Share Name Share Symbol Market Type Share ISIN Share Description
Moss Bros Group LSE:MOSB London Ordinary Share GB0006056104 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.25p -0.25% 100.00p 100.00p 101.00p 101.00p 100.00p 101.00p 77,356.00 14:24:44
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 127.9 7.1 5.5 18.1 99.22

Moss Bros Group PLC Annual Financial Report

19/04/2017 7:00am

UK Regulatory (RNS & others)


Moss Bros (LSE:MOSB)
Historical Stock Chart

1 Month : From Apr 2017 to May 2017

Click Here for more Moss Bros Charts.

TIDMMOSB

RNS Number : 6152C

Moss Bros Group PLC

19 April 2017

Moss Bros Group Plc (the "Company" or the "Group")

Annual Financial Report - DTR 6.3.5 Disclosure

19 April 2017

Following the release on 28 March 2017 of the Company's preliminary results announcement for the 52 week period ended 28 January 2017 (the "Preliminary Announcement"), the Company announces that its annual report and accounts for the 52 week period ended 28 January 2017, notice of Annual General Meeting for 2017 and form of proxy for use at the Annual General Meeting of the Company are being issued to shareholders today.

The Annual General Meeting of the Company is to be held on 19 May 2017 at 12 noon at the Company's registered office, 8 St John's Hill, Clapham, London, SW11 1SA. Copies of the Annual Report and Accounts, the Notice of Annual General Meeting and form of proxy are available on the Investor Relations page of the Company's website http://corp.moss.co.uk/

Copies of the Annual Report and Accounts, the Notice of AGM and the Proxy Form will shortly be available for inspection at the UK National Storage Mechanism at http://www.morningstar.co.uk/uk/NSM

Tony Bennett

Company Secretary

COMPLIANCE WITH DISCLOSURE AND TRANSPARENCY RULE 6.3.5

EXTRACTS FROM THE ANNUAL REPORT AND ACCOUNTS

The information below, which is extracted from the 2017 Annual Report and Accounts, is included solely for the purpose of complying with DTR 6.3.5 and the requirements it imposes on issuers as to how to make public annual financial reports. It should be read in conjunction with the Company's Preliminary Announcement issued on 28 March 2017. Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service. This material is not a substitute for reading the full 2017 Annual Report and Accounts. Page numbers and cross-references in the extracted information below refer to page numbers and cross-references in the 2017 Annual Report and Accounts.

The information contained in this announcement and in the Preliminary Announcement does not constitute the Group's statutory accounts as defined in the Companies Act 2006 but is derived from those accounts. The statutory accounts for the 52 week period ended 28 January 2017 have been approved by the Board and will be delivered to the Registrar of Companies following the Company's Annual General Meeting which will be held on 19 May 2017. On 28 March 2017, the Group announced its draft financial statements for the 52 week period ending 28 January 2017. The auditors have subsequently reported on those accounts, which were unchanged, their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498(2) or (3) Companies Act 2006 or equivalent preceding legislation.

DIRECTORS' RESPONSIBILITY STATEMENT

The following statement is extracted from page 30 of the 2017 Annual Report and Accounts and is repeated here for the purposes of complying with Disclosure and Transparency Rule 6.3.5. This statement relates solely to the 2017 Annual Report and Accounts and is not connected to the extracted information set out in this announcement or the Preliminary Announcement.

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the Group financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and Article 4 of the IAS Regulation and have chosen to prepare the parent company financial statements under IFRSs as adopted by the EU. Under Company law the Directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, International Accounting Standard 1 requires that Directors:

   --     properly select and apply accounting policies; 

-- present information including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

-- provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

   --     make an assessment of the Company's ability to continue as a going concern. 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board monitors principal risks and uncertainties and implement measures to mitigate their risk on the business. An assessment of these is shown below.

 
  BUSINESS AREA                RISK TO COMPANY               MITIGATION OF RISK            ASSESSMENT OF CHANGE IN 
                                                                                           RISK YEAR ON YEAR 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Hire                          The Hire business demands     We have a dedicated           The risk is ongoing; 
                               the highest level of          customer service team which   however we have expanded 
                               customer service.             actively seek to resolve      our customer service team 
                               This is delivered through a   any customer service          and have carried out 
                               highly developed and          issues arising.               a full review of all 
                               efficient infrastructure      We are continually            systems and processes. 
                               which enables consistent      refreshing and replenishing 
                               'delivery to promise'.        our stock of hire garments 
                               Any disruption to this        to ensure we are 
                               infrastructure would affect   able to cater for all 
                               our ability to maintain       occasions whenever they 
                               customer service              fall due. 
                               levels.                       We have previously 
                                                             strengthened our market 
                                                             position through the 
                                                             introduction of a new 
                                                             transactional 
                                                             Hire website and back-end 
                                                             system improvements are in 
                                                             development. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Retail and Tailor Me          Factors outside our           We continually focus on       The risk has remained 
                               control, such as an           maintaining our product       consistent. 
                               economic downturn affecting   quality, customer service     The macro risks associated 
                               the UK or any wider           and supplier relationships,   with the EU referendum are 
                               economic                      whilst retaining our          difficult to quantify until 
                               downturn as a result of the   competitive position,         we have 
                               vote to leave the EU, may     including value and           further clarity on 
                               have a material adverse       pricing.                      timelines and approach from 
                               effect on results                                           both UK government and EU 
                               .                             Foreign currency exposure,    negotiators. 
                               As a retail business based    principally the US Dollar, 
                               and operating predominantly   is hedged for between 6 to 
                               in the UK, we are             9 months 
                               particularly exposed          in advance. 
                               to any economic downturn in 
                               the UK which could affect 
                               consumer confidence and 
                               therefore spending. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
  E-Commerce                   Customer satisfaction is as   We are continually            With the continuous 
                               important online as           developing our website        increase in trade through 
                               offline.                      offering in order to become   e-commerce and the market 
                               Ease of navigation/ability    fully multi-channel.          trend on moving to 
                               to transact quickly on the    Our Retail website has        a fully multi-channel 
                               website is key to             continued to see increases    operation, the risk has 
                               generating sales online.      in conversion rates and       increased during the year. 
                               Maintaining a competitive     average order values. 
                               edge through customers        We have developed a fully 
                               being able to interact with   responsive website during 
                               the product online,           the year which provides a 
                               offering product choice and   more appropriate 
                               availability, and allowing    browsing experience for the 
                               multiple payment and          increasing proportion of 
                               delivery options              visitors to the site using 
                               are important in growing      mobile or 
                               our online presence.          tablet technology. 
                               Ensuring a secure online      We have security policies, 
                               marketplace is also vital     rules and technical 
                               for customers to be able to   measures in place to 
                               transact safely.              protect customer data. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Brand image                   Maintaining our store         We are undergoing a store     The risk has been reduced 
                               presentation is important     redevelopment programme to    during the year with the 
                               for attracting customers      both modernise the look and   progression of the store 
                               and growing our brand.        feel of the                   redevelopment 
                               The historical                stores and to meet more       programme. 
                               underinvestment in the        routine maintenance that 
                               store estate in previous      has been deferred for many 
                               years has meant that some     years. 
                               of                            The development and launch 
                               our stores lack the level     of a new sub brand line up, 
                               of presentation that we       under the master brand 
                               require to grow the           'Moss Bros', 
                               business and the brand.       in Autumn 2014 has 
                                                             strengthened the brand 
                                                             identity. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Costs                         Supply chain cost price       Management mitigates cost     The risk is ongoing, 
                               increases and currency        price risk by continual       however, and is continually 
                               fluctuation could have a      review of supplier            monitored and addressed. 
                               materially adverse            arrangements. 
                               affect on results.            In addition, the Group        The risk has increased but 
                               A fluctuation in currency     operates a treasury policy    we continually monitor and 
                               rates could materially        which hedges a significant    evaluate planned and 
                               affect the Group's cost       proportion of                 proposed expenditure 
                               base and margins.             the foreign exchange risk     to ensure that it remains 
                               A re-emergence of general     from such direct sourcing     commercially sensible. 
                               price inflation could         arrangements. Management 
                               affect profitability.         closely monitor 
                               There are significant         the effectiveness of these 
                               external cost pressures       arrangements. 
                               from the increases in the     If general price inflation 
                               National Living Wage,         returns this may allow an 
                               the National Minimum Wage,    increase retail selling 
                               the Apprenticeship Levy,      prices albeit 
                               the revaluation of business   subject to market 
                               rates, higher                 conditions 
                               energy taxes and increased    Ongoing review of store 
                               purchasing costs due to the   profitability, combined 
                               combined effects of a         with shorter lease 
                               devalued pound.               durations. 
                                                             Remuneration policies are 
                                                             under review to ensure we 
                                                             remain competitive in the 
                                                             marketplace. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Supply chain                  A disruption to supplier      We are continually            The risk is ongoing, 
                               continuity may adversely      reviewing and refreshing      however, and is continually 
                               affect our operation.         our supplier list. The        monitored and addressed. 
                               Suppliers going out of        diversification of product 
                               business could have a         buying across a range of 
                               significant impact on our     suppliers limits the 
                               ability to meet demand        Group's over reliance upon 
                               in store and online.          any individual supplier. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Supplier dependency -         In an uncertain economic      Monitor supplier financial    Risk likely to increase 
 Failure of major suppler      environment, supplier         performance through           with greater uncertainty in 
                               failure and subsequent        constant dialogue to reveal   macroeconomic environment. 
                               failure to supply product     evidence of supplier 
                               or services will impact       in difficulty. 
                               business performance.         Review ability to source 
                                                             product/services from 
                                                             alternative supplier at 
                                                             pace. 
                                                             Review and document 
                                                             contingency plans should 
                                                             supplier fail. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Distribution centre (DC)      Operating our distribution    We continually review and     With new and increased 
                               centre from one location      monitor our disaster          operating pressures on the 
                               leaves the Group exposed to   recovery plan to ensure       DC through multi-channel, 
                               business catastrophes         that all business risks       the reliance and 
                               occurring at that location.   are adequately covered.       consequent exposure to risk 
                               Any business catastrophe      Our financial risk of         of the DC failing has 
                               affecting our distribution    operating from one location   increased during the year. 
                               centre could severely         is mitigated through our 
                               affect the Group's            comprehensive insurance 
                               ability to supply to stores   cover. 
                               and customers. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 Cyber crime                   A cyber crime attack could    Customer bank or payment      Frequency and severity of 
                               disable the Group's key IT    card details are not          cyber crime attacks against 
                               systems and compromise data   processed or stored in the    companies have increased 
                               security.                     Group's IT systems.           significantly 
                                                             Comprehensive security 
                                                             measures are in place with 
                                                             regular tests carried out. 
                                                             Development in cyber crime 
                                                             and preventative strategies 
                                                             are constantly reviewed. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 People                        The Group's reliance on key   Effective recruitment         The risk is ongoing however 
                               management and other          policies and people           is continually monitored 
                               personnel could put           development means the Group   and addressed. 
                               pressure on the business      can take full advantage 
                               if they were to leave.        of the recovery in its 
                               Attracting and retaining      performance. Long-term 
                               high calibre people is a      incentive share awards were 
                               key priority and a central    granted to senior 
                               focus in striving             employees during the year 
                               for excellent customer        to more closely align their 
                               service across the Group's    interests to those of the 
                               business channels.            Group and 
                                                             a SAYE scheme is in 
                                                             operation. 
----------------------------  ----------------------------  ----------------------------  ---------------------------- 
 

RELATED PARTY TRANSACTIONS

The Group had no material related party transactions which might reasonably be expected to influence decisions made by users of these Financial Statements. Directors' remuneration is disclosed in the Annual Report on Remuneration on pages 41 to 52. Other related parties are key management (employees below Director level who have authority and responsibility for planning, directing and controlling the Company) and major Shareholders. The key management personnel compensation is as follows:

 
                                                2016/17   2015/16 
                                                GBP'000   GBP'000 
---------------------------------------------  --------  -------- 
Short-term employee benefits                      1,389     1,139 
 Termination payments                                66        46 
 Contributions to defined contribution plans         79        65 
 Proceeds from share-based payments                 240       535 
---------------------------------------------  --------  -------- 
                                                  1,774     1,785 
---------------------------------------------  --------  -------- 
 

Total remuneration is included in administrative expenses and relates to 11 employees in the period ended 28 January 2017 (2015/16: 10).

TRADING TRANSACTIONS

The Group entered into the following transactions with related parties who are not members of the Group:

Berkeley Burke Trustee Company Limited is considered a related party of the Group because Brian Brick, Chief Executive Officer of Moss Bros Group plc is a beneficiary of the pension fund. On 8 December 2011, Moss Bros Group plc agreed a long-term lease with Berkeley Burke Trustee Company Limited, a pension fund and the superior landlord, for a store in Hounslow, on an arm's length basis.

AAK Limited is considered a related party of the Group because Maurice Helfgott, Senior Independent Non- Executive Director of Moss Bros Group plc, has a close relative holding a key management position with significant influence and who is a significant shareholder at AAK Limited. All transactions with AAK Limited have been on an arm's length basis. At 28 January 2017, total purchase from AAK Limited was GBP4.3m, including VAT, (30 January 2016: GBP4.1m, including VAT), of which GBP177,000 was outstanding at year end.

Moss Bros agreed a sublet of a store lease to White Stuff Ltd. Debbie Hewitt, Chairman of Moss Bros Group plc, is also Chairman and director of White Stuff. The transaction was on arm's length commercial terms and Debbie Hewitt took no part in determining the commercial terms offered by Moss Bros or in the decision to accept them taken by White Stuff. The sublet is from June 2014 until December 2021 at a rent of GBP50,000 per year. A capital contribution of GBP50,000 was paid to White Stuff on completion of the agreement. At 28 January 2017 the balance due from White Stuff was GBP212 in respect of service charges payable in arrears.

For further information please contact:

Moss Bros Group Plc

   Tony Bennett, Finance Director and Company Secretary                            0207 447 7200 

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACSGGUMUCUPMGWR

(END) Dow Jones Newswires

April 19, 2017 02:00 ET (06:00 GMT)

1 Year Moss Bros Chart

1 Year Moss Bros Chart

1 Month Moss Bros Chart

1 Month Moss Bros Chart
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:41 V:gb D:20170501 02:28:41