TIDMALY
RNS Number : 5356D
Ashley (Laura) Hldgs PLC
20 February 2020
LAURA ASHLEY HOLDINGS PLC
Interim Report 2020
Contents
2 Summary
3 Chairman's Statement
8 Responsibility Statement
11 Condensed Group Statement of Comprehensive Income
12 Condensed Group Statement of Financial Position
13 Condensed Group Statement of Changes in Shareholders' Equity
14 Condensed Group Cash Flow Statement
15 Reconciliation of Net Cash Flow to Movement in Net Funds
16 Notes
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
20 February 2020
LAURA ASHLEY HOLDINGS plc
(The "Group")
Laura Ashley Holdings plc announces its interim results for the
26 weeks to 31 December 2019.
Summary
-- Total Group sales of GBP109.6m (26 weeks to 31 December
2018: GBP122.9m)
-- Total like-for-like retail sales down 10.4%
-- Loss before tax but after exceptional items GBP4.0m (2018:
GBP1.5m)
-- Hospitality expansion continues with ten licensed Laura
Ashley tea rooms and three licensed Laura Ashley Hotels.
New openings are in the pipeline for 2020
-- The Board is not recommending payment of an interim dividend
(December 2018: 0.0 pence)
-- The Group, under IFRS 16 "Leases", will report using the
modified retrospective method for 2019/2020 financial
year whereby comparatives will not be restated. The incremental
borrowing rate of 0.21% has been applied.
"There have been market challenges for our business which have
impacted these results during the current financial year. The
decline in total revenue was due to the market headwinds and weaker
consumer spending during the period, which led to a decline in
sales of bigger ticket items. Whilst these results are
disappointing, we believe that with the right focus and support,
Laura Ashley has a strong future and can be successful again.
In the Autumn of 2019, we carried out a Strategic Review of the
business to set the future direction of the company and return
Laura Ashley to the great British brand that is known and cherished
around the world. This includes reconnecting with our traditional
values and our strong British heritage. We have already started to
implement the recommendations of the Review, with the appointment
of a new leadership team and changes to our product ranges. We have
further to go but are confident we now have the right leadership
team and building blocks in place.
Going forwards we are excited about the potential for our
distinctive and much-loved Laura Ashley brand and the market
opportunities both in Great Britain and internationally."
Chairman's statement
"Over the past year there have been well documented market
challenges facing the retail sector. Similarly at Laura Ashley, we
have seen a combination of factors impact our results, ranging from
higher costs largely driven by the Brexit uncertainty, minimum
wages and business rates increases.
In the Autumn of 2019, we carried out a Strategic Review of the
business to set the future direction of the company and return
Laura Ashley to the great British brand that is known and cherished
around the world. This review identified six areas of focus:
improving our brand and customer strategy, accelerating digital,
increasing store productivity, improving products and trading,
growth opportunities, and focusing on our organization and
culture.
We have already started to implement the recommendations of the
Review, and this has started with the appointment of a new
leadership team. Katharine Poulter, who brings a wealth of retail
expertise, joined us as COO in January 2020 and will take on the
role of CEO with immediate effect. Sagar Mavani was appointed CFO
in 2019 and brings a fresh perspective and added financial
experience during this transitional phase of the business.
We are focused on developing Laura Ashley as a true lifestyle
brand that embraces and reconnects with our traditional values and
our strong British heritage .
We are already making changes to our product range, which will
not only be recognisable as iconic, exclusive Laura Ashley designs
and prints, but also products that are desirable today and
represent timeless quality. We have new and exciting partnerships
with brands like Barbour, Rag & Bone and Urban Outfitters and
expect to see these developing throughout 2020.We are continuing to
champion great British design and craftmanship and are working with
local suppliers in a sustainable manner. We remain committed to our
roots in Wales and as an employer in the region.
Our strong brand loyalty is seen through the hospitality segment
of its business and the licensing model. With ten tea rooms and
three licensed hotels already in operation, we have laid the
foundation for the further expansion. A number of opportunities are
currently being evaluated and we expect to see further openings
this year.
A new Master Licence Agreement was concluded with Itochu
Corporation for the Japan territory to ensure the continuing
presence and growth of Laura Ashley in Japan.
The Group is also exploring new partnership opportunities on the
international front which will provide the thrust for our future
growth. The Asian market will be a key focal point for the Group's
international expansion, while we also explore opportunities in
other regions.
As announced earlier this week, there has been a reduction in
the amount that the Group can draw down under its debt facility
with Wells Fargo, the lender to the Group. The Company continues to
review its working capital needs on an ongoing basis.
We have embarked on this transformational phase of our journey
and we are confident we have the right leadership team and building
blocks in place. We are excited about revitalising this distinctive
and much-loved brand and to unlock its true potential. I remain
extremely positive about the future of this great business and have
unwavering confidence that we will be able to achieve our
objectives of making Laura Ashley a brand that resonates with
today's customer.
Andrew Khoo
Chairman
Enquiries:
Laura Ashley Holdings plc
Katharine Poulter; CEO
Sagar Mavani; CFO 020 7880 5100
Media Enquiries
Brunswick
Anita Scott
Alice Gibb 020 7404 5959
Corporate Broker
Cantor Fitzgerald Europe
Rick Thompson
Michael Boot 020 7894 7000
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is being made on
behalf of the Company by Sagar Mavani, Chief Financial Officer.
LEI: 213800GTYRHRBJKABN84
Overview
For the 26 weeks to 31 December 2019, total Group sales were
GBP109.6m (H1 2018: GBP122.9m), a fall of 10.8%. The decline in
total revenue was due to the closure of 3 stores and weaker
consumers' confidence during the period, a like-for-like retail
sales drop of 10.4%.
Margins during the period were affected by the weak Sterling
against the US Dollar as well as an increase in domestic costs.
Operating expenses for the period were slightly lower at GBP43.8m
(H1 2018: GBP46.5m).
The loss before tax of GBP4.0m for the first half year (H1 2018:
Loss before tax: GBP1.5m) was attributed to lower Home Furnishings
sales and also because of the revenue disruption caused by the
change in our Japanese Franchise partner.
Cash Flow and Balance Sheet
As at 31 December 2019, the Group had a net borrowing of
GBP1.8m.
The decrease in inventory to GBP43.1m (December 2018: GBP50.1m)
was due to better management of stock and in line with the business
requirements.
Dividend
The Board is not recommending the payment of an interim dividend
(December 2018: 0.0 pence per share).
UK Retail and E-Commerce
As at 31 December 2019, the Group operated 153 stores in the UK
(December 2018: 155), comprising 104 Mixed Product stores, 47 Home
stores, 1 Concession store, and 1 Clearance outlet. During the
reporting period, 3 stores were closed and one was opened. One
store opening is planned for this year.
Total UK retail sales for the period were GBP106.5m (H1 2018:
GBP118.8m). On a like-for-like basis, UK retail sales fell by
10.4%. Total e-Commerce sales fell 15.5% to GBP22.2m (H1 2018:
GBP24.3m).
We continue to trade in ten European countries from our UK
website.
Product
The Group's business is organised under four main product
categories of Home Accessories, Furniture, Decorating and Fashion.
For the 26 weeks ended 31 December 2019, the contributions of sales
by each category were: Home Accessories 37%, Furniture 26%,
Decorating 16% and Fashion 21%.
Home Accessories
The Home Accessories product category includes lighting, gifts,
bed linen, rugs, throws, cushions and children's accessories.
Home Accessories sales for the 26 weeks to 31 December 2019
dropped by 14.6% and with like-for-like performance dropped by
13.7%.
Furniture
The Furniture product category includes upholstered and cabinet
furniture, beds and mirrors.
Furniture sales for the 26 weeks to 31 December 2019 decreased
by 7% and with like-for-like sales down 6.2%.
Decorating
This category includes fabric, curtains, wallpaper, paint and
decorative accessories.
Decorating sales for the 26 weeks to 31 December 2019 fell by
21.5% and with like-for-like sales down by 20.9%. As a result, our
design teams are in the process of reviewing the mix of our
decorating product offerings based on customer feedback and
research.
Fashion
This category includes adult fashion, fashion accessories and
perfumery.
Fashion sales for the 26 weeks to 31 December 2019 decreased by
2.3% over the same period last year and with like-for-like sales
flat on last year.
We continue to build on the success of our fashion ranges with a
much stronger offering in contemporary and wearable styles. Our
fashion range is further enhanced by the rich heritage of our
archive and we will continue to use this unique and rich
resource.
Hospitality
The Group is committed to developing the hospitality concept and
this will be achieved through the licensing model rather than
direct ownership. We now operate ten licensed Laura Ashley tea
rooms and three licenced Laura Ashley hotels.
International Operations
We have a master licence agreement with Itochu Corporation in
place. With this business partner, we are hopeful that the Laura
Ashley brand, already much admired in Japan, will make further
inroads in building on our heritage.
We will continue to develop our international presence and
explore new partnership opportunities. In the reporting period, our
international operations contributed 2.9% of total Group revenue.
As at 31 December 2019, there were 80 franchised stores (90 as at
31 December 2018) in 20 territories worldwide. The goal of the
Group is to increase its international reach.
Current Trading and Outlook
Laura Ashley's Brand is built on beautifully designed, high
quality products. We remain resolutely confident in the underlying
strength of this much loved Brand, in its relevance for today and
in our strategies to both maintain and develop it. The management
team is encouraged by the early signs of the turnaround strategy.
Sales were flat for the first 7 weeks of trading this year.
Acknowledgements
I wish to convey my thanks to our staff, management and my
fellow Board members for their hard work, contribution and
commitment.
I also take this opportunity to thank our customers, franchise
partners, license partners, shareholders and suppliers for their
continued support and loyalty to the Group.
Andrew Khoo,
Chairman
Principal Risks and Uncertainties
There are a number of potential risks and uncertainties which
could have a material impact on the Group's performance over the
remaining six months of the financial year and beyond, and could
cause actual results to differ materially from expected and
historical results. The Board considers that the majority of
significant risks and uncertainties remain as published in the
Annual Report for the period ended 30 June 2019. These comprise
of:
-- Failure of the business to meet sales and margin targets
-- Failure to maintain or increase market share
-- Failure to optimise store portfolio
-- Failure to develop innovative product ranges
-- Failure to attract, develop and retain talent with the
correct skill and capability for further development as
part of the Group's succession policy
-- Failure to deliver sales growth online by failing to meet
customer expectations or through failure of the website.
-- Disruption to key IT systems from a major incident, including
a cyber-attack
-- Failure to grow our international business successfully
through Franchise and Licensing partnerships
-- Failure to maintain cost efficient funding and react to
changes in foreign currency exchange fluctuations. Unforeseen
financing requirements or treasury exposures
-- Access to funding and liquidity
-- Failure of central computer servers that manage points
of sale, contact centre or website
-- The risk of theft of staff, customer or corporate data.
-- Failure of the business to deal with the impact of adverse
Brexit trading conditions
A detailed explanation of these risks can be found on page 13 of
the 2019 Annual Report which is available at
www.lauraashley.com.
Responsibility Statement
We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU;
-- The interim management report includes a fair review of the information required by:
a) DTR 4.2.7 R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
condensed set of financial statements, and a description of the
principal risks and uncertainties for the remainder of the
financial year; and
b) DTR 4.2.8 R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the Group in the
first six months of the current financial year; and any changes in
the related party transactions described in the last Annual Report
that could have a material effect on the financial position or
performance of the Group in the first six months of the current
financial year.
By order of the Board
Sagar Mavani
Condensed Group Statement of Comprehensive Income
For the 26 week period ended 31 December 2019
Notes 26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
IFRS 16 IAS 17 IAS 17
GBPm GBPm GBPm
Revenue 2 109.6 122.9 232.5
Cost of sales (68.7) (75.9) (150.4)
------------------------------- ------ ------------------------ --------------------- ------------------------
Gross profit 40.9 47.0 82.1
Operating expenses (43.8) (46.5) (91.1)
Loss from operations before
exceptionals (2.9) 0.5 (9.0)
Exceptional Items (0.1) (1.5) (4.5)
Finance costs (1.0) (0.5) (0.8)
------------------------------- ------ ------------------------ --------------------- ------------------------
Loss before taxation (4.0) (1.5) (14.3)
Taxation - - 0.3
------------------------------- ------ ------------------------ --------------------- ------------------------
Loss for the financial period* (4.0) (1.5) (14.0)
Other comprehensive
(loss)/income:
Actuarial gain on defined
benefit
scheme - - (3.6)
Deferred tax effect - - 0.8
------------------------------- ------ ------------------------ --------------------- ------------------------
Total that will not be
subsequently
reclassified to profit and
loss - - (2.8)
------------------------------- ------ ------------------------ --------------------- ------------------------
Exchange differences on re-translation
of foreign operations (0.2) 0.4 0.6
Other reserve movements - 0.1 -
Total that may be subsequently
reclassified to profit and
loss (0.2) 0.5 0.6
------------------------------- ------ ------------------------ --------------------- ------------------------
Other comprehensive
(loss)/profit
for the period net of tax (0.2) 0.5 (2.2)
Total comprehensive loss for
the period (4.2) (1.0) (16.2)
------------------------------- ------ ------------------------ --------------------- ------------------------
* Earnings per share - basic
and diluted calculated based
on profit/(loss) for the
financial
period (0.54p) (0.21p) (1.92p)
------------------------------- ------ ------------------------ --------------------- ------------------------
The Group's results shown above are derived entirely from
continuing operations.
Condensed Group Statement of Financial Position
As at 31 December 2019
31 December 31 December 30 June 2019
2019 2018
(unaudited) (unaudited) (audited)
IFRS 16 IAS 17 IAS 17
GBPm GBPm GBPm
Non-current assets
Intangible assets 1.3 1.3 1.1
Property, plant and
equipment owned assets 8.5 15.4 7.6
Property, plant and
equipment right of use 66.5 - -
asset
Deferred tax asset 2.8 2.1 2.8
Investment in associate - - -
Investment in quoted - - -
shares
79.1 18.8 11.5
Current assets
Inventories 43.1 50.1 46.7
Trade and other receivables 11.2 17.2 12.7
Current Tax Asset - - 0.8
Cash and cash equivalents 4.1 0.1 0.8
Assets held for sale - - 1.5
58.4 67.4 62.5
Total assets 137.5 86.2 74.0
----------------------------------- ------------------------------- --- ------------ --- ------------------------------
Current liabilities
------------------------------- ------------ ------------------------------
Trade and other payables 31.1 39.5 38.1
Lease liabilities 17.4 - -
Short-term borrowings 5.9 - -
54.4 39.5 38.1
Non-current liabilities
Retirement benefit liabilities 15.1 11.2 15.1
Lease liabilities 51.4 - -
Provisions and other
liabilities 0.6 0.1 0.6
67.1 11.3 15.7
Total liabilities 121.5 50.8 53.8
----------------------------------- ------------------------------- --- ------------ --- ------------------------------
Net assets 16.0 35.4 20.2
----------------------------------- ------------------------------- --- ------------ --- ------------------------------
Equity
Share capital 37.3 37.3 37.3
Share premium 86.4 86.4 86.4
Own shares (3.2) (3.2) (3.2)
Treasury shares (4.6) (4.6) (4.6)
Retained earnings (99.9) (80.5) (95.7)
Total equity 16.0 35.4 20.2
----------------------------------- ------------------------------- --- ------------ --- ------------------------------
Condensed Group Statement of Changes in Shareholders' Equity
For the 26 week period ended 31 December 2019
Share Share EBT Treasury Retained Total
Capital Premium Shares Shares Earnings Equity
GBPm GBPm GBPm GBPm GBPm GBPm
Balance as at 30 June
2018 37.3 86.4 (3.2) (4.6) (79.5) 36.4
Loss for 26 weeks
ended
31 December 2018 - - - - (1.5) (1.5)
Other comprehensive
income - - - - 0.5 0.5
---------------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Balance as at 31
December
2018 37.3 86.4 (3.2) (4.6) (80.5) 35.4
Loss for the 26 weeks
ended
30 June 2019 - - - - (12.5) (12.5)
Other comprehensive
loss - - - - (2.7) (2.7)
---------------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Balance as at 30 June
2019 (nothing to
restated
for adoption of IFRS
16) 37.3 86.4 (3.2) (4.6) (95.7) 20.2
Loss for the 26 weeks ended
31 December 2019 - - - - (4.0) (4.0)
Other comprehensive loss - - - - (0.2) (0.2)
------------------------------------------------------------------------------------------------------------------
Balance as at 31 December
2019 37.3 86.4 (3.2) (4.6) (99.9) 16.0
--------------------------- ------------- ------------- --------------- --------------- -------------- -----
Condensed Group Cash Flow Statement
For the 26 week period ended 31 December 2019
Notes 26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
IFRS 16 IAS 17 IAS 17
GBPm GBPm GBPm
Operating activities
---------------------------- ------------------------- ----------------------------
Cash generated from
operations 4 7.2 2.9 (1.6)
Corporation tax paid - (0.8) (1.2)
----------------------------
7.2 2.1 (2.8)
Investing activities
Purchase of
intangible assets (0.4) (0.2) (0.3)
Purchase of
property, plant
and equipment (0.4) - (0.8)
Disposal of
property, plant
and equipment 1.3 30.2 36.8
----------------------------
0.5 30.0 35.7
Financing activities
---------------------------- ------------------------- ----------------------------
Repayment of bank
loan - (20.1) (20.1)
Repayment of Lease (9.9) - -
liabilities
under IFRS 16
Interest expense (0.4) (0.5) (0.6)
----------------------------
(10.3) (20.6) (20.7)
Net
(decrease)/increase
in cash
and cash
equivalents (2.6) 11.5 12.2
--------------------- ------ ---------------------------- ------------------------- ----------------------------
Reconciliation of Net Cash Flow to Movement in Net Funds
For the 26 week period ended 31 December 2019
26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
Net (decrease)/increase
in cash and cash equivalents (2.6) 11.5 12.2
Net funds at the beginning
of the period 0.8 (11.4) (11.4)
------------------------------- ------------ -------------------------- --------------------------
Net funds at the end of
the period (1.8) 0.1 0.8
------------------------------- ------------ -------------------------- --------------------------
Represented by:
Cash and cash equivalents 4.1 0.1
0.8
Short-term borrowings (5.9) - -
Net funds at the end of the period (1.8) 0.1 0.8
Notes
1 Basis of preparation
Statement of compliance
This condensed set of financial statements has been prepared in
accordance with the requirements of IAS 34 'Interim Financial
Reporting' as adopted by the European Union ('EU').
As required by the Disclosure and Transparency Rules of the UK's
Financial Conduct Authority and other than described below, this
condensed set of financial statements has been prepared by applying
the accounting policies and presentation that were applied in the
preparation of the Group's published financial statements for the
financial period ended 30 June 2019 except as described below,
which were prepared in accordance with International Financial
Reporting Standards as adopted by the EU.
The statutory audited accounts for the period ended 30 June 2019
have been delivered to the Registrar of Companies in England and
Wales. The Auditor's report on these accounts was unqualified and
did not contain statements under Section 498 of the Companies Act
2006.
These six months condensed financial statements are unaudited,
not reviewed in accordance with 'International Standard on Review
Engagements (UK and Ireland) 2410' and do not constitute statutory
accounts within the meaning of Section 434(3) of the Companies Act
2006.
Significant accounting policies
IFRS 16 is effective for all accounting periods beginning on or
after 1 January 2019.
Following the adoption of IFRS 16 "Leases" on 1 January 2019,
the Group's statutory results for the six months ended 31 December
2019 are on an IFRS 16 basis, whereas the statutory results for the
six months ended 31 December 2018 are on an IAS 17 basis as
previously reported.
The Group will report using the modified retrospective
transition approach for the 2019/20 financial year where
comparatives will not be restated and where the cumulative effect
of applying IFRS 16 is recognised in retained earnings with no
restatement to prior years.
At inception of a contract the Group assesses whether the
contract is or contains a lease. A lease is present where the
contract conveys, over a period of time, the right to control the
use of an identified asset in exchange for consideration.
Where a lease is identified, the Group recognises a right-of-use
asset and a corresponding lease liability, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. The lease liability is initially
measured at the present value of the remaining future minimum lease
payments at the date of initial application. The lease payments are
discounted at the Group's incremental borrowing rate. The lease
liability is presented as a separate line in the Group Statement of
Financial Position split between current and non-current
liabilities.
The Group has applied the practical expedient within the
standard whereby IFRS 16 has been applied to contracts that were
previously identified as leases when applying IAS 17 Leases and
IFRIC 4- Determining whether an Arrangement contains a Lease.
2 Segmental analysis
26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
--------------------------- --------------------------- --------------------------- ---------------------------
Revenue
Retail:
Stores 83.1 91.2 172.5
E-Commerce & Mail Order 23.4 26.4 51.2
Hotel - 1.2 1.4
--------------------------- --------------------------- ---------------------------
Total Retail (incl Europe
and Hotel) 106.5 118.8 225.1
Non-Retail 3.1 4.1 7.4
Total Revenue 109.6 122.9 232.5
---------------------------- --------------------------- --------------------------- ---------------------------
Retail
Contribution:
Stores 0.5 2.7 (1.7)
E-Commerce & Mail Order 3.6 4.8 7.6
Hotel - (0.1) 0.1
--------------------------- --------------------------- ---------------------------
Total contribution 4.1 7.4 6.0
Indirect overhead costs (8.9) (9.3) (18.0)
Other Income - - -
Finance costs (1.0) (0.5) (0.8)
Exceptional items (0.1) (1.5) (4.5)
Loss before taxation (5.9) (3.9) (17.3)
---------------------------- --------------------------- --------------------------- ---------------------------
Non-Retail
Contribution 1.9 2.4 3.0
Indirect overhead costs - - -
Share of associate profit - - -
Profit before taxation 1.9 2.4 3.0
---------------------------- --------------------------- --------------------------- ---------------------------
Total Retail & Non-Retail
Contribution 6.0 9.8 9.0
Indirect overhead costs (8.9) (9.3) (18.0)
Share of associate profit - - -
Other Income - - -
Finance costs (1.0) (0.5) (0.8)
Exceptional items (0.1) (1.5) (4.5)
Loss before taxation (4.0) (1.5) (14.3)
---------------------------- --------------------------- --------------------------- ---------------------------
2 Segmental analysis (continued)
As at As at As at
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
GBPm GBPm GBPm
------------------------ --------------------------- ----------------------------- -----------------------------
Non-Current Assets
Destination
UK, Ireland & France 79.1 16.1 11.5
Japan - 2.7 -
Singapore - - -
Rest of the World - - -
Total Non-Current Assets 79.1 18.8 11.5
------------------------- --------------------------- ----------------------------- -----------------------------
26 weeks to 26 weeks to 52 weeks to
31 December 31 December 30 June
2019 2018 2019
GBPm GBPm GBPm
------------------------ --------------------------- ----------------------------- -----------------------------
Revenue
Destination
UK, Ireland & France 107.1 119.4 226.3
Continental Europe 0.9 1.0 -
Japan 0.1 0.5 0.8
Rest of the World 1.5 2.0 5.4
Total Revenue 109.6 122.9 232.5
------------------------- --------------------------- ----------------------------- -----------------------------
The reported segments are consistent with the Group's internal
reporting for performance measurement and resource allocation.
Retail revenue reflects sales through Laura Ashley's Managed
Stores, Mail Order and e-Commerce. Non-retail revenue includes
Licensing, Franchising and Manufacturing. Contribution is stated
after deducting direct operating expenses, buying, marketing and
administrative costs.
3 Earnings per share
Earnings per share are calculated by dividing the profit for the
financial period by the weighted average number of ordinary shares
during the year (excluding treasury shares of 18,272,500).
26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
Loss for the financial period
(GBPm) (4.0) (1.5) (14.0)
Weighted average number
of ordinary shares - basic
and diluted ('000) 727,763 727,763 727,763
Earnings per share (0.55p) (0.21p) (1.92p)
------------------------------- ------------ ------------ ----------
4 Reconciliation of loss from Operations to Net Cash inflow from Operating Activities
26 weeks 26 weeks 52 weeks
to to to
31 December 31 December 30 June
2019 2018 2019
(unaudited) (unaudited) (audited)
Loss from operations
before
exceptionals (2.9) 0.5 (9.0)
Amortisation charge 0.3 0.3 0.6
Depreciation charge 10.3 1.2 2.1
Profit on disposal of
property,
plant and
equipment 0.1 0.1 (0.4)
Exchange differences 0.8 0.3 -
Decrease in inventories 3.6 5.6 9.0
Decrease in receivables 1.5 0.1 3.6
Increase in payables (6.5) (4.5) (5.9)
Movement in provisions - (0.7) (1.6)
------------------------- ---------------------------- ----------------------------- ------------------------------
Net cash inflow from
operating
activities 7.2 2.9 (1.6)
------------------------- ---------------------------- ----------------------------- ------------------------------
5 Related party transactions
The related party transactions that have occurred in the 26 week
period ended 31 December 2019 are not materially different in size
or nature to those reported in the Group's Annual Report for the
financial year ended 30 June 2019.
6 Group pension arrangements
The assets and liabilities of the defined benefit pension scheme
are considered on an annual basis at the end of each financial
year.
7 Wells Fargo Capital Finance (UK) Ltd facility
The Group meets its day-to-day working capital requirements
through free cash and a debt facility with Wells Fargo Capital
Finance (UK) Limited. There has been a reduction in the amount that
the Group can draw down under its debt facility with Wells Fargo,
the lender to the Group. The Company continues to review its
working capital needs on an ongoing basis.
8 Impact on application of IFRS 16
GBPm
Loss after tax from continuing
operations per IFRS 16 (4.0)
Depreciation right of use assets 9.4
Lease finance cost 0.6
Lease rentals under IAS 17 (9.9)
Other adjustments 0.2
Loss after tax from continuing
operations per IAS 17 (3.7)
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END
IR EADANFEXEEAA
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February 20, 2020 02:00 ET (07:00 GMT)
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