TIDMFOOT
RNS Number : 7813R
Footasylum PLC
19 June 2018
19 June 2018
This announcement contains inside information
Footasylum plc
Full Year Results
Strong revenue growth across all channels and product
categories
Footasylum plc ("Footasylum" or the "Company"), the UK-based
fashion retailer focusing on branded footwear and apparel, today
announces its full year results for the 52 weeks ended 24 February
2018 ("FY18").
FY18 FY17 Change
----------------------------------- ----- ----- ------
Revenue (GBPm) 194.8 147.0 33%
----------------------------------- ----- ----- ------
Adjusted EBITDA (GBPm)1 12.5 11.2 12%
----------------------------------- ----- ----- ------
Adjusted EBITDA margin 6.4% 7.6%
----------------------------------- ----- ----- ------
Adjusted profit before tax (GBPm)2 8.4 8.1 4%
----------------------------------- ----- ----- ------
Non-GAAP adjusted diluted EPS (p)3 6.16 5.83 6%
----------------------------------- ----- ----- ------
Financial highlights
-- Strong underlying performance in FY18
-- Revenue up 33% to GBP194.8m, (FY17: GBP147.0m) with strong
growth across all channels and product categories
o Online sales up 41%, now accounting for 30% of total revenue
(FY17: 29%)
-- Adjusted EBITDA up 12% to GBP12.5m (FY17: GBP11.2m)
o Adjusted EBITDA margin of 6.4% (FY17: 7.6%), down 120bps in
FY18, due to lower gross margin and planned investments in central
functions
-- Adjusted profit before tax up 4% to GBP8.4m (FY17: GBP8.1m)
-- Profit before tax of GBP1.9m (FY17: GBP8.1m), after
exceptional items of GBP6.0m and the share-based payment charge of
GBP0.4m (FY17: nil)
-- Cash balances increased to GBP11.4m at year end, reflecting
IPO proceeds and growth of the Company (25 February 2017:
GBP2.8m)
Operational highlights
-- Opened 10 new stores, refitted two stores and upsized seven stores
-- Continued investment in the footasylum.com website and
further investment in other online platforms with the launch of an
own brand website, and apps for Footasylum, Kings Will Dream and
SEVEN
-- New wholesale channel creating opportunities for own brands
-- Distribution space doubled to 278,000 sq ft, with the opening
of a second warehouse facility in Rochdale
-- Investment in a new in-house studio in Manchester for design, photography and videography
-- Barry Bown, former CEO of JD Sports Fashion plc, joined the
Company in a consulting role on 1 March 2018 and joined the Board
as Executive Chairman on 1 June 2018
-- Headcount grew by 21% to 2,270 employees at the year end (25 February 2017: 1,869)
Clare Nesbitt, Chief Executive of Footasylum, commented:
"We are pleased to report a strong performance for the financial
year, our first as a quoted company following our successful IPO
last November. We have delivered broad-based growth across all of
our channels and product categories, while also continuing to
invest in our infrastructure and talent in order to support further
long-term expansion.
While our core target market of the 16 to 24-year-old consumer
has proved to be comparatively resilient in a downturn, our trading
since the beginning of the new financial year has undoubtedly been
impacted by the widely documented weak consumer sentiment on the
high street.
Despite this, we are confident that continued investment in
digital and in our stores will allow the Company to deliver strong
revenue growth for the full year in line with market expectations.
This includes increased investment in our consumer offering ahead
of our usual peak trading period in the second half and delivering
additional store upsizes alongside new store openings. However,
this will have an associated increase in both expected capital
expenditure and property costs for the current year and as a
result, we now anticipate that, adjusted EBITDA for FY19 is likely
to show more modest growth than in FY18.
In the longer-term, we remain confident that the Company's
differentiated, product-led, multi-channel proposition, combined
with strong partnerships with core suppliers, will underpin its
continued progress."
Investor and analyst meeting
A meeting for analysts will be held today at the Andaz Hotel, 40
Liverpool St, London EC2M 7QN commencing at 9.00am. Please contact
Powerscourt on the details below for further information or to
confirm attendance. A copy of the presentation will be available on
the Company's Investor website:
http://investors.footasylum.com/.
Footasylum expects to announce its results for the six months
ending 25 August 2018 on 16 October 2018.
Enquiries:
Footasylum plc Tel: +44 (0) 1706 714 265
Clare Nesbitt, Chief Executive Officer
Barry Bown, Executive Chairman
Danielle Davies, Chief Financial Officer
GCA Altium Limited (Financial and Nominated Advisor) Tel: + 44 (0) 20 7484 4040
Phil Adams
Sam Fuller
Liberum Capital Limited (Broker) Tel: +44 (0) 20 3100 2222
John Fishley
Jill Li
Powerscourt (Financial Public Relations) Tel: + 44 (0) 20 7250
1446
Rob Greening
Lisa Kavanagh
Isabelle Saber
Customer website: https://www.footasylum.com/
Investor website: http://investors.footasylum.com/
Notes
(1) Adjusted EBITDA is stated as earnings before interest, tax,
depreciation, amortisation, exceptional items and the share-based
payment charge.
(2) Adjusted profit before tax is stated as adjusted EBITDA
after interest, depreciation and amortisation.
(3) Non-GAAP adjusted diluted earnings per share ("EPS") is
stated as profit after tax ("PAT") before exceptional items and the
share-based payment charge per the diluted issued ordinary shares
as at 24 February 2018 for both FY18 and FY17.
Disclaimer
This announcement contains inside information for the purposes
of article 7 of EU Regulation 596/2014. The person responsible for
making this announcement on behalf of Footasylum is Nancy Kelsall,
Company Secretary.
Certain statements in this financial report are forward looking.
Where the financial report includes forward-looking statements,
these are made by the Directors in good faith based on the
information available to them at the time of their approval of this
report. Such statements are based on current expectations and are
subject to a number of risks and uncertainties, including both
economic and business risk factors that could cause actual events
or results to differ materially from any expected future events or
results referred to in these forward-looking statements. Unless
otherwise required by applicable law, regulation or accounting
standards, the Group undertakes no obligations to update any
forward-looking statements whether as a result of new information,
future events or otherwise. This announcement does not constitute
an invitation to underwrite, subscribe for or otherwise acquire or
dispose of any Footasylum plc shares in the UK, the US, under the
US Securities Act 1933 or in any other jurisdiction.
About Footasylum
Footasylum is a UK-based fashion retailer focusing on the
branded footwear and apparel markets. The Company retails
"on-trend" product ranges which are predominantly aimed at 16 to
24-year-old fashion-conscious consumers and are sourced from an
extensive stable of third-party and own brands. These include
well-known sports and casual footwear and apparel brands, as well
as up-and-coming brands and own label products.
Examples of third-party brands include: adidas; Nike; The North
Face; Gym King; Converse; New Balance; EA7; Vans; Nicce London;
Under Armour; Tommy Hilfiger; and Calvin Klein. Examples of
Footasylum's own brands include: Kings Will Dream and Alessandro
Zavetti.
The Company operates a multi-channel model which combines a
65-strong store estate - in a variety of high street, mall and
retail park locations in cities and towns throughout Great Britain
- with a fast-growing online platform and a recently launched
wholesale arm for distributing its own brand ranges via a network
of partners.
Footasylum was founded in 2005 and the Company's ordinary shares
were admitted to trading on AIM in November 2017.
EXECUTIVE CHAIRMAN'S STATEMENT
This is Footasylum's first full year results as a public company
following our admission to trading on AIM in November 2017 (the
"IPO"). It is also my first opportunity, having taken on the role
of Executive Chairman in June 2018, to welcome shareholders who
have joined the Company on or following the IPO. The Board was
delighted with the support we received for the IPO which, together
with the refinancing of our banking facilities in July 2017, will
enable us to continue to invest and capitalise on further growth
opportunities in the years to come.
FY18 was another good year of disciplined growth for the
Company, with revenue up 33 per cent to GBP194.8 million. Our
adjusted EBITDA increased by 12 per cent to GBP12.5 million and we
invested in our infrastructure and talent to support further
growth.
I would like to thank John Wardle who, as our previous Executive
Chairman and before that as Chief Executive Officer, played such an
important leadership role in helping to build Footasylum into the
retailer we are today. I bring many years of experience and
contacts in the industry to Footasylum, especially when it comes to
developing strong brand-retailer relationships, so I am confident
that we can continue to enhance our competitive position in the
market.
Exciting shopping experiences
I am enthused by Footasylum's prospects and the ability of its
people to deliver value for our shareholders. This is a great time
to join the business, after more than 10 years that have seen the
Company create an exciting shopping experience on the high street,
in retail malls and, importantly, online. We have much work ahead
of us as we expand our thinking as well as our retail footprint but
we stand ready as a business that is fit for a digital age. Our
online sales are growing and we are investing in the technology we
need to continue improving consumer engagement.
Governance and financial discipline
While Footasylum continues to be an agile and dynamic business I
am pleased to report that we are fully committed to supporting high
standards of corporate governance and applying strong financial
discipline to our growth plans and day-to-day operations.
We operate appropriate measures to comply with the Quoted
Companies Alliance Code for small and mid-sized quoted companies
across the organisation. This has helped us enhance our corporate
governance arrangements and we hope it will encourage positive
engagement between the Company and its shareholders.
At the time of our IPO the leadership team was further
strengthened with the appointment of two new Non-Executive
Directors to our Board, Stephen Robertson and Brendan Hynes. We are
already benefiting from their experience and knowledge and look
forward to their contributions in the years to come.
Capital structure and dividend policy
The Board is satisfied that the current capital and funding
structure of the Company is robust, allowing it to invest in the
systems and stores that will fuel future growth. In the short-term,
as disclosed at the time of the IPO, we will retain the Company's
earnings for re-investment to continue funding this growth.
Therefore, we are not proposing a final dividend for FY18.
Ultimately, it is the Board's intention to pursue a progressive
dividend policy which will be balanced against the need to retain
sufficient earnings to expand and develop the Company.
Our COLLEAGUES
In FY18, we have expanded and restructured several of our teams
and attracted and retained top talent who remain committed to
delivering on our strategic objectives. We are a business focused
on delivering sustainable long-term growth and our colleagues
across the business are committed to this objective.
I would like to take this opportunity to thank our senior
management team and all our colleagues for their hard work, energy,
innovation and seamless teamwork that has delivered an exceptional
consumer experience and business performance during the year.
The future
The UK retail environment remains uncertain, not least with the
ongoing negotiations of the UK's exit from the European Union and
the impact of weak consumer sentiment on the high street. However,
we have a differentiated, multi-channel business model that
positions us well for robust long-term growth.
We see significant opportunities to deliver further growth
through disciplined store upsizes and openings and the continued
expansion of our digital sales channels. The Company is currently
targeting a number of store upsizes in key locations and up to
eight new stores per annum in the medium-term, with a view to
building a total estate of around 150 stores in the UK. Footasylum
is also developing a greater digital presence and is targeting 50
per cent of total revenue to come from online and wholesale
channels in the medium-term.
Footasylum is well-positioned to take advantage of the
opportunities that lie ahead. With our brand differentiation and
deep understanding of our consumers, a growing online presence in
both domestic and international markets and a dynamic diversified
business model, that now includes a meaningful wholesale operation,
I am excited about the Company's future.
Current trading and outlook
While our core target market of the 16 to 24-year-old consumer
has proved to be comparatively resilient in a downturn, our trading
since the beginning of the new financial year has undoubtedly been
impacted by the widely documented weak consumer sentiment on the
high street.
Despite this, the Board is confident that continued investment
in digital and in our stores will allow the Company to deliver
strong revenue growth for the full year in line with market
expectations. This includes increased investment in our consumer
offering ahead of our usual peak trading period in the second half
and delivering additional store upsizes alongside new store
openings. However, this will have an associated increase in both
expected capital expenditure and property costs for the current
year and as a result, the Board now anticipates that, adjusted
EBITDA for FY19 is likely to show more modest growth than in
FY18.
In the longer-term, the Board remains confident that the
Company's differentiated, product-led, multi-channel proposition,
combined with strong partnerships with core suppliers, will
underpin its continued progress.
Barry Bown
EXECUTIVE CHAIRMAN
CHIEF EXECUTIVE OFFICER'S STATEMENT
The key pillars to our growth strategy remain the continued
development of our online and digital marketing platforms, our
disciplined UK store roll out and the expansion of our new
wholesale operation alongside the growth of our own brand
products.
Phase of growth
We have built an energetic, well-respected business since
opening our first Footasylum store in March 2006. From day one our
strategic objective was to collaborate and bring together global
brands and smaller niche brands, including our own brands, to serve
the consumer in a hyper-personal way. Our stores are all tailored
towards their local market and we are building on our digital
capabilities, both to boost our online sales and to launch engaging
social content. We understand our target audience, and through our
stores and digital content our target audience understands us - as
specialists across the full spectrum of urban fashion.
We continue to specialise in identifying, developing and driving
the trends that shape the markets we operate in. Footasylum is in a
significant phase of investment - we are not a 'like-for-like'
business. We are pushing forwards and investigating new directions
based on the strong platform we have created, and the investments
we have made in the last year in our people, digital capabilities,
stores and infrastructure.
Our IPO in November 2017 was also a significant step for our
business. It takes us to the next level, imposing controls that we
have largely taken on voluntarily over the years, but also
providing the funds we need for future growth and enabling us to
develop relationships with shareholders who have a new interest in
our business.
Strong UNDERLYING financial PERFORMANCE
The UK's retail market remains a tough trading environment.
However, the overall value of the clothing and footwear market in
the UK is still expected to grow over the next five years,
according to data from GlobalData, and we believe that our highly
differentiated offering and hyper-local approach gives us an
edge.
For FY18, I am delighted to report to all our shareholders that
we made strong progress on sales, both online and in our stores.
Combined with careful cost control throughout the year this has
helped us deliver good underlying growth in profits.
Total revenue was GBP194.8 million in FY18, an increase of 33
per cent compared to the prior year (FY17: GBP147.0 million).
Digital sales played a significant role in the overall growth,
contributing GBP59.0 million in FY18, an increase of 41 per
cent.
Revenue from stores rose to GBP133.2 million (FY17: GBP105.0
million), reflecting good underlying growth as well as 10 new
Footasylum store openings during the year and the successful
upsizing of a number of stores in existing locations.
Reflecting investments made to meet the demands of our growing
consumer base, adjusted EBITDA grew by 12 per cent to GBP12.5
million (FY17: GBP11.2 million). Our adjusted EBITDA margin was, as
expected, slightly lower than FY17, as a function of the gross
margin reduction and due to the planned investments we made in the
business during the year. Non-GAAP adjusted diluted earnings per
share grew by 6 per cent to 6.16 pence (FY17: 5.83 pence).
Our strategic priorities
While we are pushing boundaries and embracing the future, our
core target audience remains on-trend 16 to 24-year-olds. Our
people sweat the small stuff, understand the details that matter to
our consumers, and take a visionary approach to identifying the
trends that will drive our product offering.
The key pillars of our growth strategy continue to be the
development of our online and digital marketing platforms, our
disciplined UK store roll out, including upsizing in a number of
key locations, and the expansion of our new wholesale operation
alongside the growth of our own brand products. We have also
expanded our womenswear and childrenswear product offers and we
will further integrate them into the Footasylum store and online
estate.
Key investments
In FY18 we invested further in the technology, people and
infrastructure that we need to support our growth online and
through our stores. The refocusing of our marketing function, to
create teams dedicated to brand, marketing and creativity, has
added experience and structure that will enable us to plan and
execute the creative campaigns needed to engage and entertain our
consumers. Our investment in a new 10,000 sq ft studio in
Manchester also strengthens our in-house design, photography and
videography capabilities to support our activities, both digitally
and through our stores.
During the year, we doubled our warehouse space to support sales
online and in store. The opening of our second warehouse provides
improvements to our logistics and operational capacity. We have
invested to ensure our facilities are now open 24/7, meaning that
stock sold in our stores by 9pm will be replenished as part of the
store's next delivery, which is often as soon as the following
morning. Online orders made by consumers before midnight can also
be fulfilled the next day.
Our brands
Our ability to build relationships with the key global brands,
while nurturing smaller 'bedroom' brands, has always been an
important part of Footasylum's DNA. During FY18, we have further
strengthened these links and Barry Bown's appointment as our
Executive Chairman means we have access to his vast experience and
network of contacts that will enable us to strengthen further our
third-party relationships.
The development of our own brands is also a key priority, as
they underline the quality and choice we offer our consumers, while
ensuring that we can drive trends when we identify a gap in the
ranges of third-party brands. In FY18 our own brand sales reached
GBP22.9 million, around 11.7 per cent of our total revenue (FY17:
8.7 per cent). We also launched a new website for Kings Will
Dream.
Wholesale
The success of our own brands led to the launch of our wholesale
operation, partly at the request of our partners who saw the
relevance of our brands for their consumers. Through the strength
of our own brands we are building a diverse range of wholesale
relationships from major UK and international platforms to small,
independent shops.
As well as being a valuable addition to our business model, our
wholesale operation cements the market positioning of our own
brands and gives them a longer life cycle. Where appropriate, it
means we can take advantage of a broader market rather than
on-trend appeal, selling a more mature brand through a wholesale
route even when it is no longer right for our stores. We see volume
potential in this area and we believe wholesale presents another
route to access international markets.
Clare Nesbitt
Chief Executive Officer
FINANCIAL REVIEW
FY18 FY17 Change
----------------------------------- ----- ----- ---------
Revenue (GBPm) 194.8 147.0 33%
----------------------------------- ----- ----- ---------
Gross profit (GBPm) 87.6 67.5 30%
----------------------------------- ----- ----- ---------
Gross margin 45.0% 45.9% (90) bps
----------------------------------- ----- ----- ---------
Adjusted EBITDA (GBPm)1 12.5 11.2 12%
----------------------------------- ----- ----- ---------
Adjusted EBITDA margin 6.4% 7.6% (120) bps
----------------------------------- ----- ----- ---------
Adjusted profit before tax (GBPm)2 8.4 8.1 4%
----------------------------------- ----- ----- ---------
Profit before tax (GBPm) 1.9 8.1 (77)%
----------------------------------- ----- ----- ---------
Non-GAAP adjusted diluted EPS (p)3 6.16 5.83 6%
----------------------------------- ----- ----- ---------
Cash (GBPm) 11.4 2.8 307%
----------------------------------- ----- ----- ---------
1. Adjusted EBITDA is stated as earnings before interest, tax,
depreciation, amortisation, exceptional items and the share-based
payment charge.
2. Adjusted profit before tax is stated as adjusted EBITDA after
interest, depreciation and amortisation.
3. Non-GAAP adjusted diluted EPS is stated as profit after tax
before exceptional items and the share-based payment charge per the
diluted issued ordinary shares as at 24 February 2018 for both FY18
and FY17.
Footasylum delivered a strong underlying performance in FY18.
Revenue increased 33 per cent, reflecting growth in all product
categories across the Company's multiple channels, from further
store roll out, increasing volumes of online traffic and the launch
of the Company's wholesale business.
Footasylum is investing in its infrastructure and talent to
support further growth. While adjusted EBITDA increased 12 per cent
to GBP12.5 million, the adjusted EBITDA margin of 6.4 per cent was
lower than FY17 (7.6 per cent), predominantly as a function of the
gross margin reduction and investment in central functions.
Despite a challenging consumer backdrop Footasylum's highly
relevant brands continued to appeal to a growing consumer base.
Following the debt refinancing carried out in the year and the IPO,
Footasylum remains well positioned to capitalise on this growth in
demand, both online and in-store, while delivering long-term
sustainable returns to shareholders.
Adjusted metrics reflecting underlying business performance
The table below reconciles the adjusted result to the statutory
accounts. Footasylum reports adjusted EBITDA, which represents
earnings before interest, tax, depreciation, amortisation, the
share-based payment charge and exceptional items. This metric
reflects internal reporting and provides a useful measure of the
underlying profitability of the business. Share-based compensation
plans were established following the IPO with awards (and
associated payment charges) being made on an annual basis over the
next three years, subject to performance criteria being met.
GBPm FY18 FY17
------------------------------------------ ----- -----
Adjusted EBITDA 12.5 11.2
------------------------------------------ ----- -----
Depreciation and amortisation (3.9) (2.7)
------------------------------------------ ----- -----
Share-based payment charge (0.4) -
------------------------------------------ ----- -----
Operating profit before exceptional items 8.2 8.5
------------------------------------------ ----- -----
Exceptional items (6.0) -
------------------------------------------ ----- -----
Operating profit 2.2 8.5
------------------------------------------ ----- -----
Strong revenue growth across all channels and product
categories
Overall revenue increased 33 per cent in FY18 to GBP194.8
million (FY17: GBP147.0 million). Revenue is reported net of sales
taxes and returns, which remained low as a proportion of revenue in
the financial year reflecting Footasylum's relevant product
offering.
Revenue by channel
GBPm FY18 FY17 Change
---------- ------ ------ ------
Store 133.2 105.0 27%
---------- ------ ------ ------
Online 59.0 42.0 41%
---------- ------ ------ ------
Wholesale 2.6 -
---------- ------ ------ ------
194.8 147.0 33%
---------- ------ ------ ------
Footasylum operates a multi-channel model across: a 65-strong
store estate in the UK; online; and a recently launched wholesale
business which distributes Footasylum own brand products to select
partners.
In FY18 the store estate accounted for 68 per cent of total
revenue (FY17: 71 per cent), online for 30 per cent of total
revenue (FY17: 29 per cent) and wholesale for less than 2 per cent
of total revenue (FY17: 0 per cent).
Menswear, including both apparel and footwear, remains the main
focus for Footasylum representing 69 per cent of total revenue in
FY18. This has decreased as a proportion of total revenue from 71
per cent in FY17, reflecting growth in women's ranges which, along
with children's ranges, have launched in selected stores as well as
online.
Stores
Growth in store revenue was the main driver of the overall
revenue increase in the financial year. During the year Footasylum
opened 10 new stores (FY17: 12), expanded the size of seven stores
(FY17: nil) and refitted two stores (FY17: 2). Reflecting both this
and revenue growth in existing stores, store revenue increased 27
per cent in the year to GBP133.2 million (FY17: GBP105.0
million).
Of the 65 stores open at 24 February 2018, 63 were operated
under the core Footasylum fascia, while a further two stores
operate under offshoot fascia, branded Drome and SEVEN. These
offshoot stores accounted for only 2 per cent of total revenue in
both FY18 and FY17 but play a strategic role in strengthening
supplier relationships and providing access to third party
products.
Footasylum's store estate is relatively immature, with 32 of the
65 stores open at the end of FY18 having been opened since February
2015. The Company is currently targeting up to eight new store
openings per annum (net of any store closures), and a number of
upsizes in key locations to increase selling space and drive
contribution. The Company sees potential to grow the total store
estate in the UK to around 150 stores.
Online
Online revenue continues to grow strongly, up 41 per cent in
FY18 to GBP59.0 million (FY17: GBP42.0 million), accounting for 30
per cent of total revenue, up from 29 per cent in FY17. The Company
sells across five platforms, including platforms for its three
fascias, Footasylum, Drome and SEVEN, as well as its own brand
website for Kings Will Dream, which launched in the financial
year.
More than 80 per cent of the traffic to these websites in FY18
came from mobile and tablet devices. Outside of this, the Company
continues to develop its mobile offering, with apps launched in the
year for Footasylum, Kings Will Dream and SEVEN.
Wholesale
In March 2017 Footasylum launched its wholesale operation,
selling its own brands - initially Kings Will Dream - through a
network of partners from small stores to major European partners.
Revenue from wholesale was GBP2.6 million in FY18 (FY17: GBPnil),
less than 2 per cent of total revenue (FY17: 0 per cent).
As a result of its online and wholesale operations, the Company
generated a proportion of its revenue internationally in FY18,
although UK-generated revenue still accounted for 98 per cent of
total revenue for the year (FY17: 98 per cent).
Revenue by product category
GBPm FY18 FY17 Change
------------ ----- ----- ------
Footwear 102.6 84.7 21%
------------ ----- ----- ------
Apparel 84.4 56.3 50%
------------ ----- ----- ------
Accessories 7.8 6.0 30%
------------ ----- ----- ------
194.8 147.0 33%
------------ ----- ----- ------
All product categories across almost 300 brands delivered strong
growth in the year. Apparel experienced the largest increase, up
GBP28.1 million, or 50 per cent, to GBP84.4 million. Footwear
increased 21 per cent to GBP102.6 million, and accessories which
remain a small proportion of overall revenue, were up 30 per cent
to GBP7.8 million.
Footwear remained the largest product category, representing 53
per cent of FY18 revenue (FY17: 58 per cent). However, the apparel
and accessories categories are both growing strongly as Footasylum
further diversifies its product range. In FY18, Footasylum sold
over 19,000 SKUs (FY17: 17,000 SKUs) across all channels, with the
top 20 SKUs accounting for just 6.0 per cent of FY18 revenue (FY17:
6.4 per cent), highlighting a limited reliance on any one
product.
Investing for the future
Summary income statement
GBPm FY18 FY17 Change
------------------------------ ------- ------ ---------
Revenue 194.8 147.0 33%
------------------------------ ------- ------ ---------
Cost of sales (107.2) (79.5) 35%
------------------------------ ------- ------ ---------
Gross profit 87.6 67.5 30%
------------------------------ ------- ------ ---------
Gross margin % 45.0% 45.9% (90) bps
------------------------------ ------- ------ ---------
Admin expenses (85.4) (59.0) 45%
------------------------------ ------- ------ ---------
Operating profit 2.2 8.5 (74)%
------------------------------ ------- ------ ---------
Adjusted EBITDA 12.5 11.2 12%
------------------------------ ------- ------ ---------
Adjusted EBITDA margin % 6.4% 7.6% (120) bps
------------------------------ ------- ------ ---------
Depreciation and amortisation (3.9) (2.7) 44%
------------------------------ ------- ------ ---------
Share-based payment charge (0.4) -
------------------------------ ------- ------ ---------
Exceptional items (6.0) -
------------------------------ ------- ------ ---------
Operating profit 2.2 8.5 (74)%
------------------------------ ------- ------ ---------
Finance expense (0.3) (0.3) 0%
------------------------------ ------- ------ ---------
Profit before tax 1.9 8.1 (77)%
------------------------------ ------- ------ ---------
Tax (1.7) (1.9) 11%
------------------------------ ------- ------ ---------
Profit after tax 0.2 6.2 (97)%
------------------------------ ------- ------ ---------
Footasylum's routes to market have differing margin profiles,
reflecting the underlying product mix across footwear, apparel and
accessories. The overall gross margin will vary due to the impact
of this mix, as well as the proportion of revenue coming from the
Company's own brand labels in any given period. The FY18 gross
margin was 45.0 per cent, down 90 basis points from 45.9 per cent
in FY17. This was due to a number of reasons including: channel
mix; a reduction in the footwear margin; and an increase in central
provisions. These points were partially offset by the benefit from
increased own brand participation. A combination of these factors
could continue to impact gross margin in FY19.
Excluding exceptional items, depreciation, amortisation and the
share-based payment charge, admin expenses were broadly similar at
38.6 per cent of revenue (FY17: 38.2 per cent of revenue). Admin
expenses include rent and rates on the Company's store portfolio,
distribution costs, marketing costs as well as head office
costs.
Footasylum is investing ahead of the curve in its infrastructure
to support future business expansion. During the year the Company
opened a second distribution facility in Rochdale (known as Point
62) in addition to its existing distribution centre (known as M3),
it upgraded its technology systems to support its growing digital
presence and grew its Head Office team and central functions. As at
the end of FY18 Footasylum had 2,270 employees across the Company
(FY17: 1,869). These investments are intended to support
Footasylum's growing consumer base and to meet peak trading period
demand. Any short-term margin impact is expected to be offset by
the benefits of the investment over time.
Adjusted EBITDA increased 12 per cent to GBP12.5 million (FY17:
GBP11.2 million). The adjusted EBITDA margin, at 6.4 per cent, was
120 basis points lower (FY17: 7.6 per cent), reflecting the 90
basis point reduction in overall gross margin and the investments
referred to above.
Depreciation and amortisation was GBP3.9 million for the year
(FY17: GBP2.7 million), reflecting the increased capital
expenditure in new stores, investments in IT and in the new
distribution facility.
Exceptional items
Exceptional items in the year totalled GBP6.0 million (FY17:
GBPnil). GBP4.1 million related to the costs of the IPO and GBP1.9
million related to an HMRC VAT provision.
Tax
The effective rate of tax for the year was 23.0 per cent of
pre-exceptional profit before tax (FY17: 23.0 per cent). This is
higher than the blended UK statutory rate of tax for the year of
19.1 per cent (FY17: 20.0 per cent), due to costs which are
disallowable for tax.
Earnings per share
After exceptional items, profit after tax was GBP0.2 million
(FY17: GBP6.2 million). Following a capital reorganisation and an
issue of new ordinary shares at the time of the IPO in November
2017, the Company had 104,474,390 ordinary shares of GBP0.001 each
in issue (pre-IPO: 6,000 ordinary shares of GBP1 each). The
non-GAAP adjusted diluted EPS of 6.16p is stated as profit after
tax before exceptional items and the share-based payment charge per
the diluted issued ordinary shares as at 24 February 2018 for both
FY18 and FY17 (FY17: 5.83p).
Consolidated statement of financial position
At 24 Feb At 25 Feb
GBPm 2018 2017
------------------------------------------- --------- ---------
Intangible assets 0.5 -
------------------------------------------- --------- ---------
Property, plant and equipment 19.9 14.2
------------------------------------------- --------- ---------
Non-current assets 20.4 14.2
------------------------------------------- --------- ---------
Working capital 15.3 8.3
------------------------------------------- --------- ---------
Cash and cash equivalents 11.4 2.8
------------------------------------------- --------- ---------
Preference shares - (18.7)
------------------------------------------- --------- ---------
Accruals and deferred income (non-current) (4.9) (2.1)
------------------------------------------- --------- ---------
Director Loans - (3.9)
------------------------------------------- --------- ---------
Net assets 42.2 0.6
------------------------------------------- --------- ---------
Net assets increased significantly during the year, largely due
to the net proceeds from the IPO of GBP41.1 million. GBP18.7
million of these proceeds were used to redeem outstanding
preference shares (which were classified as debt) and GBP3.9
million was used to repay a Director's loan. As anticipated at the
time of the IPO Footasylum subsequently completed a capital
reduction in February 2018, cancelling the Company's share premium
account to create distributable reserves of GBP37.7 million.
Investments in Footasylum's stores, IT and warehousing accounted
for the increased property, plant and equipment position, while
working capital increased as a function of the Company's growth
during the year.
At 24 Feb At 25 Feb
GBPm 2018 2017
-------------------------- --------- ---------
Capex on stores 6.9 4.8
-------------------------- --------- ---------
Warehouse 1.2 0.5
-------------------------- --------- ---------
Technology 1.6 0.5
-------------------------- --------- ---------
Other 0.3 0.1
-------------------------- --------- ---------
Total capital expenditure 10.0 5.9
-------------------------- --------- ---------
During FY18 capital expenditure was GBP10.0 million (FY17:
GBP5.9 million). Of this amount, GBP6.9 million (FY17: GBP4.8
million) was spent on enhancing the store estate, including opening
10 new stores, refitting two stores to enhance the consumer
experience and upsizing seven stores to maximise their
contribution.
Other investments in the year included rolling out a new
in-store EPOS system across the store estate to speed up the buying
process, and further investment in the Company's digital platforms
to enhance the user experience. There was modest spend on the new
warehousing facility, Point 62, which became fully operational in
FY19.
Consolidated cash flow statement
52 week 52 week
period ended period ended
GBPm 24 Feb 2018 25 Feb 2017
-------------------------------------------------------------------- ------------- -------------
Profit before tax 1.9 8.1
-------------------------------------------------------------------- ------------- -------------
Depreciation 3.9 2.7
-------------------------------------------------------------------- ------------- -------------
Interest 0.3 0.3
-------------------------------------------------------------------- ------------- -------------
Share-based payments charge 0.4 -
-------------------------------------------------------------------- ------------- -------------
Tax (1.8) (1.5)
-------------------------------------------------------------------- ------------- -------------
Working capital (5.4) 3.2
-------------------------------------------------------------------- ------------- -------------
Operating cash flow (0.7) 12.8
-------------------------------------------------------------------- ------------- -------------
Property, plant and equipment (8.0) (5.7)
-------------------------------------------------------------------- ------------- -------------
Intangible assets (0.5) -
-------------------------------------------------------------------- ------------- -------------
Free cash flow (9.2) 7.2
-------------------------------------------------------------------- ------------- -------------
Net proceeds from IPO 41.1 -
-------------------------------------------------------------------- ------------- -------------
Repayment of preference shares, directors loan account and interest (22.7) -
-------------------------------------------------------------------- ------------- -------------
Other (0.6) (0.1)
-------------------------------------------------------------------- ------------- -------------
Net cash flow 8.6 7.1
-------------------------------------------------------------------- ------------- -------------
Cash and cash equivalents / (overdraft) at beginning of year 2.8 (4.3)
-------------------------------------------------------------------- ------------- -------------
Cash and cash equivalents at end of year 11.4 2.8
-------------------------------------------------------------------- ------------- -------------
Footasylum had GBP11.4 million net cash at 24 February 2018 (25
February 2017: GBP2.8 million). A reduction in operating cash flow
to GBP(0.7) million (FY17: GBP12.8 million) and free cash outflow
of GBP9.2 million (FY17: free cash inflow of GBP7.2 million) was
funded by the net proceeds from the IPO.
The change in operating cash flow was largely due to working
capital movements. Working capital fluctuates throughout the year
around trading activity, and was highest in November 2017 around
peak trading. Inventory at 24 February 2018 was higher than at 25
February 2017 due to growth in the store estate, the new
distribution facility, and an earlier Easter. This was partly
offset by payables due in relation to an exceptional HMRC VAT
provision.
In July 2017 Footasylum negotiated a new multi-currency
revolving credit facility with HSBC of GBP30 million. The facility
was made available to fund capital expenditure and future working
capital requirements. The interest payable on the loan is LIBOR
plus 1.9 per cent. At 24 February 2018 the facility was
undrawn.
Dividend policy
As disclosed at the time of the IPO the Directors intend, in the
short-term, to retain the Company's earnings for re-investment to
fund growth. It is the Directors' ultimate intention to pursue a
progressive dividend policy subject to the need to retain earnings
to expand the growth and development of the Group.
FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
for the year ended 24 February 2018
52 Week 52 Week
Period Period
ended ended
24 February 25 February
2018 2017
Notes GBP'000 GBP'000
--------------------------------------------------------------------------------- ----- ------------ ------------
Revenue 2 194,769 146,963
Cost of sales (107,160) (79,499)
--------------------------------------------------------------------------------- ----- ------------ ------------
Gross profit 87,609 67,464
Administrative expenses 3 (85,399) (59,013)
Operating profit 2,210 8,451
--------------------------------------------------------------------------------- ----- ------------ ------------
Underlying EBITDA* 3 12,457 11,228
--------------------------------------------------------------------------------- ----- ------------ ------------
Depreciation and amortisation 3 (3,803) (2,777)
--------------------------------------------------------------------------------- ----- ------------ ------------
Share-based payments charge 3 (421) -
--------------------------------------------------------------------------------- ----- ------------ ------------
Operating profit before exceptional items 8,233 8,451
--------------------------------------------------------------------------------- ----- ------------ ------------
Exceptional items 3 (6,023) -
--------------------------------------------------------------------------------- ----- ------------ ------------
Operating profit 2,210 8,451
--------------------------------------------------------------------------------- ----- ------------ ------------
Finance expense (269) (311)
--------------------------------------------------------------------------------- ----- ------------ ------------
Profit before income tax 1,941 8,140
--------------------------------------------------------------------------------- ----- ------------ ------------
Taxation (1,780) (1,897)
--------------------------------------------------------------------------------- ----- ------------ ------------
Profit and total comprehensive income for the financial period attributable to
shareholders 161 6,243
--------------------------------------------------------------------------------- ----- ------------ ------------
* Underlying EBITDA is stated as earnings before interest, tax,
depreciation, amortisation, exceptional items and share-based
payments charge
All activities relate to continuing operations.
52 Week Period 52 Week Period
ended ended
24 February 25 February
Notes 2018 2017
----------------------------------------------------------------------------- ----- -------------- --------------
Basic and diluted earnings per share attributable to equity shareholders of
the Company:
----------------------------------------------------------------------------- ----- -------------- --------------
Basic 5 0.19p 8.00p
----------------------------------------------------------------------------- ----- -------------- --------------
Diluted 5 0.18p 8.00p
----------------------------------------------------------------------------- ----- -------------- --------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
for the year ended 24 February 2018
At At
24 February 25 February
2018 2017
GBP'000 GBP'000
----------------------------------------------------- ------------ ------------
Non-current assets
Intangible assets 477 21
Property and equipment 19,905 14,215
------------------------------------------------------ ------------ ------------
20,382 14,236
----------------------------------------------------- ------------ ------------
Current assets
Inventory 35,720 23,522
Trade and other receivables 7,493 3,615
Deferred tax asset 104 104
------------------------------------------------------ ------------ ------------
Cash and cash equivalents 11,416 2,839
------------------------------------------------------ ------------ ------------
54,733 30,080
----------------------------------------------------- ------------ ------------
Total assets 75,115 44,316
------------------------------------------------------ ------------ ------------
Current liabilities
Trade and other payables (27,977) (19,007)
Preference shares - (18,700)
------------------------------------------------------ ------------ ------------
(27,977) (37,707)
----------------------------------------------------- ------------ ------------
Net current assets / (liabilities) 26,756 (7,627)
------------------------------------------------------ ------------ ------------
Non-current liabilities
Accruals and deferred income (4,693) (2,109)
Net obligation under finance lease and hire purchase (235) (71)
Director loans - (3,850)
(4,928) (6,030)
----------------------------------------------------- ------------ ------------
Total liabilities (32,905) (43,737)
------------------------------------------------------ ------------ ------------
Net assets 42,210 579
------------------------------------------------------ ------------ ------------
Equity
Share capital 104 6
Share premium account 3,510 249
Retained earnings 38,596 324
------------------------------------------------------ ------------ ------------
Total equity 42,210 579
------------------------------------------------------ ------------ ------------
FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 24 February 2018
At At
24 February 25 February
2018 2017
Notes GBP'000 GBP'000
--------------------------------------------------------------- ----- ------------ ------------
Cash generated from operating activities
----- ------------ ------------
Profit for the period: 3 161 6,243
----- ------------ ------------
Adjustments for:
----- ------------ ------------
Depreciation of property, plant and equipment 3 3,803 2,777
----- ------------ ------------
(Gain) / Loss on disposal of tangible assets (7) 20
----- ------------ ------------
Net finance charge 269 311
----- ------------ ------------
Share-based payments charge 3 421 -
----- ------------ ------------
Taxation charge 1,780 1,897
----- ------------ ------------
Increase in stock (12,199) (4,447)
----- ------------ ------------
Increase in debtors (3,878) (1,578)
----- ------------ ------------
Increase in creditors 10,727 9,125
----- ------------ ------------
Corporation tax paid (1,787) (1,517)
--------------------------------------------------------------- ----- ------------ ------------
Net cash (used in) / generated from operating activities (710) 12,831
--------------------------------------------------------------- ----- ------------ ------------
Investing activities
----- ------------ ------------
Purchases of property, plant and equipment (8,005) (5,711)
Purchase of intangible assets (530) -
Sale of property, plant and equipment 18 68
--------------------------------------------------------------- ----- ------------ ------------
Net cash used in investing activities (8,517) (5,643)
--------------------------------------------------------------- ----- ------------ ------------
Financing activities
----- ------------ ------------
Repayment of finance lease liabilities (75) 117
----- ------------ ------------
Dividends paid - (109)
----- ------------ ------------
Interest paid (214) (121)
----- ------------ ------------
Proceeds from the issue of ordinary share capital 43,418 -
----- ------------ ------------
Share issue costs (2,318) -
----- ------------ ------------
Debt issue costs (330) -
----- ------------ ------------
Repayment of preference shares (18,700) -
----- ------------ ------------
Repayment of Director loan account capital (3,850) -
----- ------------ ------------
Repayment of Director loan account interest (127) -
--------------------------------------------------------------- ----- ------------ ------------
Net cash generated from / (used in) financing activities 17,804 (113)
--------------------------------------------------------------- ----- ------------ ------------
Net increase in cash and cash equivalents 8,577 7,075
--------------------------------------------------------------- ----- ------------ ------------
Cash and cash equivalents / (overdraft) at beginning of period 2,839 (4,236)
--------------------------------------------------------------- ----- ------------ ------------
Cash and cash equivalents at end of period 11,416 2,839
--------------------------------------------------------------- ----- ------------ ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Reconciliation of 52 week period to 25 February 2017
Retained
Share Preference Share earnings / Total
capital Shares premium (losses) equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------ -------- ---------- -------- ----------- --------
Balance at 26 February 2016 6 18,700 249 (5,810) 13,145
-------- ---------- -------- ----------- --------
Comprehensive Income:
-------- ---------- -------- ----------- --------
Profit for the period - - - 6,243 6,243
------------------------------------------------------ -------- ---------- -------- ----------- --------
6 18,700 249 433 19,388
------------------------------------------------------ -------- ---------- -------- ----------- --------
Transactions with owners recorded directly in equity:
-------- ---------- -------- ----------- --------
Dividends - - - (109) (109)
-------- ---------- -------- ----------- --------
Reclassification of preference shares to debt - (18,700) - - (18,700)
------------------------------------------------------ -------- ---------- -------- ----------- --------
Balance at 25 February 2017 6 - 249 324 579
------------------------------------------------------ -------- ---------- -------- ----------- --------
Reconciliation of 52 week period to 24 February 2018
Retained
Share Preference Share earnings / Total
capital Shares premium (losses) equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------ -------- ---------- -------- ----------- --------
Balance at 25 February 2017 6 - 249 324 579
------------------------------------------------------ -------- ---------- -------- ----------- --------
Comprehensive Income:
------------------------------------------------------ -------- ---------- -------- ----------- --------
Profit for the period - - - 161 161
------------------------------------------------------ -------- ---------- -------- ----------- --------
6 - 249 485 740
------------------------------------------------------ -------- ---------- -------- ----------- --------
Transactions with owners recorded directly in equity:
------------------------------------------------------ -------- ---------- -------- ----------- --------
Bonus issue of shares (i) 72 - (72) - -
------------------------------------------------------ -------- ---------- -------- ----------- --------
Issue of shares (ii) 26 - 43,392 - 43,418
------------------------------------------------------ -------- ---------- -------- ----------- --------
Share issue costs (iii) - - (2,318) - (2,318)
------------------------------------------------------ -------- ---------- -------- ----------- --------
Capital reduction (iv) - - (37,741) 37,741 -
------------------------------------------------------ -------- ---------- -------- ----------- --------
Share-based payments charge - - - 370 370
------------------------------------------------------ -------- ---------- -------- ----------- --------
Balance at 24 February 2018 104 - 3,510 38,596 42,210
------------------------------------------------------ -------- ---------- -------- ----------- --------
i On the 2 of November 2017, the Company issued bonus shares of
12 to 1 for existing shareholders
ii On the 2 of November 2017, the Company sub divided existing Ordinary shares by 1000
iii On the 2 of November 2017, the Company issued 26,474,390 ordinary shares
iv On the 13 February 2018, the Company reduced share premium
account by GBP37,740,525
1 BASIS OF PREPARATION
Footasylum plc (the "Company") is a company limited by shares
and incorporated and domiciled in the UK. Footasylum plc is
incorporated in the United Kingdom. The registered office is
Sandbrook House, Sandbrook Park, Rochdale, Lancashire, OL11 1RY.
The principal activity of the Company is the retail of sports and
fashion footwear and clothing.
The Consolidated and Company Financial Statements have been
prepared in accordance with IFRS and the International Financial
Reporting Interpretation Committee ("IFRIC") interpretations
endorsed by the EU and with those parts of the Companies Act 2006
applicable to companies reporting under IFRS.
The functional currency of the Company and its subsidiary
undertakings (the "Group") is pounds sterling and the financial
statements are presented in pounds sterling, rounded to the nearest
thousand.
These financial statements are prepared in accordance with
International Financial Reporting Standards ("IFRSs") as adopted by
the EU. The accounting policies applied are consistent with those
disclosed in the Historical Financial Information included in the
Admission Document.
The financial statements have been prepared under the historical
cost convention, as modified for financial assets and liabilities
at fair value through the Consolidated Income Statement.
The preparation of financial statements in conformity with
adopted IFRSs requires management to make judgements, estimates and
assumptions that affect the application of policies and reported
amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical
experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the
basis of making the judgements about carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results may differ from these estimates.
The judgements, estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in
any future periods affected.
The financial information included in this preliminary statement
of results does not constitute statutory accounts within the
meaning of Section 435 of the Companies Act 2006 (the "Act"). The
financial information for the 52 week period ended 24 February 2018
has been extracted from the statutory accounts on which an
unqualified audit opinion has been issued. The auditors have
consented to the publication of the Announcement.
2 SEGMENTAL REPORTING
The Directors consider there to be one operating and reportable
segment, being that of the sale of products through retail outlets,
the Group's website and wholesale.
Whilst the business and Chief Operating Decision Maker ('CODM')
does review analysis of revenues at a disaggregated level, as
disclosed below, information in relation to assess business
performance and make resource allocation decisions at a level below
the whole business is not made available. In particular, operating
profit is not calculated at a level below the whole business. As
such, the Directors consider there to be one operating and
reportable segment.
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
Revenue GBP'000 GBP'000
---------- -------------- --------------
Store 133,119 104,963
-------------- --------------
Web 59,027 42,000
Wholesale 2,623 -
---------- -------------- --------------
194,769 146,963
---------- -------------- --------------
Geographic Information
The following table provides analysis of the Group's revenue by
geographical market:
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
GBP'000 GBP'000
------------------ -------------- --------------
United Kingdom 191,282 143,313
Rest of the World 3,487 3,650
------------------ -------------- --------------
194,769 146,963
------------------ -------------- --------------
3 PROFIT BEFORE TAX
This is stated after charging:
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
GBP'000 GBP'000
------------------------------------------------- -------------- --------------
Exceptional costs 6,023 -
------------------------------------------------- -------------- --------------
Depreciation of property, plant and equipment 3,803 2,777
------------------------------------------------- -------------- --------------
(Gain) / Loss on disposal of property, plant and
equipment (7) 20
------------------------------------------------- -------------- --------------
Exchange differences 30 50
------------------------------------------------- -------------- --------------
Hire of assets - operating leases 14,572 11,609
Share-based payments charge 421 -
------------------------------------------------- -------------- --------------
Exceptional costs in the period ending 24 February 2018 relate
to preparations for admission (GBP4,145,000) and HMRC VAT
provisions (GBP1,878,000).
Total costs incurred in relation to the admission to trading on
AIM were GBP6,462,000 with GBP2,317,000 charged to the share
premium as being directly related to newly issued shares.
HMRC VAT provisions are made for known issues based on
management's interpretation of legislation and the likely outcome
of negotiations or litigation. Each provision is considered
separately and the amount provided reflects the best estimate of
the most likely outcome, being the single most likely in a range of
possible outcomes.
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
GBP'000 GBP'000
-------------------------------------------------------- -------------- --------------
EBITDA reconciliation
-------------------------------------------------------- -------------- --------------
Operating profit 2,210 8,451
-------------------------------------------------------- -------------- --------------
Exceptional items 6,023 -
-------------------------------------------------------- -------------- --------------
Underlying operating profit before share-based payments
charge, depreciation and amortisation 8,233 8,451
-------------------------------------------------------- -------------- --------------
Depreciation and amortisation 3,803 2,777
-------------------------------------------------------- -------------- --------------
EBITDA 12,036 11,228
-------------------------------------------------------- -------------- --------------
Share-based payments charge 421 -
-------------------------------------------------------- -------------- --------------
Underlying EBITDA 12,457 11,228
-------------------------------------------------------- -------------- --------------
Underlying EBITDA is calculated as Group underlying operating
profit under IFRS plus depreciation and amortisation. It excludes
exceptional items and IFRS2 related share-based payments
charge.
4 STAFF NUMBERS AND COSTS
Staff costs (including directors) consist of:
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
GBP'000 GBP'000
---------------------- -------------- --------------
Wages and salaries 28,284 20,121
---------------------- -------------- --------------
Social security costs 1,447 2,149
---------------------- -------------- --------------
Pension costs 127 95
---------------------- -------------- --------------
29,858 22,365
---------------------- -------------- --------------
The average number of employees (including directors) during the
period was as follows:
52 Week Period 52 Week Period
ended ended
24 February 25 February
2018 2017
--------------- -------------- --------------
Retail 885 746
-------------- --------------
Administration 243 173
Warehouse 184 156
--------------- -------------- --------------
1,312 1,075
--------------- -------------- --------------
5 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net
profit for the period attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the
period.
Diluted earnings per share is calculated by dividing the net
profit for the period attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the
period plus the weighted average number of ordinary shares that
would be issued on the conversion of all dilutive potential
ordinary shares into ordinary shares.
52 Week Period ended 24 February 2018 52 Week Period ended 25 February 2017
PAT before exceptional PAT before exceptional
costs and share-based costs and share-based
PAT payments charge PAT payments charge
GBP GBP GBP GBP
------------------------------ ----------- ----------------------------- ----------- -----------------------------
Profit attributable to equity
shareholders of the parent 160,883 6,604,305 6,243,367 6,243,367
------------------------------ ----------- ----------------------------- ----------- -----------------------------
Number of shares
------------------------------ ----------- ----------------------------- ----------- -----------------------------
Weighted average number of
ordinary shares for the
purposes of basic earnings
per share 86,413,779 86,413,779 78,000,000* 78,000,000
------------------------------ ----------- ----------------------------- ----------- -----------------------------
Effect of dilutive potential
ordinary shares:
Share options 2,687,286 2,687,286 - -
------------------------------ ----------- ----------------------------- ----------- -----------------------------
Weighted average number of
ordinary shares for the
purposes of diluted earnings
per share 89,101,065 89,101,065 78,000,000* 78,000,000*
Diluted shareholding at 24
February 2018 (Non-GAAP
measure)** 107,101,676 107,101,676 107,101,676 107,101,676
Non-GAAP diluted earnings per
share** 0.15p 6.16p 5.83p 5.83p
Basic earnings per share 0.19p 7.64p 8.00p 8.00p
Diluted earnings per share 0.18p 7.41p 8.00p 8.00p
------------------------------ ----------- ----------------------------- ----------- -----------------------------
*Restated in accordance with IAS 33 to reflect the impact of the
sub-division and bonus issue of shares on 2 November 2017.
**Non-GAAP measure is based on shareholdings as at 24 February
2018 for both FY18 and FY17.
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
FR MMGMVLRVGRZM
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