TIDMBOO
RNS Number : 8643K
boohoo.com plc
27 September 2016
For Immediate Release 27 September 2016
boohoo.com plc - Interim results for the six months ended 31
August 2016
"The Global Fashion Leader for a Social Generation"
GBP000 6 months ended 6 months ended Change
31 August 2016 31 August 2015
---------------------- --------------- --------------- ----------
Revenue 127,316 90,784 +40%
Gross profit 70,466 54,539 +29%
Gross margin 55.3% 60.1% -480bps
Operating profit 14,053 5,976 +135%
EBITDA (adjusted)(1) 16,510 7,613 +117%
Profit before
tax 14,364 6,270 +129%
Cash at period
end 67,056 60,360 +GBP6,696
Earnings per share 1.01p 0.45p +124%
---------------------- --------------- --------------- ----------
(1): EBITDA (adjusted) excludes equity-settled share based
payment costs of GBP0.5m (2015: GBP0.3m)
Highlights for the six months to 31 August 2016
-- Revenue up 40% (41% CER(2) )
o UK up 38%, rest of Europe up 41% (41% CER), USA up 93% (81%
CER), rest of world up 17% (27% CER)
o International now represents 36% of total revenue
-- Gross margin 55.3%, down 480bps (350bps due to planned
investment in price and promotions, with retail gross margin being
57.0%; and 130bps due to third party(3) revenue)
-- EBITDA (adjusted) was 13% of revenue (2015: 8.4%), reflecting efficiency improvements
-- Broader product range driving growth
-- 4.5m active customers(4) , up 28% on prior year
-- Strong balance sheet with net cash of GBP67m
(2): CER designates Constant Exchange Rate translation of
foreign currency revenue
(3): Third party includes revenue from other channels and
wholesale sales to retailers
(4): Active customers defined as having shopped in the last
year
Mahmud Kamani and Carol Kane, joint CEOs, commented:
"We are pleased to report a strong performance in the first half
of the year, with robust growth across all regions and continued
momentum in new customer growth.
Our inclusive brand, unbeatable choice, together with our
incredible prices and fantastic service, continue to inspire and
appeal to young customers around the world. Through our constant
focus on what matters to our customers, together with our
investment in technology and operational improvements, we will
continue to deliver profitable growth.
As a result of our continued momentum in the UK and encouraging
growth in selected overseas markets, we now expect revenue growth
for the full year of between 30% and 35%, reflecting tougher second
half comparatives. Following the success in the first half of the
year we will continue to look for opportunities to invest in
marketing campaigns and our customer proposition to drive future
sales growth and improve customer lifetime value. We will also be
making significant investments in our IT systems and Ecommerce
platforms. Consequently EBITDA margin for the full year is expected
to be around 11%."
Investor and Analyst Meeting
A meeting for investors and analysts will be held at the offices
of Buchanan, 107 Cheapside, London, EC2V 6DN on 27 September 2016,
commencing at 9.00am. A webcast will be available following the
presentation via the following link:
http://vm.buchanan.uk.com/2016/boohoo270916/registration.htm
boohoo.com plc's Interim Results 2017 are available at
www.boohooplc.com .
Enquiries
boohoo.com plc c/o Buchanan Tel: +44 (0)20 7466
Neil Catto, Chief Financial 5000
Officer
Buchanan - Financial PR adviser Tel: +44 (0)20 7466 5000
Richard Oldworth boohoo@buchanan.uk.com
Madeleine Seacombe
Zeus Capital - Nominated adviser
and joint broker Tel: +44 (0)161 831 1512
Nick Cowles/Andrew Jones (Corporate
Finance) Tel: +44 (0)20 3829 5000
Benjamin Robertson/ John Goold
(Corporate Broking)
Jefferies Hoare Govett - joint
broker Tel: +44 (0)20 7029 8000
Nick Adams
Max Jones
About boohoo.com
"24/7 Global Fashion"
Keeping one step ahead of the trends or making a subtle style
change is easy with boohoo.com and with up to 100 new pieces
hitting the site every day and a new collection each week,
boohoo.com never stops - it is 24/7 fashion at its best.
From the UK's best kept fashion secret to one of the fastest
growing own-brand, international etailers, boohoo.com has quickly
evolved into a global fashion leader of its generation. Combining
cutting-edge, aspirational design with an affordable price tag,
boohoo.com has been pushing boundaries since 2006 to bring its
customers all the latest looks for less.
www.boohoo.com www.boohoo.com/newz/page/home fr.boohoo.com
www.boohoo.com/europe/page/home www.boohoo.com/sweden/page/home de.boohoo.com
www.boohoo.com/usa/page/home www.boohoo.com/denmark/page/home it.boohoo.com
www.boohoo.com/canada/page/home www.boohoo.com/norway/page/home nl.boohoo.com
www.boohoo.com/aus/page/home es.boohoo.com
This announcement has been determined to contain inside
information.
Business review
Performance during the 6 months to 31 August 2016
Revenue growth across all geographic regions continued at a
strong pace. In the UK, our largest market, revenue growth was 38%,
whilst in Europe growth was 41% (CER 41%). The USA continued to
grow very strongly at 93% (CER 81%) and rest of the world growth
was 17% (CER 27%).
Currency exchange movements since the EU referendum have not
significantly affected results due to foreign exchange hedges
placed several months earlier in accordance with our rolling
hedging programme, although weaker sterling does provide the
opportunity to use promotional activity to generate incremental
international sales over and above hedged transactions. With an
element of many product prices being dollar-based, it remains to be
seen what the longer term effect of continued sterling weakness
might be in the supply chain.
Gross margin was 55.3% (2015: 60.1%) reducing by 480bps, of
which 350bps was in line with our strategy of increased investment
in price and promotions. A further 130bps was driven by a greater
proportion of lower margin third party sales (revenue from other
channels and wholesale sales to retailers). Retail gross margin was
57.0% (2015: 60.5%). Marketing expenditure decreased to 6.3% of
revenue compared to 12.6% in the comparable half year, as we
stimulated growth through greater use of price and delivery
promotions.
Adjusted EBITDA was GBP16.5 million (2015: GBP7.6 million), an
increase of 117% on the prior year, and profit before tax was
GBP14.4 million (2015: GBP6.3 million), an increase of 129%.
Fashion
We aim to be the best-priced brand in fashion and with a range
of over 20,000 styles we always have something to offer every taste
in style and from the latest trends. With 100 new styles on site
every day, the offering is continuously fresh and exciting. Our
test-and-repeat model reduces stock holding risk, whilst rapid
response enables us to reorder strong selling lines to quickly
satisfy demand.
Our core womenswear ranges of dresses, tops, jackets and
footwear have continued to perform strongly, whilst other products
from the expanded range are generating robust revenue growth:
plus-size and petite have grown strongly and attained a high level
of revenue and the more recently-introduced tall and lingerie
ranges have made a very promising start.
Fashion advice and lifestyle commentary is energetically
presented in the "Stylefix" section of the website. Here, female
customers can enjoy keeping up with fashion trends in a highly
engaging lifestyle media stream, watch videos and read interesting
articles by bloggers.
Our menswear range is expanding and, since early 2016, has been
sold from a separate menswear website in addition to the main site.
This has enabled us to offer a proposition more relevant to the
male audience, with added celebrity contributions, fashion advice
and lifestyle articles in the "Manual" section. Menswear is showing
great promise, with monthly sales at the end of the first half
double those at the start, and continuing to grow strongly.
In the second half year we will be introducing a range of
children's clothing for girls and boys in the 5 to 12 age range and
also a small maternity range.
Marketing
Marketing activity has continued with the highly successful
"WeAreUs" campaigns, through TV, media events and social media
channels. Bloggers and influencers also contribute via social media
to generate an inclusive and engaging experience for our social
media savvy customers, with great photography and interesting
articles promoting the brand and the latest products. Our "Style
Squads" comprise over 60 bloggers and influencers across our key
geographic markets.
In July we announced another celebrity fashion collaboration
with international curve model and blogger Jordyn Woods, which we
expect will be highly effective in the growing US market. In August
we held our launch party for this new collaboration in Los Angeles.
The event was covered extensively in the media and attracted many
celebrities and influencers including Kylie Jenner, Jaden Smith and
Hailey Baldwin. In April we staged pop-up shops, one in Los
Angeles, generating much interest in California amongst the
extensive student population, and one in Paris, supporting the
growing French market. In the UK we sponsored Graduate Fashion Week
and staged a number of media events, driving further awareness of
the brand.
In early spring we launched the boohooMAN.com website, with the
reality TV personality and celebrity Big Brother contestant Scotty
T fronting promotional activity. This has contributed to an
acceleration in menswear sales, supported by a continuously
increasing product range and marketing activity focussed on the
young male audience. We have also started a series of shoots with
key influencers, the latest being with actor and P-Diddy's stepson,
Quincy Brown.
Improvements in the efficiency of our acquisition marketing
spend have also been realised with the use of more advanced
analytical tools and techniques. We have also stepped up our
activity on social media on Facebook Live and on Snapchat and a
content drive on Instagram has helped us pass the 2 million
follower mark in the UK.
Customer interaction
Active customers, who shopped with us in the 12 months to 31
August 2016, rose to 4.5 million, an increase of 28% on the same
period a year ago. The number of website sessions grew strongly by
32% on the previous 12 months to 241 million sessions. Order
frequency has risen by 7.7%, with customers buying, on average, 2.1
times in 12 months and conversion rate to sale improved from 3.8%
to 3.9% of sessions. On social media we have 0.5 million followers
on Twitter and a reach of 7.9 million, 3.8 million followers on
Instagram, 2.3 million Facebook likes and a reach of 2.8 million
and 3.2 million views recorded on YouTube.
Our multi-lingual customer service team responds to customer
queries from a variety of platforms and aims for excellence in
response time and problem resolution. Our performance is constantly
measured internally and we monitor external customer review
websites such as Trustpilot to ensure we maintain best-in-class
standards. We have introduced web-chat in the UK, which is proving
highly effective and is receiving a high satisfaction rating from
customers.
boohoo.com customers are able to choose from a range of delivery
options, which we are constantly refining as new opportunities
become available. We operate a midnight cut-off for next day
delivery, Sunday delivery and collect+ returns in the UK. In the
second half of the year we have introduced boohoo Premier, which
offers an unlimited next day delivery service in the UK for an
annual fee, and has received a very favourable customer
response.
Technology
The Android and iPhone Apps introduced in the UK, USA and
Australia in early spring are being utilised increasingly by
customers, with 1.4 million downloads to date. Mobile and tablet
use continues to rise and now accounts for 72% of sessions.
We are planning to expand the number of market places in which
we are present in the second half and to improve personalisation by
territory and device to enhance the customer experience.
These new channels are facilitated by our systems architecture,
built around the concept of multiple customer channels supported
with common infrastructure. Around this architecture, we will make
significant investments in the latest sophisticated and most stable
platforms in the second half of the year. On-going refinements
contribute to an ever-improving customer experience.
Warehouse
Three more mezzanine floor layers, expanding capacity by another
275,000 square feet to 525,000 square feet total capacity, are now
in use in the warehouse, with capacity sufficient for medium term
future growth. A second warehouse extension, which will incorporate
a significant amount of automation, is now at the planning
stage.
People
Sara Murray joined the board as a non-executive director in
April and Mark Newton-Jones stepped down from the board in July. We
thank Mark for his contribution during a key developmental phase of
the company's history.
The senior management team remained unchanged during the period,
following a number of senior appointments last year. We appointed a
number of skilled middle-management positions and undertook several
large-scale training and development programmes as part of our
up-skilling and retention policy for staff development.
The rate of growth in revenue has required an increase in
personnel in the volume-related functions in customer service and
warehousing. The total permanent workforce now stands at 1,235, up
from 1,015 at 29 February 2016.
Pretty Little Thing
The company has an option to acquire the business of
"PrettyLittleThing" before March 2017 and management is evaluating
all aspects of a potential acquisition, the related management
incentive and how the business will be best integrated and managed
as part of the boohoo group.
Financial review
We have continued to drive strong customer growth through our
price, promotional and marketing strategy in the first half of the
year, whilst achieving good margins. By leveraging overheads, our
profitability has also improved.
Sales revenue by geographical market
6 months to 6 months to 31 August 2015 Change Change
31 August
2016
GBP000 GBP000 CER
---------------- ------------ --------------------------- ------- -------
UK 81,696 59,128 +38% +38%
Rest of Europe 14,713 10,403 +41% +41%
USA 15,226 7,901 +93% +81%
Rest of world 15,681 13,352 +17% +27%
---------------- ------------ --------------------------- ------- -------
127,316 90,784 +40% +41%
================ ============ =========================== ======= =======
In sterling equivalent and at constant exchange rates (CER), all
regions showed robust growth compared with the same period last
year.
KPIs
6 months to 31 August 2016 6 months to Change
31 August 2015
Active customers(1) 4.5 million 3.5 million +28%
Number of orders 5.1 million 3.8 million +32%
Order frequency(2) 2.11 1.96 +7.7%
Conversion rate to sale (3) 3.9% 3.8% +10bps
Average order value(4) GBP37.16 GBP33.91 +9.6%
Number of items per basket 2.86 2.74 +4.4%
----------------------------- --------------------------- ---------------- -------
(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
Our business is continuing to attract new customers and retain
existing customers, with active customer numbers increasing by 28%
compared to the comparative period in FY16. Customers are buying
more often from us, with order frequency increasing by 7.7% to an
average of 2.11 purchases in a year, and conversion rates have also
increased to 3.9%. Average order value has risen by 9.6% to
GBP37.16, whilst the number of items per basket increased by 4.4%
to 2.86.
Consolidated income statement
6 months to 31 August 2016 6 months to 31 August 2015 Change
GBP000 GBP000
---------------------------------- --------------------------- --------------------------- -------
Revenue 127,316 90,784 40%
Cost of sales (56,850) (36,245)
---------------------------------- --------------------------- --------------------------- -------
Gross profit 70,466 54,539 29%
Gross margin 55.3% 60.1%
Distribution costs (29,476) (21,513)
Administrative expenses (28,389) (27,409)
Other income 1,452 359
Operating profit 14,053 5,976 135%
Finance income 311 294
---------------------------------- --------------------------- --------------------------- -------
Profit before tax 14,364 6,270 129%
================================== =========================== =========================== =======
Calculation of EBITDA (adjusted)
Operating profit 14,053 5,976
Depreciation and amortisation 2,004 1,363
Share-based payments 453 274
EBITDA (adjusted) 16,510 7,613 117%
================================== =========================== =========================== =======
Reported gross margin reduced from 60.1% to 55.3%, due to keener
pricing and higher promotional discounts driving demand and an
increased proportion of lower margin third party sales.
Distribution costs and certain administrative expenses have
increased due to sales volume-related costs, whilst the remaining
overheads have decreased as a percentage of revenue.
EBITDA (adjusted) increased by 117% from GBP7.6m to
GBP16.5m.
Statement of financial position
At 31 August 2016 At 31 August 2015
GBP000 GBP000
----------------------------------------------------------------- ------------------ ------------------
Intangible assets 4,403 4,479
Property, plant and equipment 26,188 15,277
Financial assets - foreign exchange contracts 339 -
Deferred tax 810 101
------------------------------------------------------------------ ------------------ ------------------
Non-current assets 31,740 19,857
Working capital (4,789) (8,407)
Net financial (liabilities)/assets - foreign exchange contracts (11,349) 1,406
Cash and cash equivalents 67,056 60,360
Current tax liability (3,062) (1,316)
Net assets 79,596 71,900
================================================================== ================== ==================
Net assets have increased by GBP7.7m compared to 12 months ago.
The movement in working capital was less negative than 12 months
ago due to taking early settlement discounts from suppliers and
higher receivables from third party sales.
Liquidity and financial resources
Free cash flow was GBP10.6m compared to GBP7.4m in H1 2016. In
the first half of the year, inventories increased, due to the
requirement to hold more products to serve our growing customer
base, and receivables, payables and accruals increased in line with
trading activity. Capital expenditure was GBP6.6m as we have
continued to invest in our warehouse and IT systems to support
projected growth in trade. The closing cash balance was
GBP67.1m.
Consolidated cash flow statement
6 months to 31 August 2016 6 months to 31 August 2015
GBP000 GBP000
---------------------------------------------- ------ ----------------------------------- ---------------------------
Profit for the period 11,339 5,000
Depreciation charges and amortisation 2,004 1,363
Share-based payments charges 453 274
Tax expense 3,025 1,270
Finance income (311) (294)
Increase in inventories (6,356) (7,959)
Increase in trade and other receivables (4,451) (1,698)
Increase in trade and other payables 11,493 15,171
Capital expenditure (6,627) (5,704)
------------------------------------------------------ ----------------------------------- ---------------------------
Free cash flow 10,569 7,423
Purchase of own shares by Employee Benefit Trust - (331)
Interest received 171 304
Tax paid (1,965) (1,182)
Net cash flow 8,775 6,214
Cash and cash equivalents at beginning of period 58,281 54,146
------------------------------------------------------ ----------------------------------- ---------------------------
Cash and cash equivalents at end of period 67,056 60,360
====================================================== =================================== ===========================
Fixed and intangible asset additions
At 31 August 2016 At 31 August 2015
GBP000 GBP000
-------------------------------------------- ------------------ ------------------
IT intangible assets 736 628
Warehouse extension 4,129 4,736
Office buildings 998 -
IT equipment, office fixtures and fittings 764 340
--------------------------------------------- ------------------ ------------------
6,627 5,704
============================================ ================== ==================
Outlook
We are pleased to report a strong performance in the first half
of the year, with robust growth across all regions and continued
momentum in new customer growth.
Our inclusive brand, unbeatable choice, together with our
incredible prices and fantastic service, continue to inspire and
appeal to young customers around the world. Through our constant
focus on what matters to our customers, together with our
investment in technology and operational improvements, we will
continue to deliver profitable growth.
As a result of our continued momentum in the UK and encouraging
growth in selected overseas markets, we now expect revenue growth
for the full year of between 30% and 35%, reflecting tougher second
half comparatives. Following the success in the first half of the
year we will continue to look for opportunities to invest in
marketing campaigns and our customer proposition to drive future
sales growth and improve customer lifetime value. We will also be
making significant investments in our IT systems and Ecommerce
platforms. Consequently EBITDA margin for the full year is expected
to be around 11%.
Mahmud Kamani Carol Kane Neil Catto
Joint Chief Executive Joint Chief Executive Chief Financial
Officer
27 September 2016
Unaudited consolidated statement of comprehensive income
for the 6 months ended 31 August 2016
Note 6 months to 6 months to 31 August 2015 Year to
31 August 29 February
2016 2016
GBP000 GBP000 GBP000
Revenue 3 127,316 90,784 195,394
Cost of sales (56,850) (36,245) (82,483)
----------------------------------------------- ---- ----------- ---------------------------- ------------
Gross profit 70,466 54,539 112,911
Distribution costs (29,476) (21,513) (45,501)
Administrative expenses (28,389) (27,409) (53,756)
Other income 4 1,452 359 1,392
----------------------------------------------- ---- ----------- ---------------------------- ------------
Operating profit 14,053 5,976 15,046
Finance income 311 294 628
----------------------------------------------- ---- ----------- ---------------------------- ------------
Profit before tax 14,364 6,270 15,674
Taxation (3,025) (1,270) (3,236)
Profit for the period 11,339 5,000 12,438
=============================================== ==== =========== ============================ ============
Other comprehensive (expense)/income for the
period, net of income tax
Items that may be subsequently reclassified to
profit and loss:
Net fair value (loss)/gain on cash flow hedges (6,170) 584 (5,661)
Excess deferred tax on share-based payments 545 - -
Items that will not be subsequently
reclassified to profit and loss:
Translation of foreign entity balances 2 - 1
----------------------------------------------- ---- ----------- ---------------------------- ------------
Total comprehensive income for the period 5,716 5,584 6,778
=============================================== ==== =========== ============================ ============
Earnings per share 6
Basic 1.01p 0.45p 1.11p
Diluted 1.00p 0.44p 1.10p
----------------------------------------------- ---- ----------- ---------------------------- ------------
All activities relate to continuing operations.
Unaudited consolidated statement of financial position
at 31 August 2016
Note At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
--------------------------------------------------------- ---- --------- --------- ---------
Assets
Non-current assets
Intangible assets 4,403 4,479 4,542
Property, plant and equipment 26,188 15,277 21,426
Financial assets - foreign currency hedge contracts 339 - 28
Deferred tax 7 810 101 231
--------------------------------------------------------- ---- --------- --------- ---------
31,740 19,857 26,227
Current assets
Inventories 8 25,025 19,147 18,669
Trade and other receivables 9 11,692 5,532 7,096
Financial assets - foreign currency hedge contracts 92 1,643 35
Cash and cash equivalents 67,056 60,360 58,281
--------------------------------------------------------- ---- --------- ---------
Total current assets 103,865 86,682 84,081
Total assets 135,605 106,539 110,308
Liabilities
Current liabilities
Trade and other payables 10 (41,506) (33,086) (30,013)
Financial liabilities - foreign currency hedge contracts (8,564) (237) (4,291)
Current tax liability (3,062) (1,316) (1,967)
--------------------------------------------------------- ---- --------- ---------
Total current liabilities (53,132) (34,639) (36,271)
Non-current liabilities
Financial liabilities - foreign currency hedge contracts (2,877) - (610)
Total liabilities (56,009) (34,639) (36,881)
Net assets 79,596 71,900 73,427
========================================================= ==== ========= ========= =========
Equity
Share capital 11 11,233 11,231 11,233
Share premium 551,666 551,612 551,666
Capital redemption reserve 100 100 100
Hedging reserve (11,009) 1,406 (4,839)
EBT reserve (761) (761) (761)
Translation reserve 3 - 1
Reconstruction reserve (515,282) (515,282) (515,282)
Retained earnings 43,646 23,594 31,309
--------------------------------------------------------- ---- --------- --------- ---------
Total equity 79,596 71,900 73,427
========================================================= ==== ========= ========= =========
Unaudited consolidated statement of changes in equity
for the 6 months ended 31 August 2016
Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total
up share premium redemption reserve reserve reserve reserve earnings equity
capital reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- -------
Balance as
at 1 March
2016 11,233 551,666 100 (4,839) (761) 1 (515,282) 31,309 73,427
Share-based
payment
charge - - - - - - - 453 453
Excess
deferred
tax on
share-based
payment
charge - - - - - - - 545 545
Profit for
the period - - - - - - - 11,339 11,339
Translation
of foreign
operations - - - - - 2 - - 2
Fair value
loss on
cash flow
hedges - - - (6,170) - - - - (6,170)
Balance at
31 August
2016 11,233 551,666 100 (11,009) (761) 3 (515,282) 43,646 79,596
============ ======== ========= ========== ========= ========= ============ =============== ========= =======
Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total
up share premium redemption reserve reserve reserve reserve earnings equity
capital reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- -------
Balance as
at 1 March
2015 11,231 551,612 100 822 (430) - (515,282) 18,320 66,373
Purchase of
shares by
EBT - - - - (331) - - - (331)
Share-based
payment
charge - - - - - - - 274 274
Profit for
the period - - - - - - - 5,000 5,000
Fair value
gain on
cash flow
hedges - - - 584 - - - - 584
Balance at
31 August
2015 11,231 551,612 100 1,406 (761) - (515,282) 23,594 71,900
============ ======== ========= ========== ========= ========= ============ =============== ========= =======
Called Share Capital Hedging EBT Transla-tion Recon-struction Retained Total
up share premium redemption reserve reserve reserve reserve earnings equity
capital reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------ -------- --------- ---------- --------- --------- ------------ --------------- --------- -------
Balance at 1
March 2015 11,231 551,612 100 822 (430) - (515,282) 18,320 66,373
Purchase of
shares by
EBT - - - - (331) - - - (331)
Share-based
payment
charge 2 54 - - - - - 551 607
Profit for
the year - - - - - - - 12,438 12,438
Translation
of foreign
operations - - - - - 1 - - 1
Fair value
loss on
cash flow
hedges - - - (5,661) - - - - (5,661)
Balance at
29 February
2016 11,233 551,666 100 (4,839) (761) 1 (515,282) 31,309 73,427
============ ======== ========= ========== ========= ========= ============ =============== ========= =======
Unaudited consolidated cash flow statement
for the 6 months ended 31 August 2016
Note 6 months to 31 August 2016 6 months to 31 August 2015 Year to
29 February
2016
GBP000 GBP000 GBP000
---------------------------------------- ---- -------------------------- -------------------------- ------------
Cash flows from operating activities
Profit for the period 11,339 5,000 12,438
Adjustments for:
Depreciation charges and amortisation 2,004 1,363 3,058
Share-based payment charge 453 274 607
Gain on sale of property, plant and
equipment - - (2)
Finance income (311) (294) (628)
Tax expense 3,025 1,270 3,236
---------------------------------------- ---- -------------------------- -------------------------- ------------
16,510 7,613 18,709
Increase in inventories 8 (6,356) (7,959) (7,481)
Increase in trade and other receivables 9 (4,451) (1,698) (3,243)
Increase in trade and other payables 10 11,493 15,171 12,098
Cash generated from operations 17,196 13,127 20,083
Tax paid (1,965) (1,182) (2,627)
Net cash inflow from operating
activities 15,231 11,945 17,456
Cash flows from investing activities
Acquisition of intangible assets (736) (628) (1,488)
Acquisition of tangible property, plant
and equipment (5,891) (5,076) (12,123)
Proceeds from sale of property, plant
and equipment - - 2
Finance income 171 304 619
Net cash used in investing activities (6,456) (5,400) (12,990)
Cash flows from financing activities
Purchase of own shares by EBT - (331) (331)
Net cash used in financing activities - (331) (331)
Increase in cash and cash equivalents 8,775 6,214 4,135
======================================== ==== ========================== ========================== ============
Cash and cash equivalents at beginning
of period 58,281 54,146 54,146
---------------------------------------- ---- -------------------------- -------------------------- ------------
Cash and cash equivalents at end of
period 67,056 60,360 58,281
======================================== ==== ========================== ========================== ============
Notes
(forming part of the interim report and accounts)
1 Basis of preparation
The interim condensed financial statements for the six months
ended 31 August 2016 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 29 February
2016, 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 29 February 2016 have been
filed with the Jersey Companies Registry. The auditors' reports on
those accounts was unqualified, 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 26 September 2016.
Going concern
The interim financial statements have been approved on the
assumption that the group remains a going concern. The following
paragraph summarises the issues and basis on which the directors
have reached their conclusion.
The directors have reviewed the group's cash flow forecasts for
a period exceeding 12 months from the date of authorisation of
these interim financial statements. Following this review, the
directors have formed a judgement that, at the time of approval of
the interim financial statements, the group has sufficient
resources to continue operating for the foreseeable future
including the funding of necessary capital expenditure. For the
reasons noted above, the directors continue to prepare the
financial statements on a going concern basis.
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 29 February 2016.
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 28 February 2017 to be unchanged from those set
out in the group's Annual Report and Accounts for the year ended 29
February 2016, 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 19 to 21 of the group's Annual Report and Accounts for the
year ended 29 February 2016, a copy of which is available on the
group's website, www.boohooplc.com.
3 Segmental analysis
6 months to 31 August 2016
UK Rest of USA Rest of Total
Europe world
GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- -------- ------- ------- ------- ----------
Revenue 81,696 14,713 15,226 15,681 127,316
Cost of sales (36,738) (7,020) (6,261) (6,831) (56,850)
----------------------- -------- ------- ------- ------- ----------
Gross profit 44,958 7,693 8,965 8,850 70,466
Distribution expenses (18,172) (3,296) (3,296) (4,712) (29,476)
----------------------- -------- ------- ------- ------- ----------
Segment result 26,786 4,397 5,669 4,138 40,990
Administrative
expenses - - - - (28,389)
Other income - - - - 1,452
----------------------- -------- ------- ------- ------- ----------
Operating profit 14,053
Finance income - - - - 311
Profit before tax - - - - 14,364
======================= ======== ======= ======= ======= ==========
6 months to 31 August 2015
UK Rest of USA Rest of Total
Europe world
GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- -------- ------- ------- ------- --------
Revenue 59,128 10,403 7,901 13,352 90,784
Cost of sales (23,843) (4,482) (2,806) (5,114) (36,245)
----------------------- -------- ------- ------- ------- --------
Gross profit 35,285 5,921 5,095 8,238 54,539
Distribution expenses (13,165) (2,694) (1,973) (3,681) (21,513)
----------------------- -------- ------- ------- ------- --------
Segment result 22,120 3,227 3,122 4,557 33,026
Administrative
expenses - - - - (27,409)
Other income - - - - 359
-------- ------- ------- ------- --------
Operating profit 5,976
Finance income - - - - 294
Profit before tax - - - - 6,270
======================= ======== ======= ======= ======= ========
Year to 29 February 2016
UK Rest of USA Rest of Total
Europe world
GBP000 GBP000 GBP000 GBP000 GBP000
---------------------- -------- ------- ------- -------- --------
Revenue 130,096 22,630 16,523 26,145 195,394
Cost of sales (56,149) (9,955) (6,079) (10,300) (82,483)
----------------------- -------- ------- ------- -------- --------
Gross profit 73,947 12,675 10,444 15,845 112,911
Distribution expenses (27,838) (5,711) (3,938) (8,014) (45,501)
----------------------- -------- ------- ------- -------- --------
Segment result 46,109 6,964 6,506 7,831 67,410
Administrative
expenses - - - - (53,756)
Other income - - - - 1,392
----------------------- -------- ------- ------- -------- --------
Operating profit 15,046
Finance income - - - - 628
Profit before tax - - - - 15,674
======================= ======== ======= ======= ======== ========
4 Other income
6 months to 31 August 2016 6 months to Year to
31 August 2015 29 February 2016
GBP000 GBP000 GBP000
--------------------------------------------------- --------------------------- ---------------- ------------------
Income from warehousing and customer services 1,452 - 1,033
Gift to group from director for benefit of
employees - 359 359
--------------------------------------------------- --------------------------- ---------------- ------------------
1,452 359 1,392
=================================================== =========================== ================ ==================
5 Profit before tax
Profit before tax is stated after charging:
6 months to 31 August 2016 6 months to 31 August 2015 Year to
29 February 2016
GBP000 GBP000 GBP000
------------------------------------- --------------------------- --------------------------- ------------------
Operating lease rentals for buildings 383 374 712
Depreciation 1,129 653 1,551
Amortisation 875 710 1,507
Share-based payment charge 453 274 607
====================================== =========================== =========================== ==================
6 Earnings per share
Basic earnings per share is calculated by dividing profit after
tax by the weighted average number of shares in issue during the
year. Own shares held by the Employee Benefit Trusts are eliminated
from the weighted average number of shares. Diluted earnings per
share is calculated by dividing the profit after tax by the
weighted average number of shares in issue during the year,
adjusted for potentially dilutive share options.
6 months to 31 August 2016 6 months to 31 August 2015 Year to
29 February 2016
------------------------------------- --------------------------- --------------------------- ------------------
Weighted average shares in issue for
basic earnings per share 1,119,210,360 1,118,810,227 1,118,429,548
Dilutive share options 17,655,714 22,737,018 11,761,758
-------------------------------------- --------------------------- --------------------------- ------------------
Weighted average shares in issue for
diluted earnings per share 1,136,866,074 1,141,547,245 1,130,191,306
====================================== =========================== =========================== ==================
Earnings (GBP000) 11,339 5,000 12,438
Basic earnings per share 1.01p 0.45p 1.11p
Diluted earnings per share 1.00p 0.44p 1.10p
-------------------------------------- --------------------------- --------------------------- ------------------
7 Deferred tax
Depreciation in excess of capital Share-based payments Total
allowances
GBP000 GBP000 GBP000
----------------------------------------- ---------------------------------------- --------------------- -------
At 1 March 2015 (12) 58 46
---------------------------------------- --------------------- -------
At 31 August 2015 (12) 113 101
---------------------------------------- --------------------- -------
At 29 February 2016 62 169 231
Recognised in income statement (30) 64 34
Recognised in other comprehensive income - 545 545
------------------------------------------ ---------------------------------------- --------------------- -------
At 31 August 2016 32 778 810
========================================== ======================================== ===================== =======
8 Inventories
At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
---------------- -------- -------- ----------
Finished goods 25,025 19,147 18,669
================ ======== ======== ==========
The value of inventories included within cost of sales for the
period was GBP56,800,000 (2015: GBP36,300,000; 2016:
GBP82,187,000). The impairment provision was increased by GBP50,000
to GBP605,000 (2015: reduction of GBP55,000; 2016: increase of
GBP296,000) and charged to the statement of comprehensive
income.
9 Trade and other receivables
At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
--------------------------------------------- -------- -------- ----------
Amounts due from related party undertakings 685 42 613
Trade and other receivables 6,923 3,793 4,937
Prepayments and accrued income 4,084 1,697 1,546
--------------------------------------------- -------- -------- ----------
11,692 5,532 7,096
============================================= ======== ======== ==========
10 Trade and other payables
At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
------------------------------- -------- -------- ----------
Trade payables 11,586 16,660 11,255
Amounts owed to related party
undertakings - 20 17
Other payables 1,925 125 175
Accruals and deferred income 24,921 15,079 15,272
Taxes and social security
payable 3,074 1,202 3,294
------------------------------- -------- -------- ----------
41,506 33,086 30,013
=============================== ======== ======== ==========
11 Share capital
At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
------------------------------------- -------- -------- ----------
Authorised and fully paid
1,123,267,330 (2015: 1,123,132,260;
2016: 1,123,267,330) Ordinary
shares of 1p each 11,233 11,231 11,233
------------------------------------- -------- -------- ----------
12 Related party transactions
There were no related party transactions during the six months
to 31 August 2016 outside of the normal course of business.
13 Capital commitments
Capital expenditure contracted for at the period end but not
incurred amounted to:
At 31 At 31 At 29
August August February
2016 2015 2016
GBP000 GBP000 GBP000
------------------------------ -------- -------- ----------
Property, plant and equipment - 2,988 -
============================== ======== ======== ==========
Appendix to interim announcement - prior period revenues by
region
Revenue by period for the six months ended 31 August 2016
GBP'000s 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%
---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- -----
Sales 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%
---------- ------- ------- ---- ----- ------- ------- ----- ----- -------- ------- ---- -----
Revenue by period for the year to 29 February 2016
GBP'000s 3m to 31 May 3m to 31 August 6m to 31 August
---------- ------------------------------ ------------------------------ ------------------------------
FY16 FY15 yoy yoy FY16 FY15 yoy yoy FY16 FY15 yoy yoy
% % % % % %
CER CER CER
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
Total 41,322 30,659 35% 37% 49,462 36,538 35% 40% 90,784 67,197 35% 39%
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
Sales by region
------------------------------------------ ------- ------- ----- ----- ------- -----
UK 26,273 20,686 27% 27% 32,855 24,919 32% 32% 59,128 45,605 30% 30%
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
ROE 4,943 3,891 27% 45% 5,460 4,828 13% 26% 10,403 8,719 19% 34%
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
USA 3,815 1,485 157% 143% 4,086 1,382 196% 181% 7,901 2,867 176% 161%
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
ROW 6,291 4,597 37% 48% 7,061 5,409 31% 55% 13,352 10,006 33% 52%
---------- ------- ------- ----- ----- ------- ------- ----- ----- ------- ------- ----- -----
GBP'000s 4m to 31 December 2m to 29 February 12m to 29 February
---------- ------------------------------ ----------------------------- --------------------------------
FY16 FY15 yoy yoy FY16 FY15 yoy yoy FY16 FY15 yoy yoy
% % % % % %
CER CER CER
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
Total 73,692 50,793 45% 49% 30,918 21,861 41% 40% 195,394 139,851 40% 42%
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
Sales by region
------------------------------------------ ------- ------- ---- ----- -------- -----
UK 49,701 34,179 45% 45% 21,267 14,558 46% 46% 130,096 94,342 38% 38%
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
ROE 8,588 6,464 33% 44% 3,639 2,903 25% 20% 22,630 18,086 25% 35%
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
USA 5,962 2,639 126% 116% 2,659 1,504 77% 63% 16,523 7,009 136% 123%
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
ROW 9,441 7,511 26% 41% 3,353 2,895 16% 17% 26,145 20,414 28% 42%
---------- ------- ------- ----- ----- ------- ------- ---- ----- -------- -------- ----- -----
CER in this appendix for the year ended 29 February 2016 is
calculated using exchange rates prevailing during the year ending
29 February 2016.
Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy -
year-on-year; CER - constant exchange rate
PRESS RELEASE
This announcement contains inside information.
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.
PRESENTATION
Certain statements included or incorporate by reference within
this presentation may constitute "forward-looking statements" in
respect of the Group's operations, performance, prospects and/or
financial condition.
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 presentation should be construed as a
profit forecast.
This presentation 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 and 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 presentation reflect the knowledge and
information available at the time of its preparation. Liability
arising from anything in this presentation shall be governed by
English Law. Nothing in this presentation shall exclude any
liability under applicable laws that cannot be excluded in
accordance with such laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNKAEPKEFF
(END) Dow Jones Newswires
September 27, 2016 02:00 ET (06:00 GMT)