12^th October 2017

 

 N BROWN GROUP PLC

 

FIRST HALF RESULTS FOR THE 26 WEEKS ENDED 2 SEPTEMBER 2017

 

CONTINUED POSITIVE TRADING MOMENTUM AND MARKET SHARE GAINS

                                                                                      

N Brown Group Plc, the online, specialist fit, fashion retailer today announces results for the 26 weeks to 2 September 2017 (H1 FY17: 26 weeks to 27 August 2016).  

 

£m	26 weeks to 2 September 2017	26 weeks to 27 August 2016	% change year on year
Product revenue	323.5	300.9	+7.5%
Financial Services revenue	129.9	128.5	+1.1%
Group revenue	453.4	429.4	+5.6%
Adjusted EBITDA*	49.0	49.1	-0.2%
Adjusted PBT**	32.2	31.6	+1.8%
Statutory PBT***	(27.6)	21.1	-
Adjusted EPS**	8.77p	8.95p	-2.0%
Statutory EPS***	(7.50p)	5.98p	-
Net debt	305.7	286.7	+6.6%
Interim dividend	5.67p	5.67p	-

* Adjusted EBITDA is defined as operating profit, excluding exceptionals, with depreciation and amortisation added back

** Defined as excluding exceptionals and unrealised FX movement and therefore represents the underlying trading performance

***Includes previously announced exceptional costs of £54.9m, predominantly relating to customer redress for historic general insurance products and store closures

 

First half highlights:

·    Strong Power Brand performance, with revenue +14.3% and active customers +7.5% (excluding Fifty Plus)

o JD Williams brand revenue +12.1%; Fifty Plus -5.2%, migration now complete

o Simply Be +21.0%

o Jacamo +6.7%

o Including the Fifty Plus title, Power Brand revenue +11.5% and active customers +5.9%

·    Ladieswear revenues +9.5% with 90bps increase in market share (size 16+)

·    Continued good progress with brand and retail partnerships:

o Further new third-party brands added including Levi's, Mango, Oasis, Tommy Hilfiger and Ugg

o Today announcing partnerships with Amazon Fashion (Simply Be and Jacamo), Namshi (Simply Be) and Debenhams (Jacamo) to sell capsule collections online

·    Product gross margin -190bps to 54.0%, as expected, driven by FX headwinds

·    Strong online metrics:

o Online revenue +14% yoy; online revenue of Power Brands +21%

o Online penetration 72%, +4ppts yoy

o 76% of all traffic from mobile devices

·    Financial Services performance driven by ongoing good quality of the customer loan book, with Financial Services gross margin +150bps to 56.5% and full year gross margin guidance increased

·    High & Mighty now live on new web platform and Financial Services system. Systems investment programme now run in-house by our IT change team, with a focus on commercial return

 

 

Angela Spindler, Chief Executive, said:

 

"I am very pleased to report continued good trading in the half, with Simply Be the standout performer recording 21% growth. We made significant ladieswear market share gains against what remains a subdued consumer backdrop. In line with other retailers, FX rates represent a headwind and this was particularly felt this half.

 

"Our transformation into a flexible, online retailer continues to benefit all aspects of our business and we are today sharing our three growth levers going forwards. These are continuing to gain share in the UK, growing internationally and working in partnership with other companies to offer even more choice to our customers.

 

"At this early stage in the second half, current trading is on track with our plan and we are focused and well prepared for the peak trading period ahead. We are confident in our ability to deliver sustainable long-term growth and achieve our international ambitions."

 

 

Meeting for analysts and investors:

Management is hosting a presentation for analysts and investors at 10am. Please contact Nbrown@mhpc.com for further information.  A live webcast of the presentation will be available at: www.nbrown.co.uk.

           

 

  For further information: 

N Brown Group
Bethany Barnes (née Hocking), Director of Investor Relations and Corporate Communications	On the day: 07887 536153
Website: www.nbrown.co.uk	Thereafter: 0161 238 1845
MHP Communications
Andrew Jaques / Simon Hockridge / Gina Bell	0203 128 8789
	NBrown@mhpc.com

About N Brown Group:

An expert in fashion that fits and flatters, N Brown is one of the UK's leading online retailers. Our key retail brands are JD Williams, Simply Be and Jacamo. We are all about democratising fashion and are size inclusive, focusing on the needs of underserved customer groups - size 20+ and age 45+. We offer an extensive range of products, predominantly clothing, footwear and homewares, and our Financial Services proposition allows customers to spread the cost of shopping with us.

 

We are headquartered in Manchester where we design, source and create our product offer and we employ over 2,600 people across the UK.

 

Next reporting date

The next reporting date is the Q3 trading statement in January 2018.

 

 

First half overview

We are pleased to report a good first half performance, as we continue to benefit from the transformative changes we made to the business over the past three years.

 

Group revenue was up 5.6% to £453.4m, with Product revenue up 7.5% and Financial Services revenue up 1.1%. Our three Power Brands all delivered a good performance, with Simply Be the standout with revenue growth of 21.0%. Against a subdued backdrop we delivered significant ladieswear market share gains.

 

Product gross margin was 54.0%, down 190bps year on year, as expected, due to the headwind from exchange rate differences year on year affecting the cost of goods sold. As previously guided this impact is first half weighted. Financial Services gross margin was up 150bps, driven by the continuing improvement in the quality of the customer loan book. Our underlying operating costs were well managed, with a good performance in marketing efficiency allowing us to continue to invest in talent. Our operating costs were also impacted by IT double running costs, as guided.

 

Adjusted trading profit before tax was £32.2m, up 1.8% year on year. The statutory loss for the half year of £27.6m relates to previously announced exceptional costs of £54.9m (discussed in more detail below) and largely relate to legacy issues.

 

The Board recognises the importance of the dividend to shareholders, and accordingly is proposing to hold the interim dividend consistent with last year, at 5.67p, as we continue to invest in the business to drive growth.

 

Future growth levers

With the business now transformed into an agile, online retailer, we are today laying out our three growth levers, which will incrementally build going forwards.

 

These are:

·    Gain share in the UK. This will be driven through continual improvement in our customer experience, further development of our product offer and improving our brand cut-through. This growth lever is further driven through increasing the number of third-party brands on our websites, many of which are extended to larger sizes on an exclusive basis, offering more choice to our customers.

·    International expansion. The USA is our first priority, however we also intend to expand to other countries, initially through Global Ship Anywhere technology, which will be live by the end of FY18. In order to achieve our international ambitions we will leverage our current organisational capabilities and embed a global culture throughout our business.

·    Partnerships. This includes selling capsule ranges on other retailers' sites, on both a wholesale and marketplace offering. We also see a significant growth opportunity in influencer marketing, working together with bloggers and opinion formers to improve brand cut-through and further strengthen customer engagement.

 

Our growth will be further enabled by the loyalty Financial Services engenders, our new systems capabilities and our internal talent. Our objective is to continue to invest in the business to grow revenue.

 

 

 

  

First half review

 

KPI performance

 

	H1 FY18	H1 FY17	% change
CUSTOMERS
Active customer accounts	4.4m	4.2m	+5.2%
Power Brand active customer accounts	2.2m	2.1m	+5.9%
Power Brand customers exc. Fifty Plus	1.9m	1.8m	+7.5%
% Growth of our most loyal customers*	+2.4%	-0.4%	+280bps
Customer satisfaction rating**	83.7%	86.4%	-270bps
PRODUCT
Ladieswear market share, size 16+	5.7%	4.8%	+90bps
Menswear market share, chest 44"+	1.2%	1.2%	-
Group returns rate (rolling 12 months)	27.2%	27.0%	+20bps
ONLINE
Online penetration	72%	68%	+4ppts
Online penetration of new customers	80%	76%	+4ppts
Conversion rate	5.3%	5.7%	-40bps
% of traffic from mobile devices	76%	70%	+6ppts
FINANCIAL SERVICES
Customer account arrears rate (>28 days)	9.3%	9.8%	-50bps
Provision rate	10.3%	12.7%	-240bps
New credit recruits (Rollers)***	135k	120k	+13%

 

* Defined as customers who have ordered in each of the last four seasons

**UK Institute of Customer Service survey (UKICS)

***Last six months, rounded figures. Rollers are those customers who roll a credit balance.

Market shares are estimated using internal and Kantar data, 24 weeks ending 27^th August 2017 compared to 24 weeks ending 28^th August 2016.

 

Customer KPI's

 

Our active customer file increased by 5.2% to 4.42m driven by our successful recruitment campaigns during the season. In line with our strategy of driving our Power Brands, we are pleased with the 7.5% increase in these active customers, or 5.9% if Fifty Plus is included. The migration of the Fifty Plus title into JD Williams was successfully completed at the end of the half.

 

Our most loyal customers, being customers who have ordered in each of the last four seasons, increased by an encouraging 2.4%, a continuation of the improving trend reported for the second half of last year. This was due to both the good Power Brand performance together with the improvement in our Traditional segment.

 

At 83.7%, our most recent customer satisfaction score from the UK Institute of Customer Service is 270bps lower than our previous score, however we remain ahead of the sector average. The decline was driven by two factors; firstly, a good season for new customer recruitment, which typically dilutes perception and secondly, a fire at a delivery partner's distribution centre caused significant delivery problems for a small group of customers, having a disproportionate impact on the satisfaction score.

 

Product KPI's

 

Market share in Ladieswear (size 16+) was up 90bps at 5.7%, with significant gains across all age ranges. We also gained share in the size 16-18 segment. Our menswear market share was flat at 1.2%, with gains in the younger age groups. Our market share gains are a direct result of the investments we have made in our design team, our merchandising capabilities and our buying skills.  

 

Our returns rate increased by 20bps to 27.2%. This was driven entirely by mix, with Ladieswear, which has a naturally higher returns rate, outperforming. This dynamic was partially offset by the ongoing increase in the proportion of cash customers.

 

Online KPI's

 

Online revenue was up 14% year on year, and up 21% in our Power Brands. Online accounted for 72% of our sales during the half, up 4ppts year on year. 80% of sales from new customers were generated online, also up 4ppts on H1 FY17.

 

Mobile devices (smartphones and tablets) accounted for 76% of online traffic in the half, up 6ppts. Within this, smartphone sessions increased by 54% and now account for over half of all traffic. The increase in smartphone usage continued to cause our overall conversion rate to decline to 5.3% compared to 5.7% last year. This remains encouragingly above the industry average. The conversion rate for smartphones specifically exceeded 4% for the first time.

 

We are pleased with the performance of our first shopping app for Simply Be. To date we have an average five star rating and our conversion rate is ahead of our expectations. We will continue to improve our app offering in the year ahead.

 

Financial Services KPI's

 

 

We continue to perform well in Financial Services, driven by a continued improvement in the quality of the customer loan book. This resulted in revenue being up 1.1% year on year. Within this, interest payments grew low single digits, whilst non-interest lines were down double-digit. The improvement in the quality of the loan book continues to be reflected in the gross margin performance, which was up 150bps year on year to 56.5%.

 

Credit arrears (>28 days) were 9.3%, down 50bps year-on-year, driven by the improvement in the quality of the book. The provision rate was 10.3%, down 240bps versus last year. As in FY17, this benefitted from the sale of a small amount of high risk payment arrangement debt, which we were able to sell for a slightly better rate than book value. We expect the rate to remain broadly steady for the remainder of the year.

 

We had an encouraging performance recruiting new credit customers who rolled a balance, with an increase of 13% compared to the first half of FY17. This was driven by both the good product revenue performance in the half and encouraging early results from the trial offering a lower APR for qualifying new customers on our three Power Brands. This trial continues ahead of the rollout of full variable APR functionality in 2018.

 

On July 13th we announced a potential customer redress related to historic general insurance products. This was as a result of identifying flaws in certain products which were provided by a third party insurance underwriter and sold by the Group to its customers between 2006 and 2014 and followed a review prompted by an industry-wide request from the FCA that firms ensure that general insurance products and add-ons offer value for their customers. The vast majority of these products were sold to the Group's customers in the period leading up to, and including, 2011. Sales of the relevant products ceased in early 2014. As a result we have incurred an exceptional cost of £40m in the first half, in line with our previous guidance of £35 million to £40 million. We continue to explore mitigating actions to reduce the overall net cost. The cashflow impact of this is forecast to materially occur from FY19 onward, and the Group anticipates funding the full cost of customer redress from existing resources.

 

Performance by brand

 

Revenue, £m	H1 FY18	H1 FY17	Change
JD Williams	81.1	75.8	+6.9%
Simply Be	64.5	53.3	+21.0%
Jacamo	33.5	31.4	+6.7%
Power Brands	179.1	160.5	+11.5%
Secondary Brands	76.3	75.2	+1.4%
Traditional Segment	68.1	65.2	+4.4%
Product total	323.5	300.9	+7.5%
Financial Services	129.9	128.5	+1.1%
Group	453.4	429.4	+5.6%

 

JD Williams

JD Williams' product revenue was £81.1m, up 6.9% yoy. Within this, the JD Williams brand was up 12.1% and Fifty Plus was down 5.2%, as expected. The migration of Fifty Plus is now complete.

 

For the new Autumn Winter season we have refreshed the JD Williams brand proposition, launching JD Williams "The Lifestore". The JD Williams Lifestore brand aims to celebrate the attitudes, interests and ambitions of our female customers and positions the brand as a modern online department store for the 45 - 60 year old woman. Dubbed 'A Colourful Life', the new season advertising campaign stars five female models in a series of life moments including starting a new career, dating and reclaiming the home after children leave the nest, set to an uplifting soundtrack, Woman by the artist Ruelle.

 

To support the brand's new-look and the AW17 ad campaign, we launched The Midster Report 2017: a state of the nation report surveying over 2,000 women aged 45 - 65, looking into body confidence, style and shopping behaviours, as well as women's attitudes towards key life moments such as relationships, dating, healthy living, life adventures and home and work-life balance. We hope our inspiring campaign will challenge traditional preconceptions of women in their 40s and 50s, redefining what it means to be 'middle aged', or, 'Midster', as we prefer to describe them.

 

Simply Be is the go-to online brand for 25-45 year old confident curvy women. Simply Be had a very good performance during the half, with product revenue up 21.0%. Our #WeAreCurves campaign resonated strongly with customers, and we have built on the campaign further for the season ahead.

 

As part of our continued championing of size inclusivity and body confidence, we recently held a Curve Catwalk on the eve of London Fashion Week. This was led by models and influencers including Tess Holliday, Hayley Hasselhoff and Felicity Hayward. The show was shoppable and streamed on the Simply Be site, backed by significant social media activity and had a total media reach of over 10million people.

 

Jacamo caters for 25-45 year old men of all body shapes and sizes, from small to 5XL. Jacamo product revenue was up 6.7% with active customers growing at almost double this rate.

 

Our delivery subscription offering Jacamo Unlimited, launched in February 2017, has been very successful, with a double-digit increase in both order frequency and net sales per customer. We will be extending a delivery subscription offer to other brands in the future.

 

Alongside our successful partnership with brand ambassador Freddie Flintoff, we also teamed up with Tom Morgan from television show The Undateables to promote our Jacamo own-brand summer range, with Tom posing for a series of untouched images to encourage all men to be comfortable in their own skin.

 

Secondary brands revenue increased by 1.4%. Within this, Fashion World and Marisota both achieved good performances. Figleaves saw a revenue decline, in line with our expectations, as the new management team restructured the business and optimised our marketing approach. Going forwards we are now in a position to drive growth in this business. High & Mighty revenue declined year on year as we reduced marketing spend ahead of the new site go-live.

 

The Traditional segment recorded revenue growth of 4.4% year on year as the actions we took to address performance worked well. Looking forward, our strategy in Traditional remains unchanged, that is, to hold overall revenues broadly flat through gaining share in this declining market.

 

Systems investment programme

 

The new platform is now live on the High & Mighty and USA sites, for High & Mighty this includes our new Financial Services system. As previously described, the programme has now been substantially scaled down, reducing costs, and our in-house IT change team are now delivering enhanced functionality through fortnightly releases. Our approach going forward will be to prioritise and focus on the developments that deliver the highest returns, such as Global Ship Anywhere and mobile Apps. Based on priorities, the timescale for migrating other brands onto the new platform is expected to commence in Q2 FY18. We will optimise the timing of these migrations to minimize commercial disruption.

 

International

 

USA revenue was £8.1m, up 6.1% year on year (down 4.4% in constant currency terms), as expected. We stepped up our marketing investment towards the end of the period in order to drive new customer recruitment going forwards.

 

 

Ireland delivered revenues of £8.5m, up 17.3% year on year, or 7.4% in constant currency terms.

 

Stores

In our first quarter trading statement we announced the closure of five dual fascia Simply Be and Jacamo stores as a result of weak high-street footfall, both current and predicted, together with significant future business rate increases for some stores. Together these five stores contributed £5.0m revenue but accounted for the entire £2.0m operating loss of our store estate in FY17. The store closures have now been completed, effective end of August, and have resulted in an exceptional cost of £13.8m in line with our previous guidance.

 

Overall, revenue from our store estate was £10.6m (H1 FY17: £11.5m). As at the end of the first half we had 18 stores open, split 10 dual Simply Be and Jacamo stores (H1 FY17: 15), and eight High & Mighty stores (H1 FY17: nine).

 

FX sensitivity

For FY18 we expect our annual purchases, net of international revenues, to be c.$125m, on which we have a hedging strategy in place, together with c.£130m, where we face indirect cost pressures due to the depreciation of sterling.

 

Looking at our dollar exposure specifically, we are 100% hedged for the current financial year at a blended rate of $/£1.29. This compares to a blended hedged rate of $/£1.41 in FY17.

 

For FY19 we have, to date, hedged 56% of our net purchases at a blended rate of $/£1.30. At a rate of $/£1.30, and before any mitigating actions, this would result in a c.£1m PBT tailwind compared to FY18. Every 5 cents move from this rate in our unhedged position would result in a PBT sensitivity of c.£1.7m.

 

 

FINANCIAL RESULTS

 

Revenue performance

 

Revenue performance by quarter was as follows:

 

% yoy growth	Q1 (13wks)	Q2 (13wks)
Product	+10.2%	+4.9%
Financial Services	-4.9%	+7.2%
Group Revenue	+5.6%	+5.6%

 

The Q2 product performance is impacted by the comparable figures in the prior year, with a 4ppts tougher comparative in Q2 versus Q1. 

 

Revenue by category was as follows:

 

£m	H1 FY18	H1 FY17	Change
Ladieswear	143.4	130.9	+9.5%
Menswear	44.9	42.4	+5.9%
Footwear & Accessories	38.7	34.2	+13.2%
Home & Gift	96.5	93.4	+3.3%
Product total	323.5	300.9	+7.5%

 

 

Gross margin

 

Product

Product cost of goods sold (COGS) were £148.7m, compared to £132.8m in H1 FY17. Product gross margin was 54.0%, down 190bps yoy, in line with our expectations. This was entirely due to the impact of FX rates year on year following the EU referendum. This impact was partially offset by the benefits of lower promotions and better underlying input prices.

 

Financial Services

Our gross bad debt charge was £54.3m (H1 FY17: £55.1m). This bad debt charge, together with a small number of other financial services costs, resulted in a Financial Services gross margin of 56.5%, up 150bps year on year. This increase in gross margin is predominantly the result of continued improvement in the quality of the customer loan book, together with the sale of some high risk payment arrangement debt at a slightly better rate than book value.

 

Operating performance

 

£m	H1 FY18	H1 FY17	Change
Product revenue	323.5	300.9	+7.5%
Financial Services revenue	129.9	128.5	+1.1%
Group Revenue	453.4	429.4	+5.6%
Product gross profit	174.8	168.1	+4.0%
Product gross margin	54.0%	55.9%	-190bps
Financial Services gross profit	73.5	70.7	+3.9%
Financial Services gross margin	56.5%	55.0%	+150bps
Group Gross Profit	248.3	238.8	+4.0%
Group Gross Margin %	54.8%	55.6%	-80bps
Warehouse & fulfilment	(42.5)	(38.2)	+11.3%
Marketing & production	(88.2)	(87.5)	+0.8%
Admin & payroll	(68.6)	(64.0)	+7.0%
Total operating costs	(199.3)	(189.7)	+4.8%
Adjusted EBITDA*	49.0	49.1	-0.2%
Adjusted EBITDA* margin	10.8%	11.4%	-60bps
Depreciation & amortisation	(12.9)	(13.6)	-4.9%
Adjusted Operating Profit**	36.1	35.5	+1.6%
Adjusted Operating Margin**	8.0%	8.3%	-30bps
Net Finance costs	(3.9)	(3.9)	+0.3%
Adjusted PBT**	32.2	31.6	+1.8%
Exceptional items	(54.9)	(10.2)
Unrealised FX movement	(4.9)	(0.3)
Statutory PBT	(27.6)	21.1

* Adjusted EBITDA is defined as operating profit, excluding exceptionals, with depreciation and amortisation added back

**Defined as excluding exceptionals and unrealised FX movement and therefore represents the underlying trading performance

 

Warehouse and fulfilment costs increased by 11.3% to £42.5m. This was driven predominantly by volumes, which were up 7% year on year, together inflationary pressures in fuel and labour, and further improvements to our delivery offering, partially offset by continued efficiencies.

 

Marketing costs were up 0.8% year on year, significantly below the rate of product revenue growth as we drove efficiency. Admin and payroll costs increased by 7.0%, due to double running IT costs, as previously guided, together with our continued investment in recruiting and retaining great talent.

 

EBITDA declined marginally to £49.0m. Depreciation and Amortisation decreased by 4.9% due to timing factors. Our guidance for the full year is £28m to £29m, implying a step up in the second half. Overall, operating profit before exceptional items was £36.1m, up 1.6% year on year.

 

Net finance costs

Net finance costs were £3.9m, flat on the H1 FY17, as a result of lower funding costs on our securitisation facility offset by a slight increase in net debt.

 

Exceptional items

Exceptional costs totalled £54.9m and are in line with prior announcements. The split of these costs is shown below.

 

£m	H1 FY18
Customer redress for historic insurance products	40.0
Store closures	13.8
External costs related to taxation matters	1.1
Total exceptional costs	54.9

 

The customer redress for historic insurance products is discussed above.

 

The store closure exceptional cost was announced as part of our Q1 trading statement. Effective end of August we closed five Simply Be and Jacamo dual-fascia stores. This decision took into account weak high-street footfall, both current and predicted, together with significant future business rate increases for some stores. Together, these five stores contributed £5.0m revenue but accounted for the entire £2.0m operating loss of our store estate in FY17.

 

Taxation

The effective underlying rate of corporation tax is 23.2% (H1 FY17: 20.0%). The overall tax charge was a credit of £6.4m (H1 FY17: £4.2m charge), as we recognised a tax credit due to the loss in the period.

 

Earnings per share

Earnings per share from continuing operations was a loss of 7.50p (H1 FY17: 5.98p). Adjusted earnings per share from continuing operations were 8.77p (H1 FY17: 8.95p).

 

Dividends

The Board recognises the importance of the dividend to shareholders, and accordingly is proposing to hold the interim dividend consistent with last year, at 5.67p, as we continue to invest in the business to drive growth.

 

Balance Sheet and Cash Flow

Capital expenditure was £21.8m (H1 FY17: £19.3m). Inventory levels at the period end were up 5.9%, lower than the product revenue growth rate, to £104.7m (H1 FY17: £99.0m).

 

Gross trade receivables increased by 1.5% to £611.5m (H1 FY17: £601.8m). The provision declined from £76.4m to £62.8m, driven both by the sale of some high risk payment arrangement debt at a slightly better rate than book value, along with ongoing progress in reducing overall debtor risk. These two factors were partially offset by an increase in new credit recruits and average balance growth.

 

The group's defined benefit pension scheme has a surplus of £8.7m (H1 FY17: £0.5m surplus). This surplus is broadly in line with the year-end figure, with the first half of last year being impacted by weaker bond rates as a result of the EU referendum.

 

Net cash generated from operations (excluding taxation) was £43.8m compared to £59.2m last year. After funding capital expenditure, finance costs, taxation and dividends, net debt increased from £290.9m to £305.7m (H1 FY17: £286.7m), in line with our expectations. The £548.7m net customer loan book significantly exceeds this net debt figure.  

 

 

Unaudited condensed consolidated income statement

 

		26 weeks to 02-Sep-17 Before		26 weeks to 02-Sep-17		26 weeks to 02-Sep-17		26 weeks to 27-Aug-16 Before			26 weeks to 27-Aug-16		26 weeks to 27-Aug-16				53 weeks to 04-Mar-17
		Exceptional		Exceptional				Exceptional			Exceptional
		items		items (note 5)		Total		items			items (note 5)		Total				Total
Continuing operations	Note	£m		£m		£m		£m			£m		£m				£m
Revenue	4	453.4		-		453.4		429.4			-		429.4				900.7
Operating (loss) / profit	4	36.1		(54.9)		(18.8)		35.5			(10.2)		25.3				65.1
Finance costs		(3.9)		-		(3.9)		(3.9)			-		(3.9)				(7.7)
(Loss) / Profit before taxation and fair value adjustments to financial instruments		32.2		(54.9)		(22.7)		31.6			(10.2)		21.4				57.4
Fair value adjustments to financial instruments	6	(4.9)		-		(4.9)		(0.3)			-			(0.3)			0.2
(Loss) / Profit before taxation		27.3		(54.9)		(27.6)		31.3			(10.2)			21.1			57.6
Taxation	7	(6.3)		12.7		6.4		(6.2)			2.0			(4.2)			(13.3)
(Loss) / Profit for the year		21.0		(42.2)		(21.2)		25.1			(8.2)			16.9			44.3
(Loss) / Profit attributable to equity holders of the parent		21.0		(42.2)		(21.2)		25.1			(8.2)			16.9			44.3
Loss / earnings per share	8
Basic						(7.50)	p							5.98		p	15.67p
Diluted						(7.50)	p							5.98		p	15.66p