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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Boohoo Group Plc | AQSE:BOO.GB | Aquis Stock Exchange | Ordinary Share | JE00BG6L7297 | Ordinary Share 1p |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 34.50 | 33.00 | 36.00 | 34.50 | 33.9809 | 34.50 | 154,056 | 08:48:41 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMBOO
RNS Number : 8643K
boohoo.com plc
27 September 2016
For Immediate Release 27 September 2016
boohoo.com plc - Interim results for the six months ended 31 August 2016
"The Global Fashion Leader for a Social Generation"
GBP000 6 months ended 6 months ended Change 31 August 2016 31 August 2015 ---------------------- --------------- --------------- ---------- Revenue 127,316 90,784 +40% Gross profit 70,466 54,539 +29% Gross margin 55.3% 60.1% -480bps Operating profit 14,053 5,976 +135% EBITDA (adjusted)(1) 16,510 7,613 +117% Profit before tax 14,364 6,270 +129% Cash at period end 67,056 60,360 +GBP6,696 Earnings per share 1.01p 0.45p +124% ---------------------- --------------- --------------- ----------
(1): EBITDA (adjusted) excludes equity-settled share based payment costs of GBP0.5m (2015: GBP0.3m)
Highlights for the six months to 31 August 2016
-- Revenue up 40% (41% CER(2) )
o UK up 38%, rest of Europe up 41% (41% CER), USA up 93% (81% CER), rest of world up 17% (27% CER)
o International now represents 36% of total revenue
-- Gross margin 55.3%, down 480bps (350bps due to planned investment in price and promotions, with retail gross margin being 57.0%; and 130bps due to third party(3) revenue)
-- EBITDA (adjusted) was 13% of revenue (2015: 8.4%), reflecting efficiency improvements -- Broader product range driving growth -- 4.5m active customers(4) , up 28% on prior year -- Strong balance sheet with net cash of GBP67m
(2): CER designates Constant Exchange Rate translation of foreign currency revenue
(3): Third party includes revenue from other channels and wholesale sales to retailers
(4): Active customers defined as having shopped in the last year
Mahmud Kamani and Carol Kane, joint CEOs, commented:
"We are pleased to report a strong performance in the first half of the year, with robust growth across all regions and continued momentum in new customer growth.
Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world. Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.
As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30% and 35%, reflecting tougher second half comparatives. Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value. We will also be making significant investments in our IT systems and Ecommerce platforms. Consequently EBITDA margin for the full year is expected to be around 11%."
Investor and Analyst Meeting
A meeting for investors and analysts will be held at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN on 27 September 2016, commencing at 9.00am. A webcast will be available following the presentation via the following link: http://vm.buchanan.uk.com/2016/boohoo270916/registration.htm
boohoo.com plc's Interim Results 2017 are available at www.boohooplc.com .
Enquiries
boohoo.com plc c/o Buchanan Tel: +44 (0)20 7466 Neil Catto, Chief Financial 5000 Officer Buchanan - Financial PR adviser Tel: +44 (0)20 7466 5000 Richard Oldworth boohoo@buchanan.uk.com Madeleine Seacombe Zeus Capital - Nominated adviser and joint broker Tel: +44 (0)161 831 1512 Nick Cowles/Andrew Jones (Corporate Finance) Tel: +44 (0)20 3829 5000 Benjamin Robertson/ John Goold (Corporate Broking) Jefferies Hoare Govett - joint broker Tel: +44 (0)20 7029 8000 Nick Adams Max Jones
About boohoo.com
"24/7 Global Fashion"
Keeping one step ahead of the trends or making a subtle style change is easy with boohoo.com and with up to 100 new pieces hitting the site every day and a new collection each week, boohoo.com never stops - it is 24/7 fashion at its best.
From the UK's best kept fashion secret to one of the fastest growing own-brand, international etailers, boohoo.com has quickly evolved into a global fashion leader of its generation. Combining cutting-edge, aspirational design with an affordable price tag, boohoo.com has been pushing boundaries since 2006 to bring its customers all the latest looks for less.
www.boohoo.com www.boohoo.com/newz/page/home fr.boohoo.com www.boohoo.com/europe/page/home www.boohoo.com/sweden/page/home de.boohoo.com www.boohoo.com/usa/page/home www.boohoo.com/denmark/page/home it.boohoo.com www.boohoo.com/canada/page/home www.boohoo.com/norway/page/home nl.boohoo.com www.boohoo.com/aus/page/home es.boohoo.com
This announcement has been determined to contain inside information.
Business review
Performance during the 6 months to 31 August 2016
Revenue growth across all geographic regions continued at a strong pace. In the UK, our largest market, revenue growth was 38%, whilst in Europe growth was 41% (CER 41%). The USA continued to grow very strongly at 93% (CER 81%) and rest of the world growth was 17% (CER 27%).
Currency exchange movements since the EU referendum have not significantly affected results due to foreign exchange hedges placed several months earlier in accordance with our rolling hedging programme, although weaker sterling does provide the opportunity to use promotional activity to generate incremental international sales over and above hedged transactions. With an element of many product prices being dollar-based, it remains to be seen what the longer term effect of continued sterling weakness might be in the supply chain.
Gross margin was 55.3% (2015: 60.1%) reducing by 480bps, of which 350bps was in line with our strategy of increased investment in price and promotions. A further 130bps was driven by a greater proportion of lower margin third party sales (revenue from other channels and wholesale sales to retailers). Retail gross margin was 57.0% (2015: 60.5%). Marketing expenditure decreased to 6.3% of revenue compared to 12.6% in the comparable half year, as we stimulated growth through greater use of price and delivery promotions.
Adjusted EBITDA was GBP16.5 million (2015: GBP7.6 million), an increase of 117% on the prior year, and profit before tax was GBP14.4 million (2015: GBP6.3 million), an increase of 129%.
Fashion
We aim to be the best-priced brand in fashion and with a range of over 20,000 styles we always have something to offer every taste in style and from the latest trends. With 100 new styles on site every day, the offering is continuously fresh and exciting. Our test-and-repeat model reduces stock holding risk, whilst rapid response enables us to reorder strong selling lines to quickly satisfy demand.
Our core womenswear ranges of dresses, tops, jackets and footwear have continued to perform strongly, whilst other products from the expanded range are generating robust revenue growth: plus-size and petite have grown strongly and attained a high level of revenue and the more recently-introduced tall and lingerie ranges have made a very promising start.
Fashion advice and lifestyle commentary is energetically presented in the "Stylefix" section of the website. Here, female customers can enjoy keeping up with fashion trends in a highly engaging lifestyle media stream, watch videos and read interesting articles by bloggers.
Our menswear range is expanding and, since early 2016, has been sold from a separate menswear website in addition to the main site. This has enabled us to offer a proposition more relevant to the male audience, with added celebrity contributions, fashion advice and lifestyle articles in the "Manual" section. Menswear is showing great promise, with monthly sales at the end of the first half double those at the start, and continuing to grow strongly.
In the second half year we will be introducing a range of children's clothing for girls and boys in the 5 to 12 age range and also a small maternity range.
Marketing
Marketing activity has continued with the highly successful "WeAreUs" campaigns, through TV, media events and social media channels. Bloggers and influencers also contribute via social media to generate an inclusive and engaging experience for our social media savvy customers, with great photography and interesting articles promoting the brand and the latest products. Our "Style Squads" comprise over 60 bloggers and influencers across our key geographic markets.
In July we announced another celebrity fashion collaboration with international curve model and blogger Jordyn Woods, which we expect will be highly effective in the growing US market. In August we held our launch party for this new collaboration in Los Angeles. The event was covered extensively in the media and attracted many celebrities and influencers including Kylie Jenner, Jaden Smith and Hailey Baldwin. In April we staged pop-up shops, one in Los Angeles, generating much interest in California amongst the extensive student population, and one in Paris, supporting the growing French market. In the UK we sponsored Graduate Fashion Week and staged a number of media events, driving further awareness of the brand.
In early spring we launched the boohooMAN.com website, with the reality TV personality and celebrity Big Brother contestant Scotty T fronting promotional activity. This has contributed to an acceleration in menswear sales, supported by a continuously increasing product range and marketing activity focussed on the young male audience. We have also started a series of shoots with key influencers, the latest being with actor and P-Diddy's stepson, Quincy Brown.
Improvements in the efficiency of our acquisition marketing spend have also been realised with the use of more advanced analytical tools and techniques. We have also stepped up our activity on social media on Facebook Live and on Snapchat and a content drive on Instagram has helped us pass the 2 million follower mark in the UK.
Customer interaction
Active customers, who shopped with us in the 12 months to 31 August 2016, rose to 4.5 million, an increase of 28% on the same period a year ago. The number of website sessions grew strongly by 32% on the previous 12 months to 241 million sessions. Order frequency has risen by 7.7%, with customers buying, on average, 2.1 times in 12 months and conversion rate to sale improved from 3.8% to 3.9% of sessions. On social media we have 0.5 million followers on Twitter and a reach of 7.9 million, 3.8 million followers on Instagram, 2.3 million Facebook likes and a reach of 2.8 million and 3.2 million views recorded on YouTube.
Our multi-lingual customer service team responds to customer queries from a variety of platforms and aims for excellence in response time and problem resolution. Our performance is constantly measured internally and we monitor external customer review websites such as Trustpilot to ensure we maintain best-in-class standards. We have introduced web-chat in the UK, which is proving highly effective and is receiving a high satisfaction rating from customers.
boohoo.com customers are able to choose from a range of delivery options, which we are constantly refining as new opportunities become available. We operate a midnight cut-off for next day delivery, Sunday delivery and collect+ returns in the UK. In the second half of the year we have introduced boohoo Premier, which offers an unlimited next day delivery service in the UK for an annual fee, and has received a very favourable customer response.
Technology
The Android and iPhone Apps introduced in the UK, USA and Australia in early spring are being utilised increasingly by customers, with 1.4 million downloads to date. Mobile and tablet use continues to rise and now accounts for 72% of sessions.
We are planning to expand the number of market places in which we are present in the second half and to improve personalisation by territory and device to enhance the customer experience.
These new channels are facilitated by our systems architecture, built around the concept of multiple customer channels supported with common infrastructure. Around this architecture, we will make significant investments in the latest sophisticated and most stable platforms in the second half of the year. On-going refinements contribute to an ever-improving customer experience.
Warehouse
Three more mezzanine floor layers, expanding capacity by another 275,000 square feet to 525,000 square feet total capacity, are now in use in the warehouse, with capacity sufficient for medium term future growth. A second warehouse extension, which will incorporate a significant amount of automation, is now at the planning stage.
People
Sara Murray joined the board as a non-executive director in April and Mark Newton-Jones stepped down from the board in July. We thank Mark for his contribution during a key developmental phase of the company's history.
The senior management team remained unchanged during the period, following a number of senior appointments last year. We appointed a number of skilled middle-management positions and undertook several large-scale training and development programmes as part of our up-skilling and retention policy for staff development.
The rate of growth in revenue has required an increase in personnel in the volume-related functions in customer service and warehousing. The total permanent workforce now stands at 1,235, up from 1,015 at 29 February 2016.
Pretty Little Thing
The company has an option to acquire the business of "PrettyLittleThing" before March 2017 and management is evaluating all aspects of a potential acquisition, the related management incentive and how the business will be best integrated and managed as part of the boohoo group.
Financial review
We have continued to drive strong customer growth through our price, promotional and marketing strategy in the first half of the year, whilst achieving good margins. By leveraging overheads, our profitability has also improved.
Sales revenue by geographical market
6 months to 6 months to 31 August 2015 Change Change 31 August 2016 GBP000 GBP000 CER ---------------- ------------ --------------------------- ------- ------- UK 81,696 59,128 +38% +38% Rest of Europe 14,713 10,403 +41% +41% USA 15,226 7,901 +93% +81% Rest of world 15,681 13,352 +17% +27% ---------------- ------------ --------------------------- ------- ------- 127,316 90,784 +40% +41% ================ ============ =========================== ======= =======
In sterling equivalent and at constant exchange rates (CER), all regions showed robust growth compared with the same period last year.
KPIs
6 months to 31 August 2016 6 months to Change 31 August 2015 Active customers(1) 4.5 million 3.5 million +28% Number of orders 5.1 million 3.8 million +32% Order frequency(2) 2.11 1.96 +7.7% Conversion rate to sale (3) 3.9% 3.8% +10bps Average order value(4) GBP37.16 GBP33.91 +9.6% Number of items per basket 2.86 2.74 +4.4% ----------------------------- --------------------------- ---------------- ------- (1) Defined as having shopped in the last 12 months (2) Defined as number of orders in last 12 months divided by number of active customers (3) Defined as the percentage of orders taken to internet sessions (4) Calculated as gross sales including sales tax divided by the number of orders
Our business is continuing to attract new customers and retain existing customers, with active customer numbers increasing by 28% compared to the comparative period in FY16. Customers are buying more often from us, with order frequency increasing by 7.7% to an average of 2.11 purchases in a year, and conversion rates have also increased to 3.9%. Average order value has risen by 9.6% to GBP37.16, whilst the number of items per basket increased by 4.4% to 2.86.
Consolidated income statement
6 months to 31 August 2016 6 months to 31 August 2015 Change GBP000 GBP000 ---------------------------------- --------------------------- --------------------------- ------- Revenue 127,316 90,784 40% Cost of sales (56,850) (36,245) ---------------------------------- --------------------------- --------------------------- ------- Gross profit 70,466 54,539 29% Gross margin 55.3% 60.1% Distribution costs (29,476) (21,513) Administrative expenses (28,389) (27,409) Other income 1,452 359 Operating profit 14,053 5,976 135% Finance income 311 294 ---------------------------------- --------------------------- --------------------------- ------- Profit before tax 14,364 6,270 129% ================================== =========================== =========================== ======= Calculation of EBITDA (adjusted) Operating profit 14,053 5,976 Depreciation and amortisation 2,004 1,363 Share-based payments 453 274 EBITDA (adjusted) 16,510 7,613 117% ================================== =========================== =========================== =======
Reported gross margin reduced from 60.1% to 55.3%, due to keener pricing and higher promotional discounts driving demand and an increased proportion of lower margin third party sales.
Distribution costs and certain administrative expenses have increased due to sales volume-related costs, whilst the remaining overheads have decreased as a percentage of revenue.
EBITDA (adjusted) increased by 117% from GBP7.6m to GBP16.5m.
Statement of financial position
At 31 August 2016 At 31 August 2015 GBP000 GBP000 ----------------------------------------------------------------- ------------------ ------------------ Intangible assets 4,403 4,479 Property, plant and equipment 26,188 15,277 Financial assets - foreign exchange contracts 339 - Deferred tax 810 101 ------------------------------------------------------------------ ------------------ ------------------ Non-current assets 31,740 19,857 Working capital (4,789) (8,407) Net financial (liabilities)/assets - foreign exchange contracts (11,349) 1,406 Cash and cash equivalents 67,056 60,360 Current tax liability (3,062) (1,316) Net assets 79,596 71,900 ================================================================== ================== ==================
Net assets have increased by GBP7.7m compared to 12 months ago. The movement in working capital was less negative than 12 months ago due to taking early settlement discounts from suppliers and higher receivables from third party sales.
Liquidity and financial resources
Free cash flow was GBP10.6m compared to GBP7.4m in H1 2016. In the first half of the year, inventories increased, due to the requirement to hold more products to serve our growing customer base, and receivables, payables and accruals increased in line with trading activity. Capital expenditure was GBP6.6m as we have continued to invest in our warehouse and IT systems to support projected growth in trade. The closing cash balance was GBP67.1m.
Consolidated cash flow statement 6 months to 31 August 2016 6 months to 31 August 2015 GBP000 GBP000 ---------------------------------------------- ------ ----------------------------------- --------------------------- Profit for the period 11,339 5,000 Depreciation charges and amortisation 2,004 1,363 Share-based payments charges 453 274 Tax expense 3,025 1,270 Finance income (311) (294) Increase in inventories (6,356) (7,959) Increase in trade and other receivables (4,451) (1,698) Increase in trade and other payables 11,493 15,171 Capital expenditure (6,627) (5,704) ------------------------------------------------------ ----------------------------------- --------------------------- Free cash flow 10,569 7,423 Purchase of own shares by Employee Benefit Trust - (331) Interest received 171 304 Tax paid (1,965) (1,182) Net cash flow 8,775 6,214 Cash and cash equivalents at beginning of period 58,281 54,146 ------------------------------------------------------ ----------------------------------- --------------------------- Cash and cash equivalents at end of period 67,056 60,360 ====================================================== =================================== ===========================
Fixed and intangible asset additions
At 31 August 2016 At 31 August 2015 GBP000 GBP000 -------------------------------------------- ------------------ ------------------ IT intangible assets 736 628 Warehouse extension 4,129 4,736 Office buildings 998 - IT equipment, office fixtures and fittings 764 340 --------------------------------------------- ------------------ ------------------ 6,627 5,704 ============================================ ================== ==================
Outlook
We are pleased to report a strong performance in the first half of the year, with robust growth across all regions and continued momentum in new customer growth.
Our inclusive brand, unbeatable choice, together with our incredible prices and fantastic service, continue to inspire and appeal to young customers around the world. Through our constant focus on what matters to our customers, together with our investment in technology and operational improvements, we will continue to deliver profitable growth.
As a result of our continued momentum in the UK and encouraging growth in selected overseas markets, we now expect revenue growth for the full year of between 30% and 35%, reflecting tougher second half comparatives. Following the success in the first half of the year we will continue to look for opportunities to invest in marketing campaigns and our customer proposition to drive future sales growth and improve customer lifetime value. We will also be making significant investments in our IT systems and Ecommerce platforms. Consequently EBITDA margin for the full year is expected to be around 11%.
Mahmud Kamani Carol Kane Neil Catto Joint Chief Executive Joint Chief Executive Chief Financial Officer
27 September 2016
Unaudited consolidated statement of comprehensive income
for the 6 months ended 31 August 2016
Note 6 months to 6 months to 31 August 2015 Year to 31 August 29 February 2016 2016 GBP000 GBP000 GBP000 Revenue 3 127,316 90,784 195,394 Cost of sales (56,850) (36,245) (82,483) ----------------------------------------------- ---- ----------- ---------------------------- ------------ Gross profit 70,466 54,539 112,911 Distribution costs (29,476) (21,513) (45,501) Administrative expenses (28,389) (27,409) (53,756) Other income 4 1,452 359 1,392 ----------------------------------------------- ---- ----------- ---------------------------- ------------ Operating profit 14,053 5,976 15,046 Finance income 311 294 628 ----------------------------------------------- ---- ----------- ---------------------------- ------------ Profit before tax 14,364 6,270 15,674 Taxation (3,025) (1,270) (3,236) Profit for the period 11,339 5,000 12,438 =============================================== ==== =========== ============================ ============ Other comprehensive (expense)/income for the period, net of income tax Items that may be subsequently reclassified to profit and loss: Net fair value (loss)/gain on cash flow hedges (6,170) 584 (5,661) Excess deferred tax on share-based payments 545 - - Items that will not be subsequently reclassified to profit and loss: Translation of foreign entity balances 2 - 1
----------------------------------------------- ---- ----------- ---------------------------- ------------ Total comprehensive income for the period 5,716 5,584 6,778 =============================================== ==== =========== ============================ ============ Earnings per share 6 Basic 1.01p 0.45p 1.11p Diluted 1.00p 0.44p 1.10p ----------------------------------------------- ---- ----------- ---------------------------- ------------
All activities relate to continuing operations.
Unaudited consolidated statement of financial position
at 31 August 2016
Note At 31 At 31 At 29 August August February 2016 2015 2016 GBP000 GBP000 GBP000 --------------------------------------------------------- ---- --------- --------- --------- Assets Non-current assets Intangible assets 4,403 4,479 4,542 Property, plant and equipment 26,188 15,277 21,426 Financial assets - foreign currency hedge contracts 339 - 28 Deferred tax 7 810 101 231 --------------------------------------------------------- ---- --------- --------- --------- 31,740 19,857 26,227 Current assets Inventories 8 25,025 19,147 18,669 Trade and other receivables 9 11,692 5,532 7,096 Financial assets - foreign currency hedge contracts 92 1,643 35 Cash and cash equivalents 67,056 60,360 58,281 --------------------------------------------------------- ---- --------- --------- Total current assets 103,865 86,682 84,081 Total assets 135,605 106,539 110,308 Liabilities Current liabilities Trade and other payables 10 (41,506) (33,086) (30,013) Financial liabilities - foreign currency hedge contracts (8,564) (237) (4,291) Current tax liability (3,062) (1,316) (1,967) --------------------------------------------------------- ---- --------- --------- Total current liabilities (53,132) (34,639) (36,271) Non-current liabilities Financial liabilities - foreign currency hedge contracts (2,877) - (610) Total liabilities (56,009) (34,639) (36,881) Net assets 79,596 71,900 73,427 ========================================================= ==== ========= ========= ========= Equity Share capital 11 11,233 11,231 11,233 Share premium 551,666 551,612 551,666 Capital redemption reserve 100 100 100 Hedging reserve (11,009) 1,406 (4,839) EBT reserve (761) (761) (761) Translation reserve 3 - 1 Reconstruction reserve (515,282) (515,282) (515,282) Retained earnings 43,646 23,594 31,309 --------------------------------------------------------- ---- --------- --------- --------- Total equity 79,596 71,900 73,427 ========================================================= ==== ========= ========= =========
Unaudited consolidated statement of changes in equity
for the 6 months ended 31 August 2016
Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total up share premium redemption reserve reserve reserve reserve earnings equity capital reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- ------- Balance as at 1 March 2016 11,233 551,666 100 (4,839) (761) 1 (515,282) 31,309 73,427 Share-based payment charge - - - - - - - 453 453 Excess deferred tax on share-based payment charge - - - - - - - 545 545 Profit for the period - - - - - - - 11,339 11,339 Translation of foreign operations - - - - - 2 - - 2 Fair value loss on cash flow hedges - - - (6,170) - - - - (6,170) Balance at 31 August 2016 11,233 551,666 100 (11,009) (761) 3 (515,282) 43,646 79,596 ============ ======== ========= ========== ========= ========= ============ =============== ========= ======= Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total up share premium redemption reserve reserve reserve reserve earnings equity capital reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- ------- Balance as at 1 March 2015 11,231 551,612 100 822 (430) - (515,282) 18,320 66,373 Purchase of shares by EBT - - - - (331) - - - (331) Share-based payment charge - - - - - - - 274 274 Profit for the period - - - - - - - 5,000 5,000 Fair value gain on cash flow hedges - - - 584 - - - - 584 Balance at 31 August 2015 11,231 551,612 100 1,406 (761) - (515,282) 23,594 71,900 ============ ======== ========= ========== ========= ========= ============ =============== ========= ======= Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total up share premium redemption reserve reserve reserve reserve earnings equity capital reserve GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 ------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- ------- Balance at 1 March 2015 11,231 551,612 100 822 (430) - (515,282) 18,320 66,373 Purchase of shares by EBT - - - - (331) - - - (331) Share-based payment charge 2 54 - - - - - 551 607 Profit for the year - - - - - - - 12,438 12,438 Translation of foreign operations - - - - - 1 - - 1 Fair value loss on cash flow hedges - - - (5,661) - - - - (5,661) Balance at 29 February 2016 11,233 551,666 100 (4,839) (761) 1 (515,282) 31,309 73,427 ============ ======== ========= ========== ========= ========= ============ =============== ========= =======
Unaudited consolidated cash flow statement
for the 6 months ended 31 August 2016
Note 6 months to 31 August 2016 6 months to 31 August 2015 Year to 29 February 2016 GBP000 GBP000 GBP000 ---------------------------------------- ---- -------------------------- -------------------------- ------------ Cash flows from operating activities Profit for the period 11,339 5,000 12,438 Adjustments for: Depreciation charges and amortisation 2,004 1,363 3,058 Share-based payment charge 453 274 607 Gain on sale of property, plant and equipment - - (2) Finance income (311) (294) (628) Tax expense 3,025 1,270 3,236 ---------------------------------------- ---- -------------------------- -------------------------- ------------ 16,510 7,613 18,709 Increase in inventories 8 (6,356) (7,959) (7,481) Increase in trade and other receivables 9 (4,451) (1,698) (3,243) Increase in trade and other payables 10 11,493 15,171 12,098 Cash generated from operations 17,196 13,127 20,083 Tax paid (1,965) (1,182) (2,627) Net cash inflow from operating activities 15,231 11,945 17,456 Cash flows from investing activities Acquisition of intangible assets (736) (628) (1,488) Acquisition of tangible property, plant and equipment (5,891) (5,076) (12,123) Proceeds from sale of property, plant and equipment - - 2 Finance income 171 304 619 Net cash used in investing activities (6,456) (5,400) (12,990) Cash flows from financing activities Purchase of own shares by EBT - (331) (331) Net cash used in financing activities - (331) (331) Increase in cash and cash equivalents 8,775 6,214 4,135 ======================================== ==== ========================== ========================== ============ Cash and cash equivalents at beginning of period 58,281 54,146 54,146 ---------------------------------------- ---- -------------------------- -------------------------- ------------ Cash and cash equivalents at end of period 67,056 60,360 58,281 ======================================== ==== ========================== ========================== ============
Notes
(forming part of the interim report and accounts)
1 Basis of preparation
The interim condensed financial statements for the six months ended 31 August 2016 have been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. The interim financial statements should be read in conjunction with the group's Annual Report and Accounts for the year ended 29 February 2016, prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"), IFRIC Interpretations and the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.
The interim condensed financial statements contained in this report are not audited and do not constitute statutory accounts within the meaning of Companies (Jersey) Law 1991. The Annual Report and Accounts for the year ended 29 February 2016 have been filed with the Jersey Companies Registry. The auditors' reports on those accounts was unqualified, did not include reference to any matters on which the auditors were required to report by exception under Companies (Jersey) Law 1991.
The group's business activities together with the factors that are likely to affect its future developments, performance and position are set out in the Business and Financial Reviews. The Financial Review describes the group's financial position, cash flows and bank facilities.
The interim financial statements are unaudited and were approved by the board of directors on 26 September 2016.
Going concern
The interim financial statements have been approved on the assumption that the group remains a going concern. The following paragraph summarises the issues and basis on which the directors have reached their conclusion.
The directors have reviewed the group's cash flow forecasts for a period exceeding 12 months from the date of authorisation of these interim financial statements. Following this review, the directors have formed a judgement that, at the time of approval of the interim financial statements, the group has sufficient resources to continue operating for the foreseeable future including the funding of necessary capital expenditure. For the reasons noted above, the directors continue to prepare the financial statements on a going concern basis.
Accounting policies
The interim financial statements have been prepared in accordance with the accounting policies set out in the group's Annual Report and Accounts for the year ended 29 February 2016.
2 Principal risks and uncertainties
The board considers the principal risks and uncertainties which could impact the group over the remaining six months of the financial year to 28 February 2017 to be unchanged from those set out in the group's Annual Report and Accounts for the year ended 29 February 2016, which in summary are: competition risk; fashion and consumer demands risk; systems and technical risk; supply chain risk; loss of key facilities; people risk; customer dissatisfaction; and financial risk. These are set out in detail on pages 19 to 21 of the group's Annual Report and Accounts for the year ended 29 February 2016, a copy of which is available on the group's website, www.boohooplc.com.
3 Segmental analysis 6 months to 31 August 2016 UK Rest of USA Rest of Total Europe world GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------- -------- ------- ------- ------- ---------- Revenue 81,696 14,713 15,226 15,681 127,316 Cost of sales (36,738) (7,020) (6,261) (6,831) (56,850) ----------------------- -------- ------- ------- ------- ---------- Gross profit 44,958 7,693 8,965 8,850 70,466 Distribution expenses (18,172) (3,296) (3,296) (4,712) (29,476) ----------------------- -------- ------- ------- ------- ---------- Segment result 26,786 4,397 5,669 4,138 40,990 Administrative expenses - - - - (28,389) Other income - - - - 1,452 ----------------------- -------- ------- ------- ------- ---------- Operating profit 14,053 Finance income - - - - 311 Profit before tax - - - - 14,364 ======================= ======== ======= ======= ======= ========== 6 months to 31 August 2015 UK Rest of USA Rest of Total Europe world GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------- -------- ------- ------- ------- -------- Revenue 59,128 10,403 7,901 13,352 90,784 Cost of sales (23,843) (4,482) (2,806) (5,114) (36,245) ----------------------- -------- ------- ------- ------- -------- Gross profit 35,285 5,921 5,095 8,238 54,539 Distribution expenses (13,165) (2,694) (1,973) (3,681) (21,513) ----------------------- -------- ------- ------- ------- -------- Segment result 22,120 3,227 3,122 4,557 33,026 Administrative expenses - - - - (27,409) Other income - - - - 359 -------- ------- ------- ------- -------- Operating profit 5,976 Finance income - - - - 294
Profit before tax - - - - 6,270 ======================= ======== ======= ======= ======= ======== Year to 29 February 2016 UK Rest of USA Rest of Total Europe world GBP000 GBP000 GBP000 GBP000 GBP000 ---------------------- -------- ------- ------- -------- -------- Revenue 130,096 22,630 16,523 26,145 195,394 Cost of sales (56,149) (9,955) (6,079) (10,300) (82,483) ----------------------- -------- ------- ------- -------- -------- Gross profit 73,947 12,675 10,444 15,845 112,911 Distribution expenses (27,838) (5,711) (3,938) (8,014) (45,501) ----------------------- -------- ------- ------- -------- -------- Segment result 46,109 6,964 6,506 7,831 67,410 Administrative expenses - - - - (53,756) Other income - - - - 1,392 ----------------------- -------- ------- ------- -------- -------- Operating profit 15,046 Finance income - - - - 628 Profit before tax - - - - 15,674 ======================= ======== ======= ======= ======== ======== 4 Other income 6 months to 31 August 2016 6 months to Year to 31 August 2015 29 February 2016 GBP000 GBP000 GBP000 --------------------------------------------------- --------------------------- ---------------- ------------------ Income from warehousing and customer services 1,452 - 1,033 Gift to group from director for benefit of employees - 359 359 --------------------------------------------------- --------------------------- ---------------- ------------------ 1,452 359 1,392 =================================================== =========================== ================ ================== 5 Profit before tax
Profit before tax is stated after charging:
6 months to 31 August 2016 6 months to 31 August 2015 Year to 29 February 2016 GBP000 GBP000 GBP000 ------------------------------------- --------------------------- --------------------------- ------------------ Operating lease rentals for buildings 383 374 712 Depreciation 1,129 653 1,551 Amortisation 875 710 1,507 Share-based payment charge 453 274 607 ====================================== =========================== =========================== ================== 6 Earnings per share
Basic earnings per share is calculated by dividing profit after tax by the weighted average number of shares in issue during the year. Own shares held by the Employee Benefit Trusts are eliminated from the weighted average number of shares. Diluted earnings per share is calculated by dividing the profit after tax by the weighted average number of shares in issue during the year, adjusted for potentially dilutive share options.
6 months to 31 August 2016 6 months to 31 August 2015 Year to 29 February 2016 ------------------------------------- --------------------------- --------------------------- ------------------ Weighted average shares in issue for basic earnings per share 1,119,210,360 1,118,810,227 1,118,429,548 Dilutive share options 17,655,714 22,737,018 11,761,758 -------------------------------------- --------------------------- --------------------------- ------------------ Weighted average shares in issue for diluted earnings per share 1,136,866,074 1,141,547,245 1,130,191,306 ====================================== =========================== =========================== ================== Earnings (GBP000) 11,339 5,000 12,438 Basic earnings per share 1.01p 0.45p 1.11p Diluted earnings per share 1.00p 0.44p 1.10p -------------------------------------- --------------------------- --------------------------- ------------------ 7 Deferred tax Depreciation in excess of capital Share-based payments Total allowances GBP000 GBP000 GBP000 ----------------------------------------- ---------------------------------------- --------------------- ------- At 1 March 2015 (12) 58 46 ---------------------------------------- --------------------- ------- At 31 August 2015 (12) 113 101 ---------------------------------------- --------------------- ------- At 29 February 2016 62 169 231 Recognised in income statement (30) 64 34 Recognised in other comprehensive income - 545 545 ------------------------------------------ ---------------------------------------- --------------------- ------- At 31 August 2016 32 778 810 ========================================== ======================================== ===================== ======= 8 Inventories At 31 At 31 At 29 August August February 2016 2015 2016 GBP000 GBP000 GBP000 ---------------- -------- -------- ---------- Finished goods 25,025 19,147 18,669 ================ ======== ======== ==========
The value of inventories included within cost of sales for the period was GBP56,800,000 (2015: GBP36,300,000; 2016: GBP82,187,000). The impairment provision was increased by GBP50,000 to GBP605,000 (2015: reduction of GBP55,000; 2016: increase of GBP296,000) and charged to the statement of comprehensive income.
9 Trade and other receivables At 31 At 31 At 29 August August February 2016 2015 2016 GBP000 GBP000 GBP000 --------------------------------------------- -------- -------- ---------- Amounts due from related party undertakings 685 42 613 Trade and other receivables 6,923 3,793 4,937 Prepayments and accrued income 4,084 1,697 1,546 --------------------------------------------- -------- -------- ---------- 11,692 5,532 7,096 ============================================= ======== ======== ========== 10 Trade and other payables At 31 At 31 At 29 August August February 2016 2015 2016 GBP000 GBP000 GBP000 ------------------------------- -------- -------- ---------- Trade payables 11,586 16,660 11,255 Amounts owed to related party undertakings - 20 17 Other payables 1,925 125 175 Accruals and deferred income 24,921 15,079 15,272 Taxes and social security payable 3,074 1,202 3,294 ------------------------------- -------- -------- ---------- 41,506 33,086 30,013 =============================== ======== ======== ========== 11 Share capital At 31 At 31 At 29
August August February 2016 2015 2016 GBP000 GBP000 GBP000 ------------------------------------- -------- -------- ---------- Authorised and fully paid 1,123,267,330 (2015: 1,123,132,260; 2016: 1,123,267,330) Ordinary shares of 1p each 11,233 11,231 11,233 ------------------------------------- -------- -------- ---------- 12 Related party transactions
There were no related party transactions during the six months to 31 August 2016 outside of the normal course of business.
13 Capital commitments
Capital expenditure contracted for at the period end but not incurred amounted to:
At 31 At 31 At 29 August August February 2016 2015 2016 GBP000 GBP000 GBP000 ------------------------------ -------- -------- ---------- Property, plant and equipment - 2,988 - ============================== ======== ======== ==========
Appendix to interim announcement - prior period revenues by region
Revenue by period for the six months ended 31 August 2016
GBP'000s 3m to 31 May 3m to 31 August 6m to 31 August ---------- ----------------------------- ------------------------------ -------------------------------- FY17 FY16 yoy yoy FY17 FY16 yoy yoy FY17 FY16 yoy yoy % % % % % % CER CER CER ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- ----- Total 58,222 41,322 41% 42% 69,094 49,462 40% 40% 127,316 90,784 40% 41% ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- ----- Sales by region ----------------------------------------- ------- ------- ----- ----- -------- ----- UK 37,396 26,273 42% 42% 44,300 32,855 35% 35% 81,696 59,128 38% 38% ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- ----- ROE 6,938 4,943 40% 43% 7,775 5,460 42% 40% 14,713 10,403 41% 41% ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- ----- USA 6,385 3,815 67% 60% 8,841 4,086 116% 100% 15,226 7,901 93% 81% ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- ----- ROW 7,503 6,291 19% 27% 8,178 7,061 16% 27% 15,681 13,352 17% 27% ---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- -----
Revenue by period for the year to 29 February 2016
GBP'000s 3m to 31 May 3m to 31 August 6m to 31 August ---------- ------------------------------ ------------------------------ ------------------------------ FY16 FY15 yoy yoy FY16 FY15 yoy yoy FY16 FY15 yoy yoy % % % % % % CER CER CER ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- Total 41,322 30,659 35% 37% 49,462 36,538 35% 40% 90,784 67,197 35% 39% ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- Sales by region ------------------------------------------ ------- ------- ----- ----- ------- ----- UK 26,273 20,686 27% 27% 32,855 24,919 32% 32% 59,128 45,605 30% 30% ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- ROE 4,943 3,891 27% 45% 5,460 4,828 13% 26% 10,403 8,719 19% 34% ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- USA 3,815 1,485 157% 143% 4,086 1,382 196% 181% 7,901 2,867 176% 161% ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- ROW 6,291 4,597 37% 48% 7,061 5,409 31% 55% 13,352 10,006 33% 52% ---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- ----- GBP'000s 4m to 31 December 2m to 29 February 12m to 29 February ---------- ------------------------------ ----------------------------- -------------------------------- FY16 FY15 yoy yoy FY16 FY15 yoy yoy FY16 FY15 yoy yoy % % % % % % CER CER CER ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- ----- Total 73,692 50,793 45% 49% 30,918 21,861 41% 40% 195,394 139,851 40% 42% ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- ----- Sales by region ------------------------------------------ ------- ------- ---- ----- -------- ----- UK 49,701 34,179 45% 45% 21,267 14,558 46% 46% 130,096 94,342 38% 38% ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- ----- ROE 8,588 6,464 33% 44% 3,639 2,903 25% 20% 22,630 18,086 25% 35% ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- ----- USA 5,962 2,639 126% 116% 2,659 1,504 77% 63% 16,523 7,009 136% 123% ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- ----- ROW 9,441 7,511 26% 41% 3,353 2,895 16% 17% 26,145 20,414 28% 42% ---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
CER in this appendix for the year ended 29 February 2016 is calculated using exchange rates prevailing during the year ending 29 February 2016.
Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate
PRESS RELEASE
This announcement contains inside information.
Cautionary Statement
Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
PRESENTATION
Certain statements included or incorporate by reference within this presentation may constitute "forward-looking statements" in respect of the Group's operations, performance, prospects and/or financial condition.
By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this presentation should be construed as a profit forecast.
This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares and other securities of the Company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser.
Statements in this presentation reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this presentation shall be governed by English Law. Nothing in this presentation shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNKAEPKEFF
(END) Dow Jones Newswires
September 27, 2016 02:00 ET (06:00 GMT)
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