We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Scs Group Plc | LSE:SCS | London | Ordinary Share | GB00BRF0TJ56 | ORD 0.1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 270.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMSCS
RNS Number : 4707S
ScS Group PLC
03 October 2017
For Immediate Release 3 October 2017
ScS Group plc
("ScS" or the "Group")
Preliminary results for the year ended 29 July 2017
Growth delivered, resilience increased
ScS, one of the UK's largest retailers of upholstered furniture and floorings, is pleased to announce its Preliminary Results for the 52 weeks ended 29 July 2017.
Financial highlights:
-- Gross sales improved 4.4% to GBP349.5m (2016: GBP334.7m) -- Revenue improved 4.9% to GBP333.0m (2016: GBP317.3m) -- EBITDA increased 8.4% to GBP17.4m (2016: GBP16.0m) -- Operating profit increased 8.8% to GBP12.0m (2016: GBP11.0m) -- Like-for-like orders declined 0.7% against very strong comparatives -- Two year like-for-like order intake growth of 14.3% -- Earnings per share of 23.5p (2016: 21.8p) -- Free cash flows in the year of GBP23.6m, including a GBP12.5m working capital improvement -- Strong balance sheet with cash of GBP40.1m (2016: GBP22.4m) and no debt
-- Recommended final dividend of 9.80p per share, full year dividend of 14.70p per share (2016: 14.50p), an increase of 1.4%
Operational highlights:
-- Strong progress in all four areas of our strategy for growth:
o Sales density per square foot at our ScS stores increased 3.2% to GBP226 (2016: GBP219)
o Four new stores opened in the year. The Group now trades from 100 ScS stores and operates 27 House of Fraser concessions
o House of Fraser concession gross sales up 8.3% to GBP27.4m (2016: GBP25.3m)
o Online gross sales up 12.3% to GBP11.3m (2016: GBP10.0m)
-- Overall Trustpilot rating improved and 5-star "Excellent" rating maintained
Current trading and outlook:
-- Sales order intake up 3.0% on a like-for-like basis for the 9 weeks to 30 September 2017 -- Trading since the start of the year in line with the Board's expectations
David Knight, Chief Executive Officer of ScS commented:
"We are delighted to be reporting continued sales growth across all areas of the Group for the third year in a row. The core ScS business has continued to focus on providing excellent choice, value and quality for our customers, and I am pleased to see this delivering record results in furniture and flooring sales.
The Group saw a GBP15.7m (4.9%) increase in revenue in the year to GBP333.0m (2016: GBP317.3m). Gross profit increased to GBP153.7m (2016: GBP149.1m), EBITDA increased 8.4% to GBP17.4m (2016: GBP16.0m) and profit before tax rose 9.9% to GBP12.0m (2016: GBP10.9m).
Since the start of the current financial year, trading performance has been in line with our expectations. Furthermore, we believe the Group's increasing resilience will enable us to manage the continued economic uncertainty and take advantage of opportunities."
Enquiries:
ScS Group PLC c/o Buchanan +44 (0)20 7466 David Knight, Chief Executive Officer 5000 Chris Muir, Chief Financial Officer Buchanan Tel: +44 (0)20 7466 5000 Richard Oldworth scs@buchanan.uk.com Madeleine Seacombe
Investor and Analyst Meeting
A meeting for analysts will be held at the office of Buchanan, 107 Cheapside, London, EC2V 6DN on 3 October 2017 commencing at 9.30am. ScS Group plc's Preliminary Results 2017 are available at www.scsplc.co.uk.
An audio webcast will be available on:
http://vm.buchanan.uk.com/2017/scs031017/registration.htm
Notes to Editors
ScS is one of the UK's largest retailers of upholstered furniture and floorings, promoting itself as the "Sofa Carpet Specialist", seeking to offer value and choice through a wide range of upholstered furniture and flooring products. The Group's product range is designed to appeal to a broad customer base with a mid-market priced offering and is currently traded from 100 stores.
The Company's upholstered furniture business specialises primarily in fabric and leather sofas and chairs. ScS sells a range of branded products which are not sold under registered trade marks and a range of branded products which are sold under registered trade marks owned by ScS (such as Endurance and SiSi Italia). The Group also offers a range of third party brands (which include La-Z-Boy, G Plan and Parker Knoll). The Company's flooring business includes carpets, as well as laminate and vinyl flooring.
In 2014 ScS began to operate the furniture and carpet concession ranges for House of Fraser. ScS currently operates in 27 House of Fraser stores across the UK.
CHAIRMAN'S STATEMENT
Following the strong performance in the year ended 30 July 2016, I am very pleased to report further growth across the business for the year ended 29 July 2017, despite challenging economic conditions.
Financial and strategic objectives
The Group continues to pursue the following objectives:
-- Deliver profitable and sustainable growth; -- Improve the quality of earnings; -- Improve business resilience through the economic cycle, and -- Increase shareholder returns.
The business has continued to deliver against these objectives, growing revenue and gross profit, diligently controlling costs and maximising cash flow. I am particularly pleased with this result given the toughening trading environment since the turn of the year, and believe it demonstrates the increasingly resilient business we are building, and the commitment of our Board and staff to achieving the objectives we set.
Reaching the milestone of 100 ScS stores was a further highlight of this financial year, with our new stores in Aberdeen, Thanet, Edinburgh (Straiton) and Plymouth contributing towards the increase in revenue, gross profit and EBITDA. These stores will help the Group continue to target sustainable growth and improve the overall resilience of the business.
Result and dividend
I am pleased to report that the Group delivered a result slightly ahead of market expectations. The first half of the financial year saw the Group trade strongly and continue the momentum from the previous financial year. However, as we noted in our trading outlook in March, the second half of the year brought with it more challenging conditions across the market, with decreased footfall and reduced consumer confidence. Against this backdrop, and very strong prior year comparatives, I am proud of our two-year like-for-like order intake growth of 14.3%. We have also continued to identify and implement various business efficiencies, which have helped to increase our EBITDA margin and resulted in a 7.8% increase in earnings per share (EPS) from 21.8p to 23.5p.
The Group continues to hold no debt, had cash reserves of GBP40.1m at 29 July 2017 and generated free cash flows in the year of GBP23.6m, benefiting from a GBP12.5m working capital movement. Underlying cash flows, together with continued expansion in our store network, show the Group's ability to continue to grow and strengthen its balance sheet. The Group continues to maintain a GBP12.0m committed revolving credit facility. This provides further resilience, whilst also allowing the Group to maximise opportunities as they arise.
Despite the continued uncertain economic environment, the improved operating results year on year, the strength of the Group's balance sheet and the Board's confidence in the outlook for the Group, has resulted in the Board proposing a full year dividend of 14.70p, a 1.4% increase on the full year dividend for 2016. If approved, this would result in a final dividend of 9.80p.
Final thoughts
Finally, I would like to record the Board's thanks to all of our 1,952 team members throughout the business. Particularly against more challenging trading conditions, it is their commitment, expertise and enthusiasm that allows the Group to continue to grow and improve each year, and deliver our mission to provide our customers with excellent service, value and quality.
The Group has a clear strategy for growth, underpinned by strong cash flows and the increasing resilience of the Group's balance sheet. The Group is positioned to take advantage of future opportunities and whilst there remains a level of uncertainty in the wider economy, the Board remains positive about the long-term prospects for the business.
CHIEF EXECUTIVE'S REPORT
Overview
We are delighted to be reporting continued sales growth across all areas of the Group for the third year in a row. The core ScS business has continued to focus on providing excellent choice, value and quality for our customers, and I am pleased to see this delivering record results in furniture and flooring sales. Furthermore, our targeted investment in key growth areas continue to prove successful, with an 8.3% increase in sales from our House of Fraser concessions and 12.3% growth in our online business.
Results
The Group saw a GBP15.7m (4.9%) increase in revenue in the year to GBP333.0m (2016: GBP317.3m). Gross profit increased to GBP153.7m (2016: GBP149.1m), EBITDA increased 8.4% to GBP17.4m (2016: GBP16.0m) and profit before tax rose 9.9% to GBP12.0m (2016: GBP10.9m).
Strategy for growth
The Group continues to focus on four key areas in its strategy for growth:
Area 1 - Increase sales densities
Sales density per square foot at our ScS stores for the last twelve months was GBP226. This represents an increase of GBP7 per square foot or 3.2% on the GBP219 achieved in the 12 months ended 30 July 2016. This increase was achieved by continued focus on the following:
-- The ongoing targeting and maximisation of a branded range of products and the continued development of our flooring offering;
-- Maximising our average order value, with furniture order values rising 1.1% in the year to GBP1,575, and flooring order values rising 3.5% in the year to GBP629;
-- Continued investment in our online capability, resulting in both the benefit of direct sales through the website and the indirect benefit of improving the quality of footfall, with customers often entering our stores having already researched their choices. This has ensured that despite decreases in footfall noted industry-wide, customers are more engaged and more likely to place an order;
-- Improving the customer journey, experience and confidence, evidenced by an improved Trustpilot satisfaction score. The Group has over 73,000 reviews and is proud to have improved its overall score and maintained its maximum 5-star "Excellent" rating.
Marketing spend increased to GBP24.7m in the year (2016: GBP23.1m) as the Group continued to operate in an increasingly competitive and challenging marketplace, and to drive sales conversion, being the proportion of customers who purchased a product after entering a store, which further increased this year.
Area 2 - Maximise the opportunity with House of Fraser customers
The Group operates 27 House of Fraser concessions, targeting those customers who prefer to shop in department stores and town centres and enabling the Group to access a wider demographic. Despite being integrated into the Group for over three years, gross sales continued to rise strongly in the year, increasing by 8.3% to GBP27.4m (2016: GBP25.3m).
Contribution to the Group's EBITDA is a continued focus as these concessions become established, and following their first positive contribution in the prior year, the House of Fraser concession EBITDA continued to strengthen in 2017. As with the ScS store network, individual concession performance is regularly reviewed to ensure all locations make an appropriate level of return.
Both ScS and House of Fraser management teams continue to recognise the ongoing potential that the partnership offers and continually work together on how to improve sales and margins.
Area 3 - Optimise online presence
Whilst relatively large ticket home furnishings continue to be predominantly a store based sale, we know that a high proportion of our customers continue to research our products online before they visit the store to make their final purchase decision. Continued website investment has therefore been a key part of the Group's strategy for growth. In addition, as the Group continues to improve its online presence and provide a higher quality responsive web platform, an increasing number of customers are choosing to make their purchase directly online. This has been supported by continued investment in website development and maintenance of GBP1.8m (2016: GBP1.4m) and increased digital marketing spend, which has successfully driven improvements in our website visitor count and conversion.
Online gross sales increased 12.3% to GBP11.3m (2016: GBP10.0m).
Area 4 - Achieve strong financial returns from new store openings
During the first half of the financial year, the Group opened four new stores in Aberdeen (September 2016) and Thanet, Edinburgh (Straiton) and Plymouth (all on Boxing Day 2016). All four stores have performed in line with the targets set within their initial investment analysis and have contributed positively to EBITDA in the year.
We now operate from 100 stores across the UK, almost all of which are in modern out of town retail parks, often alongside competing furniture and floorcoverings retailers. A new store in Chelmsford is targeted to open on Boxing Day 2017.
We continue to hold a list of sites identified for potential new stores, and opportunities are consistently pursued and monitored, with plans for further expansion in the coming financial year.
Additionally, we continue to closely monitor the performance of our network and actively manage the portfolio.
Current trading and outlook
Since the start of the current financial year, trading performance has been in line with our expectations. Furthermore, we believe the Group's increasing resilience will enable us to manage the continued economic uncertainty and take advantage of opportunities.
The continued successful self-financed expansion of the ScS network, ongoing growth in the concession agreement with House of Fraser and double digit online growth, together with the Group's strong cash flow dynamics, demonstrate the ability of the Group to maintain a strong financial position and continue to deliver value for our shareholders.
David Knight
Chief Executive Officer
FINANCIAL REVIEW
Hot Features
Premium
Year ended Year ended
29 July 2017 30 July 2016
--------------- ---------------
GBPm GBPm
Gross sales 349.5 334.7
=============== ===============
Revenue 333.0 317.3
=============== ===============
Gross profit 153.7 149.1
--------------- ---------------
Distribution costs (16.5) (15.5)
Administration expenses (125.2) (122.6)
--------------- ---------------
Total operating expenses (141.7) (138.1)
--------------- ---------------
Operating profit 12.0 11.0
Net finance costs - (0.1)
Profit before tax 12.0 10.9
Tax (2.6) (2.2)
--------------- ---------------
Profit after tax 9.4 8.7
=============== ===============
Earnings per share 23.5p 21.8p
=============== ===============
EBITDA 17.4 16.0
--------------------------------- --------------- ---------------
Gross sales and revenue
Gross sales increased by GBP14.8m (4.4%) to GBP349.5m (2016: GBP334.7m) and is attributable to:
-- An increase in furniture sales in ScS stores of 3.7% to GBP270.9m; -- An increase in flooring sales in ScS stores of 5.0% to GBP39.9m; -- An increase in online sales of 12.3% to GBP11.3m; and -- An increase in sales from the House of Fraser concession of 8.3% to GBP27.4m.
Gross sales in the year benefited from three main factors:
-- The increased order intake seen at the end of the previous financial year (which was delivered in this period);
-- The increased sales order intake seen in the first half of the current year, and -- Four new stores, with gross sales of GBP7.4m.
Revenue, which represents gross sales less charges relating to interest free credit sales (see note 3 - Segmental Information), increased by 4.9% to GBP333.0m (2016: GBP317.3m).
Gross profit
Gross margin (as a percentage of gross sales) in the year was 44.0% (2016: 44.6%). The margin decreased by 0.6% when compared to the previous year largely due to a focus in the year to reduce stocks of older product, which improved store appearance and created a working capital inflow. Quality of earnings remains a key area of focus.
The increased revenue resulted in an increase in gross profit of GBP4.6m or 3.1%.
Operating profit
Operating profit for the year increased by 8.8% to GBP12.0m (2016: GBP11.0m).
Distribution costs
Distribution costs comprise the total cost of the in-house distribution function and includes employment costs, the cost of leasing vehicles and related running costs and property costs (principally rent, rates and utilities) for the ten distribution centres, as well as costs of third party delivery services contracted to support peak delivery periods. Distribution costs expressed as a percentage of revenue for the year were 5.0%, 0.1% higher than the prior year.
As part of the ongoing review of distribution efficiencies, the Group has taken the decision post year-end to close two warehouses in Thanet and West Thurrock and move to a single new warehouse in Basildon. The Group will see the cost benefit of this in the year to 28 July 2018.
Administrative expenses
Administrative expenses comprise:
-- Store operating costs, principally employment costs and property related costs (rent and rates, utilities, store repairs and depreciation of capital investment) and costs associated with the concession agreement with House of Fraser;
-- Marketing expenditure, and
-- General administrative expenditure which includes the employment costs for the directors, senior management and all head office based functions (customer call centre, finance, human resources, IT, merchandising, online sales support, flooring administration, administrative support for House of Fraser concession), company pension contributions, legal and professional costs, insurance, company car costs, IT systems support and telecommunications.
Administration costs for the year totalled GBP125.2m, compared to GBP122.6m in the prior year. Administrative costs as a percentage of revenue were 37.6%, compared to 38.6% in the prior year.
The year saw an increase in administrative costs of GBP2.6m, with the majority of the increase being driven by the following:
-- GBP1.6m increase (including GBP0.2m in relation to launch of new stores) in marketing investment;
-- GBP1.6m reduction in payroll costs resulting from:
o GBP4.5m decrease in performance related bonuses;
o GBP2.0m increase driven by an inflationary wage increase, resourcing to support growth, succession planning, and
o GBP0.9m from new stores;
-- GBP1.3m rent and rates increase due to the new store openings; -- GBP0.4m increase in website development and maintenance costs, and -- GBP0.4m increase in depreciation and amortisation.
EBITDA
An analysis of EBITDA is as follows:
Year ended Year ended
29 July 30 July
2017 2016
---------- ----------
GBPm GBPm
Operating profit 12.0 11.0
Depreciation 4.8 4.5
Amortisation 0.6 0.5
EBITDA 17.4 16.0
========== ==========
Taxation
The tax charge for the financial year is higher than if the standard rate of corporation tax had been applied, mainly due to charges not deductible for tax purposes, principally depreciation on capital expenditure that does not qualify for capital allowances.
Earnings per share (EPS)
EPS for the year ended 29 July 2017 was 23.5p compared to earnings per share of 21.8p in the previous year.
Cash and cash equivalents
A strong cash flow has been generated from operations reflecting the negative working capital business model whereby:
-- For cash/card sales, customers pay deposits at the point of order and settle outstanding balances before delivery;
-- For consumer credit sales, the loan provider pays ScS approximately seven days after delivery, and
-- The majority of product suppliers are paid at the end of the month following the month of delivery into the distribution centres.
A summary of the Group's cash flows is shown below:
Year ended Year ended
29 July 30 July
2017 2016
---------- ----------
GBPm GBPm
Cash generated from operating
activities 30.1 13.2
Net capital expenditure (5.2) (3.4)
Net taxation and interest
payments (1.3) (2.2)
---------- ----------
Free cash flow 23.6 7.6
Dividends (5.9) (6.3)
Net cash generated 17.7 1.3
========== ==========
Cash generated from operating activities in the year benefited by GBP10.6m from the timing of the July supplier payment run due to the slightly earlier year-end date.
Net capital expenditure in the year includes GBP3.1m on four new stores (2016: GBP0.7m on one new store).
Dividend
An interim dividend of 4.90p per ordinary share was paid in May 2017. The Group has continued to strengthen and deliver very positive results, with very strong cash generation and a balance sheet that is growing in resilience. Despite the continued uncertain economic environment, the Board is confident in the outlook for the Group and therefore proposes a full year dividend of 14.70p, a 1.4% increase on the full year dividend for 2016. If approved, this would result in a final dividend of 9.80p.
Consolidated statement of comprehensive income for the year ended 29 July 2017
2017 2016
Note GBP'000 GBP'000
--------------------------------------- ------ ----------------------- -----------------------
Gross sales 3 349,502 334,660
======================================= ====== ======================= =======================
Revenue 3 332,965 317,305
Cost of sales (179,224) (168,177)
--------------------------------------- ------ ----------------------- -----------------------
Gross profit 153,741 149,128
Distribution costs (16,503) (15,491)
Administrative expenses (125,249) (122,622)
--------------------------------------- ------ ----------------------- -----------------------
Operating profit 11,989 11,015
======================================= ====== ======================= =======================
Finance costs 4 (96) (217)
Finance income 5 70 86
--------------------------------------- ------ ----------------------- -----------------------
Net finance costs (26) (131)
--------------------------------------- ------ ----------------------- -----------------------
Profit before taxation 11,963 10,884
Taxation 6 (2,561) (2,155)
--------------------------------------- ------ ----------------------- -----------------------
Profit and total comprehensive income
for the year attributable to owners
of the parent 9,402 8,729
--------------------------------------- ------ ----------------------- -----------------------
Earnings per share (expressed in pence
per share):
Basic 7 23.5p 21.8p
Diluted 7 22.9p 21.3p
======================================= ====== ======================= =======================
All results arise from continuing operations. There are no other sources of comprehensive income.
Consolidated statement of changes in equity for the year ended 29 July 2017
Share Share Capital Redemption Retained
capital premium reserve Merger reserve earnings Total equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- ------------------ -------------- --------- ----------------
At 26 July 2015 37 - 13 25,511 1,219 26,780
Total comprehensive income - - - - 8,729 8,729
Share-based payments - - - - 437 437
Proceeds from shares issued 3 16 - - - 19
Dividend paid - - - - (6,349) (6,349)
-------- -------- ------------------ -------------- --------- ----------------
At 30 July 2016 40 16 13 25,511 4,036 29,616
-------- -------- ------------------ -------------- --------- ----------------
At 31 July 2016 40 16 13 25,511 4,036 29,616
Total comprehensive income - - - - 9,402 9,402
Share-based payments - - - - 154 154
Dividend paid - - - - (5,893) (5,893)
-------- -------- ------------------ -------------- --------- ----------------
At 29 July 2017 40 16 13 25,511 7,699 33,279
-------- -------- ------------------ -------------- --------- ----------------
Consolidated statement of financial position as at 29 July 2017
2017 2016
Note GBP'000 GBP'000
------ -------- --------
Non-current assets
Intangible assets 1,077 1,145
Property, plant and equipment 23,878 23,501
Total non-current assets 24,955 24,646
-------- --------
Current assets
Inventories 22,084 23,188
Trade and other receivables 9,699 9,014
Cash and cash equivalents 40,126 22,379
-------- --------
Total current assets 71,909 54,581
-------- --------
Total assets 96,864 79,227
======== ========
Current liabilities
Current income tax liabilities 2,121 210
Trade and other payables 8 53,794 42,232
Total current liabilities 55,915 42,442
-------- --------
Non-current liabilities
Trade and other payables 7,140 6,068
Deferred tax liability 530 1,101
Total non-current liabilities 7,670 7,169
-------- --------
Total liabilities 63,585 49,611
-------- --------
Capital and reserves attributable
to the owners of the parent
Share capital 40 40
Share premium 16 16
Capital redemption reserve 13 13
Merger reserve 25,511 25,511
Retained earnings 7,699 4,036
-------- --------
Equity attributable to the owners
of the parent 33,279 29,616
-------- --------
Total equity 33,279 29,616
-------- --------
Total equity and liabilities 96,864 79,227
======== ========
Consolidated statement of cash flows for the year ended 29 July 2017
2017 2016
GBP'000 GBP'000
-------- ---------
Cash flows from operating activities
Profit before taxation 11,963 10,884
Adjustments for:
Depreciation of property plant and equipment 4,806 4,478
Amortisation of intangible assets 599 556
Share-based payments 154 437
Finance costs 96 217
Finance income (70) (86)
-------- ---------
17,548 16,486
Changes in working capital:
Decrease / (increase) in inventories 1,104 (2,483)
Increase in trade and other receivables (685) (127)
Increase / (decrease) in trade and other payables 12,123 (658)
Cash generated from operating activities 30,090 13,218
Interest paid (96) (217)
Income taxes paid (1,220) (2,049)
-------- ---------
Net cash flow generated from operating activities 28,774 10,952
-------- ---------
Cash flows used in investing activities
Purchase of property, plant and equipment (4,728) (2,974)
Payments to acquire intangible assets (476) (410)
Interest received 70 86
-------- ---------
Net cash flow used in investing activities (5,134) (3,298)
-------- ---------
Cash flows used in financing activities
Dividends paid (5,893) (6,349)
Proceeds of share issue - 19
-------- ---------
Net cash flow used in financing activities (5,893) (6,330)
-------- ---------
Net increase in cash and cash equivalents 17,747 1,324
Cash and cash equivalents at beginning of year 22,379 21,055
Cash and cash equivalents at end of year 40,126 22,379
======== =========
Notes to the audited consolidated financial statements
1. General information
ScS Group plc (the "Company") is a company limited by shares incorporated and domiciled in England, within the UK (Company registration number 03263435). The Company's principal activity is to act as a holding company for its subsidiaries. The Company and its subsidiaries' (the 'Group') principal activity is the provision of furniture and flooring, trading under the names ScS and "House of Fraser Made to Order Sofas, Furniture and Flooring".
2. Accounting Policies
Basis of preparation
The Board approved the preliminary announcement on 2 October 2017.
The results for the year ended 29 July 2017, including comparative financial information, have been prepared in accordance with EU endorsed International Financial Standards ("IFRS"), IFRIC interpretations and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. ScS Group plc will publish full financial statements that comply with IFRS in October 2017.
The financial information does not constitute the Company's statutory accounts for the years ended 2016 or 2017, but is derived from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 will be delivered following the Company's Annual General Meeting. The auditors have reported on those accounts: 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) of the Companies Act 2006.
The financial information presented in respect of the year ended 29 July 2017 has been prepared on a basis consistent with that presented in the annual report for the year ended 30 July 2016.
Going concern
The Group generates strong cash flows, reflecting the negative working capital requirements of the business model. In addition, the Group has a committed GBP12.0m revolving credit facility in place. The Group's forecasts and projections show that the Group has adequate resources to continue in operational existence for the foreseeable future.
Having considered the Group's current trading and cash flow generation including severe but plausible stress testing scenarios, the Directors have concluded that it is appropriate to prepare the Group Financial statements on a going concern basis.
New standards, amendments and interpretations
Amendments to and interpretation of standards effective and adopted by the Group will be disclosed in the 2017 annual financial statements.
Critical accounting judgements and estimates
The preparation of the financial statements under IFRS requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. Estimates and judgements are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Relevant accounting judgement and estimates will be disclosed in the 2017 annual financial statements.
3. Segment information
The Directors have determined the operating segments based on the operating reports reviewed by the senior management team (the Executive Directors and the other Directors of the trading subsidiary, A. Share & Sons Limited) that are used to assess both performance and strategic decisions. The Directors have identified that the senior management team are the chief operating decision makers in accordance with the requirements of IFRS 8 'Segmental reporting'.
The Directors consider the Group operates one type of business generating gross sales and revenue from the retail of furniture and flooring. All gross sales and revenue, profit before taxation, assets and liabilities are attributable to the principal activity of the Group and other related services. All gross sales and revenues are generated in the United Kingdom.
An analysis of gross sales and revenue is as follows:
Year ended
Year ended 29 July 2017 30 July 2016
GBP'000 GBP'000
------------------------ ---------------
Sale of goods 328,381 312,776
Associated sale of warranties 21,121 21,884
------------------------ ---------------
Gross sales 349,502 334,660
------------------------ ---------------
Less: costs of interest free credit (16,537) (17,355)
------------------------ ---------------
Revenue 332,965 317,305
======================== ===============
4. Finance costs
Year ended Year ended
29 July 2017 30 July
GBP'000 2016
GBP'000
------------- ----------
Bank facility renewal fees - 71
Bank facility non-utilisation fees 96 146
------------- ----------
96 217
============= ==========
5. Finance income
Year ended Year ended
29 July 2017 30 July
GBP'000 2016
GBP'000
------------- ----------
Bank interest received 70 86
============= ==========
6. Taxation
The total tax charge for the financial year of GBP2.6m (2016: GBP2.2m) comprises a corporation tax charge of GBP3.2m (2016: GBP1.6m) and a deferred tax credit of GBP0.6m (2016: charge GBP0.6m). The tax charge is an effective rate of 21.4%, which is higher than if the standard rate of corporation tax had been applied due to charges not deductible for tax purposes, principally depreciation on capital expenditure that does not qualify for capital allowances (2016: 19.8% - which was in line with the standard rate of corporation tax).
7. Earnings per share
Year ended Year ended
29 July 2017 30 July
GBP'000 2016
GBP'000
------------- ----------
Profit attributable to owners of the Company 9,402 8,729
------------- ----------
Weighted average number of shares in issue
for the purposes of basic earnings per share 40,009,109 40,006,654
------------- ----------
Effect of dilutive potential Ordinary shares:
* share options 1,085,096 965,889
Weighted average number of Ordinary shares
for the purpose of diluted earnings per
share 41,094,205 40,972,543
Basic earnings per share 23.5p 21.8p
------------- ----------
Diluted earnings per share 22.9p 21.3p
============= ==========
8. Trade and other payables
Year ended Year ended
29 July 2017 30 July
GBP'000 2016
GBP'000
------------- ----------
Trade payables 29,142 14,430
Payments received on account 11,506 12,825
Other taxation and social security payable 4,775 4,862
Accruals 8,371 10,115
------------- ----------
53,794 42,232
============= ==========
The fair value of financial liabilities approximates their carrying value due to short maturities. Financial liabilities are denominated in pounds sterling.
9. Dividends
An interim dividend of 4.90p per ordinary share was declared by the Board of Directors on 21 March 2017 and paid on 11 May 2017. It has been recognised in shareholders' equity in the year to 29 July 2017.
A final dividend of 9.80p per ordinary share has been proposed by the Board of Directors.
At 29 July 2017 the retained earnings of the parent Company amounted to GBP65.8m.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR OKBDQPBDDBKK
(END) Dow Jones Newswires
October 03, 2017 02:00 ET (06:00 GMT)
1 Year Scs Chart |
1 Month Scs Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
