REG - ASOS PLC - Final Results <Origin Href="QuoteRef">ASOS.L</Origin> - Part 2
18/10/2016 07:05
- Part 2: For the preceding part double click ID:nRSR7583Ma
- (43.1)
Net cash received on exercise of shares from EBT3 - - - 0.7 - - 0.7 - 0.7
Transfer of shares from EBT on exercise3 - - (0.3) 0.3 - - - - -
Share-based payments charge - - 5.0 - - - 5.0 - 5.0
Deferred tax on share options - - 0.5 - - - 0.5 - 0.5
Balance as at 31 August 2016 2.9 6.9 254.7 (2.6) (60.0) (1.5) 200.4 - 200.4
1 All numbers subject to rounding
2Retained earnings includes the share-based payments reserve
3Employee Benefit Trust and Capita Trust
Called up share capital Share premium Retained earnings2 Employee Benefit Trust reserve3 Hedging reserve Translation reserve Equity attributable to owners of the parent Non-controlling interest Total equity
£m1 £m1 £m1 £m1 £m1 £m1 £m1 £m1 £m1
At 1 September 2014 2.9 6.9 186.9 (5.3) 2.2 (0.2) 193.4 (0.4) 193.0
Profit for the year - - 36.8 - - - 36.8 - 36.8
Other comprehensive income/(loss) for the year - - - - 4.1 (0.1) 4.0 - 4.0
Total comprehensive income/(loss) for the year - - 36.8 - 4.1 (0.1) 40.8 - 40.8
Net cash received on exercise of shares from EBT3 - - - 0.9 - - 0.9 - 0.9
Transfer of shares from EBT on exercise3 - - (0.8) 0.8 - - - - -
Share-based payments charge - - 3.5 - - - 3.5 - 3.5
Acquisition of non-controlling interest in Covetique Ltd - - (0.4) - - - (0.4) 0.4 -
Deferred tax on share options - - (1.3) - - - (1.3) - (1.3)
Current tax on items taken directly to equity - - 0.4 - - - 0.4 - 0.4
Balance as at 31 August 2015 2.9 6.9 225.1 (3.6) 6.3 (0.3) 237.3 - 237.3
1 All numbers subject to rounding
2Retained earnings includes the share-based payments reserve
3Employee Benefit Trust and Capita Trust
Consolidated Statement of Financial PositioN
At 31 August 2016
At31 August 2016 At 31 August 2015
£m1 £m1
Non-current assets
Goodwill 1.1 1.1
Other intangible assets 112.4 75.1
Property, plant and equipment 77.2 64.4
Derivative financial assets - 0.2
Deferred tax asset 13.3 -
204.0 140.8
Current assets
Inventories 257.7 193.8
Trade and other receivables 15.0 18.0
Derivative financial assets - 6.1
Cash and cash equivalents 173.3 119.2
446.0 337.1
Current liabilities
Trade and other payables (370.7) (232.5)
Derivative financial liabilities (55.0) -
Current tax liability (2.9) (3.6)
Deferred tax liability - (1.2)
(428.6) (237.3)
Net current assets 17.4 99.8
Non-current liabilities
Derivative financial liabilities (21.0) -
Deferred tax liability - (3.3)
(21.0) (3.3)
Net assets 200.4 237.3
Equity attributable to owners of the parent
Called up share capital 2.9 2.9
Share premium 6.9 6.9
Employee Benefit Trust reserve (2.6) (3.6)
Hedging reserve (60.0) 6.3
Translation reserve (1.5) (0.3)
Retained earnings 254.7 225.1
Total equity 200.4 237.3
1 All numbers subject to rounding
Consolidated Statement of Cash Flows
For the year to 31 August 2016
Year to 31 August 2016 Year to 31 August 2015
£m1 £m1
Operating profit from continuing operations 42.1 52.4
Loss before tax from discontinued operations (10.1) (5.2)
Operating profit 32.0 47.2
Adjusted for:
Depreciation of property, plant and equipment 10.5 8.3
Amortisation of other intangible assets 21.2 14.8
Loss on disposal of non-current assets from continuing operations 0.8 4.9
Loss on disposal of non-current assets from discontinued operations 4.3 -
Increase in inventories (63.8) (32.1)
Decrease in trade and other receivables 4.2 2.3
Increase in trade and other payables 128.7 47.6
Share-based payments charge 4.5 2.2
Other non-cash items (1.7) 0.8
Income tax paid (10.0) (2.8)
Net cash generated from operating activities 130.7 93.2
Investing activities
Payments to acquire other intangible assets (55.7) (32.5)
Payments to acquire property, plant and equipment (23.5) (17.9)
Finance income 0.8 0.3
Net cash used in investing activities (78.4) (50.1)
Financing activities
Net cash inflow relating to EBT2 0.7 0.9
Finance expense (0.1) (0.1)
Net cash generated in financing activities 0.6 0.8
Net increase in cash and cash equivalents 52.9 43.9
Opening cash and cash equivalents 119.2 74.3
Effect of exchange rates on cash and cash equivalents 1.2 1.0
Closing cash and cash equivalents 173.3 119.2
1 All numbers subject to rounding
2Employee Benefit Trust and Capita Trust
Notes to the financial information
For the year to 31 August 2016
1. Preparation of the consolidated financial information
a) General information
ASOS Plc ('the Company') and its subsidiaries (together, 'the Group') is a
global fashion retailer. The Group sells products across the world and has
websites targeting the UK, US, Australia, France, Germany, Spain, Italy and
Russia. The Company is a public limited company which is listed on the
Alternative Investment Market (AIM) and is incorporated and domiciled in the
UK. The address of its registered office is Greater London House, Hampstead
Road, London NW1 7FB.
b) Basis of preparation
The condensed consolidated financial information for the year to 31 August
2016 has been prepared in accordance with the recognition and measurement
criteria of International Financial Reporting Standards ("IFRS") as adopted
for use in the European Union and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS. The accounting policies applied
are consistent with those set out in the ASOS Plc Annual Report and Accounts
for the year to 31 August 2015.
The financial information contained within this preliminary announcement for
the years to 31 August 2016 and 31 August 2015 does not comprise statutory
financial statements within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year to 31 August 2015 have been filed with
the Registrar of Companies and those for the year to 31 August 2016 will be
filed following the Company's annual general meeting. The auditors' report on
the statutory accounts for each of the years to 31 August 2016 and 31 August
2015 is unqualified, does not draw attention to any matters by way of
emphasis, and does not contain any statement under section 498 of the
Companies Act 2006.
Going concern and viability
The Directors have reviewed current performance and cash flow forecasts, and
are satisfied that the Group's forecasts and projections, taking account of
potential changes in trading performance, show that the Group will be able to
operate within the level of its current facilities for the foreseeable future.
The Directors have therefore continued to adopt the going concern basis in
preparing the Group's financial statements.
The Directors have also assessed the Group's prospects and viability over a
three-year period to 31 August 2019. This three-year assessment period was
selected as it corresponds with the Board's strategic planning horizon as well
as the time period over which senior management are remunerated via long-term
incentive plans.
In making this assessment, the Directors took account of the Group's current
financial position, annual budget, three-year plan forecasts and sensitivity
testing. The Board also considered a number of other factors, including the
Group business model, its strategy, risks and uncertainties and internal
control effectiveness. Whilst the principal risks and uncertainties could
impact future performance, none of them are considered likely, individually or
collectively, to affect the viability of the business during the three-year
assessment period. The Group is operationally strong with a robust balance
sheet and cash position, and has a track record of delivering profitable and
sustainable growth, which is expected to continue.
Based on this assessment, the Directors have a reasonable expectation that the
Group will continue in operation and meet all its liabilities as they fall due
during the period up to 31 August 2019.
Changes to accounting standards
Various new accounting standards and amendments were issued during the year,
none of which have had an impact in the current year. The impact of new
standards which are not yet effective are currently under review by the
Group.
2. Segmental analysis
IFRS 8 'Operating Segments' requires operating segments to be determined based
on the Group's internal reporting to the Chief Operating Decision Maker. The
Chief Operating Decision Maker has been determined to be the Executive Board
who receive information on the basis of the Group's operations in key
geographical territories, based on the Group's management and internal
reporting structure. The Executive Board assesses the performance of each
segment based on revenue and gross profit after distribution expenses, which
excludes administrative expenses.
Year to 31 August 2016
UK US EU RoW Total
£m1 £m1 £m1 £m1 £m1
Retail sales 603.8 179.2 374.9 245.8 1,403.7
Delivery receipts 15.3 5.5 7.3 6.4 34.5
Third party revenues 6.4 0.1 0.1 0.1 6.7
Internal revenues - - - 3.0 3.0
Total segmental revenue 625.5 184.8 382.3 255.3 1,447.9
Eliminations - - - (3.0) (3.0)
Total revenues 625.5 184.8 382.3 252.3 1,444.9
Cost of sales (331.0) (72.9) (202.5) (116.3) (722.7)
Gross profit 294.5 111.9 179.8 136.0 722.2
Distribution expenses (72.8) (46.8) (54.2) (42.2) (216.0)
Segment result 221.7 65.1 125.6 93.8 506.2
Administrative expenses (443.2)
Exceptional items (Note 3) (20.9)
Operating profit from continuing operations 42.1
Finance income 0.7
Profit before tax from continuing operations 42.8
Loss before tax from discontinued operations (10.1)
Profit before tax 32.7
Year to 31 August 2015
UK US EU RoW Total
£m1 £m1 £m1 £m1 £m1
Retail sales 473.9 119.5 294.0 224.8 1,112.2
Delivery receipts 11.5 3.7 5.1 5.3 25.6
Third party revenues 4.4 0.8 - - 5.2
Internal revenues - - 0.3 3.1 3.4
Total segment revenue 489.8 124.0 299.4 233.2 1,146.4
Eliminations - - (0.3) (3.1) (3.4)
Total revenue 489.8 124.0 299.1 230.1 1,143.0
Cost of sales (260.7) (49.3) (151.8) (108.1) (569.9)
Gross profit 229.1 74.7 147.3 122.0 573.1
Distribution expenses (52.8) (38.4) (40.8) (36.2) (168.2)
Segment result 176.3 36.3 106.5 85.8 404.9
Administrative expenses (358.8)
Exceptional items (Note 3) 6.3
Operating profit from continuing operations 52.4
Finance income 0.3
Profit before tax from continuing operations 52.7
Loss before tax from discontinued operations (5.2)
Profit before tax 47.5
Due to the nature of its activities, the Group is not reliant on any
individual major customers. No analysis of the assets and liabilities of each
operating segment is provided to the Chief Operating Decision Maker in the
monthly management accounts. Therefore no measure of segments assets or
liabilities is disclosed in this note. There are no material non-current
assets located outside the UK.
1 All numbers subject to rounding and exclude results from the discontinued
operations in China unless otherwise stated
3. Exceptional items
Year to 31 August 2016 Year to 31 August 2015
£m1 £m1
Legal settlement 20.9 -
Business interruption reimbursements - 6.3
Exceptional items 20.9 6.3
1 All numbers subject to rounding
In September 2016, the Group settled its trademark infringement disputes with
high-performance cycle wear manufacturer Assos of Switzerland GmbH, and German
menswear retailer Anson's Herrenhaus KG. This resulted in a one-off
exceptional legal settlement cost of £20.9m (including associated legal fees)
representing full, final and global settlement of all outstanding litigation.
In the comparative period to 31 August 2015, we received final business
interruption insurance reimbursements of £6.3m as a result of a fire in our
Barnsley warehouse in June 2014.
Exceptional items in respect of discontinued operations are detailed in Note
4.
4. Discontinued operations
The Group discontinued its in-country China operation which incurred an
operating loss before tax of £3.6m up to the point of closure in May 2016
(2015: £5.2m) and one-off exceptional closure costs before tax of £6.5m, of
which £4.4m was non-
cash.
Year to 31 August 2016 Year to 31 August 2015
£m1 £m1
Revenue 6.3 7.8
Expenses (9.9) (13.0)
Operating loss before exceptional items (3.6) (5.2)
Exceptional items (6.5) -
Loss before tax from discontinued operations (10.1) (5.2)
Taxation from discontinued operations (0.2) 1.0
Loss for the year from discontinued operations (10.3) (4.2)
Basic loss per share from discontinued operations (12.4p) (5.0p)
Diluted loss per share from discontinued operations (12.4p) (5.0p)
Cash flows from discontinued operations
Operating cash flows (4.0) (5.2)
Investing cash flows (0.3) (0.3)
Financing cash flows - 3.5
Total cash flows (4.3) (2.0)
1 All numbers subject to rounding
5. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
the owners of the parent company by the weighted average number of ordinary
shares in issue during the year. Own shares held by the Employee Benefit Trust
and Capita Trust are eliminated from the weighted average number of ordinary
shares.
Diluted earnings per share is calculated by dividing the profit attributable
to the owners of the parent company by the weighted average number of ordinary
shares in issue during the period, adjusted for the effects of potentially
dilutive share options.
Year to 31 August 2016 Year to 31 August 2015
No. of shares No. of shares
Weighted average share capital
Weighted average shares in issue for basic earnings per share 82,972,285 82,963,517
Weighted average effect of dilutive options 224,372 70,742
Weighted average shares in issue for diluted earnings per share 83,196,657 83,034,259
Year to 31 August 2016 Year to 31 August 2015
£m1 £m1
Earnings
Earnings attributable to owners of the parent 24.4 36.8
Year to 31 August 2016 Year to 31 August 2015
Pence1 Pence1
Earnings per share from continuing operations before exceptional items
Basic earnings per share 61.9 43.4
Diluted earnings per share 61.8 43.4
(Loss)/Earnings per share from exceptional items
Basic adjusted (loss)/earnings per share (20.1) 6.0
Diluted adjusted (loss)/earnings per share (20.1) 6.0
Loss per share from discontinued operations
Basic loss per share (12.4) (5.0)
Diluted loss per share (12.4) (5.0)
Earnings per share
Basic earnings per share 29.4 44.4
Diluted earnings per share 29.3 44.4
1 All numbers subject to rounding
6. Reconciliation of cash and cash equivalents
Year to 31 August 2016 Year to 31 August 2015
£m1 £m1
Net movement in cash and cash equivalents 52.9 43.9
Opening cash and cash equivalents 119.2 74.3
Effect of exchange rates on cash and cash equivalents 1.2 1.0
Closing cash and cash equivalents 173.3 119.2
1 All numbers subject to rounding
The Group has in place a £20.0m revolving loan credit facility including an
ancillary £10.0m guaranteed overdraft facility available until October 2018,
none of which has been drawn down at the year end.
7. Contingent Liabilities
From time to time, the Group is subject to various legal proceedings and
claims that arise in the ordinary course of business which, due to the
fast-growing nature of the Group and its ecommerce base, may concern the
Group's brand and trading name or its product designs. 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 which
can be reliably measured.
On 2 September 2016, ASOS reached a full and final global settlement of £20.2m
for the trademark infringement disputes brought against it by Assos of
Switzerland (a high-performance cycle-wear brand), and Anson's Herrenhaus (a
German menswear retailer) which has been presented, along with associated
legal fees of £0.7m, as an exceptional item in the financial statements. At 31
August 2016, there were no other pending claims or proceedings against the
Group which were expected to have a material adverse effect on its liquidity
or operations.
At 31 August 2016, the Group had contingent liabilities of £7.3m (2015: £3.6m)
in relation to supplier standby letters of credit, rent deposit deeds and
other bank guarantees. The likelihood of cash outflow in relation to these
contingent liabilities is considered to be low.
8. Subsequent Events
In September 2016, the Group settled its trademark infringement disputes with
high-performance cycle wear manufacturer Assos of Switzerland GmbH, and German
menswear retailer Anson's Herrenhaus KG. This resulted in a one-off
exceptional legal settlement cost of £20.9m (including associated legal fees)
representing full, final and global settlement of all outstanding litigation
being recognised during the year to 31 August 2016. This will be paid in the
new financial year.
This information is provided by RNS
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