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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.18 | 0.53% | 34.20 | 34.16 | 34.28 | 34.82 | 33.56 | 34.08 | 5,680,600 | 16:35:15 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Womens Hosiery, Except Socks | 1.77B | -75.6M | -0.0596 | -5.73 | 433.3M |
TIDMBOO
RNS Number : 5346N
boohoo group plc
25 September 2019
For immediate release 25 September 2019
The information contained within this announcement is deemed by the company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
boohoo group plc - interim results for the six months ended 31 August 2019
"Leading the fashion eCommerce market"
6 months 6 months Change to 31 August to 31 August 2019 2018 GBP million GBP million ---------------------------------------- -------------- -------------- -------- Revenue 564.9 395.3 +43% Gross profit 306.5 218.6 +40% Gross margin 54.3% 55.3% -100bps Adjusted EBITDA(1) 60.7 39.6 +53% % of revenue 10.8% 10.0% +80bps Adjusted EBIT(2) 51.2 35.3 +45% % of revenue 9.1% 8.9% +20bps Adjusted profit before tax(3) 51.8 35.8 +45% Profit before tax 45.2 24.7 +83% Adjusted diluted earnings per share(4) 2.91p 1.99p +46% Diluted earnings per share 2.48p 1.39p +78% Net cash(5) at period end 207.4 155.6 +51.8 m ---------------------------------------- -------------- -------------- --------
Highlights
Group
-- Revenue GBP564.9 million, up 43% (43% CER(6) )
-- Strong revenue growth across all brands and geographies (UK: +35%; international: +55%). International now 44% of group revenue (2019: 41%)
-- Robust balance sheet with net cash of GBP207.4 million (2019: GBP155.6 million) with healthy operating cash flow of GBP55.9 million (2019: GBP55.7 million) and free cash flow of GBP30.1 million (+22%)
-- Acquisition of the MissPap, Karen Millen and Coast brands, complementary additions to the group's scalable multi-brand platform
boohoo
-- Revenue GBP281.0 million, up 34% with market share gains in all focus markets -- Gross margin 53.6%, up 20bps -- 8.4 million active customers(7) , up 20% on prior year
PrettyLittleThing
-- Revenue GBP237.6 million, up 41% -- Gross margin 55.3%, down 200 bps -- 5.7 million active customers, up 43% -- Outstanding market share and revenue growth in all markets
Nasty Gal
-- Revenue GBP43.9 million, up 148% -- Gross margin 54.2%, down 480bps driven by refinements to the customer proposition -- 1.5 million active customers, up 112% -- Strong revenue growth across all markets, gathering momentum
Guidance
As announced on 5 September 2019, group revenue growth for the year to 29 February 2020 is expected to be 33% to 38%, with adjusted EBITDA margin for the financial year to remain at around 10%, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half year. We reiterate our medium term guidance to deliver revenue growth of at least 25% per annum and adjusted EBITDA margin of around 10%.
John Lyttle CEO, commented:
"It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded GBP1 billion in the last 12 months. We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands. We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains."
Investor and Analyst Meeting
A meeting for analysts will be held at 9.30am today at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. boohoo group plc's interim results 2020 are available at www.boohooplc.com.
A live audio webcast will be available at 9.30am via the following link:
https://webcasting.buchanan.uk.com/broadcast/5d541fada98d141c9d04c8ed
A replay will subsequently be available from 12 noon via the same link.
Enquiries boohoo group 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 Finance) Tel: +44 (0)161 831 1512 John Goold/Benjamin Robertson (Corporate Broking) Tel: +44 (0)20 3829 5000 Jefferies - Joint broker Philip Noblet/Max Jones Tel: +44 (0)20 7029 8000 Buchanan - Financial PR adviser boohoo@buchanan.uk.com Richard Oldworth/Sophie Wills/Kim Looringh-van Tel: +44 (0)20 7466 Beeck/Toto Berger 5000
Notes:
(1) Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items.
(2) Adjusted EBIT is calculated as profit before tax, interest, share-based payment charges, amortisation of acquired intangible assets and exceptional items.
(3) Adjusted profit before tax is calculated as profit before tax, excluding share-based payment charges, amortisation of acquired intangible assets and exceptional items.
(4) Adjusted diluted earnings per share is calculated as diluted earnings per share, adding back amortisation of acquired intangible assets, share-based payment charges and exceptional items.
(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 group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and innovative brand targeting young, value-orientated customers. For 13 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. In March 2019 the group acquired the MissPap brand and in August 2019, the Karen Millen and Coast brands, all complementary to the group's scalable multi-brand platform. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. These investment propositions have helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 40-year-olds around the world. As at 31 August 2019, the boohoo group had around 13 million active customers across all its brands around the world.
Cautionary Statement
Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past
performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.
Review of the business
Group overview
Group revenue for the half year increased by 43% (43% CER) on the first half of the previous year to GBP564.9 million (2019: GBP395.3 million). Revenue growth across all focus territories and brands was strong.
Adjusted EBITDA was GBP60.7 million (2019: GBP39.6 million), an increase of 53% on the first half of the previous year, with efficiency improvements, increased leverage of fixed overheads and effective marketing across the group leading to an adjusted EBITDA margin of 10.8% (2019: 10.0%). Profit before tax was GBP45.2 million (2019: GBP24.7 million), an increase of 83%. Adjusted diluted earnings per share was 2.91p, up 46% on the prior half year. Basic earnings per share rose to 2.55p, an increase of 80% (2019: 1.42p).
The group's performance over the half year has been outstanding, with strong momentum across the business driving impressive revenue growth in all our brands and in all key focus territories. The group is increasing market share through highly effective marketing strategies, employing a mix of high profile celebrity campaigns, influencer associations, and digital and traditional marketing initiatives. Our scalable, multi-brand platform has enabled us to take on three additional women's brands - MissPap, Karen Millen and Coast. Revenue from MissPap is starting to grow rapidly since go-live in April, whilst Karen Millen and Coast will commence trading online in October. Continuous improvement in the customer proposition is a top priority, with new apps, additional payment methods and improved delivery being deployed to ensure we keep pace with technological developments and remain best-in-class.
Cash generation was strong, with operating cash flow of GBP55.9 million (2019: GBP55.7 million) and free cash flow up 22% to GBP30.1 million. Capital expenditure was GBP6.4 million and GBP19.4 million was spent on the acquisition of the three new brands. Our net cash balance at the period end increased to GBP207.4 million (2019: GBP155.6 million).
Distribution centres
The group operates through two distribution centres: the Burnley facility services boohoo, boohooMAN, Nasty Gal and, in the second half year, will additionally serve MissPap, Karen Millen and Coast; and the Sheffield facility, which is managed by a third-party, services PrettyLittleThing. Automation at the Burnley warehouse went live in April 2019 and has been instrumental in improving efficiency and increasing throughput, enabling the facility to handle the rapid growth of the group and maintain high customer service levels. Both facilities give us the scale and capacity required as the group develops.
Technology
New apps in key markets for boohoo, boohooMAN and Nasty Gal were developed in-house and released in the first half year. These have been highly successful, with a high rate of adoption by users. Bringing the apps in-house has resulted in a far better user experience, with the added advantage of greater flexibility for further development and faster introductions of new features.
New payment methods have been introduced in several markets, giving customers more choice and flexibility, which has contributed to improvements in order size and frequency.
boohoo (including boohooMAN)
Performance
Revenue for the half year increased to GBP281.0 million, up 34% on the first half of the previous year, with growth in all our key focus markets.
Growth in the UK has continued in the first half year, whilst international growth has remained exceptionally strong, especially so in the USA and northern Europe. Gross margin increased by 20bps to 53.6%, driven by an improved product offering and refinement of the customer proposition.
Product
Core product lines are showing further improvement on the previous year, which together with the comprehensive size range offerings and new product introductions, are delivering growth and meeting consumer trends. In June we introduced our first dedicated recycled women's clothing range, "for the future", which is the start of our drive for a more sustainable future in fashion options. We have also extended our beauty range, offering a great collection of well-known brands alongside a boohoo branded range. boohooMAN is continuing to grow strongly as its product range widens and new collections and size ranges are added. With our constantly refreshed product offering, ensuring the very latest fashion trends are on our website within days, boohoo remains the most relevant brand for young consumers who want great fashion at unbeatable prices.
Marketing
Marketing efforts continued to focus on a successful mix of social media influencers, student activation, digital acquisition and retention, PR and above-the-line advertising in the form of TV and out-of-home advertising. Our investment in producing locally relevant content is also proving highly successful as we expand internationally.
Our global social media audience now includes over 6 million followers on Instagram and 3 million Facebook likes. This summer saw us working with a host of local brand ambassadors and the return of global ambassador, Jordyn Woods. All collections have featured an inspiring range of day-to-evening looks with that synonymous boohoo glamour.
boohooMAN collaborated with American rap artist Quavo, launching an inspirational collection for the spring/summer.
Customer interaction
Active customer numbers over the last 12 months increased by 20% to 8.4 million. Conversion rate to sale increased from 3.1% to 3.3% of sessions, when measured on website statistics alone. Order frequency increased 2%, with customers placing an order with us, on average, 2.11 times in 12 months, whilst the number of items per basket increased 9% to 3.30.
Of our seventeen country-specific websites, six are translated into local languages, with Swedish being added during the period and improving the customer experience and conversion, and we have plans for further translated sites. Our Instashop is a great way to shop for the latest celebrity and influencer looks, whilst the visual search facility on the app enables customers to locate matching products from a photograph. The addition of new payment methods in different countries ensures we keep abreast of customer preferences and optimise conversion. A virtual assistant helps answer customer queries and speeds up our response time to offer a more satisfying customer relationship experience.
PrettyLittleThing
Performance
PrettyLittleThing ("PLT") achieved strong revenue growth of 41% over the first half of the previous year, reaching GBP237.6 million. Growth across all territories was strong, with the US and French markets performing exceptionally well. Gross margin has decreased to 55.3% (2019: 57.3%), as we optimise growth and refine the customer proposition.
Product
PLT brings the latest and most relevant celebrity looks at affordable prices to our customers, with a choice of over 23,500 styles and new items available daily. Our product range continued to expand during the first half year with further strong growth in the "shape" ranges including Petite, Curve and Plus. We have also continued to expand our accessories and beauty offering, partnering with major beauty brands to offer a one-stop shop for our customers. During the first half year we continued to bring the latest celebrity looks to customers, with a second collaboration with Ashley Graham and a swimwear collaboration with R&B artist Ashanti.
Marketing
We have continued to extend our social media reach by increasing the number of social media influencers, combined with celebrity campaigns and collaborations. These include Ashley Graham, Ashanti and the recently-announced collaboration with USA rapper Saweetie, all of which help the brand reach its target audience. We have 11 million Instagram followers, 2 million likes on Facebook and 0.3 million followers on Twitter. We grew our Tik Tok following from 20,000 to 310,000 and are the fastest growing fashion brand on the channel. We have presence on other social media channels and continue to develop our exposure to new and emerging platforms.
Customer interaction
We support eight country-specific websites and have plans for further foreign language sites, following the success of the French language site introduced in the previous financial year. For the UK market, we offer a wide range of free return options. We have expanded our customer payment options through the first half of the year as we seek to introduce the latest technologies and payment options to give our customers greater flexibility in their shopping experience.
Active customer numbers over the last 12 months increased by 43% to 5.7 million. Conversion rate to sale increased from 3.3% to 3.6% of sessions, when measured on website statistics alone. Order frequency increased 5% to 2.97 times in 12 months, whilst the number of items per basket increased 5% to 2.96.
Nasty Gal
Performance
Revenue growth across all territories has been exceptionally strong, giving an overall 148% increase to GBP43.9 million. Revenue growth in the USA, the largest single market for the brand, has continued at a significant pace. UK and International growth has been exceptional, with the brand gaining momentum through growing consumer awareness. Gross margin at 54.2% (2019: 59.0%) is in line with the re-alignment of the customer proposition.
Product
We have continued to build the product base in line with the expansion of the business, with the number of styles doubling to over 13,000. Product pricing remains higher than that of boohoo and PrettyLittleThing, whilst the product is differentiated in line with the brand's heritage, including the Nasty Gal Vintage collection, which is part of the ongoing product strategy and representative of the brand's DNA.
Marketing
The marketing strategy has focussed on building and extending the number of bloggers and influencers and staging key media events to engage customer interest and promote brand loyalty. This summer we launched an iconic collection edited by Emily Ratajkowski (EmRata) and teamed up with Claire Rose Cliteur with a beautiful collection of transitional season pieces.
On social media Nasty Gal has 3.8 million followers on Instagram, 1.3 million Facebook likes and 0.2 million followers on Twitter.
Customer interaction
Nasty Gal has seven country and regional websites and apps for the UK, US and the Australian markets. The new apps were brought in-house during the period, bringing a significant improvement in the customer experience and greater flexibility for us to enhance the app in short timescales.
Active customer numbers over the last 12 months increased by 112% to 1.5 million. Conversion rate to sale increased from 1.9% to 2.2% of sessions, when measured on website statistics alone. Order frequency increased 13% to 1.55 times in 12 months, whilst the number of items per basket increased 18% to 3.44.
Financial review
Group revenue by brand
6 months to 6 months to Change Change 31 August 2019 31 August 2018 GBP000 GBP000 CER ------------------- ---------------- ---------------- ------- ------- boohoo 281,033 209,006 +34% +35% PrettyLittleThing 237,609 168,612 +41% +41% Nasty Gal 43,850 17,691 +148% +153% Other 2,374 - - - 564,866 395,309 +43% +43% =================== ================ ================ ======= =======
Group revenue by geographical market
6 months to 6 months to Change Change 31 August 2019 31 August 2018 GBP000 GBP000 CER ---------------- ---------------- ---------------- ------- ------- UK 314,954 234,057 +35% +35% Rest of Europe 87,486 51,250 +71% +69% USA 110,729 68,171 +62% +65% Rest of world 51,697 41,831 +24% +25% ---------------- ---------------- ---------------- ------- ------- 564,866 395,309 +43% +43% ================ ================ ================ ======= =======
KPIs
Group
6 months 6 months to Change to 31 August 31 August 2018(5) 2019 Active customers(1) 13.0 million 10.0 million +30% Number of orders 20.3 million 14.7 million +38% Order frequency(2) 2.87 2.68 +7% Conversion rate to sale (3) 3.26% 3.09% +17bps Average order value(4) GBP43.26 GBP40.57 +7% Number of items per basket 3.15 2.93 +7% ----------------------------- ------------- ------------- ------- 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 website orders taken to internet sessions 4. Calculated as gross sales including sales tax divided by the number of orders 5. Prior period numbers restated to include marketplace data
Consolidated summary income statement
6 months to 6 months to Change 31 August 2019 31 August 2018 GBP000 GBP000 ----------------------------------------------------------------------- ---------------- ---------------- --------- Revenue 564,866 395,309 +43% Cost of sales (258,335) (176,732) ----------------------------------------------------------------------- ---------------- ---------------- --------- Gross profit 306,531 218,577 +40% Gross margin % 54.3% 55.3% -100 bps Operating costs (245,904) (179,121) Other income 112 120 Adjusted EBITDA 60,739 39,576 +53% Adjusted EBITDA margin % 10.8% 10.0% +80 bps Depreciation (7,906) (3,090) Amortisation of other intangible assets (1,589) (1,163) Adjusted EBIT 51,244 35,323 +45% Adjusting items: Amortisation of acquired intangible assets (2,312) (2,224) Equity-settled share-based payment charges (4,355) (2,464) Exceptional costs - warehouse relocation - (6,436) Operating profit 44,577 24,199 +84% Finance income 770 577 Finance expense (196) (79) ----------------------------------------------------------------------- ---------------- ---------------- --------- Profit before tax 45,151 24,697 +83% Tax (9,076) (4,867) ----------------------------------------------------------------------- ---------------- ---------------- --------- Profit after tax for the period 36,075 19,830 +82% ======================================================================= ================ ================ ========= Basic earnings per share 2.55p 1.42p +80% Diluted earnings per share 2.48p 1.39p +78% Adjusted profit after tax for the period 41,515 28,872 +44% Amortisation of acquired intangible assets (2,312) (2,224) Share-based payment charges (4,355) (2,464) Exceptional costs - warehouse relocation - (6,436) Adjustment for tax 1,227 2,082 ----------------------------------------------------------------------- ---------------- ---------------- --------- Profit after tax for the period 36,075 19,830 ----------------------------------------------------------------------- ---------------- ---------------- --------- Adjusted profit for the period attributable to shareholders of the company 34,695 23,361 +49% Adjusted diluted earnings per share 2.91p 1.99p +46% ----------------------------------------------------------------------- ---------------- ---------------- ---------
Taxation
The effective rate of tax for the half-year was 20.1% (2019: 19.7%), which is more than the blended UK statutory rate of tax for the year of 19%, principally due to depreciation of buildings in excess of capital allowances.
Earnings per share
Basic earnings per share increased by 80% from 1.42p to 2.55p. Adjusted diluted earnings per share was 2.91p, up 46% on the first half of the prior year.
Consolidated statement of financial position
6 months 6 months to to 31 August 31 August 2019 2018 GBP000 GBP000 --------------------------------------- ----------- ----------- Intangible assets 43,842 29,074 Property, plant and equipment 108,460 98,505 Right-of-use assets 15,691 - Financial assets 298 585 Deferred tax asset 4,080 4,153 ---------------------------------------- ----------- ----------- Non-current assets 172,371 132,317 Working capital (58,746) (53,597) Lease liabilities (17,709) - Net financial liabilities (27,166) (1,895) Cash and cash equivalents 213,392 163,889 Interest bearing loans and borrowings (5,955) (8,337) Deferred tax liability (2,047) (2,001) Current tax liability (6,844) (4,707) Net assets 267,296 225,669 ======================================== =========== ===========
Liquidity and financial resources
Free cash flow was GBP30.1 million compared to GBP24.5 million in the previous financial half-year, up 22% after inventory build ahead of our rapid growth and the acquisition of the new brands. Capital expenditure was GBP6.4 million and GBP19.4 million was spent on the acquisition of the three new brands. The closing cash balance for the group was GBP213.4 million and the net cash balance, after deducting bank loans, was GBP207.4 million.
Consolidated cash flow statement 6 months 6 months to to 31 August 31 August 2019 2018 GBP000 GBP000 -------------------------------------------- ------ ------------------- ----------- Profit for the period 36,075 19,830 Depreciation charges and amortisation 11,807 6,477 Share-based payments charge 4,355 2,464 Tax expense 9,076 4,867 Finance income (770) (577) Finance expense 196 79 Increase in inventories (27,084) (5,054) Increase in trade and other receivables (16,397) (17,569) Increase in trade and other payables 38,630 45,216 ---------------------------------------------------- ------------------- ----------- Operating cash flow 55,888 55,733 Capital expenditure and intangible asset purchases (6,449) (31,185) Acquisition of new brands (intangible (19,370) - assets) Free cash flow 30,069 24,548 Proceeds from the issue of ordinary shares 771 2,087 Purchase of own shares by EBT (4,809) - Finance income received 740 495 Finance expense paid (70) (79) Dividend paid to non-controlling interests (3,400) - Lease payments (2,798) - Tax paid (3,792) (4,546) Repayment of borrowings (1,191) (1,191) ---------------------------------------------------- ------------------- ----------- Net cash flow 15,520 21,314 Cash and cash equivalents at beginning of period 197,872 142,575 ---------------------------------------------------- ------------------- ----------- Cash and cash equivalents at end of period 213,392 163,889 ==================================================== =================== ===========
Outlook
We continue to maintain a highly positive outlook for online fashion globally. The group's multi-brand approach appeals to a widening consumer audience. The demand for affordable online fashion continues unabated and provides the opportunity for continued growth globally. Growth in the UK, our largest market, remains strong, whilst international growth continues at a higher rate.
Our focus is to maintain an outstanding customer proposition, with the latest fashion at great prices, combined with excellent customer service. To this end, we have a plan of continuous investment in systems, infrastructure 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 scalable, multi-brand platform provides the basis for expansion of the group through strategic acquisitions. We are also committed to continuing to drive improvements across our environmental responsibilities and are constantly exploring ways to accelerate our sustainability journey.
Group revenue growth for the year to 29 February 2020 is expected to be 33% to 38%, with adjusted EBITDA margin for the year to remain at around 10%, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half year. We reiterate our medium term guidance to deliver revenue growth of at least 25% per annum and adjusted EBITDA margin of around 10%.
John Lyttle Neil Catto Chief Executive Chief Financial Officer
24 September 2019
Unaudited consolidated statement of comprehensive income
for the period ended 31 August 2019
Note 6 months to 6 months Year to 28 31 August to February 2019 31 August 2019 2018 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 --------------------------------------------- ---- ----------- ----------- ---------- Revenue 3 564,866 395,309 856,920 Cost of sales (258,335) (176,732) (387,926) --------------------------------------------- ---- ----------- ----------- ---------- Gross profit 306,531 218,577 468,994 Distribution costs (129,979) (97,772) (207,083) --------------------------------------------- ---- ----------- ----------- ---------- Exceptional distribution costs - (5,932) (6,162) Other distribution costs (129,979) (91,840) (200,921) --------------------------------------------- ---- ----------- ----------- ---------- Administrative expenses (132,087) (96,726) (203,470) --------------------------------------------- ---- ----------- ----------- ---------- Exceptional administrative expenses - (504) (505) Amortisation of acquired intangibles (2,312) (2,224) (4,449) Other administrative expenses (129,775) (93,998) (198,516) --------------------------------------------- ---- ----------- ----------- ---------- Other income 4 112 120 239 --------------------------------------------- ---- ----------- ----------- ---------- Operating profit 44,577 24,199 58,680 Finance income 770 577 1,320 Finance expense (196) (79) (144) --------------------------------------------- ---- ----------- ----------- ---------- Profit before tax 5 45,151 24,697 59,856 Taxation (9,076) (4,867) (12,397) Profit for the period 36,075 19,830 47,459 ============================================= ==== =========== =========== ========== Profit for the period attributable to: Owners of the parent company 29,551 16,309 37,772 Non-controlling interests 6,524 3,521 9,687
--------------------------------------------- ---- ----------- ----------- ---------- 36,075 19,830 47,459 ============================================= ==== =========== =========== ========== Total other comprehensive income/(expense) for the year, net of income tax Loss/(gain) reclassified to profit and loss during the year 1,311 (1,518) (2,337) Fair value (loss)/gain on cash flow hedges during the year (1) (35,982) (7,703) 2,229 Total comprehensive income for the period 1,404 10,609 47,351 ============================================= ==== =========== =========== ========== Total comprehensive income attributable to: Equity attributable to owners of the parent company (5,120) 7,088 37,664 Non-controlling interests 6,524 3,521 9,687 --------------------------------------------- ---- ----------- ----------- ---------- 1,404 10,609 47,351 ============================================= ==== =========== =========== ========== Earnings per share 6 Basic 2.55p 1.42p 3.27p Diluted 2.48p 1.39p 3.22p --------------------------------------------- ---- ----------- ----------- ----------
1. Net fair value gains/losses on cash flow hedges will be reclassified to profit or loss during the two years to 31 August 2021.
Unaudited consolidated statement of financial position
at 31 August 2019
Note 6 months 6 months Year to to 31 August to 31 August 28 February 2019 2018 2019 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 -------------------------------------- ---- ------------- ------------- ------------ Assets Non-current assets Intangible assets 43,842 29,074 27,165 Property, plant and equipment 108,460 98,505 108,498 Right-of-use assets 15,691 - - Financial assets 298 585 3,756 Deferred tax 7 4,080 4,153 4,034 -------------------------------------- ---- ------------- ------------- ------------ Total non-current assets 172,371 132,317 143,453 Current assets Inventories 93,890 53,302 66,806 Trade and other receivables 8 38,767 35,149 22,576 Financial assets 838 1,871 5,883 Current tax receivable - - 3,186 Cash and cash equivalents 213,392 163,889 197,872 Total current assets 346,887 254,211 296,323 Total assets 519,258 386,528 439,776 Liabilities Current liabilities Trade and other payables 9 (191,403) (142,048) (154,351) Interest bearing loans and borrowings (2,382) (2,382) (2,382) Lease liabilities (5,225) - - Financial liabilities (16,023) (1,605) (1,421) Current tax liability (6,844) (4,707) (3,939) Total current liabilities (221,877) (150,742) (162,093) Non-current liabilities Interest bearing loans and borrowings (3,573) (5,955) (4,764) Lease liabilities (12,484) - - Financial liabilities (11,981) (2,161) (415) Deferred tax 7 (2,047) (2,001) (2,102) Total liabilities (251,962) (160,859) (169,374) Net assets 267,296 225,669 270,402 ====================================== ==== ============= ============= ============ Equity Share capital 10 11,656 11,602 11,631 Share premium 606,579 604,555 606,086 Capital redemption reserve 100 100 100 Hedging reserve (26,868) (1,310) 7,803 EBT reserve (6,980) (347) (2,174) Translation reserve (79) 6 - Reconstruction reserve (515,282) (515,282) (515,282) Non-controlling interests 22,772 12,551 19,064 Retained earnings 175,398 113,794 143,174 -------------------------------------- ---- ------------- ------------- ------------ Total equity 267,296 225,669 270,402 ====================================== ==== ============= ============= ============
Unaudited consolidated statement of changes in equity
Share Share Capital Hedging EBT Transla-tion Recon-struction 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 28 February 2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,064 143,174 270,402 Impact of adoption of IFRS 16 - - - - - - - (31) (501) (532) ------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- -------- Restated balance at 28 February 2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,033 142,673 269,870 Profit for the period - - - - - - - 6,524 29,551 36,075 Other comprehensive income/(expense): Loss reclassified to profit and loss in revenue - - - 1,311 - - - - - 1,311 Fair value loss on cash flow hedges during the year - - - (35,982) - - - - - (35,982) ------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- -------- Total comprehensive income for the period - - - (26,868) - - - 25,557 172,224 271,274 Issue of shares 25 493 - - (4,806) - - 250 - (4,038) Share-based payments credit - - - - - - - 365 3,990 4,355 Excess deferred tax on share-based payments - - - - - - - - (816) (816) Translation of foreign operations - - - - - (79) - - - (79) Dividend paid to non-controlling interests - - - - - - - (3,400) - (3,400) Balance at 31 August 2019 11,656 606,579 100 (26,868) (6,980) (79) (515,282) 22,772 175,398 267,296 ================== ======= ======= ========== ======== ======= ============ =============== =============== ======== ======== Balance at 28 February 2018 11,496 602,578 100 7,911 (351) 168 (515,282) 8,761 97,398 212,779 Profit for the period - - - - - - - 3,521 16,309 19,830 Other comprehensive income/(expense): Gain reclassified to profit and loss - - - (1,518) - - - - - (1,518) Fair value loss on cash flow hedges during the period - - - (7,703) - - - - - (7,703) ------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- -------- Total comprehensive income for the
period - - - (9,221) - - - 3,521 16,309 10,609 Issue of shares 106 1,981 - - - - - - - 2,087 Issue of shares by EBT - (4) - - 4 - - - - - Share-based payments credit - - - - - - - 269 2,195 2,464 Excess deferred tax on share-based payments - - - - - - - - (2,108) (2,108) Translation of foreign operations - - - - - (162) - - - (162) Balance at 31 August 2018 11,602 604,555 100 (1,310) (347) 6 (515,282) 12,551 113,794 225,669 ------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- -------- Balance at 28 February 2018 11,496 602,578 100 7,911 (351) 168 (515,282) 8,761 97,398 212,779 Profit for the year - - - - - - - 9,687 37,772 47,459 Other comprehensive income/(expense): Gain reclassified to profit and loss in revenue - - - (2,337) - - - - - (2,337) Fair value gain on cash flow hedges during the year - - - 2,229 - - - - - 2,229 ------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- -------- Total comprehensive income for the year - - - (108) - - - 9,687 37,772 47,351 Issue of shares 135 3,508 - - (1,823) - - - - 1,820 Share-based payments credit - - - - - - - 616 4,662 5,278 Excess deferred tax on share-based payments - - - - - - - - 3,342 3,342 Translation of foreign operations - - - - - (168) - - - (168) Balance at 28 February 2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,064 143,174 270,402 ================== ======= ======= ========== ======== ======= ============ =============== =============== ======== ========
Unaudited consolidated cash flow statement
for the period ended 31 August 2019
Note 6 months 6 months Year to to 31 August to 31 August 28 February 2019 2018 2019 (unaudited) (unaudited) (audited) GBP000 GBP000 GBP000 Cash flows from operating activities Profit for the period 36,075 19,830 47,459 Adjustments for: Share-based payments charge 4,355 2,464 5,278 Depreciation charges and amortisation 11,807 6,477 13,921 Loss on sale of fixed assets - - 24 Finance income (770) (577) (1,320) Finance expense 196 79 144 Tax expense 9,076 4,867 12,397 --------------------------------------------- ---- ------------- ------------- ------------ 60,739 33,140 77,903 Increase in inventories (27,084) (5,054) (18,558) Increase in trade and other receivables 8 (16,397) (17,569) (4,935) Increase in trade and other payables 9 38,630 45,216 57,513 Cash generated from operations 55,888 55,733 111,923 Tax paid (3,792) (4,546) (10,361) Net cash generated from operating activities 52,096 51,187 101,562 Cash flows from investing activities Acquisition of intangible assets (20,579) (1,584) (3,237) Acquisition of property, plant and equipment (5,240) (29,601) (43,630) Proceeds from the sale of fixed assets - - 59 Finance income received 740 495 1,249 Net cash used in investing activities (25,079) (30,690) (45,559) Cash flows from financing activities Proceeds from the issue of ordinary shares 771 2,087 3,653 Share issue costs written off to share - - - premium Purchase of own shares by EBT (4,809) - (1,833) Finance expense paid (70) (79) (144) Dividend paid to non-controlling interests (3,400) - - Lease payments (2,798) - - Repayment of borrowings (1,191) (1,191) (2,382) Net cash generated from financing activities (11,497) 817 (706) Increase in cash and cash equivalents 15,520 21,314 55,297 ============================================= ==== ============= ============= ============ Cash and cash equivalents at beginning of period 197,872 142,575 142,575 --------------------------------------------- ---- ------------- ------------- ------------ Cash and cash equivalents at end of period 213,392 163,889 197,872 ============================================= ==== ============= ============= ============
Notes
(forming part of the interim report and accounts)
1 Accounting policies
General information
boohoo group 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
The interim condensed financial statements for the six months to 31 August 2019 have been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. The interim financial statements should be read in conjunction with the group's Annual Report and Accounts for the year ended 28 February 2019, prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"), IFRIC Interpretations and the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.
The interim condensed financial statements contained in this report are not audited and do not constitute statutory accounts within the meaning of Companies (Jersey) Law 1991. The Annual Report and Accounts for the year ended 28 February 2019 has been filed with the Jersey Companies Registry. The auditors' reports on those accounts were unqualified and did not include reference to any matters on which the auditors were required to report by exception under Companies (Jersey) Law 1991.
The group's business activities together with the factors that are likely to affect its future developments, performance and position are set out in the Business and Financial Reviews. The Financial Review describes the group's financial position, cash flows and bank facilities.
The interim financial statements are unaudited and were approved by the board of directors on 24 September 2019.
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 interim announcement, the directors have also made reasonable and prudent judgements and estimates and prepared the interim announcement on the going concern basis. The interim 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.
Accounting policies
The interim financial statements have been prepared in accordance with the accounting policies set out in the group's Annual Report and Accounts for the year ended 28 February 2019, except as noted below in the change of accounting policy.
Change of accounting policy
The group has adopted IFRS 16, "Leases", effective for accounting periods commencing 1 January 2019 and applied the modified retrospective approach and the exemption for low value or short leases. Comparatives have not been restated and the cumulative impact of adoption has been recognised as a decrease in net assets and a corresponding decrease in retained earnings as at 1 March 2019. The right-of-use asset has been measured at the carrying amount as if the standard had been applied since the commencement of the lease, discounted using the incremental borrowing rate of 1.8% at transition. The present value of the lease liabilities is discounted at the group's incremental borrowing cost.
The lease liability brought on to the balance sheet at transition is GBP18.5 million and the right of use asset GBP16.1 million. The overall decrease in retained earnings is GBP0.5 million. The impact on the income statement is not expected to affect profit before tax for the year to 29 February 2020, with adjusted EBITDA increasing by GBP4.9 million, depreciation increasing by GBP4.7 million and finance costs increasing by GBP0.2 million. The effect in the first half year will result in adjusted EBITDA increasing by GBP2.4 million, depreciation increasing by GBP2.4 million and finance costs increasing by GBP0.1 million. Within the cash flow statement, there are changes in the classification of cash flows, with GBP2.6 million of lease payments classified as financing cash flows and GBP0.1 million as interest payments.
The impact on the opening balance sheet is as follows: 1 March 2019 GBP000 ------------------------------------------------------- ------------ Non-current assets Right-of-use assets - property, plant & equipment 16,116 Deferred income tax asset 109 Current liabilities Financial liabilities - lease liabilities (4,933) Accruals 1,791 Non-current liabilities Financial liabilities - lease liabilities (13,615) Total decrease in retained earnings at 1 March 2019 (532) --------------------------------------------------------- ------------ Reconciliation of the lease liabilities at 1 March 2019 to the operating lease commitments 1 March 2019 at 28 February 2019: GBP000 -------------------------------------------------------------------------------------------- ------------ Operating lease commitments disclosed at 28 February 2019 6,259 Third-party warehouse services contract - revised treatment as operating lease 12,800 ---------------------------------------------------------------------------------------------- ------------ Restated operating lease commitments at 28 February 2019 19,059 Discounted using the lessee's incremental borrowing rate at the date of initial application (511) Additional lease liability recognised as at 1 March 2019 18,548 ---------------------------------------------------------------------------------------------- ------------ Analysed as: Current lease liabilities 4,933 Non-current lease liabilities 13,615 ---------------------------------------------------------------------------------------------- ------------
From 1 March 2019 the group's lease policy is summarised as follows:
A right-of-use asset and lease liability is recognised at the lease commencement date. The right-of-use asset is initially recognised at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The lease liability is initially measured as the present value of the lease payments at the commencement date, discounted using the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or a rate or a change in the group's assessment of whether it will exercise an extension or termination option. When the lease liability is re-measured, a corresponding adjustment is made to the right-of-use asset.
2 Principal risks and uncertainties
The board considers the principal risks and uncertainties which could impact the group over the remaining six months of the financial year to 29 February 2020 to be unchanged from those set out in the group's Annual Report and Accounts for the year ended 28 February 2019, which in summary are: competition risk; fashion and consumer demands risk; systems and technical risk; supply chain risk; loss of key facilities; people risk; customer dissatisfaction; and financial risk. These are set out in detail on pages 20 to 22 of the group's Annual Report and Accounts for the year ended 28 February 2019, a copy of which is available on the group's website, www.boohooplc.com. In addition, the group has identified, as far as possible, the potential impacts of the UK's leaving the EU without a deal.
3 Segmental analysis 6 months to 31 August 2019 boohoo PrettyLittleThing Nasty Gal Other Total GBP000 GBP000 GBP000 GBP000 GBP000 -------------------------------------- ----------------- --------- ------- --------- Revenue 281,033 237,609 43,850 2,374 564,866 Cost of sales (130,287) (106,228) (20,086) (1,734) (258,335) ---------------------------- --------- ----------------- --------- ------- --------- Gross profit 150,746 131,381 23,764 640 306,531 Distribution costs (60,741) (59,039) (9,731) (468) (129,979) ---------------------------- --------- ----------------- --------- ------- --------- Segment result 90,005 72,342 14,033 172 176,552 Administrative expenses - other - - - - (129,775) Amortisation of acquired intangibles - - - - (2,312) Other income - - - - 112 ---------------------------- --------- ----------------- --------- ------- --------- Operating profit - - - - 44,577 Finance income - - - - 770 Finance expense - - - - (196) Profit before tax - - - - 45,151 ============================ ========= ================= ========= ======= ========= 6 months to 31 August 2018 boohoo PrettyLittleThing Nasty Gal Other Total GBP000 GBP000 GBP000 GBP000 GBP000 -------------------------------------- ----------------- --------- ------- --------- Revenue 209,006 168,612 17,691 - 395,309 Cost of sales (97,468) (72,013) (7,251) - (176,732) ---------------------------- --------- ----------------- --------- ------- --------- Gross profit 111,538 96,599 10,440 - 218,577 Distribution costs (46,671) (40,602) (4,567) - (91,840) Exceptional distribution costs - (5,932) - (5,932) ---------------------------- --------- ----------------- --------- ------- --------- Segment result 64,867 50,065 5,873 - 120,805 Administrative expenses - other - - - - (93,998) Exceptional administrative expenses - - - - (504) Amortisation of acquired intangibles - - - - (2,224) Other income - - - - 120 ---------------------------- --------- ----------------- --------- ------- --------- Operating profit - - - - 24,199 Finance income - - - - 577 Finance expense - - - - (79) Profit before tax - - - - 24,697 ============================ ========= ================= ========= ======= ========= Year to 28 February 2019 boohoo PrettyLittleThing Nasty Gal Total
GBP000 GBP000 GBP000 GBP000 --------------------------- --------- ----------------- --------- --------- Revenue 434,565 374,445 47,910 856,920 Cost of sales (204,474) (162,687) (20,765) (387,926) ---------------------------- --------- ----------------- --------- --------- Gross profit 230,091 211,758 27,145 468,994 Distribution costs (98,901) (90,000) (12,020) (200,921) Exceptional distribution costs - (6,162) - (6,162) Segment result 131,190 115,596 15,125 261,911 Administrative expenses - other - - - (198,516) Exceptional administrative expenses - - - (505) Amortisation of acquired intangibles - - - (4,449) Other income - - - 239 ---------------------------- --------- ----------------- --------- --------- Operating profit - - - 58,680 Finance income - - - 1,320 Finance expense - - - (144) ---------------------------- --------- ----------------- --------- --------- Profit before tax - - - 59,856 ============================ ========= ================= ========= =========
Revenue by geographic region
6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 --------------- -------------------------- -------------------------- ----------------- UK 314,954 234,057 488,199 Rest of Europe 87,486 51,250 115,124 USA 110,729 68,171 166,262 Rest of world 51,697 41,831 87,335 ---------------- -------------------------- -------------------------- ----------------- 564,866 395,309 856,920 =============== ========================== ========================== ================= 4 Other income 6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 -------------- -------------------------- -------------------------- ----------------- Rental income 112 120 239 =============== ========================== ========================== ================= 5 Profit before tax Profit before tax is stated after charging: 6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 ------------------------------------------- -------------------------- -------------------------- ----------------- Operating lease rentals for buildings - 988 2,235 Equity-settled share-based payment charges 4,355 2,464 5,278 Acquisition and restructuring costs 1,261 - - Exceptional items - warehouse relocation - - 6,667 Depreciation of property, plant and equipment 5,513 3,090 6,972 Depreciation of right-of-use assets 2,393 - - Amortisation of intangible assets 1,589 1,163 2,500 Amortisation of acquired intangible assets 2,312 2,224 4,449 ------------------------------------------- -------------------------- -------------------------- ----------------- 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.
6 months 6 months Year to to 31 August to 31 August 28 February 2019 2018 2019 ------------------------------------------ -------------- -------------- -------------- Weighted average shares in issue for basic earnings per share 1,161,077,443 1,149,311,146 1,154,130,568 Dilutive share options 32,065,494 24,897,209 20,304,294 ------------------------------------------- -------------- -------------- -------------- Weighted average shares in issue for diluted earnings per share 1,193,142,937 1,174,208,355 1,174,434,862 =========================================== ============== ============== ============== Earnings attributable to owners of the parent company (GBP000) 29,551 16,309 37,772 Basic earnings per share 2.55p 1.42p 3.27p Diluted earnings per share 2.48p 1.39p 3.22p ------------------------------------------- -------------- -------------- -------------- Earnings attributable to owners of the parent company (GBP000) 29,551 16,309 37,772 Adjusting items: Amortisation of intangible assets arising on acquisitions 2,312 2,224 4,449 Share-based payment charges 4,355 2,464 5,278 Exceptional costs - warehouse relocation - 6,436 6,667 Adjustment for tax (1,227) (2,082) (3,050) Adjustment for non-controlling interests (296) (1,990) (2,335) ------------------------------------------- -------------- -------------- -------------- Adjusted earnings 34,695 23,361 48,781 ------------------------------------------- -------------- -------------- -------------- Adjusted basic earnings per share 2.99p 2.03p 4.23p Adjusted diluted earnings per share 2.91p 1.99p 4.15p ------------------------------------------- -------------- -------------- -------------- 7 Deferred tax
Assets
IFRS 16 modified Depreciation in excess of Share-based payments Total retrospective capital allowances GBP000 GBP000 GBP000 GBP000 --------------------------- --------------------------- --------------------------- --------------------- -------- At 28 February 2018 - 160 6,319 6,479 Recognised in statement of comprehensive income - (160) (58) (218) Credit in equity - - (2,108) (2,108) --------------------------- --------------------------- --------------------------- --------------------- -------- At 31 August 2018 - - 4,153 4,153 --------------------------- --------------------------- --------------------------- --------------------- -------- At 28 February 2019 - 87 3,947 4,034 Recognised in statement of comprehensive income (24) 197 580 753 Debit in equity 109 - (816) (707) --------------------------- --------------------------- --------------------------- --------------------- -------- At 31 August 2019 85 284 3,711 4,080 =========================== =========================== =========================== ===================== ========
Liabilities
Capital allowances in excess of Business combinations Total depreciation GBP000 GBP000 GBP000 ----------------------------------------- ----------------------------------------- ---------------------- -------- At 28 February 2018 - (2,101) (2,101) Recognised in statement of comprehensive income (147) 247 100 ----------------------------------------- ---------------------- -------- At 31 August 2018 (147) (1,854) (2,001) ----------------------------------------- ----------------------------------------- ---------------------- -------- At 28 February 2019 (495) (1,607) (2,102) Recognised in statement of comprehensive income (192) 247 55 At 31 August 2019 (687) (1,360) (2,047) ========================================= ========================================= ====================== ========
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.
8 Trade and other receivables 6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 ------------------------------------- -------------------------- -------------------------- ----------------- Trade receivables 28,012 23,405 14,201 Prepayments 9,560 10,482 5,126 Accrued income 440 1,262 386 Taxes and social security receivable 755 - 2,863 ------------------------------------- -------------------------- -------------------------- ----------------- 38,767 35,149 22,576 ===================================== ========================== ========================== ================= 9 Trade and other payables 6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 ------------------------------------------- -------------------------- -------------------------- ----------------- Trade payables 28,708 36,945 33,930 Amounts owed to related party undertakings - - - Other creditors 2,301 1,242 1,730 Accruals 104,109 77,587 81,930 Provision for liabilities 32,046 13,628 18,912 Deferred income 12,705 6,927 8,453 Taxes and social security payable 11,534 5,719 9,396 ------------------------------------------- -------------------------- -------------------------- ----------------- 191,403 142,048 154,351 =========================================== ========================== ========================== ================= 10 Share capital 6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 ------------------- -------------------------- -------------------------- ----------------- At start of period 11,631 11,496 11,496 Share issues 25 106 135 ------------------- -------------------------- -------------------------- ----------------- At end of period 11,656 11,602 11,631 =================== ========================== ========================== =================
Share capital at period end: 1,165,576,196 authorised and fully paid ordinary shares of 1p each (2019: 1,160,160,400). No dividends have been paid or are payable by the parent company for the period ended 31 August 2019 (2019: GBPnil).
11 Capital commitments
Capital expenditure contracted for at the end of the reporting period but not yet incurred is as follows:
6 months to 31 August 2019 6 months to 31 August 2018 Year to 28 February 2019 GBP000 GBP000 GBP000 ------------------------------ -------------------------- -------------------------- ----------------- Property, plant and equipment 9,000 6,870 - ------------------------------ -------------------------- -------------------------- ----------------- 12 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 brands and trading names. 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 31 August 2019, there are no pending claims or proceedings against the group, which in the opinion of the directors are expected to have a material adverse effect on its liquidity or operations.
Appendices
Growth rates on prior period revenue by region
Revenue by period for the year to 29 February 2020 (FY20)
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August --------------------------------- ------------------------------- FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy % % CER % % % % CER CER -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- Total 254,321 183,561 39% 39% 310,545 211,748 47% 47% 564,866 395,309 43% 43% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- Revenue by region -------------------------------------------- -------- -------- ---- ----- -------- -------- ----- UK 140,569 110,738 27% 27% 174,385 123,319 41% 41% 314,954 234,057 35% 35% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ----- ROE 38,252 22,257 72% 71% 49,234 28,993 70% 68% 87,486 51,250 71% 69% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- USA 51,336 31,389 64% 66% 59,393 36,782 61% 64% 110,729 68,171 62% 65% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- ROW 24,164 19,177 26% 28% 27,533 22,654 22% 23% 51,697 41,831 24% 25% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Revenue by period for the year to 28 February 2019 (FY19)
GBP'000 4m to 31 December 2m to 28 February 12m to 28 February --------------------------------- ------------------------------- FY19 FY18 yoy yoy FY19 FY18 yoy yoy FY19 FY18 yoy yoy % % CER % % % % CER CER -------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- ----- Total 328,231 228,215 44% 43% 133,375 88,710 50% 50% 856,920 579,800 48% 47% -------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- ----- Revenue by region -------------------------------------------- -------- ------- ----- ----- -------- ----- UK 179,952 135,642 33% 33% 74,185 56,592 31% 31% 488,199 355,614 37% 37% -------- -------- ---- ------- -------- ------- ----- ----- -------- ----- ROE 44,431 28,232 57% 54% 19,443 10,258 90% 86% 115,124 66,281 74% 67% -------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- ----- USA 70,427 39,618 78% 80% 27,664 13,475 105% 101% 166,262 92,690 79% 81% -------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- ----- ROW 33,421 24,723 35% 32% 12,083 8,385 44% 44% 87,335 65,215 34% 30% -------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- ----- GBP'000 3m to 31 May 3m to 31 August 6m to 31 August --------------------------------- ------------------------------- FY19 FY18 yoy yoy FY19 FY18 yoy yoy FY19 FY18 yoy yoy % % CER % % % % CER CER -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- Total 183,561 120,077 53% 52% 211,748 142,798 48% 47% 395,309 262,875 50% 49% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- Revenue by region -------------------------------------------- -------- -------- ---- ----- -------- ----- UK 110,738 74,532 49% 49% 123,319 88,849 39% 39% 234,057 163,381 43% 43% -------- -------- ---- ------- -------- -------- ---- ----- -------- ----- ROE 22,257 12,220 82% 71% 28,993 15,571 86% 73% 51,250 27,791 84% 72% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- USA 31,389 17,906 75% 78% 36,782 21,690 70% 71% 68,171 39,596 72% 74% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- ----- ROW 19,177 15,419 24% 22% 22,654 16,688 36% 31% 41,831 32,107 30% 27% -------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
CER in this appendix for the year ended 28 February 2019 is calculated using exchange rates prevailing during the year ending 28 February 2019. Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate
Brand KPIs
boohoo
6 months 6 months to Change to 31 August 31 August 2018(5) 2019 Active customers(1) 8.4 million 7.0 million +20% Number of orders 9.7 million 7.5 million +29% Order frequency(2) 2.11 2.07 +2% Conversion rate to sale (3) 3.3% 3.1% +19bps Average order value(4) GBP43.41 GBP40.40 +7% Number of items per basket 3.30 3.03 +9% ----------------------------- ------------ ------------ -------
PrettyLittleThing
6 months 6 months to Change to 31 August 31 August 2018(5) 2019 Active customers(1) 5.7 million 4.0 million +43% Number of orders 9.0 million 6.6 million +36% Order frequency(2) 2.97 2.83 +5% Conversion rate to sale (3) 3.6% 3.3% +26bps Average order value(4) GBP42.15 GBP40.09 +5% Number of items per basket 2.96 2.81 +5% ------------------------------ ------------ ------------ -------
Nasty Gal
6 months 6 months to Change to 31 August 31 August 2018(5) 2019 Active customers(1) 1.5 million 0.7 million +112% Number of orders 1.3 million 0.5 million +150% Order frequency(2) 1.55 1.38 +13% Conversion rate to sale (3) 2.2% 1.9% +37bps Average order value(4) GBP50.87 GBP48.77 +4% Number of items per basket 3.44 2.90 +18% ------------------------------ ------------ ------------ ------- 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 website orders taken to internet sessions 4. Calculated as gross sales including sales tax divided by the number of orders 5. Prior period numbers restated to include marketplace data
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR USRBRKRAKUAR
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