- Part 2: For the preceding part double click ID:nRSQ9164Fa
10 control is determined by:
· Power over the investee.
· Exposure, or rights, to variable returns from its involvement with the
investee.
· The ability to use its power over the investee to affect the amount of
the investor's returns.
Although 50% owned, Multi-Lines have their own independent management who
operate without direct oversight of Group management on a day to day basis.
Therefore the level of power over the business is considered to be more in
keeping with that of an associate than a joint-venture, and hence it has been
treated as such within these consolidated accounts.
Intangible brand assets
Due to acquisitions in prior years the Group carries intangible brand assets
with indefinite lives.
The indefinite life is considered to remain appropriate because of several
factors, chief amongst which was that the growth potential of the B&M and
Jawoll businesses, which are considered by management to be long-term
phenomenon.
Put/call options on Jawoll non-controlling interest
The purchase agreement for Jawoll in April 2014 included call and put options
over the shares not purchased by the Group, representing 20% of Jawoll. The
options are arranged such that it is considered likely that either the call or
put option will be taken at the exercise date in 2019.
The exercise price of the options contain a variable element and as such the
risk and rewards of the options are considered to remain with the
non-controlling interest. The purchase of the non-controlling interest will be
recognised upon exercise of one of the options.
A financial liability has been recognised carried at amortised cost to
represent the expected exercise price, with the corresponding debit entry to
the put/call option reserve. Management have estimated the future measurement
inputs in arriving at this value, using knowledge of current performance,
expected growth and planned strategy. Any subsequent movements in the
liability will be recognised in profit or loss.
Standards and interpretations not yet applied by the Group
New and amended standards and interpretations adopted by the Group;
· IFRIC 21, "Levies", sets out the accounting for an obligation to pay a
levy if that liability is within the scope of IAS 37, "Provisions". The
interpretation addresses what the obligating event is that gives rise to pay a
levy and when a liability should be recognised. The adoption of IFRIC 21 does
not have a significant impact for the Group.
· Annual improvements 2011-2013. The amendments include changes from the
2011-13 cycle of the annual improvements project that affects four standards:
IFRS 1, "First time adoption", IFRS 3 "Business combination", IFRS 13, "Fair
value measurement" and IAS 40, "Investment property". The application of these
amendments had no significant impact for the Group.
· Annual improvements 2010-2012. These amendments include changes from the
2010-12 cycle of the annual improvements project, that affect several
standards: IFRS 2, "Share-based payment",
· IFRS 3, "Business Combinations", IFRS 8, "Operating segments", IFRS 13,
"Fair value measurement", IAS 16, "Property, plant and equipment", IAS 38,
"Intangible assets", IAS 37, "Provisions, contingent liabilities and
contingent assets", and IAS 39, "Financial instruments - Recognition and
measurement". The application of these amendments had no significant impact
for the Group.
· IAS 19 revised, "Defined Benefit Plans: Employee Contributions" -
effective for annual periods beginning on or after 1 July 2014. The
application of this amendment had no impact for the Group.
Standards and amendments to existing standards that are not yet effective and
have not been early adopted by the Group:
The following new standards and amendments have been published but are not
effective for the Group's accounting period beginning on 1 April 2015. All
these standards and amendments have not yet been endorsed by the European
Union.
· "Disclosure Initiative (Amendments to IAS 1)" - effective from 1 January
2016 to encourage companies to apply professional judgement in determining the
information to disclose in their financial statements36;
· Amendments to IAS 16, "Property, plant and equipment" and IAS 38,
"Intangible assets" on depreciation and amortisation - effective from 1
January 2016. IASB has clarified that the use of revenue-based methods to
calculate the depreciation of an asset is not appropriate because revenue
generated by an activity that includes the use of an asset generally reflects
factors other than the consumption of the economic benefits embodied in the
asset. The IASB has also clarified that revenue is generally presumed to be an
inappropriate basis for measuring the consumption of the economic benefits
embodied in an intangible asset. However, past the headline is a rebuttable
presumption, and revenue-based amortisation is permitted when it can be
demonstrated that revenue and the consumption of the economic benefits of the
intangible asset are highly correlated;
· Amendment to IAS 27, "Separate financial statements", on equity method
on separate financial statements - effective from 1 January 2016;
· Amendment to IFRS 10, "Consolidated financial statements", IFRS 12
"Disclosure of interests in other entities" and IAS 28, "Associates and joint
ventures" on sale or contribution of assets and on investment entities
applying the consolidation exception - effective from 1 January 2016;
· Amendment to IFRS 11, "Joint arrangements" on acquisition of an interest
in a joint operation - effective from 1 January 2016;
· Annual improvements 2012-2014 - effective from 1 January 2016
· IFRS 9, "Financial instruments" - effective from 1 January 2018. The
IASB has published the complete version of IFRS 9 which replaces IAS 39. This
final version includes requirements on the classification and measurement of
financial assets and liabilities; it also includes an expected credit losses
model that replaces the incurred loss impairment model used today and redefine
the guidance regarding the hedge accounting;
· IFRS 14, "Regulatory deferral accounts" - effective from 1 January
2016;
· IFRS 15, "Revenue from contracts with customers" applies to all
contracts with customers except those that are financial instruments, leases
or insurance contracts and introduces a five-step process that the Group will
have to follow. The new Standard goes beyond just "commercial effect", "fair
value" and "risk and rewards" and will also result in a significant increase
in the volume of disclosures related to revenue. IFRS 15 will be applicable
for reporting periods beginning on or after 1 January 2018.
2 Segmental information
IFRS 8 ("Operating segments") requires the Group's segments to be identified
on the basis of internal reports about the components of the Group that are
regularly reviewed by the chief operating decision maker to assess performance
and allocate resources across each reporting segment.
For management purposes, the Group is organised into two reportable segments,
being the UK retail segment and the German retail segment (since acquisition
of Jawoll on April 30 2014).
The chief operating decision maker has been identified as the executive
directors who monitor the operating results of the retail segments for the
purpose of making decisions about resource allocation and performance
assessment.
The Group's financing (including finance costs and finance income) and income
taxes are managed on a group basis, though the standard rate of tax has been
applied to the segmental results to aid comparison.
26 week period to 26 September 2015 UK Retail Germany Retail Corporate Total
£'000 £'000 £'000 £'000
Revenue 861,731 68,588 - 930,319
Gross profit 295,492 25,081 - 320,573
EBITDA 75,038 7,272 5,004 87,314
Interest received 107 - 120 227
Interest expense (8) (73) (11,261) (11,342)
Income tax expense (13,399) (1,764) 1,215 (13,948)
Segment profit/(loss) 53,597 3,545 (4,356) 52,786
Total assets 1,367,577 94,373 10,911 1,472,861
Total liabilities (219,656) (15,415) (485,080) (720,151)
Other disclosures:
Capital expenditure (including intangible) (30,271) (1,914) (15) (32,200)
Depreciation and Amortisation (8,141) (1,321) (3) (9,465)
Share of profit of associates - - - -
Investment in associates accounted for by the equity method - - 3,822 3,822
26 week period to 27 September 2014 UK Retail Germany Retail Corporate Total
£'000 £'000 £'000 £'000
Revenue 680,952 58,810 - 739,762
Gross profit 234,232 22,185 - 256,417
EBITDA 68,235 6,984 (26,260) 48,959
Interest received 9 5 - 14
Interest expense (88) (84) (58,053) (58,225)
Income tax expense (13,070) (1,686) 11,266 (3,490)
Segment profit/(loss) 49,170 3,934 (73,049) (19,945)
Total assets 1,221,262 95,632 8,499 1,325,393
Total liabilities (150,790) (18,759) (478,447) (647,996)
Other disclosures:
Capital expenditure (including intangible) (12,033) (544) - (12,577)
Depreciation and Amortisation (5,915) (1,286) (2) (7,203)
Share of profit of associates - - 115 115
Investment in associates accounted for by the equity method - - 2,208 2,208
52 week period to 28 March 2015 UK Retail Germany Retail Corporate Total
£'000 £'000 £'000 £'000
Revenue 1,526,181 120,643 - 1,646,824
Gross profit 525,497 44,411 - 569,908
EBITDA 163,166 10,659 (23,660) 150,165
Interest received 80 19 - 99
Interest expense (112) (181) (72,582) (72,875)
Income tax expense (31,558) (2,305) 12,011 (21,852)
Segment profit/(loss) 118,717 5,379 (84,233) 39,863
Total assets 1,312,280 92,981 5,546 1,410,807
Total liabilities (187,665) (19,763) (479,550) (686,978)
Other disclosures:
Capital expenditure (including intangible) (34,246) (1,669) - (35,915)
Depreciation and Amortisation (12,859) (2,813) (2) (15,674)
Share of profit of associates - - 1,632 1,632
Investment in associates accounted for by the equity method - - 3,822 3,822
3 Reconciliation of EBITDA to the statement of comprehensive income
EBITDA and adjusted EBITDA are non-IFRS measures and therefore we provide a
reconciliation to the statement of comprehensive income below.
The adjusting items that are used in the calculation of adjusted EBITDA have
been specified in greater detail (as those items adjusting administrative
costs) in note 4.
Period to 26 weeks ended 26 September 2015 26 weeks ended 27 September 2014 52 weeks ended 28 March 2015
£'000 £'000 £'000
Profit/(loss) for the period 52,786 (19,945) 39,863
Add back
Tax expense 13,948 3,490 21,852
Finance costs 11,342 58,225 72,875
Finance income (227) (14) (99)
Depreciation 9,083 6,766 14,847
Amortisation 382 437 827
EBITDA 87,314 48,959 150,165
Adjusting items (see note 4) (742) 24,015 24,103
Adjusted EBITDA 86,572 72,974 174,268
Adjusted EBITDA and related measures are not a measurement of performance or
liquidity under IFRS and should not be considered in isolation or as a
substitute for measures of profit, or as an indicator of the Group's operating
performance or cash flows from operating activities as determined in
accordance with IFRS.
4 Adjusted profit and loss statement
Period to 26 weeks ended 26 September 2015 26 weeks ended 27 September 2014 52 weeks ended 28 March 2015
£'000 £'000 £'000
Revenue 930,319 739,762 1,646,824
Cost of Sales (609,746) (483,345) (1,076,916)
Gross Profit 320,573 256,417 569,908
Administrative expenses (243,466) (190,761) (412,946)
Add back depreciation and amortisation 9,465 7,203 15,674
Share of profits of investments in associates - 115 1,632
Adjusted EBITDA 86,572 72,974 174,268
Depreciation and amortisation (9,465) (7,203) (15,674)
Adjusted profit before interest and tax 77,107 65,771 158,594
Finance costs (10,773) (12,813) (23,702)
Finance income 107 14 99
Adjusted profit before tax 66,441 52,972 134,991
Income tax expense (13,794) (12,037) (30,916)
Adjusted profit and total comprehensive income 52,647 40,935 104,075
Attributable to non-controlling interests 860 783 1,241
Attributable to owners of the parent 51,787 40,152 102,834
The following table shows the detailed listing of adjusting items:
Period to 26 weeks ended 26 September 2015 26 weeks ended 27 September 2014 52 weeks ended 28 March 2015
£'000 £'000 £'000
Adjustments to administrative expenses
Fees related to the IPO - (20,338) (19,709)
Fees related to the acquisition of the German entities - (842) (827)
Fair value adjustments to foreign exchange and fuel derivatives 5,568 3,253 2,270
Professional fees associated with the prior financing structure - (970) (970)
New store pre-opening costs (4,497) (1,981) (5,272)
Foreign exchange movements on intercompany balances (83) (3,460) (2,840)
Property provision and compulsory purchase order income (132) (207) 3,148
Other items which management considered one off in nature (114) 530 97
Total adjustments to administrative expenses 742 (24,015) (24,103)
Adjustments to finance costs and income
Interest on loans from owners - (16,170) (16,170)
One off costs incurred on raising debt finance - (28,815) (28,815)
Fair value adjustments on interest swap derivatives 120 (427) (2,214)
Unwinding of the option held over the minority interest of Jawoll (569) - (1,974)
Total adjustments to finance costs and income (449) (45,412) (49,173)
Adjustments to income tax
Adjustments relating to items adjusting administrative costs (130) 609 557
Adjustments relating to items adjusting finance costs and income (24) 7,938 8,507
Total adjustments to income tax (154) 8,547 9,064
Other comprehensive income
Differences relating to retranslation of Group entities 981 160 (4,236)
Change in the defined benefit pension liability - - (35)
Tax adjustment relating to the pension liability - - 11
Total adjustments to other comprehensive income 981 160 (4,260)
Adjusting items are exceptional and non-trading items considered by the
directors to not be incurred in the usual underlying running of the trade of
the Group. The directors consider the adjusted figures to be a more accurate
reflection of the underlying business performance of the Group and believe
that this measure provides additional useful information for investors on the
Group's performance, as well as being consistent with how business performance
is monitored internally.
Adjusting items include expenses relating to new acquisitions, special
projects and restructuring expenses (such as IPO, refinancing, maintaining
ownership structures), pre-opening new store costs, provisions for onerous
leases, regulatory investigations or fines, dilapidation provisions,
compulsory purchase order income, foreign exchange gains/(losses), fair value
gains/(losses) on derivatives, other comprehensive income items, unwinding
interest on items not directly related to the trade of the business,
impairment on non-financial assets, profit/(loss) on fixed assets disposal,
the expired management LTIP bonus scheme, and the estimated tax effect of
these items.
5 Earnings/(loss) per share
Basic earnings/(loss) per share amounts are calculated by dividing the net
profit or loss for the financial period attributable to ordinary equity
holders of the parent by the weighted average number of ordinary shares
outstanding at each period end.
Diluted earnings/(loss) per share amounts are calculated by dividing the net
profit attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares outstanding during each year plus the
weighted average number of ordinary shares that would be issued on conversion
of any dilutive potential ordinary shares into ordinary shares. The employee
share option scheme is considered to be dilutive.
Adjusted basic and diluted earnings/(loss) per share are calculated on the
same basis except using the adjusted profit or loss attributable to the
equity holders of the parent.
The following reflects the income and share data used in the basic and diluted
loss per share computations:
Period to 26 September 2015 27 September 2014 28 March 2015
£'000 £'000 £'000
Profit/(loss) for the period attributable to ordinary equity holders of the Group 51,963 (20,732) 38,640
Adjusted profit/(loss) for the period attributable to ordinary equity holders of the Group 51,787 40,152 102,834
Thousands Thousands Thousands
Weighted average number of ordinary shares for basic loss per share 1,000,000 1,000,000 1,000,000
Effect of dilution:
Employee share options 479 513 521
Weighted average number of ordinary shares adjusted for the effect of dilution 1,000,479 1,000,513 1,000,521
Pence Pence Pence
Basic earnings/(loss) per share 5.2 (2.1) 3.9
Diluted earnings/(loss) per share 5.2 (2.1) 3.9
Adjusted basic earnings per share 5.2 4.0 10.3
Adjusted diluted earnings per share 5.2 4.0 10.3
6 Taxation
The taxation charge for the interim period has been calculated on the basis of
the corporation tax rate for the full year of 20% (UK) and 30% (Germany) and
then adjusted for allowances and non-deductibles in line with the prior year.
7 Intangible assets
Goodwill Software Brands Other Total
£'000 £'000 £'000 £'000 £'000
Cost or valuation
At 29 March 2014 807,496 811 93,700 - 902,007
Acquired via purchase of Jawoll 31,043 357 4,548 1,775 37,723
Additions - 63 - - 63
Effect of retranslation (1,598) (18) (235) (91) (1,943)
At 27 September 2014 836,941 1,213 98,013 1,683 937,850
Final Jawoll PPA adjustments 215 - 353 (353) 215
Additions - 185 - - 185
Effect of retranslation (1,898) (26) (313) (67) (2,304)
At 28 March 2015 835,258 1,372 98,053 1,263 935,946
Additions - 1,145 - - 1,145
Effect of retranslation 379 4 59 17 459
At 26 September 2015 835,637 2,521 98,112 1,280 937,550
Accumulated amortisation / impairment
At 29 March 2014 - 204 - - 204
Charge for the period - 199 - 238 437
Effect of retranslation - (2) - (6) (8)
At 27 September 2014 - 402 - 231 633
Charge for the period - 192 - 198 390
Effect of retranslation - (8) - (22) (30)
At 28 March 2015 - 586 - 407 993
Charge for the period - 211 - 171 382
Effect of retranslation - 3 - 11 14
At 26 September 2015 - 800 - 589 1,389
Net book value at 26 September 2015 835,637 1,721 98,112 691 936,161
Net book value at 28 March 2015 835,258 786 98,053 856 934,953
Net book value at 27 September 2014 836,941 811 98,013 1,452 937,217
An impairment review was carried out over the Goodwill and Brand assets at 28
March 2015. Details of these reviews are included in the Group statutory
accounts. A full review will also take place at the next year end date of 27
March 2016.
8 Property, plant and equipment
Land and buildings Motor Vehicles Plant, fixtures and equipment Total
£'000 £'000 £'000 £'000
Cost or valuation
29 March 2014 9,537 2,288 62,383 74,208
Arising on acquisition of Jawoll 15,929 189 4,688 20,806
Additions 1,326 548 10,640 12,514
Disposals - (183) - (183)
Effect of retranslation (838) (10) (244) (1,092)
27 September 2014 25,954 2,832 77,467 106,253
Final Jawoll PPA Adjustment 149 - - 149
Additions 4,267 371 18,515 23,153
Disposals (2,157) (298) (395) (2,850)
Effect of retranslation (961) (26) (345) (1,332)
Adjustment (38) 344 203 509
28 March 2015 27,214 3,223 95,445 125,882
Additions 3,367 237 27,451 31,055
Disposals - (329) (51) (380)
Effect of retranslation 219 5 100 324
26 September 2015 30,800 3,136 122,945 156,881
Accumulated depreciation
29 March 2014 2,055 407 6,750 9,212
Charge for the period 1,376 409 4,981 6,766
Disposals - (42) - (42)
Effect of retranslation (15) (2) (15) (32)
27 September 2014 3,416 772 11,716 15,904
Charge for the period 1,612 424 6,045 8,081
Disposals (4) (160) (162) (326)
Effect of retranslation (54) (3) (54) (111)
Adjustment (38) 344 205 511
At 28 March 2015 4,932 1,377 17,750 24,059
Charge for the period 1,636 358 7,089 9,083
Disposals - (170) (35) (205)
Effect of retranslation 28 1 28 57
26 September 2015 6,596 1,566 24,832 32,994
Net book value at 26 September 2015 24,204 1,570 98,113 123,887
Net book value at 28 March 2015 22,282 1,846 77,696 101,823
Net book value at 27 September 2014 22,538 2,060 65,751 90,349
On the acquisition of the SBR Europe group on 6 March 2013, the fixed assets
were restated such that their net book value equalled their cost. At 29 March
2014 an estimation technique was used to perform this task due to the number
of assets on the fixed asset register. At 28 March 2015 the values have been
calculated on an asset by asset basis leading to some adjustments between cost
and depreciation as shown in the table above. This has no impact on net book
value.
9 Share Capital
26 September2015 27 September2014 28 March2015
Allotted, called up and fully paid £'000 £'000 £'000
B&M European Value Retail S.A.
1,000,000,000 ordinary shares of 10p each 100,000 100,000 100,000
Ordinary Shares
Each ordinary share ranks pari passu with each other ordinary share and each
share carries one vote. The Group parent is authorised to release up to a
maximum of 2,972,222,222 ordinary shares.
10 Financial liabilities - borrowings
26 September 2015 27 September 2014 28 March 2015
£'000 £'000 £'000
Current
Term facility bank loans - - -
- - -
Non-current
Term facility bank loans 434,450 433,289 433,758
All borrowings are held in Sterling. The term facility bank loans are held at
amortised cost and were initially capitalised in June 2014 with £7.3m of fees
attributed to them.
The maturities of the above loan facilities are as follows:
InterestRate Maturity At 27 September 2015, 26 September 2014 and 28 March 2015
% £'000
Non-Current
UK Holdco term loan A 3.25% + LIBOR 2019 300,000
UK Holdco term loan B 3.75% + LIBOR 2020 140,000
440,000
11 Reconciliation of loss before tax to cash generated from
operations
26 weeks ended 26 September 2015 26 weeks ended 27 September 2014 52 weeks ended 28 March 2015
£'000 £'000 £'000
Profit/(loss) before tax 66,734 (16,455) 61,715
Adjustments for:
Interest expense 11,115 58,210 72,776
Depreciation 9,083 6,766 14,847
Amortisation of intangible assets 382 437 827
Transaction fees through administrative expenses - 21,180 20,536
(Profit) / loss on disposal of property, plant and equipment 82 (25) (70)
Loss on share options 114 51 186
Change in inventories (63,527) (17,457) (39,192)
Change in trade and other receivables (1,550) (7,139) (15,399)
Change in trade and other payables 27,204 (2,039) 40,845
Change in provisions (51) 120 (1,863)
Share of profit from associates - (115) (1,632)
Non-cash foreign exchange effect from retranslation of subsidiary cashflows 109 2,853 1,574
(Profit) / loss resulting from fair value of financial derivatives (5,569) (3,252) (2,270)
Cash generated from operations 44,126 43,135 152,880
12 Fair Value
The fair value of the financial assets and liabilities of the group are not
materially different from their carrying value. Refer to the table below.
As at 28 March2015 27 September2014 28 March2015
Financial Assets £'000 £'000 £'000
Fair value through profit and loss
Interest rate swap - 1,393 -
Fuel price swap 127 - -
Forward foreign exchange contracts 6,400 1,804 1,145
Loans and receivables
Cash and cash equivalents 32,819 15,412 64,943
Trade receivables 42,538 36,218 45,963
Other receivables 1,821 3,385 1,018
Financial Liabilities
Fair value through profit and loss
Fuel price swap 137 - 322
Interest rate swap 274 - 395
Put/call options over the non-controlling interest of Jawoll 14,924 13,141 14,144
Amortised cost
Interest-bearing loans and borrowings 434,450 433,289 433,758
Trade payables 134,068 96,773 94,733
Financial Instruments at fair value through profit and loss
The put/call options over the non-controlling interest in Jawoll arose as part
of the acquisition of the entity in April 2014. The valuation here reflects
the final estimated valuation unwound to the period end date, and exchanged at
the period end foreign exchange rate, as the options are priced in Euros. The
options mature in 2019 and the carrying value has been discounted to present
value.
The other financial assets and liabilities through profit or loss reflect the
fair value of those foreign exchange forward contracts, interest rate swaps
and fuel swaps that are not designated as hedge relationships but are
nevertheless intended to reduce the level of risk for expected sales and
purchases.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair
value of financial instruments by valuation technique:
· Level 1 : quoted (unadjusted) prices in active markets for identical
assets or liabilities
· Level 2 : Other techniques for which all inputs which have a significant
effect on the recorded fair value are observable, either directly or
indirectly
· Level 3 : Techniques which use inputs that have a significant effect on
the recorded fair value that are not based on observable market data
As at the reporting dates, the Group held the following financial instruments
carried at fair value on the balance sheet:
Total Level 1 Level 2 Level 3
£'000 £'000 £'000 £'000
26 September 2015
Foreign exchange contracts - 6,400 -
Interest rate swaps - (274) -
Fuel swap contract (asset) - 127 -
Fuel swap contract (liability) - (137) -
Put/call options on Jawoll non-controlling interest - - (14,924)
28 March 2015
Foreign exchange contracts 1,145 - 1,145 -
Interest rate swaps (395) - (395) -
Fuel swap contract (322) - (322) -
Put/call options on Jawoll non-controlling interest (14,144) - - (14,144)
27 September 2014
Foreign exchange contracts 1,804 - 1,804 -
Interest rate swaps 1,393 - 1,393 -
Put/call options on Jawoll non-controlling interest (13,141) - - (13,141)
The put/call option was valued with reference to the Sale and Purchase
Agreement underpinning the acquisition, and the key variable in determining
the fair value of the option, the forecast EBITDA of Jawoll as prepared by
management.
The other instruments have been valued by the issuing bank, using a mark to
market method. The bank has used various inputs to compute the valuations and
these include inter alia the relevant maturity date and strike rates, the
current exchange rate, fuel prices and LIBOR levels.
The Group's financial instruments are either carried at fair value or have a
carrying value which is considered a reasonable approximation of fair value.
13 Related party transactions
There have been no changes in the related-party transactions described in the
last annual report of B&M European Value Retail S.A. that have had a material
effect on the financial position or performance of the Group in the six months
ended 26 September 2015.
The Group has entered into material related party transactions over the
current 26-week period with the following party, Multi-lines International
Company Ltd (Multi-lines), a supplier, which is an associate of the Group.
The following table shows the effect of the transactions on the profit and
loss. Prior period figures have been included to provide a comparative.
Related party transactions with the prior owner (and current significant
shareholder) Clayton, Dubilier & Rice, ceased in the prior year.
26 weeks ended 26 September 2015£'000 26 weeks ended27 September 2014£'000 52 weeks ended28 March2015£'000
Purchases from owners of the business
Clayton, Dubilier & Rice - 17,634 17,608
Purchases from associates
Multi-lines 30,764 18,141 67,216
The following table sets out the total amount of trading balances with
Multi-lines outstanding at the period end. The debtor balance is a deposit on
account and nets against a GRNI balance of £11.1m at 26 September 2015 (£17.9m
at 27 September 2014, £2.9m at 28 March 2014).
26 September 2015£'000 27 September 2014£'000 28 March 2015 £'000
Trade receivables from associates :
Multi-lines 28,047 25,289 18,784
Outstanding trade balances at the balance sheet date are unsecured and
interest free and settlement occurs in cash. There have been no guarantees
provided or received for any related party trade receivables or payables.
14 Post balance sheet events
An interim dividend of 1.6pence per share (£16,000,000) has been proposed.
There have been no other material events between the balance sheet date and
the date of issue of these accounts.
15 Directors
The directors that served throughout the period were:
Name
Sir T Leahy (Chairman)
S Arora (CEO)
P McDonald (CFO)
T Hübner
R McMillan
K Guion
H Brouwer
D Novak
Statement of Directors' Responsibilities
The Directors confirm that these condensed interim financial statements have
been prepared in accordance with International Accounting Standard 34,
'Interim financial reporting', as adopted by the European Union and that the
interim management report includes a fair review of the information required
by DTR 4.2.7R and DTR 4.2.8R, namely:
(a) an indication of important events that have occurred during the first 26
weeks and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining 26
weeks of the financial year; and
(b) material related-party transactions in the first 26 weeks and any material
changes in the related-party transactions described in the last annual report
of B&M European Value Retail S.A.
By order of the Board
Simon Arora Paul McDonald
Chief Executive Chief Financial Officer
17 November 2015 17 November 2015
Independent Review Report to B&M European Value Retail S.A.
Introduction
We have reviewed the accompanying interim financial information of B&M
European Value Retail S.A. as at 26 September 2015, which comprises the
condensed consolidated statement of financial position, the condensed
consolidated statement of comprehensive income, the condensed consolidated
statement of cash flows, the condensed consolidated statement of changes in
shareholders' equity and a summary of significant accounting policies and
other explanatory notes for the 26 week period then ended. The Board of
Directors is responsible for the preparation and fair presentation of this
interim financial information in accordance with International Financial
Reporting Standard as adopted by the European Union and with the Disclosure
and Transparency Rules of the United Kingdom's Financial Conduct Authority.
The interim financial information has been prepared in accordance with IAS 34,
''Interim Financial Reporting,'' as adopted by the European Union.
Our responsibility is to express a conclusion on this interim financial
information based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements 2410, "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity", as adopted for Luxembourg by the "Institut
des Réviseurs d'Entreprises". A review of interim financial information
consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying interim financial information is not prepared,
in all material respects, in accordance with IAS 34, "Interim Financial
Reporting" as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Luxembourg, 17 November 2015
Hugues WANGEN
Réviseur d'Entreprises Agréé
Grant Thornton Lux Audit S.A.
This information is provided by RNS
The company news service from the London Stock Exchange