TIDMBOO
RNS Number : 5346N
boohoo group plc
25 September 2019
For immediate release 25 September 2019
The information contained within this announcement is deemed by
the company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
boohoo group plc - interim results for the six months ended 31
August 2019
"Leading the fashion eCommerce market"
6 months 6 months Change
to 31 August to 31 August
2019 2018
GBP million GBP million
---------------------------------------- -------------- -------------- --------
Revenue 564.9 395.3 +43%
Gross profit 306.5 218.6 +40%
Gross margin 54.3% 55.3% -100bps
Adjusted EBITDA(1) 60.7 39.6 +53%
% of revenue 10.8% 10.0% +80bps
Adjusted EBIT(2) 51.2 35.3 +45%
% of revenue 9.1% 8.9% +20bps
Adjusted profit before tax(3) 51.8 35.8 +45%
Profit before tax 45.2 24.7 +83%
Adjusted diluted earnings per share(4) 2.91p 1.99p +46%
Diluted earnings per share 2.48p 1.39p +78%
Net cash(5) at period end 207.4 155.6 +51.8 m
---------------------------------------- -------------- -------------- --------
Highlights
Group
-- Revenue GBP564.9 million, up 43% (43% CER(6) )
-- Strong revenue growth across all brands and geographies (UK:
+35%; international: +55%). International now 44% of group revenue
(2019: 41%)
-- Robust balance sheet with net cash of GBP207.4 million (2019:
GBP155.6 million) with healthy operating cash flow of GBP55.9
million (2019: GBP55.7 million) and free cash flow of GBP30.1
million (+22%)
-- Acquisition of the MissPap, Karen Millen and Coast brands,
complementary additions to the group's scalable multi-brand
platform
boohoo
-- Revenue GBP281.0 million, up 34% with market share gains in all focus markets
-- Gross margin 53.6%, up 20bps
-- 8.4 million active customers(7) , up 20% on prior year
PrettyLittleThing
-- Revenue GBP237.6 million, up 41%
-- Gross margin 55.3%, down 200 bps
-- 5.7 million active customers, up 43%
-- Outstanding market share and revenue growth in all markets
Nasty Gal
-- Revenue GBP43.9 million, up 148%
-- Gross margin 54.2%, down 480bps driven by refinements to the customer proposition
-- 1.5 million active customers, up 112%
-- Strong revenue growth across all markets, gathering momentum
Guidance
As announced on 5 September 2019, group revenue growth for the
year to 29 February 2020 is expected to be 33% to 38%, with
adjusted EBITDA margin for the financial year to remain at around
10%, reflecting anticipated investments across the financial year
into the three brands acquired by the group in the first half year.
We reiterate our medium term guidance to deliver revenue growth of
at least 25% per annum and adjusted EBITDA margin of around
10%.
John Lyttle CEO, commented:
"It has been a fantastic first half of the year for the group.
We have delivered significant market share gains across all of our
key markets, and for the first time in our history, revenue has
exceeded GBP1 billion in the last 12 months. We have delivered
strong growth and operating leverage in our more established brands
and will continue to invest in both our more established and
newly-acquired brands. We enter the second half of the year
well-placed and confident that our platform, which combines the
latest fashion, great prices and excellent customer service, all
underpinned by a well-invested infrastructure, will deliver further
market share gains."
Investor and Analyst Meeting
A meeting for analysts will be held at 9.30am today at the
offices of Buchanan, 107 Cheapside, London, EC2V 6DN. boohoo group
plc's interim results 2020 are available at www.boohooplc.com.
A live audio webcast will be available at 9.30am via the
following link:
https://webcasting.buchanan.uk.com/broadcast/5d541fada98d141c9d04c8ed
A replay will subsequently be available from 12 noon via the
same link.
Enquiries
boohoo group plc
Neil Catto, Chief Financial Officer Tel: +44 (0)161 233
2050
Alistair Davies, Investor Relations Tel: +44 (0)161 233
2050
Clara Melia, Investor Relations Tel: +44 (0)20 3289
5520
Zeus Capital - Nominated adviser and joint broker
Nick Cowles/Andrew Jones (Corporate Finance) Tel: +44 (0)161 831
1512
John Goold/Benjamin Robertson (Corporate Broking) Tel: +44 (0)20 3829
5000
Jefferies - Joint broker
Philip Noblet/Max Jones Tel: +44 (0)20 7029
8000
Buchanan - Financial PR adviser boohoo@buchanan.uk.com
Richard Oldworth/Sophie Wills/Kim Looringh-van Tel: +44 (0)20 7466
Beeck/Toto Berger 5000
Notes:
(1) Adjusted EBITDA is calculated as profit before tax,
interest, depreciation, amortisation, share-based payment charges
and exceptional items.
(2) Adjusted EBIT is calculated as profit before tax, interest,
share-based payment charges, amortisation of acquired intangible
assets and exceptional items.
(3) Adjusted profit before tax is calculated as profit before
tax, excluding share-based payment charges, amortisation of
acquired intangible assets and exceptional items.
(4) Adjusted diluted earnings per share is calculated as diluted
earnings per share, adding back amortisation of acquired intangible
assets, share-based payment charges and exceptional items.
(5) Net cash is cash less borrowings.
(6) CER designates Constant Exchange Rate translation of foreign
currency revenue, which gives a truer indication of the performance
in international markets by removing year-to-year exchange rate
movements when local currency sales are converted to sterling.
(7) Active customers defined as having shopped in the last
year.
About boohoo group plc
"Leading the fashion eCommerce market"
Founded in Manchester in 2006, boohoo is an inclusive and
innovative brand targeting young, value-orientated customers. For
13 years, boohoo has been pushing boundaries to bring its customers
up-to-date and inspirational fashion, 24/7. boohoo has grown
rapidly in the UK and internationally, expanding its offering with
range extensions into menswear, through boohooMAN.
In early 2017 the group extended its customer offering through
the acquisitions of the vibrant fashion brand PrettyLittleThing,
and free-thinking brand Nasty Gal. In March 2019 the group acquired
the MissPap brand and in August 2019, the Karen Millen and Coast
brands, all complementary to the group's scalable multi-brand
platform. United by a shared customer value proposition, our brands
design, source, market and sell great quality clothes, shoes and
accessories at unbeatable prices. These investment propositions
have helped us grow from a single brand, into a major multi-brand
online retailer, leading the fashion eCommerce market for 16 to
40-year-olds around the world. As at 31 August 2019, the boohoo
group had around 13 million active customers across all its brands
around the world.
Cautionary Statement
Certain statements included or incorporated by reference within
this announcement may constitute "forward-looking statements" in
respect of the group's operations, performance, prospects and/or
financial condition. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words and words of similar meaning as "anticipates", "aims", "due",
"could", "may", "will", "should", "expects", "believes", "intends",
"plans", "potential", "targets", "goal" or "estimates". By their
nature, forward-looking statements involve a number of risks,
uncertainties and assumptions and actual results or events may
differ materially from those expressed or implied by those
statements. Accordingly, no assurance can be given that any
particular expectation will be met and reliance should not be
placed on any forward-looking statement. Additionally,
forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or
activities will continue in the future. No responsibility or
obligation is accepted to update or revise any forward-looking
statement resulting from new information, future events or
otherwise. Nothing in this announcement should be construed as a
profit forecast. This announcement does not constitute or form part
of any offer or invitation to sell, or any solicitation of any
offer to purchase any shares or other securities in the Company,
nor shall it or any part of it or the fact of its distribution form
the basis of, or be relied on in connection with, any contract or
commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares or other
securities of the Company. Past
performance cannot be relied upon as a guide to future
performance and persons needing advice should consult an
independent financial adviser. Statements in this announcement
reflect the knowledge and information available at the time of its
preparation. Liability arising from anything in this announcement
shall be governed by English law. Nothing in this announcement
shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Review of the business
Group overview
Group revenue for the half year increased by 43% (43% CER) on
the first half of the previous year to GBP564.9 million (2019:
GBP395.3 million). Revenue growth across all focus territories and
brands was strong.
Adjusted EBITDA was GBP60.7 million (2019: GBP39.6 million), an
increase of 53% on the first half of the previous year, with
efficiency improvements, increased leverage of fixed overheads and
effective marketing across the group leading to an adjusted EBITDA
margin of 10.8% (2019: 10.0%). Profit before tax was GBP45.2
million (2019: GBP24.7 million), an increase of 83%. Adjusted
diluted earnings per share was 2.91p, up 46% on the prior half
year. Basic earnings per share rose to 2.55p, an increase of 80%
(2019: 1.42p).
The group's performance over the half year has been outstanding,
with strong momentum across the business driving impressive revenue
growth in all our brands and in all key focus territories. The
group is increasing market share through highly effective marketing
strategies, employing a mix of high profile celebrity campaigns,
influencer associations, and digital and traditional marketing
initiatives. Our scalable, multi-brand platform has enabled us to
take on three additional women's brands - MissPap, Karen Millen and
Coast. Revenue from MissPap is starting to grow rapidly since
go-live in April, whilst Karen Millen and Coast will commence
trading online in October. Continuous improvement in the customer
proposition is a top priority, with new apps, additional payment
methods and improved delivery being deployed to ensure we keep pace
with technological developments and remain best-in-class.
Cash generation was strong, with operating cash flow of GBP55.9
million (2019: GBP55.7 million) and free cash flow up 22% to
GBP30.1 million. Capital expenditure was GBP6.4 million and GBP19.4
million was spent on the acquisition of the three new brands. Our
net cash balance at the period end increased to GBP207.4 million
(2019: GBP155.6 million).
Distribution centres
The group operates through two distribution centres: the Burnley
facility services boohoo, boohooMAN, Nasty Gal and, in the second
half year, will additionally serve MissPap, Karen Millen and Coast;
and the Sheffield facility, which is managed by a third-party,
services PrettyLittleThing. Automation at the Burnley warehouse
went live in April 2019 and has been instrumental in improving
efficiency and increasing throughput, enabling the facility to
handle the rapid growth of the group and maintain high customer
service levels. Both facilities give us the scale and capacity
required as the group develops.
Technology
New apps in key markets for boohoo, boohooMAN and Nasty Gal were
developed in-house and released in the first half year. These have
been highly successful, with a high rate of adoption by users.
Bringing the apps in-house has resulted in a far better user
experience, with the added advantage of greater flexibility for
further development and faster introductions of new features.
New payment methods have been introduced in several markets,
giving customers more choice and flexibility, which has contributed
to improvements in order size and frequency.
boohoo (including boohooMAN)
Performance
Revenue for the half year increased to GBP281.0 million, up 34%
on the first half of the previous year, with growth in all our key
focus markets.
Growth in the UK has continued in the first half year, whilst
international growth has remained exceptionally strong, especially
so in the USA and northern Europe. Gross margin increased by 20bps
to 53.6%, driven by an improved product offering and refinement of
the customer proposition.
Product
Core product lines are showing further improvement on the
previous year, which together with the comprehensive size range
offerings and new product introductions, are delivering growth and
meeting consumer trends. In June we introduced our first dedicated
recycled women's clothing range, "for the future", which is the
start of our drive for a more sustainable future in fashion
options. We have also extended our beauty range, offering a great
collection of well-known brands alongside a boohoo branded range.
boohooMAN is continuing to grow strongly as its product range
widens and new collections and size ranges are added. With our
constantly refreshed product offering, ensuring the very latest
fashion trends are on our website within days, boohoo remains the
most relevant brand for young consumers who want great fashion at
unbeatable prices.
Marketing
Marketing efforts continued to focus on a successful mix of
social media influencers, student activation, digital acquisition
and retention, PR and above-the-line advertising in the form of TV
and out-of-home advertising. Our investment in producing locally
relevant content is also proving highly successful as we expand
internationally.
Our global social media audience now includes over 6 million
followers on Instagram and 3 million Facebook likes. This summer
saw us working with a host of local brand ambassadors and the
return of global ambassador, Jordyn Woods. All collections have
featured an inspiring range of day-to-evening looks with that
synonymous boohoo glamour.
boohooMAN collaborated with American rap artist Quavo, launching
an inspirational collection for the spring/summer.
Customer interaction
Active customer numbers over the last 12 months increased by 20%
to 8.4 million. Conversion rate to sale increased from 3.1% to 3.3%
of sessions, when measured on website statistics alone. Order
frequency increased 2%, with customers placing an order with us, on
average, 2.11 times in 12 months, whilst the number of items per
basket increased 9% to 3.30.
Of our seventeen country-specific websites, six are translated
into local languages, with Swedish being added during the period
and improving the customer experience and conversion, and we have
plans for further translated sites. Our Instashop is a great way to
shop for the latest celebrity and influencer looks, whilst the
visual search facility on the app enables customers to locate
matching products from a photograph. The addition of new payment
methods in different countries ensures we keep abreast of customer
preferences and optimise conversion. A virtual assistant helps
answer customer queries and speeds up our response time to offer a
more satisfying customer relationship experience.
PrettyLittleThing
Performance
PrettyLittleThing ("PLT") achieved strong revenue growth of 41%
over the first half of the previous year, reaching GBP237.6
million. Growth across all territories was strong, with the US and
French markets performing exceptionally well. Gross margin has
decreased to 55.3% (2019: 57.3%), as we optimise growth and refine
the customer proposition.
Product
PLT brings the latest and most relevant celebrity looks at
affordable prices to our customers, with a choice of over 23,500
styles and new items available daily. Our product range continued
to expand during the first half year with further strong growth in
the "shape" ranges including Petite, Curve and Plus. We have also
continued to expand our accessories and beauty offering, partnering
with major beauty brands to offer a one-stop shop for our
customers. During the first half year we continued to bring the
latest celebrity looks to customers, with a second collaboration
with Ashley Graham and a swimwear collaboration with R&B artist
Ashanti.
Marketing
We have continued to extend our social media reach by increasing
the number of social media influencers, combined with celebrity
campaigns and collaborations. These include Ashley Graham, Ashanti
and the recently-announced collaboration with USA rapper Saweetie,
all of which help the brand reach its target audience. We have 11
million Instagram followers, 2 million likes on Facebook and 0.3
million followers on Twitter. We grew our Tik Tok following from
20,000 to 310,000 and are the fastest growing fashion brand on the
channel. We have presence on other social media channels and
continue to develop our exposure to new and emerging platforms.
Customer interaction
We support eight country-specific websites and have plans for
further foreign language sites, following the success of the French
language site introduced in the previous financial year. For the UK
market, we offer a wide range of free return options. We have
expanded our customer payment options through the first half of the
year as we seek to introduce the latest technologies and payment
options to give our customers greater flexibility in their shopping
experience.
Active customer numbers over the last 12 months increased by 43%
to 5.7 million. Conversion rate to sale increased from 3.3% to 3.6%
of sessions, when measured on website statistics alone. Order
frequency increased 5% to 2.97 times in 12 months, whilst the
number of items per basket increased 5% to 2.96.
Nasty Gal
Performance
Revenue growth across all territories has been exceptionally
strong, giving an overall 148% increase to GBP43.9 million. Revenue
growth in the USA, the largest single market for the brand, has
continued at a significant pace. UK and International growth has
been exceptional, with the brand gaining momentum through growing
consumer awareness. Gross margin at 54.2% (2019: 59.0%) is in line
with the re-alignment of the customer proposition.
Product
We have continued to build the product base in line with the
expansion of the business, with the number of styles doubling to
over 13,000. Product pricing remains higher than that of boohoo and
PrettyLittleThing, whilst the product is differentiated in line
with the brand's heritage, including the Nasty Gal Vintage
collection, which is part of the ongoing product strategy and
representative of the brand's DNA.
Marketing
The marketing strategy has focussed on building and extending
the number of bloggers and influencers and staging key media events
to engage customer interest and promote brand loyalty. This summer
we launched an iconic collection edited by Emily Ratajkowski
(EmRata) and teamed up with Claire Rose Cliteur with a beautiful
collection of transitional season pieces.
On social media Nasty Gal has 3.8 million followers on
Instagram, 1.3 million Facebook likes and 0.2 million followers on
Twitter.
Customer interaction
Nasty Gal has seven country and regional websites and apps for
the UK, US and the Australian markets. The new apps were brought
in-house during the period, bringing a significant improvement in
the customer experience and greater flexibility for us to enhance
the app in short timescales.
Active customer numbers over the last 12 months increased by
112% to 1.5 million. Conversion rate to sale increased from 1.9% to
2.2% of sessions, when measured on website statistics alone. Order
frequency increased 13% to 1.55 times in 12 months, whilst the
number of items per basket increased 18% to 3.44.
Financial review
Group revenue by brand
6 months to 6 months to Change Change
31 August 2019 31 August 2018
GBP000 GBP000 CER
------------------- ---------------- ---------------- ------- -------
boohoo 281,033 209,006 +34% +35%
PrettyLittleThing 237,609 168,612 +41% +41%
Nasty Gal 43,850 17,691 +148% +153%
Other 2,374 - - -
564,866 395,309 +43% +43%
=================== ================ ================ ======= =======
Group revenue by geographical market
6 months to 6 months to Change Change
31 August 2019 31 August 2018
GBP000 GBP000 CER
---------------- ---------------- ---------------- ------- -------
UK 314,954 234,057 +35% +35%
Rest of Europe 87,486 51,250 +71% +69%
USA 110,729 68,171 +62% +65%
Rest of world 51,697 41,831 +24% +25%
---------------- ---------------- ---------------- ------- -------
564,866 395,309 +43% +43%
================ ================ ================ ======= =======
KPIs
Group
6 months 6 months to Change
to 31 August
31 August 2018(5)
2019
Active customers(1) 13.0 million 10.0 million +30%
Number of orders 20.3 million 14.7 million +38%
Order frequency(2) 2.87 2.68 +7%
Conversion rate to sale (3) 3.26% 3.09% +17bps
Average order value(4) GBP43.26 GBP40.57 +7%
Number of items per basket 3.15 2.93 +7%
----------------------------- ------------- ------------- -------
1. Defined as having shopped in the last 12 months
2. Defined as number of orders in last 12 months divided by number of active customers
3. Defined as the percentage of website orders taken to internet sessions
4. Calculated as gross sales including sales tax divided by the number of orders
5. Prior period numbers restated to include marketplace data
Consolidated summary income statement
6 months to 6 months to Change
31 August 2019 31 August 2018
GBP000 GBP000
----------------------------------------------------------------------- ---------------- ---------------- ---------
Revenue 564,866 395,309 +43%
Cost of sales (258,335) (176,732)
----------------------------------------------------------------------- ---------------- ---------------- ---------
Gross profit 306,531 218,577 +40%
Gross margin % 54.3% 55.3% -100 bps
Operating costs (245,904) (179,121)
Other income 112 120
Adjusted EBITDA 60,739 39,576 +53%
Adjusted EBITDA margin % 10.8% 10.0% +80 bps
Depreciation (7,906) (3,090)
Amortisation of other intangible assets (1,589) (1,163)
Adjusted EBIT 51,244 35,323 +45%
Adjusting items:
Amortisation of acquired intangible assets (2,312) (2,224)
Equity-settled share-based payment charges (4,355) (2,464)
Exceptional costs - warehouse relocation - (6,436)
Operating profit 44,577 24,199 +84%
Finance income 770 577
Finance expense (196) (79)
----------------------------------------------------------------------- ---------------- ---------------- ---------
Profit before tax 45,151 24,697 +83%
Tax (9,076) (4,867)
----------------------------------------------------------------------- ---------------- ---------------- ---------
Profit after tax for the period 36,075 19,830 +82%
======================================================================= ================ ================ =========
Basic earnings per share 2.55p 1.42p +80%
Diluted earnings per share 2.48p 1.39p +78%
Adjusted profit after tax for the period 41,515 28,872 +44%
Amortisation of acquired intangible assets (2,312) (2,224)
Share-based payment charges (4,355) (2,464)
Exceptional costs - warehouse relocation - (6,436)
Adjustment for tax 1,227 2,082
----------------------------------------------------------------------- ---------------- ---------------- ---------
Profit after tax for the period 36,075 19,830
----------------------------------------------------------------------- ---------------- ---------------- ---------
Adjusted profit for the period attributable to shareholders of the
company 34,695 23,361 +49%
Adjusted diluted earnings per share 2.91p 1.99p +46%
----------------------------------------------------------------------- ---------------- ---------------- ---------
Taxation
The effective rate of tax for the half-year was 20.1% (2019:
19.7%), which is more than the blended UK statutory rate of tax for
the year of 19%, principally due to depreciation of buildings in
excess of capital allowances.
Earnings per share
Basic earnings per share increased by 80% from 1.42p to 2.55p.
Adjusted diluted earnings per share was 2.91p, up 46% on the first
half of the prior year.
Consolidated statement of financial position
6 months 6 months
to to
31 August 31 August
2019 2018
GBP000 GBP000
--------------------------------------- ----------- -----------
Intangible assets 43,842 29,074
Property, plant and equipment 108,460 98,505
Right-of-use assets 15,691 -
Financial assets 298 585
Deferred tax asset 4,080 4,153
---------------------------------------- ----------- -----------
Non-current assets 172,371 132,317
Working capital (58,746) (53,597)
Lease liabilities (17,709) -
Net financial liabilities (27,166) (1,895)
Cash and cash equivalents 213,392 163,889
Interest bearing loans and borrowings (5,955) (8,337)
Deferred tax liability (2,047) (2,001)
Current tax liability (6,844) (4,707)
Net assets 267,296 225,669
======================================== =========== ===========
Liquidity and financial resources
Free cash flow was GBP30.1 million compared to GBP24.5 million
in the previous financial half-year, up 22% after inventory build
ahead of our rapid growth and the acquisition of the new brands.
Capital expenditure was GBP6.4 million and GBP19.4 million was
spent on the acquisition of the three new brands. The closing cash
balance for the group was GBP213.4 million and the net cash
balance, after deducting bank loans, was GBP207.4 million.
Consolidated cash flow statement
6 months 6 months
to to
31 August 31 August
2019 2018
GBP000 GBP000
-------------------------------------------- ------ ------------------- -----------
Profit for the period 36,075 19,830
Depreciation charges and amortisation 11,807 6,477
Share-based payments charge 4,355 2,464
Tax expense 9,076 4,867
Finance income (770) (577)
Finance expense 196 79
Increase in inventories (27,084) (5,054)
Increase in trade and other receivables (16,397) (17,569)
Increase in trade and other payables 38,630 45,216
---------------------------------------------------- ------------------- -----------
Operating cash flow 55,888 55,733
Capital expenditure and intangible
asset purchases (6,449) (31,185)
Acquisition of new brands (intangible (19,370) -
assets)
Free cash flow 30,069 24,548
Proceeds from the issue of ordinary
shares 771 2,087
Purchase of own shares by EBT (4,809) -
Finance income received 740 495
Finance expense paid (70) (79)
Dividend paid to non-controlling interests (3,400) -
Lease payments (2,798) -
Tax paid (3,792) (4,546)
Repayment of borrowings (1,191) (1,191)
---------------------------------------------------- ------------------- -----------
Net cash flow 15,520 21,314
Cash and cash equivalents at beginning
of period 197,872 142,575
---------------------------------------------------- ------------------- -----------
Cash and cash equivalents at end of
period 213,392 163,889
==================================================== =================== ===========
Outlook
We continue to maintain a highly positive outlook for online
fashion globally. The group's multi-brand approach appeals to a
widening consumer audience. The demand for affordable online
fashion continues unabated and provides the opportunity for
continued growth globally. Growth in the UK, our largest market,
remains strong, whilst international growth continues at a higher
rate.
Our focus is to maintain an outstanding customer proposition,
with the latest fashion at great prices, combined with excellent
customer service. To this end, we have a plan of continuous
investment in systems, infrastructure and technology to ensure we
offer an optimal online shopping experience. International
expansion will continue as we add more country-specific websites,
refine our customer proposition and raise brand awareness through
marketing and social media. Our scalable, multi-brand platform
provides the basis for expansion of the group through strategic
acquisitions. We are also committed to continuing to drive
improvements across our environmental responsibilities and are
constantly exploring ways to accelerate our sustainability
journey.
Group revenue growth for the year to 29 February 2020 is
expected to be 33% to 38%, with adjusted EBITDA margin for the year
to remain at around 10%, reflecting anticipated investments across
the financial year into the three brands acquired by the group in
the first half year. We reiterate our medium term guidance to
deliver revenue growth of at least 25% per annum and adjusted
EBITDA margin of around 10%.
John Lyttle Neil Catto
Chief Executive Chief Financial Officer
24 September 2019
Unaudited consolidated statement of comprehensive income
for the period ended 31 August 2019
Note 6 months to 6 months Year to 28
31 August to February
2019 31 August 2019
2018
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
--------------------------------------------- ---- ----------- ----------- ----------
Revenue 3 564,866 395,309 856,920
Cost of sales (258,335) (176,732) (387,926)
--------------------------------------------- ---- ----------- ----------- ----------
Gross profit 306,531 218,577 468,994
Distribution costs (129,979) (97,772) (207,083)
--------------------------------------------- ---- ----------- ----------- ----------
Exceptional distribution costs - (5,932) (6,162)
Other distribution costs (129,979) (91,840) (200,921)
--------------------------------------------- ---- ----------- ----------- ----------
Administrative expenses (132,087) (96,726) (203,470)
--------------------------------------------- ---- ----------- ----------- ----------
Exceptional administrative expenses - (504) (505)
Amortisation of acquired intangibles (2,312) (2,224) (4,449)
Other administrative expenses (129,775) (93,998) (198,516)
--------------------------------------------- ---- ----------- ----------- ----------
Other income 4 112 120 239
--------------------------------------------- ---- ----------- ----------- ----------
Operating profit 44,577 24,199 58,680
Finance income 770 577 1,320
Finance expense (196) (79) (144)
--------------------------------------------- ---- ----------- ----------- ----------
Profit before tax 5 45,151 24,697 59,856
Taxation (9,076) (4,867) (12,397)
Profit for the period 36,075 19,830 47,459
============================================= ==== =========== =========== ==========
Profit for the period attributable
to:
Owners of the parent company 29,551 16,309 37,772
Non-controlling interests 6,524 3,521 9,687
--------------------------------------------- ---- ----------- ----------- ----------
36,075 19,830 47,459
============================================= ==== =========== =========== ==========
Total other comprehensive income/(expense)
for the year, net of income tax
Loss/(gain) reclassified to profit
and loss during the year 1,311 (1,518) (2,337)
Fair value (loss)/gain on cash flow
hedges during the year (1) (35,982) (7,703) 2,229
Total comprehensive income for the
period 1,404 10,609 47,351
============================================= ==== =========== =========== ==========
Total comprehensive income attributable
to:
Equity attributable to owners of the
parent company (5,120) 7,088 37,664
Non-controlling interests 6,524 3,521 9,687
--------------------------------------------- ---- ----------- ----------- ----------
1,404 10,609 47,351
============================================= ==== =========== =========== ==========
Earnings per share 6
Basic 2.55p 1.42p 3.27p
Diluted 2.48p 1.39p 3.22p
--------------------------------------------- ---- ----------- ----------- ----------
1. Net fair value gains/losses on cash flow hedges will be
reclassified to profit or loss during the two years to 31 August
2021.
Unaudited consolidated statement of financial position
at 31 August 2019
Note 6 months 6 months Year to
to 31 August to 31 August 28 February
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
-------------------------------------- ---- ------------- ------------- ------------
Assets
Non-current assets
Intangible assets 43,842 29,074 27,165
Property, plant and equipment 108,460 98,505 108,498
Right-of-use assets 15,691 - -
Financial assets 298 585 3,756
Deferred tax 7 4,080 4,153 4,034
-------------------------------------- ---- ------------- ------------- ------------
Total non-current assets 172,371 132,317 143,453
Current assets
Inventories 93,890 53,302 66,806
Trade and other receivables 8 38,767 35,149 22,576
Financial assets 838 1,871 5,883
Current tax receivable - - 3,186
Cash and cash equivalents 213,392 163,889 197,872
Total current assets 346,887 254,211 296,323
Total assets 519,258 386,528 439,776
Liabilities
Current liabilities
Trade and other payables 9 (191,403) (142,048) (154,351)
Interest bearing loans and borrowings (2,382) (2,382) (2,382)
Lease liabilities (5,225) - -
Financial liabilities (16,023) (1,605) (1,421)
Current tax liability (6,844) (4,707) (3,939)
Total current liabilities (221,877) (150,742) (162,093)
Non-current liabilities
Interest bearing loans and borrowings (3,573) (5,955) (4,764)
Lease liabilities (12,484) - -
Financial liabilities (11,981) (2,161) (415)
Deferred tax 7 (2,047) (2,001) (2,102)
Total liabilities (251,962) (160,859) (169,374)
Net assets 267,296 225,669 270,402
====================================== ==== ============= ============= ============
Equity
Share capital 10 11,656 11,602 11,631
Share premium 606,579 604,555 606,086
Capital redemption reserve 100 100 100
Hedging reserve (26,868) (1,310) 7,803
EBT reserve (6,980) (347) (2,174)
Translation reserve (79) 6 -
Reconstruction reserve (515,282) (515,282) (515,282)
Non-controlling interests 22,772 12,551 19,064
Retained earnings 175,398 113,794 143,174
-------------------------------------- ---- ------------- ------------- ------------
Total equity 267,296 225,669 270,402
====================================== ==== ============= ============= ============
Unaudited consolidated statement of changes in equity
Share Share Capital Hedging EBT Transla-tion Recon-struction Non-controlling Retained Total
capital premium redemption reserve reserve reserve reserve interest earnings equity
reserve
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Balance at 28
February 2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,064 143,174 270,402
Impact of adoption
of IFRS 16 - - - - - - - (31) (501) (532)
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Restated balance
at 28 February
2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,033 142,673 269,870
Profit for the
period - - - - - - - 6,524 29,551 36,075
Other
comprehensive
income/(expense):
Loss reclassified
to profit and
loss in revenue - - - 1,311 - - - - - 1,311
Fair value loss on
cash flow hedges
during the year - - - (35,982) - - - - - (35,982)
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Total
comprehensive
income for the
period - - - (26,868) - - - 25,557 172,224 271,274
Issue of shares 25 493 - - (4,806) - - 250 - (4,038)
Share-based
payments credit - - - - - - - 365 3,990 4,355
Excess deferred
tax on
share-based
payments - - - - - - - - (816) (816)
Translation of
foreign
operations - - - - - (79) - - - (79)
Dividend paid to
non-controlling
interests - - - - - - - (3,400) - (3,400)
Balance at 31
August 2019 11,656 606,579 100 (26,868) (6,980) (79) (515,282) 22,772 175,398 267,296
================== ======= ======= ========== ======== ======= ============ =============== =============== ======== ========
Balance at 28
February 2018 11,496 602,578 100 7,911 (351) 168 (515,282) 8,761 97,398 212,779
Profit for the
period - - - - - - - 3,521 16,309 19,830
Other
comprehensive
income/(expense):
Gain reclassified
to profit and
loss - - - (1,518) - - - - - (1,518)
Fair value loss on
cash flow hedges
during the period - - - (7,703) - - - - - (7,703)
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Total
comprehensive
income for the
period - - - (9,221) - - - 3,521 16,309 10,609
Issue of shares 106 1,981 - - - - - - - 2,087
Issue of shares by
EBT - (4) - - 4 - - - - -
Share-based
payments credit - - - - - - - 269 2,195 2,464
Excess deferred
tax on
share-based
payments - - - - - - - - (2,108) (2,108)
Translation of
foreign
operations - - - - - (162) - - - (162)
Balance at 31
August 2018 11,602 604,555 100 (1,310) (347) 6 (515,282) 12,551 113,794 225,669
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Balance at 28
February 2018 11,496 602,578 100 7,911 (351) 168 (515,282) 8,761 97,398 212,779
Profit for the
year - - - - - - - 9,687 37,772 47,459
Other
comprehensive
income/(expense):
Gain reclassified
to profit and
loss in revenue - - - (2,337) - - - - - (2,337)
Fair value gain on
cash flow hedges
during the year - - - 2,229 - - - - - 2,229
------------------ ------- ------- ---------- -------- ------- ------------ --------------- --------------- -------- --------
Total
comprehensive
income for the
year - - - (108) - - - 9,687 37,772 47,351
Issue of shares 135 3,508 - - (1,823) - - - - 1,820
Share-based
payments credit - - - - - - - 616 4,662 5,278
Excess deferred
tax on
share-based
payments - - - - - - - - 3,342 3,342
Translation of
foreign
operations - - - - - (168) - - - (168)
Balance at 28
February 2019 11,631 606,086 100 7,803 (2,174) - (515,282) 19,064 143,174 270,402
================== ======= ======= ========== ======== ======= ============ =============== =============== ======== ========
Unaudited consolidated cash flow statement
for the period ended 31 August 2019
Note 6 months 6 months Year to
to 31 August to 31 August 28 February
2019 2018 2019
(unaudited) (unaudited) (audited)
GBP000 GBP000 GBP000
Cash flows from operating activities
Profit for the period 36,075 19,830 47,459
Adjustments for:
Share-based payments charge 4,355 2,464 5,278
Depreciation charges and amortisation 11,807 6,477 13,921
Loss on sale of fixed assets - - 24
Finance income (770) (577) (1,320)
Finance expense 196 79 144
Tax expense 9,076 4,867 12,397
--------------------------------------------- ---- ------------- ------------- ------------
60,739 33,140 77,903
Increase in inventories (27,084) (5,054) (18,558)
Increase in trade and other receivables 8 (16,397) (17,569) (4,935)
Increase in trade and other payables 9 38,630 45,216 57,513
Cash generated from operations 55,888 55,733 111,923
Tax paid (3,792) (4,546) (10,361)
Net cash generated from operating activities 52,096 51,187 101,562
Cash flows from investing activities
Acquisition of intangible assets (20,579) (1,584) (3,237)
Acquisition of property, plant and equipment (5,240) (29,601) (43,630)
Proceeds from the sale of fixed assets - - 59
Finance income received 740 495 1,249
Net cash used in investing activities (25,079) (30,690) (45,559)
Cash flows from financing activities
Proceeds from the issue of ordinary
shares 771 2,087 3,653
Share issue costs written off to share - - -
premium
Purchase of own shares by EBT (4,809) - (1,833)
Finance expense paid (70) (79) (144)
Dividend paid to non-controlling interests (3,400) - -
Lease payments (2,798) - -
Repayment of borrowings (1,191) (1,191) (2,382)
Net cash generated from financing activities (11,497) 817 (706)
Increase in cash and cash equivalents 15,520 21,314 55,297
============================================= ==== ============= ============= ============
Cash and cash equivalents at beginning
of period 197,872 142,575 142,575
--------------------------------------------- ---- ------------- ------------- ------------
Cash and cash equivalents at end of
period 213,392 163,889 197,872
============================================= ==== ============= ============= ============
Notes
(forming part of the interim report and accounts)
1 Accounting policies
General information
boohoo group plc is a public limited company incorporated and
domiciled in Jersey and listed on the Alternative Investment Market
(AIM) of the London Stock Exchange. Its registered office address
is: 12 Castle Street, St Helier, Jersey, JE2 3RT. The company was
incorporated on 19 November 2013.
Basis of preparation
The interim condensed financial statements for the six months to
31 August 2019 have been prepared in accordance with IAS 34,
"Interim Financial Reporting" as adopted by the European Union. The
interim financial statements should be read in conjunction with the
group's Annual Report and Accounts for the year ended 28 February
2019, prepared and approved by the directors in accordance with
International Financial Reporting Standards as adopted by the EU
("Adopted IFRSs"), IFRIC Interpretations and the Companies (Jersey)
Law 1991 applicable to companies reporting under IFRS.
The interim condensed financial statements contained in this
report are not audited and do not constitute statutory accounts
within the meaning of Companies (Jersey) Law 1991. The Annual
Report and Accounts for the year ended 28 February 2019 has been
filed with the Jersey Companies Registry. The auditors' reports on
those accounts were unqualified and did not include reference to
any matters on which the auditors were required to report by
exception under Companies (Jersey) Law 1991.
The group's business activities together with the factors that
are likely to affect its future developments, performance and
position are set out in the Business and Financial Reviews. The
Financial Review describes the group's financial position, cash
flows and bank facilities.
The interim financial statements are unaudited and were approved
by the board of directors on 24 September 2019.
Going concern
The directors have reviewed the group's forecast and
projections, including assumptions concerning capital expenditure
and expenditure commitments and their impact on cash flows, and
have a reasonable expectation that the group has adequate financial
resources to continue its operations for the foreseeable future.
For this reason, they have continued to adopt the going concern
basis in preparing the financial statements.
In preparing the interim announcement, the directors have also
made reasonable and prudent judgements and estimates and prepared
the interim announcement on the going concern basis. The interim
announcement and management report contained herein give a true and
fair view of the assets, liabilities, financial position and profit
and loss of the group.
Accounting policies
The interim financial statements have been prepared in
accordance with the accounting policies set out in the group's
Annual Report and Accounts for the year ended 28 February 2019,
except as noted below in the change of accounting policy.
Change of accounting policy
The group has adopted IFRS 16, "Leases", effective for
accounting periods commencing 1 January 2019 and applied the
modified retrospective approach and the exemption for low value or
short leases. Comparatives have not been restated and the
cumulative impact of adoption has been recognised as a decrease in
net assets and a corresponding decrease in retained earnings as at
1 March 2019. The right-of-use asset has been measured at the
carrying amount as if the standard had been applied since the
commencement of the lease, discounted using the incremental
borrowing rate of 1.8% at transition. The present value of the
lease liabilities is discounted at the group's incremental
borrowing cost.
The lease liability brought on to the balance sheet at
transition is GBP18.5 million and the right of use asset GBP16.1
million. The overall decrease in retained earnings is GBP0.5
million. The impact on the income statement is not expected to
affect profit before tax for the year to 29 February 2020, with
adjusted EBITDA increasing by GBP4.9 million, depreciation
increasing by GBP4.7 million and finance costs increasing by GBP0.2
million. The effect in the first half year will result in adjusted
EBITDA increasing by GBP2.4 million, depreciation increasing by
GBP2.4 million and finance costs increasing by GBP0.1 million.
Within the cash flow statement, there are changes in the
classification of cash flows, with GBP2.6 million of lease payments
classified as financing cash flows and GBP0.1 million as interest
payments.
The impact on the opening balance sheet is as follows: 1 March 2019
GBP000
------------------------------------------------------- ------------
Non-current assets
Right-of-use assets - property, plant & equipment 16,116
Deferred income tax asset 109
Current liabilities
Financial liabilities - lease liabilities (4,933)
Accruals 1,791
Non-current liabilities
Financial liabilities - lease liabilities (13,615)
Total decrease in retained earnings at 1 March 2019 (532)
--------------------------------------------------------- ------------
Reconciliation of the lease liabilities at 1 March 2019 to the operating lease commitments 1 March 2019
at 28 February 2019:
GBP000
-------------------------------------------------------------------------------------------- ------------
Operating lease commitments disclosed at 28 February 2019 6,259
Third-party warehouse services contract - revised treatment as operating lease 12,800
---------------------------------------------------------------------------------------------- ------------
Restated operating lease commitments at 28 February 2019 19,059
Discounted using the lessee's incremental borrowing rate at the date of initial application (511)
Additional lease liability recognised as at 1 March 2019 18,548
---------------------------------------------------------------------------------------------- ------------
Analysed as:
Current lease liabilities 4,933
Non-current lease liabilities 13,615
---------------------------------------------------------------------------------------------- ------------
From 1 March 2019 the group's lease policy is summarised as
follows:
A right-of-use asset and lease liability is recognised at the
lease commencement date. The right-of-use asset is initially
recognised at cost, comprising the initial amount of the lease
liability plus any initial direct costs incurred, less any lease
incentives received. The right-of-use asset is subsequently
depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the asset or
the end of the lease term. The lease liability is initially
measured as the present value of the lease payments at the
commencement date, discounted using the incremental borrowing rate.
The lease liability is measured at amortised cost using the
effective interest method. It is re-measured when there is a change
in future lease payments arising from a change in an index or a
rate or a change in the group's assessment of whether it will
exercise an extension or termination option. When the lease
liability is re-measured, a corresponding adjustment is made to the
right-of-use asset.
2 Principal risks and uncertainties
The board considers the principal risks and uncertainties which
could impact the group over the remaining six months of the
financial year to 29 February 2020 to be unchanged from those set
out in the group's Annual Report and Accounts for the year ended 28
February 2019, which in summary are: competition risk; fashion and
consumer demands risk; systems and technical risk; supply chain
risk; loss of key facilities; people risk; customer
dissatisfaction; and financial risk. These are set out in detail on
pages 20 to 22 of the group's Annual Report and Accounts for the
year ended 28 February 2019, a copy of which is available on the
group's website, www.boohooplc.com. In addition, the group has
identified, as far as possible, the potential impacts of the UK's
leaving the EU without a deal.
3 Segmental analysis
6 months to 31 August 2019
boohoo PrettyLittleThing Nasty Gal Other Total
GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------------- ----------------- --------- ------- ---------
Revenue 281,033 237,609 43,850 2,374 564,866
Cost of sales (130,287) (106,228) (20,086) (1,734) (258,335)
---------------------------- --------- ----------------- --------- ------- ---------
Gross profit 150,746 131,381 23,764 640 306,531
Distribution costs (60,741) (59,039) (9,731) (468) (129,979)
---------------------------- --------- ----------------- --------- ------- ---------
Segment result 90,005 72,342 14,033 172 176,552
Administrative expenses
- other - - - - (129,775)
Amortisation of acquired
intangibles - - - - (2,312)
Other income - - - - 112
---------------------------- --------- ----------------- --------- ------- ---------
Operating profit - - - - 44,577
Finance income - - - - 770
Finance expense - - - - (196)
Profit before tax - - - - 45,151
============================ ========= ================= ========= ======= =========
6 months to 31 August 2018
boohoo PrettyLittleThing Nasty Gal Other Total
GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------------- ----------------- --------- ------- ---------
Revenue 209,006 168,612 17,691 - 395,309
Cost of sales (97,468) (72,013) (7,251) - (176,732)
---------------------------- --------- ----------------- --------- ------- ---------
Gross profit 111,538 96,599 10,440 - 218,577
Distribution costs (46,671) (40,602) (4,567) - (91,840)
Exceptional distribution
costs - (5,932) - (5,932)
---------------------------- --------- ----------------- --------- ------- ---------
Segment result 64,867 50,065 5,873 - 120,805
Administrative expenses
- other - - - - (93,998)
Exceptional administrative
expenses - - - - (504)
Amortisation of acquired
intangibles - - - - (2,224)
Other income - - - - 120
---------------------------- --------- ----------------- --------- ------- ---------
Operating profit - - - - 24,199
Finance income - - - - 577
Finance expense - - - - (79)
Profit before tax - - - - 24,697
============================ ========= ================= ========= ======= =========
Year to 28 February 2019
boohoo PrettyLittleThing Nasty Gal Total
GBP000 GBP000 GBP000 GBP000
--------------------------- --------- ----------------- --------- ---------
Revenue 434,565 374,445 47,910 856,920
Cost of sales (204,474) (162,687) (20,765) (387,926)
---------------------------- --------- ----------------- --------- ---------
Gross profit 230,091 211,758 27,145 468,994
Distribution costs (98,901) (90,000) (12,020) (200,921)
Exceptional distribution
costs - (6,162) - (6,162)
Segment result 131,190 115,596 15,125 261,911
Administrative expenses
- other - - - (198,516)
Exceptional administrative
expenses - - - (505)
Amortisation of acquired
intangibles - - - (4,449)
Other income - - - 239
---------------------------- --------- ----------------- --------- ---------
Operating profit - - - 58,680
Finance income - - - 1,320
Finance expense - - - (144)
---------------------------- --------- ----------------- --------- ---------
Profit before tax - - - 59,856
============================ ========= ================= ========= =========
Revenue by geographic region
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
--------------- -------------------------- -------------------------- -----------------
UK 314,954 234,057 488,199
Rest of Europe 87,486 51,250 115,124
USA 110,729 68,171 166,262
Rest of world 51,697 41,831 87,335
---------------- -------------------------- -------------------------- -----------------
564,866 395,309 856,920
=============== ========================== ========================== =================
4 Other income
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
-------------- -------------------------- -------------------------- -----------------
Rental income 112 120 239
=============== ========================== ========================== =================
5 Profit before tax
Profit before tax is stated after charging: 6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
------------------------------------------- -------------------------- -------------------------- -----------------
Operating lease rentals for buildings - 988 2,235
Equity-settled share-based payment charges 4,355 2,464 5,278
Acquisition and restructuring costs 1,261 - -
Exceptional items - warehouse relocation - - 6,667
Depreciation of property, plant and
equipment 5,513 3,090 6,972
Depreciation of right-of-use assets 2,393 - -
Amortisation of intangible assets 1,589 1,163 2,500
Amortisation of acquired intangible assets 2,312 2,224 4,449
------------------------------------------- -------------------------- -------------------------- -----------------
6 Earnings per share
Basic earnings per share is calculated by dividing profit after
tax attributable to members of the holding company by the weighted
average number of shares in issue during the year. Own shares held
by the Employee Benefit Trust are eliminated from the weighted
average number of shares. Diluted earnings per share is calculated
by dividing the profit after tax attributable to members of the
holding company by the weighted average number of shares in issue
during the year, adjusted for potentially dilutive share
options.
6 months 6 months Year to
to 31 August to 31 August 28 February
2019 2018 2019
------------------------------------------ -------------- -------------- --------------
Weighted average shares in issue
for basic earnings per share 1,161,077,443 1,149,311,146 1,154,130,568
Dilutive share options 32,065,494 24,897,209 20,304,294
------------------------------------------- -------------- -------------- --------------
Weighted average shares in issue
for diluted earnings per share 1,193,142,937 1,174,208,355 1,174,434,862
=========================================== ============== ============== ==============
Earnings attributable to owners
of the parent company (GBP000) 29,551 16,309 37,772
Basic earnings per share 2.55p 1.42p 3.27p
Diluted earnings per share 2.48p 1.39p 3.22p
------------------------------------------- -------------- -------------- --------------
Earnings attributable to owners
of the parent company (GBP000) 29,551 16,309 37,772
Adjusting items:
Amortisation of intangible assets
arising on acquisitions 2,312 2,224 4,449
Share-based payment charges 4,355 2,464 5,278
Exceptional costs - warehouse relocation - 6,436 6,667
Adjustment for tax (1,227) (2,082) (3,050)
Adjustment for non-controlling interests (296) (1,990) (2,335)
------------------------------------------- -------------- -------------- --------------
Adjusted earnings 34,695 23,361 48,781
------------------------------------------- -------------- -------------- --------------
Adjusted basic earnings per share 2.99p 2.03p 4.23p
Adjusted diluted earnings per share 2.91p 1.99p 4.15p
------------------------------------------- -------------- -------------- --------------
7 Deferred tax
Assets
IFRS 16 modified Depreciation in excess of Share-based payments Total
retrospective capital allowances
GBP000 GBP000 GBP000 GBP000
--------------------------- --------------------------- --------------------------- --------------------- --------
At 28 February 2018 - 160 6,319 6,479
Recognised in statement of
comprehensive income - (160) (58) (218)
Credit in equity - - (2,108) (2,108)
--------------------------- --------------------------- --------------------------- --------------------- --------
At 31 August 2018 - - 4,153 4,153
--------------------------- --------------------------- --------------------------- --------------------- --------
At 28 February 2019 - 87 3,947 4,034
Recognised in statement of
comprehensive income (24) 197 580 753
Debit in equity 109 - (816) (707)
--------------------------- --------------------------- --------------------------- --------------------- --------
At 31 August 2019 85 284 3,711 4,080
=========================== =========================== =========================== ===================== ========
Liabilities
Capital allowances in excess of Business combinations Total
depreciation
GBP000 GBP000 GBP000
----------------------------------------- ----------------------------------------- ---------------------- --------
At 28 February 2018 - (2,101) (2,101)
Recognised in statement of comprehensive
income (147) 247 100
----------------------------------------- ---------------------- --------
At 31 August 2018 (147) (1,854) (2,001)
----------------------------------------- ----------------------------------------- ---------------------- --------
At 28 February 2019 (495) (1,607) (2,102)
Recognised in statement of comprehensive
income (192) 247 55
At 31 August 2019 (687) (1,360) (2,047)
========================================= ========================================= ====================== ========
Recognition of the deferred tax assets is based upon the
expected generation of future taxable profits. The deferred tax
asset is expected to be recovered in more than one year's time and
the deferred tax liability will reverse in more than one year's
time as the intangible assets are amortised.
8 Trade and other receivables
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
------------------------------------- -------------------------- -------------------------- -----------------
Trade receivables 28,012 23,405 14,201
Prepayments 9,560 10,482 5,126
Accrued income 440 1,262 386
Taxes and social security receivable 755 - 2,863
------------------------------------- -------------------------- -------------------------- -----------------
38,767 35,149 22,576
===================================== ========================== ========================== =================
9 Trade and other payables
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
------------------------------------------- -------------------------- -------------------------- -----------------
Trade payables 28,708 36,945 33,930
Amounts owed to related party undertakings - - -
Other creditors 2,301 1,242 1,730
Accruals 104,109 77,587 81,930
Provision for liabilities 32,046 13,628 18,912
Deferred income 12,705 6,927 8,453
Taxes and social security payable 11,534 5,719 9,396
------------------------------------------- -------------------------- -------------------------- -----------------
191,403 142,048 154,351
=========================================== ========================== ========================== =================
10 Share capital
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
------------------- -------------------------- -------------------------- -----------------
At start of period 11,631 11,496 11,496
Share issues 25 106 135
------------------- -------------------------- -------------------------- -----------------
At end of period 11,656 11,602 11,631
=================== ========================== ========================== =================
Share capital at period end: 1,165,576,196 authorised and fully
paid ordinary shares of 1p each (2019: 1,160,160,400). No dividends
have been paid or are payable by the parent company for the period
ended 31 August 2019 (2019: GBPnil).
11 Capital commitments
Capital expenditure contracted for at the end of the reporting
period but not yet incurred is as follows:
6 months to 31 August 2019 6 months to 31 August 2018 Year to
28 February 2019
GBP000 GBP000 GBP000
------------------------------ -------------------------- -------------------------- -----------------
Property, plant and equipment 9,000 6,870 -
------------------------------ -------------------------- -------------------------- -----------------
12 Contingent liabilities
From time to time, the group can be subject to various legal
proceedings and claims that arise in the ordinary course of
business which may include cases relating to the group's brands and
trading names. 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 and
that the outflow can be reliably measured.
As at 31 August 2019, there are no pending claims or proceedings
against the group, which in the opinion of the directors are
expected to have a material adverse effect on its liquidity or
operations.
Appendices
Growth rates on prior period revenue by region
Revenue by period for the year to 29 February 2020 (FY20)
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August
--------------------------------- -------------------------------
FY20 FY19 yoy yoy FY20 FY19 yoy yoy FY20 FY19 yoy yoy
% % CER % % % %
CER CER
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Total 254,321 183,561 39% 39% 310,545 211,748 47% 47% 564,866 395,309 43% 43%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Revenue by region
-------------------------------------------- -------- -------- ---- ----- -------- -------- -----
UK 140,569 110,738 27% 27% 174,385 123,319 41% 41% 314,954 234,057 35% 35%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- -----
ROE 38,252 22,257 72% 71% 49,234 28,993 70% 68% 87,486 51,250 71% 69%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
USA 51,336 31,389 64% 66% 59,393 36,782 61% 64% 110,729 68,171 62% 65%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
ROW 24,164 19,177 26% 28% 27,533 22,654 22% 23% 51,697 41,831 24% 25%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Revenue by period for the year to 28 February 2019 (FY19)
GBP'000 4m to 31 December 2m to 28 February 12m to 28 February
--------------------------------- -------------------------------
FY19 FY18 yoy yoy FY19 FY18 yoy yoy FY19 FY18 yoy yoy
% % CER % % % %
CER CER
-------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- -----
Total 328,231 228,215 44% 43% 133,375 88,710 50% 50% 856,920 579,800 48% 47%
-------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- -----
Revenue by region
-------------------------------------------- -------- ------- ----- ----- -------- -----
UK 179,952 135,642 33% 33% 74,185 56,592 31% 31% 488,199 355,614 37% 37%
-------- -------- ---- ------- -------- ------- ----- ----- -------- -----
ROE 44,431 28,232 57% 54% 19,443 10,258 90% 86% 115,124 66,281 74% 67%
-------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- -----
USA 70,427 39,618 78% 80% 27,664 13,475 105% 101% 166,262 92,690 79% 81%
-------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- -----
ROW 33,421 24,723 35% 32% 12,083 8,385 44% 44% 87,335 65,215 34% 30%
-------- -------- ---- ------- -------- ------- ----- ----- -------- -------- ---- -----
GBP'000 3m to 31 May 3m to 31 August 6m to 31 August
--------------------------------- -------------------------------
FY19 FY18 yoy yoy FY19 FY18 yoy yoy FY19 FY18 yoy yoy
% % CER % % % %
CER CER
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Total 183,561 120,077 53% 52% 211,748 142,798 48% 47% 395,309 262,875 50% 49%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
Revenue by region
-------------------------------------------- -------- -------- ---- ----- -------- -----
UK 110,738 74,532 49% 49% 123,319 88,849 39% 39% 234,057 163,381 43% 43%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -----
ROE 22,257 12,220 82% 71% 28,993 15,571 86% 73% 51,250 27,791 84% 72%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
USA 31,389 17,906 75% 78% 36,782 21,690 70% 71% 68,171 39,596 72% 74%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
ROW 19,177 15,419 24% 22% 22,654 16,688 36% 31% 41,831 32,107 30% 27%
-------- -------- ---- ------- -------- -------- ---- ----- -------- -------- ---- -----
CER in this appendix for the year ended 28 February 2019 is
calculated using exchange rates prevailing during the year ending
28 February 2019. Nomenclature: ROE - rest of Europe; ROW - rest of
world; yoy - year-on-year; CER - constant exchange rate
Brand KPIs
boohoo
6 months 6 months to Change
to 31 August
31 August 2018(5)
2019
Active customers(1) 8.4 million 7.0 million +20%
Number of orders 9.7 million 7.5 million +29%
Order frequency(2) 2.11 2.07 +2%
Conversion rate to sale (3) 3.3% 3.1% +19bps
Average order value(4) GBP43.41 GBP40.40 +7%
Number of items per basket 3.30 3.03 +9%
----------------------------- ------------ ------------ -------
PrettyLittleThing
6 months 6 months to Change
to 31 August
31 August 2018(5)
2019
Active customers(1) 5.7 million 4.0 million +43%
Number of orders 9.0 million 6.6 million +36%
Order frequency(2) 2.97 2.83 +5%
Conversion rate to sale (3) 3.6% 3.3% +26bps
Average order value(4) GBP42.15 GBP40.09 +5%
Number of items per basket 2.96 2.81 +5%
------------------------------ ------------ ------------ -------
Nasty Gal
6 months 6 months to Change
to 31 August
31 August 2018(5)
2019
Active customers(1) 1.5 million 0.7 million +112%
Number of orders 1.3 million 0.5 million +150%
Order frequency(2) 1.55 1.38 +13%
Conversion rate to sale (3) 2.2% 1.9% +37bps
Average order value(4) GBP50.87 GBP48.77 +4%
Number of items per basket 3.44 2.90 +18%
------------------------------ ------------ ------------ -------
1. Defined as having shopped in the last 12 months
2. Defined as number of orders in last 12 months divided by number of active customers
3. Defined as the percentage of website orders taken to internet sessions
4. Calculated as gross sales including sales tax divided by the number of orders
5. Prior period numbers restated to include marketplace data
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR USRBRKRAKUAR
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September 25, 2019 02:00 ET (06:00 GMT)
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