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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Boohoo Group Plc | LSE:BOO | London | Ordinary Share | JE00BG6L7297 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.92 | 2.74% | 34.46 | 34.28 | 34.54 | 34.52 | 33.10 | 33.10 | 2,295,093 | 16:35:23 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Womens Hosiery, Except Socks | 1.77B | -75.6M | -0.0596 | -5.76 | 435.07M |
From May 2019 to May 2024
TIDMBOO
RNS Number : 0012M
boohoo.com plc
25 April 2018
For Immediate Release 25 April 2018
This announcement contains inside information
boohoo.com plc - final results for the year ended 28 February 2018
"Leading the fashion eCommerce market"
Hot Features
Premium
2018 2017 Change
GBP million GBP million
---------------------------------------- ------------ ------------ ----------
Revenue 579.8 294.6 +97%
Gross profit 306.4 160.8 +90%
Gross margin 52.8% 54.6% -180bps
Adjusted EBITDA(1) 56.9 35.6 +60%
% of revenue 9.8% 12.1% -230bps
Adjusted EBIT(2) 50.4 31.2 +61%
% of revenue 8.7% 10.6% -190bps
Adjusted profit before tax(3) 51.0 31.9 +60%
Profit before tax 43.3 30.9 +40%
Adjusted diluted earnings per share(4) 3.23p 2.20p +47%
Diluted earnings per share 2.71p 2.16p +25%
Net cash(5) at year end 133.0 58.4 +GBP74.6m
---------------------------------------- ------------ ------------ ----------
Financial Highlights
Group
-- Revenue GBP579.8 million, up 97% (92% CER(6) ) -- Strong revenue growth across all geographies with UK up 95% and international up 99%
-- Strong balance sheet with net cash of GBP133.0 million (2017: GBP58.4 million), following GBP50 million share placing and with robust operating cash flow of GBP76.2 million (2017: GBP36.1 million)
boohoo
-- Revenue GBP374.1 million, up 32% (29% CER)
-- Gross margin 51.2%, down 330bps, driven by planned investments in the customer proposition (retail gross margin 53.4% (2017: 56.1%))
PrettyLittleThing
-- Revenue GBP181.3 million (up 228% on 12-month comparative period) -- Gross margin 55.2% (retail gross margin 57.2% (2017 12-month comparative: 57.3%))
Nasty Gal
-- Revenue GBP24.4 million -- Revenue and customer growth both strong from start-up on 1 March 2017 -- Gross margin 59.6%
Operational Highlights
Group
-- Distribution centre extension build complete, fit-out on schedule, sufficient for over GBP1 billion future group operation
boohoo
-- 6.4 million active customers(7) , up 22% on prior year
-- Transition to new website platform complete across all markets, with stability, flexibility and performance improvements
-- Significant investments in customer service improving the customer proposition
PrettyLittleThing
-- 3.0 million active customers, up 128% on prior year -- Increasing momentum in brand awareness driving growth in customer numbers -- High profile celebrity associations driving traffic and international expansion
Nasty Gal
-- 0.4 million active customers -- Product range built to over 5,000 lines in 12 months -- International appeal outside of US growing, increasing revenue
-- New offices in Manchester to support a growing operational team and in Los Angeles focussing on marketing
Outlook and guidance
Trading in the first few weeks of the 2019 financial year has made a strong start. Group revenue growth for the next financial year (FY19) is expected to be 35% to 40% with adjusted EBITDA margin between 9% to 10% and capital expenditure of GBP50 to GBP60 million.
Looking beyond the current year we will continue to lead the market on value, service and proposition in all our key geographies. Whilst this will require a continued investment in people and infrastructure, we believe that the benefits of our investments in marketing and warehouse automation will generate economies of scale to allow us to drive sales growth of at least 25%, whilst maintaining a 10% EBITDA margin.
Mahmud Kamani and Carol Kane, joint CEOs, commented:
"The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the boohoo group. Revenue from boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year. Against a backdrop of difficult trading in the UK clothing sector, the group continued to perform well, gaining market share in the expanding online sector. Our international business showed higher growth rates and we are pleased with its gathering momentum.
Our strategy will remain focussed on providing the best fashion at great prices coupled with excellent customer service. To this end we have a plan of continuous investment in systems and technology to ensure we offer an optimal online shopping experience. International expansion will continue as we add more country-specific websites, refine our brands' customer proposition and raise brand awareness through marketing and social media. Our extended distribution centre, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in early 2019.
We have announced this morning that PrettyLittleThing is to move into its own warehouse in the first half of the FY19 financial year. This brings incremental sales capacity in addition to that in our Burnley operations, will help underpin our infrastructure needs and add further operational flexibility for the group. It represents a significant milestone as we develop a distribution network capable of generating GBP3 billion of net sales globally, in line with our vision to lead the fashion eCommerce market."
Investor and analyst meeting
A meeting for analysts will be held today at the office of Buchanan, 107 Cheapside, London, EC2V 6DN commencing at 9.30am. boohoo.com plc's 2018 results are available at www.boohooplc.com.
A live audio webcast will be available at 9.30am via the following link:
http://vm.buchanan.uk.com/2018/boohoo250418/registration.htm
A replay will subsequently be available from 12 noon via the same link.
Enquiries boohoo.com plc Neil Catto, Chief Financial Officer Tel: +44 (0)161 233 2050 Alistair Davies, Investor Relations Tel: +44 (0)161 233 2050 Clara Melia, Investor Relations Tel: +44 (0)20 3289 5520 Zeus Capital - Nominated adviser and joint broker Nick Cowles/Andrew Jones (Corporate Tel: +44 (0)161 831 1512 Finance) John Goold/Benjamin Robertson (Corporate Tel: +44 (0)20 3829 5000 Broking) Jefferies Hoare Govett - Joint broker Nick Adams/Max Jones Tel: +44 (0)20 7029 8000 Buchanan - Financial PR adviser boohoo@buchanan.uk.com Richard Oldworth/Madeleine Seacombe/ Tel: +44 (0)20 7466 5000 Gemma Mostyn-Owen
Notes:
(1) Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, share-based payment charges and option gain on PrettyLittleThing acquisition (2017).
(2) Adjusted EBIT is calculated as profit before tax, interest, share-based payment charges, amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets and option gain on PrettyLittleThing acquisition (2017).
(3) Adjusted profit before tax is calculated as profit before tax, excluding share-based payment charges, amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets and option gain on PrettyLittleThing acquisition (2017).
(4) Adjusted diluted earnings per share is calculated as diluted earnings per share, adding back amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets, share-based payment charges and option gain on PrettyLittleThing acquisition (2017).
(5) Net cash is cash less borrowings.
(6) CER designates Constant Exchange Rate translation of foreign currency revenue, which gives a truer indication of the performance in international markets by removing year-to-year exchange rate movements when local currency sales are converted to sterling.
(7) Active customers defined as having shopped in the last year.
About boohoo.com plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, the group started life as boohoo.com, an inclusive and innovative brand targeting young, value-orientated customers. For over 10 years, boohoo has been pushing boundaries to bring its customers up-to-date and inspirational fashion, 24/7. boohoo has grown rapidly in the UK and internationally, expanding its offering with range extensions into menswear through boohooMAN.
In early 2017 the group extended its customer offering through the acquisitions of the vibrant fashion brand PrettyLittleThing, and free-thinking brand Nasty Gal. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. This investment proposition has helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 30-year-olds around the world. Today the boohoo group sells to 9.8 million customer accounts across all its brands in almost every country in the world.
Forward looking statements and disclaimer
Certain statements included or incorporated by reference within this announcement may be, or may be deemed to be "forward-looking statements" in respect of the boohoo group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates".
By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation (including to meet the requirements of the AIM Rules, MAR, the Prospectus Rules and/or the FSMA), the company expressly disclaims any responsibility or obligation to publish any updates or revisions to any forward-looking statements resulting from new information, future events or otherwise whether following any change to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.
Disclaimer
This announcement and information communicated orally in relation to it does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in boohoo.com plc (the "company"), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the company. Past performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser.
Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
All subsequent oral or written forward-looking statements attributed to boohoo.com plc or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements contained in this announcement are based on information available to the directors of the company at the date of this announcement, unless some other time is specified in relation to them, and the posting or receipt of this announcement shall not give rise to any implication that there has been no change in the facts set forth herein since such date.
Performance during the year
Review of the business
"An outstanding year, with the integration of PrettyLittleThing and Nasty Gal adding to the already successful boohoo brand and introducing a step-change to the revenue and profits of the group."
Overview
2018 2017 Change
GBP000 GBP000
--------------------------------- -------- -------- ----------
Revenue 579,800 294,635 +97%
Gross profit 306,355 160,829 +90%
Gross margin 52.8% 54.6% -180bps
EBITDA 53,663 35,073 +53%
% of revenue 9.3% 11.9% -265bps
Profit before tax 43,313 30,945 +40%
Diluted earnings per share 2.71 2.16p +25%
Net cash(1) at year end 133,047 58,420 +GBP74.6m
Underlying:
Adjusted EBITDA(2) 56,932 35,563 +60%
% of revenue 9.8% 12.1% -230bps
Adjusted EBIT(3) 50,403 31,232 +61%
% of revenue 8.7% 10.6% -190bps
Adjusted profit before tax(4) 51,031 31,869 +60%
Adjusted diluted earnings per
share(5) 3.23p 2.20p +47%
--------------------------------- -------- -------- ----------
(1) Net cash is cash less borrowings.
(2) Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, share-based payment charges and option gain on PrettyLittleThing acquisition (2017).
(3) Adjusted EBIT is calculated as profit before tax, interest, share-based payment charges, amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets and option gain on PrettyLittleThing acquisition (2017).
(4) Adjusted profit before tax is calculated as profit before tax, excluding share-based payment charges and amortisation of acquired intangible assets and option gain on PrettyLittleThing acquisition (2017).
(5) Adjusted diluted earnings per share is calculated as diluted earnings per share, adding back amortisation of acquired intangibles, share-based payment charges and option gain on PrettyLittleThing acquisition (2017).
The group made great progress during the year, integrating a new company, PrettyLittleThing, and a new brand, Nasty Gal, into the boohoo group. Revenue from boohoo continued to grow strongly, whilst there has been an exceptional performance from PrettyLittleThing, and Nasty Gal exceeded our estimates in its first year. Against a backdrop of difficult trading in the UK clothing sector, the group continued to perform well, gaining market share in the expanding online sector. Our international business showed much higher growth rates and we are particularly pleased with its gathering momentum. The group despatched 22 million orders to 9.8 million active customer accounts across all its brands, achieving total revenue of GBP579.8 million.
We raised GBP50 million from a share placing during the year, for investment in building and automation of our new distribution centre and, combined with significant cash generation by the group, our net cash balance rose to GBP133.0 million. Capital investment during the year amounted to GBP46.4 million, much of this being for our distribution centre extension, with capital commitments at the end of the year of GBP28 million.
Distribution centre
Our group distribution centre in Burnley has been enlarged by a new building, with a footprint of 166,000 square feet, now complete and undergoing fit-out ready for use in early 2019. A key aspect of the new facility will be the introduction of a significant amount of automation, which will greatly improve picking efficiency and have a short payback period on the capital invested. The enlarged facility will be sufficient for an operation capable of generating over GBP1 billion in net sales. We have also opened substantial employee welfare facilities at the distribution and customer services centre, which includes a gym, exercise studio, leisure facilities and subsidised canteen. PrettyLittleThing will relocate its inventory to a separate third-party managed warehouse facility in the first half of FY19. This brings incremental sales capacity in addition to our Burnley operations, will help underpin PLT's infrastructure needs and adds further operational flexibility for the group as we continue to invest in our future distribution network. Project planning for future storage requirements is well under way with a project team working on the next phase of distribution centre development.
boohoo and boohooMAN
Performance
Revenue for the year increased to GBP374.1 million, up 32% (29% CER) on the previous year.
Revenue growth in the UK, the largest geographic market, has been robust and international growth very strong as the reach and appeal of the brand increases. Additional breadth in the product range has contributed to revenue growth, with several new product categories introduced in the year.
Product
boohoo's comprehensive range of clothing, footwear, accessories and beauty products has continued to grow during the year, with new additions and greater depth in ranges. Our extended women's size ranges of plus size and curve, petite and tall have performed extremely well and new additions such as premium, soft tailoring, lingerie, maternity and athleisure have contributed to revenue growth and to attracting a more diverse customer base. Menswear has continued to perform very well, with a rapidly growing and more comprehensive product line. Introductions this year included big and tall sizing, an extended activewear line and a MAN logo range.
Our offering changes daily, with hundreds of new styles added and the very latest fashions appearing within days or weeks of trends being spotted by our fashion experts and offered to our customers at affordable prices. The breadth of the range makes boohoo a destination to which customers keep returning to find their desired items with ease.
Marketing
Marketing activity is focussed on a successful formula of a mix of media, including social media influencers, bloggers, TV, outdoor, email, students and digital acquisition channels. Our Instagram site has greatly increased its reach, with followers doubling this year and content much increased. Our social media presence continues to grow and we now have 4.8 million followers on Instagram, 2.7 million Facebook likes and 0.6 million followers on Twitter.
Customer interaction
Active customer numbers over the last 12 months increased by 22% to 6.4 million. Conversion rate to sale increased from 4.0% to 4.3% of sessions, when measured on website statistics alone, in order to remove duplicated sessions on the app. Order frequency remained unchanged with customers placing an order with us, on average, 2.13 times in 12 months, whilst the number of items per basket rose 6% to 3.06.
We have continued to refine the customer proposition with free returns and next day delivery available in more overseas markets. Future developments will include more country-specific websites and even faster customer service response times.
boohoo Premier, offering unlimited shipping for an annual fee and introduced in late 2016 in the UK, has continued to attract many new subscribers. We have introduced several new payment types in overseas markets, in line with our aim to attain best-in-class customer service.
Technology
All our remaining regional websites were successfully migrated to the new website platform during the year. The new platform has proven to have superior stability, with no downtime during the peak Black Friday and pre-Christmas periods, greater flexibility for development and faster response times for customers.
We have continued to increase our use of cloud platforms for scalability and resilience of our systems. A continual programme of app improvement and development is ongoing, including roll-out of the app to more international markets. We have now implemented an image recognition capability. The first implementation of this technology allows customers to upload an image and find similar products from the boohoo range. We are experimenting with other uses of this in, for example, outfit builder, shop the look and other uses. boohooMAN launched apps for the UK, US and Australian markets during the year. All our sites are optimised for mobile browsing, whilst mobile device use continues to rise and now accounts for 73% of sessions.
PrettyLittleThing
Performance
PrettyLittleThing ("PLT") achieved outstanding revenue growth of 228% over the comparable 12-month period and 209% in the like-for-like two-month post-acquisition period. The UK is the brand's largest market, where revenue growth and market share have increased significantly. International sales growth has been exceptionally strong, up 364%. The international markets have enormous potential to grow given our relatively small market share in large opportunity markets including the USA, France and the rest of continental Europe. Gross margin has remained strong at 55.2% (2017 12-month comparative: 56.8%), with retail gross margin at 57.2% (2017 12-month comparative: 57.3%).
Product
PLT brings the latest and most relevant celebrity looks at affordable prices to our customers, with a choice of over 12,500 styles and new items available daily. We have widened our product range in the year to include higher price point premium categories, more beauty products and, from September 2017, a shape range. We launched two celebrity collections in the year with Kourtney Kardashian (October 2017) and Olivia Culpo (August 2017), which attracted significant global media interest across both traditional and social media channels. Our new curve, shape, plus and petite ranges have proved popular with customers in all markets, and we have also introduced an activewear range.
Marketing
Social media advertising is highly effective in reaching our target audience and we have seen the number of our followers increase significantly across all social media platforms. Our celebrity collaborations with Kourtney Kardashian, Kylie Jenner and Olivia Culpo have also been instrumental in raising brand awareness globally and the brand is recognised by the younger generation as one of the hottest in the UK.
Customer interaction
The number of country-specific websites increased to seven following the addition of our first foreign language website in French, with more foreign language websites set to be launched in the 2019 financial year. We have also strengthened our overall customer proposition and during the 2019 financial year there will be a continued focus on enhancing the customer experience, with the launch of fully tracked returns portals planned for Q1 of the financial year across multiple international markets.
Active customer numbers over the last 12 months increased by 128% to 3.0 million. We have 1.2 million followers on Facebook (an increase of 51% in 12 months), 0.3 million followers on Twitter, 3.3 million Instagram followers (an increase of 106% in 12 months), 2.0 million YouTube views as well as a presence on several other social media channels.
Significant investment has been made, and continues to be made, in our customer services team, enabling us to deliver market leading customer service across multiple platforms.
Technology
We have continued to invest in our technology infrastructure to enable us to support the growth of the business, as well as to offer the best quality customer proposition. Development has been underway throughout the year to enhance our websites to support the increasing product range and make the customer's shopping experience as seamless as possible. We have continued to invest in the development of our app which operates on both iOS and Android, with 20% of all customer visits coming via the app in the 2018 financial year, up from 10% in the prior period.
Nasty Gal
Performance
From a start-up in March 2017, revenue has increased steadily and strongly throughout the year. Revenue for the year amounted to GBP24.4 million, which was greater than our expectations. It is gratifying to see the growth in sales outside of the USA, where Nasty Gal predominated under its previous ownership, as this is highly encouraging in indicating the international appeal of the brand. We have invested heavily in marketing to increase brand awareness and re-energise the brand, concentrating on the key markets of the USA and UK initially.
We opened new offices in Los Angeles for our US marketing team and in Manchester for the expanding design, product and buying teams.
Product
Nasty Gal's distinctive product offering covers higher price points than those of boohoo and targets the confident girl who is not afraid to be herself. From a new start-up in March of this year, the range has increased to a comprehensive offering of clothing, shoes and accessories. We expect continued momentum in revenue growth as the range widens and the brand is reactivated through targeted marketing.
Marketing
The marketing strategy has focussed on building and extending the number of bloggers and influencers and staging key media events to re-engage customer interest and promote brand loyalty. A pop-up store in London generated much interest, contributing to a growing awareness of the brand in the UK.
Customer interaction
Nasty Gal has six country and regional websites, developed since start-up in March 2017 and Android and iOS apps for the UK, US and the Australian markets.
On social media we have 2.6 million followers on Instagram, 1.3 million Facebook likes and 0.2 million followers on Twitter.
From strength to strength
Financial review
"The group has achieved a strong performance with revenues and profits increasing in all territories."
Group revenue by brand
2018 2017 Change Change
GBP000 GBP000 CER
------------------- -------- -------- ------- -------
boohoo 374,115 283,378 +32% +29%
PrettyLittleThing 181,269 11,257 - -
Nasty Gal 24,416 - - -
579,800 294,635 +97% +92%
=================== ======== ======== ======= =======
The sales revenue in 2017 above for PrettyLittleThing is for the two months to 28 February 2017 following acquisition. For comparative purposes, PrettyLittleThing's revenue for the twelve months to 28 February 2017 was GBP55.3 million.
Group revenue by geographical market
2018 2017 Change Change
GBP000 GBP000 CER
---------------- -------- -------- ------- -------
UK 355,614 181,981 +95% +95%
Rest of Europe 66,281 34,735 +91% +73%
USA 92,690 40,435 +129% +121%
Rest of world 65,215 37,484 +74% +64%
---------------- -------- -------- ------- -------
579,800 294,635 +97% +92%
================ ======== ======== ======= =======
KPIs
boohoo
2018 2017 Change
Active customers(1) 6.4 million 5.2 million +22%
Number of orders 13.6 million 11.1 million +22%
Order frequency(2) 2.13 2.13 -
Conversion rate to sale (3) 4.3% 4.0%(5) +30bps
Average order value(4) GBP39.25 GBP37.76 +4%
Number of items per basket 3.06 2.89 +6%
----------------------------- ------------- ------------- -------
PrettyLittleThing
2 months 12 months 12 months'
2018 2017 2017 change
Active customers(1) 3.0 million 1.3 million 1.3 million +128%
Number of orders 7.5 million 0.5 million 2.6 million +189%
Order frequency(2) 2.55 2.00 2.00 +28%
Conversion rate to sale (3) 3.7% 3.7% 3.7% -
Average order value(4) GBP36.05 GBP33.18 GBP34.36 +5%
Number of items per basket 2.43 2.03 2.10 +16%
----------------------------- ------------- ------------ ------------ -----------
Nasty Gal
2018
Active customers(1) 0.4 million
Number of orders 0.6 million
Order frequency(2) 1.37
Conversion rate to sale (3) 1.7%
Average order value(4) GBP52.82
Number of items per basket 2.89
----------------------------- ------------
(1) Defined as having shopped in the last 12 months
(2) Defined as number of orders in last 12 months divided by number of active customers
(3) Defined as the percentage of orders taken to internet sessions
(4) Calculated as gross sales including sales tax divided by the number of orders
(5) 2017 restated on consistent basis as in 2018, based on website sessions only due to changing the app platform during 2018
Consolidated income statement
2018 2017 Change
GBP000 GBP000
---------------------------------------------------------------------------- ---------- ---------- --------
Revenue 579,800 294,635 +97%
Cost of sales (273,445) (133,806) +104%
---------------------------------------------------------------------------- ---------- ---------- --------
Gross profit 306,355 160,829 +90%
Gross margin 52.8% 54.6% -180bps
Operating costs (249,582) (128,723)
Other income 159 3,457
Adjusted EBITDA 56,932 35,563 +60%
Adjusted EBITDA margin % 9.8% 12.1% -230bps
Depreciation (3,997) (2,488)
Amortisation of other intangible assets (2,532) (1,843)
Adjusted EBIT 50,403 31,232 +61%
Adjusting items:
Amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets (4,449) (434)
Equity-settled share-based payment charges (3,269) (1,895)
Gain on option to acquire PrettyLittleThing.com Limited - 1,405
---------------------------------------------------------------------------- ---------- ---------- --------
Operating profit 42,685 30,308 +41%
Finance income 774 637
Finance expense (146) -
---------------------------------------------------------------------------- ---------- ---------- --------
Profit before tax 43,313 30,945 +40%
Tax (7,313) (6,284)
---------------------------------------------------------------------------- ---------- ---------- --------
Profit after tax for the year 36,000 24,661 +46%
============================================================================ ========== ========== ========
Diluted earnings per share 2.71p 2.16p +25%
Adjusted profit after tax for the year 42,310 25,119 +68%
Amortisation of acquired PrettyLittleThing and Nasty Gal intangible assets (4,449) (434)
Share-based payment charges (3,269) (1,895)
Gain on option to acquire PrettyLittleThing.com Limited - 1,405
Adjustment for tax 1,408 466
---------------------------------------------------------------------------- ---------- ---------- --------
Profit after tax for the year 36,000 24,661
---------------------------------------------------------------------------- ---------- ---------- --------
Adjusted profit for the period attributable to shareholders of the company 37,610 24,916 +51%
Adjusted diluted earnings per share 3.23p 2.20p +47%
---------------------------------------------------------------------------- ---------- ---------- --------
Gross margin reduced from 54.6% to 52.8%, primarily due to an increase in promotional activity, which has in turn increased sales growth, and to a lesser extent due to an increase in the proportion of wholesale revenue.
Operating costs comprise distribution costs and administrative expenses excluding depreciation and amortisation and have slightly decreased by 70bps on revenue. Distribution costs have increased with revenue growth and remained broadly in line with the prior year as a percentage of revenue. Administrative expenses, which include marketing expenses, have risen due to the combination of revenue growth and the building of our infrastructure to support the future business expansion and also remained in line with the prior year percentage of revenue.
Adjusted EBITDA, which is not a statutory measure, represents earnings before interest, tax, depreciation, amortisation, non-cash share-based payments charges and exceptional items. It provides a useful measure of the underlying profitability of the business. Adjusted EBITDA increased by 60% from GBP35.6 million to GBP56.9 million and, as a percentage of revenue, decreased from 12.1% to 9.8%, due to a combination of investment in the customer proposition in boohoo driving revenue growth and to the immaturity of the newly acquired and rapidly growing businesses, PrettyLittleThing and Nasty Gal.
Adjusted profit after tax, as with Adjusted EBITDA, provides another more consistent measure of the underlying profitability of the business by removing non-cash amortisation of intangible assets relating to the acquisition of PrettyLittleThing and Nasty Gal (being their trademarks and customer lists), share-based payment charges and exceptional items.
Taxation
The effective rate of tax for the year was 16.9% (2017: 20.0%), which is less than the blended UK statutory rate of tax for the year of 19.1% (2017: 20.0%), due to prior year tax adjustments relating to UK tax incentives on qualifying expenditure.
Consolidated statement of financial position
2018 2017
GBP000 GBP000
--------------------------------------- --------- ---------
Intangible assets 30,877 35,446
Property, plant and equipment 71,994 32,019
Financial assets 2,445 231
Deferred tax asset 6,479 4,494
---------------------------------------- --------- ---------
Non-current assets 111,795 72,190
Working capital (30,923) (11,939)
Net financial assets 5,466 (11,817)
Cash and cash equivalents 142,575 70,330
Interest bearing loans and borrowings (9,528) (11,910)
Deferred tax liability (2,101) (2,597)
Current tax liability (4,505) (3,761)
Net assets 212,779 100,496
======================================== ========= =========
Working capital has reduced primarily due to an increase in payables and accruals relating to our increased trading activity and the acquisition of the new brands.
Intangible and fixed asset additions and acquisitions
2018 2017
GBP000 GBP000
--------------------------------------------------- ------- -------
Acquired intangible and fixed assets
PrettyLittleThing intangible assets - 14,952
PrettyLittleThing tangible fixed assets - 994
---------------------------------------------------- ------- -------
- 15,946
Purchased intangible and fixed assets
Intangible assets
Nasty Gal intangible assets - 16,096
Patents and licences 9 1
Software 2,403 2,213
---------------------------------------------------- ------- -------
2,412 18,310
Tangible fixed assets
Distribution centre 33,753 8,958
Offices, office equipment, fixtures and fit-outs 9,991 3,261
Motor vehicles 228 145
---------------------------------------------------- ------- -------
43,972 12,364
Total intangible and fixed asset additions 46,384 46,620
==================================================== ======= =======
Liquidity and financial resources
Operating cash flow was GBP76.2 million compared to GBP36.1 million in the previous year and free cash flow was GBP29.9 million compared to GBP5.4 million in the previous financial year. Capital expenditure was GBP46.4 million, which includes a GBP33.8 million investment in our distribution centre to support projected growth in trade. A share placing during the year raised GBP50 million. The closing cash balance for the group was GBP142.6 million and the net cash balance GBP133.0 million.
Consolidated cash flow statement
2018 2017
GBP000 GBP000
------------------------------------------------------------------------------------------- ---------- -------------
Profit for the year 36,000 24,661
Depreciation charges and amortisation 10,978 4,765
Share-based payments charge 3,269 1,895
Tax expense 7,313 6,284
Finance income (774) (637)
Finance expense 146 -
Increase in inventories (14,078) (11,925)
Increase in trade and other receivables (5,393) (4,107)
Increase in trade and other payables 38,780 15,166
------------------------------------------------------------------------------------------- ---------- -------------
Operating cash flow 76,241 36,102
Capital expenditure and intangible asset purchases (46,384) (30,675)
Free cash flow 29,857 5,427
Acquisition of 66% interest in PrettyLittleThing.com Limited (excess of cash acquired over
consideration) - 655
Gain on option to acquire PrettyLittleThing.com Limited - (1,405)
Proceeds from the issue of ordinary shares 51,531 54
Finance income received 612 614
Finance expense paid (146) -
Tax paid (7,227) (5,206)
Proceeds from new loan - 11,910
Repayment of borrowings (2,382) -
Net cash flow 72,245 12,049
Cash and cash equivalents at beginning of year 70,330 58,281
------------------------------------------------------------------------------------------- ---------- -------------
Cash and cash equivalents at end of year 142,575 70,330
=========================================================================================== ========== =============
Trends and factors likely to affect future performance
The market for online fashion is forecast to continue to grow and, along with the increasing use of the internet globally, provides a favourable backdrop for the group with much opportunity for further growth. Customers throughout the world are seeking a wide choice of quality products at value prices lower than those available on the high street with the convenience of home delivery. The group's target market has a high propensity to spend on fashion and the market is resilient to external macroeconomic factors.
Outlook
We are very encouraged by the continued growth of our brands across all geographic regions. As online fashion retail grows globally, the group is well-placed to benefit from changing consumer preferences. Our strategy will remain focussed on providing the best fashion at great prices coupled with excellent customer service. To this end we have a plan of continuous investment in systems and technology to ensure we offer an optimal online shopping experience. International expansion will continue as we add more country-specific websites, refine our customer proposition and raise brand awareness through marketing and social media.
Our extended Burnley distribution centre, which will have a significant element of automation to drive efficiency savings, is scheduled for operational use in early 2019 and will provide sufficient capacity for an operation of over GBP1 billion net sales. PrettyLittleThing is also to move into its own warehouse in the first half of the FY19 financial year. This brings incremental sales capacity in addition to that in our Burnley operations, will help underpin our infrastructure needs and add further operational flexibility for the group. It represents a significant milestone as we develop a distribution network capable of generating GBP3 billion of net sales globally, in line with our vision to lead the fashion eCommerce market.
Trading in the first few weeks of the 2019 financial year has made a strong start. Group revenue growth for the next financial year (FY19) is expected to be 35% to 40% with adjusted EBITDA margin between 9% to 10% and capital expenditure of GBP50 to GBP60 million.
Consolidated statement of comprehensive income
for the year ended 28 February 2018
Note 2018 2017
GBP000 GBP000
---------------------------------------------- ----- ---------- ----------
Revenue 2 579,800 294,635
Cost of sales (273,445) (133,806)
---------------------------------------------- ----- ---------- ----------
Gross profit 306,355 160,829
Distribution costs (126,757) (66,849)
Administrative expenses (132,623) (68,100)
Amortisation of acquired intangibles (4,449) (434)
Other income 3 159 4,862
---------------------------------------------- ----- ---------- ----------
Operating profit 5 42,685 30,308
Finance income 4 774 637
Finance expense (146) -
---------------------------------------------- ----- ---------- ----------
Profit before tax 43,313 30,945
Taxation 9 (7,313) (6,284)
Profit for the year 36,000 24,661
============================================== ===== ========== ==========
Profit for the year attributable to:
Owners of the parent company 31,652 24,458
Non-controlling interests 4,348 203
---------------------------------------------- ----- ---------- ----------
36,000 24,661
============================================== ===== ========== ==========
Total other comprehensive income/(expense) for the year, net of income
tax
Loss reclassified to profit and loss
during the year 6,516 9,604
Fair value gain/(loss) on cash flow
hedges during the year 12,981 (16,351)
Total comprehensive income for the
year 55,497 17,914
============================================== ===== ========== ==========
Total comprehensive income attributable
to:
Equity attributable to owners of the
parent company 51,149 17,711
Non-controlling interests 4,348 203
---------------------------------------------- ----- ---------- ----------
Total equity 55,497 17,914
============================================== ===== ========== ==========
Earnings per share 6
Basic 2.78p 2.19p
Diluted 2.71p 2.16p
---------------------------------------------- ----- ---------- ----------
Consolidated statement of financial position
at 28 February 2018
Note 2018 2017
GBP000 GBP000
-------------------------------------- ---- --------- ---------
Assets
Non-current assets
Intangible assets 10 30,877 35,446
Property, plant and equipment 11 71,994 32,019
Financial assets 19 2,445 231
Deferred tax 13 6,479 4,494
-------------------------------------- ---- --------- ---------
111,795 72,190
Current assets
Inventories 14 48,248 34,170
Trade and other receivables 15 17,499 11,944
Financial assets 19 6,770 489
Cash and cash equivalents 142,575 70,330
Total current assets 215,092 116,933
Total assets 326,887 189,123
Liabilities
Current liabilities
Trade and other payables 16 (96,670) (58,053)
Interest bearing loans and borrowings 17 (2,382) (2,382)
Financial liabilities 19 (837) (10,229)
Current tax liability (4,505) (3,761)
Total current liabilities (104,394) (74,425)
Non-current liabilities
Interest bearing loans and borrowings 17 (7,146) (9,528)
Financial liabilities 19 (467) (2,077)
Deferred tax 13 (2,101) (2,597)
Total liabilities (114,108) (88,627)
Net assets 212,779 100,496
====================================== ==== ========= =========
Equity
Share capital 18 11,496 11,233
Share premium 602,578 551,720
Capital redemption reserve 100 100
Hedging reserve 7,911 (11,586)
EBT reserve (351) (761)
Translation reserve 168 5
Reconstruction reserve (515,282) (515,282)
Non-controlling interest 8,761 3,978
Retained earnings 97,398 61,089
-------------------------------------- ---- --------- ---------
Total equity 212,779 100,496
====================================== ==== ========= =========
Consolidated statement of changes in equity
Share Share Capital Hedging EBT Translation Reconstruction Non-controlling Retained Total
capital premium redemption reserve reserve reserve reserve interest earnings equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at 29
February 2016 11,233 551,666 100 (4,839) (761) 1 (515,282) - 31,309 73,427
Acquisition of 66%
interest in
PrettyLittleThing.
com Limited - - - - - - - 3,775 - 3,775
Issue of shares - 54 - - - - - - - 54
Share-based
payments credit - - - - - - - - 1,895 1,895
Excess deferred tax
on share-based
payments - - - - - - - - 3,427 3,427
Profit for the year - - - - - - - 203 24,458 24,661
Translation of
foreign operations - - - - - 4 - - - 4
Loss reclassified
to profit and loss - - - 9,604 - - - - - 9,604
Fair value loss on
cash flow hedges
during the year - - - (16,351) - - - - - (16,351)
------------------- ------- ------- ---------- -------- ------- ----------- -------------- --------------- -------- --------
Balance at 28
February 2017 11,233 551,720 100 (11,586) (761) 5 (515,282) 3,978 61,089 100,496
Issue of shares 264 50,857 - - 410 - - - - 51,531
Share-based
payments credit - - - - - - - 435 2,834 3,269
Excess deferred tax
on share-based
payments - - - - - - - - 1,823 1,823
Profit for the year - - - - - - - 4,348 31,652 36,000
Translation of
foreign operations - - - - - 163 - - - 163
Loss reclassified
to profit and loss - - - 6,516 - - - - - 6,516
Fair value gain on
cash flow hedges
during the year - - - 12,981 - - - - - 12,981
Balance at 28
February 2018 11,496 602,578 100 7,911 (351) 168 (515,282) 8,761 97,398 212,779
=================== ======= ======= ========== ======== ======= =========== ============== =============== ======== ========
Consolidated cash flow statement
for the year ended 28 February 2018
Note 2018 2017
GBP000 GBP000
-------------------------------------------------- ---- -------- --------
Cash flows from operating activities
Profit for the year 36,000 24,661
Adjustments for:
Share-based payments charge 3,269 1,895
Depreciation charges and amortisation 10,978 4,765
Gain on option to acquire PrettyLittleThing.com
Limited - (1,405)
Finance income (774) (637)
Finance expense 146 -
Tax expense 7,313 6,284
-------------------------------------------------- ---- -------- --------
56,932 35,563
Increase in inventories 14 (14,078) (11,925)
Increase in trade and other receivables 15 (5,393) (4,107)
Increase in trade and other payables 16 38,780 15,166
Cash generated from operations 76,241 34,697
Tax paid (7,227) (5,206)
Net cash generated from operating activities 69,014 29,491
Cash flows from investing activities
Acquisition of intangible assets 10 (2,412) (18,311)
Acquisition of property, plant and equipment 11 (43,972) (12,364)
Acquisition of 66% interest in PrettyLittleThing.com
Limited (excess of cash acquired over consideration) - 655
Finance income received 612 614
Net cash used in investing activities (45,772) (29,406)
Cash flows from financing activities
Proceeds from the issue of ordinary shares 52,281 54
Share issue costs written off to share
premium (750) -
Finance expense paid (146) -
Proceeds from new loan - 11,910
Repayment of borrowings (2,382) -
Net cash generated from financing activities 49,003 11,964
Increase in cash and cash equivalents 72,245 12,049
================================================== ==== ======== ========
Cash and cash equivalents at beginning
of year 70,330 58,281
-------------------------------------------------- ---- -------- --------
Cash and cash equivalents at end of year 142,575 70,330
================================================== ==== ======== ========
Notes to the financial statements
(forming part of the financial statements)
1 Accounting policies
General information
boohoo.com plc is a public limited company incorporated and domiciled in Jersey and listed on the Alternative Investment Market (AIM) of the London Stock Exchange. Its registered office address is: 12 Castle Street, St Helier, Jersey, JE2 3RT. The company was incorporated on 19 November 2013.
Basis of preparation
This condensed consolidated financial information for the year ended 28 February 2018 has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards as adopted by the European Union ("Adopted IFRSs"), IFRS IC Interpretations and the Companies (Jersey) Law 1991.
The financial information contained in this preliminary announcement for the years ended 28 February 2018 and 28 February 2017 does not comprise the group's statutory financial statements within the meaning of Companies (Jersey) Law 1991. Statutory accounts for the year ended 28 February 2018 will be filed with the Jersey Companies Registry in due course. The auditors' report on the statutory accounts for each of the years ended 28 February 2018 and 28 February 2017 is unqualified, does not draw attention to any matters by way of emphasis and does not contain any statement under any matters that are required to be reported by exception under Companies (Jersey) Law 1991.
Going concern
The directors have reviewed the group's forecast and projections, including assumptions concerning capital expenditure and expenditure commitments and their impact on cash flows, and have a reasonable expectation that the group has adequate financial resources to continue its operations for the foreseeable future. For this reason they have continued to adopt the going concern basis in preparing the financial statements.
In preparing the preliminary announcement, the directors have also made reasonable and prudent judgements and estimates and prepared the preliminary announcement on the going concern basis. The preliminary announcement and management report contained herein give a true and fair view of the assets, liabilities, financial position and profit and loss of the group.
Changes to accounting standards
There have been no changes to accounting standards during the year which have had or are expected to have any material impact on the group.
2 Segmental analysis
Year ended 28 February 2018
boohoo PLT Nasty Gal Total
GBP000 GBP000 GBP000 GBP000
------------------------ --------- -------- --------- -----------
Revenue 374,115 181,269 24,416 579,800
Cost of sales (182,394) (81,175) (9,876) (273,445)
------------------------- --------- -------- --------- -----------
Gross profit 191,721 100,094 14,540 306,355
Distribution costs (80,417) (40,661) (5,679) (126,757)
------------------------- --------- -------- --------- -----------
Segment result 111,304 59,433 8,861 179,598
Administrative expenses - - - (137,072)
Other income - - - 159
------------------------- --------- -------- --------- -----------
Operating profit - - - 42,685
Finance income - - - 774
Finance expense - - - (146)
------------------------- --------- -------- --------- -----------
Profit before tax - - - 43,313
========================= ========= ======== ========= ===========
Year ended 28 February 2017
boohoo PLT Total
GBP000 GBP000 GBP000
------------------------ --------- -------- --------- ---------
Revenue 283,378 11,257 294,635
Cost of sales (129,026) (4,780) (133,806)
------------------------- --------- -------- --------- ---------
Gross profit 154,352 6,477 160,829
Distribution costs (64,375) (2,474) (66,849)
------------------------- --------- -------- --------- ---------
Segment result 89,977 4,003 93,980
Administrative expenses - - (68,534)
Other income - - 4,862
------------------------- --------- -------- --------- ---------
Operating profit - - 30,308
Finance income - - 637
Finance expense - - -
Profit before tax - - 30,945
========================= ========= ======== ========= =========
Revenue by geographic region
2018 2017
GBP000 GBP000
--------------- ------- -------
UK 355,614 181,981
Rest of Europe 66,281 34,735
USA 92,690 40,435
Rest of world 65,215 37,484
---------------- ------- -------
579,800 294,635
=============== ======= =======
3 Other income
2018 2017
GBP000 GBP000
-------------------------------------------------------- ------ ------
Income from warehouse management services - 3,457
Rental income 159 -
Gain on option to acquire PrettyLittleThing.com Limited - 1,405
159 4,862
======================================================== ====== ======
The income from warehouse management services provided to PLT ceased after PLT became part of the group in January 2017.
4 Finance income and expense
2018 2017
GBP000 GBP000
--------------------------------------- ------ ------
Finance income: Bank interest received 774 637
Finance expense: Loan interest paid (146) -
5 Profit before tax
Profit before tax is stated after charging/(crediting): 2018 2017
GBP000 GBP000
-------------------------------------------------------- ------ -------
Operating lease rentals for buildings 1,509 1,060
Equity-settled share-based payment charges 3,269 1,895
Gain on option to acquire PrettyLittleThing.com Limited - (1,405)
Depreciation of property, plant and equipment 3,997 2,488
Amortisation of intangible assets 2,532 1,843
Amortisation of acquired intangible assets 4,449 434
-------------------------------------------------------- ------ -------
6 Earnings per share
Basic earnings per share is calculated by dividing profit after tax attributable to members of the holding company by the weighted average number of shares in issue during the year. Own shares held by the Employee Benefit Trust are eliminated from the weighted average number of shares. Diluted earnings per share is calculated by dividing the profit after tax attributable to members of the holding company by the weighted average number of shares in issue during the year, adjusted for potentially dilutive share options.
2018 2017
------------------------------------------------- -------------- --------------
Weighted average shares in issue for basic
earnings per share 1,138,722,751 1,118,177,098
Dilutive share options 27,108,839 16,269,059
-------------------------------------------------- -------------- --------------
Weighted average shares in issue for diluted
earnings per share 1,165,831,590 1,134,446,158
================================================== ============== ==============
Earnings (GBP000) 31,652 24,458
Basic earnings per share 2.78p 2.19p
Diluted earnings per share 2.71p 2.16p
-------------------------------------------------- -------------- --------------
Earnings (GBP000) 31,652 24,458
Adjusting items:
Amortisation of intangible assets arising
on acquisitions 4,449 434
Share-based payment charges 3,269 1,895
Gain on option to acquire PrettyLittleThing.com
Limited - (1,405)
Adjustment for tax (1,408) (466)
Adjustment for non-controlling interest (352) -
------------------------------------------------- -------------- --------------
Adjusted earnings 37,610 24,916
-------------------------------------------------- -------------- --------------
Basic adjusted earnings per share 3.30p 2.23p
Diluted adjusted earnings per share 3.23p 2.20p
-------------------------------------------------- -------------- --------------
Adjusted earnings and adjusted earnings per share gives a more consistent measure of the underlying performance of the business excluding non-cash accounting charges relating to the amortisation of intangible assets valued upon acquisitions, non-cash share-based payment charges and other exceptional items.
7 Staff numbers and costs
The average monthly number of persons employed by the group (including directors) during the year, analysed by category, was as follows:
Number of employees
2018 2017
--------------- ---------- ---------
Administration 955 689
Distribution 1,220 612
--------------- ---------- ---------
2,175 1,301
=============== ========== =========
The aggregate payroll costs of these persons were as follows:
2018 2017
GBP000 GBP000
------------------------------------------- ------ ------
Wages and salaries 49,510 31,567
Social security costs 5,553 4,551
Post-employment benefits 647 410
Equity-settled share-based payment charges 3,269 1,895
58,979 38,423
=========================================== ====== ======
8 Directors' and key management compensation
2018 2017
GBP000 GBP000
------------------------------------------- ------ ------
Short-term employee benefits 5,856 5,006
Post-employment benefits 131 86
Equity-settled share-based payment charges 454 17
6,441 5,109
=========================================== ====== ======
Directors' and key management compensation comprises the directors and executive committee members.
9 Taxation
2018 2017
GBP000 GBP000
------------------------------------------- ------- ------
Analysis of charge in year
Current tax on income for the year 9,294 7,126
Adjustments in respect of prior year taxes (1,323) (6)
Deferred taxation (658) (836)
Tax on profit on ordinary activities 7,313 6,284
=========================================== ======= ======
The total tax charge differs from the amount computed by applying the blended UK rate of 19.08%
for the year (2017: 20.0%) to profit before tax as a result of the following:
Profit on ordinary activities before tax 43,313 30,945
------------------------------------------------------------------------------------------ ------- ------
Profit before tax multiplied by the standard blended rate of corporation tax of the UK of
19.08% (2017: 20.0%) 8,273 6,189
Effects of:
Expenses not deductible for tax purposes 375 246
Income not subject to tax - (320)
Adjustments in respect of prior year taxes (1,323) (6)
Overseas tax differentials 9 5
Depreciation in excess of capital allowances (21) 170
Tax on profit on ordinary activities 7,313 6,284
========================================================================================== ======= ======
A change to reduce the main rate of corporation tax to 17% from 1 April 2020 was announced in the Chancellor's budget on 16 March 2016. Changes to reduce the UK corporation tax rate to 19% from 1 April 2017 and to 17% from 1 April 2020 had already been substantively enacted on 15 September 2016. The prior year tax adjustment is in respect of tax incentives for research and development expenditure.
10 Intangible assets
Patents and licences Trademarks Customer lists Computer software Total
GBP000 GBP000 GBP000 GBP000 GBP000
Cost
Balance at 1 March 2016 309 - - 7,075 7,384
On acquisition - 10,000 4,800 152 14,952
Additions 1 15,070 1,026 2,213 18,310
Disposals - - - (232) (232)
----------------------------- --------------------- ----------- --------------- ------------------ -------
Balance at 28 February 2017 310 25,070 5,826 9,208 40,414
Additions 9 - - 2,403 2,412
Disposals - - - (567) (567)
Balance at 28 February 2018 319 25,070 5,826 11,044 42,259
============================= ===================== =========== =============== ================== =======
Accumulated amortisation
Balance at 1 March 2016 149 - - 2,693 2,842
On acquisition - - - 81 81
Amortisation for year 31 167 267 1,812 2,277
Disposals - - - (232) (232)
----------------------------- --------------------- ----------- --------------- ------------------ -------
Balance at 28 February 2017 180 167 267 4,354 4,968
Amortisation for year 31 2,507 1,942 2,501 6,981
Disposals - - - (567) (567)
Balance at 28 February 2018 211 2,674 2,209 6,288 11,382
============================= ===================== =========== =============== ================== =======
Net book value
At 29 February 2016 160 - - 4,382 4,542
At 28 February 2017 130 24,903 5,559 4,854 35,446
--------------------- ----------- --------------- ------------------ -------
At 28 February 2018 108 22,396 3,617 4,756 30,877
============================= ===================== =========== =============== ================== =======
The cost and accumulated amortisation of trademarks and customer lists on acquisition represent those of PrettyLittleThing and the cost of trademarks and customer lists additions represent those of Nasty Gal.
11 Property, plant and equipment
Short Fixtures Computer Motor Land & Total
leasehold and fittings equipment vehicles buildings
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------- ----------- -------------- ----------- ---------- ----------- --------
Cost
Balance at 1 March
2016 766 9,498 1,565 113 13,169 25,111
On acquisition 409 157 401 27 - 994
Additions 172 6,631 689 145 4,727 12,364
Disposals (226) (681) (171) - - (1,078)
Balance at 28 February
2017 1,121 15,605 2,484 285 17,896 37,391
Additions 1,156 19,911 1,593 228 21,084 43,972
Disposals (54) (72) (540) (74) - (740)
Balance at 28 February
2018 2,223 35,444 3,537 439 38,980 80,623
Accumulated depreciation
Balance at 1 March
2016 479 1,815 994 51 346 3,685
On acquisition 66 30 176 5 - 277
Depreciation charge
for the year 118 1,538 512 66 254 2,488
Disposals (226) (681) (171) - - (1,078)
-------------------------- ----------- -------------- ----------- ---------- ----------- --------
Balance at 28 February
2017 437 2,702 1,511 122 600 5,372
Depreciation charge
for the year 328 2,463 763 85 358 3,997
Disposals (54) (72) (540) (74) - (740)
Balance at 28 February
2018 711 5,093 1,734 133 958 8,629
========================== =========== ============== =========== ========== =========== ========
Net book value
At 29 February 2016 287 7,683 571 62 12,823 21,426
At 28 February 2017 684 12,903 973 163 17,296 32,019
----------- -------------- ----------- ---------- ----------- --------
At 28 February 2018 1,512 30,351 1,803 306 38,022 71,994
========================== =========== ============== =========== ========== =========== ========
The cost and accumulated depreciation on acquisition represent those of PrettyLittleThing
12 Investments
The subsidiaries held and consolidated in these financial statements are set out below:
Name of company Principal activity Country of Address Percentage ownership
incorporation
---------------------- ----------------------- ---------------------- ---------------------- ---------------------
12 Castle St, St
ABK Limited Holding company Jersey Helier, Jersey 100%
49-51 Dale St,
boohoo.com UK Limited Trading company UK Manchester 100%
49-51 Dale St,
Boo Who Limited Dormant company UK Manchester 100%
boohoo.com USA 49-51 Dale St,
Limited Dormant company UK Manchester 100%
3 West 13th Street,
boohoo.com USA Inc Marketing office USA New York 100%
boohoo.com Australia 468 St Kilda Road,
Pty Ltd Marketing office Australia Melbourne 100%
Wellington Mill,
PrettyLittleThing.com Internet fashion Pollard Street East,
Limited retail UK Manchester 66%
Wellington Mill,
21Three Clothing Pollard Street East,
Company Limited Dormant company UK Manchester 66%
PrettyLittleThing.com 1209 Orange Street,
USA Inc Marketing office USA Delaware 66%
49-51 Dale St,
Nasty Gal.com Limited Trading company UK Manchester 100%
6600 W Sunset
Boulevard, Los
Nasty Gal.com USA Inc Marketing office USA Angeles 100%
Shanghai Wasabi Frog 49-51 Dale St,
Boohoo Ltd Dormant company China Manchester 100%
---------------------- ----------------------- ---------------------- ---------------------- ---------------------
13 Deferred tax
Assets
Depreciation in excess of capital Share-based payments Total
allowances
GBP000 GBP000 GBP000
------------------------------------------ ------------------------------------------ --------------------- -------
Asset at 1 March 2016 62 169 231
Recognised in statement of comprehensive
income 170 666 836
Credit in equity - 3,427 3,427
------------------------------------------ ------------------------------------------ --------------------- -------
Asset at 28 February 2017 232 4,262 4,494
Recognised in statement of comprehensive
income (72) 234 162
Credit in equity - 1,823 1,823
------------------------------------------ ------------------------------------------ --------------------- -------
Asset at 28 February 2018 160 6,319 6,479
========================================== ========================================== ===================== =======
Liabilities
Business combinations Total
GBP000 GBP000
------------------------------------------------- ---------------------- --------
Recognised in statement of comprehensive income (2,597) (2,597)
-------------------------------------------------- ---------------------- --------
Liability at 28 February 2017 (2,597) (2,597)
Recognised in statement of comprehensive income 496 496
Liability at 28 February 2018 (2,101) (2,101)
================================================== ====================== ========
Recognition of the deferred tax assets is based upon the expected generation of future taxable profits. The deferred tax asset is expected to be recovered in more than one year's time and the deferred tax liability will reverse in more than one year's time as the intangible assets are amortised.
14 Inventories
2018 2017
GBP000 GBP000
--------------- ------ ------
Finished goods 48,248 34,170
The value of inventories included within cost of sales for the year was GBP270,323,000 (2017: GBP133,515,000). An impairment provision of GBP3,413,000 (2017: GBP291,000) was charged to the statement of comprehensive income. There were no write-backs of prior period provisions during the year.
15 Trade and other receivables
2018 2017
GBP000 GBP000
------------------ ------ ------
Trade receivables 13,381 9,446
Prepayments 3,658 2,489
Accrued income 460 9
------------------ ------ ------
17,499 11,944
================== ====== ======
Trade receivables represent amounts due from wholesale customers and advance payments to suppliers. Receivables past due are GBP339,000 (2017: GBP698,000). The provision for impairment of trade receivables is GBP674,000 (2017: GBP573,000).
The fair value of trade and other receivables is not materially different from the carrying value.
16 Trade and other payables
2018 2017
GBP000 GBP000
------------------------------------------- ------ ------
Trade payables 34,203 23,124
Amounts owed to related party undertakings 31 2
Other creditors 1,084 3,090
Accruals 50,399 24,098
Deferred income 5,556 3,367
Taxes and social security payable 5,397 4,372
------------------------------------------- ------ ------
96,670 58,053
=========================================== ====== ======
The fair value of trade payables is not materially different from the carrying value.
17 Interest-bearing loans and borrowings
This note provides information about the contractual terms of the group's interest-bearing loans and borrowings, which are measured at amortised cost.
2018 2017
GBP000 GBP000
-------------------------------------- ------ ------
Non-current liabilities
Secured bank loans 7,146 9,528
====================================== ====== ======
Current liabilities
-------------------------------------- ------ ------
Current portion of secured bank loans 2,382 2,382
====================================== ====== ======
Terms and debt repayment schedule
Nominal
interest Year of 2018 2017
Currency rate maturity GBP000 GBP000
------------------ --------- -------------- --------- ------ ------
Secured bank loan GBGBP LIBOR + 0.95% 2022 9,528 11,910
The loan is repayable in instalments over the five years to 2022. The loan is secured by a debenture comprising fixed and floating charges over all the assets and undertakings of boohoo.com UK Limited of GBP99.4 million (2017: GBP48.4 million), including all present and future freehold property, book and other debts, chattels and goodwill, both present and future.
18 Share capital and reserves
2018 2017
GBP000 GBP000
------------------------------------------------------------------- ------ ------
1,149,574,495 authorised and fully paid ordinary shares of 1p each
(2017: 1,123,304,869) 11,496 11,233
------------------------------------------------------------------- ------ ------
During the year, a total of 3,504,814 shares were issued under the share incentive plans (2017: nil). On 7 June 2017, 22,727,273 shares were issued in a private placing of shares, raising GBP50 million. On 23 February 2018, 35,224 new ordinary shares were issued to non-executive directors as part of their annual remuneration (2017: 37,539).
The directors do not recommend the payment of a dividend so that cash is retained in the group for capital expenditure projects that are required for the rapid growth and efficiency improvements of the business and for suitable business acquisitions (2017: GBPnil).
19 Financial instruments
Fair values
2018 2017
GBP000 GBP000
---------------------------- ------- ------
Financial assets
Cash and cash equivalents 142,575 70,330
Cash flow hedges 9,215 720
Trade and other receivables 13,841 9,455
---------------------------- ------- ------
165,631 80,505
============================ ======= ======
2018 2017
GBP000 GBP000
-------------------------------------- ------- ------
Financial liabilities
Cash flow hedges 1,304 12,306
Trade and other payables 91,114 54,686
Interest bearing loans and borrowings 9,528 11,910
-------------------------------------- ------- ------
101,946 78,902
====================================== ======= ======
20 Capital commitments
Capital expenditure contracted for at the end of the reporting year but not yet incurred is as follows:
2018 2017
GBP000 GBP000
------------------------------ ------ ------
Property, plant and equipment 27,999 2,100
21 Operating Leases
The group has lease agreements in respect of property, plant and equipment, for which the payments extend over a number of years. The totals of future minimum lease payments under non-cancellable operating leases due in each period are:
2018 2017
GBP000 GBP000
------------------------- ------ ------
Within one year 1,028 1,229
Within two to five years 3,066 2,785
In more than five years 792 916
------------------------- ------ ------
4,886 4,930
========================= ====== ======
22 Contingent liabilities
From time to time, the group can be subject to various legal proceedings and claims that arise in the ordinary course of business which may include cases relating to the group's brand and trading name. All such cases brought against the group are robustly defended and a liability is recorded only when it is probable that the case will result in a future economic outflow and that the outflow can be reliably measured.
As at 28 February 2018, there are no pending claims or proceedings against the group which are expected to have a material adverse effect on its liquidity or operations.
Appendix - prior period revenues by region
Revenue by period for the year to 28 February 2018 (FY18)
GBP'000 4m to 31 December 2m to 28 February 12m to 28 February
---------------------------------- ------------------------------
FY18 FY17 yoy yoy FY18 FY17 yoy yoy FY18 FY17 yoy yoy
% % CER % % % %
CER CER
-------- -------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
Total 228,215 114,294 100% 93% 88,710 53,025 67% 65% 579,800 294,635 97% 92%
-------- -------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
Revenue by region
--------------------------------------------- ------- ------- ----- ----- -------- -----
UK 135,642 65,465 107% 107% 56,592 34,820 63% 63% 355,614 181,981 95% 95%
-------- -------- ----- ------- ------- ------- ----- ----- -------- -----
ROE 28,232 13,963 102% 76% 10,258 6,059 69% 54% 66,281 34,735 91% 73%
-------- -------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
USA 39,618 19,299 105% 102% 13,475 5,910 128% 133% 92,690 40,435 129% 122%
-------- -------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
ROW 24,723 15,567 59% 46% 8,385 6,236 34% 29% 65,215 37,484 74% 64%
-------- -------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August
--------------------------------- -------------------------------
FY18 FY17 yoy yoy FY18 FY17 yoy yoy FY18 FY17 yoy yoy
% % CER % % % %
CER CER
-------- ------- ----- ------- -------- ------- ----- ----- -------- -------- ----- -----
Total 120,077 58,222 106% 98% 142,798 69,094 107% 104% 262,875 127,316 106% 101%
-------- ------- ----- ------- -------- ------- ----- ----- -------- -------- ----- -----
Revenue by region
-------------------------------------------- -------- ------- ----- ----- -------- -----
UK 74,532 37,396 99% 99% 88,849 44,300 101% 101% 163,381 81,696 100% 100%
-------- ------- ----- ------- -------- ------- ----- ----- -------- -----
ROE 12,220 6,938 76% 61% 15,571 7,775 100% 92% 27,791 14,713 89% 77%
-------- ------- ----- ------- -------- ------- ----- ----- -------- -------- ----- -----
USA 17,906 6,385 180% 155% 21,690 8,841 145% 136% 39,596 15,226 160% 145%
-------- ------- ----- ------- -------- ------- ----- ----- -------- -------- ----- -----
ROW 15,419 7,503 105% 80% 16,688 8,178 104% 98% 32,107 15,681 105% 89%
-------- ------- ----- ------- -------- ------- ----- ----- -------- -------- ----- -----
Revenue by period for the year to 28 February 2017 (FY17)
GBP'000 4m to 31 December 2m to 28 February 12m to 28 February
--------------------------------- ------------------------------
FY17 FY16 yoy yoy FY17 FY16 yoy yoy FY17 FY16 yoy yoy
% % CER % % % %
CER CER
-------- ------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
Total 114,294 73,692 55% 52% 53,025 30,918 72% 67% 294,635 195,394 51% 49%
-------- ------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
Revenue by region
-------------------------------------------- ------- ------- ----- ----- -------- -----
UK 65,465 49,701 32% 32% 34,820 21,267 64% 64% 181,981 130,096 40% 40%
-------- ------- ----- ------- ------- ------- ----- ----- -------- -----
ROE 13,963 8,588 63% 54% 6,059 3,639 67% 47% 34,735 22,630 53% 47%
-------- ------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
USA 19,299 5,962 224% 183% 5,910 2,660 122% 105% 40,435 16,523 145% 124%
-------- ------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
ROW 15,567 9,441 65% 56% 6,236 3,352 86% 74% 37,484 26,145 43% 45%
-------- ------- ----- ------- ------- ------- ----- ----- -------- -------- ----- -----
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August
------------------------------- ------------------------------
FY17 FY16 yoy yoy FY17 FY16 yoy yoy FY17 FY16 yoy yoy
% % CER % % % %
CER CER
------- ------- ---- ------- ------- ------- ----- ----- -------- ------- ---- -----
Total 58,222 41,322 41% 42% 69,094 49,462 40% 40% 127,316 90,784 40% 41%
------- ------- ---- ------- ------- ------- ----- ----- -------- ------- ---- -----
Revenue by region
------------------------------------------ ------- ------- ----- ----- -------- -----
UK 37,396 26,273 42% 42% 44,300 32,855 35% 35% 81,696 59,128 38% 38%
------- ------- ---- ------- ------- ------- ----- ----- -------- -----
ROE 6,938 4,943 40% 43% 7,775 5,460 42% 40% 14,713 10,403 41% 41%
------- ------- ---- ------- ------- ------- ----- ----- -------- ------- ---- -----
USA 6,385 3,815 67% 60% 8,841 4,086 116% 100% 15,226 7,901 93% 81%
------- ------- ---- ------- ------- ------- ----- ----- -------- ------- ---- -----
ROW 7,503 6,291 19% 27% 8,178 7,061 16% 27% 15,681 13,352 17% 27%
------- ------- ---- ------- ------- ------- ----- ----- -------- ------- ---- -----
CER in this appendix for the year ended 28 February 2017 is calculated using exchange rates prevailing during the year ending 28 February 2017. Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DMGZDNDGGRZM
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April 25, 2018 02:00 ET (06:00 GMT)
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