TIDMBOO

RNS Number : 5346N

boohoo group plc

25 September 2019

For immediate release 25 September 2019

The information contained within this announcement is deemed by the company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

boohoo group plc - interim results for the six months ended 31 August 2019

"Leading the fashion eCommerce market"

 
                                                6 months        6 months   Change 
                                            to 31 August    to 31 August 
                                                    2019            2018 
                                             GBP million     GBP million 
----------------------------------------  --------------  --------------  -------- 
 Revenue                                           564.9           395.3    +43% 
 Gross profit                                      306.5           218.6    +40% 
 Gross margin                                      54.3%           55.3%   -100bps 
 Adjusted EBITDA(1)                                 60.7            39.6    +53% 
 % of revenue                                      10.8%           10.0%   +80bps 
 Adjusted EBIT(2)                                   51.2            35.3    +45% 
 % of revenue                                       9.1%            8.9%   +20bps 
 Adjusted profit before tax(3)                      51.8            35.8    +45% 
 Profit before tax                                  45.2            24.7    +83% 
 Adjusted diluted earnings per share(4)            2.91p           1.99p    +46% 
 Diluted earnings per share                        2.48p           1.39p    +78% 
 Net cash(5) at period end                         207.4           155.6   +51.8 m 
----------------------------------------  --------------  --------------  -------- 
 

Highlights

Group

   --    Revenue GBP564.9 million, up 43% (43% CER(6) ) 

-- Strong revenue growth across all brands and geographies (UK: +35%; international: +55%). International now 44% of group revenue (2019: 41%)

-- Robust balance sheet with net cash of GBP207.4 million (2019: GBP155.6 million) with healthy operating cash flow of GBP55.9 million (2019: GBP55.7 million) and free cash flow of GBP30.1 million (+22%)

-- Acquisition of the MissPap, Karen Millen and Coast brands, complementary additions to the group's scalable multi-brand platform

boohoo

   --    Revenue GBP281.0 million, up 34% with market share gains in all focus markets 
   --    Gross margin 53.6%, up 20bps 
   --    8.4 million active customers(7) , up 20% on prior year 

PrettyLittleThing

   --    Revenue GBP237.6 million, up 41% 
   --    Gross margin 55.3%, down 200 bps 
   --    5.7 million active customers, up 43% 
   --    Outstanding market share and revenue growth in all markets 

Nasty Gal

   --    Revenue GBP43.9 million, up 148% 
   --    Gross margin 54.2%, down 480bps driven by refinements to the customer proposition 
   --    1.5 million active customers, up 112% 
   --    Strong revenue growth across all markets, gathering momentum 

Guidance

As announced on 5 September 2019, group revenue growth for the year to 29 February 2020 is expected to be 33% to 38%, with adjusted EBITDA margin for the financial year to remain at around 10%, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half year. We reiterate our medium term guidance to deliver revenue growth of at least 25% per annum and adjusted EBITDA margin of around 10%.

John Lyttle CEO, commented:

"It has been a fantastic first half of the year for the group. We have delivered significant market share gains across all of our key markets, and for the first time in our history, revenue has exceeded GBP1 billion in the last 12 months. We have delivered strong growth and operating leverage in our more established brands and will continue to invest in both our more established and newly-acquired brands. We enter the second half of the year well-placed and confident that our platform, which combines the latest fashion, great prices and excellent customer service, all underpinned by a well-invested infrastructure, will deliver further market share gains."

Investor and Analyst Meeting

A meeting for analysts will be held at 9.30am today at the offices of Buchanan, 107 Cheapside, London, EC2V 6DN. boohoo group plc's interim results 2020 are available at www.boohooplc.com.

A live audio webcast will be available at 9.30am via the following link:

https://webcasting.buchanan.uk.com/broadcast/5d541fada98d141c9d04c8ed

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

 
 Enquiries 
 
 boohoo group plc 
 Neil Catto, Chief Financial Officer                 Tel: +44 (0)161 233 
                                                      2050 
 Alistair Davies, Investor Relations                 Tel: +44 (0)161 233 
                                                      2050 
 Clara Melia, Investor Relations                     Tel: +44 (0)20 3289 
                                                      5520 
 
 Zeus Capital - Nominated adviser and joint broker 
 Nick Cowles/Andrew Jones (Corporate Finance)        Tel: +44 (0)161 831 
                                                      1512 
 John Goold/Benjamin Robertson (Corporate Broking)   Tel: +44 (0)20 3829 
                                                      5000 
 
 Jefferies - Joint broker 
 Philip Noblet/Max Jones                             Tel: +44 (0)20 7029 
                                                      8000 
 
 Buchanan - Financial PR adviser                     boohoo@buchanan.uk.com 
 Richard Oldworth/Sophie Wills/Kim Looringh-van      Tel: +44 (0)20 7466 
  Beeck/Toto Berger                                   5000 
 
 

Notes:

(1) Adjusted EBITDA is calculated as profit before tax, interest, depreciation, amortisation, share-based payment charges and exceptional items.

(2) Adjusted EBIT is calculated as profit before tax, interest, share-based payment charges, amortisation of acquired intangible assets and exceptional items.

(3) Adjusted profit before tax is calculated as profit before tax, excluding share-based payment charges, amortisation of acquired intangible assets and exceptional items.

(4) Adjusted diluted earnings per share is calculated as diluted earnings per share, adding back amortisation of acquired intangible assets, share-based payment charges and exceptional items.

(5) Net cash is cash less borrowings.

(6) CER designates Constant Exchange Rate translation of foreign currency revenue, which gives a truer indication of the performance in international markets by removing year-to-year exchange rate movements when local currency sales are converted to sterling.

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

About boohoo group plc

"Leading the fashion eCommerce market"

Founded in Manchester in 2006, boohoo is an inclusive and innovative brand targeting young, value-orientated customers. For 13 years, boohoo has been pushing boundaries to bring its customers up-to-date and inspirational fashion, 24/7. boohoo has grown rapidly in the UK and internationally, expanding its offering with range extensions into menswear, through boohooMAN.

In early 2017 the group extended its customer offering through the acquisitions of the vibrant fashion brand PrettyLittleThing, and free-thinking brand Nasty Gal. In March 2019 the group acquired the MissPap brand and in August 2019, the Karen Millen and Coast brands, all complementary to the group's scalable multi-brand platform. United by a shared customer value proposition, our brands design, source, market and sell great quality clothes, shoes and accessories at unbeatable prices. These investment propositions have helped us grow from a single brand, into a major multi-brand online retailer, leading the fashion eCommerce market for 16 to 40-year-olds around the world. As at 31 August 2019, the boohoo group had around 13 million active customers across all its brands around the world.

Cautionary Statement

Certain statements included or incorporated by reference within this announcement may constitute "forward-looking statements" in respect of the group's operations, performance, prospects and/or financial condition. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words and words of similar meaning as "anticipates", "aims", "due", "could", "may", "will", "should", "expects", "believes", "intends", "plans", "potential", "targets", "goal" or "estimates". By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No responsibility or obligation is accepted to update or revise any forward-looking statement resulting from new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company. Past

performance cannot be relied upon as a guide to future performance and persons needing advice should consult an independent financial adviser. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws.

Review of the business

Group overview

Group revenue for the half year increased by 43% (43% CER) on the first half of the previous year to GBP564.9 million (2019: GBP395.3 million). Revenue growth across all focus territories and brands was strong.

Adjusted EBITDA was GBP60.7 million (2019: GBP39.6 million), an increase of 53% on the first half of the previous year, with efficiency improvements, increased leverage of fixed overheads and effective marketing across the group leading to an adjusted EBITDA margin of 10.8% (2019: 10.0%). Profit before tax was GBP45.2 million (2019: GBP24.7 million), an increase of 83%. Adjusted diluted earnings per share was 2.91p, up 46% on the prior half year. Basic earnings per share rose to 2.55p, an increase of 80% (2019: 1.42p).

The group's performance over the half year has been outstanding, with strong momentum across the business driving impressive revenue growth in all our brands and in all key focus territories. The group is increasing market share through highly effective marketing strategies, employing a mix of high profile celebrity campaigns, influencer associations, and digital and traditional marketing initiatives. Our scalable, multi-brand platform has enabled us to take on three additional women's brands - MissPap, Karen Millen and Coast. Revenue from MissPap is starting to grow rapidly since go-live in April, whilst Karen Millen and Coast will commence trading online in October. Continuous improvement in the customer proposition is a top priority, with new apps, additional payment methods and improved delivery being deployed to ensure we keep pace with technological developments and remain best-in-class.

Cash generation was strong, with operating cash flow of GBP55.9 million (2019: GBP55.7 million) and free cash flow up 22% to GBP30.1 million. Capital expenditure was GBP6.4 million and GBP19.4 million was spent on the acquisition of the three new brands. Our net cash balance at the period end increased to GBP207.4 million (2019: GBP155.6 million).

Distribution centres

The group operates through two distribution centres: the Burnley facility services boohoo, boohooMAN, Nasty Gal and, in the second half year, will additionally serve MissPap, Karen Millen and Coast; and the Sheffield facility, which is managed by a third-party, services PrettyLittleThing. Automation at the Burnley warehouse went live in April 2019 and has been instrumental in improving efficiency and increasing throughput, enabling the facility to handle the rapid growth of the group and maintain high customer service levels. Both facilities give us the scale and capacity required as the group develops.

Technology

New apps in key markets for boohoo, boohooMAN and Nasty Gal were developed in-house and released in the first half year. These have been highly successful, with a high rate of adoption by users. Bringing the apps in-house has resulted in a far better user experience, with the added advantage of greater flexibility for further development and faster introductions of new features.

New payment methods have been introduced in several markets, giving customers more choice and flexibility, which has contributed to improvements in order size and frequency.

boohoo (including boohooMAN)

Performance

Revenue for the half year increased to GBP281.0 million, up 34% on the first half of the previous year, with growth in all our key focus markets.

Growth in the UK has continued in the first half year, whilst international growth has remained exceptionally strong, especially so in the USA and northern Europe. Gross margin increased by 20bps to 53.6%, driven by an improved product offering and refinement of the customer proposition.

Product

Core product lines are showing further improvement on the previous year, which together with the comprehensive size range offerings and new product introductions, are delivering growth and meeting consumer trends. In June we introduced our first dedicated recycled women's clothing range, "for the future", which is the start of our drive for a more sustainable future in fashion options. We have also extended our beauty range, offering a great collection of well-known brands alongside a boohoo branded range. boohooMAN is continuing to grow strongly as its product range widens and new collections and size ranges are added. With our constantly refreshed product offering, ensuring the very latest fashion trends are on our website within days, boohoo remains the most relevant brand for young consumers who want great fashion at unbeatable prices.

Marketing

Marketing efforts continued to focus on a successful mix of social media influencers, student activation, digital acquisition and retention, PR and above-the-line advertising in the form of TV and out-of-home advertising. Our investment in producing locally relevant content is also proving highly successful as we expand internationally.

Our global social media audience now includes over 6 million followers on Instagram and 3 million Facebook likes. This summer saw us working with a host of local brand ambassadors and the return of global ambassador, Jordyn Woods. All collections have featured an inspiring range of day-to-evening looks with that synonymous boohoo glamour.

boohooMAN collaborated with American rap artist Quavo, launching an inspirational collection for the spring/summer.

Customer interaction

Active customer numbers over the last 12 months increased by 20% to 8.4 million. Conversion rate to sale increased from 3.1% to 3.3% of sessions, when measured on website statistics alone. Order frequency increased 2%, with customers placing an order with us, on average, 2.11 times in 12 months, whilst the number of items per basket increased 9% to 3.30.

Of our seventeen country-specific websites, six are translated into local languages, with Swedish being added during the period and improving the customer experience and conversion, and we have plans for further translated sites. Our Instashop is a great way to shop for the latest celebrity and influencer looks, whilst the visual search facility on the app enables customers to locate matching products from a photograph. The addition of new payment methods in different countries ensures we keep abreast of customer preferences and optimise conversion. A virtual assistant helps answer customer queries and speeds up our response time to offer a more satisfying customer relationship experience.

PrettyLittleThing

Performance

PrettyLittleThing ("PLT") achieved strong revenue growth of 41% over the first half of the previous year, reaching GBP237.6 million. Growth across all territories was strong, with the US and French markets performing exceptionally well. Gross margin has decreased to 55.3% (2019: 57.3%), as we optimise growth and refine the customer proposition.

Product

PLT brings the latest and most relevant celebrity looks at affordable prices to our customers, with a choice of over 23,500 styles and new items available daily. Our product range continued to expand during the first half year with further strong growth in the "shape" ranges including Petite, Curve and Plus. We have also continued to expand our accessories and beauty offering, partnering with major beauty brands to offer a one-stop shop for our customers. During the first half year we continued to bring the latest celebrity looks to customers, with a second collaboration with Ashley Graham and a swimwear collaboration with R&B artist Ashanti.

Marketing

We have continued to extend our social media reach by increasing the number of social media influencers, combined with celebrity campaigns and collaborations. These include Ashley Graham, Ashanti and the recently-announced collaboration with USA rapper Saweetie, all of which help the brand reach its target audience. We have 11 million Instagram followers, 2 million likes on Facebook and 0.3 million followers on Twitter. We grew our Tik Tok following from 20,000 to 310,000 and are the fastest growing fashion brand on the channel. We have presence on other social media channels and continue to develop our exposure to new and emerging platforms.

Customer interaction

We support eight country-specific websites and have plans for further foreign language sites, following the success of the French language site introduced in the previous financial year. For the UK market, we offer a wide range of free return options. We have expanded our customer payment options through the first half of the year as we seek to introduce the latest technologies and payment options to give our customers greater flexibility in their shopping experience.

Active customer numbers over the last 12 months increased by 43% to 5.7 million. Conversion rate to sale increased from 3.3% to 3.6% of sessions, when measured on website statistics alone. Order frequency increased 5% to 2.97 times in 12 months, whilst the number of items per basket increased 5% to 2.96.

Nasty Gal

Performance

Revenue growth across all territories has been exceptionally strong, giving an overall 148% increase to GBP43.9 million. Revenue growth in the USA, the largest single market for the brand, has continued at a significant pace. UK and International growth has been exceptional, with the brand gaining momentum through growing consumer awareness. Gross margin at 54.2% (2019: 59.0%) is in line with the re-alignment of the customer proposition.

Product

We have continued to build the product base in line with the expansion of the business, with the number of styles doubling to over 13,000. Product pricing remains higher than that of boohoo and PrettyLittleThing, whilst the product is differentiated in line with the brand's heritage, including the Nasty Gal Vintage collection, which is part of the ongoing product strategy and representative of the brand's DNA.

Marketing

The marketing strategy has focussed on building and extending the number of bloggers and influencers and staging key media events to engage customer interest and promote brand loyalty. This summer we launched an iconic collection edited by Emily Ratajkowski (EmRata) and teamed up with Claire Rose Cliteur with a beautiful collection of transitional season pieces.

On social media Nasty Gal has 3.8 million followers on Instagram, 1.3 million Facebook likes and 0.2 million followers on Twitter.

Customer interaction

Nasty Gal has seven country and regional websites and apps for the UK, US and the Australian markets. The new apps were brought in-house during the period, bringing a significant improvement in the customer experience and greater flexibility for us to enhance the app in short timescales.

Active customer numbers over the last 12 months increased by 112% to 1.5 million. Conversion rate to sale increased from 1.9% to 2.2% of sessions, when measured on website statistics alone. Order frequency increased 13% to 1.55 times in 12 months, whilst the number of items per basket increased 18% to 3.44.

Financial review

Group revenue by brand

 
                          6 months to       6 months to   Change   Change 
                       31 August 2019    31 August 2018 
                               GBP000            GBP000               CER 
-------------------  ----------------  ----------------  -------  ------- 
 boohoo                       281,033           209,006     +34%     +35% 
 PrettyLittleThing            237,609           168,612     +41%     +41% 
 Nasty Gal                     43,850            17,691    +148%    +153% 
 Other                          2,374                 -        -        - 
                              564,866           395,309     +43%     +43% 
===================  ================  ================  =======  ======= 
 

Group revenue by geographical market

 
                       6 months to       6 months to   Change   Change 
                    31 August 2019    31 August 2018 
                            GBP000            GBP000               CER 
----------------  ----------------  ----------------  -------  ------- 
 UK                        314,954           234,057     +35%     +35% 
 Rest of Europe             87,486            51,250     +71%     +69% 
 USA                       110,729            68,171     +62%     +65% 
 Rest of world              51,697            41,831     +24%     +25% 
----------------  ----------------  ----------------  -------  ------- 
                           564,866           395,309     +43%     +43% 
================  ================  ================  =======  ======= 
 

KPIs

Group

 
                                    6 months    6 months to   Change 
                                          to      31 August 
                                   31 August        2018(5) 
                                        2019 
 Active customers(1)            13.0 million   10.0 million     +30% 
 Number of orders               20.3 million   14.7 million     +38% 
 Order frequency(2)                     2.87           2.68      +7% 
 Conversion rate to sale (3)           3.26%          3.09%   +17bps 
 Average order value(4)             GBP43.26       GBP40.57      +7% 
 Number of items per basket             3.15           2.93      +7% 
-----------------------------  -------------  -------------  ------- 
 
   1.     Defined as having shopped in the last 12 months 
   2.     Defined as number of orders in last 12 months divided by number of active customers 
   3.     Defined as the percentage of website orders taken to internet sessions 
   4.     Calculated as gross sales including sales tax divided by the number of orders 
   5.     Prior period numbers restated to include marketplace data 

Consolidated summary income statement

 
                                                                              6 months to       6 months to     Change 
                                                                           31 August 2019    31 August 2018 
                                                                                   GBP000            GBP000 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 Revenue                                                                          564,866           395,309       +43% 
 Cost of sales                                                                  (258,335)         (176,732) 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 Gross profit                                                                     306,531           218,577       +40% 
 Gross margin %                                                                     54.3%             55.3%   -100 bps 
 
 Operating costs                                                                (245,904)         (179,121) 
 Other income                                                                         112               120 
 Adjusted EBITDA                                                                   60,739            39,576       +53% 
 Adjusted EBITDA margin %                                                           10.8%             10.0%    +80 bps 
 
 Depreciation                                                                     (7,906)           (3,090) 
 Amortisation of other intangible assets                                          (1,589)           (1,163) 
 Adjusted EBIT                                                                     51,244            35,323       +45% 
 
 Adjusting items: 
 Amortisation of acquired intangible assets                                       (2,312)           (2,224) 
 Equity-settled share-based payment charges                                       (4,355)           (2,464) 
 Exceptional costs - warehouse relocation                                               -           (6,436) 
 Operating profit                                                                  44,577            24,199       +84% 
 
 Finance income                                                                       770               577 
 Finance expense                                                                    (196)              (79) 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 Profit before tax                                                                 45,151            24,697       +83% 
 Tax                                                                              (9,076)           (4,867) 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 Profit after tax for the period                                                   36,075            19,830       +82% 
=======================================================================  ================  ================  ========= 
 
 Basic earnings per share                                                           2.55p             1.42p       +80% 
 Diluted earnings per share                                                         2.48p             1.39p       +78% 
 
 Adjusted profit after tax for the period                                          41,515            28,872       +44% 
 Amortisation of acquired intangible assets                                       (2,312)           (2,224) 
 Share-based payment charges                                                      (4,355)           (2,464) 
 Exceptional costs - warehouse relocation                                               -           (6,436) 
 Adjustment for tax                                                                 1,227             2,082 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 Profit after tax for the period                                                   36,075            19,830 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 
 Adjusted profit for the period attributable to shareholders of the 
  company                                                                          34,695            23,361       +49% 
 Adjusted diluted earnings per share                                                2.91p             1.99p       +46% 
-----------------------------------------------------------------------  ----------------  ----------------  --------- 
 

Taxation

The effective rate of tax for the half-year was 20.1% (2019: 19.7%), which is more than the blended UK statutory rate of tax for the year of 19%, principally due to depreciation of buildings in excess of capital allowances.

Earnings per share

Basic earnings per share increased by 80% from 1.42p to 2.55p. Adjusted diluted earnings per share was 2.91p, up 46% on the first half of the prior year.

Consolidated statement of financial position

 
                                             6 months     6 months 
                                                   to           to 
                                            31 August    31 August 
                                                 2019         2018 
                                               GBP000       GBP000 
---------------------------------------   -----------  ----------- 
 Intangible assets                             43,842       29,074 
 Property, plant and equipment                108,460       98,505 
 Right-of-use assets                           15,691            - 
 Financial assets                                 298          585 
 Deferred tax asset                             4,080        4,153 
----------------------------------------  -----------  ----------- 
 Non-current assets                           172,371      132,317 
 
 Working capital                             (58,746)     (53,597) 
 Lease liabilities                           (17,709)            - 
 Net financial liabilities                   (27,166)      (1,895) 
 Cash and cash equivalents                    213,392      163,889 
 Interest bearing loans and borrowings        (5,955)      (8,337) 
 Deferred tax liability                       (2,047)      (2,001) 
 Current tax liability                        (6,844)      (4,707) 
 Net assets                                   267,296      225,669 
========================================  ===========  =========== 
 

Liquidity and financial resources

Free cash flow was GBP30.1 million compared to GBP24.5 million in the previous financial half-year, up 22% after inventory build ahead of our rapid growth and the acquisition of the new brands. Capital expenditure was GBP6.4 million and GBP19.4 million was spent on the acquisition of the three new brands. The closing cash balance for the group was GBP213.4 million and the net cash balance, after deducting bank loans, was GBP207.4 million.

 
 Consolidated cash flow statement 
                                                                 6 months     6 months 
                                                                       to           to 
                                                                31 August    31 August 
                                                                     2019         2018 
                                                                   GBP000       GBP000 
--------------------------------------------  ------  -------------------  ----------- 
 
 Profit for the period                                             36,075       19,830 
 
 Depreciation charges and amortisation                             11,807        6,477 
 Share-based payments charge                                        4,355        2,464 
 Tax expense                                                        9,076        4,867 
 Finance income                                                     (770)        (577) 
 Finance expense                                                      196           79 
 Increase in inventories                                         (27,084)      (5,054) 
 Increase in trade and other receivables                         (16,397)     (17,569) 
 Increase in trade and other payables                              38,630       45,216 
----------------------------------------------------  -------------------  ----------- 
 Operating cash flow                                               55,888       55,733 
 Capital expenditure and intangible 
  asset purchases                                                 (6,449)     (31,185) 
 Acquisition of new brands (intangible                           (19,370)            - 
  assets) 
 Free cash flow                                                    30,069       24,548 
 
 Proceeds from the issue of ordinary 
  shares                                                              771        2,087 
 Purchase of own shares by EBT                                    (4,809)            - 
 Finance income received                                              740          495 
 Finance expense paid                                                (70)         (79) 
 Dividend paid to non-controlling interests                       (3,400)            - 
 Lease payments                                                   (2,798)            - 
 Tax paid                                                         (3,792)      (4,546) 
 Repayment of borrowings                                          (1,191)      (1,191) 
----------------------------------------------------  -------------------  ----------- 
 Net cash flow                                                     15,520       21,314 
 
 Cash and cash equivalents at beginning 
  of period                                                       197,872      142,575 
----------------------------------------------------  -------------------  ----------- 
 Cash and cash equivalents at end of 
  period                                                          213,392      163,889 
====================================================  ===================  =========== 
 
 
 

Outlook

We continue to maintain a highly positive outlook for online fashion globally. The group's multi-brand approach appeals to a widening consumer audience. The demand for affordable online fashion continues unabated and provides the opportunity for continued growth globally. Growth in the UK, our largest market, remains strong, whilst international growth continues at a higher rate.

Our focus is to maintain an outstanding customer proposition, with the latest fashion at great prices, combined with excellent customer service. To this end, we have a plan of continuous investment in systems, infrastructure and technology to ensure we offer an optimal online shopping experience. International expansion will continue as we add more country-specific websites, refine our customer proposition and raise brand awareness through marketing and social media. Our scalable, multi-brand platform provides the basis for expansion of the group through strategic acquisitions. We are also committed to continuing to drive improvements across our environmental responsibilities and are constantly exploring ways to accelerate our sustainability journey.

Group revenue growth for the year to 29 February 2020 is expected to be 33% to 38%, with adjusted EBITDA margin for the year to remain at around 10%, reflecting anticipated investments across the financial year into the three brands acquired by the group in the first half year. We reiterate our medium term guidance to deliver revenue growth of at least 25% per annum and adjusted EBITDA margin of around 10%.

 
 John Lyttle       Neil Catto 
 
 Chief Executive   Chief Financial Officer 
 

24 September 2019

Unaudited consolidated statement of comprehensive income

for the period ended 31 August 2019

 
                                               Note  6 months to     6 months  Year to 28 
                                                       31 August           to    February 
                                                            2019    31 August        2019 
                                                                         2018 
                                                     (unaudited)  (unaudited)   (audited) 
                                                          GBP000       GBP000      GBP000 
---------------------------------------------  ----  -----------  -----------  ---------- 
Revenue                                         3        564,866      395,309     856,920 
Cost of sales                                          (258,335)    (176,732)   (387,926) 
---------------------------------------------  ----  -----------  -----------  ---------- 
Gross profit                                             306,531      218,577     468,994 
 
Distribution costs                                     (129,979)     (97,772)   (207,083) 
---------------------------------------------  ----  -----------  -----------  ---------- 
Exceptional distribution costs                                 -      (5,932)     (6,162) 
Other distribution costs                               (129,979)     (91,840)   (200,921) 
---------------------------------------------  ----  -----------  -----------  ---------- 
 
Administrative expenses                                (132,087)     (96,726)   (203,470) 
---------------------------------------------  ----  -----------  -----------  ---------- 
Exceptional administrative expenses                            -        (504)       (505) 
Amortisation of acquired intangibles                     (2,312)      (2,224)     (4,449) 
Other administrative expenses                          (129,775)     (93,998)   (198,516) 
---------------------------------------------  ----  -----------  -----------  ---------- 
 
Other income                                    4            112          120         239 
---------------------------------------------  ----  -----------  -----------  ---------- 
Operating profit                                          44,577       24,199      58,680 
 
Finance income                                               770          577       1,320 
Finance expense                                            (196)         (79)       (144) 
---------------------------------------------  ----  -----------  -----------  ---------- 
Profit before tax                               5         45,151       24,697      59,856 
 
Taxation                                                 (9,076)      (4,867)    (12,397) 
 
Profit for the period                                     36,075       19,830      47,459 
=============================================  ====  ===========  ===========  ========== 
 
Profit for the period attributable 
 to: 
Owners of the parent company                              29,551       16,309      37,772 
Non-controlling interests                                  6,524        3,521       9,687 
---------------------------------------------  ----  -----------  -----------  ---------- 
                                                          36,075       19,830      47,459 
=============================================  ====  ===========  ===========  ========== 
 
  Total other comprehensive income/(expense) 
  for the year, net of income tax 
Loss/(gain) reclassified to profit 
 and loss during the year                                  1,311      (1,518)     (2,337) 
Fair value (loss)/gain on cash flow 
 hedges during the year (1)                             (35,982)      (7,703)       2,229 
Total comprehensive income for the 
 period                                                    1,404       10,609      47,351 
=============================================  ====  ===========  ===========  ========== 
 
Total comprehensive income attributable 
 to: 
Equity attributable to owners of the 
 parent company                                          (5,120)        7,088      37,664 
Non-controlling interests                                  6,524        3,521       9,687 
---------------------------------------------  ----  -----------  -----------  ---------- 
                                                           1,404       10,609      47,351 
=============================================  ====  ===========  ===========  ========== 
 
Earnings per share                              6 
Basic                                                      2.55p        1.42p       3.27p 
Diluted                                                    2.48p        1.39p       3.22p 
---------------------------------------------  ----  -----------  -----------  ---------- 
 
 

1. Net fair value gains/losses on cash flow hedges will be reclassified to profit or loss during the two years to 31 August 2021.

Unaudited consolidated statement of financial position

at 31 August 2019

 
                                        Note       6 months       6 months       Year to 
                                               to 31 August   to 31 August   28 February 
                                                       2019           2018          2019 
                                                (unaudited)    (unaudited)     (audited) 
                                                     GBP000         GBP000        GBP000 
--------------------------------------  ----  -------------  -------------  ------------ 
Assets 
Non-current assets 
Intangible assets                                    43,842         29,074        27,165 
Property, plant and equipment                       108,460         98,505       108,498 
Right-of-use assets                                  15,691              -             - 
Financial assets                                        298            585         3,756 
Deferred tax                             7            4,080          4,153         4,034 
--------------------------------------  ----  -------------  -------------  ------------ 
Total non-current assets                            172,371        132,317       143,453 
Current assets 
Inventories                                          93,890         53,302        66,806 
Trade and other receivables              8           38,767         35,149        22,576 
Financial assets                                        838          1,871         5,883 
Current tax receivable                                    -              -         3,186 
Cash and cash equivalents                           213,392        163,889       197,872 
Total current assets                                346,887        254,211       296,323 
 
Total assets                                        519,258        386,528       439,776 
 
Liabilities 
Current liabilities 
Trade and other payables                 9        (191,403)      (142,048)     (154,351) 
Interest bearing loans and borrowings               (2,382)        (2,382)       (2,382) 
Lease liabilities                                   (5,225)              -             - 
Financial liabilities                              (16,023)        (1,605)       (1,421) 
Current tax liability                               (6,844)        (4,707)       (3,939) 
Total current liabilities                         (221,877)      (150,742)     (162,093) 
 
Non-current liabilities 
Interest bearing loans and borrowings               (3,573)        (5,955)       (4,764) 
Lease liabilities                                  (12,484)              -             - 
Financial liabilities                              (11,981)        (2,161)         (415) 
Deferred tax                             7          (2,047)        (2,001)       (2,102) 
 
Total liabilities                                 (251,962)      (160,859)     (169,374) 
 
Net assets                                          267,296        225,669       270,402 
======================================  ====  =============  =============  ============ 
 
Equity 
Share capital                            10          11,656         11,602        11,631 
Share premium                                       606,579        604,555       606,086 
Capital redemption reserve                              100            100           100 
Hedging reserve                                    (26,868)        (1,310)         7,803 
EBT reserve                                         (6,980)          (347)       (2,174) 
Translation reserve                                    (79)              6             - 
Reconstruction reserve                            (515,282)      (515,282)     (515,282) 
Non-controlling interests                            22,772         12,551        19,064 
Retained earnings                                   175,398        113,794       143,174 
--------------------------------------  ----  -------------  -------------  ------------ 
Total equity                                        267,296        225,669       270,402 
======================================  ====  =============  =============  ============ 
 

Unaudited consolidated statement of changes in equity

 
                      Share    Share     Capital   Hedging      EBT  Transla-tion  Recon-struction  Non-controlling  Retained     Total 
                    capital  premium  redemption   reserve  reserve       reserve          reserve         interest  earnings    equity 
                                         reserve 
                     GBP000   GBP000      GBP000    GBP000   GBP000        GBP000           GBP000           GBP000    GBP000    GBP000 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
Balance at 28 
 February 2019       11,631  606,086         100     7,803  (2,174)             -        (515,282)           19,064   143,174   270,402 
Impact of adoption 
 of IFRS 16               -        -           -         -        -             -                -             (31)     (501)     (532) 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
Restated balance 
 at 28 February 
 2019                11,631  606,086         100     7,803  (2,174)             -        (515,282)           19,033   142,673   269,870 
 
Profit for the 
 period                   -        -           -         -        -             -                -            6,524    29,551    36,075 
Other 
comprehensive 
income/(expense): 
Loss reclassified 
 to profit and 
 loss in revenue          -        -           -     1,311        -             -                -                -         -     1,311 
Fair value loss on 
 cash flow hedges 
 during the year          -        -           -  (35,982)        -             -                -                -         -  (35,982) 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
Total 
 comprehensive 
 income for the 
 period                   -        -           -  (26,868)        -             -                -           25,557   172,224   271,274 
Issue of shares          25      493           -         -  (4,806)             -                -              250         -   (4,038) 
Share-based 
 payments credit          -        -           -         -        -             -                -              365     3,990     4,355 
Excess deferred 
 tax on 
 share-based 
 payments                 -        -           -         -        -             -                -                -     (816)     (816) 
Translation of 
 foreign 
 operations               -        -           -         -        -          (79)                -                -         -      (79) 
Dividend paid to 
 non-controlling 
 interests                -        -           -         -        -             -                -          (3,400)         -   (3,400) 
Balance at 31 
 August 2019         11,656  606,579         100  (26,868)  (6,980)          (79)        (515,282)           22,772   175,398   267,296 
==================  =======  =======  ==========  ========  =======  ============  ===============  ===============  ========  ======== 
 
Balance at 28 
 February 2018       11,496  602,578         100     7,911    (351)           168        (515,282)            8,761    97,398   212,779 
 
Profit for the 
 period                   -        -           -         -        -             -                -            3,521    16,309    19,830 
Other 
comprehensive 
income/(expense): 
Gain reclassified 
 to profit and 
 loss                     -        -           -   (1,518)        -             -                -                -         -   (1,518) 
Fair value loss on 
 cash flow hedges 
 during the period        -        -           -   (7,703)        -             -                -                -         -   (7,703) 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
Total 
 comprehensive 
 income for the 
 period                   -        -           -   (9,221)        -             -                -            3,521    16,309    10,609 
Issue of shares         106    1,981           -         -        -             -                -                -         -     2,087 
Issue of shares by 
 EBT                      -      (4)           -         -        4             -                -                -         -         - 
Share-based 
 payments credit          -        -           -         -        -             -                -              269     2,195     2,464 
Excess deferred 
 tax on 
 share-based 
 payments                 -        -           -         -        -             -                -                -   (2,108)   (2,108) 
Translation of 
 foreign 
 operations               -        -           -         -        -         (162)                -                -         -     (162) 
Balance at 31 
 August 2018         11,602  604,555         100   (1,310)    (347)             6        (515,282)           12,551   113,794   225,669 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
 
Balance at 28 
 February 2018       11,496  602,578         100     7,911    (351)           168        (515,282)            8,761    97,398   212,779 
 
Profit for the 
 year                     -        -           -         -        -             -                -            9,687    37,772    47,459 
Other 
comprehensive 
income/(expense): 
Gain reclassified 
 to profit and 
 loss in revenue          -        -           -   (2,337)        -             -                -                -         -   (2,337) 
Fair value gain on 
 cash flow hedges 
 during the year          -        -           -     2,229        -             -                -                -         -     2,229 
------------------  -------  -------  ----------  --------  -------  ------------  ---------------  ---------------  --------  -------- 
Total 
 comprehensive 
 income for the 
 year                     -        -           -     (108)        -             -                -            9,687    37,772    47,351 
Issue of shares         135    3,508           -         -  (1,823)             -                -                -         -     1,820 
Share-based 
 payments credit          -        -           -         -        -             -                -              616     4,662     5,278 
Excess deferred 
 tax on 
 share-based 
 payments                 -        -           -         -        -             -                -                -     3,342     3,342 
Translation of 
 foreign 
 operations               -        -           -         -        -         (168)                -                -         -     (168) 
Balance at 28 
 February 2019       11,631  606,086         100     7,803  (2,174)             -        (515,282)           19,064   143,174   270,402 
==================  =======  =======  ==========  ========  =======  ============  ===============  ===============  ========  ======== 
 

Unaudited consolidated cash flow statement

for the period ended 31 August 2019

 
                                               Note       6 months       6 months       Year to 
                                                      to 31 August   to 31 August   28 February 
                                                              2019           2018          2019 
                                                       (unaudited)    (unaudited)     (audited) 
                                                            GBP000         GBP000        GBP000 
Cash flows from operating activities 
Profit for the period                                       36,075         19,830        47,459 
Adjustments for: 
Share-based payments charge                                  4,355          2,464         5,278 
Depreciation charges and amortisation                       11,807          6,477        13,921 
Loss on sale of fixed assets                                     -              -            24 
Finance income                                               (770)          (577)       (1,320) 
Finance expense                                                196             79           144 
Tax expense                                                  9,076          4,867        12,397 
---------------------------------------------  ----  -------------  -------------  ------------ 
                                                            60,739         33,140        77,903 
 
Increase in inventories                                   (27,084)        (5,054)      (18,558) 
Increase in trade and other receivables         8         (16,397)       (17,569)       (4,935) 
Increase in trade and other payables            9           38,630         45,216        57,513 
Cash generated from operations                              55,888         55,733       111,923 
 
Tax paid                                                   (3,792)        (4,546)      (10,361) 
Net cash generated from operating activities                52,096         51,187       101,562 
 
Cash flows from investing activities 
Acquisition of intangible assets                          (20,579)        (1,584)       (3,237) 
Acquisition of property, plant and equipment               (5,240)       (29,601)      (43,630) 
Proceeds from the sale of fixed assets                           -              -            59 
Finance income received                                        740            495         1,249 
Net cash used in investing activities                     (25,079)       (30,690)      (45,559) 
 
Cash flows from financing activities 
Proceeds from the issue of ordinary 
 shares                                                        771          2,087         3,653 
Share issue costs written off to share                           -              -             - 
 premium 
Purchase of own shares by EBT                              (4,809)              -       (1,833) 
Finance expense paid                                          (70)           (79)         (144) 
Dividend paid to non-controlling interests                 (3,400)              -             - 
Lease payments                                             (2,798)              -             - 
Repayment of borrowings                                    (1,191)        (1,191)       (2,382) 
Net cash generated from financing activities              (11,497)            817         (706) 
 
Increase in cash and cash equivalents                       15,520         21,314        55,297 
=============================================  ====  =============  =============  ============ 
 
Cash and cash equivalents at beginning 
 of period                                                 197,872        142,575       142,575 
---------------------------------------------  ----  -------------  -------------  ------------ 
Cash and cash equivalents at end of 
 period                                                    213,392        163,889       197,872 
=============================================  ====  =============  =============  ============ 
 

Notes

(forming part of the interim report and accounts)

   1              Accounting policies 

General information

boohoo group plc is a public limited company incorporated and domiciled in Jersey and listed on the Alternative Investment Market (AIM) of the London Stock Exchange. Its registered office address is: 12 Castle Street, St Helier, Jersey, JE2 3RT. The company was incorporated on 19 November 2013.

Basis of preparation

The interim condensed financial statements for the six months to 31 August 2019 have been prepared in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. The interim financial statements should be read in conjunction with the group's Annual Report and Accounts for the year ended 28 February 2019, prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("Adopted IFRSs"), IFRIC Interpretations and the Companies (Jersey) Law 1991 applicable to companies reporting under IFRS.

The interim condensed financial statements contained in this report are not audited and do not constitute statutory accounts within the meaning of Companies (Jersey) Law 1991. The Annual Report and Accounts for the year ended 28 February 2019 has been filed with the Jersey Companies Registry. The auditors' reports on those accounts were unqualified and did not include reference to any matters on which the auditors were required to report by exception under Companies (Jersey) Law 1991.

The group's business activities together with the factors that are likely to affect its future developments, performance and position are set out in the Business and Financial Reviews. The Financial Review describes the group's financial position, cash flows and bank facilities.

The interim financial statements are unaudited and were approved by the board of directors on 24 September 2019.

Going concern

The directors have reviewed the group's forecast and projections, including assumptions concerning capital expenditure and expenditure commitments and their impact on cash flows, and have a reasonable expectation that the group has adequate financial resources to continue its operations for the foreseeable future. For this reason, they have continued to adopt the going concern basis in preparing the financial statements.

In preparing the interim announcement, the directors have also made reasonable and prudent judgements and estimates and prepared the interim announcement on the going concern basis. The interim announcement and management report contained herein give a true and fair view of the assets, liabilities, financial position and profit and loss of the group.

Accounting policies

The interim financial statements have been prepared in accordance with the accounting policies set out in the group's Annual Report and Accounts for the year ended 28 February 2019, except as noted below in the change of accounting policy.

Change of accounting policy

The group has adopted IFRS 16, "Leases", effective for accounting periods commencing 1 January 2019 and applied the modified retrospective approach and the exemption for low value or short leases. Comparatives have not been restated and the cumulative impact of adoption has been recognised as a decrease in net assets and a corresponding decrease in retained earnings as at 1 March 2019. The right-of-use asset has been measured at the carrying amount as if the standard had been applied since the commencement of the lease, discounted using the incremental borrowing rate of 1.8% at transition. The present value of the lease liabilities is discounted at the group's incremental borrowing cost.

The lease liability brought on to the balance sheet at transition is GBP18.5 million and the right of use asset GBP16.1 million. The overall decrease in retained earnings is GBP0.5 million. The impact on the income statement is not expected to affect profit before tax for the year to 29 February 2020, with adjusted EBITDA increasing by GBP4.9 million, depreciation increasing by GBP4.7 million and finance costs increasing by GBP0.2 million. The effect in the first half year will result in adjusted EBITDA increasing by GBP2.4 million, depreciation increasing by GBP2.4 million and finance costs increasing by GBP0.1 million. Within the cash flow statement, there are changes in the classification of cash flows, with GBP2.6 million of lease payments classified as financing cash flows and GBP0.1 million as interest payments.

 
The impact on the opening balance sheet is as follows:     1 March 2019 
                                                                 GBP000 
-------------------------------------------------------    ------------ 
Non-current assets 
Right-of-use assets - property, plant & equipment                16,116 
Deferred income tax asset                                           109 
Current liabilities 
Financial liabilities - lease liabilities                       (4,933) 
Accruals                                                          1,791 
Non-current liabilities 
Financial liabilities - lease liabilities                      (13,615) 
 
Total decrease in retained earnings at 1 March 2019               (532) 
---------------------------------------------------------  ------------ 
 
 
Reconciliation of the lease liabilities at 1 March 2019 to the operating lease commitments      1 March 2019 
 at 28 February 2019: 
                                                                                                      GBP000 
--------------------------------------------------------------------------------------------    ------------ 
Operating lease commitments disclosed at 28 February 2019                                              6,259 
Third-party warehouse services contract - revised treatment as operating lease                        12,800 
----------------------------------------------------------------------------------------------  ------------ 
Restated operating lease commitments at 28 February 2019                                              19,059 
Discounted using the lessee's incremental borrowing rate at the date of initial application            (511) 
Additional lease liability recognised as at 1 March 2019                                              18,548 
----------------------------------------------------------------------------------------------  ------------ 
Analysed as: 
Current lease liabilities                                                                              4,933 
Non-current lease liabilities                                                                         13,615 
----------------------------------------------------------------------------------------------  ------------ 
 

From 1 March 2019 the group's lease policy is summarised as follows:

A right-of-use asset and lease liability is recognised at the lease commencement date. The right-of-use asset is initially recognised at cost, comprising the initial amount of the lease liability plus any initial direct costs incurred, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the asset or the end of the lease term. The lease liability is initially measured as the present value of the lease payments at the commencement date, discounted using the incremental borrowing rate. The lease liability is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or a rate or a change in the group's assessment of whether it will exercise an extension or termination option. When the lease liability is re-measured, a corresponding adjustment is made to the right-of-use asset.

   2              Principal risks and uncertainties 

The board considers the principal risks and uncertainties which could impact the group over the remaining six months of the financial year to 29 February 2020 to be unchanged from those set out in the group's Annual Report and Accounts for the year ended 28 February 2019, which in summary are: competition risk; fashion and consumer demands risk; systems and technical risk; supply chain risk; loss of key facilities; people risk; customer dissatisfaction; and financial risk. These are set out in detail on pages 20 to 22 of the group's Annual Report and Accounts for the year ended 28 February 2019, a copy of which is available on the group's website, www.boohooplc.com. In addition, the group has identified, as far as possible, the potential impacts of the UK's leaving the EU without a deal.

   3              Segmental analysis 
 
 
                                6 months to 31 August 2019 
                                 boohoo  PrettyLittleThing  Nasty Gal    Other      Total 
                                 GBP000             GBP000     GBP000   GBP000     GBP000 
 --------------------------------------  -----------------  ---------  -------  --------- 
Revenue                         281,033            237,609     43,850    2,374    564,866 
 
Cost of sales                 (130,287)          (106,228)   (20,086)  (1,734)  (258,335) 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Gross profit                    150,746            131,381     23,764      640    306,531 
 
Distribution costs             (60,741)           (59,039)    (9,731)    (468)  (129,979) 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Segment result                   90,005             72,342     14,033      172    176,552 
 
Administrative expenses 
 - other                              -                  -          -        -  (129,775) 
Amortisation of acquired 
 intangibles                          -                  -          -        -    (2,312) 
Other income                          -                  -          -        -        112 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Operating profit                      -                  -          -        -     44,577 
 
Finance income                        -                  -          -        -        770 
Finance expense                       -                  -          -        -      (196) 
Profit before tax                     -                  -          -        -     45,151 
============================  =========  =================  =========  =======  ========= 
 
                                6 months to 31 August 2018 
                                 boohoo  PrettyLittleThing  Nasty Gal    Other      Total 
                                 GBP000             GBP000     GBP000   GBP000     GBP000 
 --------------------------------------  -----------------  ---------  -------  --------- 
Revenue                         209,006            168,612     17,691        -    395,309 
 
Cost of sales                  (97,468)           (72,013)    (7,251)        -  (176,732) 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Gross profit                    111,538             96,599     10,440        -    218,577 
 
Distribution costs             (46,671)           (40,602)    (4,567)        -   (91,840) 
Exceptional distribution 
 costs                                -            (5,932)          -             (5,932) 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Segment result                   64,867             50,065      5,873        -    120,805 
 
Administrative expenses 
 - other                              -                  -          -        -   (93,998) 
Exceptional administrative 
expenses                              -                  -          -        -      (504) 
Amortisation of acquired 
 intangibles                          -                  -          -        -    (2,224) 
Other income                          -                  -          -        -        120 
----------------------------  ---------  -----------------  ---------  -------  --------- 
Operating profit                      -                  -          -        -     24,199 
 
Finance income                        -                  -          -        -        577 
Finance expense                       -                  -          -        -       (79) 
Profit before tax                     -                  -          -        -     24,697 
============================  =========  =================  =========  =======  ========= 
 
 
 
                                           Year to 28 February 2019 
                                 boohoo  PrettyLittleThing  Nasty Gal      Total 
                                 GBP000             GBP000     GBP000     GBP000 
---------------------------   ---------  -----------------  ---------  --------- 
Revenue                         434,565            374,445     47,910    856,920 
 
Cost of sales                 (204,474)          (162,687)   (20,765)  (387,926) 
----------------------------  ---------  -----------------  ---------  --------- 
Gross profit                    230,091            211,758     27,145    468,994 
 
Distribution costs             (98,901)           (90,000)   (12,020)  (200,921) 
Exceptional distribution 
 costs                                -            (6,162)          -    (6,162) 
Segment result                  131,190            115,596     15,125    261,911 
 
Administrative expenses 
 - other                              -                  -          -  (198,516) 
Exceptional administrative 
 expenses                             -                  -          -      (505) 
Amortisation of acquired 
 intangibles                          -                  -          -    (4,449) 
Other income                          -                  -          -        239 
----------------------------  ---------  -----------------  ---------  --------- 
Operating profit                      -                  -          -     58,680 
 
Finance income                        -                  -          -      1,320 
Finance expense                       -                  -          -      (144) 
----------------------------  ---------  -----------------  ---------  --------- 
Profit before tax                     -                  -          -     59,856 
============================  =========  =================  =========  ========= 
 

Revenue by geographic region

 
                  6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                           28 February 2019 
                                      GBP000                      GBP000             GBP000 
---------------   --------------------------  --------------------------  ----------------- 
UK                                   314,954                     234,057            488,199 
Rest of Europe                        87,486                      51,250            115,124 
USA                                  110,729                      68,171            166,262 
Rest of world                         51,697                      41,831             87,335 
----------------  --------------------------  --------------------------  ----------------- 
                                     564,866                     395,309            856,920 
 ===============  ==========================  ==========================  ================= 
 
   4             Other income 
 
                 6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                          28 February 2019 
                                     GBP000                      GBP000             GBP000 
--------------   --------------------------  --------------------------  ----------------- 
Rental income                           112                         120                239 
===============  ==========================  ==========================  ================= 
 
   5              Profit before tax 
 
Profit before tax is stated after charging:  6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                                                      28 February 2019 
                                                                 GBP000                      GBP000             GBP000 
-------------------------------------------  --------------------------  --------------------------  ----------------- 
Operating lease rentals for buildings                                 -                         988              2,235 
Equity-settled share-based payment charges                        4,355                       2,464              5,278 
Acquisition and restructuring costs                               1,261                           -                  - 
Exceptional items - warehouse relocation                              -                           -              6,667 
Depreciation of property, plant and 
 equipment                                                        5,513                       3,090              6,972 
Depreciation of right-of-use assets                               2,393                           -                  - 
Amortisation of intangible assets                                 1,589                       1,163              2,500 
Amortisation of acquired intangible assets                        2,312                       2,224              4,449 
-------------------------------------------  --------------------------  --------------------------  ----------------- 
 
   6              Earnings per share 

Basic earnings per share is calculated by dividing profit after tax attributable to members of the holding company by the weighted average number of shares in issue during the year. Own shares held by the Employee Benefit Trust are eliminated from the weighted average number of shares. Diluted earnings per share is calculated by dividing the profit after tax attributable to members of the holding company by the weighted average number of shares in issue during the year, adjusted for potentially dilutive share options.

 
                                                   6 months        6 months         Year to 
                                               to 31 August    to 31 August     28 February 
                                                       2019            2018            2019 
------------------------------------------   --------------  --------------  -------------- 
 Weighted average shares in issue 
  for basic earnings per share                1,161,077,443   1,149,311,146   1,154,130,568 
 Dilutive share options                          32,065,494      24,897,209      20,304,294 
-------------------------------------------  --------------  --------------  -------------- 
 Weighted average shares in issue 
  for diluted earnings per share              1,193,142,937   1,174,208,355   1,174,434,862 
===========================================  ==============  ==============  ============== 
 
 Earnings attributable to owners 
  of the parent company (GBP000)                     29,551          16,309          37,772 
 Basic earnings per share                             2.55p           1.42p           3.27p 
 Diluted earnings per share                           2.48p           1.39p           3.22p 
-------------------------------------------  --------------  --------------  -------------- 
 
 Earnings attributable to owners 
  of the parent company (GBP000)                     29,551          16,309          37,772 
 Adjusting items: 
 Amortisation of intangible assets 
  arising on acquisitions                             2,312           2,224           4,449 
 Share-based payment charges                          4,355           2,464           5,278 
 Exceptional costs - warehouse relocation                 -           6,436           6,667 
 Adjustment for tax                                 (1,227)         (2,082)         (3,050) 
 Adjustment for non-controlling interests             (296)         (1,990)         (2,335) 
-------------------------------------------  --------------  --------------  -------------- 
 Adjusted earnings                                   34,695          23,361          48,781 
-------------------------------------------  --------------  --------------  -------------- 
 Adjusted basic earnings per share                    2.99p           2.03p           4.23p 
 Adjusted diluted earnings per share                  2.91p           1.99p           4.15p 
-------------------------------------------  --------------  --------------  -------------- 
 
   7              Deferred tax 

Assets

 
                                        IFRS 16 modified    Depreciation in excess of   Share-based payments     Total 
                                           retrospective           capital allowances 
                                                  GBP000                       GBP000                 GBP000    GBP000 
---------------------------  ---------------------------  ---------------------------  ---------------------  -------- 
 At 28 February 2018                                   -                          160                  6,319     6,479 
 Recognised in statement of 
  comprehensive income                                 -                        (160)                   (58)     (218) 
 Credit in equity                                      -                            -                (2,108)   (2,108) 
---------------------------  ---------------------------  ---------------------------  ---------------------  -------- 
 At 31 August 2018                                     -                            -                  4,153     4,153 
---------------------------  ---------------------------  ---------------------------  ---------------------  -------- 
 
 At 28 February 2019                                   -                           87                  3,947     4,034 
 Recognised in statement of 
  comprehensive income                              (24)                          197                    580       753 
 Debit in equity                                     109                            -                  (816)     (707) 
---------------------------  ---------------------------  ---------------------------  ---------------------  -------- 
 At 31 August 2019                                    85                          284                  3,711     4,080 
===========================  ===========================  ===========================  =====================  ======== 
 

Liabilities

 
                                                     Capital allowances in excess of   Business combinations     Total 
                                                                        depreciation 
                                                                              GBP000                  GBP000    GBP000 
-----------------------------------------  -----------------------------------------  ----------------------  -------- 
 At 28 February 2018                                                               -                 (2,101)   (2,101) 
 Recognised in statement of comprehensive 
  income                                                                       (147)                     247       100 
                                           -----------------------------------------  ----------------------  -------- 
 At 31 August 2018                                                             (147)                 (1,854)   (2,001) 
-----------------------------------------  -----------------------------------------  ----------------------  -------- 
 
 At 28 February 2019                                                           (495)                 (1,607)   (2,102) 
 Recognised in statement of comprehensive 
  income                                                                       (192)                     247        55 
 At 31 August 2019                                                             (687)                 (1,360)   (2,047) 
=========================================  =========================================  ======================  ======== 
 

Recognition of the deferred tax assets is based upon the expected generation of future taxable profits. The deferred tax asset is expected to be recovered in more than one year's time and the deferred tax liability will reverse in more than one year's time as the intangible assets are amortised.

   8              Trade and other receivables 
 
                                       6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                                                28 February 2019 
                                                           GBP000                      GBP000             GBP000 
-------------------------------------  --------------------------  --------------------------  ----------------- 
Trade receivables                                          28,012                      23,405             14,201 
Prepayments                                                 9,560                      10,482              5,126 
Accrued income                                                440                       1,262                386 
Taxes and social security receivable                          755                           -              2,863 
-------------------------------------  --------------------------  --------------------------  ----------------- 
                                                           38,767                      35,149             22,576 
=====================================  ==========================  ==========================  ================= 
 
   9              Trade and other payables 
 
                                             6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                                                      28 February 2019 
                                                                 GBP000                      GBP000             GBP000 
-------------------------------------------  --------------------------  --------------------------  ----------------- 
Trade payables                                                   28,708                      36,945             33,930 
Amounts owed to related party undertakings                            -                           -                  - 
Other creditors                                                   2,301                       1,242              1,730 
Accruals                                                        104,109                      77,587             81,930 
Provision for liabilities                                        32,046                      13,628             18,912 
Deferred income                                                  12,705                       6,927              8,453 
Taxes and social security payable                                11,534                       5,719              9,396 
-------------------------------------------  --------------------------  --------------------------  ----------------- 
                                                                191,403                     142,048            154,351 
===========================================  ==========================  ==========================  ================= 
 
   10           Share capital 
 
                     6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                              28 February 2019 
                                         GBP000                      GBP000             GBP000 
-------------------  --------------------------  --------------------------  ----------------- 
At start of period                       11,631                      11,496             11,496 
Share issues                                 25                         106                135 
-------------------  --------------------------  --------------------------  ----------------- 
At end of period                         11,656                      11,602             11,631 
===================  ==========================  ==========================  ================= 
 

Share capital at period end: 1,165,576,196 authorised and fully paid ordinary shares of 1p each (2019: 1,160,160,400). No dividends have been paid or are payable by the parent company for the period ended 31 August 2019 (2019: GBPnil).

   11           Capital commitments 

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

 
                                6 months to 31 August 2019  6 months to 31 August 2018            Year to 
                                                                                         28 February 2019 
                                                    GBP000                      GBP000             GBP000 
------------------------------  --------------------------  --------------------------  ----------------- 
Property, plant and equipment                        9,000                       6,870                  - 
------------------------------  --------------------------  --------------------------  ----------------- 
 
   12           Contingent liabilities 

From time to time, the group can be subject to various legal proceedings and claims that arise in the ordinary course of business which may include cases relating to the group's brands and trading names. All such cases brought against the group are robustly defended and a liability is recorded only when it is probable that the case will result in a future economic outflow and that the outflow can be reliably measured.

As at 31 August 2019, there are no pending claims or proceedings against the group, which in the opinion of the directors are expected to have a material adverse effect on its liquidity or operations.

Appendices

Growth rates on prior period revenue by region

Revenue by period for the year to 29 February 2020 (FY20)

 
 GBP'000              3m to 31 May                    3m to 31 August                  6m to 31 August 
           ---------------------------------  ------------------------------- 
             FY20      FY19     yoy    yoy      FY20      FY19     yoy   yoy     FY20      FY19     yoy   yoy 
                                 %     % CER                        %      %                         %      % 
                                                                          CER                              CER 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 Total      254,321   183,561   39%    39%     310,545   211,748   47%   47%    564,866   395,309   43%   43% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 
 Revenue by region 
--------------------------------------------  --------  --------  ----  -----  --------  --------        ----- 
  UK        140,569   110,738   27%    27%     174,385   123,319   41%   41%    314,954   234,057   35%   35% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------        ----- 
  ROE        38,252    22,257   72%    71%      49,234    28,993   70%   68%     87,486    51,250   71%   69% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  USA        51,336    31,389   64%    66%      59,393    36,782   61%   64%    110,729    68,171   62%   65% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  ROW        24,164    19,177   26%    28%      27,533    22,654   22%   23%     51,697    41,831   24%   25% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 

Revenue by period for the year to 28 February 2019 (FY19)

 
 GBP'000           4m to 31 December                 2m to 28 February                12m to 28 February 
           ---------------------------------  ------------------------------- 
             FY19      FY18     yoy    yoy      FY19      FY18    yoy    yoy     FY19      FY18     yoy   yoy 
                                 %     % CER                        %      %                         %      % 
                                                                          CER                              CER 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 Total      328,231   228,215   44%    43%     133,375   88,710   50%    50%    856,920   579,800   48%   47% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 
 Revenue by region 
--------------------------------------------  --------  -------  -----  -----  --------                  ----- 
  UK        179,952   135,642   33%    33%      74,185   56,592   31%    31%    488,199   355,614   37%   37% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------                  ----- 
  ROE        44,431    28,232   57%    54%      19,443   10,258   90%    86%    115,124    66,281   74%   67% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
  USA        70,427    39,618   78%    80%      27,664   13,475   105%   101%   166,262    92,690   79%   81% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
  ROW        33,421    24,723   35%    32%      12,083    8,385   44%    44%     87,335    65,215   34%   30% 
           --------  --------  ----  -------  --------  -------  -----  -----  --------  --------  ----  ----- 
 
 
 GBP'000              3m to 31 May                    3m to 31 August                  6m to 31 August 
           ---------------------------------  ------------------------------- 
             FY19      FY18     yoy    yoy      FY19      FY18     yoy   yoy     FY19      FY18     yoy   yoy 
                                 %     % CER                        %      %                         %      % 
                                                                          CER                              CER 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 Total      183,561   120,077   53%    52%     211,748   142,798   48%   47%    395,309   262,875   50%   49% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 
 Revenue by region 
--------------------------------------------  --------  --------  ----  -----  --------                  ----- 
  UK        110,738    74,532   49%    49%     123,319    88,849   39%   39%    234,057   163,381   43%   43% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------                  ----- 
  ROE        22,257    12,220   82%    71%      28,993    15,571   86%   73%     51,250    27,791   84%   72% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  USA        31,389    17,906   75%    78%      36,782    21,690   70%   71%     68,171    39,596   72%   74% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
  ROW        19,177    15,419   24%    22%      22,654    16,688   36%   31%     41,831    32,107   30%   27% 
           --------  --------  ----  -------  --------  --------  ----  -----  --------  --------  ----  ----- 
 

CER in this appendix for the year ended 28 February 2019 is calculated using exchange rates prevailing during the year ending 28 February 2019. Nomenclature: ROE - rest of Europe; ROW - rest of world; yoy - year-on-year; CER - constant exchange rate

Brand KPIs

boohoo

 
                                   6 months   6 months to   Change 
                                         to     31 August 
                                  31 August       2018(5) 
                                       2019 
 Active customers(1)            8.4 million   7.0 million     +20% 
 Number of orders               9.7 million   7.5 million     +29% 
 Order frequency(2)                    2.11          2.07      +2% 
 Conversion rate to sale (3)           3.3%          3.1%   +19bps 
 Average order value(4)            GBP43.41      GBP40.40      +7% 
 Number of items per basket            3.30          3.03      +9% 
-----------------------------  ------------  ------------  ------- 
 

PrettyLittleThing

 
                                    6 months   6 months to   Change 
                                          to     31 August 
                                   31 August       2018(5) 
                                        2019 
 Active customers(1)             5.7 million   4.0 million     +43% 
 Number of orders                9.0 million   6.6 million     +36% 
 Order frequency(2)                     2.97          2.83      +5% 
 Conversion rate to sale (3)            3.6%          3.3%   +26bps 
 Average order value(4)             GBP42.15      GBP40.09      +5% 
 Number of items per basket             2.96          2.81      +5% 
------------------------------  ------------  ------------  ------- 
 

Nasty Gal

 
                                    6 months   6 months to   Change 
                                          to     31 August 
                                   31 August       2018(5) 
                                        2019 
 Active customers(1)             1.5 million   0.7 million    +112% 
 Number of orders                1.3 million   0.5 million    +150% 
 Order frequency(2)                     1.55          1.38     +13% 
 Conversion rate to sale (3)            2.2%          1.9%   +37bps 
 Average order value(4)             GBP50.87      GBP48.77      +4% 
 Number of items per basket             3.44          2.90     +18% 
------------------------------  ------------  ------------  ------- 
 
   1.     Defined as having shopped in the last 12 months 
   2.     Defined as number of orders in last 12 months divided by number of active customers 
   3.     Defined as the percentage of website orders taken to internet sessions 
   4.     Calculated as gross sales including sales tax divided by the number of orders 
   5.     Prior period numbers restated to include marketplace data 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR USRBRKRAKUAR

(END) Dow Jones Newswires

September 25, 2019 02:00 ET (06:00 GMT)

Boohoo (LSE:BOO)
Historical Stock Chart
From Apr 2020 to May 2020 Click Here for more Boohoo Charts.
Boohoo (LSE:BOO)
Historical Stock Chart
From May 2019 to May 2020 Click Here for more Boohoo Charts.