Earnings Release • Sep 29, 2015
Earnings Release
Open in ViewerOpens in native device viewer
National Storage Mechanism | Additional information
RNS Number : 4605A
boohoo.com plc
29 September 2015
For Immediate Release 29 September 2015
boohoo.com plc - Interim results for the six months to 31 August 2015
"The Global Fashion Leader for a Social Generation"
| £000 | 6 months ended 31 August 2015 | 6 months ended 31 August 2014 | Change |
| Revenue | 90,784 | 67,197 | +35% |
| Gross profit | 54,539 | 41,843 | +30% |
| Gross margin | 60.1% | 62.3% | -220bps |
| Operating profit | 5,976 | 4,326 | +38% |
| EBITDA (adjusted)(1) | 7,613 | 6,794 | +12% |
| Profit before tax | 6,270 | 4,500 | +39% |
| Cash at period end | 60,360 | 55,817 | +8% |
| Earnings per share | 0.45p | 0.29p | +55% |
(1): EBITDA (adjusted) is pre-exceptional costs of £nil (2014:£1.2m) and share based payment costs of £0.3m (2014: £0.4m)
Highlights for the six months to 31 August 2015
· Revenue up 35% (39% CER(2))
o UK up 30%, rest of Europe up 19% (34% CER), rest of world up 65% (75% CER)
o International now represents 35% of total revenue
· Gross margin 60.1%
· 8.4% EBITDA (adjusted) margin (2014: 10.1%), reflecting investment in price, promotions and marketing
· 3.5m active customers(3), up 32% on prior year
· UK app launched and responsive websites introduced for European sites, improving mobile and tablet offering (now 65% of sessions)
· Warehouse extension completed and now in use
· Strong balance sheet with net cash of £60m
(2): CER designates Constant Exchange Rate translation of foreign currency revenue
(3): Active customers defined as having shopped in the last year
Mahmud Kamani and Carol Kane, joint CEOs, commented:
"We are pleased to report a successful first half, with strong revenue growth driven by acquiring new customers through our investments in price, promotions and marketing spend. We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.
The autumn/winter marketing campaign #WeAreNow is supporting a good start to the second half. We are also pleased with the response to our new app and responsive websites and will continue to invest in building customer value and market reach in the second half of the year."
Investor and Analyst Meeting
A meeting for analysts will be held at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN on 29 September 2015 commencing at 8.30am. boohoo.com plc's Interim Results 2015 are available at www.boohooplc.com .
Enquiries
| boohoo.com plc Mahmud Kamani, Joint Chief Executive Carol Kane, Joint Chief Executive Neil Catto, Chief Financial Officer |
c/o Buchanan Tel: +44 (0)20 7466 5000 |
| Buchanan - Financial PR adviser Richard Oldworth Helen Chan Gabriella Clinkard |
Tel: +44 (0)20 7466 5000 [email protected] |
| Zeus Capital - Nominated adviser and joint broker Nick Cowles Andrew Jones John Goold |
Tel: +44 (0)161 831 1512 Tel: +44 (0)20 3829 2001 |
| Jefferies Hoare Govett - joint broker Nick Adams Max Jones |
Tel: +44 (0)20 7029 8000 |
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 pieces hitting the site every day and a new collection each week, boohoo.com never stops - it's 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 |
Business review
Performance during the 6 months to 31 August 2015
Revenue for the first half year increased to £90.8 million, up 35% (39% CER) on the previous year.
Growth in the UK was 30%, continuing the improved momentum we saw in the first quarter of the year.
Revenue growth in the rest of Europe was 19% (34% CER), impacted by the weak euro. Rest of the world growth revenue growth of 65% (75% CER) was very encouraging, driven by a strong performance in the Australian and US markets.
We have commenced a successful wholesale trial of boohoo branded products to a number of UK and overseas etailers. We plan to extend the range of partners we work with in the second half of the year and see the use of a wholesale channel as an effective strategy to build our brand internationally and broaden our customer reach.
Gross margin was 60.1% (2014: 62.3%) in spite of adverse exchange rate movements and increased promotions. Adjusted EBITDA was £7.6 million for the half year, an increase of 12% on the prior year. The 8.4% adjusted EBITDA margin (2014: 10.1%) reflects our investment in price, promotions and marketing to drive strong revenue growth during the first half of the year.
Fashion
We launch up to 100 new styles every day, with constant "new in" updates on our websites, so that our customers are offered the very latest trends and fashion. The combination of high fashion, great value prices and effective marketing encourages customers to shop for every occasion on a regular basis from a choice of around 15,000 styles. 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. The Petite range, launched in autumn 2014 has been highly successful, with robust month-on-month growth mirroring the success of the Plus Size range. Plus Size has continued to grow significantly and has been very well received in our international markets. Swimwear sales have grown strongly, continuing last year's success, as boohoo becomes a shopping destination of choice. We are excited about the introduction of our new range, boohoo Tall, in the second half.
In the spring, we launched boohoo brands, which has made shopping for a chosen look or occasion much easier and more enjoyable, collating similar styles and co-ordinates in categories, such as boohoo Nights and boohoo Blue. Not only is searching time reduced, but complementary items are also easier to find. The "inspire me" and Stylefix pages ensure our customer sees the latest trends and receives the latest fashion tips.
Marketing
Our spring/summer 2015 campaign, "#WeAreUs" featured an innovative approach to marketing with behind-the-scenes videos relating to the brand and its people, shown on boohoo TV and social media, where customers could share images, music, health and lifestyle tips. Highly engaging with our young consumers, who enjoy developing connections with their interest groups, the campaign aimed to promote loyalty through building a greater emotional connection with our customers, expressing our brand personality and the core values of fun, inclusivity and individuality.
Marketing activity has been focussed on our key markets and included TV advertising, media events, college ambassador programmes and social media influencers. In these markets we have engaged local bloggers and well-known social media personalities to promote the brand. Our most recent celebrity signing is hit singer/song writer Charli XCX, who has entered into an exclusive design collaboration for a series of ranges over the next 18 months, the first of which will be launched before Christmas 2015. Charli XCX has a following of 2.5 million Facebook fans and is hugely popular amongst our targeted demographic.
The autumn/winter 2015 campaign "#WeAreNow" is successfully building on the "#WeAreUs" theme earlier in the year and introduces the new season ranges, supported by a new TV ad, celebrities and influencers. In the UK we are launching a student ambassador programme at key universities, whilst in France we will have a pop-up store and will continue with sponsorship of Secret Story, the reality TV series.
Marketing expenditure was 12.6% of revenue over the period compared to 14.5% in the previous year, with a higher focus on price and delivery promotions compared to the previous year.
Customer interaction
We served 3.5 million customers in the 12 months to 31 August 2015, an increase of 32% on the same period a year ago. Website traffic grew strongly, with 182 million sessions recorded in the year, up 27% on the previous 12 months. Our social media statistics reveal we have 0.4 million followers on Twitter, 1.1 million on Instagram, 2.2 million Facebook likes and 2.5 million views recorded on YouTube. We also feature on other social media sites including Vine, Snapchat and Pinterest.
We have a multi-lingual customer services team responding to customer queries from a variety of media and aim for excellence in response time and problem resolution. We constantly measure our performance internally and monitor external customer review websites such as Trustpilot to ensure we maintain best-in-class standards.
Our customers are able to choose from a range of delivery options, which we are constantly refining as new opportunities become available. Last year we introduced a 9pm cut off for next day delivery, Sunday delivery and collect+ in the UK. This year we have reduced the shipping time to Australia by one day and have plans to introduce more collection and return options via third party stores and distribution networks. Customers will shortly be able to use a website portal to choose their preferred return option.
Technology
In the first half of this year, we converted the remaining European websites, including France and Germany, to fully responsive sites (meaning the website layout responds to the size of the device being used by the customer). Now all our websites function according to the device used, improving viewing and ease of use.
Android and iPhone Apps have been introduced in the UK and will be rolled out to other territories in the second half. Mobile and tablet use continues to rise and now accounts for 65% of sessions.
Warehouse
The new warehouse extension entered service in August this year, with 270,000 additional square feet of storage space made available from three mezzanine floors. Capacity can be rapidly expanded in future by another 275,000 square feet from three more mezzanine floor layers, to cater for significant future growth. Total warehouse capacity now stands at 525,000 square feet, equivalent in size to over six football pitches.
People
Our senior management team was strengthened last year with a number of new positions, providing the expertise we need for the growth of the business. This year we have added one more senior position, that of International Director, which we see as a key appointment for the execution of our international growth strategy. The rate of growth in revenue has required an increase in personnel in the volume-related functions in customer service and warehousing. The total workforce now stands at 876, up from 784 at 28 February 2015.
Financial review
During the first half we have invested in acquiring new customers which has delivered revenue growth ahead of our initial expectations with profits in line with our financial plans.
Sales revenue by geographical market
| 6 months to 31 August 2015 |
6 months to 31 August 2014 | Change | Change | |
| £000 | £000 | CER | ||
| UK | 59,128 | 45,605 | +30% | +30% |
| Rest of Europe | 10,403 | 8,719 | +19% | +34% |
| Rest of world | 21,253 | 12,873 | +65% | +75% |
| 90,784 | 67,197 | +35% | +39% |
At constant exchange rates [CER], all regions showed growth compared with the same period last year. Growth in sterling terms has been impacted by currency headwinds across our international business, especially in Australia and Europe.
KPIs
| 6 months to 31 August 2015 | 6 months to 31 August 2014 |
Change | |
| Active customers(1) | 3.5 million | 2.7 million | +32% |
| Number of orders | 3.8 million | 2.7 million | +43% |
| Conversion rate to sale (2) | 3.8% | 3.5% | +30bps |
| Average order value(3) | £33.91 | £36.90 | -8.1% |
| Number of items per basket | 2.74 | 2.68 | +2.2% |
(1) Defined as having shopped in the past year
(2) Defined as the percentage of orders taken to internet sessions
(3) 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 32% compared to a twelve month period one year ago. Conversion rates have increased to 3.8%. Average order value has seen a small decline of 8.1% to £33.91 as we have sought to keep our prices highly competitive and target product at price points most appealing to our young customers, whilst the number of items per basket increased by 2.2% to 2.74.
Consolidated income statement
| 6 months to 31 August 2015 | 6 months to 31 August 2014 | Change | ||
| £000 | £000 | |||
| Revenue | 90,784 | 67,197 | 35% | |
| Cost of sales | (36,245) | (25,354) | ||
| Gross profit | 54,539 | 41,843 | 30% | |
| Gross margin | 60.1% | 62.3% | ||
| Distribution costs | (21,513) | (14,618) | ||
| Administrative expenses | (27,409) | (22,899) | ||
| Other income | 359 | - | ||
| Operating profit | 5,976 | 4,326 | 38% | |
| Finance income | 294 | 174 | ||
| Profit before tax | 6,270 | 4,500 | 39% | |
| Calculation of EBITDA (adjusted) | ||||
| Operating profit | 5,976 | 4,326 | ||
| Depreciation and amortisation | 1,363 | 824 | ||
| Share-based payments | 274 | 417 | ||
| Exceptional items | - | 1,227 | ||
| EBITDA (adjusted) | 7,613 | 6,794 | 12% | |
Reported gross margin reduced from 62.3% to 60.1%, due in equal parts to adverse exchange rate movements, higher promotional discounts and investment in international pricing, the latter two driving demand.
Distribution costs and administrative expenses have increased due to business expansion, higher marketing expenditure, investment in improved, more efficient, systems and in talented people to support the business growth, recruited in the second half of last year.
The exceptional items of £1.2m in H1 last year, included in administrative expenses, related to IPO expenses.
EBITDA (adjusted) increased by 12% from £6.8m to £7.6m.
Statement of financial position
| At 31 August 2015 | At 31 August 2014 | ||
| £000 | £000 | ||
| Intangible assets | 4,479 | 3,770 | |
| Property, plant and equipment | 15,277 | 7,037 | |
| Deferred tax | 101 | 121 | |
| Non-current assets | 19,857 | 10,928 | |
| Working capital | (8,407) | (4,798) | |
| Net financial assets | 1,406 | (56) | |
| Cash and cash equivalents | 60,360 | 55,817 | |
| Interest bearing loans and borrowings | - | (99) | |
| Current tax liability | (1,316) | (1,291) | |
| Net assets | 71,900 | 60,501 |
Net assets have increased by £11.4m. Working capital has reduced primarily due to increased trade creditors and accruals for unbilled goods and services at the month end driven by increased trading activity.
Liquidity and financial resources
Free cash flow was £6.8m compared to £7.0m in H1 2014. Working capital requirements decreased: inventories increased due to the requirement to hold more products to serve our growing customer base; receivables, payables and accruals increased in line with trading activity. Capital expenditure was £5.7m as we have continued to invest in our warehouse and IT systems to support projected growth in trade. The closing cash balance was £60.4m.
| Consolidated cash flow statement | ||||||||
| 6 months to 31 August 2015 | 6 months to 31 August 2014 | |||||||
| £000 | £000 | |||||||
| Profit for the period | 5,000 | 3,282 | ||||||
| Depreciation charges and amortisation | 1,363 | 824 | ||||||
| Share-based payments charges | 274 | 417 | ||||||
| Tax expense | 1,270 | 1,218 | ||||||
| Finance income | (294) | (174) | ||||||
| Increase in inventories | (7,959) | (1,317) | ||||||
| (Increase)/decrease in trade and other receivables | (2,488) | 332 | ||||||
| Increase in trade and other payables | 15,377 | 4,793 | ||||||
| Capital expenditure | (5,704) | (2,380) | ||||||
| Free cash flow | 6,839 | 6,995 | ||||||
| Net proceeds raised from IPO | - | 47,515 | ||||||
| Purchase of own shares by Employee Benefit Trust | (331) | (400) | ||||||
| Interest received | 304 | 174 | ||||||
| Tax paid | (1,182) | (1,162) | ||||||
| Non-cash charges and exchange differences | 584 | (73) | ||||||
| Repayment of borrowings | - | (2,643) | ||||||
| Net cash flow | 6,214 | 50,406 | ||||||
| Cash and cash equivalents at beginning of period | 54,146 | 5,411 | ||||||
| Cash and cash equivalents at end of period | 60,360 | 55,817 | ||||||
Fixed and intangible asset additions
| At 31 August 2015 | At 31 August 2014 | ||
| £000 | £000 | ||
| IT intangible assets | 628 | 1,024 | |
| Warehouse extension | 4,736 | 629 | |
| IT equipment, office fixtures and fittings | 340 | 727 | |
| 5,704 | 2,380 |
Outlook
We continue to invest in our brand internationally and our strategy to focus on key markets where we see the greatest growth potential remains unchanged.
Our wholesale business trial has performed well and we plan to continue to extend the number of partners we work with in the second half of the year. We will continue to refine the customer experience through a combination of technological improvements, more delivery and return options whilst retaining what we are best at: offering great fashionable product at affordable prices.
During the first half of the year we have invested in acquiring new customers with revenue growth exceeding our initial expectations. We now anticipate revenue growth for the full of year of between 30% and 35%. During the second half we will continue to look at opportunities to invest in building customer lifetime value and market reach which may impact margins in the short term. We are trading in line with current market expectations for EBITDA.
We remain focussed on driving growth in our business and we are pleased with the start we have made to the AW15 season.
| Mahmud Kamani | Carol Kane | Neil Catto |
| Joint Chief Executive | Joint Chief Executive | Chief Financial Officer |
28 September 2015
Unaudited consolidated statement of comprehensive income
for the 6 months ended 31 August 2015
| Note | 6 months to 31 August 2015 | 6 months to 31 August 2014 | Year to 28 February 2015 |
||
| £000 | £000 | £000 | |||
| Revenue | 3 | 90,784 | 67,197 | 139,851 | |
| Cost of sales | (36,245) | (25,354) | (54,806) | ||
| Gross profit | 54,539 | 41,843 | 85,045 | ||
| Distribution costs | (21,513) | (14,618) | (30,653) | ||
| Administrative expenses | (27,409) | (22,899) | (43,814) | ||
| Other income | 4 | 359 | - | - | |
| Operating profit | 5,976 | 4,326 | 10,578 | ||
| Finance income | 294 | 174 | 490 | ||
| Profit before tax | 6,270 | 4,500 | 11,068 | ||
| Taxation | (1,270) | (1,218) | (2,663) | ||
| Profit for the period | 5,000 | 3,282 | 8,405 | ||
| Net fair value gain/(loss) on cash flow hedges | 584 | (73) | 802 | ||
| Total comprehensive income for the period | 5,584 | 3,209 | 9,207 | ||
| Earnings per share | 6 | ||||
| Basic | 0.45p | 0.29p | 0.75p | ||
| Diluted | 0.44p | 0.29p | 0.74p |
All activities relate to continuing operations.
Administrative expenses includes the following exceptional items: £nil (2014: IPO expenses £1,254,000).
Unaudited consolidated statement of financial position
at 31 August 2015
| Note | At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
||
| £000 | £000 | £000 | |||
| Assets | |||||
| Non-current assets | |||||
| Intangible assets | 4,479 | 3,770 | 4,561 | ||
| Property, plant and equipment | 15,277 | 7,037 | 10,854 | ||
| Deferred tax | 7 | 101 | 121 | 46 | |
| 19,857 | 10,928 | 15,461 | |||
| Current assets | |||||
| Inventories | 8 | 19,147 | 11,112 | 11,188 | |
| Trade and other receivables | 9 | 5,532 | 3,693 | 3,845 | |
| Financial assets | 1,643 | 27 | 852 | ||
| Cash and cash equivalents | 60,360 | 55,817 | 54,146 | ||
| Total current assets | 86,682 | 70,649 | 70,031 | ||
| Total assets | 106,539 | 81,577 | 85,492 | ||
| Liabilities | |||||
| Current liabilities | |||||
| Trade and other payables | 10 | (33,086) | (19,603) | (17,915) | |
| Interest bearing loans and borrowings | 11 | - | (99) | - | |
| Financial liabilities | (237) | (83) | (31) | ||
| Current tax liability | (1,316) | (1,291) | (1,173) | ||
| Total current liabilities | (34,639) | (21,076) | (19,119) | ||
| Net assets | 71,900 | 60,501 | 66,373 | ||
| Equity | |||||
| Share capital | 12 | 11,231 | 11,231 | 11,231 | |
| Share premium | 12 | 551,612 | 551,591 | 551,612 | |
| Capital redemption reserve | 100 | 100 | 100 | ||
| Hedging reserve | 1,406 | (53) | 822 | ||
| EBT reserve | (761) | (429) | (430) | ||
| Reconstruction reserve | (515,282) | (515,261) | (515,282) | ||
| Retained earnings | 23,594 | 13,322 | 18,320 | ||
| Total equity | 71,900 | 60,501 | 66,373 |
Unaudited consolidated statement of changes in equity
for the 6 months ended 31 August 2015
| Called up share capital | Share premium | Capital redemption reserve | Hedging reserve | EBT reserve | Recon-struction reserve | Retained earnings | Total equity |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| 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 up share capital | Share premium | Capital redemption reserve | Hedging reserve | EBT reserve | Recon-struction reserve | Retained earnings | Total equity |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Balance as at 1 March 2014 | - | - | 100 | 20 | - | 17 | 9,623 | 9,760 |
| Issue of shares | 11,231 | 551,591 | - | - | (29) | (515,278) | - | 47,515 |
| Purchase of shares by EBT | - | - | - | - | (400) | - | - | (400) |
| Share-based payment charge | - | - | - | - | - | - | 417 | 417 |
| Profit for the period | - | - | - | - | - | - | 3,282 | 3,282 |
| Fair value loss on cash flow hedges | - | - | - | (73) | - | - | - | (73) |
| Balance at 31 August 2014 | 11,231 | 551,591 | 100 | (53) | (429) | (515,261) | 13,322 | 60,501 |
| Called up share capital | Share premium | Capital redemption reserve | Hedging reserve | EBT reserve | Recon-struction reserve | Retained earnings | Total equity |
|
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
| Balance as at 1 March 2014 | - | - | 100 | 20 | - | 17 | 9,623 | 9,760 |
| Issue of shares | 11,231 | 551,612 | - | - | - | (515,299) | - | 47,544 |
| Purchase of shares by EBT | - | - | - | - | (430) | - | - | (430) |
| Share-based payments credit | - | - | - | - | - | - | 292 | 292 |
| Profit for the year | - | - | - | - | - | - | 8,405 | 8,405 |
| Other comprehensive income for the year | - | - | - | 802 | - | - | - | 802 |
| Balance at 28 February 2015 | 11,231 | 551,612 | 100 | 822 | (430) | (515,282) | 18,320 | 66,373 |
Unaudited consolidated cash flow statement
for the 6 months ended 31 August 2015
| Note | 6 months to 31 August 2015 | 6 months to 31 August 2014 | Year to 28 February 2015 |
||
| £000 | £000 | £000 | |||
| Cash flows from operating activities | |||||
| Profit for the period | 5,000 | 3,282 | 8,405 | ||
| Adjustments for: | |||||
| Depreciation charges and amortisation | 1,363 | 824 | 2,002 | ||
| Share-based payment charge | 274 | 417 | 292 | ||
| Transfer from hedging reserves | 584 | (73) | 802 | ||
| Finance income | (294) | (174) | (490) | ||
| Tax expense | 1,270 | 1,218 | 2,663 | ||
| Profit before tax before changes in working capital and provisions | 8,197 | 5,494 | 13,674 | ||
| Increase in inventories | 8 | (7,959) | (1,317) | (1,393) | |
| (Increase)/decrease in trade and other receivables | 9 | (2,488) | 332 | (523) | |
| Increase in trade and other payables | 10 | 15,377 | 4,793 | 3,053 | |
| Cash generated from operations | 13,127 | 9,302 | 14,811 | ||
| Tax paid | (1,182) | (1,162) | (2,650) | ||
| Net cash inflow from operating activities | 11,945 | 8,140 | 12,161 | ||
| Cash flows from investing activities | |||||
| Acquisition of intangible assets | (628) | (1,024) | (2,442) | ||
| Acquisition of tangible property, plant and equipment | (5,076) | (1,356) | (5,724) | ||
| Finance income | 304 | 174 | 368 | ||
| Net cash used in investing activities | (5,400) | (2,206) | (7,798) | ||
| Cash flows from financing activities | |||||
| Proceeds from the issue of ordinary shares | - | 300,000 | 300,000 | ||
| Payment of convertible loan notes to shareholders of ABK Limited | - | (239,899) | (239,899) | ||
| Share issue costs written off to share premium | - | (12,586) | (12,586) | ||
| Purchase of own shares by EBT | (331) | (400) | (401) | ||
| Repayment of borrowings | - | (2,643) | (2,742) | ||
| Net cash (used in)/generated from financing activities | (331) | 44,472 | 44,372 | ||
| Increase in cash and cash equivalents | 6,214 | 50,406 | 48,735 | ||
| Cash and cash equivalents at beginning of period | 54,146 | 5,411 | 5,411 | ||
| Cash and cash equivalents at end of period | 60,360 | 55,817 | 54,146 |
Notes
(forming part of the interim report and accounts)
The interim financial statements for the six months ended 31 August 2015 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 2015, 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 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 2015 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 Review. The Business Review describes the group's financial position, cash flows and borrowing facilities.
The interim financial statements are unaudited and were approved by the board of directors on 28 September 2015.
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 28 February 2015.
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 2016 to be unchanged from those set out in the group's Annual Report and Accounts for the year ended 28 February 2015, which in summary are: economic risk; competition risk; fashion and consumer demands risk; systems and technical risk; supply chain risk; reputational risk; financial risk; people risk; and loss of key facilities. These are set out in detail on pages 30 to 32 of the group's Annual Report and Accounts for the year ended 28 February 2015, a copy of which is available on the group's website, www.boohooplc.com.
3 Segmental analysis
| 6 months to 31 August 2015 | ||||||
| UK | Rest of Europe | Rest of world |
Total | |||
| £000 | £000 | £000 | £000 | |||
| Revenue | 59,128 | 10,403 | 21,253 | 90,784 | ||
| Cost of sales | (23,843) | (4,482) | (7,920) | (36,245) | ||
| Gross profit | 35,285 | 5,921 | 13,333 | 54,539 | ||
| Distribution expenses | (13,165) | (2,694) | (5,654) | (21,513) | ||
| Segment result | 22,120 | 3,227 | 7,679 | 33,026 | ||
| Administrative expenses | - | - | - | (27,409) | ||
| Other income | - | - | - | 359 | ||
| Operating profit | 5,976 | |||||
| Finance income | - | - | - | 294 | ||
| Profit before tax | - | - | - | 6,270 | ||
| 6 months to 31 August 2014 | ||||||
| UK | Rest of Europe |
Rest of world |
Total | |||
| £000 | £000 | £000 | £000 | |||
| Revenue | 45,605 | 8,719 | 12,873 | 67,197 | ||
| Cost of sales | (17,688) | (3,373) | (4,293) | (25,354) | ||
| Gross profit | 27,917 | 5,346 | 8,580 | 41,843 | ||
| Distribution expenses | (8,765) | (2,097) | (3,756) | (14,618) | ||
| Segment result | 19,152 | 3,249 | 4,824 | 27,225 | ||
| Administrative expenses | - | - | - | (22,899) | ||
| Operating profit | 4,326 | |||||
| Finance income | - | - | - | 174 | ||
| Profit before tax | - | - | - | 4,500 |
| Year to 28 February 2015 | |||||
| UK | Rest of Europe |
Rest of world |
Total | ||
| £000 | £000 | £000 | £000 | ||
| Revenue | 94,342 | 18,086 | 27,423 | 139,851 | |
| Cost of sales | (37,911) | (7,275) | (9,620) | (54,806) | |
| Gross profit | 56,431 | 10,811 | 17,803 | 85,045 | |
| Distribution expenses | (19,078) | (3,953) | (7,622) | (30,653) | |
| Segment result | 37,353 | 6,858 | 10,181 | 54,392 | |
| Administrative expenses | - | - | - | (43,814) | |
| Operating profit | 10,578 | ||||
| Finance income | - | - | - | 490 | |
| Profit before tax | - | - | - | 11,068 |
| 6 months to 31 August 2015 | 6 months to 31 August 2014 |
Year to 28 February 2015 |
|
| £000 | £000 | £000 | |
| Gift to group from director for benefit of employees | 359 | - | - |
5 Profit before tax
Profit before tax is stated after charging:
| 6 months to 31 August 2015 | 6 months to 31 August 2014 | Year to 28 February 2015 |
||
| £000 | £000 | £000 | ||
| Operating lease rentals for buildings | 374 | 290 | 588 | |
| Depreciation | 653 | 518 | 1,069 | |
| Amortisation | 710 | 306 | 933 | |
| Share-based payment charge | 274 | 417 | 292 | |
| Exceptional items - IPO costs | - | 1,227 | 1,254 |
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 2015 | 6 months to 31 August 2014 | Year to 28 February 2015 |
||
| Weighted average shares in issue for basic earnings per share | 1,118,810,227 | 1,120,041,882 | 1,119,632,278 | |
| Dilutive share options | 22,737,018 | 13,827,152 | 14,209,534 | |
| Weighted average shares in issue for diluted earnings per share | 1,141,547,245 | 1,133,869,034 | 1,133,841,812 | |
| Earnings (£000) | 5,000 | 3,282 | 8,405 | |
| Basic earnings per share | 0.45p | 0.29p | 0.75p | |
| Diluted earnings per share | 0.44p | 0.29p | 0.74p |
| Depreciation in excess of capital allowances | Share-based payments | Total | ||
| £000 | £000 | £000 | ||
| At 1 March 2014 | 33 | - | 33 | |
| At 31 August 2014 | 33 | 88 | 121 | |
| At 28 February 2015 | (12) | 58 | 46 | |
| Recognised in statement of comprehensive income | - | 55 | 55 | |
| At 31 August 2015 | (12) | 113 | 101 |
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Finished goods | 19,147 | 11,112 | 11,188 |
The value of inventories included within cost of sales for the period was £36,300,000 (2014: £25,354,000). The impairment provision was reduced by £55,000 (2014: increase of £342,000) and released to the statement of comprehensive income.
9 Trade and other receivables
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Amounts due from related party undertakings | 42 | 51 | 13 |
| Other receivables | 3,793 | 2,542 | 2,768 |
| Prepayments and accrued income | 1,697 | 1,100 | 1,064 |
| 5,532 | 3,693 | 3,845 |
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Trade payables | 16,660 | 6,315 | 8,037 |
| Amounts owed to related party undertakings | 20 | - | 9 |
| Other payables | 125 | 121 | 90 |
| Accruals and deferred income | 15,079 | 10,775 | 8,326 |
| Taxes and social security payable | 1,202 | 2,392 | 1,453 |
| 33,086 | 19,603 | 17,915 |
This note provides information about the contractual terms of the group's interest-bearing loans and borrowings, which are measured at amortised cost.
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Current liabilities | |||
| Other loans | - | 99 | - |
Terms and debt repayment schedule
| Currency | Nominal interest rate | Year of maturity |
At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | ||||
| Other loan | £ | 0% | 2014 | - | 99 | - |
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Authorised and fully paid | |||
| 1,123,132,360 Ordinary shares of 1p each | 11,231 | 11,231 | 11,231 |
| Share premium | 551,612 | 551,591 | 551,612 |
| 562,843 | 562,822 | 562,843 |
Related party transactions during the six months to 31 August 2015 outside of the normal course of business comprise: the purchase of 1,168,641 shares for £331,244 by the Share Incentive Plan Trustee for which the cash was provided by the company; and the gift of £359,000 by Mahmud Kamani to the company for the benefit of employees.
Capital expenditure contracted for at the period end but not incurred amounted to:
| At 31 August 2015 |
At 31 August 2014 |
At 28 February 2015 |
|
| £000 | £000 | £000 | |
| Property, plant and equipment | 2,988 | - | 2,622 |
Appendix - prior period revenues
Revenue by period for the six months ended 31 August 2015
| £'000s | Q1 | yoy % | yoy % CER |
Q2 | yoy % | yoy % CER |
H1 FY16 | yoy % | yoy % CER |
| Sales | 41,322 | 35% | 37% | 49,462 | 35% | 40% | 90,784 | 35% | 39% |
| UK | 26,273 | 27% | 27% | 32,855 | 32% | 32% | 59,128 | 30% | 30% |
| ROE | 4,943 | 27% | 45% | 5,460 | 13% | 26% | 10,403 | 19% | 34% |
| ROW | 10,106 | 66% | 70% | 11,147 | 64% | 81% | 21,253 | 65% | 75% |
Revenue by period for the year ending 28 February 2015
| £'000s | Q1 | yoy % | yoy % CER |
Q2 | yoy % | yoy % CER |
H1 FY15 | yoy % | yoy % CER |
| Sales | 30,659 | 24% | 30% | 36,538 | 37% | 41% | 67,197 | 31% | 36% |
| UK | 20,686 | 44% | 44% | 24,919 | 50% | 50% | 45,605 | 47% | 47% |
| ROE | 3,891 | 36% | 40% | 4,828 | 50% | 61% | 8,719 | 43% | 51% |
| ROW | 6,082 | (20)% | (6)% | 6,791 | 0% | 8% | 12,873 | -11% | 1% |
| £'000s | 4m to Dec | yoy % | yoy % CER |
2m to Feb | yoy % | yoy % CER |
FY15 | yoy % | yoy % CER |
| Sales | 50,793 | 25% | 27% | 21,861 | 22% | 24% | 139,851 | 27% | 31% |
| UK | 34,179 | 26% | 26% | 14,558 | 13% | 13% | 94,342 | 33% | 33% |
| ROE | 6,464 | 35% | 41% | 2,903 | 32% | 46% | 18,086 | 39% | 47% |
| ROW | 10,150 | 19% | 24% | 4,400 | 56% | 59% | 27,423 | 7% | 16% |
CER in this appendix for the year ended 28 February 2015 is calculated using exchange rates prevailing during the year ending 28 February 2015.
Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EAKNPAFSSEFF
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.