Final Results

RNS Number : 3240D

boohoo.com plc

26 April 2017

 

For Immediate Release                                                                        26 April 2017

boohoo.com plc - final results for the year ended 28 February 2017

"Leading the fashion eCommerce market"

£000	Year ended 28 February 2017	Year ended 29 February 2016	Change
Revenue	294,635	195,394	+51%
Gross profit	160,829	112,911	+42%
Gross margin	54.6%	57.8%	-320bps
Operating profit	30,308	15,046	+101%
Adjusted EBITDA(1)	35,563	18,711	+90%
Profit before tax	30,945	15,674	+97%
Net cash(2) at year end	58,420	58,281	+£0.1m
Basic earnings per share	2.19p	1.11p	+97%

(1): Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, share-based payment charges and option gain on PrettyLittleThing acquisition.

(2) Net cash is cash less borrowings.

Financial Highlights

Group

·     Revenue £294.6 million (2016: £195.4 million)

·     Gross margin 54.6% (2016: 57.8%)

·     Adjusted EBITDA £35.6 million, 12.1% of revenue (2016: £18.7 million, 9.6%)

·     Profit before tax £30.9 million (2016: £15.7 million)

·     Strong balance sheet with net cash of £58.4 million (2016: £58.3 million), after capital expenditure and acquisition of Nasty Gal

boohoo

·     Revenue £283.4 million, up 45% (44% CER⁽¹⁾)

o  UK up 33%, rest of Europe up 50% (44% CER), USA up 140% (119% CER), rest of world up 40% (42% CER)

o  39% (2016: 33%) of revenue is generated outside the UK

·     Gross margin 54.5%, down 330bps, driven by planned investments in the customer proposition (retail gross margin 56.1% (2016: 58.8%))

PrettyLittleThing

               Results from 3 January 2017:

·     Revenue £11.2 million

·     Strong growth of revenue and active customers

·     Gross margin 57.5%

Operational Highlights

Group

·     Acquisition of majority interest in PrettyLittleThing on 3 January 2017

·     Acquisition of the intellectual property of Nasty Gal on 28 February 2017

·     Warehouse extension completed and in use

boohoo

·     5.2 million active customers⁽²⁾, up 29% on prior year

·     UK, USA and Australian apps launched and responsive websites introduced for European sites, improving mobile and tablet offering (now 70% of sessions)

·     USA, Ireland and Europe websites migrated to new platform

·     International growth accelerated through focus on key markets

·     Expansion of product range driving growth and brand appeal

PrettyLittleThing

·     Acquisition of majority interest, results incorporating two months of profitable trading

·     1.3 million active customers

·     Investment in new offices and upgraded systems

·     Increasing international exposure

·     Building a successful team to support rapid growth

 (1): CER designates Constant Exchange Rate translation of foreign currency revenue.

 (2): Active customers defined as having shopped in the last year.

Mahmud Kamani and Carol Kane, joint CEOs, commented:

"It has been a momentous year for us, with strong results and the acquisitions of PrettyLittleThing on 3 January 2017 and the Nasty Gal brand on 28 February 2017. Both brands have huge potential and the acquisitions represent a step change in the size, structure and operation of the group. We are confident that our expertise combined with the strength and following of our new complementary brands will greatly enhance the group's future growth and profitability.

The boohoo brand has achieved outstanding revenue growth and increased profitability margins during the year. We continued to grow strongly in the UK, our largest market, whilst international growth exceeded our expectations, particularly in the USA. Our customer proposition is proving consistently appealing.

PrettyLittleThing showed strong revenue growth in two months' of profitable trading since acquisition.

This year has also seen some major capital and infrastructure expenditure. We invested in a large warehouse extension and additional office space to provide for our planned further growth and we have secured planning permission for the next stage of the warehouse expansion. We have also invested in a new website platform for boohoo, which has brought many improvements, including website flexibility and response times.

Trading in the first few weeks of the 2018 financial year has made a promising start and we are excited about the prospects of our development into a multi-branded business. We expect group revenue growth approaching 50%⁽³⁾ over 2017, which includes growth from the recent acquisitions,  and a group EBITDA margin of approximately 10%."

(3)  Revenue growth from the boohoo brand is expected to be approximately 25% year on year. Revenue growth from the PrettyLittleThing brand is expected to be approximately 35% above the 12 month revenue to 28 February 2017 of £55 million. The balance of the growth to approaching 50% will come from the Nasty Gal brand.

Investor and Analyst Meeting

A meeting for analysts will be held today at the office of Buchanan, 107 Cheapside, London, EC2V 6DN commencing at 9.30am. boohoo.com plc's results 2017 are available at www.boohooplc.com.

A live audio webcast will be available at 9.30am via the following link: http://vm.buchanan.uk.com/2017/boohoo260417/registration.htm

A replay will subsequently be available from 12 noon via the same link. 

Enquiries

boohoo.com plc Neil Catto, Chief Financial Officer Clara Melia, Investor Relations	Tel: [phone] Tel: [phone]
Zeus Capital - Nominated adviser and joint broker Nick Cowles/Andrew Jones (Corporate Finance) John Goold/Benjamin Robertson (Corporate Broking)	Tel: [phone] Tel: [phone]
Jefferies Hoare Govett - Joint broker Nick Adams/Max Jones	Tel: [phone]
Buchanan - Financial PR adviser Richard Oldworth/Madeleine Seacombe/ Jane Glover	Tel: [phone] [e-mail]

About boohoo.com plc

"Leading the fashion eCommerce market"

Founded in Manchester in 2006, the group started life as boohoo.com, an inclusive and innovative brand targeting young, value-orientated customers. For over 10 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 and children's wear, through boohooMAN and boohooKIDS. 

In early 2017 the Group has extended its customer offering through the acquisitions of the vibrant fashion brand PrettyLittleThing, and free-thinking brand Nasty Gal. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. This investment proposition has helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 30-year-olds around the world. Today the Boohoo Group sells to over 6 million customers in almost every country in the world. 

This announcement has been determined to contain inside information. 

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

"Revenue growth across all brands was robust, whilst margins increased, leading to a doubling of profit before tax."

Overview

Group revenue for the year increased to £294.6 million, an increase of 51% (49% CER) on the previous year. Revenue includes two months of trading from PrettyLittleThing, of which a 66% interest was acquired on 3 January 2017, with revenues amounting to £11.2 million.

Adjusted EBITDA was £35.6 million (2016: £18.7 million), an increase of 90% on the prior year with overhead efficiencies leading to an improvement in adjusted EBITDA margins to 12.1% (2016: 9.6%). Profit before tax was £30.9 million (2016: £15.7 million), an increase of 97%.

Earnings per share rose to 2.19p, an increase of 97% (2016: 1.11p).

During the year boohoo and PrettyLittleThing both performed extremely well in the UK and overseas and we are very encouraged by the prospects of rapid growth in our key markets. The performance of each brand is discussed in more detail below.

boohoo, PrettyLittleThing and, from the 2018 financial year onwards, Nasty Gal will operate independently of each other from a brand perspective, with separate management teams and a distinct customer proposition, whilst leveraging the over-arching benefits of the group and shared service functions.

The company has an option to buy the non-controlling interest of 34% of the share capital of PrettyLittleThing.com Limited on 14 March 2022 for market value or less, subject to performance criteria.

boohoo

Performance

Revenue for the year increased to £283.4 million, up 45% (44% CER) on the previous year.

Growth in the UK, our largest market, was 33%, with revenue reaching £173.2 million.

In overseas markets, our growth has been very robust. In the USA, growth was 140% (119% CER) and revenue was £39.6 million, driven by our successful customer proposition and the cumulative benefits of effective marketing to grow the customer base. Growth in the rest of Europe was 50% (44% CER) and in the rest of the world was 40% (42% CER).

Additional breadth in the product range has contributed to revenue growth, with several new product categories introduced in the year. A key focus during the year has been on the efficiency of marketing and overheads, which have been reduced as a percentage of revenue.

Fashion

Our aim is to offer the customer the best prices and the widest choice in fashion. We stock over 29,000 styles and keep this offering fresh and up-to-date with the very latest fashion trends with over 100 new styles arriving each week. Our test-and-repeat model reduces stock holding risk, whilst rapid response enables us to reorder strong selling lines to quickly satisfy demand.

The performance of core womenswear ranges of dresses, tops, jackets and footwear has continued to be strong, whilst our continually expanding ranges have generated robust revenue growth: plus-size and petite have grown strongly and attained a high level of revenue and the more recently-introduced tall and lingerie ranges have made a very promising start.

The "Stylefix" section of the website is the place where female customers can enjoy keeping up with fashion trends through highly engaging lifestyle content. Customers can get fashion tips, watch videos and read interesting articles by bloggers as well as contributing to the site themselves.

Menswear sales have doubled over the previous year as the product range has expanded and the launch of the separate boohooMAN website earlier in the year helped better focus the proposition on a male audience. The boohooMAN site has an appealing fashion and lifestyle section, the MANual, which further enriches the shopping experience.

In the second half of the year we introduced boohooKIDS, a range of children's clothing for girls and boys in the 5 to 12 age range, which was highly successful. We also introduced a small maternity range. We plan to build on the early success of these ranges in 2017.

Marketing

Our highly successful "WeAreUs" campaigns continue to promote brand visibility across TV, traditional media, events and social media channels.  The campaigns have become synonymous with the brand and continue to contribute to attract new customers whilst also ensuring existing customers are constantly engaged with the brand. We continue to make use of social media platforms for marketing and our campaigns are used alongside the ongoing blogger, influencer and ambassador outreach. This delivers bespoke user-generated content, promoting the brand and the latest products on both boohoo and third party influencer channels. The influencer community continues to play an integral part in our marketing efforts and we have worked with hundreds of bloggers and influencers across our key geographic markets in the last twelve months.

boohoo contributors and student ambassador programmes complement the ongoing outreach, helping us to develop new talent in the ever-changing influencer landscape.  Contributors and ambassadors deliver evergreen content which is published across both boohoo's and their own social channels as well as our consumer facing online magazine 'The Fix'.

Our work with celebrities, developing fashion collaborations and staging of events, has supported our growth and helped us reach a large audience. International curve model and blogger Jordyn Woods, worked with us on a collaboration in the summer and the launch party for her range in Los Angeles attracted many "A list" celebrities and influencers.  Pop-up stores were set up in both Paris and Los Angeles to promote the boohoo brand amongst students. Our US efforts have been supported by #boohooontheroad, a cross-country road tour showcasing the boohoo brand to students on spring break. This took place in six cities and finished at the world famous music festival, Coachella. The brand offering has expanded with the introduction of boohooKIDS and maternity. We sponsored Graduate Fashion Week in the UK and staged a number of media events, which further increased awareness of the brand.

The boohooMAN.com website was launched in March 2016, with celebrities fronting promotional activity. This has contributed to an acceleration in menswear sales, supported by a continuously increasing product range and marketing activity focused on the young male audience. We have also undertaken a series of shoots with key influencers, who have global followings.

Through the use of advanced analytical tools and techniques, we have been able to target marketing activities more effectively. Customer surveys have also assisted in identifying efficient campaigns. Reaching new customers through social media is an integral part of our strategy that we have given special attention to in the last six months, which has seen our average weekly post reach on Facebook rise from seventy thousand to between fifteen and twenty million on average.  With increased exposure globally on Facebook Live, Snapchat, Instagram and Instagram stories, this has contributed to both brand awareness and revenue growth.

Customer interaction

The number of active customers, who shopped with boohoo in the last 12 months, increased by 29% to 5.2 million and the number of website sessions grew by 21% to 249 million.  Order frequency has risen by 3%, with customers placing an order with us, on average, 2.1 times in 12 months. Conversion rate to sale improved from 4.0% to 4.4% of sessions. On social media we have 4.4 million followers on Instagram, 3.1 million Facebook likes, 0.5 million followers on Twitter and 0.7 million views recorded on YouTube.

We have invested heavily in training and development of our customer services function to support the rapid growth of the business, with coaches providing constant support to advisers. We have also created first and second line teams, which allows more complex and time-consuming customer issues to be resolved by specialists. Live chat has been introduced on the website in response to requests via customer surveys and has been very well received. Increasingly customers prefer to use social media to contact us because of its convenience and we are proud that we typically respond to queries within one hour.

boohoo customers are able to choose from a range of delivery options, which we are constantly refining as new opportunities become available. We operate a midnight cut-off for next day delivery, Sunday delivery and collect+ returns in the UK. In the second half of the year we introduced boohoo Premier, which offers an unlimited next day delivery service in the UK for an annual fee, and has received a very favourable customer response.

Technology

Apps continue to grow in popularity for shopping on mobile devices, with mobile devices accounting for 70% of sessions (up from 66% last year). We will be launching more country-specific apps during 2017, following on from those already in use in our key UK, USA and Australian markets, which have achieved 2.2 million downloads to date. The existing app platform will also be upgraded, in line with our strategy of continually improving app functionality and customer experience.

In the second half of the year, the US and certain European websites were transferred to a new platform, delivering faster performance for the consumer as well as more systems flexibility. All other markets will be gradually transitioned to this platform in 2017, with the benefit of efficiency and cost savings upon completion.

New channels and changing trends are facilitated by our systems architecture, built around the concept of multiple customer channels supported with common infrastructure. Around this architecture, we will continue to make significant investments in the latest sophisticated and most stable platforms in 2017.

Warehouse

The warehouse was expanded by three more mezzanine floor layers, increasing capacity by another 275,000 square feet to 525,000 square feet total capacity, sufficient for medium term future growth. A second warehouse extension, which will incorporate a significant amount of automation, has received planning permission and building will commence in mid-2017.

We are investing in a substantial refurbishment and expansion of welfare facilities at the warehouse, which will include an enlarged new canteen, rest area and gym to be completed by summer 2017.

People

We made one additional senior management appointment during the year, that of supply chain director, following a number of senior appointments last year. We appointed a number of skilled middle-management positions and undertook several large-scale training and development programmes as part of our up-skilling and retention policy for staff development.

The rate of growth in revenue has required an increase in personnel in the volume-related functions in customer service and warehousing. The total permanent workforce now stands at 1,415, up from 1,015 at 29 February 2016.

PrettyLittleThing

Performance

PrettyLittleThing has contributed two months' revenue since the acquisition on 3 January 2017, amounting to £11.2 million. Revenue growth for these two months is 210% up on the same period last year and twelve month revenue growth was 264%.

Fashion

Our focus continues to be on further establishing the brand as a trend leader, selecting unique designs for the price-conscious consumer with a rapid reaction to fashion trends. We provide our consumers the hottest fashions delivered from a youthful and informal company culture for the social media generation. We are expanding our product range with additions in our shape ranges, plus size and petite and developing accessory ranges and beauty products.

Marketing

We see social media as the key to reaching our target consumers and have a diverse team of creatives who produce innovative video content for Facebook, YouTube and Instagram to engage with our audience. Stunningly-shot campaigns, beauty advice and fashion styling tips provide an abundance of irresistible content for young consumers, cementing our relationship as a fashion friend.

Customer interaction

Great customer service is our priority and we provide customers with the ability to contact us via a variety of social media channels, including WhatsApp. A French language website is planned for 2017, with local language support from customer services. A large range of delivery options are available to customers, including nominated day delivery, collect+ and an annual fee premier service in the UK. We have 0.8 million followers on Facebook, 0.3 million followers on Twitter, 1.5 million Instagram followers, 2.0 million YouTube views as well as a presence on several other social media channels.

Technology

We have android and iOS apps for the UK and will roll out an app for the US market in 2017. There has been significant investment and development in the IT architecture during the year and much planned for 2017, with some systems scheduled to move to cloud providers. The IT department has been substantially strengthened to enable us to meet the requirements of the growing business.

People

A great deal of effort has been put into recruiting a talented team during the year. The total permanent workforce now stands at 147.
 

Financial review

The group has achieved a strong performance with revenues and profits increasing in all territories.

Group revenue by brand

	2017	2016	Change	Change
	£000	£000		CER
boohoo	283,378	195,394	+45%	+44%
PrettyLittleThing	11,257	-	-	-
	294,635	195,394	+51%	+49%

The sales revenue above for PrettyLittleThing is for the two months to 28 February 2017. For comparative purposes, PrettyLittleThing's revenue for the twelve months to 28 February 2017 was £55.3 million (2016: £17.0 million).

Group revenue by geographical market

	2017	2016	Change	Change
	£000	£000		CER
UK	181,981	130,096	+40%	+40%
Rest of Europe	34,735	22,630	+53%	+47%
USA	40,435	16,523	+145%	+124%
Rest of world	37,484	26,145	+43%	+45%
	294,635	195,394	+51%	+49%

KPIs

boohoo

	2017	2016	Change
Active customers(1)	5.2 million	4.0 million	+29%
Number of orders	11.1 million	8.3 million	+33%
Order frequency(2)	2.13	2.07	+3%
Conversion rate to sale (3)	4.4%	4.0%	+40bps
Average order value(4)	£37.76	£33.59	+12.4%
Number of items per basket	2.89	2.62	+10.3%

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 orders taken to internet sessions

4.     Calculated as gross sales including sales tax divided by the number of orders

Active customer numbers have increased by 29% compared to the previous 12 month period as we continue to grow our customer base and retain existing customers. Conversion rates have increased to 4.4%, supported by our attractive proposition. Average order value has risen by 12.4% to £37.76 driven by the number of items per basket increasing by 10.3% to 2.89 and by the greater proportion of international business, which has a higher average order value than the UK business.

PrettyLittleThing

	2 months 2017	12 months 2017	12 months 2016	12 months' change
Active customers(1)	1.3 million	1.3 million	0.5 million	+138%
Number of orders	0.5 million	2.6 million	0.9 million	+176%
Order frequency(2)	2.0	2.0	1.8	+11%
Conversion rate to sale (3)	3.7%	3.7%	3.1%	+60bps
Average order value(4)	£33.18	£34.36	£30.07	+14.2%
Number of items per basket	2.03	2.10	2.00	+5.0%

The data in the table above is calculated over the twelve month period for both years, in order to provide meaningful information, and for the two month period of ownership. Active customer numbers have increased by 138% compared to the previous 12 month period. Conversion rates continue to improve and have increased to 3.7%. Average order value has increased by 14.2% to £34.36 for the 12 month period and the number of items per basket has increased by 5.0% to 2.10.

Consolidated income statement

	2017	2016	Change
	£000	£000
Revenue	294,635	195,394	+51%
Cost of sales	(133,806)	(82,483)	+62%
Gross profit	160,829	112,911	+42%
Gross margin	54.6%	57.8%	-320bps
Distribution costs	(66,849)	(45,501)
Administrative expenses	(68,534)	(53,756)
Other income	4,862	1,392
Operating profit	30,308	15,046	+101%
Finance income	637	628
Profit before tax	30,945	15,674	+97%
Adjusted EBITDA	35,563	18,711	+90%
Calculation of adjusted EBITDA
Operating profit	30,308	15,046
Depreciation and amortisation	4,765	3,058
Equity-settled share-based payment charge	1,895	607
Gain on option to acquire PrettyLittleThing.com Limited	(1,405)	-
Adjusted EBITDA	35,563	18,711

Gross margin reduced from 57.8% to 54.6%, primarily due to an increase in promotional activity, which has in turn increased sales growth.

Distribution costs have increased with revenue growth and remained broadly in line as a percentage of revenue. Administrative expenses, which include marketing expenses, have risen due to the combination of revenue growth and the building of our infrastructure to support the future business expansion but also decreased as a percentage of revenue.

The gain on the exercise of the option to acquire PrettyLittleThing.com Limited of £1.4 million arose because the consideration paid was less than the value of the assets acquired. A full analysis of the acquisition accounting is contained within note 12 of this financial information.

EBITDA (adjusted) increased by 90% from £18.7 million to £35.6 million and, as a percentage of revenue, increased from 9.6% to 12.1%, due to significant revenue growth allowing the cost base to be leveraged.

Taxation

The effective rate of tax for the year was 20.0% (2016: 20.6%), which is in line with the blended UK statutory rate of tax for the year of 20.0% (2016: 20.1%).

Earnings per share

Basic earnings per share increased by 97% from 1.11p to 2.19p.

Consolidated statement of financial position

		2017	2016
		£000	£000
Intangible assets		35,446	4,542
Property, plant and equipment		32,019	21,426
Financial assets		231	28
Deferred tax asset		4,494	231
Non-current assets		72,190	26,227
Working capital		(11,939)	(4,248)
Net financial assets		(11,817)	(4,866)
Cash and cash equivalents		70,330	58,281
Interest bearing loans and borrowings		(11,910)	-
Deferred tax liability		(2,597)	-
Current tax liability		(3,761)	(1,967)
Net assets		100,496	73,427

Intangible assets have increased by £31.0 million due to the acquisition of PrettyLittleThing.com Limited (£14.9 million) and the intellectual property of Nasty Gal (£16.1 million). Property, plant and equipment has risen by £10.6 million due to warehouse and office investment.

Working capital has reduced primarily due to an increase in payables and accruals relating to our increased trading activity. The deferred tax liability relates to the acquisition of PrettyLittleThing.com Limited. Net assets have increased by £27.1 million (+37%).

Liquidity and financial resources

Free cash flow was £5.4 million compared to £6.5 million in the previous financial year. Capital expenditure was £30.7 million, which includes £16.1 million for the Nasty Gal intellectual property and £14.6 million investment in our warehouse and IT systems to support projected growth in trade. The acquisition of the Nasty Gal assets was funded by a five year loan of £11.9 million. The consideration paid for PrettyLittleThing.com Limited was £5.9m and the cash acquired was £6.6m. The closing cash balance for the group was £70.3 million.

Consolidated cash flow statement
			2017			2016
			£000			£000
Profit for the year			24,661			12,438
Depreciation charges and amortisation			4,765			3,058
Share-based payments charge			1,895			607
Tax expense			6,284			3,236
Finance income			(637)			(628)
Increase in inventories			(11,925)			(7,481)
Increase in trade and other receivables			(4,107)			(3,243)
Increase in trade and other payables			15,166			12,098
Capital expenditure and intangible asset purchases			(30,675)			(13,611)
Free cash flow			5,427			6,474
Acquisition of 66% interest in PrettyLittleThing.com Limited (excess of cash acquired over consideration)			655			-
Gain on option to acquire PrettyLittleThing.com Limited			(1,405)			-
Purchase of own shares by Employee Benefit Trust			-			(331)
Proceeds from the issue of ordinary shares			54			-
Finance income received			614			619
Tax paid			(5,206)			(2,627)
Proceeds from new loan			11,910			-
Net cash flow			12,049			4,135
Cash and cash equivalents at beginning of year			58,281			54,146
Cash and cash equivalents at end of year			70,330			58,281

Trends and factors likely to affect future performance

The market for online fashion is forecast to continue to grow and, along with the increasing use of the internet globally, provides a favourable backdrop for the group with much opportunity for further growth. Customers throughout the world are seeking a wide choice of quality products at value prices lower than those available on the high street with the convenience of home delivery. The group's target market of 16 to 30 year olds has a high propensity to spend on fashion and the market is resilient to external macroeconomic factors.

Outlook

The outlook for online fashion retail is very positive, with young consumers globally preferring the choice, price and convenience of online shopping. For us this creates a great opportunity to continue to expand our business operations across the globe. With the addition this year of two highly successful and attractive brands, we are building a robust business capable of meeting the demand and challenges in our sector.

We will continue to focus on delivering our winning strategy, refining and adapting our proposition as market conditions change and as new opportunities arise. Our focus will be to continue to develop key markets with the greatest growth potential, to invest in technology and deliver the most exciting products at great prices to consumers with excellent customer service.

Trading in the first few weeks of the 2018 financial year has made a promising start and we are excited about the prospects of our development into a multi-branded business. We expect group revenue growth approaching 50%⁽¹⁾ over 2017, which includes growth from the recent acquisitions,  and a group EBITDA margin of approximately 10%."

(1)   Revenue growth from the boohoo brand is expected to be approximately 25% year on year. Revenue growth from the PrettyLittleThing brand is expected to be approximately 35% above the 12 month revenue to 28 February 2017 of £55 million. The balance of the growth to approaching 50% will come from the Nasty Gal brand.

Consolidated statement of comprehensive income

for the year ended 28 February 2017

	Note		2017	2016
			£000	£000
Revenue	2		294,635	195,394
Cost of sales			(133,806)	(82,483)
Gross profit			160,829	112,911
Distribution costs			(66,849)	(45,501)
Administrative expenses			(68,534)	(53,756)
Other income	3		4,862	1,392
Operating profit			30,308	15,046
Finance income	4		637	628
Profit before tax	5		30,945	15,674
Taxation	9		(6,284)	(3,236)
Profit for the year			24,661	12,438
Profit for the year attributable to:
Shareholders of the holding company			24,458	12,438
Non-controlling interest			203	-
			24,661	12,438
Total other comprehensive (expense)/income for the year, net of income tax
Net fair value loss on cash flow hedges 1			(6,747)	(5,661)
Total comprehensive income for the year			17,914	6,777
Total comprehensive income attributable to:
Shareholders of the holding company			17,711	6,777
Non-controlling interest			203	-
			17,914	6,777
Earnings per share	6
Basic			2.19p	1.11p
Diluted			2.16p	1.10p

1.        Net fair value gains on cash flow hedges will be reclassified to profit or loss during the two years to 28 February 2019.

Consolidated statement of financial position

at 28 February 2017

	Note		2017	2016
			£000	£000
Assets
Non-current assets
Intangible assets	10		35,446	4,542
Property, plant and equipment	11		32,019	21,426
Financial assets	19		231	28
Deferred tax	13		4,494	231
			72,190	26,227
Current assets
Inventories	14		34,170	18,669
Trade and other receivables	15		11,944	7,096
Financial assets	19		489	35
Cash and cash equivalents			70,330	58,281
Total current assets			116,933	84,081
Total assets			189,123	110,308
Liabilities
Current liabilities
Trade and other payables	16		(58,053)	(30,013)
Interest bearing loans and borrowings	17		(2,382)	-
Financial liabilities	19		(10,229)	(4,291)
Current tax liability			(3,761)	(1,967)
Total current liabilities			(74,425)	(36,271)
Non-current liabilities
Interest bearing loans and borrowings	17		(9,528)	-
Financial liabilities	19		(2,077)	(610)
Deferred tax	13		(2,597)	-
Total liabilities			(88,627)	(36,881)
Net assets			100,496	73,427
Equity
Share capital	18		11,233	11,233
Share premium			551,720	551,666
Capital redemption reserve			100	100
Hedging reserve			(11,586)	(4,839)
EBT reserve			(761)	(761)
Translation reserve			5	1
Reconstruction reserve			(515,282)	(515,282)
Non-controlling interest			3,978	-
Retained earnings			61,089	31,309
Total equity			100,496	73,427

Consolidated statement of changes in equity

		Share capital	Share premium	Capital redemption reserve	Hedging reserve	EBT reserve	Transla-tion reserve	Recon-struction reserve	Non-controlling interest	Retained earnings	Total equity
	£000		£000	£000	£000	£000	£000	£000	£000	£000	£000
Balance as at 1 March 2015	11,231		551,612	100	822	(430)	-	(515,282)	-	18,320	66,373
Purchase of shares by EBT	-		-	-	-	(331)	-	-	-	-	(331)
Share-based payments credit	2		54	-	-	-	-	-	-	551	607
Profit for the year	-		-	-	-	-	-	-	-	12,438	12,438
Translation of foreign operations	-		-	-	-	-	1	-	-	-	1
Other comprehensive expense	-		-	-	(5,661)	-	-	-	-	-	(5,661)
Balance at 29 February 2016	11,233		551,666	100	(4,839)	(761)	1	(515,282)	-	31,309	73,427
Acquisition of 66% interest in PrettyLittleThing.com Limited	-		-	-	-	-	-	-	3,775	-	3,775
Issue of shares	-		54	-	-	-	-	-	-	-	54
Share-based payments credit	-		-	-	-	-	-	-	-	1,895	1,895
Excess deferred tax on share-based payments	-		-	-	-	-	-	-	-	3,427	3,427
Profit for the year	-		-	-	-	-	-	-	203	24,458	24,661
Translation of foreign operations	-		-	-	-	-	4	-	-	-	4
Other comprehensive expense	-		-	-	(6,747)	-	-	-	-	-	(6,747)
Balance at 28 February 2017	11,233		551,720	100	(11,586)	(761)	5	(515,282)	3,978	61,089	100,496

Consolidated cash flow statement

for the year ended 28 February 2017

	Note		2017	2016
			£000	£000
Cash flows from operating activities
Profit for the year			24,661	12,438
Adjustments for:
Share-based payments charge			1,895	607
Depreciation charges and amortisation			4,765	3,058
Gain on sale of property, plant and equipment			-	(2)
Gain on option to acquire PrettyLittleThing.com Limited			(1,405)	-
Finance income			(637)	(628)
Tax expense			6,284	3,236
			35,563	18,709
Increase in inventories	14		(11,925)	(7,481)
Increase in trade and other receivables	15		(4,107)	(3,243)
Increase in trade and other payables	16		15,166	12,098
Cash generated from operations			34,697	20,083
Tax paid			(5,206)	(2,627)
Net cash generated from operating activities			29,491	17,456
Cash flows from investing activities
Acquisition of intangible assets	10		(18,311)	(1,488)
Acquisition of tangible property, plant and equipment	11		(12,364)	(12,123)
Proceeds from sale of property, plant and equipment			-	2
Acquisition of 66% interest in PrettyLittleThing.com Limited (excess of cash acquired over consideration)			655	-
Finance income			614	619
Net cash used in investing activities			(29,406)	(12,990)
Cash flows from financing activities
Purchase of own shares by EBT			-	(331)
Proceeds from the issue of ordinary shares			54	-
Proceeds from new loan			11,910	-
Net cash generated from/(used in) financing activities			11,964	(331)
Increase in cash and cash equivalents			12,049	4,135
Cash and cash equivalents at beginning of year			58,281	54,146
Cash and cash equivalents at end of year			70,330	58,281

Notes to the financial statements

(forming part of the financial statements)

1              Accounting policies

General information

boohoo.com 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

This condensed consolidated financial information for the year ended 28 February 2017 has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards as adopted by the European Union ("Adopted IFRSs"), IFRS IC Interpretations and the Companies (Jersey) Law 1991.

The financial information contained in this preliminary announcement for the years ended 28 February 2017 and 29 February 2016 does not comprise the group's statutory financial statements within the meaning of Companies (Jersey) Law 1991. Statutory accounts for the year ended 28 February 2017 will be filed with the Jersey Companies Registry in due course. The auditors' report on the statutory accounts for each of the years ended 28 February 2017 and 29 February 2016 is unqualified, does not draw attention to any matters by way of emphasis and does not contain any statement under any matters that are required to be reported by exception under Companies (Jersey) Law 1991.

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 preliminary announcement, the directors have also made reasonable and prudent judgements and estimates and prepared the preliminary announcement on the going concern basis. The preliminary 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.

Changes to accounting standards

There have been no changes to accounting standards during the year which have had or are expected to have any significant impact on the group.

2              Segmental analysis

IFRS 8, "Operating Segments", requires operating segments to be determined based on the group's internal reporting to the chief operating decision maker. The chief operating decision maker has been determined to be the executive board and has determined that the primary segmental reporting format of the group for 2017 is by brand. This is based on the group's management and internal reporting structure, boohoo and PrettyLittleThing ["PLT"]. In 2016 the boohoo business was the only segment and that segment was analysed into geographical regions.

The executive board assesses the performance of each segment based on revenue and gross profit after distribution expenses, which excludes administrative expenses.

		Year ended 28 February 2017
			boohoo	PLT	Total
			£000	£000	£000
Revenue			283,378	11,257	294,635
Cost of sales			(129,026)	(4,780)	(133,806)
Gross profit			154,352	6,477	160,829
Distribution costs			(64,375)	(2,474)	(66,849)
Segment result			89,977	4,003	93,980
Administrative expenses			-	-	(68,534)
Other income			-	-	4,862
Operating profit			-	-	30,308
Finance income			-	-	637
Profit before tax			-	-	30,945
		Year ended 29 February 2016
					boohoo
					£000
Revenue					195,394
Cost of sales					(82,483)
Gross profit					112,911
Distribution costs					(45,501)
Segment result					67,410
Administrative expenses					(53,756)
Other income					1,392
Operating profit					15,046
Finance income					628
Profit before tax					15,674

Revenue by geographic region

		2017	2016
		£000	£000
UK		181,981	130,096
Rest of Europe		34,735	22,630
USA		40,435	16,523
Rest of world		37,484	26,145
		294,635	195,394

3             Other income

		2017	2016
		£000	£000
Income from warehouse management services		3,457	1,033
Gift to group from director for benefit of employees		-	359
Gain on option to acquire PrettyLittleThing.com Limited		1,405	-
		4,862	1,392

4             Finance income

		2017	2016
		£000	£000
Bank interest received		637	628

 

5              Profit before tax

Profit before tax is stated after charging:	2017	2016
	£000	£000
Operating lease rentals for buildings	1,060	712
Depreciation of property, plant and equipment	2,488	1,551
Amortisation of intangible assets	2,277	1,507

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.

		2017	2016
Weighted average shares in issue for basic earnings per share		1,118,177,098	1,118,429,548
Dilutive share options		16,269,059	11,761,758
Weighted average shares in issue for diluted earnings per share		1,134,446,158	1,130,191,306
Earnings (£000)		24,458	12,438
Basic earnings per share		2.19p	1.11p
Diluted earnings per share		2.16p	1.10p

7              Staff numbers and costs

The average monthly number of persons employed by the group (including directors) during the year, analysed by category, was as follows:

	Number of employees
	2017	2016
Administration	689	489
Distribution	612	419
	1,301	908

The aggregate payroll costs of these persons were as follows:

	2017	2016
	£000	£000
Wages and salaries	31,567	23,461
Social security costs	2,897	2,224
Pension costs	410	325
Equity-settled share-based payment charges	1,895	607
Cash-settled share-based payment charges	1,654	-
	38,423	26,617

8              Directors' and key management compensation

	2017	2016
	£000	£000
Short-term employee benefits	3,886	2,925
Post-employment benefits	86	65
Equity-settled share-based payment charges	17	111
Cash-settled share-based payment charges	1,120	-
	5,109	3,101

Directors' and key management compensation comprises the directors and executive committee members.

9              Taxation

	2017	2016
	£000	£000
Analysis of charge in year
Current tax on income for the year	7,126	3,423
Adjustments in respect of prior year taxes	(6)	(2)
Deferred taxation	(836)	(185)
Tax on profit on ordinary activities	6,284	3,236
The total tax charge differs from the amount computed by applying the blended UK rate of 20.0% for the year (2016: 20.1%) to profit before tax as a result of the following:
Profit on ordinary activities before tax	30,945	15,674
Profit before tax multiplied by the standard blended rate of corporation tax of the UK of 20.0% (2016: 20.1%)	6,189	3,148
Effects of:
Expenses not deductible for tax purposes	246	14
Income not subject to tax	(320)	-
Adjustments in respect of prior year taxes	(6)	(2)
Overseas tax differentials	5	4
Depreciation in excess of capital allowances	170	72
Tax on profit on ordinary activities	6,284	3,236

A change to reduce the main rate of corporation tax to 17% from 1 April 2020 was announced in the Chancellor's budget on 16 March 2016. Changes to reduce the UK corporation tax rate to 19% from 1 April 2017 and to 17% from 1 April 2020 had already been substantively enacted on 15 September 2016.

10           Intangible assets

	Patents and licences	Trademarks	Customer lists	Computer software	Total
	£000	£000	£000	£000	£000
Cost
Balance at 1 March 2015	309	-	-	5,795	6,104
Additions	-	-	-	1,488	1,488
Disposals	-	-	-	(208)	(208)
Balance at 29 February 2016	309	-	-	7,075	7,384
On acquisition	-	10,000	4,800	152	14,952
Additions	1	15,070	1,026	2,213	18,310
Disposals	-	-	-	(232)	(232)
Balance at 28 February 2017	310	25,070	5,826	9,208	40,414
Accumulated amortisation
Balance at 1 March 2015	118	-	-	1,425	1,543
Amortisation for year	31	-	-	1,476	1,507
Disposals	-	-	-	(208)	(208)
Balance at 29 February 2016	149	-	-	2,693	2,842
On acquisition	-	-	-	81	81
Amortisation for year	31	167	267	1,812	2,277
Disposals	-	-	-	(232)	(232)
Balance at 28 February 2017	180	167	267	4,354	4,968
Net book value
At 28 February 2015	191	-	-	4,370	4,561
At 29 February 2016	160	-	-	4,382	4,542
At 28 February 2017	130	24,903	5,559	4,854	35,446

The costs and accumulated depreciation of trademarks and customer lists on acquisition represent those of PrettyLittleThing.com Limited (note 12) and the costs of trademarks and customer lists additions represent those of Nasty Gal.
 

11           Property, plant and equipment

	Short leasehold	Fixtures and fittings	Computer equipment	Motor vehicles	Land & buildings	Total
	£000	£000	£000	£000	£000	£000
Cost
Balance at 1 March 2015	643	3,323	1,311	91	7,677	13,045
Additions	123	6,201	285	22	5,492	12,123
Disposals	-	(26)	(31)	-	-	(57)
Balance at 29 February 2016	766	9,498	1,565	113	13,169	25,111
On acquisition	409	157	401	27	-	994
Additions	172	6,631	689	145	4,727	12,364
Disposals	(226)	(681)	(171)	-	-	(1,078)
Balance at 28 February 2017	1,121	15,605	2,484	285	17,896	37,391
Accumulated depreciation
Balance at 1 March 2015	363	1,022	571	30	205	2,191
Depreciation charge for the year	116	819	454	21	141	1,551
Disposals	-	(26)	(31)	-	-	(57)
Balance at 29 February 2016	479	1,815	994	51	346	3,685
On acquisition	66	30	176	5	-	277
Depreciation charge for the year	118	1,538	512	66	254	2,488
Disposals	(226)	(681)	(171)	-	-	(1,078)
Balance at 28 February 2017	437	2,702	1,511	122	600	5,372
Net book value
At 28 February 2015	280	2,301	740	61	7,472	10,854
At 29 February 2016	287	7,683	571	62	12,823	21,426
At 28 February 2017	684	12,903	973	163	17,296	32,019

The costs and accumulated depreciation on acquisition represent those of PrettyLittleThing.com Limited (note 12).

12           Investments

The subsidiaries held and consolidated in these financial statements are set out below:

Name of company	Principal activity	Country of incorporation	Address	Percentage ownership
PrettyLittleThing.com Limited	Internet fashion retail	UK	Wellington Mill, Pollard Street East, Manchester	66%
21Three Trading Company Limited	Dormant company	UK	Wellington Mill, Pollard Street East, Manchester	66%
ABK Limited	Holding company	Jersey	12 Castle St, St Helier, Jersey	100%
boohoo.com UK Limited	Trading company	UK	49-51 Dale St, Manchester	100%
Nasty Gal Limited	Trading company	UK	49-51 Dale St, Manchester	100%
Boo Who Limited	Dormant company	UK	49-51 Dale St, Manchester	100%
boohoo.com USA Limited	Dormant company	UK	49-51 Dale St, Manchester	100%
boohoo.com USA Inc	Marketing office	USA	3 West 13th Street, New York	100%
boohoo.com Australia Pty Ltd	Marketing office	Australia	468 St Kilda Road, Melbourne	100%
Shanghai Wasabi Frog Boohoo Ltd	Dormant company	China	49-51 Dale St, Manchester	100%

 

The company acquired a 66% interest in PrettyLittleThing.com Limited ["PLT"] (formerly 21Three Clothing Company Limited) on 3 January 2017. The consideration was £5.9 million, being £3.3 million plus 'cash less debt' of £2.6 million, payable in cash.

PLT is an on-line retailer of women's clothing, shoes and accessories. The directors considered that the acquisition of a complementary brand with differentiated product diversifies risk and adds market share in the rapidly expanding global on-line clothing market.                                                                             

The fair value assets and liabilities on the acquisition date were as follows:                                                                     

		£000
Fixed assets
Intangible assets - trademark		10,000
Intangible assets - customer lists		4,800
Tangible fixed assets		787
Deferred tax asset		206
		15,793
Current assets
Stock		3,576
Trade and other receivables		718
Cash		6,579
		10,873
Current liabilities
Trade creditors and accruals		(12,878)
Deferred tax liability on intangible assets		(2,684)
Net assets		11,104
Non-controlling interest		(3,775)
Share of fair value net assets acquired		7,329

The fair value of the trademark was calculated using the relief from royalty method, with assumptions as follows: royalty rate 3.0%; and discount rate 30%.The fair value of the customer lists was calculated using the cost that PLT has incurred to acquire the customers during the period prior to acquisition. Trade and other receivables represents amounts owing from wholesale customers and prepaid expenses. The non-controlling interest of £3.8 million was valued as 34% of the fair value of the net assets.

The option gain in the income statement, included in other income, is as follows:                                                         

		£000
Consideration		5,924
Fair value of net assets		(11,104)
Non-controlling interest		3,775
Option gain		1,405

Explanation of the gain on acquisition: boohoo.com plc entered into a call option agreement with the shareholders of PLT in which the company obtained an option to purchase 100% of PLT for £5 million before March 2017. The consideration set at the time of the agreement is considerably lower than the fair value of the net assets at the acquisition date because of the high growth and success of the company. In order to ensure the continued success of PLT under group ownership, the original option agreement has been replaced by a new agreement, whereby the remaining senior management of PLT have been incentivised by retaining 34% of the share capital of PLT, which the directors of boohoo.com plc consider is in the best interests of the group. The consideration ultimately payable for the remaining 34% is dependent on a number of factors including the financial performance of PLT but is limited to a maximum of the market value at the future option date.

Acquisition costs included in administration expenses amounted to £0.3 million.                                                                          

The statements of comprehensive income of PrettyLittleThing.com Limited ["PLT"] for the 2 months from acquisition and the group for 12 months, as if PLT had been acquired since the beginning of the financial year, are as follows:                

			PLT: 2 months from 3 January  2017		Group: 12 months from 1 March 2016
			£000		£000
Revenue			11,257		338,704
Cost of sales			(4,780)		(152,931)
Gross profit			6,477		185,773
Distribution costs			(2,474)		(76,042)
Administrative expenses			(3,200)		(82,298)
Other income			-		4,862
Operating profit			803		32,295
Finance income			-		637
Profit before tax			803		32,932
Taxation			(205)		(6,079)
Profit after tax			598		26,853

 

13           Deferred tax

Assets

	Depreciation in excess of capital allowances	Share-based payments	Total
	£000	£000	£000
Asset at 1 March 2015	(12)	58	46
Recognised in statement of comprehensive income	74	111	185
Asset at 29 February 2016	62	169	231
Recognised in statement of comprehensive income	170	666	836
Credit in equity	-	3,427	3,427
Asset at 28 February 2017	232	4,262	4,494

Liabilities

		Business combinations	Total
		£000	£000
Recognised in statement of comprehensive income		(2,597)	(2,597)
Liability at 28 February 2017		(2,597)	(2,597)

 

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.

 

14           Inventories

	2017	2016
	£000	£000
Finished goods	34,170	18,669

The value of inventories included within cost of sales for the year was £133,515,000 (2016: £82,187,000). An impairment provision of £291,000 (2016: £296,000) was charged to the statement of comprehensive income.

15           Trade and other receivables

	2017	2016
	£000	£000
Amounts due from related party undertakings	-	613
Trade and other receivables	9,446	4,937
Prepayments and accrued income	2,498	1,546
	11,944	7,096

Trade and other receivables represent amounts due from wholesale customers and advance payments to suppliers. Receivables past due are £698,000 (2016: £142,000). The provision for impairment of receivables is £573,000 (2016: £318,000).

16           Trade and other payables

	2017	2016
	£000	£000
Trade payables	23,124	11,255
Amounts owed to related party undertakings	2	17
Other payables	3,090	175
Accruals and deferred income	27,465	15,272
Taxes and social security payable	4,372	3,294
	58,053	30,013

17           Interest-bearing loans and borrowings

This note provides information about the contractual terms of the group's interest-bearing loans and borrowings, which are measured at amortised cost.

	2017	2016
	£000	£000
Non-current liabilities
Secured bank loans	9,528	-
Current liabilities
Current portion of secured bank loans	2,382	-

Terms and debt repayment schedule

				Nominal
				interest	Year of	2017	2016
			Currency	rate	maturity	£000	£000
Secured bank loan			GB£	LIBOR + 0.95%	2022	11,910	-

18           Share capital and reserves

	2017	2016
	£000	£000
1,123,304,869 authorised and fully paid ordinary shares of 1p each (2016: 1,123,267,330)	11,233	11,233

On 24 February 2017, 37,539 new ordinary shares were issued to non-executive directors as part of their annual remuneration.

Under merger accounting principles, a reconstruction reserve of £515,282,000 was created upon the acquisition of the group and flotation on 14 March 2014.

No dividends have been paid or are payable for the year ended 28 February 2017 (2016: £nil).

19           Financial instruments

	2017	2016
	£000	£000
Financial assets
Cash and cash equivalents	70,330	58,281
Cash flow hedges	720	63
Trade and other receivables	9,446	5,550
	80,496	63,894

	2017	2016
	£000	£000
Financial liabilities
Cash flow hedges	12,306	4,901
Trade and other payables	53,681	26,719
Interest bearing loans and borrowings	11,910	-
	77,897	31,620

20           Capital commitments

Capital expenditure contracted for at the end of the reporting year but not yet incurred is as follows:

	2017	2016
	£000	£000
Property, plant and equipment	2,100	-

21           Operating Leases            

The group has lease agreements in respect of properties, plant and equipment, for which the payments extend over a number of years. The totals of future minimum lease payments under non-cancellable operating leases due in each period are:        

	2017	2016
	£000	£000
Within one year	1,229	734
Within two to five years	2,785	2,363
In more than five years	916	1,445
	4,930	4,542

22           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 brand and trading name. 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 28 February 2017, there are no pending claims or proceedings against the group which are expected to have material adverse effect on its liquidity or operations.

Appendix - prior period revenues by region

Revenue by period for the twelve months ended 28 February 2017

£'000	3m to 31 May				3m to 31 August				6m to 31 August
	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER
Total	58,222	41,322	41%	42%	69,094	49,462	40%	40%	127,316	90,784	40%	41%
Sales by region
UK	37,396	26,273	42%	42%	44,300	32,855	35%	35%	81,696	59,128	38%	38%
ROE	6,938	4,943	40%	43%	7,775	5,460	42%	40%	14,713	10,403	41%	41%
USA	6,385	3,815	67%	60%	8,841	4,086	116%	100%	15,226	7,901	93%	81%
ROW	7,503	6,291	19%	27%	8,178	7,061	16%	27%	15,681	13,352	17%	27%

£'000	4m to 31 December				2m to 28 February				12m to 28 February
	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER	FY17	FY16	yoy %	yoy % CER
Total	114,294	73,692	55%	52%	53,025	30,918	72%	67%	294,635	195,394	51%	49%
Sales by region
UK	65,465	49,701	32%	32%	34,820	21,267	64%	64%	181,981	130,096	40%	40%
ROE	13,963	8,588	63%	54%	6,059	3,639	67%	47%	34,735	22,630	53%	47%
USA	19,299	5,962	224%	183%	5,910	2,660	122%	105%	40,435	16,523	145%	124%
ROW	15,567	9,441	65%	56%	6,236	3,352	86%	74%	37,484	26,145	43%	45%

Revenue by period for the year to 29 February 2016

£'000	3m to 31 May				3m to 31 August				6m to 31 August
	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER
Total	41,322	30,659	35%	37%	49,462	36,538	35%	40%	90,784	67,197	35%	39%
Sales by region
UK	26,273	20,686	27%	27%	32,855	24,919	32%	32%	59,128	45,605	30%	30%
ROE	4,943	3,891	27%	45%	5,460	4,828	13%	26%	10,403	8,719	19%	34%
USA	3,815	1,485	157%	143%	4,086	1,382	196%	181%	7,901	2,867	176%	161%
ROW	6,291	4,597	37%	48%	7,061	5,409	31%	55%	13,352	10,006	33%	52%

£'000	4m to 31 December				2m to 29 February				12m to 29 February
	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER	FY16	FY15	yoy %	yoy % CER
Total	73,692	50,793	45%	49%	30,918	21,861	41%	40%	195,394	139,851	40%	42%
Sales by region
UK	49,701	34,179	45%	45%	21,267	14,558	46%	46%	130,096	94,342	38%	38%
ROE	8,588	6,464	33%	44%	3,639	2,903	25%	20%	22,630	18,086	25%	35%
USA	5,962	2,639	126%	116%	2,659	1,504	77%	63%	16,523	7,009	136%	123%
ROW	9,441	7,511	26%	41%	3,353	2,895	16%	17%	26,145	20,414	28%	42%

CER in this appendix for the year ended 29 February 2016 is calculated using exchange rates prevailing during the year ending 29 February 2016.

Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate

 

END

 

 

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