

www.boohoo.com/norway/page/home

nl.boohoo.com

www.boohoo.com/aus/page/home


es.boohoo.com

 



 

Business review

 

Performance during the 6 months to 31 August 2015

Revenue for the first half year increased to £90.8 million, up 35% (39% CER) on the previous year.

Growth in the UK was 30%, continuing the improved momentum we saw in the first quarter of the year.

Revenue growth in the rest of Europe was 19% (34% CER), impacted by the weak euro. Rest of the world growth revenue growth of 65% (75% CER) was very encouraging, driven by a strong performance in the Australian and US markets.

We have commenced a successful wholesale trial of boohoo branded products to a number of UK and overseas etailers. We plan to extend the range of partners we work with in the second half of the year and see the use of a wholesale channel as an effective strategy to build our brand internationally and broaden our customer reach.

Gross margin was 60.1% (2014: 62.3%) in spite of adverse exchange rate movements and increased promotions. Adjusted EBITDA was £7.6 million for the half year, an increase of 12% on the prior year.  The 8.4% adjusted EBITDA margin (2014: 10.1%) reflects our investment in price, promotions and marketing to drive strong revenue growth during the first half of the year.

Fashion

We launch up to 100 new styles every day, with constant "new in" updates on our websites, so that our customers are offered the very latest trends and fashion. The combination of high fashion, great value prices and effective marketing encourages customers to shop for every occasion on a regular basis from a choice of around 15,000 styles. Our test-and-repeat model reduces stock holding risk, whilst rapid response enables us to reorder strong selling lines to quickly satisfy demand.

Our core womenswear ranges of dresses, tops, jackets and footwear have continued to perform strongly. The Petite range, launched in autumn 2014 has been highly successful, with robust month-on-month growth mirroring the success of the Plus Size range. Plus Size has continued to grow significantly and has been very well received in our international markets. Swimwear sales have grown strongly, continuing last year's success, as boohoo becomes a shopping destination of choice. We are excited about the introduction of our new range, boohoo Tall, in the second half.

In the spring, we launched boohoo brands, which has made shopping for a chosen look or occasion much easier and more enjoyable, collating similar styles and co-ordinates in categories, such as boohoo Nights and boohoo Blue. Not only is searching time reduced, but complementary items are also easier to find. The "inspire me" and Stylefix pages ensure our customer sees the latest trends and receives the latest fashion tips.

Marketing

Our spring/summer 2015 campaign, "#WeAreUs" featured an innovative approach to marketing with behind-the-scenes videos relating to the brand and its people, shown on boohoo TV and social media, where customers could share images, music, health and lifestyle tips. Highly engaging with our young consumers, who enjoy developing connections with their interest groups, the campaign aimed to promote loyalty through building a greater emotional connection with our customers, expressing our brand personality and the core values of fun, inclusivity and individuality.

Marketing activity has been focussed on our key markets and included TV advertising, media events, college ambassador programmes and social media influencers. In these markets we have engaged local bloggers and well-known social media personalities to promote the brand. Our most recent celebrity signing is hit singer/song writer Charli XCX, who has entered into an exclusive design collaboration for a series of ranges over the next 18 months, the first of which will be launched before Christmas 2015. Charli XCX has a following of 2.5 million Facebook fans and is hugely popular amongst our targeted demographic.

The autumn/winter 2015 campaign "#WeAreNow" is successfully building on the "#WeAreUs" theme earlier in the year and introduces the new season ranges, supported by a new TV ad, celebrities and influencers. In the UK we are launching a student ambassador programme at key universities, whilst in France we will have a pop-up store and will continue with sponsorship of Secret Story, the reality TV series.

Marketing expenditure was 12.6% of revenue over the period compared to 14.5% in the previous year, with a higher focus on price and delivery promotions compared to the previous year.

Customer interaction

We served 3.5 million customers in the 12 months to 31 August 2015, an increase of 32% on the same period a year ago. Website traffic grew strongly, with 182 million sessions recorded in the year, up 27% on the previous 12 months.  Our social media statistics reveal we have 0.4 million followers on Twitter, 1.1 million on Instagram, 2.2 million Facebook likes and 2.5 million views recorded on YouTube. We also feature on other social media sites including Vine, Snapchat and Pinterest.

We have a multi-lingual customer services team responding to customer queries from a variety of media and aim for excellence in response time and problem resolution. We constantly measure our performance internally and monitor external customer review websites such as Trustpilot to ensure we maintain best-in-class standards.

Our customers are able to choose from a range of delivery options, which we are constantly refining as new opportunities become available. Last year we introduced a 9pm cut off for next day delivery, Sunday delivery and collect+ in the UK. This year we have reduced the shipping time to Australia by one day and have plans to introduce more collection and return options via third party stores and distribution networks. Customers will shortly be able to use a website portal to choose their preferred return option.

Technology

In the first half of this year, we converted the remaining European websites, including France and Germany, to fully responsive sites (meaning the website layout responds to the size of the device being used by the customer). Now all our websites function according to the device used, improving viewing and ease of use.

Android and iPhone Apps have been introduced in the UK and will be rolled out to other territories in the second half. Mobile and tablet use continues to rise and now accounts for 65% of sessions.

Warehouse

The new warehouse extension entered service in August this year, with 270,000 additional square feet of storage space made available from three mezzanine floors. Capacity can be rapidly expanded in future by another 275,000 square feet from three more mezzanine floor layers, to cater for significant future growth. Total warehouse capacity now stands at 525,000 square feet, equivalent in size to over six football pitches.

People

Our senior management team was strengthened last year with a number of new positions, providing the expertise we need for the growth of the business. This year we have added one more senior position, that of International Director, which we see as a key appointment for the execution of our international growth strategy. The rate of growth in revenue has required an increase in personnel in the volume-related functions in customer service and warehousing. The total workforce now stands at 876, up from 784 at 28 February 2015.

Financial review

During the first half we have invested in acquiring new customers which has delivered revenue growth ahead of our initial expectations with profits in line with our financial plans.

 

Sales revenue by geographical market


6 months to

31 August

2015

6 months to 31 August 2014

Change

Change


£000

£000


CER

UK

59,128

45,605

+30%

+30%

Rest of Europe

10,403

8,719

+19%

+34%

Rest of world

21,253

12,873

+65%

+75%


90,784

67,197

+35%

+39%

 

At constant exchange rates [CER], all regions showed growth compared with the same period last year. Growth in sterling terms has been impacted by currency headwinds across our international business, especially in Australia and Europe.

 

KPIs


6 months to 31 August 2015

6 months to

31 August 2014

Change

Active customers(1)

3.5 million

2.7 million

+32%

Number of orders

3.8 million

2.7 million

+43%

Conversion rate to sale (2)

3.8%

3.5%

+30bps

Average order value(3)

£33.91

£36.90

-8.1%

Number of items per basket

2.74

2.68

+2.2%

 

(1)      Defined as having shopped in the past year

(2)      Defined as the percentage of orders taken to internet sessions

(3)      Calculated as gross sales including sales tax divided by the number of orders

Our business is continuing to attract new customers and retain existing customers, with active customer numbers increasing by 32% compared to a twelve month period one year ago. Conversion rates have increased to 3.8%. Average order value has seen a small decline of 8.1% to £33.91 as we have sought to keep our prices highly competitive and target product at price points most appealing to our young customers, whilst the number of items per basket increased by 2.2% to 2.74.

 



 

Consolidated income statement

 


6 months to 31 August 2015

6 months to 31 August 2014

Change



£000

£000



Revenue

90,784

67,197

35%


Cost of sales

(36,245)

(25,354)



Gross profit

54,539

41,843

30%


Gross margin

60.1%

62.3%








Distribution costs

(21,513)

(14,618)



Administrative expenses

(27,409)

(22,899)



Other income

359

-



Operating profit

5,976

4,326

38%







Finance income

294

174



Profit before tax

6,270

4,500

39%












Calculation of EBITDA (adjusted)





Operating profit

5,976

4,326



Depreciation and amortisation

1,363

824



Share-based payments

274

417



Exceptional items

-

1,227



EBITDA (adjusted)

7,613

6,794

12%



             

             



Reported gross margin reduced from 62.3% to 60.1%, due in equal parts to adverse exchange rate movements, higher promotional discounts and investment in international pricing, the latter two driving demand.

Distribution costs and administrative expenses have increased due to business expansion, higher marketing expenditure, investment in improved, more efficient, systems and in talented people to support the business growth, recruited in the second half of last year.

The exceptional items of £1.2m in H1 last year, included in administrative expenses, related to IPO expenses.

EBITDA (adjusted) increased by 12% from £6.8m to £7.6m.

 



 

Statement of financial position



At 31 August 2015

At 31 August 2014



£000

£000

Intangible assets


4,479

3,770

Property, plant and equipment


15,277

7,037

Deferred tax


101

121

Non-current assets


19,857

10,928





Working capital


(8,407)

(4,798)

Net financial assets


1,406

(56)

Cash and cash equivalents


60,360

55,817

Interest bearing loans and borrowings


-

(99)

Current tax liability


(1,316)

(1,291)





Net assets


71,900

60,501

 

Net assets have increased by £11.4m. Working capital has reduced primarily due to increased trade creditors and accruals for unbilled goods and services at the month end driven by increased trading activity.

 



 

Liquidity and financial resources

Free cash flow was £6.8m compared to £7.0m in H1 2014. Working capital requirements decreased: inventories increased due to the requirement to hold more products to serve our growing customer base; receivables, payables and accruals increased in line with trading activity. Capital expenditure was £5.7m as we have continued to invest in our warehouse and IT systems to support projected growth in trade. The closing cash balance was £60.4m.

 

Consolidated cash flow statement




 



6 months to 31 August 2015

6 months to 31 August 2014



£000

£000





Profit for the period


5,000

3,282





Depreciation charges and amortisation


1,363

824

Share-based payments charges


274

417

Tax expense


1,270

1,218

Finance income


(294)

(174)

Increase in inventories


(7,959)

(1,317)

(Increase)/decrease in trade and other receivables


(2,488)

332

Increase in trade and other payables


15,377

4,793

Capital expenditure


(5,704)

(2,380)

Free cash flow


6,839

6,995





Net proceeds raised from IPO


-

47,515

Purchase of own shares by Employee Benefit Trust


(331)

(400)

Interest received


304

174

Tax paid


(1,182)

(1,162)

Non-cash charges and exchange differences


584

(73)

Repayment of borrowings


-

(2,643)

Net cash flow


6,214

50,406





Cash and cash equivalents at beginning of period


54,146

5,411

Cash and cash equivalents at end of period


60,360

55,817





 



 

Fixed and intangible asset additions



At 31 August 2015

At 31 August 2014



£000

£000

IT intangible assets


628

1,024

Warehouse extension


4,736

629

IT equipment, office fixtures and fittings


340

727



5,704

2,380

 

Outlook

 

We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.

Our wholesale business trial has performed well and we plan to continue to extend the number of partners we work with in the second half of the year.  We will continue to refine the customer experience through a combination of technological improvements, more delivery and return options whilst retaining what we are best at: offering great fashionable product at affordable prices.

During the first half of the year we have invested in acquiring new customers with revenue growth exceeding our initial expectations. We now anticipate revenue growth for the full of year of between 30% and 35%.  During the second half we will continue to look at opportunities to invest in building customer lifetime value and market reach which may impact margins in the short term.  We are trading in line with current market expectations for EBITDA.

We remain focussed on driving growth in our business and we are pleased with the start we have made to the AW15 season.

 

Mahmud Kamani

Carol Kane

Neil Catto




Joint Chief Executive

Joint Chief Executive

Chief Financial Officer

 

 

28 September 2015

Unaudited consolidated statement of comprehensive income

for the 6 months ended 31 August 2015








Note


6 months to 31 August 2015

6 months to 31 August 2014

Year to

28 February

2015




£000

£000

£000

Revenue

3


90,784

67,197

139,851

Cost of sales



(36,245)

(25,354)

(54,806)

Gross profit



54,539

41,843

85,045







Distribution costs



(21,513)

(14,618)

(30,653)

Administrative expenses



(27,409)

(22,899)

(43,814)

Other income

4


359

-

-

Operating profit



5,976

4,326

10,578







Finance income



294

174

490

Profit before tax



6,270

4,500

11,068







Taxation



(1,270)

(1,218)

(2,663)







Profit for the period



5,000

3,282

8,405










Net fair value gain/(loss) on cash flow hedges



584

(73)

802

Total comprehensive income for the period



5,584

3,209

9,207







Earnings per share

6





Basic



0.45p

0.29p

0.75p

Diluted



0.44p

0.29p

0.74p

 

All activities relate to continuing operations.

Administrative expenses includes the following exceptional items: £nil (2014: IPO expenses £1,254,000).

 

Unaudited consolidated statement of financial position

at 31 August 2015


Note


At 31

August

2015

At 31

August

2014

At 28

February

2015




£000

£000

£000

Assets






Non-current assets






Intangible assets



4,479

3,770

4,561

Property, plant and equipment



15,277

7,037

10,854

Deferred tax

7


101

121

46




19,857

10,928

15,461

Current assets






Inventories

8


19,147

11,112

11,188

Trade and other receivables

9


5,532

3,693

3,845

Financial assets



1,643

27

852

Cash and cash equivalents



60,360

55,817

54,146

Total current assets



86,682

70,649

70,031







Total assets



106,539

81,577

85,492







Liabilities






Current liabilities






Trade and other payables

10


(33,086)

(19,603)

(17,915)

Interest bearing loans and borrowings

11


-

(99)

-

Financial liabilities



(237)

(83)

(31)

Current tax liability



(1,316)

(1,291)

(1,173)

Total current liabilities



(34,639)

(21,076)

(19,119)













Net assets



71,900

60,501

66,373







Equity






Share capital

12


11,231

11,231

11,231

Share premium

12


551,612

551,591

551,612

Capital redemption reserve



100

100

100

Hedging reserve



1,406

(53)

822

EBT reserve



(761)

(429)

(430)

Reconstruction reserve



(515,282)

(515,261)

(515,282)

Retained earnings



23,594

13,322

18,320

Total equity



71,900

60,501

66,373

 

 

 



 

Unaudited consolidated statement of changes in equity

for the 6 months ended 31 August 2015

 


Called up share capital

Share premium

Capital redemption reserve

Hedging reserve

EBT reserve

Recon-struction reserve

Retained earnings

Total

equity


£000

£000

£000

£000

£000

£000

£000

£000

Balance as at 1 March 2015

11,231

551,612

100

822

(430)

(515,282)

18,320

66,373

Purchase of shares by EBT

-

-

-

-

(331)

-

-

(331)

Share-based payment charge

-

-

-

-

-

-

274

274

Profit for the period

-

-

-

-

-

-

5,000

5,000

Fair value gain on cash flow hedges

-

-

-

584

-

-

-

584

Balance at 31 August 2015

11,231

551,612

100

1,406

(761)

(515,282)

23,594

71,900

 

 


Called up share capital

Share premium

Capital redemption reserve

Hedging reserve

EBT reserve

Recon-struction reserve

Retained earnings

Total

equity


£000

£000

£000

£000

£000

£000

£000

£000

Balance as at 1 March 2014

-

-

100

20

-

17

9,623

9,760

Issue of shares

11,231

551,591

-

-

(29)

(515,278)

-

47,515

Purchase of shares by EBT

-

-

-

-

(400)

-

-

(400)

Share-based payment charge

-

-

-

-

-

-

417

417

Profit for the period

-

-

-

-

-

-

3,282

3,282

Fair value loss on cash flow hedges

-

-

-

(73)

-

-

-

(73)

Balance at 31 August 2014

11,231

551,591

100

(53)

(429)

(515,261)

13,322

60,501

 

 


Called up share capital

Share premium

Capital redemption reserve

Hedging reserve

EBT reserve

Recon-struction reserve

Retained earnings

Total

equity


£000

£000

£000

£000

£000

£000

£000

£000

Balance as at 1 March 2014

-

-

100

20

-

17

9,623

9,760

Issue of shares

11,231

551,612

-

-

-

(515,299)

-

47,544

Purchase of shares by EBT

-

-

-

-

(430)

-

-

(430)

Share-based payments credit

-

-

-

-

-

-

292

292

Profit for the year

-

-

-

-

-

-

8,405

8,405

Other comprehensive income for the year

-

-

-

802

-

-

-

802

Balance at 28 February 2015

11,231

551,612

100

822

(430)

(515,282)

18,320

66,373

 

Unaudited consolidated cash flow statement

for the 6 months ended 31 August 2015

 


Note


6 months to 31 August 2015

6 months to 31 August 2014

Year to

28 February

2015




£000

£000

£000

Cash flows from operating activities






Profit for the period



5,000

3,282

8,405

Adjustments for:






Depreciation charges and amortisation



1,363

824

2,002

Share-based payment charge



274

417

292

Transfer from hedging reserves



584

(73)

802

Finance income



(294)

(174)

(490)

Tax expense



1,270

1,218

2,663

Profit before tax before changes in working capital and provisions


8,197

5,494

13,674







Increase in inventories

8


(7,959)

(1,317)

(1,393)

(Increase)/decrease in trade and other receivables

9


(2,488)

332

(523)

Increase in trade and other payables

10


15,377

4,793

3,053

Cash generated from operations



13,127

9,302

14,811







Tax paid



(1,182)

(1,162)

(2,650)

Net cash inflow from operating activities



11,945

8,140

12,161







Cash flows from investing activities






Acquisition of intangible assets



(628)

(1,024)

(2,442)

Acquisition of tangible property, plant and equipment



(5,076)

(1,356)

(5,724)

Finance income



304

174

368

Net cash used in investing activities



(5,400)

(2,206)

(7,798)







Cash flows from financing activities






Proceeds from the issue of ordinary shares



-

300,000

300,000

Payment of convertible loan notes to shareholders of ABK Limited


-

(239,899)

(239,899)

Share issue costs written off to share premium



-

(12,586)

(12,586)

Purchase of own shares by EBT



(331)

(400)

(401)

Repayment of borrowings



-

(2,643)

(2,742)

Net cash (used in)/generated from financing activities



(331)

44,472

44,372







Increase in cash and cash equivalents



6,214

50,406

48,735







Cash and cash equivalents at beginning of period



54,146

5,411

5,411

Cash and cash equivalents at end of period



60,360

55,817

54,146



 

Notes

(forming part of the interim report and accounts)

The interim financial statements for the six months ended 31 August 2015 have been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. The interim financial statements should be read in conjunction with the group's Annual Report and Accounts for the year ended 28 February 2015, prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"), IFRIC Interpretations and the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.

The interim financial statements contained in this report are not audited and do not constitute statutory accounts within the meaning of Companies (Jersey) Law 1991. The Annual Report and Accounts for the year ended 28 February 2015 have been filed with the Jersey Companies Registry. The auditors' reports on those accounts was unqualified, did not include reference to any matters on which the auditors were required to report by exception under Companies (Jersey) Law 1991.

The group's business activities together with the factors that are likely to affect its future developments, performance and position are set out in the Business Review. The Business Review describes the group's financial position, cash flows and borrowing facilities.

The interim financial statements are unaudited and were approved by the board of directors on 28 September 2015.

Going concern

The interim financial statements have been approved on the assumption that the group remains a going concern. The following paragraph summarises the issues and basis on which the directors have reached their conclusion.

The directors have reviewed the group's cash flow forecasts for a period exceeding 12 months from the date of authorisation of these interim financial statements. Following this review, the directors have formed a judgement that, at the time of approval of the interim financial statements, the group has sufficient resources to continue operating for the foreseeable future including the funding of necessary capital expenditure. For the reasons noted above, the directors continue to prepare the financial statements on a going concern basis.

Accounting policies

The interim financial statements have been prepared in accordance with the accounting policies set out in the group's Annual Report and Accounts for the year ended 28 February 2015.

 

 

2              Principal risks and uncertainties

The board considers the principal risks and uncertainties which could impact the group over the remaining six months of the financial year to 28 February 2016 to be unchanged from those set out in the group's Annual Report and Accounts for the year ended 28 February 2015, which in summary are: economic risk; competition risk; fashion and consumer demands risk; systems and technical risk; supply chain risk; reputational risk; financial risk; people risk; and loss of key facilities. These are set out in detail on pages 30 to 32 of the group's Annual Report and Accounts for the year ended 28 February 2015, a copy of which is available on the group's website, www.boohooplc.com.

 

 



 

3              Segmental analysis

 



6 months to 31 August 2015



UK

Rest of Europe

Rest of

world

Total



£000

£000

£000

£000

Revenue


59,128

10,403

21,253

90,784







Cost of sales


(23,843)

(4,482)

(7,920)

(36,245)

Gross profit


35,285

5,921

13,333

54,539







Distribution expenses


(13,165)

(2,694)

(5,654)

(21,513)

Segment result


22,120

3,227

7,679

33,026







Administrative expenses


-

-

-

(27,409)

Other income


-

-

-

359

Operating profit





5,976







Finance income


-

-

-

294

Profit before tax


-

-

-

6,270



 

6 months to 31 August 2014

 



UK

Rest of

Europe

Rest of

world

Total

 



£000

£000

£000

£000

 

Revenue


45,605

8,719

12,873

67,197

 







 

Cost of sales


(17,688)

(3,373)

(4,293)

(25,354)

 

Gross profit


27,917

5,346

8,580

41,843

 







 

Distribution expenses


(8,765)

(2,097)

(3,756)

(14,618)

 

Segment result


19,152

3,249

4,824

27,225

 







 

Administrative expenses


-

-

-

(22,899)

 

Operating profit





4,326

 







 

Finance income


-

-

-

174

 

Profit before tax


-

-

-

4,500

 

 

                                               



Year to 28 February 2015



UK

Rest of

Europe

Rest of

world

Total



£000

£000

£000

£000

Revenue


94,342

18,086

27,423

139,851







Cost of sales


(37,911)

(7,275)

(9,620)

(54,806)

Gross profit


56,431

10,811

17,803

85,045







Distribution expenses


(19,078)

(3,953)

(7,622)

(30,653)

Segment result


37,353

6,858

10,181

54,392







Administrative expenses


-

-

-

(43,814)

Operating profit





10,578







Finance income


-

-

-

490

Profit before tax


-

-

-

11,068

4              Other income


6 months to 31 August 2015

6 months to

31 August 2014

Year to

28 February 2015


£000

£000

£000

Gift to group from director for benefit of employees

359

-

-

 

 

 

5              Profit before tax

 

Profit before tax is stated after charging:



6 months to 31 August 2015

6 months to 31 August 2014

Year to

28 February 2015



£000

£000

£000

Operating lease rentals for buildings


374

290

588

Depreciation


653

518

1,069

Amortisation


710

306

933

Share-based payment charge


274

417

292

Exceptional items - IPO costs


-

1,227

1,254

 

 

 

6             Earnings per share

 

Basic earnings per share is calculated by dividing profit after tax by the weighted average number of shares in issue during the year. Own shares held by the Employee Benefit Trusts are eliminated from the weighted average number of shares. Diluted earnings per share is calculated by dividing the profit after tax by the weighted average number of shares in issue during the year, adjusted for potentially dilutive share options.

 



6 months to 31 August 2015

6 months to 31 August 2014

Year to

28 February 2015

Weighted average shares in issue for basic earnings per share


1,118,810,227

1,120,041,882

1,119,632,278

Dilutive share options


22,737,018

13,827,152

14,209,534

Weighted average shares in issue for diluted earnings per share


1,141,547,245






Earnings (£000)


5,000

3,282

8,405

Basic earnings per share


0.45p

0.29p

0.75p

Diluted earnings per share


0.44p

0.29p

0.74p

 



 

 

7              Deferred tax



Depreciation in excess of capital allowances

Share-based payments

Total



£000

£000

£000

At 1 March 2014


33

-

33

At 31 August 2014


33

88

121

At 28 February 2015


(12)

58

46

Recognised in statement of comprehensive income


-

55

55

At 31 August 2015


(12)

113

 

 

8              Inventories


At 31

August

2015

At 31

August

2014

At 28

February

2015


£000

£000

£000

Finished goods

19,147

11,188

The value of inventories included within cost of sales for the period was £36,300,000 (2014: £25,354,000). The impairment provision was reduced by £55,000 (2014: increase of £342,000) and released to the statement of comprehensive income.

 

 

 

9              Trade and other receivables


At 31

August

2015

At 31

August

2014

At 28

February

2015


£000

£000

£000

Amounts due from related party undertakings

42

51

13

Other receivables

3,793

2,542

2,768

Prepayments and accrued income

1,697

1,100

1,064


5,532

3,693

3,845

 



 

10           Trade and other payables


At 31

August

2015

At 31

August

2014

At 28

February

2015


£000

£000

£000

Trade payables

16,660

6,315

8,037

Amounts owed to related party undertakings

20

-

9

Other payables

125

121

90

Accruals and deferred income

15,079

10,775

8,326

Taxes and social security payable

1,202

2,392

1,453


33,086

19,603

17,915

 

11           Interest-bearing loans and borrowings

This note provides information about the contractual terms of the group's interest-bearing loans and borrowings, which are measured at amortised cost.


At 31

August

2015

At 31

August

2014

At 28

February

2015


£000

£000

£000

Current liabilities




Other loans

-

99

-

 

Terms and debt repayment schedule


Currency

Nominal interest rate

Year of

maturity

At 31

August

2015 

At 31

August

2014

At 28

February

2015





£000

£000

£000

Other loan

£

0%

2014

-

99

-



 

12           Share capital and share premium


At 31

August

2015 

At 31

August

2014

At 28

February

2015


£000

£000

£000

Authorised and fully paid




1,123,132,360 Ordinary shares of 1p each

11,231

11,231

11,231

Share premium

551,612

551,591

551,612


562,843

562,822

562,843

 

 

13           Related party transactions

 

Related party transactions during the six months to 31 August 2015 outside of the normal course of business comprise: the purchase of 1,168,641 shares for £331,244 by the Share Incentive Plan Trustee for which the cash was provided by the company; and the gift of £359,000 by Mahmud Kamani to the company for the benefit of employees.

 

 

14           Capital commitments

 

Capital expenditure contracted for at the period end but not incurred amounted to:

 


At 31

August

2015 

At 31

August

2014

At 28

February

2015


£000

£000

£000

Property, plant and equipment

2,988

-

2,622

 

 



 

Appendix - prior period revenues

 

Revenue by period for the six months ended 31 August 2015

 

£'000s

Q1

yoy %

yoy %

CER

Q2

yoy %

yoy %

CER

H1 FY16

yoy %

 

yoy %

CER

Sales

41,322

35%

37%

49,462

35%

40%

90,784

35%

39%

   UK

26,273

27%

27%

32,855

32%

32%

59,128

30%

30%

   ROE

4,943

27%

45%

5,460

13%

26%

10,403

19%

34%

   ROW

10,106

66%

70%

11,147

64%

81%

21,253

65%

75%

 

Revenue by period for the year ending 28 February 2015

 

£'000s

Q1

yoy %

yoy %

CER

Q2

yoy %

yoy %

CER

H1 FY15

yoy %

 

yoy %

CER

Sales

30,659

24%

30%

36,538

37%

41%

67,197

31%

36%

   UK

20,686

44%

44%

24,919

50%

50%

45,605

47%

47%

   ROE

3,891

36%

40%

4,828

50%

61%

8,719

43%

51%

   ROW

6,082

(20)%

(6)%

6,791

0%

8%

12,873

-11%

1%

 

 

£'000s

4m to Dec

yoy %

 

yoy %

CER

2m to Feb

yoy %

 

yoy %

CER

FY15

yoy %

 

yoy %

CER

Sales

50,793

25%

27%

21,861

22%

24%

139,851

27%

31%

   UK

34,179

26%

26%

14,558

13%

13%

94,342

33%

33%

   ROE

6,464

35%

41%

2,903

32%

46%

18,086

39%

47%

   ROW

10,150

19%

24%

4,400

56%

59%

27,423

7%

16%

 

 

CER in this appendix for the year ended 28 February 2015 is calculated using exchange rates prevailing during the year ending 28 February 2015.

Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
IR EAKNPAFSSEFF

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