TIDMJD.
RNS Number : 7826L
JD Sports Fashion Plc
10 September 2019
10 September 2019
JD SPORTS FASHION PLC
INTERIM RESULTS
FOR THE TWENTY SIX WEEKS TO 3 AUGUST 2019
JD Sports Fashion Plc (the "Group"), the leading retailer of
sports, fashion and outdoor brands, today announces its interim
results for the 26 weeks ended 3 August 2019 (comparative figures
are shown for the 26 week period ended 4 August 2018).
Impact of IFRS 16 Transition 2019 2018
Proforma Adjustment IFRS 16 IAS 17
IAS 17
GBPm GBPm GBPm GBPm
Revenue 2,721.2 - 2,721.2 1,846.3
Gross profit % 46.9% - 46.9% 48.2%
EBITDA* 235.2 167.7 402.9 171.8
Depreciation / amortisation (65.3) (137.8) (203.1) (47.9)
-------------- --------------- -------- --------
Operating profit (before
exceptional items) 169.9 29.9 199.8 123.9
Net interest expense (3.7) (37.5) (41.2) (2.0)
-------------- ---------------
Profit before tax and exceptional
items* 166.2 (7.6) 158.6 121.9
Exceptional items (28.7) - (28.7) -
-------------- --------------- -------- --------
Profit before tax 137.5 (7.6) 129.9 121.9
-------------- ---------------
Basic earnings per ordinary
share 10.46p (0.79p) 9.67p 10.05p
Adjusted earnings per ordinary
share 13.36p (0.79p) 12.57p 10.05p
Interim dividend payable
per ordinary share 0.28p - 0.28p 0.27p
Net cash / (debt) at period
end (a) 118.1 - 118.1 (85.1)
-------------- ---------------
a) Net cash consists of cash and cash equivalents together with
interest-bearing loans and borrowings
b) Throughout this release '*' indicates first instance of a
term defined and explained in the Glossary at the end of these
interim results
Group Highlights
-- Group revenue increased by 47% to GBP2,721.2 million (2018:
GBP1,846.3 million) with strong total like for like sales* growth
in global Sports Fashion fascias of 12% including highly
encouraging growth of more than 10% in the core* UK and Ireland
Sports fascias
-- Another record result for the half year with Group EBITDA on
a comparable accounting basis increased by 37% to GBP235.2 million
(2018: GBP171.8 million) and profit before tax and exceptional
items on a comparable accounting basis increasing by 36% to
GBP166.2 million (2018: GBP121.9 million)
-- Reported profit before tax increased by 6.6% to GBP129.9
million (2018: GBP121.9 million), after net adjustments of GBP7.6
million following transition to IFRS 16 'Leases' and exceptional
items of GBP28.7 million
-- International development of JD continues with:
a) Net increase of 23 JD stores across mainland Europe
b) Net increase of seven JD stores in the Asia Pacific region
c) Six JD stores now trading in the United States with the
physical stores now complemented by a trading website
-- Encouraging performance from the Finish Line fascia in the
United States with operating profit before exceptional items on a
comparable accounting basis of GBP34.7 million (2018: GBP4.8
million for the seven weeks post acquisition) with like for like
sales growth for the proforma 26 week period across the combined
Finish Line branded stores and website of 5%
-- Key financial information of the two business segments is tabulated below:
Period to 3 August 2019
Sports Fashion Outdoor Unall(2) Total
IFRS 16 IAS 17 IFRS 16 IAS 17 IFRS 16 IAS 17
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 2,517.1 2,517.1 204.1 204.1 - 2,721.2 2,721.2
-------- -------- -------- ------- --------- -------- --------
Gross profit
% 47.4% 47.4% 40.6% 40.6% - 46.9% 46.9%
-------- -------- -------- ------- --------- -------- --------
EBITDA 398.5 246.7 4.4 (11.5) - 402.9 235.2
Depreciation (179.9) (56.2) (18.8) (4.7) - (198.7) (60.9)
Amortisation(1) (2.4) (2.4) (2.0) (2.0) - (4.4) (4.4)
-------- -------- -------- ------- --------- -------- --------
Operating profit
/ (loss) 216.2 188.1 (16.4) (18.2) - 199.8 169.9
Net interest
expense (33.8) - (3.7) - (3.7) (41.2) (3.7)
-------- -------- -------- ------- --------- -------- --------
Profit/ (loss)
before tax and
exceptional items 182.4 188.1 (20.1) (18.2) (3.7) 158.6 166.2
Exceptional items (3.6) (3.6) (25.1) (25.1) - (28.7) (28.7)
-------- -------- -------- ------- --------- -------- --------
Profit/ (loss)
before tax 178.8 184.5 (45.2) (43.3) (3.7) 129.9 137.5
-------- -------- -------- ------- --------- -------- --------
(1) This is a non-trading charge relating to the amortisation of
various fascia names and brand names which arise consequent to the
accounting of acquisitions made over a number of years.
(2) The Group consider that net funding costs are cross
divisional in nature and cannot be allocated between the segments
on a meaningful basis.
Period to 4 August 2018
Sports Fashion Outdoor Unall(2) Total
IAS 17 IAS 17 IAS IAS 17
17
GBPm GBPm GBPm GBPm
Revenue 1,638.1 208.2 - 1,846.3
--------------- -------- --------- --------
Gross profit % 48.9% 43.1% - 48.2%
--------------- -------- --------- --------
EBITDA 168.9 2.9 - 171.8
Depreciation (39.1) (4.5) - (43.6)
Amortisation(1) (2.1) (2.2) - (4.3)
--------------- -------- --------- --------
Operating profit
/ (loss) 127.7 (3.8) - 123.9
Net interest expense - - (2.0) (2.0)
--------------- -------- --------- --------
Profit / (loss) before
tax and exceptional
items 127.7 (3.8) (2.0) 121.9
Exceptional items - - - -
--------------- -------- --------- --------
Profit/ (loss) before
tax 127.7 (3.8) (2.0) 121.9
--------------- -------- --------- --------
-- Result for the 26 weeks ended 3 August 2019 reflects the
application of IFRS 16 'Leases' for the first time. The Group has
adopted the modified retrospective transition approach to this new
accounting standard with the result to 4 August 2018, which
reflected the application of IAS 17 'Leases', not requiring
restatement. On a consistent accounting basis, the proforma
headline profit before tax and exceptional items to 3 August 2019
under IAS 17 'Leases' would have been GBP166.2 million being GBP7.6
million higher than that reported under IFRS 16 'Leases'
Peter Cowgill, Executive Chairman, said:
"I am very pleased to report that this has been another period
of significant progress for the Group with revenue growing by 47%
to GBP2,721.2 million (2018: GBP1,846.3 million) and the headline
profit before tax and exceptional items increasing by a further 30%
to GBP158.6 million (2018: GBP121.9 million).
"Against a backdrop of widely reported retail challenges in the
UK, it is extremely encouraging that JD has delivered like for like
sales growth of more than 10% with an improved conversion
reflecting consumers' increasingly positive reaction to our
elevated multichannel proposition where a unique and constantly
evolving sports and fashion premium brand offer is presented in a
vibrant retail theatre with innovative digital technology. JD also
continues to gain momentum in Europe with a further double digit
increase in total like for like sales and a net increase of 23
stores in the period.
"We are pleased by the continued positive trends to date in the
second half in Sports Fashion whilst recognising the tougher
comparatives ahead.
"Notwithstanding the ongoing uncertainty with regards to Brexit,
the Board is confident that, without the impact from the transition
to IFRS 16, the Group would have been on track to deliver headline
profit before tax for the full year at the top end of market
expectations which currently range from GBP402 million to GBP424
million. However, after adjusting for the impact of the transition
to IFRS 16, we would expect to deliver results at the mid-point of
expectations. We remain encouraged by our prospects for further
growth."
Enquiries:
JD Sports Fashion Plc Tel: 0161 767 1000
Peter Cowgill, Executive Chairman
Neil Greenhalgh, Chief Financial
Officer
MHP Communications Tel: 0203 128 8193
Andrew Jaques
Giles Robinson
Nessyah Hart
Charles Hirst
Executive Chairman's Statement
Introduction
I am very pleased to report that this has been another period of
significant progress for the Group with revenue growing by 47% to
GBP2,721.2 million (2018: GBP1,846.3 million) and the headline
profit before tax and exceptional items increasing by a further 30%
to GBP158.6 million (2018: GBP121.9 million).
The result for the 26 weeks ended 3 August 2019 reflects the
application of IFRS 16 'Leases' for the first time. The Group has
adopted the modified retrospective transition approach to this new
accounting standard with the result to 4 August 2018, which
reflected the application of IAS 17 'Leases', not requiring
restatement. On a consistent accounting basis, the proforma
headline profit before tax and exceptional items to 3 August 2019
under IAS 17 'Leases' would have been GBP166.2 million being GBP7.6
million higher than that reported under IFRS 16 'Leases'.
This result includes a contribution of GBP35.7 million (GBP34.7
million on a proforma basis under IAS 17 'Leases') from the
combined Finish Line and JD business in the United States (2018:
GBP4.8 million for the seven week period post acquisition).
JD (UK and Republic of Ireland)
Against a backdrop of widely reported retail challenges in the
UK, it is extremely encouraging that JD has delivered like for like
sales growth of more than 10% with an improved conversion
reflecting consumers' increasingly positive reaction to our
elevated multichannel proposition where a unique and constantly
evolving sports and fashion premium brand offer is presented in a
vibrant retail theatre with innovative digital technology. We
ensure that the JD proposition retains its dynamic appeal and
forges deeper connection with its consumers through the continual
investment in our physical store portfolio, digital platforms and
creative marketing. We also recognise the importance of having
flexibility and relevance in our third party brand line up with an
increasing number of premium brands attracted to JD's market
leading proposition.
We are very aware of the financial benefit that other retailers
appear to get when they downsize their estates and, whilst we have
no plans to fundamentally alter the size of the JD store network in
the UK at this time, we continue to seek fairness and flexibility
in the terms of our leases.
JD (International)
The JD fascia has also made further significant progress in its
international markets with a net increase of 31 stores in the first
half:
-- Europe: JD continues to gain momentum with a further double
digit increase in total like for like sales and a net increase of
23 stores in the period with new stores in most of our existing
territories together with our first JD store in Austria. The new
stores in the period included the conversion of six former
Chausport stores in France in locations where we believe that the
JD proposition is more appropriate to the particular local market.
The average size of the new stores opened in the period was 3,900
sqft (2018: 3,200 sqft) with the larger footprint a reflection of
our increased confidence of consumers' appetite for the full JD
proposition in these markets. JD now has a presence in 11 countries
in mainland Europe and we are increasingly confident that JD is
developing the same emotional resonance with consumers in Europe as
it is in its core UK and Ireland market. We would expect to open a
similar number of stores across Europe in the second half. We have
also now committed on a flagship store in the centre of Paris on
the Rue De Rivoli with fit out commencing in the new year.
-- Asia Pacific: There was a net increase of seven stores in the
period with additional stores in Malaysia, Australia and Singapore.
The relatively slower pace of openings in the period is purely a
timing issue, reflecting the availability of property, and we would
still expect to open more than 15 stores across the region over the
full year. We continue to make learnings in all of our territories
which we use to further refine our integrated digital proposition
and, with the ongoing support of our key brand partners, we remain
confident that further opportunities will prevail to expand the
reach of our exciting and dynamic proposition in the region.
Subsequent to the period end we disposed of the legacy Glue retail
business in Australia which was becoming an increasing distraction.
We do not believe that there will be any adverse impact on the
development of JD in the country which is now well established with
its own identity and operational infrastructure.
-- United States: We have now opened our sixth JD store in the
United States after the conversion of the former Finish Line store
in the Mall of America at Bloomington, Minnesota. These JD stores
now have digital support following the launch of a trading website
in May. These initial stores were deliberately chosen as we
believed they would give us the greatest width of intelligence both
geographically and demographically thereby helping us to shape our
future strategy. We may convert an additional small number of
Finish Line stores to JD in the second half to expand our market
knowledge further although this will depend on receiving the
necessary local planning consents in time to enable the conversions
to be open ahead of the key holiday period. We anticipate further
significant developments for JD in 2020 as we begin to open stores
organically in the major metropolitan areas with work starting
recently on the fit out of a flagship store in Times Square, New
York which is currently scheduled to open in Spring 2020. We remain
encouraged by the early performance of the apparel ranges which are
now becoming increasingly representative of the JD offer.
Other Fascias
Away from JD, there are positive developments to report in our
other Sports Fashion businesses:
-- Premium brand fashion (UK): We recognise the important role
of our premium brand fashion businesses in elevating our offer to
consumers and we continue to invest in both the stores and
multichannel infrastructure to further enhance the consumer and
brand experience. We have also completed a number of small
selective complementary acquisitions in this area in the period to
expand our geographical presence and provide us with additional
brand authority. These include the acquisition of the intellectual
property and trading assets relating to the highly regarded Pretty
Green brand from its administrator for a total consideration of
GBP1.5 million. This business is now more appropriately scaled with
one flagship store in Manchester and a trading website
complementing its wholesale operations.
-- Gyms (UK): Our Gyms business continues to increase in
critical mass with a membership of approximately 120,000 members
across 25 gyms. Works are ongoing at a further four sites with
openings scheduled later in the year.
-- Sprinter & Sport Zone (Iberia): The process to integrate
the Sport Zone businesses in Portugal and the Canary Islands into
the Sprinter infrastructure is nearing completion. It remains our
intention to retain the Sport Zone banner in Portugal although, as
with Spain, we are transferring the stores in the Canary Islands to
the Sprinter name with this process expected to be complete before
the end of the year. We firmly believe that the rapid integration
of Sport Zone into the Sprinter infrastructure has left the Sport
Zone business well positioned for future positive development.
-- Finish Line (United States): We continue to believe that
there is an opportunity to deliver a sustained improvement in the
performance of the Finish Line business over the longer term with a
focus on four key pillars:
1. Improving sales densities: We have now commenced a trial
which is focussed on driving additional sales of apparel in stores
through extended ranges. This project, which requires a modest
capital investment in stores, is supported by the secondment of a
number of key commercial personnel from the core JD business. We
are encouraged by the initial performance of these new ranges which
are now in more than 20 stores.
2. Improving product margins: We continue to support the Finish
Line management team with a focus on buying disciplines and the
intense management of markdown, leveraging from JD's strength and
experience in these key commercial areas. We are pleased with the
early progress in this area with product margins for the first half
0.5% ahead of the proforma equivalent period in the prior year.
3. Exiting underperforming stores: We have exited a further 10
Finish Line stores (excluding Mall of America which was transferred
to JD) and 29 Macy's concessions in the first half. We would expect
a similar number of Finish Line store closures in the second
half.
4. Appropriate scaling of central overheads: We continue to work
with the Finish Line management team on various initiatives
including incentive schemes which are self-funded through growth in
profitability.
Footasylum
In April we acquired the Footasylum business for cash
consideration of GBP86.0 million with the Group also assuming net
debt of approximately GBP7.8 million. At acquisition, Footasylum
had 69 stores across the UK complemented by a highly regarded
trading website which contributed approximately 30% of sales. This
was a compelling acquisition for a number of reasons:
-- Footasylum has a complementary product range and customer
demographic to the Group's core JD fascia with its casual fashion
proposition being more fashion-led and appealing to an older
consumer.
-- Footasylum offers an attractive and creative range of
in-house / own label brands which will bring additional
differentiation to the Group's brand portfolio. We believe that
there will be opportunities to exploit these new brands
internationally by leveraging from JD's extensive international
reach.
-- Footasylum sells its in-house / own label brands on a
wholesale basis and we believe there will be learnings which we can
apply in expanding the wholesale business across the wider
Group.
The acquisition of Footasylum is currently under review by the
Competition and Markets Authority which has issued the Group with
an enforcement order which obliges us to operate the Footasylum
business separately until they have completed their review. We are
complying and assisting fully with this process in order that it
can be completed in the most timely and efficient manner.
Outdoor
This has been another challenging period for our Outdoor
businesses overall and, whilst we are pleased with the positive
trading and improved result in the Blacks and Tiso businesses,
these gains have been overshadowed by a significant loss in the
larger Go Outdoors business.
The Go Outdoors business has historically worked with a store
replenishment model where branded suppliers delivered goods direct
to store. We believed that this model resulted in an inflexible
supply chain with weak product availability in stores at times of
high consumer demand and that the stores would therefore be better
served, and the consumer experience enhanced, with a central
warehousing model for stock combined with a migration onto the
Group's IT platforms, leveraging from JD's highly successful
replenishment methodologies. We took possession of a 353,000 sqft
facility in Middlewich, Cheshire in February with replenishment
commencing from this facility, which is operated by a third party,
at the end of April. Fulfilment of online orders has also now been
transferred to this site.
There were a number of initial challenges arising from the
execution of this change which had a significant impact on
availability, replenishment to stores and online fulfilment in the
key trading period of May and June. We have now resolved many of
the issues and are more widely reassured over the longer term
potential for Go Outdoors after the business delivered like for
like sales growth in July.
We maintain our belief that this new flexible supply chain
model, where we have greater control over the replenishment, will
bring longer term financial benefits to Go Outdoors. Furthermore,
we remain convinced that greater integration of the Outdoor
businesses, with Blacks and Go Outdoors having access to one pool
of stock with common merchandising systems will also provide the
most robust and effective platform for the long term development of
our Outdoor businesses. However, we believe it is prudent to allow
time for operations in the new facility to further stabilise and so
we have delayed the transfer of the Blacks stocks from Kingsway to
Middlewich until early 2020.
Kingsway Warehouse Facility
Works to install the additional automation equipment in the
352,000 sqft extension at our primary Kingsway warehouse have now
been completed. Commissioning of the site has now commenced and
will be done in phases through the Autumn with this process
expected to be substantially complete ahead of the peak trading
period.
The disruption to operations which we experienced in the second
half of the prior year has continued throughout the first half
necessitating further frequent changes in operating procedures and
additional levels of manual process. We have now been able to start
reducing the level of manual working as we bring the site into
operational use although, as a contingency, we will retain an
element of this additional trained labour through the peak trading
period.
Elsewhere, we have now commissioned a new operational section in
Kingsway which will offer a more bespoke packing and fulfilment
service to the trading websites of our premium fashion businesses.
Whilst there is some additional cost associated with this, we
believe that it is justified as it further elevates the experience
to our premium fashion consumers and brand partners.
Sports Fashion
Sports Fashion has had another exceptional first half with
profit before tax and exceptional items increasing by a further 43%
to GBP182.4 million (2018: GBP127.7 million). On a consistent
accounting basis, the proforma headline profit before tax and
exceptional items to 3 August 2019 under IAS 17 'Leases' would have
been GBP188.1 million being GBP5.7 million higher than that
reported under IFRS 16 'Leases'.
We are delighted with trading in the first half with like for
like store sales across our global Sports Fashion fascias
(excluding Finish Line) increasing by 9% and total like for like
sales, including online, growing by 12%. All regions for the JD
fascia delivered significant like for like growth although we are
particularly encouraged by the extremely robust performance in our
core UK and Ireland market where total like for like sales
(including online) grew by more than 10%. This was an excellent
performance given the growth over the previous five years.
Elsewhere, JD continues to develop positively in its established
European markets with increased investment in marketing helping to
drive a further significant double digit increase in total like for
like sales. Further afield, the combined JD businesses in the Asia
Pacific region delivered total like for like growth of just under
10% although the earlier timing of Chinese New Year relative to
last year did impact on the performance of the business in Malaysia
in the early part of the period. We also continue to address some
challenges on our operational execution in South Korea with our
joint venture partners and, whilst these have had an adverse impact
on the short term performance in this particular territory, we
believe that the learnings will be useful when we are considering
opportunities to expand the JD fascia into other geographies in the
Asia Pacific region.
The combined Finish Line and JD business in the United States
contributed GBP35.7 million (GBP34.7 million on a proforma basis
under IAS 17 'Leases') in its first full half year as part of the
Group (2018: GBP4.8 million for the seven week period post
acquisition). On a proforma basis, compared to the same 26 week
period in the prior year, total like for like sales for the Finish
Line own stores grew by 3% which was complemented by a further
pleasing double digit growth online as the business continues to
exploit its clear strength in this area. We are also satisfied with
the progression on gross margin for the period to 42.9% (proforma
26 weeks to 3 August 2018: 42.4%) as we start to see the benefits
of the work to bring enhanced rigour to the buying and
merchandising disciplines. Overall, we remain pleased with our
acquisition of this business and are confident that the business,
which remains under the joint leadership of the Finish Line CFO and
JD's Global Retail Director, has a clear strategy and is well
positioned for profitable development.
As anticipated, our overall results in Iberia have been impacted
by a further loss in the Sport Zone business of GBP4.1 million
(GBP3.9 million on a proforma basis under IAS 17 'Leases') (2018:
GBP9.5 million) as we continued with the process to clear excess
legacy stocks aggressively ahead of the transfer of operations to
Sprinter's facility in Alicante.
The overall gross margin in Sports Fashion reduced to 47.4%
(2018: 48.9%) largely from the inclusion of the lower margin Finish
Line business for the full period. Whilst a high proportion of
exclusivity and newness in the offer of the core JD fascia clearly
helps to maintain margins, we fully recognise that the inventory
must still be turned regularly. We will continue to drive this by
managing the sellthroughs of ranges intensely with promotional
activity that is selective, specific and relevant fully utilising
the reach provided by our international store estate and portfolio
of trading websites.
Outdoor
Our Outdoor businesses have had mixed trading in the first half
of the year.
Extremes of weather continue to provide both opportunities and
challenges to trading whether they be in the current period or when
measured relative to the prior year. In this regard, we anticipated
a challenging first quarter with tough comparatives following our
exploitation of the favourable trading conditions offered by a more
severe winter in the previous year. Ultimately, we exited the first
quarter with a composite total like for like sales decline across
stores and online of 6% (2018: Q1 total LFL growth +7%).
Trading in the Blacks and Tiso businesses then improved
significantly through the second quarter. These businesses operate
out of smaller space than Go Outdoors with less reliance on camping
to drive footfall and sales in the summer season. Consequently, the
cooler and somewhat wetter summer through the UK provided more
opportunities for positive trading compared to the hot and dry
weather of the prior year with both of these businesses ending the
half year period with a total like for like sales growth across
stores and online of 3%.
Go Outdoors had a challenging start to the second quarter with a
significant double digit decline in total like for like sales in
May consequent to the integration issues associated with the
transition of fulfilment to the new warehouse at Middlewich. We are
confident that the Go Outdoors business has retained the loyalty of
its customers through these short term difficulties and that the
business still provides people with the proposition and inspiration
to make the most of their time outdoors. We are encouraged with the
positive performance in July.
On a consistent accounting basis, there was a proforma EBITDA
loss of GBP11.5 million (2018: profit of GBP2.9 million). However,
within this, we are pleased that the smaller Blacks and Tiso
businesses have both delivered small improvements in their first
half EBITDA.
The overall loss before tax and exceptional items increased to
GBP20.1 million (2018: GBP3.8 million). On a consistent accounting
basis, the proforma headline loss before tax and exceptional items
to 3 August 2019 under IAS 17 'Leases' would have been GBP18.2
million.
In the period, we recognised an exceptional charge of GBP20.7
million (2018: GBPnil) in relation to a partial impairment of the
goodwill arising in previous years on the acquisition of the Go
Outdoors business. We also recognised a charge of GBP4.4 million
(2018: GBPnil) for costs arising on the integration and
consolidation of the principal IT systems, warehousing and other
infrastructure in Go Outdoors.
Group Performance
Revenue and Gross Margin
Total revenue increased by 47.4% in the period to GBP2,721.2
million (2018: GBP1,846.3 million). This includes GBP725.2 million
of revenue from Finish Line and JD in the United States (2018:
GBP180.0 million for the seven week period post acquisition). Like
for like store sales for the period across our global Group
fascias, excluding Finish Line but including the more established
businesses in Europe, Asia Pacific and Outdoor, increased by 7%
with the overall like for like growth for the same fascias,
including online, increasing by 10%.
Total gross margin in the period of 46.9% was 1.3% lower than
the prior year (2018: 48.2%). This primarily reflects the inclusion
of the lower margin Finish Line business for the whole period.
There was also a reversal of prior year non-cash fair value gains
on forward contracts. Commercially, we maintain our strong focus on
minimising discounting in the principal Sports Fashion businesses
with an intensely analytical process to reviewing product
performance.
Profit Before Tax
Profit before tax and exceptional items increased by 30.1% to
GBP158.6 million (2018: GBP121.9 million). On a consistent
accounting basis, the proforma headline profit before tax and
exceptional items to 3 August 2019 under IAS 17 'Leases' would have
been GBP166.2 million.
The profit before tax and exceptional items includes GBP35.7
million (GBP34.7 million on a proforma basis under IAS 17 'Leases')
in relation to the Finish Line and JD business in the United States
in its first full half year as part of the Group (2018: GBP4.8
million for the seven week period post acquisition).
There were exceptional items in the year of GBP28.7 million
(2018: GBPnil) primarily from the non-cash impairment of intangible
assets arising on the acquisition of Go Outdoors. These exceptional
items comprised:
2019 2018
GBPm GBPm
Non-cash impairment of intangible assets 20.7 -
(1)
Movement in fair value of put and call 3.6 -
options (2)
Integration and consolidation of Outdoor 4.4 -
fascias (3)
------ ------
Total exceptional charge 28.7 -
====== ======
1. The impairment in the current period relates to the partial
impairment of the goodwill arising in prior years on the
acquisition of Go Outdoors Topco Limited. The carrying value of the
remaining goodwill balance is sensitive to further changes in key
assumptions.
2. Movement in the fair value of the liabilities in respect of the put and call options.
3. Costs arising from the integration and consolidation of the
principal IT systems, warehousing and other infrastructure in Go
Outdoors.
Group profit before tax ultimately increased by 6.6% to GBP129.9
million (2018: GBP121.9 million). On a consistent accounting basis,
the Group profit before tax under IAS 17 'Leases' would have been
GBP137.5 million.
Cash and Working Capital
The net cash balance at the end of the period was GBP118.1
million (2018: net debt of GBP85.1 million) with the further
significant investments on both acquisitions, including Footasylum,
and capital expenditure being funded by the ongoing strong cash
generation in our core retail fascias.
Net stocks increased by GBP89.1 million to GBP913.2 million
(2018: GBP824.1 million). This includes GBP47.6 million in relation
to stocks in businesses acquired since 4 August 2018. The growth in
stocks in the like for like businesses is consistent with the
growth in sales and we maintain our robust approach to stock
management.
Gross capital expenditure (excluding disposal costs) decreased
to GBP69.8 million (2018: GBP91.4 million) with the decrease
reflecting the fact that the significant investment to extend our
Kingsway warehouse is nearing completion with spend in the period
reducing to GBP2.8 million (2018: GBP28.5 million). The primary
focus of our capital expenditure remains our retail fascias with a
spend in the period of GBP41.5 million (2018: GBP44.0 million).
This incorporates an increased investment in our international
Sports Fashion businesses of GBP29.7 million (2018: GBP24.9
million). Away from Kingsway, other investment in infrastructure
includes GBP2.5 million (2018: GBP2.5 million) at our warehouse in
Alicante and GBP2.5 million (2018: GBPnil) in relation to the new
warehouse for our Outdoor businesses at Middlewich.
We now expect that the capital expenditure for the full year
will be in the range of GBP175 million to GBP200 million and we
will continue to use our cash resources to make selected
acquisitions and investments where they benefit our strategic
development.
Store Portfolio
During the period, store numbers have moved as follows:
Sports Fashion Fascias
JD JD JD JD JD Fash'n Other Other Fin.L Fin.Line
(Store UK & Europe AsiaPac US Size & UK Europe AsiaPac ine (Macy's)(iii) Total
Nos.) ROI Size (i) (ii) (own)
Period
start 390 252 46 5 41 734 84 438 33 529 349 2,167
New stores 6 20 8 - - 34 1 3 - - 1 39
Transfers (1) 6 - 1 - 6 1 (6) - (1) - -
Acquired - - - - - - 73 - - - - 73
Closures (1) (3) (1) - (1) (6) (5) (5) (6) (10) (29) (61)
------ ------- -------- --- ------ ------ ------- ------- -------- ------ -------------- -------
Period
end 394 275 53 6 40 768 154 430 27 518 321 2,218
------ ------- -------- --- ------ ------ ------- ------- -------- ------ -------------- -------
(000 Sq
Ft)
Period
start 1,583 661 201 22 59 2,526 250 2,869 156 1,797 311 7,909
New stores 27 77 36 - - 140 3 18 - - 1 162
Extensions 3 - - - - 3 2 - - - - 5
Transfers (2) 7 - 4 - 9 2 (7) - (4) - -
Acquired - - - - - - 247 - - - - 247
Closures (1) (8) (6) - (1) (16) (8) (47) (25) (31) (12) (139)
Period
end 1,610 737 231 26 58 2,662 496 2,833 131 1,762 300 8,184
------ ------- -------- --- ------ ------ ------- ------- -------- ------ -------------- -------
(i) Chausport (France), Sprinter (Spain), Sport Zone (Portugal,
Spain & Canary Islands) and Perry Sport / Aktiesport
(Netherlands)
(ii) Glue (Australia) and Hot-T (South Korea)
(iii) Being Finish Line branded concessions within Macy's department stores only.
There were also 25 JD branded gyms at the period end.
Outdoor Fascias
Ultimate Go Go Outdoors
(Store Blacks Millets Outdoors Tiso Outdoors Fishing Total
Nos.)
Period
start 56 99 6 14 64 14 253
New stores 1 3 - - 2 1 7
Closures - (1) - (1) - (6) (8)
--------- ---------- ---------- ------- ---------- ------------ --------
Period
end 57 101 6 13 66 9 252
--------- ---------- ---------- ------- ---------- ------------ --------
(000 Sq
Ft)
Period
start 198 209 146 96 1,904 79 2,632
New stores 4 6 - - 38 3 51
Closures - (2) - (3) - (34) (39)
Period
end 202 213 146 93 1,942 48 2,644
--------- ---------- ---------- ------- ---------- ------------ --------
Dividends and Earnings per Ordinary Share
The Board proposes paying an interim dividend of 0.28p (2018:
0.27p) per ordinary share, an increase of 3.7%. This dividend will
be paid on 3 January 2020 to shareholders on the register at 29
November 2019. We continue to believe that it is in the longer term
interests of all shareholders to keep dividend growth restrained so
as to maximise the available funding for our ongoing growth
opportunities.
The basic earnings per ordinary share decreased slightly to
9.67p (2018: 10.05p) largely reflecting the higher participation of
profits from the United States, with higher rates of corporate
taxation, in the overall Group result.
The adjusted* earnings per ordinary share have increased by
25.1% to 12.57p (2018: 10.05p).
People
On 13 May 2019, Kath Smith joined the Board as an independent
Non-Executive Director after having previously been the General
Manager / Vice President of The North Face EMEA. With more than 20
years' experience in the sports brand industry, she will assist the
Group to enhance its already well-established relationships with
leading global brands.
The Group was promoted into the FTSE100 list for the first time
on 24 June 2019. This is a very notable landmark for the Group
which could not have been achieved without the commitment of all of
our colleagues. Our increasingly global achievements have their
foundations in the successful transfer of the JD DNA into local
markets. Whilst I would particularly like to thank the numerous
colleagues who have actively sought international secondments to
help deliver this, I also acknowledge the invaluable contribution
of the wider teams whose flexibility has made these secondments
possible and who have ensured that the core business continues to
progress.
Given the growth opportunities available to the Group,
particularly with respect to our international development, we will
continue to look to strengthen our senior management team where
appropriate.
Corporate Governance Review
Following the Company's promotion into the FTSE100, the Board
considered that it was an appropriate time to carry out a review of
various matters which are important to the business and its
shareholders from a corporate governance perspective. In addition,
in the announcement released following the Company's AGM on 3 July,
the Board committed to carrying out a review of its corporate
governance practices. The Company has now commenced its engagement
with shareholders in relation to this review.
Brexit
We recognise that there is heightened uncertainty surrounding
the nature of the UK's exit from the European Union and we are very
cognisant of the increased risk of a disorderly exit which could
have potential adverse consequences on supply chains, tariffs,
exchange rates and consumer demand.
The Group currently operates with a highly integrated stock
management infrastructure for its stores across Europe where the
stock requirement for the JD stores outside of the UK is aggregated
with that of the UK stores with one consolidated order then sent to
the supplier. All stocks are then delivered to the Group's primary
Kingsway warehouse for onward fulfilment both to stores and to
online customers.
The Group always expected that, for operational purposes, a
European warehouse would be required sometime after 2021 with the
risks associated with Brexit bringing this decision forward. We are
working with our logistics partners to secure an initial 80,000
sqft of space at a facility in Belgium which will provide us with
sufficient capacity to process launch product for footwear for the
key brands. This facility would be available for use in early
2020.
Current Trading and Outlook
We are pleased by the continued positive trends to date in the
second half in Sports Fashion whilst recognising the tougher
comparatives ahead.
Notwithstanding the ongoing uncertainty with regards to Brexit,
the Board is confident that, without the impact from the transition
to IFRS 16, the Group would have been on track to deliver headline
profit before tax for the full year at the top end of market
expectations which currently range from GBP402 million to GBP424
million. However, after adjusting for the impact of the transition
to IFRS 16, we would expect to deliver results at the mid-point of
expectations. We remain encouraged by our prospects for further
growth.
We will next provide an update on trading in early January after
our key Christmas trading period.
Peter Cowgill
Executive Chairman
10 September 2019
Condensed Consolidated Income Statement
For the 26 weeks to 3 August 2019
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
Note 2019 2018 2019
GBPm GBPm GBPm
Revenue 2,721.2 1,846.3 4,717.8
Cost of sales (1,446.1) (956.4) (2,474.5)
----------- ----------- -------------
Gross profit 1,275.1 889.9 2,243.3
Selling and distribution expenses
- normal (919.1) (674.9) (1,632.9)
Administrative expenses - normal (160.8) (92.7) (253.6)
Administrative expenses - exceptional 3 (28.7) - (15.3)
Other operating income 4.6 1.6 4.7
----------- ----------- -------------
Operating profit 171.1 123.9 346.2
Before exceptional items 199.8 123.9 361.5
Exceptional items 3 (28.7) - (15.3)
--------------------------------------- ------- ----------- ----------- -------------
Operating profit 171.1 123.9 346.2
Financial income 0.4 0.5 1.2
Financial expenses (41.6) (2.5) (7.5)
----------- ----------- -------------
Profit before tax 129.9 121.9 339.9
Income tax expense (31.9) (26.5) (75.7)
----------- ----------- -------------
Profit for the period 98.0 95.4 264.2
----------- ----------- -------------
Attributable to equity holders
of the parent 94.1 97.8 261.8
Attributable to non-controlling
interest 3.9 (2.4) 2.4
Basic earnings per ordinary
share 4 9.67p 10.05p 26.90p
----------- ----------- -------------
Diluted earnings per ordinary
share 4 9.67p 10.05p 26.90p
----------- ----------- -------------
Condensed Consolidated Statement of Comprehensive Income
For the 26 weeks to 3 August 2019
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Profit for the period 98.0 95.4 264.2
Other comprehensive income:
Items that may be classified subsequently
to the
Consolidated Income Statement:
Exchange differences on translation
of foreign operations 65.7 10.8 (0.8)
Total other comprehensive income
for the period 65.7 10.8 (0.8)
------------------------------------------- ----------- ----------- -------------
Total comprehensive income and expense
for the period (net of income tax) 163.7 106.2 263.4
------------------------------------------- ----------- ----------- -------------
Attributable to equity holders of
the parent 155.5 106.9 260.0
Attributable to non-controlling interest 8.2 (0.7) 3.4
------------------------------------------- ----------- ----------- -------------
Condensed Consolidated Statement of Financial Position
As at 3 August 2019
As at As at As at
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Assets
Intangible assets 463.8 410.8 394.3
Property, plant and equipment 2,693.2 497.8 539.8
Other assets 72.6 74.9 79.1
Investment in associate 2.6 - 0.1
Total non-current assets 3,232.2 983.5 1,013.3
---------------------------------------- ----------- ----------- -------------
Inventories 913.2 824.1 763.8
Trade and other receivables 255.5 217.3 177.2
Cash and cash equivalents 346.6 243.4 251.2
Total current assets 1,515.3 1,284.8 1,192.2
---------------------------------------- ----------- ----------- -------------
Total assets 4,747.5 2,268.3 2,205.5
---------------------------------------- ----------- ----------- -------------
Liabilities
Interest-bearing loans and
borrowings (187.5) (187.6) (63.8)
Lease liabilities (489.5) - -
Trade and other payables (922.3) (837.2) (808.1)
Provisions (2.2) (1.2) (1.3)
Income tax liabilities (18.7) (30.1) (27.3)
Total current liabilities (1,620.2) (1,056.1) (900.5)
---------------------------------------- ----------- ----------- -------------
Interest-bearing loans and
borrowings (41.0) (140.9) (62.2)
Lease liabilities (1,747.9) - -
Other payables (93.9) (139.7) (153.8)
Provisions (1.0) (1.9) (1.2)
Deferred tax liabilities (16.2) (10.8) (11.0)
---------------------------------------- ----------- ----------- -------------
Total non-current liabilities (1,900.0) (293.3) (228.2)
---------------------------------------- ----------- ----------- -------------
Total liabilities (3,520.2) (1,349.4) (1,128.7)
---------------------------------------- ----------- ----------- -------------
Total assets less total liabilities 1,227.3 918.9 1,076.8
---------------------------------------- ----------- ----------- -------------
Capital and reserves
Issued ordinary share capital 2.4 2.4 2.4
Share premium 11.7 11.7 11.7
Retained earnings 1,096.4 855.4 1,016.3
Other reserves 39.2 (8.4) (21.6)
---------------------------------------- ----------- ----------- -------------
Total equity attributable
to equity holders of the
parent 1,149.7 861.1 1,008.8
---------------------------------------- ----------- ----------- -------------
Non-controlling interest 77.6 57.8 68.0
---------------------------------------- ----------- ----------- -------------
Total equity 1,227.3 918.9 1,076.8
---------------------------------------- ----------- ----------- -------------
Condensed Consolidated Statement of Changes in Equity
For the 26 weeks to 3 August 2019
Total Equity
Attributable
Ordinary Foreign To Equity
Share Share Premium Retained Other Currency Holders
Capital GBPm Earnings Equity Translation Of The Parent
GBPm GBPm GBPm Reserve GBPm
GBPm
Balance at 2 February
2019 2.4 11.7 1,016.3 (36.3) 14.7 1,008.8
Profit for the period - - 94.1 - - 94.1
Other comprehensive
income:
Exchange differences
on translation of
foreign operations - - - - 61.4 61.4
Total other comprehensive
income - - - - 61.4 61.4
----------------------------- ----------- ---------------- ----------- --------- -------------- ----------------
Total comprehensive
income for the period - - 94.1 - 61.4 155.5
Dividends to equity
holders - - (14.0) - - (14.0)
Acquisition of
non-controlling
interest - - - (0.6) - (0.6)
Non-controlling
interest arising - - - - - -
on acquisition
Balance at 3 August
2019 2.4 11.7 1,096.4 (36.9) 76.1 1,149.7
----------------------------- ----------- ---------------- ----------- --------- -------------- ----------------
Total Equity
Attributable To Non-
Equity Holders Controlling Total
Of The Parent Interest Equity
GBPm GBPm GBPm
Balance at 2 February 2019 1,008.8 68.0 1,076.8
Profit for the period 94.1 3.9 98.0
Other comprehensive income:
Exchange differences on translation
of foreign operations 61.4 4.3 65.7
Total other comprehensive income 61.4 4.3 65.7
-------------------------------------------- --------------- -------------- ------------
Total comprehensive income for the
period 155.5 8.2 163.7
Dividends to equity holders (14.0) - (14.0)
Acquisition of non-controlling interest (0.6) - (0.6)
Non-controlling interest arising
on acquisition - 1.4 1.4
Balance at 3 August 2019 1,149.7 77.6 1,227.3
-------------------------------------------- --------------- -------------- ------------
Condensed Consolidated Statement of Changes in Equity
(continued)
For the 26 weeks to 4 August 2018
Total Equity
Attributable
Foreign To Equity
Ordinary Currency Holders
Share Share Premium Retained Other Translation Of The Parent
Capital GBPm Earnings Equity Reserve GBPm
GBPm GBPm GBPm GBPm
Balance at 3 February
2018 2.4 11.7 773.6 (33.8) 16.5 770.4
Profit for the period - - 97.8 - - 97.8
Other comprehensive
income:
Exchange differences
on translation of
foreign operations - - - - 9.1 9.1
Total other comprehensive
income - - - - 9.1 9.1
----------------------------- ----------- ---------------- ----------- --------- -------------- ----------------
Total comprehensive
income for the period - - 97.8 - 9.1 106.9
Dividends to equity
holders - - (13.3) - - (13.3)
Acquisition of
non-controlling
interest - - (2.7) - - (2.7)
Non-controlling
interest arising
on acquisition - - - (0.2) - (0.2)
Balance at 4 August
2018 2.4 11.7 855.4 (34.0) 25.6 861.1
----------------------------- ----------- ---------------- ----------- --------- -------------- ----------------
Total Equity
Attributable To Non-
Equity Holders Controlling Total
Of The Parent Interest Equity
GBPm GBPm GBPm
Balance at 3 February 2018 770.4 63.9 834.3
Profit for the period 97.8 (2.4) 95.4
Other comprehensive income:
Exchange differences on translation
of foreign operations 9.1 1.7 10.8
Total other comprehensive income 9.1 1.7 10.8
-------------------------------------------- --------------- -------------- ------------
Total comprehensive income for the
period 106.9 (0.7) 106.2
Dividends to equity holders (13.3) (0.1) (13.4)
Acquisition of non-controlling interest (2.7) (5.2) (7.9)
Non-controlling interest arising
on acquisition (0.2) (0.1) (0.3)
Balance at 4 August 2018 861.1 57.8 918.9
-------------------------------------------- --------------- -------------- ------------
Condensed Consolidated Statement of Cash Flows
For the 26 weeks ended 3 August 2019
26 weeks 26 weeks 52 weeks
to 3 August to to
2019 4 August 2 February
GBPm 2018 2019
GBPm GBPm
Cash flows from operating activities
Profit for the period 98.0 95.4 264.2
Income tax expense 31.9 26.5 75.7
Financial expenses 41.6 2.5 7.5
Financial income (0.4) (0.5) (1.2)
Depreciation and amortisation of
non-current assets 203.1 47.9 115.0
Forex losses / (gains) on monetary
assets and liabilities 6.8 (0.5) 2.5
Impairment of other intangibles
and non-current assets 0.2 0.3 11.9
Loss on disposal of non-current
assets 2.2 1.0 2.0
Other exceptional items 8.0 - 7.2
Impairment of goodwill and fascia
names 20.7 - 8.1
Increase in inventories (59.1) (78.1) (26.2)
Increase in trade and other receivables (53.5) (26.3) (22.5)
Increase in trade and other payables 100.8 37.2 21.2
Interest paid (41.6) (2.5) (7.5)
Income taxes paid (39.4) (27.3) (80.3)
--------------------------------------------- ------------- ----------- ------------
Net cash from operating activities 319.3 75.6 377.6
--------------------------------------------- ------------- ----------- ------------
Cash flows from investing activities
Interest received 0.4 0.5 1.2
Proceeds from sale of non-current
assets 1.9 0.2 1.0
Investment in software development (7.0) (5.1) (12.3)
Acquisition of property, plant and
equipment (58.3) (84.6) (173.6)
Acquisition of non-current other
assets (4.5) (1.7) (5.1)
Acquisition of subsidiaries, net
of cash acquired (89.3) (380.0) (362.0)
Net cash used in investing activities (156.8) (470.7) (550.8)
--------------------------------------------- ------------- ----------- ------------
Cash flows from financing activities
Drawdown of interest-bearing loans
and borrowings 72.7 284.8 82.1
Subsidiary shares issued in the
period - - 6.4
Repayment of lease liabilities (160.6) (0.7) (1.5)
Drawdown of finance lease liabilities - 5.1 5.8
Equity dividends paid - - (15.9)
Dividends paid to non-controlling
interest in subsidiaries - (0.1) (0.7)
--------------------------------------------- ------------- ---------- -------------
Net cash (used in) / provided by
financing activities (87.9) 289.1 76.2
--------------------------------------------- ------------- ---------- -------------
Net increase / (decrease) in cash
and cash equivalents 74.6 (106.0) (97.0)
Cash and cash equivalents at the
beginning of the period 237.7 334.6 334.6
Foreign exchange gains on cash and
cash equivalents 11.2 1.2 0.1
--------------------------------------------- ------------- ---------- -------------
Cash and cash equivalents at the
end of the period 323.5 229.8 237.7
--------------------------------------------- ------------- ---------- -------------
Analysis of Net Cash
As at 3 August 2019
At On At
2 February acquisition Non-cash 3 August
2019 of subsidiaries Cashflow movements 2019
GBPm GBPm GBPm GBPm GBPm
Cash at bank and in hand 251.2 7.8 76.4 11.2 346.6
Overdrafts (13.5) - (9.6) - (23.1)
------------ ----------------- ----------- ------------ ----------
Cash and cash equivalents 237.7 7.8 66.8 11.2 323.5
------------ ----------------- ----------- ------------ ----------
Interest bearing loans
and borrowings:
Bank loans (74.4) (15.7) 24.1 (3.5) (69.5)
Syndicated bank facility (30.0) - (95.0) - (125.0)
Finance lease liabilities (8.1) - (1.0) - (9.1)
Other loans - - (1.8) - (1.8)
125.2 (7.9) (6.9) 7.7 118.1
------------ ----------------- ----------- ------------ ----------
1. Basis of Preparation
JD Sports Fashion Plc (the 'Company') is a company incorporated
and domiciled in the United Kingdom. The half year financial report
for the 26 week period to 3 August 2019 represents that of the
Company and its subsidiaries (together referred to as the
'Group').
This half year financial report is an interim management report
as required by DTR 4.2.3 of the Disclosure and Transparency Rules
of the UK's Financial Conduct Authority and was authorised for
issue by the Board of Directors on 10 September 2019.
The condensed set of financial statements included in this half
yearly financial report has been prepared in accordance with IAS 34
'Interim Financial Reporting' as adopted by the EU. The annual
financial statements of the Group are prepared in accordance with
IFRS's as adopted by the EU. The comparative figures for the 52
week period to 2 February 2019 are not the Group's statutory
accounts for that financial year. Those accounts have been reported
on by the Group's Auditor and delivered to the Registrar of
Companies. The Report of the Auditor was (i) unqualified, (ii) did
not include a reference to any matters to which the Auditor drew
attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 498 of the
Companies Act 2006.
The information contained in the half year financial report for
the 26 week period to 3 August 2019 and 4 August 2018 has been
reviewed and the independent review report for the 26 week period
to 3 August 2019 is set out in the half yearly financial
report.
As required by the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority, the half year financial report has
been prepared by applying the same accounting policies and
presentation that were applied in the preparation of the Company's
published consolidated financial statements for the 52 week period
to 2 February 2019.
Adoption of New and Revised Standards
The Group continues to monitor the potential impact of other new
standards and interpretations which have been or may be endorsed
and require adoption by the Group in future reporting periods.
IFRS 16
IFRS 16 'Leases' is effective for all accounting periods
beginning on or after 1 January 2019. The adoption of IFRS 16 means
that lease agreements will give rise to both a right-of-use asset
and a lease liability for future lease payables. The right-of-use
asset will be depreciated on a straight-line basis over the life of
the lease. Interest will be recognised on the lease liability,
resulting in a higher interest expense in the earlier years of the
lease term. The total expense recognised in the Income Statement
over the life of the lease will be unaffected by the new standard.
However, IFRS 16 results in the timing of lease expense recognition
being accelerated for leases which would be currently accounted for
as operating leases.
On a cash flow basis, the impact of transition to IFRS 16 is
GBPnil and adoption of the standard will have no impact on the
commercial operations of the business.
Transition:
As previously disclosed, the Group has adopted the modified
retrospective transition approach, where the initial asset values
will be equal to the present value of the future lease payments as
at the date of transition.
The Group has also applied the following practical
expedients:
-- To grandfather the definition of a lease on transition
-- To rely on a previous assessment of whether leases are
onerous in accordance with IAS 37 immediately before the date of
initial application as an alternative to performing an impairment
review
-- To apply a single discount rate to a portfolio of leases with
reasonably similar characteristics
The Group has also applied the recognition exemption for short
term leases and leases of low-value items.
Impact on the financial statements:
On transition the opening balances for the Consolidated
Statement of Financial Position has been adjusted for the right-of
use asset of approximately GBP2.0 billion, with corresponding lease
liabilities of approximately GBP2.0 billion. As a result of
applying IFRS 16 for the 26 weeks to 3 August 2019, in relation to
the leases initially classified as operating leases, the Group has
recognised GBP2.1 billion of right-of-use asset and GBP2.2 billion
of lease liabilities.
The most significant lease liabilities relate to property.
The impact on the Consolidated Income Statement reflects an
increase to operating profit of approximately GBP29.9 million as
the pre-IFRS 16 rental charge is replaced by a lower depreciation
charge. Profit before tax decreased by GBP7.6 million as a result
of an increase in the interest charge of GBP37.5 million. We do not
expect the adoption of IFRS 16 to have a material impact on the
Group's effective tax rate.
There is no impact on cash flows, although the presentation of
the Cash Flow Statement has changed significantly, with an increase
in net cash inflows from operating activities being offset by an
increase in net cash outflows from financing activities (interest
paid).
Other
The Group does not consider that any other standards, amendments
or interpretations issued by the IASB, but not yet applicable, will
have a significant impact on the financial statements.
Alternative performance measures
The Directors measure the performance of the Group based on a
range of financial measures, including measures not recognised by
EU-adopted IFRS. These alternative performance measures may not be
directly comparable with other companies' alternative performance
measures and the Directors do not intend these to be a substitute
for, or superior to, IFRS measures. The Directors believe that
these alternative performance measures assist in providing
additional useful information on the underlying performance of the
Group. Alternative performance measures are also used to enhance
the comparability of information between reporting periods, by
adjusting for exceptional items, which could distort the
understanding of the performance for the period. Further
information can be found in the Glossary at the end of these
Interim results. Terms are listed in alphabetical order.
Use of estimates and judgements
The preparation of interim financial statements requires
management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of assets
and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances,
the results of which form the basis of making the judgements about
carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these
estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the 52 week period to 2
February 2019 with the exception of the provisional fair value
adjustments to the acquisition of Footasylum Plc which includes
significant estimates that may be refined in the second half of the
financial period.
A formal 'Hold Separate' order was received by the Company from
the UK Competition and Markets Authority ('CMA') on 17 May 2019
which requires that during the period of the CMA review the
Footasylum business must continue to be managed independently of
the Group. Ultimately, should the Company agree on remedies with
the CMA which require stores to be disposed then there may be a
financial impact of these store exit costs. At the date of
announcement, the outcome of the review is unknown and consequently
no liability has been recognised within these condensed
consolidated interim financial statements.
Risks and uncertainties
The Board has considered the risks and uncertainties for the
remaining 26 week period to 1 February 2020 and determined that the
risks presented in the Annual Report and Accounts 2019, noted
below, remain relevant:
-- Key suppliers and brands
-- Protection of intellectual property
-- Retail property factors
-- Seasonality of sales
-- Economic factors
-- Reliance on non-UK manufacturers
-- Brexit
-- Reliance on IT systems
-- Cyber security
-- Reliance on a consolidated warehouse
-- Retention of key personnel
-- Health and safety
-- Foreign exchange risk
-- Regulatory and compliance
-- GDPR
A major variable, and therefore risk, to the Group's financial
performance for the remainder of the financial period is the sales
and margin performance in the retail fascias, particularly in
December and January. Further comment on this and other risks and
uncertainties faced by the Group is provided in the Executive
Chairman's statement included within this half year report.
After making enquiries, the Directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in
preparing the financial statements.
2. Segmental Analysis
IFRS 8 'Operating Segments' requires the Group's segments to be
identified on the basis of internal reports about components of the
Group that are regularly reviewed by the Chief Operating Decision
Maker to allocate resources to the segments and to assess their
performance. The Chief Operating Decision Maker is considered to be
the Executive Chairman of JD Sports Fashion Plc.
Information reported to the Chief Operating Decision Maker is
focused on the nature of the businesses within the Group.
The Chief Operating Decision Maker receives and reviews
segmental operating profit. Certain central administrative costs
including Group Directors' salaries are included within the Group's
core 'Sports Fashion' result. This is consistent with the results
as reported to the Chief Operating Decision Maker.
IFRS 8 requires disclosure of information regarding revenue from
major products and customers. The majority of the Group's revenue
is derived from the retail of a wide range of apparel, footwear and
accessories to the general public. As such, the disclosure of
revenues from major customers is not appropriate. Disclosure of
revenue from major product groups is not provided at this time due
to the cost involved to develop a reliable product split on a same
category basis across all companies in the Group.
Intersegment transactions are undertaken in the ordinary course
of business on arm's length terms.
The Board consider that certain items are cross divisional in
nature and cannot be allocated between the segments on a meaningful
basis. Net funding costs and taxation are treated as unallocated
reflecting the nature of the Group's syndicated borrowing
facilities and its tax group. Drawdowns from the Group's syndicated
borrowing facility of GBP125.0 million (2018: GBP150.0 million) and
liabilities for taxation of GBP34.9 million (2018: GBP40.9 million)
are included within the unallocated segment.
Each segment is shown net of intercompany transactions and
balances within that segment. The eliminations remove intercompany
transactions and balances between different segments which
primarily relate to the net down of long term loans and short term
working capital funding provided by JD Sports Fashion Plc (within
Sports Fashion) to other companies in the Group, and intercompany
trading between companies in different segments.
Operating Segments
Information regarding the Group's operating segments for the 26
weeks to 3 August 2019 is reported below:
Income statement
Sports
Fashion Outdoor Unallocated Total
GBPm GBPm GBPm GBPm
Gross revenue 2,517.1 204.1 - 2,721.2
Intersegment revenue - - - -
--------- ---------- -------------- ---------
Revenue 2,517.1 204.1 - 2,721.2
--------- ---------- -------------- ---------
Operating profit / (loss)
before exceptional items 216.2 (16.4) - 199.8
Exceptional items (3.6) (25.1) - (28.7)
--------- ---------- -------------- ---------
Operating profit / (loss) 212.6 (41.5) - 171.1
Financial income - - 0.4 0.4
Financial expenses (33.8) (3.7) (4.1) (41.6)
--------- ---------- -------------- ---------
Profit before tax 178.8 (45.2) (3.7) 129.9
Income tax expense (31.9)
--------- ---------- -------------- ---------
Profit for the period 98.0
--------- ---------- -------------- ---------
Total assets and liabilities
Sports Fashion Outdoor Unallocated Eliminations Total
GBPm GBPm GBPm GBPm GBPm
Total assets 4,407.6 493.5 - (153.6) 4,747.5
Total liabilities (3,058.8) (455.1) (159.9) 153.6 (3,520.2)
--------------- -------- ------------ ------------- ----------
Total segment net
assets / (liabilities) 1,348.8 38.4 (159.9) - 1,227.3
--------------- -------- ------------ ------------- ----------
The comparative segmental results for the 26 weeks to 4 August
2018 are as follows:
Income statement
Sports
Fashion Outdoor Unallocated Total
GBPm GBPm GBPm GBPm
Gross revenue 1,638.1 208.2 - 1,846.3
Intersegment revenue - - - -
--------- ---------- -------------- --------
Revenue 1,638.1 208.2 - 1,846.3
--------- ---------- -------------- --------
Operating profit / (loss)
before exceptional items 127.7 (3.8) - 123.9
Exceptional items - - - -
--------- ---------- -------------- --------
Operating profit / (loss) 127.7 (3.8) - 123.9
Financial income - - 0.5 0.5
Financial expenses - - (2.5) (2.5)
--------- ---------- -------------- --------
Profit before tax 127.7 (3.8) (2.0) 121.9
Income tax expense (26.5)
--------- ---------- -------------- --------
Profit for the period 95.4
--------- ---------- -------------- --------
Total assets and liabilities
Sports Fashion Outdoor Unallocated Eliminations Total
GBPm GBPm GBPm GBPm GBPm
Total assets 2,086.8 273.8 - (92.3) 2,268.3
Total liabilities (1,062.6) (188.2) (190.9) 92.3 (1,349.4)
--------------- -------- ------------ ------------- ----------
Total segment net
assets / (liabilities) 1,024.2 85.6 (190.9) - 918.9
--------------- -------- ------------ ------------- ----------
Geographical Information
The Group's operations are located in the UK, Australia,
Austria, Belgium, Canada, Denmark, Dubai, Finland, France, Germany,
Hong Kong, India, Italy, Malaysia, the Netherlands, New Zealand,
Portugal, Republic of Ireland, Singapore, South Korea, Spain and
the Canary Islands, Sweden, Thailand and the United States of
America.
The following table provides analysis of the Group's revenue by
geographical market, irrespective of the origin of the goods /
services:
26 weeks to 26 weeks
3 August to
2019 4 August
GBPm 2018
GBPm
UK 1,120.7 958.1
Europe 727.0 601.9
United
States 730.3 180.0
Rest of
world 143.2 106.3
----------- ------------ ----------
2,721.2 1,846.3
--------- ------------ ----------
The revenue from any individual country, with the exception of
the UK and the US, is not more than 10% of the Group's total
revenue.
The following is an analysis of the carrying amount of segmental
non-current assets by the geographical area in which the assets are
located:
As at As at
3 August 4 August
2019 2018
GBPm GBPm
UK 1,328.2 369.0
Europe 1,213.5 316.0
United States 558.0 261.8
Rest of world 132.5 36.7
---------------- ---------- ----------
3,232.2 983.5
--------------- ---------- ----------
3. Exceptional Items
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Impairment of goodwill, brands
and fascia names (1) 20.7 - 8.1
Movement in fair value of put
and call options (2) 3.6 - 5.6
Integration and consolidation
of Outdoor fascias (3) 4.4 - 1.6
Administrative expenses - exceptional 28.7 - 15.3
Total exceptional items 28.7 - 15.3
----------------------------------------- ----------- ----------- -------------
(1) The impairment in the current period relates to the
impairment of the goodwill arising in prior years on the
acquisition of Go Outdoors Topco Limited. The carrying value of the
remaining goodwill balance is sensitive to further changes in key
assumptions.
(2) Movement in the fair value of the liabilities in respect of
the put and call options.
(3) Costs arising from the integration and consolidation of the
principal IT systems, warehousing and other infrastructure in Go
Outdoors.
Items that are, in aggregate, material in size and / or in
nature, are included within operating profit and disclosed
separately as exceptional items in the Consolidated Income
Statement. Exceptional items are disclosed separately as they are
not considered reflective of the year on year trading performance
of the Group.
4. Earnings per Ordinary Share
Basic and diluted earnings per ordinary share
The calculation of basic and diluted earnings per ordinary share
at 3 August 2019 is based on the profit for the period attributable
to equity holders of the parent of GBP94.1 million (26 weeks to 4
August 2018: GBP97.8 million; 52 weeks to 2 February 2019: GBP261.8
million).
The weighted average number of ordinary shares outstanding
during the 26 weeks to 3 August 2019 was 973,233,160 (26 weeks to 4
August 2018: 973,233,160; 52 weeks to 2 February 2019:
973,233,160), calculated as follows:
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
Issued ordinary shares at beginning
and end of period 973,233,160 973,233,160 973,233,160
------------ ------------ -------------
Adjusted basic and diluted earnings per ordinary share
Adjusted basic and diluted earnings per ordinary share have been
based on the profit for the period attributable to equity holders
of the parent for each financial period but excluding the post-tax
effect of certain exceptional items. The Directors consider that
this gives a more meaningful measure of the underlying performance
of the Group.
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Profit for the period attributable
to equity holders of the parent 94.1 97.8 261.8
Exceptional items excluding loss
on disposal of non-current assets 28.7 - 15.3
Tax relating to exceptional items (0.5) - (0.3)
Profit for the period attributable
to equity holders of the parent
excluding exceptional items 122.3 97.8 276.8
------------ ------------ -------------
Basic and diluted earnings per
ordinary share 9.67p 10.05p 26.90p
------------ ------------ -------------
Adjusted basic and diluted earnings
per ordinary share 12.57p 10.05p 28.44p
------------ ------------ -------------
5. Acquisitions
Current period acquisitions
Footasylum Plc
On 18 February 2019, JD Sports Fashion Plc acquired 19,579,964
Footasylum Plc shares at prices between 50 pence and 75 pence per
share, representing 18.7% of the issued ordinary share capital.
On 18 March 2019, in conjunction with the board of Footasylum
Plc, JD Sports Fashion Plc announced the terms of an offer to be
made for the remaining 81.3% of the ordinary share capital of
Footasylum at a price of 82.5 pence per ordinary share. This offer
was declared unconditional in all respects on 12 April 2019 with
acceptances received for a total of 78,176,481 shares representing
a further 74.8% of the issued ordinary share capital. On 26 April
2019, the first bulk transfer was made to acquire an additional
80.5m shares (in addition to the 19.5m already owned). The formal
process to acquire the remaining Footasylum shares (incl the
dissenting shareholders) was completed on 4 June 2019. Footasylum
was delisted on 16 May 2019 and is expected to be converted from an
unlisted Plc to a private company by 13 September 2019.
Included within the provisional fair value of the net
identifiable assets on acquisition is an intangible asset of
GBP34.3 million representing the Footasylum fascia name and an
intangible asset of GBP3.0 million for Footasylum exclusive brands.
The Board believes the excess of cash consideration paid over the
net identifiable assets on acquisition of GBP27.3 million is best
considered as goodwill representing future operating synergies.
Footasylum is a UK-based fashion retailer founded in 2005
focusing on the footwear and apparel market. The company operates a
multi-channel model which combines a store estate of 69 stores in a
variety of high street, mall and retail park locations in cities
and towns throughout Great Britain, with a strong online platform
and a recently launched wholesale arm for distributing its own
brand ranges via a network of partners.
The Board believes that Footasylum is a well-established
business with a strong reputation for lifestyle fashion and, with
its offering targeted at a slightly older consumer to JD's existing
offering, it is complementary to JD. The Board also believes that
there will be significant operational and strategic benefits from a
combination of the two businesses.
Fair value
Measurement at
Book value adjustments 3 August 2019
GBPm GBPm GBPm
Acquiree's net assets at acquisition
date:
Intangible assets - 37.3 37.3
Property, plant & equipment 29.1 (3.5) 25.6
Right of use assets 100.4 - 100.4
Inventories 39.6 - 39.6
Cash and cash equivalents 5.7 - 5.7
Trade and other receivables 19.4 - 19.4
Deferred tax assets / (liabilities) 0.2 (6.3) (6.1)
Trade and other payables - current (42.0) - (42.0)
Trade and other payables - non-current (0.2) - (0.2)
Lease liabilities (107.5) - (107.5)
Interest bearing loans and borrowings (13.5) - (13.5)
Net identifiable assets 31.2 27.5 58.7
------------- -------------- ----------------
Goodwill on acquisition 27.3
------------- -------------- ----------------
Consideration paid - satisfied in
cash 86.0
------------- -------------- ----------------
Included in the 26 week period ended 3 August 2019 is revenue of
GBP58.7 million and a loss before tax of GBP0.7 million in respect
of Footasylum.
Rascal Clothing Limited
On 5 February 2019, the Group acquired 50% of the issued share
capital of Rascal Clothing Limited ('Rascal') for cash
consideration of GBP2.5 million with additional consideration of up
to GBP1.0 million payable if certain performance criteria were
achieved. Rascal is a wholesaler and online retailer of sports
inspired leisurewear. At acquisition, management believed that
Rascal was on course to meet the performance criteria for the
maximum contingent consideration to be payable and therefore the
fair value of the contingent consideration at this time was GBP1.0
million.
The Board believes that the excess of consideration paid over
the net assets on acquisition of GBP2.2 million is best considered
as goodwill on acquisition representing future operating
synergies.
Included in the 26 week period ended 3 August 2019 is revenue of
GBP1.8 million and a profit before tax of GBP0.2 million in respect
of Rascal Clothing Limited.
Pretty Green Limited
On 4 April 2019, the Group acquired, via its 100% subsidiary
PG2019 Limited, the business and certain assets of Pretty Green
Limited (in administration), the boutique men's clothing brand,
from its administrator. The acquisition included the business,
brand and website as well as a flagship store in Manchester. Cash
consideration of GBP1.5 million was paid on completion with the
Group also assuming a further GBP1.8 million of debt.
Included within the provisional fair value of the net
identifiable assets on acquisition is an intangible asset of GBP1.0
million representing the Pretty Green fascia name and an intangible
asset of GBP0.7 million representing the Pretty Green brand name.
The Board believes the excess of cash consideration paid over the
net identifiable assets on acquisition of GBP2.7 million is best
considered as goodwill representing future operating synergies.
Included in the 26 week period ended 3 August 2019 is revenue of
GBP4.3 million and a profit before tax of GBP0.1 million in respect
of PG2019 Limited.
Giulio Fashion Limited
On 30 April 2019, the Group acquired 80% of the issued share
capital of Giulio Fashion Limited including two wholly owned
subsidiaries, Giulio Limited (a trading company) and Giulio Woman
Limited (a dormant company) for cash consideration of GBP3.0m. The
acquisition included put and call options over the remaining stores
exercisable after 3 years.
The Board believes the excess of cash consideration paid over
the net identifiable assets on acquisition of GBP2.7 million is
best considered as goodwill representing future operating
synergies.
Included in the 26 week period ended 3 August 2019 is revenue of
GBP1.7 million and a profit before tax of GBP0.1 million in respect
of Giulio Fashion Limited.
Other acquisitions
During the period, the Group made several small acquisitions,
these transactions were not material.
Prior period acquisitions
The Finish Line, Inc.
On 18 June 2018, the Group acquired 100% of the issued share
capital of The Finish Line, Inc. ('Finish Line') for cash
consideration of $558 million (GBP400.5 million).
Finish Line is one of the largest retailers of premium
multibranded athletic footwear, apparel and accessories in the
United States ('US'), the largest sportswear market in the world.
At acquisition, Finish Line traded from 556 Finish Line branded
retail stores across 44 US states and Puerto Rico in addition to a
well-established multichannel offering. Finish Line is also the
exclusive retailer of athletic shoes, both in-store and online for
Macy's, one of the US' premier retailers, operating 375 branded and
more than 150 small unbranded concessions within Macy's stores at
acquisition.
Included within the fair value of the net identifiable assets on
acquisition was an intangible asset of GBP70.6 million,
representing the Finish Line fascia name. The Board believes that
the excess of consideration paid over the net assets on acquisition
of GBP98.5 million was best considered as goodwill on acquisition
representing future operating synergies. The period in which
measurement adjustments could be made has now closed on this
acquisition and the final goodwill calculation is summarised
below:
Measurement Fair value
Book value adjustments at
GBPm GBPm 3 August 2019
GBPm
Acquiree's net assets at acquisition
date:
Intangible assets 16.9 70.6 87.5
Property, plant & equipment 76.5 4.9 81.4
Inventories 261.6 (5.8) 255.8
Cash and cash equivalents 50.9 - 50.9
Trade and other receivables 38.6 - 38.6
Income tax liabilities (1.5) - (1.5)
Deferred tax assets / (liabilities) 7.0 (11.5) (4.5)
Trade and other payables - current (135.9) (16.8) (152.7)
Trade and other payables - non-current (40.2) (13.3) (53.5)
Net identifiable assets 273.9 28.1 302.0
------------- -------------- ----------------
Goodwill on acquisition 98.5
------------- -------------- ----------------
Consideration paid - satisfied in
cash 400.5
------------- -------------- ----------------
No measurement adjustments have been made to the fair values in
the 26 week period ended 3 August 2019.
Choice Limited
On 13 August 2018, the Group acquired, via its subsidiary
Tessuti Limited, 100% of the issued share capital of Choice Limited
for cash consideration of GBP4.0 million and 8.8% of the issued
share capital of Tessuti Limited with a fair value of GBP1.3
million. Choice Limited operates as a retailer of premium fashion
apparel and footwear with six stores and a trading website at
acquisition. Included within the provisional fair value of the net
identifiable assets on acquisition was an intangible asset of
GBP1.5 million, representing the Choice fascia name. The Board
believes that the excess of consideration paid over the net
identifiable assets on acquisition of GBP3.0 million was best
considered as goodwill representing future operating synergies.
No measurement adjustments have been made to the fair values in
the 26 week period ended 3 August 2019.
Other Acquisitions
During the previous period, the Group made several small
acquisitions. These transactions were not material.
6. IFRS 16 Leases
Impacts on transition
On transition to IFRS 16, the Group recognised additional
right-of-use asset, and additional lease liabilities, recognising
any differences in retained earnings. The impact on transition is
summarised below (not including adjustment for deferred
income).
3 February 2019
GBPm
Right-of-use asset presented in property,
plant and equipment 1,991.2
Lease liabilities 1,991.2
Retained earnings impact -
----------------
Impacts for the period
Balance Balance at
at 3 August 3 February
2019 2019
GBPm GBPm
Property 2,104.7 1,874.7
Vehicles 3.0 3.8
--------------
Total right-of-use asset 2,107.7 1,878.5
-------------- -------------
The indicative impact of the adoption of IFRS 16 disclosed in
the pre-transition financial statements was a right-of-use asset of
approximately GBP1.8 billion, with corresponding lease liability of
GBP1.9 billion (after adjustments for deferred income). As a result
of the finalisation of the accounting judgement relating to the
estimated lease term on expired leases, an additional GBP0.1
billion has been calculated and added to both the right-of-use
asset and the corresponding lease liability.
Balance at
3
August 2019
GBPm
Current 489.5
Non-current 1,747.9
Total lease liabilities 2,237.4
-------------
7. Half Year Report
As indicated in the 2012 Notice of Annual General Meeting, in
line with many other listed companies the company will no longer be
issuing a hard copy of the half year report. Instead, the Group has
decided to make the half year report available via the Company's
website.
Accordingly the half year report will be available for
downloading from www.jdplc.com from mid October 2019. Paper based
copies will be available on application to the Company Secretary,
JD Sports Fashion Plc, Hollinsbrook Way, Pilsworth, Bury,
Lancashire, BL9 8RR.
Disclaimer
This announcement contains certain forward-looking statements
with respect to the financial condition, results, operations and
businesses of JD Sports Fashion plc. These statements and forecasts
involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a
number of factors that could cause actual results or developments
to differ materially from those expressed or implied by these
forward-looking statements and forecasts.
Glossary (terms are listed in alphabetical order)
The Directors measure the performance of the Group based on a
range of financial measures, including measures not recognised by
EU-adopted IFRS. These alternative performance measures may not be
directly comparable with other companies' alternative performance
measures and the Directors do not intend these to be a substitute
for, or superior to, IFRS measures. The Directors believe that
these alternative performance measures assist in providing
additional useful information on the underlying performance of the
Group. Alternative performance measures are also used to enhance
the comparability of information between reporting periods, by
adjusting for exceptional items, which could distort the
understanding of the performance for the year. Terms are listed in
alphabetical order.
Adjusted earnings per share
The calculation of basic and diluted earnings per share is
detailed in Note 4. Adjusted basic and diluted earnings per
ordinary share have been based on the profit for the period
attributable to equity holders of the parent for each financial
period but excluding the post-tax effect of certain exceptional
items. A reconciliation between basic earnings per share and
adjusted earnings per share is shown below:
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
Basic earnings per share 9.67p 10.05p 26.90p
Exceptional items excluding loss on disposal
of non-current
assets 2.95p - 1.57p
Tax relating to exceptional items (0.05p) - (0.03p)
----------- ----------- -------------
Adjusted earnings per share 12.57p 10.05p 28.44p
----------- ----------- -------------
Core
The Group's core Sports Fashion fascia is JD and the Group's
core market is the UK and Republic of Ireland.
EBITDA
Earnings before interest, tax, depreciation and
amortisation.
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Profit for the period 98.0 95.4 264.2
Addback:
Financial expenses 41.6 2.5 7.5
Income tax expense 31.9 26.5 75.7
Depreciation, amortisation and impairment
of non-current assets 203.1 47.9 126.9
Exceptional items 28.7 - 15.3
Deduct:
Financial income (0.4) (0.5) (1.2)
---------- ---------- ------------
EBITDA 402.9 171.8 488.4
---------- ---------- ------------
LFL (Like for Like) sales
The percentage change in the year-on-year sales, removing the
impact of new store openings and closures in the current or
previous financial year.
Operating profit before exceptional items
A reconciliation between operating profit and exceptional items
can be found in the Condensed Consolidated Income Statement.
Profit before tax and exceptional items (Headline profit)
A reconciliation between profit before tax and profit before tax
and exceptional items is as follows:
26 weeks 26 weeks 52 weeks
to to to
3 August 4 August 2 February
2019 2018 2019
GBPm GBPm GBPm
Profit before tax 129.9 121.9 339.9
Exceptional items 28.7 - 15.3
----------- ----------- -------------
Profit before tax and exceptional items 158.6 121.9 355.2
----------- ----------- -------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR SFUSISFUSEIU
(END) Dow Jones Newswires
September 10, 2019 02:02 ET (06:02 GMT)
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