REG - boohoo.com plc - FY14 Preliminary Results and Q1 Trading Update <Origin Href="QuoteRef">BOOH.L</Origin> - Part 2
06/09/2014 02:14
- Part 2: For the preceding part double click ID:nRSL4208Ja
109,791 67,282
1. The geographic split of revenue in 2013 has been restated in respect of
certain countries in rest of Europe that were previously in rest of world and
for a more accurate regional allocation of returns provisions.
3 Other income
2014 2013
£000 £000
Gift to group from director for benefit of employees 450 -
Waiver of loan from director in ABK Limited 38 -
488 -
4 Finance costs
2014 2013
£000 £000
Bank interest 84 102
5 Auditors' remuneration
2014 2013
£000 £000
Audit of these financial statements
Disclosure below based on amounts receivable in respect of services to the group
Amounts receivable by auditors and their associates in respect of:
Audit of financial statements of subsidiaries pursuant to legislation 45 30
Other services relating to taxation - 3
Transaction services fees 255 -
300 33
6 Profit before tax
Profit before tax is stated after charging 2014 2013
£000 £000
Hire of plant and machinery - 24
Operating lease rentals for buildings 401 -
Depreciation 643 414
Amortisation 336 154
Exceptional items - capital re-organisation fees 375 -
7 Staff numbers and costs
The average monthly number of persons employed by the group (including
directors) during the year, analysed by category, was as follows:
Number of employees
2014 2013
Administration 252 121
Selling and distribution 142 89
394 210
The aggregate payroll costs of these persons were as follows:
2014 2013
£000 £000
Wages and salaries 9,144 4,594
Social security costs 849 426
9,993 5,020
8 Directors' remuneration
2014 2013
£000 £000
Directors' emoluments
Wages and salariesOther pension costs 38628 23926
414 265
The aggregate of emoluments of the highest paid director was £225,292
(2013:£127,528). The contributions to a money purchase pension scheme in
respect of the highest paid director were £7,704 (2013: £18,972). The number
of directors contributing to a money purchase pension scheme was 2 (2013: 1).
9 Taxation
2014 2013
£000 £000
Analysis of charge in year
UK corporation tax
Current tax on income for the year 2,352 647
Adjustments in respect of prior year taxes (42) -
Deferred taxation - depreciation in excess of capital allowances - (33)
Tax on profit on ordinary activities 2,310 614
The total tax charge differs from the amount computed by applying the UK rate of 23.1% (2013: 24.2%) to profit before tax as a result of the following:
Profit on ordinary activities before tax 10,737 3,184
Profit before tax multiplied by the standard rate of corporation tax on the UK of 23.1% (2013: 24.2%)
2,478 770
Effects of:
Expenses not deductible for tax purposes - property, plant and equipment - 19
(Income not subject to)/expenses not deductible for tax purposes (32) 35
Adjustments in respect of prior year taxes (42) -
R&D tax credits (114) -
Change in tax rate - 3
Depreciation in excess of capital allowances - deferred tax not recognised 20 (213)
Total income tax 2,310 614
A reduction in the UK corporation tax rate from 24% to 23% (effective from 1
April 2013) was substantively enacted on 3 July 2012. Accordingly the group's
profits for this accounting period are taxed at an effective rate of 23.1%.
The deferred tax asset at 28 February 2014 has been calculated based on the
rate of 23% at the reporting date.
The March 2013 Budget announced that the rate will further reduce to 20% by
2015 in addition to the planned reduction to 21% by 2014 previously announced
in the December 2012 Autumn Statement. It has not yet been possible to
quantify the full anticipated effect of the announced further 3% rate
reduction, although this will further reduce the group's future current tax
charge and reduce the group's deferred tax asset accordingly.
10 Intangible assets
Patents and licences Computer software Totals
£000 £000 £000
Cost
Balance at 1 March 2012 208 438 646
Additions 75 282 357
Disposals (10) - (10)
Balance at 28 February 2013 273 720 993
Balance at 1 March 2013 273 720 993
Additions 28 2,734 2,762
Balance at 28 February 2014 301 3,454 3,755
Accumulated amortisation
Balance at 1 March 2012 43 180 223
Amortisation for the year 26 128 154
Disposals (10) - (10)
Balance at 28 February 2013 59 308 367
Balance at 1 March 2013 59 308 367
Amortisation for year 29 307 336
Balance at 28 February 2014 88 615 703
Net book value
At 29 February 2012 165 258 423
At 28 February 2013 214 412 626
At 28 February 2014 213 2,839 3,052
11 Property, plant and equipment
Short Leasehold Fixtures and fittings Computer Equipment Motor Vehicles Land & Buildings Totals
£000 £000 £000 £000 £000 £000
Cost
Balance at 1 March 2012 279 599 397 155 372 1,802
Additions 131 361 174 25 3,599 4,290
Balance at 28 February 2013 410 960 571 180 3,971 6,092
Balance at 1 March 2013 410 960 571 180 3,971 6,092
Additions 921 376 499 74 5 1,875
Disposals - - - (172) - (172)
Balance at 28 February 2014 1,331 1,336 1,070 82 3,976 7,795
Accumulated depreciation
Balance at 1 March 2012 79 230 296 106 - 711
Depreciation charge for the year 62 147 93 69 43 414
Balance at 28 February 2013 141 377 389 175 43 1,125
Balance at 1 March 2013 141 377 389 175 43 1,125
Depreciation charge for the year 130 232 178 21 82 643
Disposals - - - (172) - (172)
Balance at 28 February 2014 271 609 567 24 125 1,596
Net book value
At 29 February 2012 200 369 101 49 372 1,091
At 28 February 2013 269 583 182 5 3,928 4,967
At 28 February 2014 1,060 727 503 58 3,851 6,199
12 Investments
The subsidiaries held from 14 March 2014 but consolidated in these accounts
are set out below:
Company Principal activity Country of incorporation Percentage ownership
ABK Limited Holding company Jersey 100%
Boohoo.com UK Limited (formerly Wasabi Frog Limited) Trading company UK 100%
Boo Who Limited Property holding company UK 100%
Boohoo.com USA Limited Dormant company UK 100%
13 Deferred tax
Depreciation in excess of capital allowances
£000
At 1 March 2012 -
Recognised in statement of comprehensive income 33
At 28 February 2013 33
At 28 February 2014 33
14 Inventories
2014 2013
£000 £000
Finished goods 9,795 6,840
The value of inventories included within cost of sales for the year was
£42,433,000 (2013: £30,619,000). An impairment provision of £517,000 (2013:
£687,000) was charged to the statement of comprehensive income. The relative
reduction in the level of the provision between 2013 and 2014 follows the
introduction of a new provisioning methodology during the year calculated on
the basis of an enhanced level of historic inventory data. The provision at 28
February 2013 under the new methodology would have been £335,000.
15 Trade and other receivables
2014 2013
£000 £000
Amounts due from related party undertakings 1,156 39
Other receivables 1,610 158
Prepayments and accrued income 1,161 676
3,927 873
The amounts due from related party undertakings will be repaid within six
months. Other receivables represent amounts due from credit card sales which
were received within a few days of the invoice date in accordance with normal
bank clearance times, advance payments to suppliers and a deposit paid to a
credit card organisation.
16 Trade and other payables
2014 2013
£000 £000
Trade payables 8,469 7,910
Amounts owed to related party undertakings 192 953
Other payables 42 49
Accruals and deferred income 4,859 3,242
Taxes and social security payable 1,307 592
14,869 12,746
17 Interest-bearing loans and borrowings
This note provides information about the contractual terms of the group's
interest-bearing loans and borrowings, which are measured at amortised cost.
2014 2013
£000 £000
Non-current liabilities
Secured bank loans 2,358 2,482
Other loans - 39
2,358 2,521
Current liabilities
Current portion of secured bank loans 185 185
Current portion of other loans 199 34
384 219
17 Interest-bearing loans and borrowings(continued)
Terms and debt repayment schedule
Currency Nominal interest rate Year ofmaturity
2014 2013
£000 £000
Secured Bank Loan £ 2.75% 2027 2,543 2,667
Carbon Trust Loan £ 0% 2014 - 14
Other Loan £ 0% 2014 199 59
2,742 2,740
The secured bank loan was repaid early in April 2014.
18 Share capital and share premium
2014 2013
£000 £000
Authorised and fully paid
ordinary shares of 1p each (2013:nil) - -
During the year, the redeemable preference shares in boohoo.com UK Limited
(formerly Wasabi Frog Limited) were redeemed at nominal value of £99,917.
The share capital is prior to the issue of shares on flotation on 14 March
2014.
19 Related party disclosures
Included in amounts due from related party undertakings at the year end in
boohoo.com UK Limited (formerly Wasabi Frog Limited) is an amount of
£1,155,684 (2013: amounts owed to related party undertakings £419,100) due
from Jogo Associates Limited, a company in which J A Kamani is interested in
as director and shareholder and M A Kamani is interested in as a shareholder.
Transactions in boohoo.com UK Limited (formerly Wasabi Frog Limited) with Jogo
Associates Limited during the year were as follows:
2014 2013
£000 £000
Purchases 453 426
Loan 1,142 -
19 Related party disclosures (continued)
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £nil (2013: £nil) payable to The White
Cube Creative Limited, a company in which the domestic partner of C Kane is
interested in as a director. Transactions in boohoo.com UK Limited (formerly
Wasabi Frog Limited) with The White Cube Creative Limited during the year were
as follows:
2014 2013
£000 £000
Administration costs - marketing services 74 98
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £nil (2013: £4,082,892) payable to The
Pinstripe Clothing Co. Limited, a company in which J A Kamani and M A Kamani
are interested in as directors and shareholders. Included in amounts owed to
related party undertakings at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £27,541 (2013: £533,925). Transactions in
boohoo.com UK Limited (formerly Wasabi Frog Limited) with The Pinstripe
Clothing Co. Limited during the year were as follows:
2014 2013
£000 £000
Purchases 10,162 30,995
Loan 926 -
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £nil (2013: £561,932) payable to Red
Orange Limited, a company in which M A Kamani and C Kane are interested in as
directors and shareholders. Included in amounts owed to related party
undertakings at the year end in boohoo.com UK Limited (formerly Wasabi Frog
Limited) is an amount of £16,374 (2013: included in amounts due from related
party undertakings £33,290). Transactions in boohoo.com UK Limited (formerly
Wasabi Frog Limited) with Red Orange Limited during the year were as follows:
2014 2013
£000 £000
Purchases 1,157 4,230
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £20,716 (2013: £47,366) payable to
Pannone Corporate LLP, a company in which S Grant (a former director of
boohoo.com UK Limited) is interested in as a Partner. Transactions in
boohoo.com UK Limited (formerly Wasabi Frog Limited) with Pannone Corporate
LLP during the year were as follows:
2014 2013
£000 £000
Administration costs - legal services 196 100
19 Related party disclosures (continued)
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £nil (2013: £33,022) payable to Kamani
Commercial Property Limited, a company in which M A Kamani and J A Kamani are
interested in as directors. Included in amounts owed to related party
undertakings at the year end in boohoo.com UK Limited (formerly Wasabi Frog
Limited) is an amount of £129,585 (2013: amounts due from related party
undertakings £4,006). Transactions in boohoo.com UK Limited (formerly Wasabi
Frog Limited) with Kamani Commercial Property Limited during the year were as
follows:
2014 2013
£000 £000
Rent and service charge 575 458
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £nil (2013: £20,568) due to Kamani
Construction Limited, a company in which M A Kamani and J A Kamani are
interested in as directors. Included in amounts owed to related party
undertakings at the year end in boohoo.com UK Limited (formerly Wasabi Frog
Limited) is an amount of £17,913 (2013: amounts due from related party
undertakings £1,928). Transactions in boohoo.com UK Limited (formerly Wasabi
Frog Limited) with Kamani Construction Limited during the year were as
follows:
2014 2013
£000 £000
Purchases 170 161
Included in amounts owed by related party undertakings in boohoo.com UK
Limited (formerly Wasabi Frog Limited) at the year is an amount of £1,071,016
(2013: £1,232,462) due from Boo Who Limited, a subsidiary of boohoo.com UK
Limited (formerly Wasabi Frog Limited) and of which M A Kamani is a director.
Transactions in boohoo.com UK Limited (formerly Wasabi Frog Limited) with Boo
Who Limited during the year were as follows:
2014 2013
£000 £000
Distribution costs - Rent 324 324
Interest and other expenses payable 49 40
Included in trade payables at the year end in boohoo.com UK Limited (formerly
Wasabi Frog Limited) is an amount of £10,000 (2013: £nil) payable to Zeus
Capital Limited, a company in which R Hughes (a former director of boohoo.com
UK Limited) is interested in as a director. Transactions in boohoo.com UK
Limited (formerly Wasabi Frog Limited) with Zeus Capital Limited during the
year were as follows:
2014 2013
£000 £000
Administration costs 120 -
19 Related party disclosures (continued)
Included in prepayments and accrued income at the year end in boohoo.com UK
Limited (formerly Wasabi Frog Limited) is an amount of £450,000 (2013: £nil)
due from M A Kamani in respect of a gift to boohoo.com UK Limited (formerly
Wasabi Frog Limited) for the benefit of employees.
2014 2013
£000 £000
Other income 450 -
Included in trade payables in boohoo.com UK Limited (formerly Wasabi Frog
Limited) at the year end is an amount of £nil (2013: £nil) payable to Graphic
Clothing Limited, a company in which J A Kamani is interested in as a
director. Transactions in boohoo.com UK Limited (formerly Wasabi Frog Limited)
with Graphic Clothing Limited during the year were as follows:
2014 2013
£000 £000
Purchases 614 -
20 Financial instruments
(a) Fair values of financial instruments
Trade and other receivables
The fair value of trade and other receivables, excluding construction contract
debtors, is estimated as the present value of future cash flows, discounted at
the market rate of interest at the reporting date if the effect is material.
Trade and other payables
The fair value of trade and other payables is estimated as the present value
of future cash flows, discounted at the market rate of interest at the
reporting date if the effect is material.
Cash and cash equivalents
The fair value of cash and cash equivalents is estimated as its carrying
amount where the cash is repayable on demand. Where it is not repayable on
demand then the fair value is estimated at the present value of future cash
flows, discounted at the market rate of interest at the reporting date.
Interest-bearing borrowings
Fair value is calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the
reporting date.
20 Financial instruments(continued)
Fair values
2014 2013
£000 £000
Financial assets
Cash and cash equivalents 5,411 4,607
Cash flow hedges 125 -
Trade and other receivables 2,766 197
Total financial assets 8,302 4,804
2014 2013
£000 £000
Financial liabilities
Other interest-bearing loans and borrowings 2,742 2,740
Cash flow hedges 24 -
Trade and other payables 13,562 12,154
Total financial liabilities 16,328 14,894
(b) Credit risk
Financial risk management
Credit risk is the risk of financial loss to the group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the group's receivables from
customers and hedging and other financial activities.
The group faces minimal credit risk from trade receivables as customers pay
for their orders in full at the time of purchase and bank clearance of credit
cards receipts is of short duration. The risk of default from related party
undertakings is considered low.
(c) Liquidity risk
Financial risk management
Liquidity risk is the risk that the group will not be able to meet its
financial obligations as they fall due.
The group's approach to managing liquidity is to use both short-term and
long-term cash forecasts to assist in monitoring cash flow requirements.
20 Financial instruments(continued)
(d) Capital risk
Financial risk management
Capital risk is the risk that the group will not be able to continue as a
going concern.
The group's approach to managing capital risk is to safeguard the group's
ability to continue as a going concern by securing an appropriate mix of debt
and equity funding, a strong credit rating and sufficient headroom.
(d) Foreign currency risk
Financial risk management
The group trades internationally and is exposed to exchange rate risk on
purchases and sales, primarily in Australian dollars, euros and US dollars.
The group's results are presented in sterling and are exposed to exchange rate
risk on translation of foreign currency assets and liabilities.
The group's approach to managing foreign currency risk is to use financial
instruments in the form of forward foreign exchange contracts to hedge foreign
currency cash flows.
The fair value of forward foreign exchange contracts recognised in the
Statement of Financial Position within financial assets at 28 February 2014
was £125,000 (2013: £nil) and within financial liabilities was £24,000 (2013:
£nil). Cash flows related to these contracts will occur during the year to 28
February 2015 and gains or losses will be recognised in the Statement of
Comprehensive Income during the same period.
21 Operating Leases
The group has lease agreements in respect of properties, plant and equipment,
for which the payments extend over a number of years. The total of future
minimum lease payments under non-cancellable operating leases due in each
period are:
2014 2013
£000 £000
Within one year 555 -
Within two to five years 1,752 -
Appendix 1
Restatement of geographic analysis of revenue
The table below shows the revenue for the 10 months to December, which has
been restated from the numbers shown in the Admission Document in respect of
certain European countries that were previously shown in rest of world as well
as a more accurate regional allocation of returns provisions.
10 months to December restated 10 months to December as previously reported
2014 2013 2014 2013
£000 £000 £000 £000
UK 58,147 35,991 58,295 35,639
Rest of Europe 10,856 5,847 8,062 6,290
Rest of World 22,918 12,227 25,564 12,136
91,921 54,065 91,921 54,065
This information is provided by RNS
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