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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Kingfisher Plc | LSE:KGF | London | Ordinary Share | GB0033195214 | ORD 15 5/7P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 3.70 | 1.43% | 261.60 | 262.30 | 262.50 | 264.20 | 257.80 | 259.00 | 8,271,973 | 16:35:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Misc General Mdse Stores | 12.98B | 345M | 0.1819 | 14.43 | 4.98B |
From May 2019 to May 2024
TIDMKGF
RNS Number : 2527K
Kingfisher PLC
20 September 2016
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED INCOME STATEMENT
Hot Features
Premium
Half year ended 31 July 2016 Half year ended 1 August 2015
------------------------------------ ------------------------------------
Before Exceptional Before Exceptional
exceptional items exceptional items
GBP millions Notes items (note 5) Total items (note 5) Total
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Sales 4 5,749 - 5,749 5,492 - 5,492
Cost of sales (3,623) - (3,623) (3,474) - (3,474)
------------ --------
Gross profit 2,126 - 2,126 2,018 - 2,018
Selling and distribution
expenses (1,386) 15 (1,371) (1,360) (151) (1,511)
Administrative expenses (326) (1) (327) (288) - (288)
Other income 9 3 12 15 160 175
Share of post-tax results of
joint ventures and associates (1) - (1) - - -
Operating profit 422 17 439 385 9 394
Finance costs (13) (6) (19) (11) - (11)
Finance income 7 - 7 3 - 3
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Net finance costs 6 (6) (6) (12) (8) - (8)
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Profit before taxation 416 11 427 377 9 386
Income tax expense 7 (104) (2) (106) (97) 29 (68)
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Profit for the period 312 9 321 280 38 318
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Earnings per share 8
Basic 14.1p 13.6p
Diluted 14.1p 13.6p
Adjusted basic 13.6p 12.3p
Adjusted diluted 13.6p 12.3p
Underlying basic 14.2p 12.3p
Underlying diluted 14.2p 12.3p
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Reconciliation of non-GAAP underlying and adjusted pre-tax profit:
--------------------------------------------------------------------------------------------------------------------
Underlying pre-tax profit 436 384
Transformation costs before exceptional items (18) -
-------------------------------------------------------------------- -------- ------------ ------------ --------
Adjusted pre-tax profit 418 384
B&Q China operating loss - (4)
Financing fair value remeasurements (2) (3)
Exceptional items 11 9
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
Profit before taxation 427 386
-------------------------------- ------ ------------ ------------ -------- ------------ ------------ --------
The proposed interim ordinary dividend for the period ended 31 July 2016 is 3.25p per share.
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED INCOME STATEMENT
Year ended 31 January 2016
Before Exceptional
exceptional items
GBP millions Notes items (note 5) Total
------------------------------------------------------ ------ ------------ ------------ --------
Sales 4 10,441 - 10,441
Cost of sales (6,545) - (6,545)
Gross profit 3,896 - 3,896
Selling and distribution expenses (2,666) (308) (2,974)
Administrative expenses (567) (15) (582)
Other income 26 157 183
Share of post-tax results of joint ventures and associates 3 - 3
Operating profit 692 (166) 526
Finance costs (22) - (22)
Finance income 8 - 8
------------------------------------------------------ ------ ------------ ------------ --------
Net finance costs 6 (14) - (14)
------------------------------------------------------ ------ ------------ ------------ --------
Profit before taxation 678 (166) 512
Income tax expense 7 (167) 67 (100)
------------------------------------------------------ ------ ------------ ------------ --------
Profit for the year 511 (99) 412
------------------------------------------------------ ------ ------------ ------------ --------
Earnings per share 8
Basic 17.8p
Diluted 17.8p
Adjusted basic 22.0p
Adjusted diluted 22.0p
Underlying basic 22.0p
Underlying diluted 22.0p
------------------------------------------------------ ------ ------------ ------------ --------
Reconciliation of non-GAAP underlying and adjusted pre-tax profit:
----------------------------------------------------------------------------------------------------
Underlying pre-tax profit 686
Transformation costs before exceptional items -
------------------------------------------------------ ------ ------------ ------------ --------
Adjusted pre-tax profit 686
B&Q China operating loss (4)
Financing fair value remeasurements (4)
Exceptional items (166)
------------------------------------------------------ ------ ------------ ------------ --------
Profit before taxation 512
------------------------------------------------------ ------ ------------ ------------ --------
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Half year ended Half year ended Year ended
GBP millions Notes 31 July 2016 1 August 2015 31 January 2016
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Profit for the period 321 318 412
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Actuarial (losses)/gains on post-employment benefits 11 (87) (72) 19
Tax on items that will not be reclassified 29 23 (8)
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Total items that will not be reclassified
subsequently to profit or loss (58) (49) 11
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Currency translation differences
Group 304 (136) 1
Joint ventures and associates 2 (3) (3)
Transferred to income statement - (7) (7)
Cash flow hedges
Fair value gains/(losses) 26 (21) 24
Gains transferred to inventories (18) (30) (50)
Available-for-sale financial assets
Fair value gains 5 - 2
Transferred to income statement 16 (7) - -
Tax on items that may be reclassified 1 12 8
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Total items that may be reclassified
subsequently to profit or loss 313 (185) (25)
----------------------------------------------------- -------- ---------------- ---------------- -----------------
Other comprehensive income for the period 255 (234) (14)
Total comprehensive income for the period 576 84 398
----------------------------------------------------- -------- ---------------- ---------------- -----------------
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to equity shareholders
of the Company
-----------------------------------------------------------------------------------
Other
Own reserves
Share Share shares Retained (note Non-controlling Total
GBP millions capital premium held earnings 13) Total interests equity
--------------------- ---------- ---------- -------- ----------- ---------- ------ ---------------- --------
At 1 February 2016 361 2,218 (24) 3,637 (6) 6,186 - 6,186
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
Profit for the period - - - 321 - 321 - 321
Other comprehensive
income
for the period - - - (58) 313 255 - 255
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
Total comprehensive
income
for the period - - - 263 313 576 - 576
Share-based
compensation - - - 9 - 9 - 9
New shares issued
under
share schemes - 1 - - - 1 - 1
Own shares issued
under
share schemes - - 6 (5) - 1 - 1
Purchase of own
shares
for cancellation (6) - - (111) 6 (111) - (111)
Dividends (note 9) - - - (157) - (157) - (157)
At 31 July 2016 355 2,219 (18) 3,636 313 6,505 - 6,505
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
At 1 February 2015 369 2,214 (26) 3,652 11 6,220 10 6,230
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
Profit for the period - - - 318 - 318 - 318
Other comprehensive
income
for the period - - - (49) (185) (234) - (234)
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
Total comprehensive
income
for the period - - - 269 (185) 84 - 84
Disposal of B&Q China
(note 16) - - - - - - (10) (10)
Share-based
compensation - - - 7 - 7 - 7
New shares issued
under
share schemes - 1 - - - 1 - 1
Own shares issued
under
share schemes - - 15 (14) - 1 - 1
Purchase of own
shares
for cancellation (6) - - (111) 6 (111) - (111)
Purchase of own
shares
for ESOP trust - - (11) - - (11) - (11)
Dividends (note 9) - - - (160) - (160) - (160)
At 1 August 2015 363 2,215 (22) 3,643 (168) 6,031 - 6,031
---------------------- --------- ---------- -------- ----------- ---------- ------ ---------------- --------
At 1 February 2015 369 2,214 (26) 3,652 11 6,220 10 6,230
---------------------------- ---- ------ ----- ------ ----- ------ ----- ------
Profit for the year - - - 412 - 412 - 412
Other comprehensive income
for the year - - - 11 (25) (14) - (14)
---------------------------- ---- ------ ----- ------ ----- ------ ----- ------
Total comprehensive income
for the year - - - 423 (25) 398 - 398
Disposal of B&Q China
(note 16) - - - - - - (10) (10)
Share-based compensation - - - 11 - 11 - 11
New shares issued under
share schemes - 4 - - - 4 - 4
Own shares issued under
share schemes - - 18 (17) - 1 - 1
Purchase of own shares
for cancellation (8) - - (200) 8 (200) - (200)
Purchase of own shares
for ESOP trust - - (16) - - (16) - (16)
Dividends (note 9) - - - (232) - (232) - (232)
At 31 January 2016 361 2,218 (24) 3,637 (6) 6,186 - 6,186
---------------------------- ---- ------ ----- ------ ----- ------ ----- ------
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED BALANCE SHEET
GBP millions Notes At 31 July 2016 At 1 August 2015 At 31 January 2016
---------------------------------------------- ------ ---------------- ----------------- -------------------
Non-current assets
Goodwill 2,399 2,412 2,397
Other intangible assets 10 290 270 276
Property, plant and equipment 10 3,433 3,088 3,212
Investment property 10 23 53 25
Investments in joint ventures and associates 24 19 23
B&Q China investment 16 - 60 62
Post-employment benefits 11 178 140 246
Deferred tax assets 17 9 11
Derivative assets 12 51 31 43
Other receivables 7 7 7
---------------------------------------------- ------ ---------------- ----------------- -------------------
6,422 6,089 6,302
Current assets
Inventories 2,154 2,064 1,957
Trade and other receivables 566 558 568
Derivative assets 12 76 33 56
Current tax assets 11 7 5
Short-term deposits - 123 70
Cash and cash equivalents 1,134 537 730
Assets held for sale 5 - 6
---------------------------------------------- ------ ---------------- ----------------- -------------------
3,946 3,322 3,392
---------------------------------------------- ------ ---------------- ----------------- -------------------
Total assets 10,368 9,411 9,694
Current liabilities
Trade and other payables (2,733) (2,431) (2,369)
Borrowings 12 (132) (102) (138)
Derivative liabilities 12 (13) (17) (6)
Current tax liabilities (116) (97) (66)
Provisions (95) (40) (69)
(3,089) (2,687) (2,648)
Non-current liabilities
Other payables (52) (62) (53)
Borrowings 12 (181) (168) (179)
Deferred tax liabilities (322) (276) (333)
Provisions (119) (106) (208)
Post-employment benefits 11 (100) (81) (87)
(774) (693) (860)
---------------------------------------------- ------ ---------------- ----------------- -------------------
Total liabilities (3,863) (3,380) (3,508)
---------------------------------------------- ------ ---------------- ----------------- -------------------
Net assets 6,505 6,031 6,186
---------------------------------------------- ------ ---------------- ----------------- -------------------
Equity
Share capital 355 363 361
Share premium 2,219 2,215 2,218
Own shares held in ESOP trust (18) (22) (24)
Retained earnings 3,636 3,643 3,637
Other reserves 13 313 (168) (6)
---------------------------------------------- ------ ---------------- ----------------- -------------------
Total equity 6,505 6,031 6,186
---------------------------------------------- ------ ---------------- ----------------- -------------------
The interim financial report was approved by the Board of Directors on 19 September 2016 and signed on its behalf by:
Véronique Laury, Chief Executive Karen Witts, Chief Financial Officer Officer
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED CASH FLOW STATEMENT
Half year ended Half year ended Year ended
GBP millions Notes 31 July 2016 1 August 2015 31 January 2016
------------------------------------------------------- ------ ---------------- ---------------- -----------------
Operating activities
Cash generated by operations 14 697 531 931
Income tax paid (63) (65) (118)
Net cash flows from operating activities 634 466 813
Investing activities
Purchase of property, plant and equipment and
intangible assets (141) (177) (333)
Disposal of property, plant and equipment, investment
property and assets held for sale 5 2 25
Disposal of property company 16 - 18 18
Disposal of B&Q China: 16
Proceeds (net of costs and cash disposed) 63 105 102
Deposit repaid - (12) (12)
Decrease/(increase) in short-term deposits 70 (75) (22)
Interest received 3 1 3
Dividends received from joint ventures and associates - 6 5
Net cash flows from investing activities - (132) (214)
Financing activities
Interest paid (6) (6) (12)
Interest element of finance lease rental payments (1) (2) (3)
Repayment of bank loans (2) (1) (1)
Repayment of fixed term debt (47) - -
Receipt on financing derivatives 10 - -
Capital element of finance lease rental payments (7) (6) (13)
New shares issued under share schemes 1 1 4
Own shares issued under share schemes 1 1 1
Purchase of own shares for ESOP trust - (11) (16)
Purchase of own shares for cancellation (126) (139) (200)
Ordinary dividends paid to equity shareholders of the
Company 9 (157) (160) (232)
Net cash flows from financing activities (334) (323) (472)
Net increase in cash and cash equivalents and bank
overdrafts, including amounts classified
as held for sale 300 11 127
Cash and cash equivalents and bank overdrafts,
including amounts classified as held for sale,
at beginning of period 654 527 527
Exchange differences 63 (44) - ------------------------------------------------------- ------ ---------------- ---------------- ----------------- Cash and cash equivalents and bank overdrafts at end of period 15 1,017 494 654 ------------------------------------------------------- ------ ---------------- ---------------- -----------------
KINGFISHER PLC
2016/17 INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. General information
Kingfisher plc ('the Company'), its subsidiaries, joint ventures and associates (together 'the Group') supply home improvement products and services through a network of retail stores and other channels, located mainly in the United Kingdom and continental Europe.
The Company is incorporated in the United Kingdom and is listed on the London Stock Exchange. The address of its registered office is 3 Sheldon Square, Paddington, London W2 6PX.
The interim financial report does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Audited statutory accounts for the year ended 31 January 2016 were approved by the Board of Directors on 23 March 2016 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under sections 498(2) or (3) of the Companies Act 2006. The interim financial report has been reviewed, not audited, and was approved by the Board of Directors on 19 September 2016.
2. Basis of preparation
The interim financial report for the six months ended 31 July 2016 ('the half year') has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services Authority and with IAS 34, 'Interim Financial Reporting', as adopted by the European Union. It should be read in conjunction with the annual financial statements for the year ended 31 January 2016, which have been prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union. The consolidated income statement and related notes represent results for continuing operations, there being no discontinued operations in the periods presented. Where comparatives are given, '2015/16' refers to the 26 weeks ended 1 August 2015.
The Directors of Kingfisher plc, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed consolidated financial statements for the half year ended 31 July 2016.
There have been no changes in estimates of amounts reported in prior periods that have had a material effect in the current period.
Principal rates of exchange against Sterling
Half year ended Half year ended Year ended
31 July 2016 1 August 2015 31 January 2016
--------------------- --------------------- -------------------
Average Period end Average Period end Average Year end
rate rate rate rate rate rate
---------------- -------- ----------- -------- ----------- -------- ---------
Euro 1.26 1.19 1.38 1.41 1.38 1.31
US Dollar 1.41 1.31 1.53 1.57 1.52 1.42
Polish Zloty 5.51 5.18 5.70 5.87 5.78 5.78
Russian Rouble 96.27 87.74 86.58 95.18 94.54 107.52
---------------- -------- ----------- -------- ----------- -------- ---------
Risks and uncertainties
The principal risks and uncertainties to which the Group is exposed are set out on pages 31-35 of the Kingfisher plc Annual Report and Accounts for the year ended 31 January 2016 and remain unchanged. As noted in the Financial Review, the Group is monitoring developments following the EU referendum, which has resulted in uncertainty for the UK economic outlook. The weakening of Sterling against other currencies following the EU referendum has had a beneficial impact on translation of the Group's reported results, cash flows and net cash position. UK earnings have not been significantly impacted in the period due to foreign currency hedging in place prior to the referendum. The weakening of Sterling has also resulted in significant foreign exchange gains recognised in other comprehensive income from the retranslation of the Group's overseas businesses' net assets and an increase in the value of foreign exchange contracts hedging US dollar denominated inventory purchases for our UK businesses. The fall in long-term bond yields has resulted in a lower discount rate used to value the UK defined benefit pension scheme obligation, increasing the gross liability, but this has been largely offset by the growth in asset values over the period due to interest rate hedging in place. Lower discount rates have also increased the balance, before other movements, of the UK restructuring provisions, resulting in an exceptional interest charge.
Use of non-GAAP measures
In the reporting of financial information, the Group uses certain measures that are not required under IFRS, the generally accepted accounting principles ('GAAP') under which the Group reports. Kingfisher believes that adjusted sales, retail profit, underlying pre-tax profit, adjusted pre-tax profit, effective tax rate, underlying earnings per share and adjusted earnings per share provide additional useful information on performance and trends to shareholders. These and other non-GAAP measures such as net cash are used by Kingfisher for internal performance analysis and incentive compensation arrangements for employees. The terms 'retail profit', 'exceptional items', 'transformation costs', 'underlying', 'adjusted', 'effective tax rate' and 'net cash' are not defined terms under IFRS and may therefore not be comparable with similarly titled measures reported by other companies. They are not intended to be a substitute for, or superior to, GAAP measures.
Retail profit is defined as continuing operating profit before central costs, the Group's share of interest and tax of joint ventures and associates, transformation costs, exceptional items and amortisation of acquisition intangibles. It includes the sustainable benefits of the transformation programme. 2015/16 comparatives exclude B&Q China's operating results. Central costs principally comprise the costs of the Group's head office before transformation costs.
The separate reporting of non-recurring exceptional items, which are presented as exceptional within their relevant income statement category, helps provide an indication of the Group's ongoing business performance. The principal items which are included as exceptional items are:
-- non-trading items included in operating profit such as profits and losses on the disposal, closure or impairment of subsidiaries, joint ventures, associates and investments which do not form part of the Group's trading activities;
-- profits and losses on the disposal of properties and impairment losses on non-operational assets; and
-- the costs of significant restructuring, including certain restructuring costs of the Group's five-year transformation programme launched in 2016/17, and incremental acquisition integration costs.
The term 'adjusted' refers to the relevant measure being reported for continuing operations excluding exceptional items, financing fair value remeasurements, amortisation of acquisition intangibles, related tax items and prior year tax items (including the impact of changes in tax rates on deferred tax). 2015/16 comparatives exclude B&Q China's operating results. Financing fair value remeasurements represent changes in the fair value of financing derivatives, excluding interest accruals, offset by fair value adjustments to the carrying amount of borrowings and other hedged items under fair value hedge relationships. Financing derivatives are those that relate to hedged items of a financing nature.
The term 'underlying' refers to the relevant adjusted measure being reported before non-exceptional transformation costs. Non-exceptional transformation costs represent the short-term additional costs that arise only as a result of the transformation programme launched in 2016/17, which either because of their nature or the length of the period over which they are incurred are not considered as exceptional items. These costs principally relate to the unified and unique offer range implementation and the digital strategic initiative. The separate reporting of such costs (in addition to exceptional items) helps provide an indication of the Group's underlying business performance, which includes the sustainable benefits of the transformation programme.
The effective tax rate is calculated as continuing income tax expense excluding tax on exceptional items and adjustments in respect of prior years and the impact of changes in tax rates on deferred tax, divided by continuing profit before taxation excluding exceptional items.
Net cash comprises cash and cash equivalents and short-term deposits less borrowings and financing derivatives (excluding accrued interest). It excludes balances classified as assets and liabilities held for sale.
3. Accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the year ended 31 January 2016, as described in note 2 of those financial statements.
Taxes on income for interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
The most significant areas of accounting estimates and judgements are set out in note 3 of the annual financial statements for the year ended 31 January 2016 and remain unchanged.
4. Segmental analysis
Income statement
Half year ended 31 July 2016
------------------------------------------------------
Other International
------------------------------------------------------------ ------------- ------- ---------------------- ------
GBP millions UK & Ireland France Poland Other Total
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Adjusted sales 2,609 2,175 587 378 5,749
B&Q China sales -
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Sales 2,609 2,175 587 378 5,749
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Retail profit 211 187 73 (7) 464
Central costs (22)
Share of interest and tax of joint ventures and associates (2)
Transformation costs before exceptional items (18)
Exceptional items 17
Operating profit 439
Net finance costs (12)
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Profit before taxation 427
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Half year ended 1 August 2015
------------------------------------------------------
Other International
------------------------------------------------------------ ------------- ------- ---------------------- ------
GBP millions UK & Ireland France Poland Other Total
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Adjusted sales 2,527 1,976 508 371 5,382
B&Q China sales 110
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Sales 5,492
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Retail profit 194 167 53 (4) 410
Central costs (19)
Share of interest and tax of joint ventures and associates (2)
B&Q China operating loss (4)
Exceptional items 9
Operating profit 394
Net finance costs (8)
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Profit before taxation 386
------------------------------------------------------------ ------------- ------- ----------- --------- ------
Year ended 31 January 2016
-------------------------------------------------------
Other International
------------------------------------------------------------ ------------- ------- ---------------------- -------
GBP millions UK & Ireland France Poland Other Total
------------------------------------------------------------ ------------- ------- ----------- --------- -------
Adjusted sales 4,853 3,786 987 705 10,331
B&Q China sales 110
------------------------------------------------------------ ------------- ------- ----------- --------- -------
Sales 10,441
------------------------------------------------------------ ------------- ------- ----------- --------- -------
Retail profit 326 311 113 (4) 746
Central costs (45)
Share of interest and tax of joint ventures and associates (5)
B&Q China operating loss (4)
Exceptional items (166)
Operating profit 526
Net finance costs (14)
------------------------------------------------------------ ------------- ------- ----------- --------- -------
Profit before taxation 512
------------------------------------------------------------ ------------- ------- ----------- --------- -------
Balance sheet
At 31 July 2016
------------------------------------------------------
Other International
--------------------- ------------- ------- ---------------------- ------
GBP millions UK & Ireland France Poland Other Total
--------------------- ------------- ------- ----------- --------- ------
Segment assets 1,183 1,341 515 376 3,415
Central liabilities (207)
Goodwill 2,399
Net cash 898
--------------------- ------------- ------- ----------- --------- ------
Net assets 6,505
--------------------- ------------- ------- ----------- --------- ------
At 1 August 2015
------------------------------------------------------
Other International
---------------------- ------------- ------- ---------------------- ------
GBP millions UK & Ireland France Poland Other Total
---------------------- ------------- ------- ----------- --------- ------
Segment assets 1,343 1,162 463 340 3,308
B&Q China investment 60
Central liabilities (184)
Goodwill 2,412
Net cash 435
---------------------- ------------- ------- ----------- --------- ------
Net assets 6,031
---------------------- ------------- ------- ----------- --------- ------
At 31 January 2016
------------------------------------------------------
Other International
---------------------- ------------- ------- ---------------------- ------
GBP millions UK & Ireland France Poland Other Total ---------------------- ------------- ------- ----------- --------- ------ Segment assets 1,264 1,313 476 347 3,400 B&Q China investment 62 Central liabilities (219) Goodwill 2,397 Net cash 546 ---------------------- ------------- ------- ----------- --------- ------ Net assets 6,186 ---------------------- ------------- ------- ----------- --------- ------
The operating segments disclosed above are based on the information reported internally to the Board of Directors and Group Executive, representing the geographical areas in which the Group operates. The Group only has one business segment being the supply of home improvement products and services.
The 'Other International' segment consists of Poland, Spain, Portugal, Germany, Russia, Romania and the joint venture Koçta in Turkey. Poland has been shown separately due to its significance.
Central costs principally comprise the costs of the Group's head office before transformation costs. Central liabilities comprise unallocated head office and other central items including pensions, insurance, interest and tax.
The Group's sales, although generally not highly seasonal on a half-yearly basis, do increase over the Easter period and during the summer months leading to slightly higher sales usually being recognised in the first half of the year. In the half year ended 31 July 2016, France operating costs were increased by GBP9m due to a change in legislation relating to a levy (TASCOM) which has resulted in the levy being recognised evenly across the year rather than only in the second half. Comparatives for 2015/16 have not been restated.
5. Exceptional items
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
---------------------------------------------------------------- ---------------- ---------------- ----------------
Included within selling and distribution expenses
UK & Ireland and continental Europe restructuring 15 (151) (305)
Brico Dépôt Romania impairment - - (3)
15 (151) (308)
---------------------------------------------------------------- ---------------- ---------------- ----------------
Included within administrative expenses
Transformation exceptional costs (1) - -
Brico Dépôt Romania impairment - - (15)
---------------------------------------------------------------- ---------------- ---------------- ----------------
(1) - (15)
Included within other income
Profit on disposal of B&Q China 3 143 143
Profit on disposal of property and other companies - 16 13
Disposal of properties and non-operational asset losses - 1 1
3 160 157
---------------------------------------------------------------- ---------------- ---------------- ----------------
Included within net finance costs
UK & Ireland and continental Europe restructuring - unwinding
of discount on provisions (6) - -
(6) - -
Exceptional items before tax 11 9 (166)
Exceptional tax items (2) 29 67
Exceptional items 9 38 (99)
---------------------------------------------------------------- ---------------- ---------------- ----------------
Current period exceptional items include a GBP15m net credit principally due to the reversal of a restructuring provision relating to the B&Q store closure programme in the UK, following the announcement that one of the stores originally earmarked for closure would remain open, and a GBP6m interest charge relating to the reduction in discount rate used to measure the overall UK provision. In the prior period a charge of GBP151m (GBP305m for the full year) was recognised relating principally to the closure of B&Q stores and loss-making stores in continental Europe.
Transformation exceptional costs of GBP1m have been recorded in the period relating to the initial costs of setting up the Group's new offer and supply chain organisation.
A profit of GBP3m on disposal was recognised on disposal of the Group's remaining 30% stake in B&Q China - refer to note 16 for further information. In the prior period a profit of GBP143m was recorded on disposal of the Group's controlling 70% stake.
6. Net finance costs
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
-------------------------------------------------------- ----------------- ---------------- ----------------
Bank overdrafts and bank loans (5) (5) (8)
Fixed term debt (1) (1) (3)
Finance leases (1) (2) (3)
Financing fair value remeasurements (2) (3) (4)
Unwinding of discount on provisions (7) - (1)
Other interest payable (3) - (3)
Finance costs (19) (11) (22)
--------------------------------------------------------- ---------------- ---------------- ----------------
Cash and cash equivalents and short-term deposits 3 1 3
Net interest income on defined benefit pension schemes 4 2 5
Finance income 7 3 8
--------------------------------------------------------- ---------------- ---------------- ----------------
Net finance costs (12) (8) (14)
--------------------------------------------------------- ---------------- ---------------- ----------------
The GBP7m charge relating to the unwinding of discount on provisions includes a GBP6m exceptional charge relating to the restructuring provisions for the UK & Ireland and continental Europe businesses.
7. Income tax expense
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
------------------------------------------------ ---------------- ---------------- -----------------
UK corporation tax
Current tax on profits for the period (44) (15) (7)
Adjustments in respect of prior years - - 4
------------------------------------------------ ---------------- ---------------- -----------------
(44) (15) (3)
------------------------------------------------ ---------------- ---------------- -----------------
Overseas tax
Current tax on profits for the period (65) (59) (117)
Adjustments in respect of prior years - 1 7
(65) (58) (110)
------------------------------------------------ ---------------- ---------------- -----------------
Deferred tax
Current period (1) 5 14
Adjustments in respect of prior years 2 - -
Adjustments in respect of changes in tax rates 2 - (1)
3 5 13
------------------------------------------------ ---------------- ---------------- -----------------
Income tax expense (106) (68) (100)
------------------------------------------------ ---------------- ---------------- -----------------
The effective rate of tax on profit before exceptional items and excluding prior year tax adjustments and the impact of changes in tax rates on deferred tax is 26% (2015/16: 26%), representing the best estimate of the effective rate for the full financial year. The effective tax rate on the same basis for the year ended 31 January 2016 was 26%. Exceptional tax items for the current period amount to a charge of GBP2m, none of which relates to prior year items (2015/16: GBP29m credit, none of which related to prior year items). Exceptional tax items for the year ended 31 January 2016 amounted to a credit of GBP67m, GBP1m of which related to prior year items.
8. Earnings per share
Half year ended Half year ended Year ended
Pence 31 July 2016 1 August 2015 31 January 2016
------------------------------------------------------ ---------------- ---------------- ----------------
Basic earnings per share 14.1 13.6 17.8
Effect of dilutive share options - - -
Diluted earnings per share 14.1 13.6 17.8
------------------------------------------------------ ---------------- ---------------- ----------------
Basic earnings per share 14.1 13.6 17.8
B&Q China operating loss - 0.2 0.2
Exceptional items before tax (0.5) (0.4) 7.2
Tax on exceptional and prior year items (0.1) (1.2) (3.3)
Financing fair value remeasurements 0.1 0.2 0.2
Tax on financing fair value remeasurements - (0.1) (0.1)
------------------------------------------------------ ---------------- ---------------- ----------------
Adjusted basic earnings per share 13.6 12.3 22.0
Transformation costs before exceptional items 0.8 - -
Tax on transformation costs before exceptional items (0.2) - -
------------------------------------------------------ ---------------- ---------------- ----------------
Underlying basic earnings per share 14.2 12.3 22.0
------------------------------------------------------ ---------------- ---------------- ----------------
Diluted earnings per share 14.1 13.6 17.8
B&Q China operating loss - 0.2 0.2
Exceptional items before tax (0.5) (0.4) 7.2
Tax on exceptional and prior year items (0.1) (1.2) (3.3)
Financing fair value remeasurements 0.1 0.2 0.2
Tax on financing fair value remeasurements - (0.1) (0.1)
------------------------------------------------------ ---------------- ---------------- ----------------
Adjusted diluted earnings per share 13.6 12.3 22.0
Transformation costs before exceptional items 0.8 - -
Tax on transformation costs before exceptional items (0.2) - -
------------------------------------------------------ ---------------- ---------------- ----------------
Underlying diluted earnings per share 14.2 12.3 22.0
------------------------------------------------------ ---------------- ---------------- ----------------
The calculation of basic and diluted earnings per share is based on the profit for the period attributable to equity shareholders of the Company. A reconciliation of statutory earnings to adjusted and underlying earnings is set out below:
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
------------------------------------------------------ ---------------- ---------------- ----------------
Earnings 321 318 412
B&Q China operating loss - 4 4
Exceptional items before tax (11) (9) 166
Tax on exceptional and prior year items (2) (30) (76)
Financing fair value remeasurements 2 3 4
Tax on financing fair value remeasurements - (1) (1)
------------------------------------------------------ ---------------- ---------------- ----------------
Adjusted earnings 310 285 509
Transformation costs before exceptional items 18 - -
Tax on transformation costs before exceptional items (5) - -
------------------------------------------------------ ---------------- ---------------- ----------------
Underlying earnings 323 285 509
------------------------------------------------------ ---------------- ---------------- ----------------
The weighted average number of shares in issue during the period, excluding those held in the Employee Share Ownership Plan Trust ('ESOP trust'), is 2,271m (2015/16: 2,327m). The diluted weighted average number of shares in issue during the period is 2,275m (2015/16: 2,329m). For the year ended 31 January 2016, the weighted average number of shares in issue was 2,311m and the diluted weighted average number of shares in issue was 2,319m.
9. Dividends
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
---------------------------------------------------------------- ---------------- ---------------- ----------------
Dividends to equity shareholders of the Company
Ordinary final dividend for the year ended 31 January 2016 of
6.92p per share 157 - -
Ordinary interim dividend for the year ended 31 January 2016 of
3.18p per share - - 72
Ordinary final dividend for the year ended 31 January 2015 of
6.85p per share - 160 160
157 160 232
---------------------------------------------------------------- ---------------- ---------------- ----------------
The proposed ordinary interim dividend for the period ended 31 July 2016 is 3.25p per share.
10. Property, plant and equipment, investment property and other intangible assets
Additions to the cost of property, plant and equipment, investment property and other intangible assets are GBP136m (2015/16: GBP178m) and for the year ended 31 January 2016 were GBP331m. Disposals in net book value of property, plant and equipment, investment property, property assets held for sale and other intangible assets are GBP5m (2015/16: GBP2m) and for the year ended 31 January 2016 were GBP28m.
Capital commitments contracted but not provided for at the end of the period are GBP36m (2015/16: GBP50m) and at 31 January 2016 were GBP46m.
11. Post-employment benefits
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
Net surplus in schemes at beginning of period 159 112 112
Current service cost (5) (4) (8)
Administration costs (2) (2) (4)
Net interest income 4 2 5
Net actuarial (losses)/gains (87) (72) 19
Contributions paid by employer 18 18 37
Exchange differences (9) 5 (2)
----------------------------------------------- ---------------- ---------------- ----------------
Net surplus in schemes at end of period 78 59 159
----------------------------------------------- ---------------- ---------------- ----------------
UK 178 140 246 Overseas (100) (81) (87) ----------------------------------------- ------ ----- ----- Net surplus in schemes at end of period 78 59 159 ----------------------------------------- ------ ----- ----- Present value of defined benefit obligations (3,075) (2,637) (2,476) Fair value of scheme assets 3,153 2,696 2,635 ---------------------------------------------- -------- -------- -------- Net surplus in schemes at end of period 78 59 159 ---------------------------------------------- -------- -------- --------
The assumptions used in calculating the costs and obligations of the Group's defined benefit pension schemes are set by the Directors after consultation with independent professionally qualified actuaries. The assumptions are based on the conditions at the time and changes in these assumptions can lead to significant movements in the estimated obligations, as illustrated in the sensitivity analysis provided in note 27 of the annual financial statements for the year ended 31 January 2016.
A key assumption in valuing the pension obligation is the discount rate. Accounting standards require this to be set based on market yields on high quality corporate bonds at the balance sheet date. The UK scheme discount rate is derived using a single equivalent discount rate approach, based on the yields available on a portfolio of high-quality Sterling corporate bonds with the same duration as that of the scheme liabilities.
The principal financial assumptions for the UK scheme, being the Group's principal defined benefit scheme, are set out below:
At At At
Annual % rate 31 July 2016 1 August 2015 31 January 2016
----------------- ------------- -------------- ----------------
Discount rate 2.4 3.6 3.6
Price inflation 2.9 3.3 3.1
----------------- ------------- -------------- ----------------
12. Financial instruments
The Group holds the following derivative financial instruments at fair value:
At At At
GBP millions 31 July 2016 1 August 2015 31 January 2016
------------------------------------ ------------- -------------- ----------------
Cross currency interest rate swaps 52 42 56
Foreign exchange contracts 75 22 43
------------------------------------ ------------- -------------- ----------------
Derivative assets 127 64 99
------------------------------------ ------------- -------------- ----------------
At At At
GBP millions 31 July 2016 1 August 2015 31 January 2016
---------------------------- ------------- -------------- ----------------
Foreign exchange contracts (13) (17) (6)
---------------------------- ------------- -------------- ----------------
Derivative liabilities (13) (17) (6)
---------------------------- ------------- -------------- ----------------
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair value measurements are all made using observable market rates of interest, foreign exchange and credit risk. All the derivatives held by the Group at fair value are considered to have fair values determined by 'level 2' inputs as defined by the fair value hierarchy of IFRS 13 'Fair value measurement', representing significant observable inputs other than quoted prices in active markets for identical assets or liabilities. There are no non-recurring fair value measurements nor have there been any transfers of assets or liabilities between levels of the fair value hierarchy.
Except as detailed in the following table of borrowings, the directors consider that the carrying amounts of financial instruments recorded at amortised cost in the financial statements are approximately equal to their fair values. Where available, market values have been used to determine the fair values of borrowings. Where market values are not available or are not reliable, fair values have been calculated by discounting cash flows at prevailing interest and foreign exchange rates. This has resulted in 'level 2' inputs for borrowings as defined by the IFRS 13 fair value hierarchy.
Carrying amount
------------- -------------- ----------------
At At At
GBP millions 31 July 2016 1 August 2015 31 January 2016
----------------- ------------- -------------- ----------------
Bank overdrafts 117 43 76
Bank loans 9 10 10
Fixed term debt 146 170 185
Finance leases 41 47 46
----------------- ------------- -------------- ----------------
Borrowings 313 270 317
----------------- ------------- -------------- ----------------
Fair value
------------- -------------- ----------------
At At At
GBP millions 31 July 2016 1 August 2015 31 January 2016
----------------- ------------- -------------- ----------------
Bank overdrafts 117 43 76
Bank loans 9 10 11
Fixed term debt 151 177 192
Finance leases 52 59 56
----------------- ------------- -------------- ----------------
Borrowings 329 289 335
----------------- ------------- -------------- ----------------
13. Other reserves
Cash flow Available-for- sale
GBP millions Translation reserve hedge reserve reserve Other Total
------------------------------------ -------------------- --------------- ----------------------- ------ --------
At 1 February 2016 (205) 25 2 172 (6)
------------------------------------ -------------------- --------------- ----------------------- ------ --------
Currency translation differences
Group 304 - - - 304
Joint ventures and associates 2 - - - 2
Cash flow hedges
Fair value gains - 26 - - 26
Gains transferred to inventories - (18) - - (18)
Available-for-sale financial assets
Fair value gains - - 5 - 5
Transferred to income statement - - (7) - (7)
Tax on items that may be
reclassified 2 (1) - - 1
------------------------------------ -------------------- --------------- ----------------------- ------ --------
Other comprehensive income for the
period 308 7 (2) - 313
Purchase of own shares for
cancellation - - - 6 6
At 31 July 2016 103 32 - 178 313
------------------------------------ -------------------- --------------- ----------------------- ------ --------
At 1 February 2015 (194) 41 - 164 11
------------------------------------ -------------------- --------------- ----------------------- ------ --------
Currency translation differences
Group (136) - - - (136)
Joint ventures and associates (3) - - - (3)
Transferred to income statement (7) - - - (7)
Cash flow hedges
Fair value losses - (21) - - (21)
Gains transferred to inventories - (30) - - (30)
Tax on items that may be
reclassified (2) 14 - - 12
Other comprehensive income for the
period (148) (37) - - (185)
Purchase of own shares for
cancellation - - - 6 6
------------------------------------ -------------------- --------------- ----------------------- ------ --------
At 1 August 2015 (342) 4 - 170 (168)
------------------------------------ -------------------- --------------- ----------------------- ------ --------
At 1 February 2015 (194) 41 - 164 11
------------------------------------ -------------------- --------------- ----------------------- ------ --------
Currency translation differences
Group 1 - - - 1
Joint ventures and associates (3) - - - (3)
Transferred to income statement (7) - - - (7)
Cash flow hedges
Fair value gains - 24 - - 24
Gains transferred to inventories - (50) - - (50)
Available-for-sale financial assets
Fair value gains - - 2 - 2
Tax on items that may be
reclassified (2) 10 - - 8
------------------------------------ -------------------- --------------- ----------------------- ------ --------
Other comprehensive income for the
year (11) (16) 2 - (25)
Purchase of own shares for
cancellation - - - 8 8
------------------------------------ -------------------- --------------- ----------------------- ------ --------
At 31 January 2016 (205) 25 2 172 (6)
------------------------------------ -------------------- --------------- ----------------------- ------ --------
14. Cash generated by operations
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
--------------------------------------------------------------- ---------------- ---------------- -----------------
Operating profit 439 394 526
Share of post-tax results of joint ventures and associates 1 - (3)
Depreciation and amortisation 121 120 240
Impairment losses 1 39 55
Loss on disposal of property, plant and equipment, property
held for sale and intangible assets - - 3
Profit on disposal of property and other companies - (16) (13)
Profit on disposal of B&Q China (3) (143) (143)
Share-based compensation charge 9 7 11
(Increase)/decrease in inventories (65) (111) 56
Decrease/(increase) in trade and other receivables 30 (40) (36)
Increase in trade and other payables 238 191 27
Movement in provisions (63) 102 233
Movement in post-employment benefits (11) (12) (25)
--------------------------------------------------------------- ---------------- ---------------- -----------------
Cash generated by operations 697 531 931
--------------------------------------------------------------- ---------------- ---------------- -----------------
15. Net cash
At At At
GBP millions 31 July 2016 1 August 2015 31 January 2016
----------------------------------------------- ------------- -------------- ----------------
Cash and cash equivalents 1,134 537 730
Bank overdrafts (117) (43) (76)
----------------------------------------------- ------------- -------------- ----------------
Cash and cash equivalents and bank overdrafts 1,017 494 654
Short-term deposits - 123 70
Bank loans (9) (10) (10)
Fixed term debt (146) (170) (185)
Financing derivatives 77 45 63
Finance leases (41) (47) (46)
----------------------------------------------- ------------- -------------- ----------------
Net cash 898 435 546
----------------------------------------------- ------------- -------------- ----------------
Half year ended Half year ended Year ended
GBP millions 31 July 2016 1 August 2015 31 January 2016
---------------------------------------------------------------- ---------------- ---------------- ----------------
Net cash at beginning of period 546 329 329
---------------------------------------------------------------- ---------------- ---------------- ----------------
Net increase in cash and cash equivalents and
bank overdrafts, including amounts classified as held for sale 300 11 127
(Decrease)/increase in short-term deposits (70) 75 22
Repayment of bank loans 2 1 1
Repayment of fixed term debt 47 - -
Receipt on financing derivatives (10) - -
Capital element of finance lease rental payments 7 6 13
---------------------------------------------------------------- ---------------- ---------------- ----------------
Cash flow movement in net cash 276 93 163
Adjustment for cash classified as held for sale (B&Q China) - 57 57
Exchange differences and other non-cash movements 76 (44) (3)
---------------------------------------------------------------- ---------------- ---------------- ----------------
Net cash at end of period 898 435 546
---------------------------------------------------------------- ---------------- ---------------- ----------------
16. Disposals
On 5 July 2016, the Group disposed of its remaining 30% interest in the B&Q China business to Wumei Holdings Inc for a gross consideration of GBP67m, being the Sterling equivalent of RMB 582m. The profit on disposal of GBP3m is analysed as follows:
GBP millions -------------------------------------------------------------- ---- ---- ----- Proceeds 67 Disposal costs (4) --------------------------------------------------------------- ---- --- ----- Net disposal proceeds 63 Fair value of investment disposed (67) Fair value gains transferred from available-for-sale reserve 7 Exceptional profit on disposal 3 --------------------------------------------------------------- ---- --- -----
In the prior year, the Group received gross proceeds of GBP140m and recognised a profit on disposal of GBP143m in respect of Wumei Holdings Inc acquiring a controlling 70% stake in the B&Q China business. In the prior year, the Group also completed the sale of a property company for proceeds of GBP18m and a profit of GBP16m.
17. Contingent assets and liabilities
The Group has arranged for certain guarantees to be provided to third parties in the ordinary course of business. Of these guarantees, only GBP1m (2015/16: GBP1m) would crystallise due to possible future events not wholly within the Group's control. At 31 January 2016 the amount was GBP1m.
The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are considered likely to arise on the basis of current information and legal advice.
18. Related party transactions
The Group's significant related parties are its joint ventures, associates and pension schemes as disclosed in note 37 of the annual financial statements for the year ended 31 January 2016. There have been no significant changes in related parties or related party transactions in the period.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors confirm that this set of interim condensed financial statements has been prepared in accordance with IAS 34, 'Interim Financial Reporting', as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R, namely:
-- an indication of important events that have occurred during the period and their impact on the interim condensed financial statements, and a description of the principal risks and uncertainties for the remainder of the financial year; and
-- material related party transactions in the period and any material changes in the related party transactions described in the last annual report.
The Directors of Kingfisher plc were listed in the Kingfisher plc Annual Report for the year ended 31 January 2016, which noted that Janis Kong stepped down as a Director and Rakhi Goss-Custard was appointed as a Director, both effective 1 February 2016. There have been no other changes in the period.
By order of the Board
Véronique Laury Karen Witts
Chief Executive Officer Chief Financial Officer
19 September 2016 19 September 2016
INDEPENDENT REVIEW REPORT TO KINGFISHER PLC
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 July 2016 which comprises the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated balance sheet, the consolidated cash flow statement and related notes 1 to 18. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the Company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 July 2016 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
19 September 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QKLFFQKFEBBL
(END) Dow Jones Newswires
September 20, 2016 02:01 ET (06:01 GMT)
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