TIDMDC.
RNS Number : 8658C
Dixons Carphone PLC
20 June 2019
Preliminary results for the 12 months to 27th April 2019
FY19 financial results in line with our plan
-- Gained market share in Electricals in all territories
-- Group FY like-for-like revenue(3) up 1%; UK & Ireland
electricals like-for-like revenue(3) up 1%; International
like-for-like revenue(3) up 4%; UK & Ireland mobile
like-for-like revenue(3) down 4%
-- Statutory revenue down 1% to GBP10,433 million
-- Group headline PBT(1) of GBP298 million (2017/18: GBP382 million):
-- Statutory loss before tax of GBP259 million (2017/18: profit
of GBP289 million), including non-headline charges of GBP557
million (2017/18: GBP93 million), primarily non-cash impairments
relating to the changing UK mobile market, as outlined in December
interim results, mainly goodwill(4)
-- Free cash flow(5) of GBP153 million (2017/18: GBP172
million). Operating cash flow of GBP286 million (2017/18: GBP312
million)
-- Net debt(6) of GBP265 million (2017/18: GBP249 million)
-- Final dividend of 4.50p proposed (2017/18: 7.75p), full year
dividend at 6.75p (2017/18: 11.25p)
Alex Baldock, Group Chief Executive, said:
"The past year has seen us keep our promises to investors,
delivering around GBP300 million of headline profit, resilient free
cash flow, and continued growth in sales and market share in UK
& Ireland electricals and International. And we've taken the
first big strides in our transformation.
But we know we have it in us to be a much more valuable
business. That will take time. In December, we set out a clear
strategy to help everyone enjoy amazing technology, and early
progress is promising.
In UK & Ireland electricals, we expect growing sales and
headline profits this year and beyond. We've made significant gains
in Credit and Online - both big profitable growth opportunities for
us. Early steps towards an easier customer experience have seen
satisfaction scores start to rise. And we've laid important
foundations for Services to make our customer relationships
stickier and more valuable.
The same focus on Credit, Online and Services will ensure our
strong International business continues its trajectory of growing
sales and market share, while further improving profitability.
In UK mobile, the market is changing in the way we described in
December, but doing so faster. So, we're moving faster to respond:
we've renegotiated all our legacy network contracts, we're
developing our new customer offer, and are accelerating the
integration of Mobile and Electricals into one business. This means
taking more pain in the coming year, when Mobile will make a
significant loss. But accelerating our transformation provides
certainty that this year is the trough, as during next year the
legacy contractual constraints on our Mobile business lift, and the
integration cost benefits build. We expect Mobile will at least
break even within two years, and beyond that, equipped with a
stronger and unconstrained offer, we will of course aim to do
better. In any case, cash generation from Mobile will be
strong.
Overall, with investment in our transformation underpinning UK
& Ireland electricals and International growth in sales and
headline profits, and accelerating the changes in Mobile, we're
confident to bring forward our long-term ambitions. We still commit
to over GBP1 billion of Group free cash flow over the five year
plan, but also to accelerate our GBP200 million cost reduction
promise by two years, and our promise of at least 3.5% Group EBIT
margins by a year.
I want to thank my tens of thousands of colleagues at Dixons
Carphone for their unrelenting hard work. This business matters,
not just to us, but to the millions of people whose lives we can
improve through the power of amazing technology. So it's with a
sense of responsibility that we commit to transforming Dixons
Carphone into a world class business for colleagues, customers and
shareholders. We believe we will."
5 year transformation plan: earlier forecast delivery of Group
cost savings and margin
-- Group headline EBIT margin improvement to at least 3.5% by
FY23, a year earlier than originally planned
-- Underpinned by GBP200 million of identified gross cost
savings, delivered two years earlier by FY22, with more
thereafter
-- Combination of transformation benefits and Mobile improvement
to drive headline PBT to over GBP300 million by FY22
-- Nordics to benefit from adoption of Group strategy in
Services, Credit and Online, taking margins to at least 3.5%
-- On track for over GBP1 billion of cumulative free cash flow
over the plan, including working capital improvements of over
GBP500 million, mostly from Mobile debtor
FY20 Group financial guidance(7),(9),(10)
-- Sales and profit to grow in Electricals in both UK & Ireland and International
-- UK mobile: significantly loss making this year; improving
materially in following two years by accelerating
transformation
-- Headline PBT expected to be around GBP210 million, with
growth thereafter as transformation benefits feed through
-- Capex of circa GBP275 million, in line with overall
transformation capex guidance; peak year of transformation
investment
-- Exceptional cash costs expected of circa GBP80 million
-- Net debt broadly flat year on year given strong cash flow
from working capital improvements
-- Full year dividend expected to be flat year on year
reflecting confidence in both cash flow and future profit
growth
Headline results
Headline revenue(1) Headline profit
/ (loss)(1)
-------------------- ------ -------- ---------------------------------------------- --------------------
Like-for-
Local like
2018/19 2017/18 Reported currency(2) (3) 2018/19 2017/18
Notes GBPm GBPm % change % change % change GBPm GBPm
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
UK & Ireland
electricals (4) 4,475 4,412 1% 1% 1% 180 231
UK & Ireland
mobile (4) 1,998 2,233 (11)% (11)% (4)% 9 43
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
UK & Ireland 6,473 6,645 (3)% (3)% - 189 274
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Nordics 3,501 3,470 1% 4% 3% 112 106
Greece 459 410 12% 13% 13% 21 20
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
International 3,960 3,880 2% 5% 4% 133 126
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Group 10,433 10,525 (1)% - 1% 322 400
Net finance costs (24) (18)
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Profit before
tax 298 382
Tax (62) (79)
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Profit after
tax 236 303
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Total non-headline
items (556) (137)
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Statutory (loss)
/ profit after
tax (320) 166
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Headline basic
EPS(1) 20.4p 26.2p
-------------------- ------ -------- -------- --------- ------------- ---------- --------- ---------
Revenue summary
Peak 2018/19(8) Post Peak 2018/19(8) H2 2018/19
-------------- ----- ---------------------------------- ---------------------------------- ----------------------------------
Local Like-for- Local Like-for- Local Like-for-
like like like
Reported currency(2) (3) Reported currency(2) (3) Reported currency(2) (3)
Notes % change % change % change % change % change % change % change % change % change
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
UK & Ireland
electricals (4) 2% 2% 2% (1)% (1)% - 1% 1% 1%
UK & Ireland
mobile (4) (12)% (12)% (7)% (16)% (16)% (8)% (16)% (16)% (8)%
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
UK & Ireland (2)% (2)% - (7)% (7)% (3)% (5)% (5)% (2)%
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
Nordics 2% 3% 3% 1% 4% 2% 1% 4% 3%
Greece 18% 18% 19% 8% 9% 10% 13% 14% 14%
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
International 4% 5% 5% 1% 5% 3% 2% 5% 4%
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
Group - - 1% (3)% (2)% (1 )% (2)% (1)% -
-------------- ----- --------- ------------ --------- --------- ------------ --------- --------- ------------ ---------
This release contains inside information
Investor and analyst webcast
There will be a conference call with presentation for investors
and analysts at 9:00 am today. The presentation slides will be
available via webcast (listen only) on our corporate website,
www.dixonscarphone.com
For further information
Group Corporate Affairs
Assad Malic Director +44 (0) 7414 191 044
Amy Shields Head of External Communications +44 (0) 7588 201 442
Tim Danaher, Nick
Beswick Brunswick Group +44 (0) 207 4040 5959
------------------- --------------------------------- ----------------------
About Dixons Carphone:
Dixons Carphone plc is a leading multinational consumer electrical
and mobile retailer and services company, employing over 42,000 people
in nine countries. We Help Everyone Enjoy Amazing Technology, however
they choose to shop with us.
We are the market leader in the UK & Ireland, throughout the Nordics
and in Greece. With a full range of services and support, we make it
easy for our customers to discover, choose and enjoy the right technology
for them, throughout the life of the product. Our core multichannel
operations are supported by an impressive distribution network and
sourcing office in Hong Kong and a state-of-the-art repair facility
in Newark, UK.
Our brands include Currys PC World and Carphone Warehouse in the UK
& Ireland and iD Mobile in the UK; Elkjøp, Elgiganten and Gigantti
in the Nordics; and Kotsovolos in Greece. Our Dixons Travel brand has
a presence across several UK airports as well as in Dublin and Oslo,
and our services are provided through Team Knowhow in the UK, Ireland
and the Nordics.
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Certain statements made in this announcement are
forward-looking. Such statements are based on current expectations
and are subject to a number of risks and uncertainties that could
cause actual results to differ materially from any expected future
events or results referred to in these forward-looking statements.
Unless otherwise required by applicable laws, regulations or
accounting standards, we do not undertake any obligation to update
or revise any forward-looking statements, whether as a result of
new information, future developments or otherwise. Information
contained on the Dixons Carphone plc website or the Twitter feed
does not form part of this announcement and should not be relied on
as such.
Notes.
(1) Headline results exclude amortisation of acquisition
intangibles, significant reorganisation costs, significant
impairments, businesses to be exited, property rationalisation
costs, acquisition-related costs, net interest on defined benefit
pension schemes and discontinued operations. Such excluded items
are described as 'non-headline'. For further details see note 3 of
the Financial Information.
(2) Change in local currency revenue reflects total revenue on a
constant currency and period basis as defined in the glossary on
page 34.
(3) Like-for-like revenue is defined in the glossary on page 34
(4) During the period, the reportable segments of the Group have
been changed and comparatives restated accordingly. The restatement
is detailed in note 2 to the Financial Information. As part of the
strategic review, the Group has separated the previous UK &
Ireland operating segment into the separate electricals and mobile
operating segments. Given the challenges in the mobile market, and
the corresponding change in the UK & Ireland mobile performance
in the period, the Group has changed the information presented to
the Board to provide greater clarity over the relative performance
of the two UK & Ireland businesses and to support decisions
related to the allocation of the Group's resources. This change has
included the provision of separate financial information in respect
of the UK & Ireland mobile and electricals segments. As a
result of the change, the goodwill previously allocated to the UK
& Ireland was separated into UK & Ireland electricals and
UK & Ireland mobile and an impairment review was then performed
over the new segments. This identified a material non-cash
impairment charge of GBP225 million recorded over the goodwill of
the UK & Ireland mobile segment, together with impairment of
related assets of GBP122 million and additional onerous lease
charges of GBP36 million recorded against individual stores.
(5) Free cash flow is defined in the glossary on page 36
(6) Net debt is defined in the glossary on page 36
(7) Dixons Carphone has in place substantial contingency plans
to mitigate the operational disruption expected in the event of a
'hard Brexit'. However, all financial guidance is provided on the
basis that there is no significant change in macroeconomic
outlook
(8) Peak and Post Peak are defined in the glossary on page 38
(9) Group financial guidance is excluding any impact arising as
a result of the adoption of IFRS 16
(10) Group financial guidance excludes any revaluation of mobile
network debtor which may arise, up or down
First Big Strides in our Transformation
"We Help Everyone Enjoy Amazing Technology"
The strategy to deliver our vision as outlined in December
focuses on our core, and on four things that matter most: two big
profitable growth opportunities in Online and Credit, giving
customers an easy experience and revitalising our Mobile business.
We are delivering this through three enablers: Capable and
Committed Colleagues; working in One Business with Stronger
Infrastructure.
Earlier forecast delivery of cost savings and margin over 5 year
transformation plan
We are making good early progress on our strategy. We've made
significant improvements in Online and Credit and early steps
towards an easier customer experience have seen satisfaction scores
rise. We've done good work within Services, we're investing in our
colleagues and we're on our way towards being genuinely One
Business, and towards Stronger Infrastructure - all important for
lower costs as well as for sustainable growth. In Mobile we are
accelerating our transformation.
We are delivering this transformation in the right way for our
customers. The protection of data is at the heart of our business
and is an area where we've fallen short in the past but where we
continue to increase investment. We must also remain focused on
treating our customers fairly, as the FCA fine in March 2019 for
historic mobile phone insurance mis-selling reminds us.
UK & Ireland electricals: making strong progress across our
transformation
Online
This is a big, profitable opportunity for the Group and we are
making good early progress, with online growth in UK & Ireland
electricals up 9%, accounting for 28% of sales. We are
outperforming the market and now taking market share both online
and in stores.
We are making it easy for customers to find and buy what they
want by increasing the online range by 5,000 products this year, an
increase of over 60% year on year, and we are on track for 40,000,
as promised, over the plan. We have made improvements in the online
customer experience, are focusing on smartphone first and will
launch a transactional app in FY20. We are also strengthening
online margins through making it easier for customers to adopt
credit and services online.
We're making more of online and stores working together at
scale. Stores have to be exciting for customers to discover the
right tech for them. This includes face-to-face advice, demos so
customers can experience the tech for themselves and giving more
space in stores to growth categories such as gaming, large screen
TVs and home tech. We are putting slower-moving lines online and
through the roll-out of our Store Mode tablets to all stores (5,500
tablets), we can now sell the whole online range in stores. Later
this year we will also be able to complete transactions on the
tablet as well.
We are making our biggest investment in stores in five years
with the introduction of Experience Zones and the roll-out of
Gaming Battlegrounds.
Credit
Credit is another big profitable growth opportunity across the
Group; we have strong foundations and we've made some good early
progress in FY19. Credit adoption is now over 9% (+150bps year on
year) and our number of credit customers is over 900,000, (+50%
year on year). Credit sales are now GBP420 million, up over 20%
year on year and we are on track for customer take up of credit to
increase to 16% of UK & Ireland electricals revenue over the
course of the plan.
With credit, customers can afford more and better technology and
customer satisfaction is higher. Credit gives customers another
reason to shop with us, they are stickier and more valuable with
lifetime profit on credit customers three times that of other
customers. Adoption of other services by credit customers is 45%
higher.
We are going about credit in the right way as a responsible
retailer; we now have 21,000 fully compliant credit trained
colleagues. We have better capabilities and expertise in-house and
better partnerships; in December we agreed a new relationship with
BNP Paribas to give us breadth of offer and better economics, still
without taking on credit or fraud risk. We are putting credit at
the heart of what we do and our customer journeys and making better
use of data, for example by building awareness through CRM.
Easy Customer Experience
We want to build a reputation as an easy and reliable place to
shop and we are making good early progress such as in our supply
chain on right first time delivery: up 2.5 percentage points versus
last year and in our contact centres: where first time customer
issue resolution is up 22%.
Services are important for all of our businesses and within this
we have been working to make Protection a bigger, more sustainable
part of our business. We know customers value product protection
and we will be launching revamped products and selling processes
this year, market-leading, customer-friendly products based on
customer needs. With our scale, we can offer protection others
can't.
Last year, profit contribution to UK & Ireland electricals
stepped down as we focused on revamping our Protection offer and
making it even better value. Early results from the revamp have
been encouraging.
Core enablers
Capable and Committed Colleagues are our greatest advantage: in
FY20, we are increasing the frontline training budget by four times
and, following a successful trial of a new assisted selling model,
'Freedom within a Framework', we will be rolling this out across
the estate, empowering employees to really focus on customer needs.
We announced the launch of a colleague share ownership scheme in
December which saw every permanent colleague with 12 months'
service granted at least GBP1,000 worth of shares each over the
next three years. By making every colleague a future shareholder we
are energising our colleagues behind the vision and strategy in a
way that will benefit customers and shareholders.
One Business: We have plans, including IT, Supply Chain and
central costs, to deliver our GBP200 million of cost savings which
we expect to achieve by FY22, two years ahead of plan.
Stronger Infrastructure: A big part of better infrastructure is
better IT. We are underway with our plans to upgrade our
infrastructure to enable our transformation which will allow us to
meet our delivery promises and give us faster product set-up, lower
cost to operate and standardised processes.
International: further potential to enhance growth and
margins
Our International business will account for over half our
profits in FY20 with strong continued top and bottom line gains and
further progress in EBIT margins. It continues to grow its market
leading positions, supported by a strong management team. Our
International business will benefit from the new Group strategy
with growth opportunities in B2B, Online, Credit, an easy customer
experience and focused on two growth categories, smart home and
kitchen. In June 2019, Erik Sønsterud took over the role of CEO
International. Over the past two years as CFO International, Erik
has overseen strong performance and led the development of our
strategy for Nordics.
We believe that we can further enhance the margin in our
International business, by making the most of Group synergies, and
are now targeting Nordic EBIT margin of at least 3.5% over the plan
(from 3.2% today), making them a still more valuable part of the
Group.
UK mobile: accelerating transformation
In December, we identified the challenges we faced in a changing
market. Since then these market trends are moving at pace so we are
accelerating our transformation to respond.
As we have outlined before, the overall UK mobile market has
seen a decline in total handset volumes as well as a change in mix
as customers move away from 24 month postpay towards SIMO and more
flexible credit-based contracts.
Given our lower share and margin in SIMO and current absence in
the more flexible credit-based offers, these mix changes have
impacted our share and profitability (which led to a non-cash
impairment of UK mobile assets in FY19). This has been compounded
by our legacy network contracts, where we could face large
penalties for missing volume commitments, and a cost base that is
inflexible and too high.
Last year, we successfully renegotiated all our legacy network
contracts, resulting in lower volume commitments with better
economics. We now have a better choice of connectivity to offer our
customers, including a wider choice of networks, more SIMO products
and better security of supply through our own MVNO, iD Mobile,
where last year our subscriber base grew to over one million
customers.
We are revamping our offer, reflecting how customers want to
buy. We are developing our own credit bundles as well as intending
to sell network credit bundles. We expect to have our offer in the
market in FY20 and making a meaningful contribution in FY21, ahead
of our initial plans. We will be ready with our new offers for when
postpay volume commitments lift during FY21.
We are accelerating our transformation towards One Business to
deliver a lower and more flexible cost base. We are underway
getting after cost benefits as we move to a single IT platform and
earlier decommissioning of legacy systems. We expect to achieve our
overall GBP200 million cost reduction two years early circa GBP100
million of it will benefit Mobile, which gives us good confidence
in Mobile reaching at least break even in FY22.
Headline performance review
The performance review below refers, unless otherwise stated, to
headline information for continuing businesses. The basis for the
preparation of this information, including restatements due to
businesses to be exited, discontinued operations and segmental
classification, is described above. Statutory results are described
on page 9.
Group
Group headline revenue decreased by 1% in Sterling terms to
GBP10,433 million (2017/18: GBP10,525 million) and was flat on a
local currency basis. Like-for-like revenue growth was 1%,
reflecting strong performance in Greece (like-for-like growth of
13%) and the Nordic region (like-for-like growth of 3%). UK &
Ireland electricals delivered 1% like-for-like growth whilst UK
& Ireland mobile declined by 4%.
Headline EBIT decreased GBP78 million to GBP322 million, as
higher headline EBIT in our International businesses was more than
offset by lower headline EBIT in UK & Ireland electricals and
UK & Ireland mobile.
UK & Ireland electricals
Headline revenue increased by 1% to GBP4,475 million (2017/18:
GBP4,412 million), with full year like-for-like revenue growth of
1%. Overall market share increased and growth was predominantly
driven by large screen TVs, gaming, small white goods and smart
home and fitness products. Softer categories included imaging and
audio. Our online business continued to grow strongly with revenue
growth of 9% and, increasingly, customers took advantage of the
ability to order online and collect in store.
Headline EBIT decreased by GBP51 million to GBP180 million
(2017/18: GBP231 million). Gross margins were down 100bps, with the
majority of this in the first half, negatively impacted by changes
in channel mix which drove higher demand for delivery and
installation, and lower services adoption rates as we reconfigured
our service proposition. Year-on-year EBIT was impacted by prior
year systems reconciliation releases (GBP16 million), prior year
benefit from changes in the cost profile of customer support
agreements (GBP4 million) and negative impact from the current year
implementation of IFRS15 on revenue from customer support
agreements (GBP5 million). In total these items accounted for GBP25
million of the year-on-year decline, of which GBP15 million
occurred in the second half of the year. There were also benefits
from the previously announced reorganisation, offset by higher
depreciation from IT systems brought online during the year.
UK & Ireland mobile
Total headline revenue of GBP1,998 million was recognised in the
year (2017/18: GBP2,233 million) which included GBP7 million of out
of period revenue (2017/18: GBP3 million). Like-for-like revenue
for the full year were down 4%. The like-for-like decrease
reflected the decline in the 24 month postpay market during the
period. Online continued to grow as share of business and our MVNO,
iD Mobile, saw good growth, to reach a million customers. Overall
revenue was impacted by store closures, network commissions income
and lower Connected World Services activity.
Headline EBIT decreased by GBP34 million to GBP9 million
(2017/18: GBP43 million) reflecting the decrease in sales. Overall
gross margins were up 50bps year-on-year. Headline EBIT included
negative revaluations of GBP32 million (2017/18: GBP30 million) due
to changes in customer behaviour and legislative impacts on
previously recognised transactions. In year network commissions
income was impacted by the recent implementation of customer bill
capping and provisions for future regulatory changes (GBP31
million). Current year EBIT included an GBP18 million depreciation
benefit from asset impairments recognised in the first half, cost
savings from store closures and benefits flowing from the
previously announced reorganisation, whilst prior year EBIT
included GBP9 million benefit from systems reconciliation releases
which have not been repeated in the current year.
Nordics
The year saw a strong performance in the Nordics with 4% local
currency revenue growth. Reported revenue was up 1% to GBP3,501
million (2017/18: GBP3,470 million), the difference from local
currency due to the strengthening in the Pound.
Like-for-like revenue grew by 3%, and market share increased,
with good growth in most categories particularly in telecoms,
gaming and white goods, supported by strong online growth of 24%.
Softer categories included computing and consumer electronics.
Gross margin improved c.10bps, coupled with improved
distribution cost efficiencies following the previously announced
investments in the Jönköping distribution centre, as well as
efficiencies resulting from the consolidation of brands in Norway,
with the rebranding of Lefdal.
As a result, Nordics headline EBIT improved by GBP6 million to
GBP112 million (2017/18: GBP106 million).
Greece
Greece continued to grow strongly, with like-for-like revenue
increasing 13%, local currency revenue increasing 13% and reported
revenue increasing 12% to GBP459 million (2017/18: GBP410 million),
with market share increasing across all categories. Gross margins
remained stable, and reported EBIT increased to GBP21 million
(2017/18: GBP20 million), reflecting continued investment in core
operations to support future growth.
Net finance costs
Headline net finance costs were GBP24 million (2017/18: GBP18
million). The increase in net financing costs reflected higher
usage of the revolving credit facility as the supplier funding
working capital facility was used less. Finance income included
within the net finance cost reduced by GBP3 million to GBP11
million due to the financing element of network income declining
with total network income.
Tax
The headline effective tax rate for the full year was 21%
(2017/18: 21%). The rate was higher than the UK statutory rate of
19% mainly due to higher statutory rates in the Nordics and certain
non-deductible items mainly in the UK.
Cash and movement on net debt
Free Cash Flow
2018/19 2017/18
GBPmillion GBPmillion
----------------------------------------------------- ----------- -----------
Headline EBIT 322 400
Depreciation and amortisation 146 160
Working capital 24 (80)
Capital expenditure (166) (173)
Taxation (45) (63)
Interest (30) (25)
Other items 9 -
----------------------------------------------------- -----------
Free cash flow before exceptional items - continuing
operations 260 219
Exceptional costs (107) (47)
----------------------------------------------------- ----------- -----------
Free Cash Flow 153 172
----------------------------------------------------- ----------- -----------
Free Cash Flow was an inflow of GBP153 million (2017/18: GBP172
million), a decrease of 11% for the reasons described below.
The Group experienced a working capital inflow of GBP24 million
(2017/18: GBP80 million outflow), largely as a result of the unwind
of the capitalised network debtor. This was partly offset by an
increase in the UK & Ireland electricals inventory of GBP37
million including a buffer in case of 'hard Brexit', lower than
planned sales at year end because of the unusually warm Easter
weekend, favourable payment timings last year not repeated and
adverse debtor timing this year end. Overall GBP30 million of this
working capital movement will reverse in FY20.
Capital expenditure in the period was GBP166 million (2017/18:
GBP173 million). The year-on-year decrease reflected a small pause
whilst new strategy plans were completed. Investment will build in
FY20 as the transformation accelerates.
Taxation paid in the year reduced from GBP63 million to GBP45
million due to overpayments in prior periods recovered in the year
and the impact of reduced profitability.
The increase in interest paid was primarily as a result of
higher usage on the revolving credit facility as explained
above.
Exceptional costs primarily comprised of the cash costs
associated with the transformation activities, the property
rationalisation programme and the regulatory fine noted below
within non-headline items.
A reconciliation of cash inflow from operations to free cash
flow is presented in note 8c to the Financial Information.
Funding
2018/19 2017/18
GBPmillion GBPmillion
------------------------------------------------------------- ----------- -----------
Free Cash Flow 153 172
Dividends (116) (130)
Acquisitions and disposals including discontinued operations (1) 24
Special pension contributions (46) (46)
Other items (6) 2
------------------------------------------------------------- ----------- -----------
Movement in net debt (16) 22
Opening net debt (249) (271)
------------------------------------------------------------- ----------- -----------
Closing net debt (265) (249)
------------------------------------------------------------- ----------- -----------
At 27 April 2019 the Group had net debt of GBP265 million, an
increase of GBP16 million from GBP249 million in the prior year.
Free Cash Flow was an inflow of GBP153 million (2017/18: GBP172
million) for the reasons described above.
Dividend cash outflows decreased from GBP130 million in the
prior year to GBP116 million in current year reflecting a
year-on-year decrease in FY 2018/19 interim dividend paid.
Net cash outlows of GBP1 million from acquisitions and disposals
in the current year primarily related to deferred consideration
paid for the historical acquisition of the Epoq kitchen business,
consideration received for the sale of honeybee of GBP8 million,
offset by GBP5 million of additional payments for honeybee related
costs, GBP3 million payment for warranties in relation to
previously disposed operations in Portugal. Prior year cash
outflows related to cash received following the sale of the Group's
Sprint joint venture and Spanish operations, net of the operating
and investing cash flows associated with the now discontinued
honeybee operations.The pension contributions reflected the agreed
deficit reduction plan following the 2016 triennial valuation.
Other items primarily related to foreign exchange movements on net
debt.
The average net debt during the year was GBP439 million
(2017/18: GBP405 million) up year-on-year because of the lower
usage of the supplier funding working capital facility. The year
end net debt balance was GBP265 million with the difference between
this and the average net debt representing the seasonal funding
requirements of the Group.
Statutory performance review
Income statement - continuing operations
2018/19 2017/18
GBPmillion GBPmillion
-------------------------------------------------- ----------- ------------
Revenue 10,433 10,531
-------------------------------------------------- ----------- ------------
EBIT (223) 321
Net finance costs (36) (32)
-------------------------------------------------- ----------- ------------
(Loss) / profit before tax (259) 289
Tax (52) (53)
-------------------------------------------------- ----------- ------------
(Loss) / profit after tax - continuing operations (311) 236
(Loss) after tax - discontinued operations (9) (70)
-------------------------------------------------- ----------- ------------
(Loss) / profit after tax for the period (320) 166
-------------------------------------------------- ----------- ------------
Basic (Loss) / Earnings per share (27.6)p 14.4p
Diluted (Loss) / Earnings per share (27.6)p 14.3p
-------------------------------------------------- ----------- ------------
Revenue decreased 1% to GBP10,433 million due to the reasons
discussed earlier in this report.
Profit before interest and tax decreased from GBP321 million to
a loss of GBP223 million in the current period, largely due to the
reasons discussed above and the non-headline costs incurred as
described later in this report.
Net finance costs were GBP4 million higher than the prior year
at GBP36 million for those reasons described earlier in this report
offset by a reduction in the net interest on defined benefit
obligations as a result of the lower opening discount rates
year-on-year.
The tax charge was flat year-on-year. There was a tax provision
in the year of GBP46 million as outlined below, offset by
additional tax credits due to the non-headline charges
recorded.
Basic and diluted EPS both decreased year-on-year reflecting the
loss after tax in the current year.
Non-headline items
Statutory loss before tax of GBP259 million (2017/18: GBP289
million profit) includes non-headline charges of GBP557 million
(2017/18: GBP93 million) . These charges are analysed below.
Further details can be found in note 3 to the Financial
Information.
2018/19 2017/18
GBPmillion GBPmillion
---------------------------- ----------- -----------
Acquisition and disposal
related items (23) (29)
Strategic change programmes (67) (52)
Data Incident costs (20) -
Regulatory costs (52) -
Impairment losses and
onerous leases (383) -
Share plan taxable
benefits - 2
---------------------------- ----------- -----------
Total non-headline
items before interest
and tax (545) (79)
Net pension interest (12) (14)
---------------------------- ----------- -----------
Total non-headline
items before tax (557) (93)
Tax regulatory matters (46) -
Tax on other non-headline
items 56 26
Profit / (loss) after
tax - discontinued
operations (9) (70)
---------------------------- ----------- -----------
Total non-headline
items (556) (137)
---------------------------- ----------- -----------
Acquisition and disposal related costs in the current year
related to amortisation of acquisition intangibles and the release
of contingent consideration for a previous acquisition. Prior year
costs related to amortisation of acquisition intangibles, results
of businesses to be exited and income received from previously
disposed businesses.
Strategic change programmes relate to significant
reorganisation, additional property rationalisation costs provided
and costs to exit non-core businesses. Prior year costs included
functional transformation costs and property rationalisation
costs.
Data incident costs related to costs associated with the data
incident announced on 13 June 2018, regulatory matters included an
increase in pension liabilities as a result of Guaranteed Minimum
Pension equalisation of GBP15 million, on-going employee related
matters, GBP30 million FCA fine imposed following the conclusion of
an investigation into historical Geek Squad mobile phone insurance
selling process and other ongoing regulatory matters.
As part of the strategic review, the Group separated the
previous operating segment in the UK & Ireland into the
separate electricals and mobile operating segments. Given the
challenges in the mobile market, and the corresponding change in
the UK & Ireland mobile performance in the period, the Group
changed the information presented to the Board to provide greater
clarity over the relative performance of the two UK & Ireland
businesses and to support decisions related to the allocation of
the Group's resources. This change included the provision of
separate financial information in respect of the UK & Ireland
mobile and electricals segments. As a result of the change, the
goodwill previously allocated to the UK & Ireland was separated
into UK & Ireland electricals and UK & Ireland mobile and
an impairment review was then performed over the new segments. This
change, together with a deterioration in the forecast performance
of the UK & Ireland mobile business identified a material
non-cash impairment charge of GBP225 million to be recorded over
the goodwill of the UK & Ireland mobile segment, together with
impairment of related assets of GBP122 million and additional
onerous lease charges of GBP36 million to be recorded against
individual stores.
Net pension interest was GBP12 million (2017/18: GBP14 million)
reflecting the charge incurred in relation to the Dixons Retail UK
pension scheme. Further details on the pension scheme can be found
in the Pensions section later in this performance review.
The tax credit of GBP10 million represented a tax credit on the
above non-headline items of GBP56 million, offset by an additional
tax provision of GBP46 million in relation to pre-merger legacy
corporate transactions.
Discontinued operations
On 4 May 2018, the Group agreed to sell the honeybee operations
through an asset sale, which was completed on 31 May 2018. These
operations were classified as a disposal group held for sale in the
year ended 28 April 2018. During year ended 27 April 2019,
additional costs of GBP7 million have been recorded following the
sale in relation to onerous contracts and compensation to previous
employees. Other items in the current year relate to settlement of
warranty provisions, provision for employee related matters in
previously disposed businesses and tax credits relating to capital
allowances.
Balance Sheet
2018/19 2017/18
GBPmillion GBPmillion
--------------------- ----------- -----------
Goodwill 2,840 3,088
Other fixed assets 740 872
Working capital (159) (96)
Net debt (note 8b) (265) (249)
Tax, pension & other (516) (419)
2,640 3,196
--------------------- ----------- -----------
Goodwill and other fixed assets have decreased primarily due to
the non-cash impairments described above.
Working capital has decreased in the year by GBP63 million as a
result of the unwind of the capitalised network debtor and an
increase in provisions in the period as a result of the
non-headline charges described above mostly offset by a decrease in
trade payables from a change in mix of supplier terms, timing of
payments and an increase in inventory held at the year end.
Net debt has increased as described above.
Other net liabilities (tax, pension & other) have increased
as a result of the increase in the IAS19 accounting pension deficit
described below, and an increase in income tax payable as a result
of a provision in relation to pre-merger legacy corporate
transactions.
Cash flow statement
2018/19 2017/18
GBPmillion GBPmillion
---------------------------------------------------------- ----------- -----------
EBIT - continuing operations (223) 321
EBIT - discontinued operations (14) (83)
Depreciation and amortisation 174 204
Working capital 72 (92)
Impairments 347 -
Other operating items (70) (38)
---------------------------------------------------------- ----------- -----------
Cash flows from operating activities 286 312
Acquisitions (1) (10)
Capital expenditure (166) (187)
Other investing cash flows 17 65
---------------------------------------------------------- ----------- -----------
Cash flows from investing activities (150) (132)
Dividends paid (116) (130)
Other financing cash flows (93) (62)
---------------------------------------------------------- ----------- -----------
Cash flows from financing activities (209) (192)
Decrease in cash and cash equivalents and bank overdrafts (73) (12)
---------------------------------------------------------- ----------- -----------
The statutory EBIT decrease, dividend cash flows, capital
expenditure and working capital inflows in the year are for those
reasons previously outlined in this report.
Other operating items related to pension contributions and
taxation cash outflows, offset by the reversal of non-cash share
based payment charges included in EBIT.
Acquisition outflow of GBP1 million (2017/18: GBP10 million
outflow) related to deferred consideration payments in the Nordics
for the 'Epoq' kitchen business. Prior year acquisition cash
outflows comprised GBP7 million of deferred consideration payments
for the acquisitions of Simplifydigital of GBP5 million and the
'Epoq' kitchen business in the Nordics of GBP2 million together
with GBP3 million of capital injected into the US joint venture
with Sprint prior to disposal.
Other investing cash flows related to proceeds on disposal being
consideration for a property sold in the previous period and the
consideration received for the honeybee assets. Prior year inflow
related to proceeds received following the disposal of the Group's
Spanish operations and the disposal of the Sprint joint venture and
additional consideration received in relation to prior period
disposals.
Other financing cash outflows of GBP93 million related to
interest and finance lease payments in the year and repayment of
external borrowing. The increase in out flows from the prior year
related to repayments of borrowings under the revolving credit
facility and higher interest cost.
Comprehensive income / changes in equity
Total equity of the Group has decreased from GBP3,196 million to
GBP2,640 million primarily reflecting the total statutory loss of
GBP320 million, the loss on retranslation of overseas operations of
GBP30 million and actuarial loss (net of taxation) relating to the
defined benefit pension scheme of GBP107 million and the payment of
dividends of GBP116 million.
Other matters
Pensions
The IAS 19 accounting deficit of the defined benefit section of
the UK pension scheme of Dixons Retail amounted to GBP579 million
at 27 April 2019 compared to GBP470 million at 28 April 2018.
Contributions during the period under the terms of the deficit
reduction plan amounted to GBP46 million (2017/18: GBP46 million),
with future contributions under the current agreement with the
Trustees of the fund, of GBP46 million per annum to be paid until
2028/29, with a further payment of GBP25 million in 2029/30. The
deficit has increased during the year as a result of changes in
market based financial assumptions, primarily the discount and
inflation rates.
Dividends
The Board declared an interim dividend of 2.25p per share which
was paid on 25 January 2019.
We are proposing a final dividend of 4.50p per share. The final
dividend is subject to shareholder approval at the Company's
forthcoming Annual General Meeting. The ex-dividend date is 5
September 2019, with a record date of 6 September 2019 and an
intended final dividend payment date of 27 September 2019
Consolidated income statement
Year ended 27 April Year ended 28 April
2019 2018
------------------------------------- -------------------------------------
Non- Non-
Headline* headline* Total Headline* headline* Total
Note GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Continuing operations
Revenue 2 10,433 - 10,433 10,525 6 10,531
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Profit / (loss) before interest
and tax 2,3 322 (545) (223) 400 (79) 321
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Finance income 11 - 11 14 - 14
Finance costs (35) (12) (47) (32) (14) (46)
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Net finance costs 4 (24) (12) (36) (18) (14) (32)
---------------------------------- ---- ----------- ----------- ----------- ----------- -----------
Profit / (loss) before tax 298 (557) (259) 382 (93) 289
Income tax (expense) / credit 5 (62) 10 (52) (79) 26 (53)
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Profit / (loss) after tax -
continuing
operations 236 (547) (311) 303 (67) 236
Loss after tax - discontinued
operations 9 - (9) (9) - (70) (70)
Profit / (loss) after tax for
the period 236 (556) (320) 303 (137) 166
Earnings / (loss) per share
(pence) 6
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
(26.8)
Basic - continuing operations 20.4p p 26.2p 20.4p
(26.8)
Diluted - continuing operations 20.2p p 26.1p 20.3p
(27.6)
Basic - total p 14.4p
(27.6)
Diluted - total p 14.3p
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
*Headline results reflect adjustments to total performance
measures. The directors consider headline performance to reflect
the ongoing trading performance of the Group and are consistent
with how the business performance is measured internally. Such
excluded items are described as 'non-headline' as discussed in note
3. Discontinued operations are disclosed in note 9.
Consolidated statement of comprehensive income
Year Year
ended ended
27 April 28 April
2019 2018
GBPmillion GBPmillion
------------------------------------------------------------------------------------------------------------------------- ---------- ----------
(Loss) / profit after tax for the period (320) 166
Items that may be reclassified to the income statement in
subsequent years:
Cash flow hedges
Fair value movements recognised in other comprehensive
income 10 (5)
Reclassified and reported in income statement (19) (11)
Amount recognised in inventories 1 29
Financial assets designated as FVTOCI
Gains / (losses) arising during the period 1 (2)
Exchange (loss) / gain arising on translation of foreign
operations (30) 8
Tax on items that may be subsequently reclassified to profit
or loss 2 -
------------------------------------------------------------------------------------------------------------------------- ---------- ----------
(35) 19
------------------------------------------------------------------------------------------------------------------------- ----------
Items that will not be reclassified to the income statement
in subsequent years:
Actuarial (losses) / gains on defined benefit pension schemes
- UK (128) 87
-
Overseas (1) (1)
Deferred tax on actuarial (losses) / gains on defined benefit
pension schemes 22 (15)
----------
(107) 71
------------------------------------------------------------------------------------------------------------------------- ----------
Other comprehensive (expense) / income for the period (taken
to equity) (142) 90
------------------------------------------------------------------------------------------------------------------------- ---------- ----------
Total comprehensive (expense) / income for the period (462) 256
------------------------------------------------------------------------------------------------------------------------- ---------- ----------
Consolidated balance sheet
27 April 28 April
2019 2018
Note GBPmillion GBPmillion
---------------------------------------------------- ---- ----------- -----------
Non-current assets
Goodwill 2,840 3,088
Intangible assets 464 478
Property, plant & equipment 276 394
Investments 18 17
Interests in joint ventures and associates - 1
Trade and other receivables 387 507
Deferred tax assets 282 240
---------------------------------------------------- ---- ----------- -----------
4,267 4,725
---------------------------------------------------- ----
Current assets
Inventory 1,156 1,145
Trade and other receivables 1,039 1,154
Derivative assets 18 27
Assets held for sale 9 - 17
Cash and cash equivalents 125 228
-----------
2,338 2,571
-----------
Total assets 6,605 7,296
---------------------------------------------------- ---- -----------
Current liabilities
Trade and other payables (2,350) (2,505)
Derivative liabilities (6) (7)
Contingent consideration (1) (1)
Income tax payable (76) (72)
Loans and other borrowings (19) (63)
Finance lease obligations (3) (3)
Liabilities held for sale 9 - (2)
Provisions (86) (67)
---------------------------------------------------- ---- ----------- -----------
(2,541) (2,720)
---------------------------------------------------- ---- -----------
Non-current liabilities
Trade and other payables (252) (318)
Contingent consideration (4) (12)
Loans and other borrowings (288) (329)
Finance lease obligations (80) (82)
Retirement benefit obligations (579) (472)
Deferred tax liabilities (156) (135)
Provisions (65) (32)
-----------
(1,424) (1,380)
-----------
Total liabilities (3,965) (4,100)
---------------------------------------------------- ---- ----------- -----------
Net assets 2,640 3,196
---------------------------------------------------- ---- -----------
Capital and reserves
Share capital 1 1
Share premium reserve 2,263 2,263
Accumulated profits 1,117 1,643
Translation reserve 9 39
Demerger reserve (750) (750)
Equity attributable to equity holders of the parent
company 2,640 3,196
---------------------------------------------------- ---- ----------- -----------
Consolidated statement of changes in equity
Share
Share premium Accumulated Translation Demerger Total
capital reserve profits reserve reserve equity
Note GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
At 29 April 2017 1 2,260 1,513 31 (750) 3,055
Profit for the period - - 166 - - 166
Other comprehensive income and
expense
recognised directly in equity - - 82 8 - 90
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Total comprehensive income and
expense
for the period - - 248 8 - 256
Ordinary shares issues - 3 (2) - - 1
Equity dividends 7 - - (130) - - (130)
Net movement in relation to share
schemes - - 14 - - 14
At 28 April 2018 1 2,263 1,643 39 (750) 3,196
Adjustment on initial application
of IFRS 15
(net of tax) - - 4 - - 4
Adjustment on initial application
of IFRS 9
(net of tax) - - (1) - - (1)
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Adjusted balance at 28 April
2018 1 2,263 1,646 39 (750) 3,199
Loss for the period - - (320) - - (320)
Other comprehensive income and
expense
recognised directly in equity - - (112) (30) - (142)
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Total comprehensive income and
expense
for the period - - (432) (30) - (462)
Ordinary shares issued - - - - - -
Equity dividends 7 - - (116) - - (116)
Net movement in relation to share
schemes - - 19 - - 19
At 27 April 2019 1 2,263 1,117 9 (750) 2,640
---------------------------------- ---- ----------- ----------- ----------- ----------- ----------- -----------
Consolidated cash flow statement
Year Year
ended ended
27 April 28 April
2019 2018
Note GBPmillion GBPmillion
----------------------------------------------------------- ---- ----------- -----------
Operating activities
Cash generated from operations 8 377 420
Special contributions to defined benefit pension scheme (46) (46)
Income tax paid (45) (62)
----------------------------------------------------------- ---- ----------- -----------
Net cash flows from operating activities 286 312
----------------------------------------------------------- ---- -----------
Investing activities
Net cash outflow arising from acquisitions (1) (7)
Proceeds from disposal of property, plant & equipment 9 2
Proceeds on sale of business 8 63
Acquisition of property, plant & equipment and other
intangibles (166) (187)
Investment in joint ventures - (3)
Net cash flows from investing activities (150) (132)
----------------------------------------------------------- ---- ----------- -----------
Financing activities
Interest paid (23) (19)
Repayment of obligations under finance leases (8) (10)
Issue of ordinary shares - 1
Equity dividends paid (116) (130)
Decrease in borrowings (61) (32)
Facility arrangement fees paid (1) (2)
Net cash flows from financing activities (209) (192)
----------------------------------------------------------- ---- ----------- -----------
Decrease in cash and cash equivalents and bank overdrafts (73) (12)
Cash and cash equivalents and bank overdrafts at beginning
of the period 185 199
Currency translation differences (6) (2)
----------------------------------------------------------- ---- -----------
Cash and cash equivalents and bank overdrafts at end
of the period 8 106 185
----------------------------------------------------------- ---- ----------- -----------
Notes to the Financial Information (continued)
1 Basis of preparation
The financial information, which comprises the consolidated
income statement, consolidated statement of comprehensive income,
consolidated balance sheet, consolidated statement of changes in
equity, consolidated cash flow statement and extracts from the
notes to the accounts for the year ended 27 April 2019 and 28 April
2018, has been prepared in accordance with the accounting policies
set out in the full financial statements and on a going concern
basis.
In their consideration of going concern, the directors have
reviewed the Group's future cash forecasts and profit projections,
which are based on market data and past experience. The directors
are of the opinion that the Group's forecasts and projections,
which take into account reasonably possible changes in trading
performance, show that the Group is able to operate within its
current facilities and comply with its banking covenants for the
foreseeable future. In arriving at their conclusion that the Group
has adequate financial resources, the directors were mindful of the
level of borrowings and facilities available and that the Group has
a robust policy towards liquidity and cash flow management.
Accordingly the directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in
operation for the foreseeable future and consequently the directors
continue to apply the going concern basis in the preparation of the
financial statements.
The financial information set out in this announcement does not
constitute statutory accounts within the meaning of Sections 434 to
436 of the Companies Act 2006 and is an abridged version of the
Group's financial statements for the year ended 27 April 2019 which
were approved by the directors on 19 June 2019. Statutory accounts
for the year ended 28 April 2018 have been delivered to the
Registrar of Companies, the auditor has reported on those accounts,
their report was unqualified and did not contain statements under
Section 498(2) or (3) of the Companies Act 2006. Statutory accounts
for the year ended 27 April 2019 will be delivered in due course.
The auditor has reported on those accounts, their report was
unqualified and did not contain statements under Section 498 of the
Companies Act 2006.
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU, IFRS issued by the International Accounting
Standards Board and those parts of the Companies Act 2006
applicable to those companies reporting under IFRS. The
consolidated financial statements incorporate the financial
statements of the Company and its subsidiary undertakings for the
year ended 27 April 2019.
The Group's income statement and segmental analysis identify
separately headline performance and non-headline items. Headline
performance measures reflect adjustments to total performance
measures. The directors consider 'headline' performance measures to
be an informative additional measure of the ongoing trading
performance of the Group and believe that these measures provide
additional useful information for shareholders on the Group's
performance and are consistent with how business performance is
measured internally.
Headline results are stated before the results of discontinued
operations or exited / to be exited businesses, amortisation of
acquisition intangibles, acquisition related costs, any exceptional
items considered so material that they distort underlying
performance (such as reorganisation costs, impairment charges and
property rationalisation costs), income from previously disposed
operations and net pension interest costs. Businesses exited or to
be exited are those which the Group has exited or committed to or
commenced to exit through disposal or closure but do not meet the
definition of discontinued operations as stipulated by IFRS and are
material to the results and/or operations of the Group.
2 Segmental analysis
The Group's operating segments reflect the segments routinely
reviewed by the Board and which are used to manage performance and
allocate resources. This information is predominantly based on
geographical areas which are either managed separately or have
similar trading characteristics such that they can be aggregated
together into one segment.
Changes to operating segments
During the period, the operating and reporting segments of the
Group have changed, and reflect the updated segments reported to
the Board, who are considered the Chief Operating Decision Maker
under IFRS 8 "Operating Segments". The previously disclosed UK
& Ireland segment has been separated into UK & Ireland
electricals and UK & Ireland mobile. Given the challenges in
the mobile market, and the corresponding change in the UK &
Ireland mobile performance in the period, the Group has changed the
information presented to the Board to provide greater clarity over
the relative performance of the two elements of the UK &
Ireland businesses and to support decisions related to the
allocation of the Group's resources. This change has included the
provision of separate financial information in respect of the UK
& Ireland mobile and electricals segments. The UK & Ireland
electricals operating segment consists of the CurrysPCWorld and
Dixons Travel businesses, and the UK & Ireland mobile segment
relates to the Carphone Warehouse, iD mobile and Simplify Digital
businesses and the Connected World Services B2B operations.
In addition, as disclosed in the Annual Report and Accounts for
the year ended 28 April 2018, following the classification of the
results of the honeybee segment as discontinued operations, these
are no longer presented as a separate operating segment.
The restatement of comparative information for these segments
has been set out below.
Discontinued operations are excluded from this segmental
analysis. Results are reviewed by the Board on a headline basis by
segment.
The Groups operating and reportable segments have therefore been
identified as follows:
UK & Ireland electricals comprises operations of
CurrysPCWorld and the Dixons Travel business.
UK & Ireland mobile comprises the Carphone Warehouse, iD
Mobile and Simplify Digital businesses and the Connected World
Services B2B operations.
Nordics operates in Norway, Sweden, Finland, Denmark and
Iceland.
Greece, consisting of our ongoing operations in Greece and, for
non-headline items, our previously disposed operations in Southern
Europe.
Non-headline results are allocated to each reportable segment.
Where these relate to businesses to be exited or income or expense
from previously disposed operations, they are allocated where
practicable to the region in which the operation was originally
held.
UK & Ireland electricals, UK & Ireland mobile, Nordics
and Greece are involved in the sale of consumer electronics and
mobile technology products and services, primarily through stores
or online channels.
Transactions between segments are on an arm's length basis
.
2 Segmental analysis
Year ended 27
April 2019
------------ ----------- ----------- ------------ -------------------------
UK & UK &
Ireland Ireland
electricals mobile Nordics Greece Eliminations Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
-------------------------- ------------ ----------- ----------- ------------ ------------ -----------
Headline external revenue 4,475 1,998 3,501 459 - 10,433
Inter-segmental revenue 79 90 - - (169) -
-------------------------- ------------ ----------- ----------- ------------ ------------ -----------
Total headline revenue 4,554 2,088 3,501 459 (169) 10,433
--------------------------
Headline EBIT 180 9 112 21 - 322
-------------------------- ------------ ----------- ----------- ------------ ------------ -----------
Reconciliation of headline profit to total profit before tax
Impairment
Headline Acquisition losses
profit / disposal Strategic Data and Pension Total
/ related change incident Regulatory onerous scheme profit
(loss) items programmes costs costs leases interest / (loss)
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
------------ ---------- ---------- ---------- ----------- ---------- ----------- -----------
UK & Ireland
electricals 180 (14) (44) (12) (16) - - 94
UK & Ireland
mobile 9 3 (23) (8) (36) (383) - (438)
Nordics 112 (12) - - - - - 100
Greece 21 - - - - - - 21
EBIT 322 (23) (67) (20) (52) (383) - (223)
Finance income 11 - - - - - - 11
Finance costs (35) - - - - - (12) (47)
-------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
Profit /
(loss)
before tax 298 (23) (67) (20) (52) (383) (12) (259)
-------------- ---------- ----------- ---------- ---------- ----------- ---------- ----------- -----------
2 Segmental analysis (continued)
Year ended 28
April 2018
------------ ----------- ----------- ----------- -------------------------
UK & UK &
Ireland Ireland
electricals mobile Nordics Greece Eliminations Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
-------------------------- ------------ ----------- ----------- ----------- ------------ -----------
Headline external revenue 4,412 2,233 3,470 410 - 10,525
Inter-segmental revenue 86 66 - - (152) -
-------------------------- ------------ ----------- ----------- ----------- ------------ -----------
Total headline revenue 4,498 2,299 3,470 410 (152) 10,525
-------------------------- ------------ ----------- ----------- ----------- ------------ -----------
Headline EBIT 231 43 106 20 - 400
-------------------------- ------------ ----------- ----------- ----------- ------------ -----------
Reconciliation of headline profit to total profit before tax
Headline Acquisition Share
profit / disposal Strategic plan taxable Pension Total
/ (loss) related change benefit scheme profit
(restated)* items programmes compensation interest / (loss)
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
--------------------- ------------ ----------- ----------- ------------- ----------- -----------
UK & Ireland
electricals 231 (13) (32) 2 - 188
UK & Ireland mobile 43 (13) (6) - - 24
Nordics 106 (12) (14) - - 80
Greece 20 9 - - - 29
EBIT 400 (29) (52) 2 - 321
Finance income 14 - - - - 14
Finance costs (32) - - - (14) (46)
----------------------- ------------ ----------- ----------- ------------- ----------- -----------
Profit / (loss) before
tax 382 (29) (52) 2 (14) 289
----------------------- ------------ ----------- ----------- ------------- ----------- -----------
Restatement of segmental information
As discussed above, during the period the Group's reportable
segments have been changed, and comparatives have been restated
accordingly. The below tables provide reconciliations for the
headline revenue and headline EBIT for the year ended 28 April
2018. The relevant adjustment is the reconciliation of the UK &
Ireland results between the UK & Ireland electricals and UK
& Ireland mobile segments and the reallocation of central costs
between the Groups reportable segments.
Year ended 28 April 2018
Total Reallocate
headline Reallocate UK &
revenue UK & Ireland Ireland
as previously electricals mobile
reported revenue revenue Total
GBPmillion GBPmillion GBPmillion GBPmillion
-------------------------------------- -------------- ------------- ----------- -----------
UK & Ireland electricals - 4,412 - 4,412
UK & Ireland mobile - - 2,233 2,233
UK & Ireland (as previously reported) 6,645 (4,412) (2,233) -
Nordics 3,470 - - 3,470
Greece 410 - - 410
---------------------------------------- -------------- ------------- ----------- -----------
Total headline revenue 10,525 - - 10,525
---------------------------------------- -------------- ------------- ----------- -----------
2 Segmental analysis (continued)
Total
headline
EBIT Reallocate Reallocate Reallocate
as previously UK & Ireland UK & Ireland central
reported electricals mobile costs Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
-------------------------------------- -------------- ------------- ------------- ------------- -----------
UK & Ireland electricals - 233 - (2) 231
UK & Ireland mobile - - 48 (5) 43
UK & Ireland (as previously reported) 281 (233) (48) - -
Nordics 101 - - 5 106
Greece 18 - - 2 20
Total headline EBIT 400 - - - 400
--------------------------------------- -------------- ------------- ------------- ------------- -----------
The Group's disaggregated revenue recognised under 'Revenue from
Contracts with Customers' in accordance with IFRS 15 relates to the
following operating segments and revenue streams:
Year ended 27 April
2019
-------------------------------------
UK & UK &
Ireland Ireland
electricals mobile Nordics Greece Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
------------------------- ------------ ----------- ----------- ----------- -----------
Sale of goods 4,085 474 3,161 437 8,157
Commission revenue 9 1,401 263 1 1,674
Support services revenue 275 - 25 14 314
Other services revenue 99 123 52 7 281
Other revenue 7 - - - 7
------------------------- ------------ ----------- ----------- ----------- -----------
Total headline revenue 4,475 1,998 3,501 459 10,433
------------------------- ------------ ----------- ----------- ----------- -----------
Year ended 28 April
2018
-------------------------------------
UK & UK &
Ireland Ireland
electricals mobile Nordics Greece Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
------------------------- ------------ ----------- ----------- ----------- -----------
Sale of goods 4,005 532 3,135 391 8,063
Commission revenue 8 1,578 258 1 1,845
Support services revenue 285 - 24 12 321
Other services revenue 112 123 53 6 294
Other revenue 2 - - - 2
------------------------- ------------ ----------- ----------- ----------- -----------
Total headline revenue 4,412 2,233 3,470 410 10,525
------------------------- ------------ ----------- ----------- ----------- -----------
Revenue from support services relates predominantly to customer
support agreements, while other services revenue comprises delivery
and installation, product repairs and product support.
3 Non-headline items
Year Year
ended ended
27 April 28 April
2019 2018
Note GBPmillion GBPmillion
----------------------------------------------------------- ------ ----------- -----------
Included in revenue:
Businesses to be exited (i) - 6
----------------------------------------------------------- ------ ----------- -----------
- 6
----------------------------------------------------------- ------ ----------- -----------
Included in profit / (loss) before interest and tax:
Acquisition / disposal related items (i) (23) (29)
Strategic change programmes (ii) (67) (52)
Data incident costs (iii) (20) -
Regulatory costs (iv) (52) -
Impairment losses and onerous leases (v) (383) -
Share plan taxable benefit compensation (vi) - 2
(545) (79)
----------------------------------------------------------- ------ ----------- -----------
Included in net finance costs:
Net non-cash finance costs on defined benefit pension
schemes (vii) (12) (14)
Total impact on profit / (loss) before tax (557) (93)
----------------------------------------------------------- ------ ----------- -----------
Tax on regulatory matters (viii) (46) -
Tax on non-headline items (ix) 56 26
----------------------------------------------------------- ------ ----------- -----------
Total impact on profit / (loss) after tax - continuing
operations (547) (67)
----------------------------------------------------------- ------ ----------- -----------
Discontinued operations 9 (9) (70)
----------------------------------------------------------- ------ ----------- -----------
Total impact on profit / (loss) after tax (556) (137)
----------------------------------------------------------- ------ ----------- -----------
(i) Acquisition / disposal related items
Amortisation of acquisition intangibles:
A charge of GBP28 million (28 April 2018: GBP32 million) relates
to acquisition intangibles arising on the CPW Europe acquisition,
the Dixons Retail merger and Simplify Digital acquisition.
Acquisition related:
Acquisition related income of GBP5 million primarily relates to
the release of deferred consideration for a previous acquisition no
longer payable given the strategic change of the business (28 April
2018: GBP2 million release).
Unieuro income:
In November 2013, the Group disposed of its Unieuro operations,
but retained an investment of 14.96% in the operations. The
investment was initially recognised at GBPnil based on the fair
value of the retained interest. In March 2017, Unieuro undertook an
IPO for 31.8% of its shareholdings, which reduced the Group's
investment to 10.2% of the Unieuro operations.
In October 2017, IEH announced a corporate restructuring,
whereby the Group obtained direct control of the investment of
7.18% of Unieuro, together with a receivable for previous dividends
and the share sales. The amount realised as a result of the
dividend and share sale of GBP10 million has been recycled to the
income statement in the year ended 28 April 2018.
(i) Businesses to be exited:
Comprises the trading result of businesses to be exited where
they do not meet the criteria under IFRS 5 "Non-Current Assets Held
for Sale and Discontinued Operations", for separate disclosure as
discontinued operations. In the prior period, this comprises the
results of the iD mobile operations in the Republic of Ireland.
There has been no profit or loss in relation to businesses to be
exited in the current period (2017/18: GBP9 million).
(ii) Strategic change programmes:
During the current period, costs of GBP49 million have been
incurred in relation to the strategic change programme, to set a
clear long-term direction for the business which sharpens our focus
on the core and that better joins up our offer to customers and our
business behind the scenes. The costs incurred relate to the
following:
- GBP11 million in relation to costs of implementing the strategy;
- GBP21 million cost in relation to restructuring and redundancy
costs for central operations organisational design;
3 Non-headline items (continued)
GBP9 million in relation to the closure of non-core operations,
relating to certain of our concession arrangements across the
CurrysPCWorld, Carphone Warehouse and Dixons Travel brands and our
energy switching business; and
- GBP8 million in relation to further rationalisation of our
property estate, including the closure of Carphone Warehouse stores
in the UK as announced on 4 May 2018.
Property rationalisation:
Additional costs of GBP18 million have been provided in relation
to additional provisions for the remaining stores under the Currys
PC World 3-in-1 and Carphone Warehouse programme announce in
2015/16, due to the challenges in the UK retail property market. In
the prior year ended 28 April 2018, an additional charge of GBP29
million was recorded.
Merger and transformation costs:
There has been no profit or loss in relation to previous merger
and transformation programmes in the current period. Transformation
costs of GBP23 million in the prior year ended 28 April 2018
related to business restructuring in the Nordics of GBP14 million,
together with UK business restructuring and functional
transformation costs of GBP9 million primarily related to
redundancy and consultancy fees.
(iii) Data incident costs:
During the period, costs associated with the data incident
announced on 13 June 2018 of GBP20 million have been recorded.
GBP14 million of these costs, related to investigation and
remediation activities, were incurred during the year, with the
remaining costs expected to be incurred within the next twelve
months.
(iv) Regulatory costs:
A charge of GBP52 million has been recorded in relation to
pension related costs, employee related costs and other regulatory
matters in the current period. This includes:
- An additional pension related cost of GBP15 million. On 26
October 2018, the High Court issued a judgement in a claim to
address the issues of unequal Guaranteed Minimum Pensions (GMPs) in
the Lloyds Banking Group's defined benefit pension schemes (the
"Lloyds case"). This will potentially impact the DSG Retirement and
Employee Security Scheme operating in the UK. The Group is working
through the details of the ruling and assessing its impact on the
liability valuation of the scheme. We currently estimate that this
will increase the liability by GBP15 million, and therefore have
recorded this as a past service cost in the current period. There
are a number of uncertainties surrounding the change, including the
method of calculation of the equalisation and any potential appeals
against the ruling, therefore we consider that the amount is
subject to further change, however currently represents our best
estimate.
- Costs of GBP1 million have also been provided for in relation
to redress for ongoing employee related matters for historical
periods.
- GBP30 million FCA fine imposed following the conclusion of an
investigation into historical Geek Squad mobile phone insurance
selling processes.
(v) Impairment losses and onerous leases:
As part of the strategic review performed by the Group, and as
discussed in note 2, the Group has separated the operating segments
in the UK & Ireland into the separate electricals and mobile
operating segments. As a result of the change, the goodwill
previously allocated the UK & Ireland group of cash generating
units ("CGUs") has been separated into the UK & Ireland
electricals and UK & Ireland mobile CGUs. This allocation has
been performed on a relative value basis on the value of the two
operating segments. In separating the goodwill, an impairment
review has been performed over both operating segments based on our
future projections and cash flows, reflecting the conclusions of
the Group's strategic review which has been undertaken since the
year end. This change, together with a deterioration in the
forecast performance of the UK & Ireland mobile business,
identified a material non-cash impairment charge to be recorded
over the goodwill of the UK & Ireland mobile segment, together
with impairment of related assets and additional onerous lease
charges to be recorded against individual stores. The breakdown of
the impairment recorded in relation to the UK & Ireland mobile
operating segment asset base was as follows:
- GBP225 million representing the goodwill associated with the
UK & Ireland mobile operating segment
- GBP10 million of acquisition intangibles recognised during the previous acquisitions
- GBP75 million of intangible assets, primarily relating to
capitalised software development costs
- GBP25 million of central property, plant and equipment
- GBP12 million of store assets
In addition, GBP36 million of onerous lease provisions for
stores within the UK & Ireland mobile operating segment have
been recognised.
(vi) Share plan taxable benefit compensation:
A provision of GBP11 million was recognised in 2016/17 in
relation to taxable benefits arising to participants of the Share
Plan, as discussed in the Remuneration Committee Chairman's
statement on page 61 of the 2016/17 Annual Report. In 2017/18, the
excess portion of the provision was released following the payment
of compensation of the scheme.
3 Non-headline items (continued)
(vii) Net non-cash financing costs on defined benefit pension
schemes:
The net interest charge on defined benefit pension schemes
represents the non-cash remeasurement calculated by applying the
corporate bond yield rates applicable on the last day of the
previous financial year to the net defined benefit obligation. As a
non-cash remeasurement cost which is unrepresentative of the actual
investment gains or losses made or the liabilities paid and payable
the accounting effect of this is excluded from headline
earnings.
(viii) Tax regulatory matters:
As previously disclosed, the Group has been co-operating with
HMRC in relation to the tax treatment arising due to pre-merger
legacy corporate transactions. The Group maintains the tax
treatment was appropriate, however, the likelihood of litigation,
and therefore risk associated with this matter, has increased and
therefore a provision has been recognised.
(ix) Taxation:
The effective tax rate on non-headline earnings and costs is 2%.
Once the impact of the provision of GBP46 million is removed, the
effective tax rate is 10%. The rate of relief is lower than the UK
statutory rate of 19% predominantly due to non-deductible goodwill
impairment and regulatory costs. For the year ended 28 April 2018,
the effective tax rate on non-headline items was 28% due to a
one-off credit in relation to the recognition of previously
unrecognised deferred tax assets in Greece of GBP10 million.
4 Net finance costs
Year Year
ended ended
27 April 28 April
2019 2018
GBPmillion GBPmillion
------------------------------------------------------- ----------- -----------
Unwind of discounts on trade receivables 11 14
Finance income 11 14
------------------------------------------------------- ----------- -----------
Interest on bank overdrafts, loans and borrowings (17) (13)
Finance lease interest payable (6) (6)
Net interest on defined benefit pension obligations(i) (12) (14)
Unwind of discounts on liabilities (4) (6)
Amortisation of facility fees (2) (1)
Other interest expense (6) (6)
Finance costs (47) (46)
------------------------------------------------------- ----------- -----------
Total net finance costs (36) (32)
------------------------------------------------------- ----------- -----------
Headline total net finance costs (24) (18)
------------------------------------------------------- ----------- -----------
(i) Headline finance costs exclude net interest on defined
benefit pension obligations (see note 3).
5 Tax
The effective tax rate on headline earnings of 21% (2017/18:
21%). Items attracting no tax relief or liability relate mainly to
non-deductible depreciation in the UK business. The effective tax
rate on non-headline earnings and costs is 2% (2017/18: 28%),
further information is outlined in note 3. A further reduction in
the UK corporation tax rate to 17% from 1 April 2020 has been
substantively enacted by the balance sheet date and has been used
in the recognition of deferred tax balances.
6 Earnings per share
Year Year
ended ended
27 April 28 April
2019 2018
GBPmillion GBPmillion
----------------------------------------------------- ------------ -----------
Headline earnings
Continuing operations 236 303
------------------------------------------------------ ------------ -----------
Total (loss) / earnings
Continuing operations (311) 236
Discontinued operations (9) (70)
------------------------------------------------------ ------------ -----------
Total (320) 166
------------------------------------------------------ ------------ -----------
Million Million
----------------------------------------------------- ------------ -----------
Weighted average number of shares
Average shares in issue 1,160 1,157
Less average holding by Group ESOT (1) (1)
------------------------------------------------------ ------------ -----------
For basic earnings per share 1,159 1,156
Dilutive effect of share options and other incentive
schemes 9 4
For diluted earnings per share 1,168 1,160
------------------------------------------------------ ------------ -----------
Pence Pence
----------------------------------------------------- ------------ -----------
Basic earnings per share
Total (continuing and discontinued operations) (27.6) 14.4
Adjustment in respect of discontinued operations 0.8 6.0
------------------------------------------------------ ------------ -----------
Continuing operations (26.8) 20.4
Adjustments for non-headline - continuing operations
(net of taxation) 47.2 5.8
------------------------------------------------------ ------------ -----------
Headline basic earnings per share 20.4 26.2
------------------------------------------------------ ------------ -----------
Diluted earnings per share
Total (continuing and discontinued operations) (27.6) 14.3
Adjustment in respect of discontinued operations 0.8 6.0
------------------------------------------------------ ------------ -----------
Continuing operations (26.8) 20.3
Adjustments for hon-headline - continuing operations
(net of taxation) 47.0 5.8
------------------------------------------------------ ------------ -----------
Headline diluted earnings per share 20.2 26.1
------------------------------------------------------ ------------ -----------
Basic and diluted earnings per share are based on the profit for
the period attributable to equity shareholders. Headline earnings
per share is presented in order to show the underlying performance
of the Group. Adjustments used to determine headline earnings are
described further in note 3.
7 Equity dividends
27 April 28 April
2019 2018
GBPmillion GBPmillion
----------------------------------------------------------- ----------- -----------
Amounts recognised as distributions to equity shareholders
in the period
- on ordinary shares of 0.1p each
Final dividend for the year ended 29 April 2017 of 7.75p
per ordinary share - 89
Interim dividend for the year ended 28 April 2018 of 3.50p
per ordinary share - 41
Final dividend for the year ended 28 April 2018 of 7.75p
per ordinary share 90 -
Interim dividend for the year ended 27 April 2019 of 2.25p
per ordinary share 26 -
----------------------------------------------------------- -----------
116 130
----------------------------------------------------------- ----------- -----------
The following distribution is proposed but had not been effected
at 27 April 2019 and is subject to shareholders' approval at the
forthcoming Annual General Meeting:
GBPmillion
---------------------------------------------------------------------- ----------
Final dividend for the year ended 27 April 2019 of 4.50p per ordinary
share 52
---------------------------------------------------------------------- ----------
The payment of this dividend will not have any tax consequences
for the Group.
8 Notes to the cash flow statement
a) Reconciliation of operating profit to net cash inflow from
operating activities
Year Year
ended ended
27 April 28 April
2019 2018
GBPmillion GBPmillion
---------------------------------------------------------------- ----------- -----------
(Loss) / profit before interest and tax - continuing operations (223) 321
Loss before interest and tax - discontinued operations (14) (83)
Depreciation and amortisation 174 204
Investment income - -
Share-based payment charge 21 14
Share of results of joint ventures - 3
Profit / (loss) on disposal of subsidiary - (2)
Profit / (loss) on disposal of fixed assets - (1)
Impairments and other non-cash items (see note 3 (v)) 347 56
Operating cash flows before movements in working capital 305 512
Movements in working capital:
Increase in inventory (26) (72)
Decrease / (increase) in receivables 226 (32)
(Decrease) / increase in payables (182) 17
Increase / (decrease) in provisions 54 (5)
---------------------------------------------------------------- ----------- -----------
72 (92)
Cash generated from operations 377 420
---------------------------------------------------------------- ----------- -----------
The presentation of the above reconciliation and statement of
cash flows include both continuing and discontinued operations.
Comparative amounts have been presented accordingly.
8 Notes to the cash flow statement (continued)
b) Analysis of net debt
Other
29 April Cash non-cash Currency 27 April
2018 flow movements translation 2019
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
----------------------------------- ----------- ----------- ----------- ------------ -----------
Cash and cash equivalents 228 (97) - (6) 125
Bank Overdrafts (43) 24 - - (19)
------------------------------------- ----------- ----------- ----------- ------------ -----------
Cash and cash equivalents and bank
overdrafts 185 (73) - (6) 106
Borrowings due within one year (20) 20 - - -
Borrowings due after more than one
year (329) 41 - - (288)
Obligations under finance leases (85) 8 (6) - (83)
------------------------------------- ----------- ----------- ----------- ------------ -----------
(434) 69 (6) - (371)
----------------------------------- ----------- ----------- ----------- ------------ -----------
Net debt (249) (4) (6) (6) (265)
------------------------------------- ----------- ----------- ----------- ------------ -----------
Other
30 April Cash non-cash Currency 28 April
2017 flow movements translation 2018
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
----------------------------------- ----------- ----------- ----------- ------------ -----------
Cash and cash equivalents 209 21 - (2) 228
Bank Overdrafts (10) (33) - - (43)
------------------------------------- ----------- ----------- ----------- ------------ -----------
Cash and cash equivalents and bank
overdrafts 199 (12) - (2) 185
Borrowings due within one year - (20) - - (20)
Borrowings due after more than one
year (381) 52 - - (329)
Obligations under finance leases (89) 10 (6) - (85)
------------------------------------- ----------- ----------- ----------- ------------ -----------
(470) 42 (6) - (434)
----------------------------------- ----------- ----------- ----------- ------------ -----------
Net (debt) / funds (271) 30 (6) (2) (249)
------------------------------------- ----------- ----------- ----------- ------------ -----------
c) Reconciliation of cash inflow from operations to free cash
flow
Year Year
ended ended
27 April 28 April
2019 2018
GBPmillion GBPmillion
---------------------------------------------------------------- ----------- -----------
Cash inflow from operations 377 420
Operating cash flows from discontinued operations* 8 11
Taxation (45) (63)
Interest, facility arrangement fees, dividends from investments
and repayment of finance leases (30) (24)
Capital expenditure (166) (173)
Proceeds from disposal of fixed assets 9 2
Other movements - (1)
---------------------------------------------------------------- ----------- -----------
Free cash flow 153 172
---------------------------------------------------------------- ----------- -----------
* Operating cash flows from discontinued operations are removed
in the above reconciliation as free cash flow is presented on a
continuing basis.
9 Discontinued operations and assets held for sale
There have been no additional operations classified as
discontinued during the year ended 27 April 2019. The following
were classified as discontinued in the year ended 28 April 2018 and
have continued to incur costs in the current financial year:
honeybee
On 4 May 2018, the Group agreed to sell the honeybee operations
through an asset sale, which was completed on 31 May 2018. These
operations were classified as a disposal group held for sale and
presented separately in the balance sheet. An impairment of GBP55
million was recognised on classification to assets held for sale,
representing the difference between the expected proceeds and
the book value of the related assets. The impairment, together
with the trading loss recognised during the year of GBP21 million
were classified as a discontinued operation in the year ended 28
April 2018.
For the year ended 27 April 2019, no profit or loss on disposal
was recognised from the completion of the sale of the operations.
Additional costs of GBP7 million have been recorded in relation to
onerous contracts following the sale and compensation to previous
employees.
A deferred tax credit of GBP4 million in relation to a prior
year adjustment relating to accelerated capital allowances has been
recognised.
Spain
On 29 September 2017, the Group completed the disposal of The
Phone House Spain S.L.U., Connected World Services Europe S.L. and
Smarthouse Spain S.A. which together represented the trading
operations in Spain. A gain of GBP1 million arose on the disposal,
being the difference between the proceeds of disposal and the
carrying amount of the subsidiaries' net assets and attributable
goodwill. The trading results of the operations up to the date of
disposal were classified as discontinued.
For the year ended 27 April 2019, the GBP1 million tax credit is
in relation to the reversal of previously held provisions for tax
risks where statute of limitations have now lapsed.
Sprint
On 7 June 2017 agreement was reached to dispose of the Group's
50% interest in the Sprint Connect LLC joint venture to Sprint
Corporation. Proceeds of $22 million (GBP17 million) were received
and GBPnil gain or loss was recognised in relation to the disposal.
The share of results of the operation to the date of disposal in
the year ended 28 April 2018 were classified as discontinued (GBP3
million loss).
Other
As previously reported the sale of operations in Germany was
completed on 5 May 2015, the Netherlands on 30 June 2015, Portugal
on 31 August 2015 and Virgin Mobile France on 4 December 2014.
Additional costs of GBP2 million have been recorded in settlement
of warranties in Portugal and a GBP5 million provision has been
recognised in the current year in relation to employee matters in
previously disposed businesses.
9 Discontinued operations and assets held for sale
a) (Loss) / profit after tax - discontinued operations
Year ended 27
April 2019
----------- ----------- ------------ ------------------------
Sprint
Joint
honeybee Spain Venture Other Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
------------------ ----------- ----------- ------------ ----------- -----------
Revenue - - - - -
Expenses (7) - - (7) (14)
(Loss) before tax (7) - - (7) (14)
Income tax 4 1 - - 5
(3) 1 - (7) (9)
------------------ ----------- ----------- ------------ ----------- -----------
Year ended 28
April 2018
----------- ----------- ------------ ------------------------
Sprint
Joint
honeybee Spain Venture Other Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
---------------------------------- ----------- ----------- ------------ ----------- -----------
Revenue 3 144 - - 147
Expenses (24) (144) (6) - (174)
Impairment of assets (55) - - - (55)
Share of results of joint venture - - ( 3) - (3)
(Loss) before tax (76) - (9) - (85)
Income tax 13 - - - 13
Profit on disposal - 1 - 1 2
----------------------------------- ----------- ----------- ------------ ----------- -----------
(63) 1 (9) 1 (70)
---------------------------------- ----------- ----------- ------------ ----------- -----------
b) Cash flows from discontinued operations
The net cash flows incurred by the discontinued operation during
the year are as follows. These cash flows are included within the
Consolidated cash flow statement:
Year ended 27
April 2019
----------- ----------- ------------ ------------------------
Sprint
Joint
honeybee Spain Venture Other Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
--------------------- ----------- ----------- ------------ ----------- -----------
Operating activities (5) - - (3) (8)
Investing activites 8 - - - 8
3 - - (3) -
--------------------- ----------- ----------- ------------ ----------- -----------
Year ended 28
April 2018
----------- ----------- ------------ ------------------------
Sprint
Joint
honeybee Spain Venture Other Total
GBPmillion GBPmillion GBPmillion GBPmillion GBPmillion
--------------------- ----------- ----------- ------------ ----------- -----------
Operating activities (7) (3) (2) 1 (11)
Investing activites (12) 44 14 - 46
(19) 41 12 1 35
--------------------- ----------- ----------- ------------ ----------- -----------
9 Discontinued operations and assets held for sale
(continued)
c) Assets and liabilities held for sale
The assets and liabilities held for sale relate to the honeybee
operations. The major classes of assets and liabilities comprising
the operations classified as held for sale are as follows:
27 April 28 April
2019 2018
GBPmillion GBPmillion
---------------------------------------------- ----------- -----------
Intangible assets - 8
Trade receivables - 9
---------------------------------------------- ----------- -----------
Total assets classified as held for sale - 17
---------------------------------------------- ----------- -----------
-
Deferred income - (2)
---------------------------------------------- ----------- -----------
Total liabilities classified as held for sale - (2)
---------------------------------------------- ----------- -----------
-
Net assets of disposal group - 15
---------------------------------------------- ----------- -----------
10 Related party transactions
Transactions between the Group's subsidiary undertakings, which
are related parties, have been eliminated on consolidation and
accordingly are not disclosed.
The Group had the following transactions and balances with its
associates and joint venture:
27 April 28 April
2019 2018
GBPmillion GBPmillion
----------- -----------
Revenue from sale of goods and services 13 11
Amounts owed to the Group 2 2
---------------------------------------- ----------- -----------
All transactions entered into with related parties were
completed on an arm's length basis.
Risks to Achieving the Group's Objectives
The Board continually reviews and monitors the risks and
uncertainties which could have a material effect on its results.
The updated risks and uncertainties are listed below (including new
product safety and Long term & diversification of funding
risks). Risks 1 to 10, and the factors which mitigate them, are set
out in more detail in the 2017-18 Annual Report and Accounts on
pages 15 to 18 and remain relevant in the current period.
A potential Greek exit from the Euro has been removed from the
Group Risk register given the developments in the Greek economy
over the past few years and the successful performance of the
Kotsovolos business.
The risk of failure to operate an effective fraud control
environment has been removed from the Group Risk register.
Dependence on networks in driving profitability, cash flow and
market share has been incorporated into risk 3 and hence removed as
a stand-alone risk. The board believe that the nature or
relationships with network providers is one of the core elements of
the Dixons Carphone business model. The mitigating actions with
regards to dependency on network contracts remain unchanged and
will be monitored as part of the review of risk 3.
1. Dependence on key suppliers in driving profitability, cash flow and market share;
2. The decision of the UK to leave the European Union could lead
to a period of economic uncertainty and a loss of consumer
confidence, foreign exchange volatility and long-term changes in
tax and other regulations which may impact the Group's operations
and financial performance;
3. Failure to maintain a sustainable business model in the face
of a changing consumer environment could result in a loss of
competitive advantage impacting financial performance;
4. Failure to comply with Financial Services regulation could
result in reputational damage, customer compensation, financial
penalties and a resultant deterioration in financial
performance;
5. Failure in appropriately safeguarding sensitive information
and failure to comply with legislation could result in reputational
damage, financial penalties and a resultant deterioration in
financial performance;
6. Failure to appropriately safeguard against cyber risks and
associated attacks could result in reputational damage, customer
compensation, financial penalties and a resultant deterioration in
financial performance;
7. Failure to action appropriate Health and Safety measures
resulting in injury could give rise to reputational damage and
financial penalties;
8. Business continuity plans are not effective and major
incident response is inadequate resulting in reputational damage
and a loss of competitive advantage;
9. Failure to adequately invest in and integrate the Group's IT
systems and infrastructure could result in restricted growth and
reputational damage impacting financial performance;
10. Crystallisation of potential tax exposures resulting from
legacy corporate transactions, employee and sales taxes arising
from periodic tax audits and investigations across various
jurisdictions in which the Group operates may impact cash flows for
the Group;
11. Product safety where poor quality or unsafe products
provided to customers which pose risk to customer health, and
result in fines, prosecution and significant reputational damage
has been added to the Group Risk profile. Whilst the Board is
assured that the business operates effective controls to mitigate
this risk through the businesses Technical and Quality processes
and procedures, it wishes to ensure that the risk receives a level
of Board oversight; and
12. Long term diversification of funding has been added to the
Group Risk profile. Given the current funding arrangements (see
note 8 of the financial information included in this report), the
new management team wish to explore the potential for broader, more
diverse sources of funding.
The directors have prepared the preliminary financial
information on a going concern basis. In considering the going
concern basis, the directors have considered the above mentioned
principal risks and uncertainties, especially in the context of a
highly competitive consumer and retail environment as well as the
wider macro-economic environment and how these factors might
influence the Group's objectives and strategy.
The directors have reviewed the Group's future cash forecasts
and profit projections, which are based on market data and past
experience, including seasonal borrowing requirements and available
facilities on a monthly basis. The directors are of the opinion
that the Group's forecasts and projections, which take into account
reasonably possible changes in trading performance, show that the
Group is able to operate within its current facilities and comply
with its banking covenants for the foreseeable future. In arriving
at their conclusion that the Group has adequate financial
resources, the directors were mindful of the level of borrowings
and facilities and that the Group has a robust policy towards
liquidity and cash flow management.
Accordingly the directors have a reasonable expectation that the
Group has adequate resources to continue in operation for the
foreseeable future and consequently the directors continue to apply
the going concern basis in the preparation of the financial
statements.
Glossary and definitions
Alternative performance measures (APMs)
In the reporting of financial information, the Group uses
certain measures that are not required under IFRS. We consider that
these additional measures (commonly referred to as 'alternate
performance measures') provide additional information on the
performance of the business and trends to shareholders. These
measures are consistent with those used internally, and are
considered critical to understanding the financial performance and
financial health of the Group. APMs are also used to enhance the
comparability of information between reporting periods, by
adjusting for non-recurring or items considered to be distortive on
trading performance which may affect IFRS measures, to aid the user
in understanding the Group's performance. These alternative
performance measures may not be directly comparable with other
similarly titled measures or 'adjusted' revenue or profit measures
used by other companies, and are not intended to be a substitute
for, or superior to, IFRS measures.
Headline and non-headline measures
The Group's income statement and segmental analysis identify
separately headline performance and non-headline items. Headline
performance measures reflect adjustments to total performance
measures. The directors consider 'headline' performance measures to
be an informative additional measure of the ongoing trading
performance of the Group. Headline results are stated before
non-headline items.
Non-headlines items consist of the results of discontinued
operations or exited / to be exited businesses, amortisation of
acquisition intangibles, acquisition related costs, any exceptional
items considered sufficiently material that they distort underlying
performance (such as reorganisation costs, impairment charges,
property rationalisation costs and other non-recurring charges),
income from previously disposed operations and net pension interest
costs.
Items excluded from headline results can evolve from one
financial year to the next depending on the nature of exceptional
items or one-off type activities. Where appropriate, for example
where a business is classified as exited / to be exited,
comparative information is restated accordingly.
Local currency
Some comparative performance measures are translated at constant
exchange rates, called 'Local currency' measures. This restates the
prior period results at a common exchange rate to the current year
in order to provide appropriate year on year movement measures
without the impact of foreign exchange movements.
In response to the Guidelines on Alternative Performance
Measures issues by the European Securities and Markets Authority
(ESMA), we have provided additional information on the APMs used by
the Group below.
Alternative performance Closest equivalent Reconciliation
measure GAAP measure to IFRS measure Definition and purpose
------------------------- ------------------------- --------------------- -----------------------------------------
Revenue measures
------------------------- ------------------------- --------------------- -----------------------------------------
Headline / non-headline Revenue See note 3 Headline revenue represent
Revenue for details the ongoing revenue of the
of non-headline Group, and are adjusted to
revenue remove non-headline revenue
items. In the current and
restated comparative periods,
this relates to the iD mobile
operations in the Republic
of Ireland, which is classified
as a 'business to be exited'
and therefore presented in
non-headline results.
------------------------- ------------------------- --------------------- -----------------------------------------
Like for Like No direct equivalent Not applicable Like-for-like revenue is calculated
(LFL) % change based on headline store and
internet revenue using constant
exchange rates. New stores
are included where they have
been open for a full financial
year both at the beginning
and end of the financial period.
Revenue from franchise stores
are excluded and closed stores
are excluded for any period
of closure during either period.
Customer support agreement,
insurance and wholesale revenue
along with revenue from Connected
World Services and other non-retail
businesses are excluded from
like-for-like calculations.
We consider that LFL revenue
represents a useful measure
of the trading performance
of our underlying and ongoing
store and online portfolio.
------------------------- ------------------------- --------------------- -----------------------------------------
Local currency Revenue compared Not applicable Reflects total revenue on
% change to prior period a constant currency and period
consolidated basis. Provides a measure
at a constant of performance excluding the
exchange rate. impact of foreign exchange
rate movements.
------------------------- ------------------------- --------------------- -----------------------------------------
Profit measures
------------------------- ------------------------- --------------------- -----------------------------------------
Headline / Non-headline Profit/(loss) See note 2 As discussed above, the Group
profit/(loss) before interest for reconciliation uses headline profit measures
before tax, EBIT and tax, profit/(loss) of headline in order to provide a useful
and profit/(loss) after interest profit measures measure of the ongoing performance
after tax and tax. to statutory of the Group. These are adjusted
profit measures from total measures to remove
'non-headline' items, the
nature of which are disclosed
above.
------------------------- ------------------------- --------------------- -----------------------------------------
EBIT Profit/(loss) No reconciling Earnings before interest and
before interest items tax (EBIT) is directly comparable
and tax to profit/(loss) before tax.
The terminology used is consistent
with that used historically
and in external communications.
------------------------- ------------------------- --------------------- -----------------------------------------
Other earnings
measures
------------------------- ------------------------- --------------------- -----------------------------------------
Headline / non-headline Net finance See notes 3 Headline net finance costs
net finance costs costs and 4 are adjusted from total finance
costs to remove non-headline
finance cost items. Non-headline
finance costs includes the
finance charge of businesses
to be exited, net pension
interest costs, finance income
from previously disposed operations
not classified as discontinued,
and other exceptional items
considered so one-off and
material that they distort
underlying finance costs of
the Group. Under IAS 19 'Employee
Benefits', the net interest
charge on defined benefit
pension schemes is calculated
based on corporate bond yield
rates at a specific date,
which, as can vary over time,
creates volatility in the
income statement and is
unrepresentative
of the actual investment gains
or losses made on the liabilities.
Therefore this item has been
removed from our headline
earnings measure in order
to remove this non-cash volatility.
------------------------- ------------------------- --------------------- -----------------------------------------
Headline / non-headline Income tax See note 3 Headline income tax expense
income tax expense expense / (credit) / (credit) represents the
/ (credit) income tax on headline earnings.
Non-headline income tax expense
/ (credit) represents the
tax on items classified as
'non-headline', either in
the current year, or the current
year effect of prior year
tax adjustments on items previously
classified as non-headline.
We consider the headline income
tax measures represent a useful
measure of the ongoing tax
charge / credit of the Group.
------------------------- ------------------------- --------------------- -----------------------------------------
Headline / Total No direct equivalent See note 3 The effective tax rate measures
effective tax provide a useful indication
rate of the tax rate of the Group.
Headline effective tax is
the rate of tax recognised
on headline earnings, and
total effective tax is the
rate of tax recognised on
total earnings.
------------------------- ------------------------- --------------------- -----------------------------------------
Earnings per share measures
----------------------------------------------------------------------------------------------------------------------
Headline basic Statutory EPS See note 6 EPS measures are presented
EPS - continuing figures to reflect the impact of non-headline
operations, headline items in order to show a headline
diluted EPS - EPS figure, which reflects
continuing operations, the headline earnings per
headline basic share of the Group. We consider
EPS - total, the headline EPS provides
headline diluted a useful measure of the ongoing
EPS - total earnings of the underlying
Group.
------------------------- --------------------- -----------------------------------------
Cash flow measures
------------------------- --------------------- -----------------------------------------
Free Cash Flow Cash generated See note 8 Free Cash Flow comprises cash
from operations generated from / (utilised
by) continuing operations
before special pension contributions,
less net finance expense,
less income tax paid and less
net capital expenditure. The
directors consider that 'Free
Cash Flow' provides additional
useful information to shareholders
in respect of cash generation
and is consistent with how
business performance is measured
internally.
------------------------- ------------------------- --------------------- -----------------------------------------
Net debt Cash and cash See note 8 Comprises cash and cash equivalents
equivalents and short term deposits, less
less loans borrowings and finance lease
and other borrowings creditors. We consider that
and finance this provides a useful measure
lease obligations. of the indebtedness of the
Group.
------------------------- ------------------------- --------------------- -----------------------------------------
Other measures
------------------------- ------------------------- --------------------- -----------------------------------------
Return on Capital No direct equivalent Not applicable Calculated on a pre-tax and
Employed (ROCE) lease adjusted basis. The
return is based on headline
EBIT, adjusted to add back
the interest component associated
with capitalising operating
lease costs. Capital employed
is based on net assets including
capitalised leases, but excluding
goodwill, cash, tax and the
defined benefit pension obligations.
The calculation is performed
on a moving annual total in
order to best match the return
on assets in a year with the
assets in use during the year
to generate the return. We
consider this a useful measure
to understand how the Group
has used the capital employed
during the period.
------------------------- ------------------------- --------------------- -----------------------------------------
Other definitions
The following definitions apply throughout this Annual Report
and Accounts unless the context otherwise requires:
Acquisition intangibles Acquired intangible assets such as customer
bases, brands and other intangible assets acquired
through a business combination capitalised
separately from goodwill. Where businesses
have grown organically rather than through
acquisition, there is no amortisation of acquired
intangibles and therefore the non-cash amortisation
charge is removed from our headline earnings
measures in order to increase comparability
between segments
---------------------------------------------------------
ADRs American Depositary Receipts
------------------------- ---------------------------------------------------------
ARPU Average revenue per user
------------------------- ---------------------------------------------------------
B2B Business to business
------------------------- ---------------------------------------------------------
Best Buy Best Buy Co., Inc. (incorporated in the United
States) and its subsidiaries and interests
in joint ventures and associates
------------------------- ---------------------------------------------------------
Best Buy Europe Best Buy Europe Distributions Limited and its
subsidiaries and interests in joint ventures
and associates (incorporated in England & Wales)
------------------------- ---------------------------------------------------------
Board The Board of directors of the Company
------------------------- ---------------------------------------------------------
Businesses to be Businesses exited or to be exited are those
exited which the Group has exited or committed to
or commenced to exit through disposal or closure
but do not meet the definition of discontinued
operations as stipulated by IFRS and are material
to the results or operations of the Group.
Comparative results in the statement of comprehensive
income and the notes are restated accordingly
for the impact of businesses exited or to be
exited.
------------------------- ---------------------------------------------------------
Carphone, Carphone The Company or Group prior to the Merger on
Warehouse or Carphone 6 August 2014
Group
------------------------- ---------------------------------------------------------
CGU Cash Generating Unit
------------------------- ---------------------------------------------------------
Company or the Company Dixons Carphone plc (incorporated in England
& Wales under the Act, with registered number
07105905) , whose registered office is at 1
Portal Way, London W3 6RS
------------------------- ---------------------------------------------------------
CPW The continuing business of the Carphone Group
------------------------- ---------------------------------------------------------
CPW Europe Best Buy Europe's core continuing operations
------------------------- ---------------------------------------------------------
CPW Europe Acquisition The Company's acquisition of Best Buy's interest
in CPW Europe, which completed on 26 June 2013
------------------------- ---------------------------------------------------------
CRM Customer Relationship Management
------------------------- ---------------------------------------------------------
CWS The Connected World Services division of the
Company
------------------------- ---------------------------------------------------------
Dixons or Dixons Dixons Retail plc and its subsidiary companies
Retail
------------------------- ---------------------------------------------------------
Dixons Carphone or The Company, its subsidiaries, interests in
Group joint ventures and other investments
------------------------- ---------------------------------------------------------
Dixons Retail Merger The all share merger of Dixons Retail plc and
or Merger Carphone Warehouse plc which occurred on 6
August 2014
------------------------- ---------------------------------------------------------
EBT Employee benefit trust
------------------------- ---------------------------------------------------------
ESOT Employee share ownership trust
------------------------- ---------------------------------------------------------
HMRC Her Majesty's Revenue and Customs
------------------------- ---------------------------------------------------------
honeybee honeybee was our proprietary IT software, developed
in-house initially to serve our mobile phone
customers. It is a unique omni-channel, multi-industry
software that simplified the delivery and management
of complex digital customer journeys
------------------------- ---------------------------------------------------------
IFRS International Financial Reporting Standards
as adopted by the European Union
------------------------- ---------------------------------------------------------
Market position Ranking against competitors in the electrical
and mobile retail market, measured by market
share. Market share is measured for each of
the Group's markets by comparing data for revenue
or volume of units sold relative to similar
metrics for competitors in the same market
------------------------- ---------------------------------------------------------
MNO Mobile network operator
------------------------- ---------------------------------------------------------
MVNO Mobile virtual network operator
------------------------- ---------------------------------------------------------
New CPW Dixons Carphone Holdings Limited, previously
called New CPW Limited (incorporated in England
& Wales)
------------------------- ---------------------------------------------------------
NPS Net promoter score, a rating used by the Group
to measure customers' likelihood to recommend
its operations
------------------------- ---------------------------------------------------------
Old Carphone Warehouse TalkTalk Telecom Holdings Limited (formerly
'The Carphone Warehouse Group PLC') (incorporated
in England & Wales)
------------------------- ---------------------------------------------------------
Peak / post peak Peak refers to the 10 week trading period ending
on 5 January 2019 as reported in the Group's
Christmas Trading statement on 22 January 2019.
Post peak refers to the trading period from
6th January 2019 to the Group's year-end on
27 April 2019
----------------------------------------------------
RCF Revolving credit facility
------------------------------- ----------------------------------------------------
SIMO Sales of SIM-only contracts, without attached
handset
------------------------------- ----------------------------------------------------
Sharesave or SAYE Save as you earn share scheme
------------------------------- ----------------------------------------------------
Sprint JV The 50% investment previously held by the Group
in Sprint Connect LLC, a distribution joint
venture held with Sprint LLC in the USA
------------------------------- ----------------------------------------------------
Special pension contributions Represent contributions made under the schedule
of contributions agreed with the scheme trustees
following the 2016 triennial review
------------------------------- ----------------------------------------------------
SWAS Stores-within-a-store
------------------------------- ----------------------------------------------------
TalkTalk or TalkTalk TalkTalk Telecom Group PLC and its subsidiaries
Group and other investments
------------------------------- ----------------------------------------------------
TSR Total shareholder return
------------------------------- ----------------------------------------------------
UK GAAP United Kingdom Accounting Standards and applicable
law
------------------------------- ----------------------------------------------------
Virgin Mobile France Omer Telecom Limited (incorporated in England
& Wales) and its subsidiaries, operating an
MVNO in France as a joint venture between the
Company, Bluebottle UK Limited and Financom
S.A.S.
------------------------------- ----------------------------------------------------
WAEP Weighted average exercise price
------------------------------- ----------------------------------------------------
Responsibility Statement
The 2018/19 Annual Report and Accounts which will be issued in
July 2019, contains a responsibility statement in compliance with
DTR 4.1.12 of the Listing Rules which sets out that as at the date
of approval of the Annual Report and Accounts on 19 June 2019, the
directors confirm to the best of their knowledge:
-- the Group and unconsolidated Company financial statements,
prepared in accordance with the applicable set of accounting
standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Group and Company,
respectively; and
-- the performance review contained in the Annual Report and
Accounts includes a fair review of the development and performance
of the business and the position of the Group together with a
description of the principal risks and uncertainties that they
face.
At the date of this statement, the directors are those listed in
the Group's 2017/18 Annual Report and Accounts with the exception
of the following appointments and resignations:
Appointments Resignations
-------------------------------------- ----------------------------------
Jock Lennox (resigned 31 December
Jonny Mason (appointed 13 August 2018) 2018)
Eileen Burbidge (appointed 1 January Humphrey Singer (resigned 21 June
2019) 2018)
-------------------------------------- ----------------------------------
The financial statements were approved by the directors on 19
June 2019 and signed on their behalf by:
Alex Baldock Jonny Mason
Group Chief Executive Group Chief Financial Officer
Number of stores (unaudited)
27 April 28 April
2019 2018
------------------------- -------------------------
Own Franchise Own Franchise
stores stores Total stores stores Total
-------------------- ------- --------- ----- ------- --------- -----
UK electricals 314 0 314 322 - 322
UK Dixons Travel 29 0 29 28 - 28
Ireland electricals 18 0 18 18 - 18
UK mobile 560 0 560 662 - 662
Ireland mobile 70 0 70 73 - 73
-------------------- ------- --------- -----
UK & Ireland 991 0 991 1,103 - 1,103
Norway 80 67 147 83 64 147
Sweden 110 62 172 111 55 166
Denmark 38 0 38 37 - 37
Finland 22 19 41 20 18 38
Other Nordics 0 13 13 - 13 13
-------------------- ------- --------- ----- ------- --------- -----
Nordics 250 161 411 251 150 401
Greece 70 25 95 69 26 95
Total 1,311 186 1,497 1,423 176 1,599
-------------------- ------- --------- ----- ------- --------- -----
Selling space '000 sq ft (unaudited)
27 April 28 April
2019 2018
-------------------------- --------------------------
Own Franchise Own Franchise
stores stores Total stores stores Total
-------------------- ------- --------- ------ ------- --------- ------
UK electricals 5,613 0 5,613 5,659 - 5,659
UK Dixons Travel 42 0 42 36 - 36
Ireland electricals 204 0 204 206 - 206
UK mobile 493 0 493 567 - 567
Ireland mobile 44 0 44 43 - 43
-------------------- ------- --------- ------
UK & Ireland 6,396 0 6,396 6,511 - 6,511
Norway 1,100 630 1,730 1,145 607 1,752
Sweden 1,260 345 1,605 1,294 337 1,631
Denmark 691 0 691 653 - 653
Finland 537 163 700 536 153 689
Other Nordics 0 90 90 - 87 87
-------------------- ------- --------- ------ ------- --------- ------
Nordics 3,588 1,228 4,816 3,628 1,184 4,812
Greece 886 101 987 881 108 989
Total 10,870 1,329 12,199 11,020 1,292 12,312
-------------------- ------- --------- ------ ------- --------- ------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR KMGZVKGZGLZG
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