JD Sports Fashion Plc Final Results -3-
15 April 2014 - 4:00PM
UK Regulatory
Exceptional items increased significantly in the year to GBP19.1
million (2013: GBP5.3 million) principally due to a non-cash charge
of GBP11.8m to write off goodwill relating to the Bank business.
After allowing for exceptional items, Group operating profit
increased by GBP3.1 million to GBP59.1 million (2013: GBP56.0
million). The exceptional items comprised:
2014 2013
GBPm GBPm
Loss on disposal of fixed assets 1.0 0.2
Impairment of fixed assets in loss making
stores 1.9 0.9
Onerous lease provisions 1.1 1.3
Total property related exceptional costs 4.0 2.4
----- ------
Completion of new Kingsway warehouse
move (1) 0.6 0.2
Business restructurings (2) 2.7 1.1
Total reorganisation and restructuring
costs 3.3 1.3
----- ------
Impairment of intangible assets (3) 11.8 2.3
Profit on disposal of Canterbury (4) - (0.7)
Total other exceptional charges 11.8 1.6
----- ------
Total exceptional charge 19.1 5.3
===== ======
(1) Reorganisation of the warehouse operations consisting of
provisions for onerous property leases, redundancy costs and
dilapidations at the vacant premises.
(2) Relates to the restructuring of the head office and
warehouse operations of the Blacks, Champion and Kooga businesses.
The prior period also includes costs relating to the closure of the
Canterbury North America LLC and Canterbury European Fashionwear
operations following the decision to wind down the separate
businesses.
(3) Relates to the impairment in both periods of the goodwill
arising on the acquisition of Bank.
(4) Profit on the disposal of the Canterbury group of businesses
to Pentland Group plc in September 2012 (see note 5).
Working capital, financing and amended bank facilities
Ongoing acquisition activity and further substantial investments
in both the retail fascias and operational infrastructure offset
the strong cash generation from trading in the year with net cash
at the year end almost unchanged at GBP45.3 million (2013: GBP45.6
million).
On 10 July 2013, the Group amended and extended its syndicated
committed GBP75,000,000 bank facility which previously expired on
11 October 2015. The facility has been amended by increasing the
syndicated committed facility by GBP80,000,000 to GBP155,000,000.
The expiry date has also been extended by two years and so the
amended facility now expires on 11 October 2017. This enhanced
facility enables us to continue to make acquisitions when
opportunities occur whilst maintaining current levels of investment
in the retail property portfolio.
Gross capital expenditure (excluding disposal costs) increased
by GBP4.7 million to GBP48.2 million (2013: GBP43.5 million). Our
commitment to delivering the best possible experience to our
customers means that investment in our retail fascias, both in
terms of taking new stores where appropriate and refurbishing
existing space, remains substantial. A total of GBP27.9 million was
invested in our retail fascias during the year (2013: GBP27.2
million). Elsewhere, our continuing investment in the Oracle
project increased to GBP5.1 million in the year (2013: GBP2.7
million). Gross capital expenditure included GBP4.6 million (2013:
GBPnil) in relation to bespoke software development which is
classified within Intangible Assets.
Ongoing confidence in the potential for JD internationally
combined with ongoing investment in our other fascias, investment
in the new core Oracle ERP system and further works to increase our
capabilities at Kingsway means that overall capital expenditure is
likely to increase further this year.
Working capital remains well controlled with suppliers
continuing to be paid to agreed terms and settlement discounts
taken whenever due.
Store Portfolio
During the period, store numbers (excluding trading websites)
have moved as follows:
Sports Fascias
JD JD France JD JD JD
(No. UK & ROI (2) Spain Netherlands Germany Size Chausport Sprinter Total
Stores) (1) (3)
Start of
period 349 10 5 - - 24 75 53 516
New stores 15 7 3 1 - 1 1 13 41
Acquired - - - 14 10 - - - 24
Closures (16) - - - - - (1) (1) (18)
---------- ---------- ------- ------------- --------- ------- ------------ ----------- --------
End of
period 348 17 8 15 10 25 75 65 563
---------- ---------- ------- ------------- --------- ------- ------------ ----------- --------
(000 Sq
Ft)
Start of
period 1,255 24 14 - - 31 84 643 2,051
New stores 60 18 7 3 - 3 1 116 208
Acquired - 18 8 - - - 26
Closures (41) - - - - - (1) (14) (56)
End of
period 1,274 42 21 21 8 34 84 745 2,229
---------- ---------- ------- ------------- --------- ------- ------------ ----------- --------
1. Includes Champion stores which are now serviced and managed
by the UK team but excludes Size store in Dublin
2. Excludes the Size store in Les Halles, Paris
3. Being all stores in all territories which are managed by one team
Fashion Fascias
(No. Stores) Bank Scotts Premium Ark Cloggs Total
Start of
period 85 31 16 - - 132
New stores 8 6 3 - 1 18
Acquired - - - 9 - 9
Closures (4) (4) (2) - - (10)
----- ------- -------- ------ ------- ---------
End of period 89 33 17 9 1 149
----- ------- -------- ------ ------- ---------
(000 Sq
Ft)
Start of
period 252 65 42 - - 359
New stores 28 9 9 - 1 47
Acquired - - - 25 - 25
Closures (11) (9) (5) - - (25)
End of period 269 65 46 25 1 406
----- ------- -------- ------ ------- ---------
Outdoor Fascias
(No. Stores) Blacks Millets Tiso Total
Start of
period 85 89 - 174
New stores 4 7 - 11
Acquired - - 17 17
Closures (13) (16) - (29)
------- -------- ----- ------
End of period 76 80 17 173
------- -------- ----- ------
(000 Sq
Ft)
Start of
period 324 160 - 484
New stores 13 14 - 27
Acquired - - 101 101
Closures (50) (31) - (81)
End of period 287 143 101 531
------- -------- ----- ------
Dividends and Earnings per Share
The Board proposes paying a final dividend of 22.65p (2013:
22.00p) bringing the total dividend payable for the year to 27.10p
(2013: 26.30p) per ordinary share. The proposed final dividend will
be paid on 4 August 2014 to all shareholders on the register at 9
May 2014. The total dividends payable for the year have therefore
increased by a further 3% with a cumulative growth since 2009 in
excess of 125%. Future dividend growth will be limited with cash
retained as we look to drive the continuing overseas growth of the
Sports fascias.
The adjusted earnings per ordinary share before exceptional
items were 117.12p (2013: 88.51p).
The basic earnings per ordinary share were 82.52p (2013:
79.71p).
Board Effectiveness
As Executive Chairman, I am responsible for the leadership of
the Board and ensuring its effectiveness in all aspects of its
role. The Board is then responsible for the Group's strategic
development, review of performance against the business objectives,
overseeing risk and maintaining effective corporate governance
including health and safety, environmental, social and ethical
matters.
People
The exceptional performance in Sport is a testament to the
skills, energy, experience and professionalism of everyone involved
in these businesses. JD, in particular, is a world class retail
fascia and continues to set higher standards that we challenge our
other businesses to match.
Jd Sports Fashion (LSE:JD.)
Historical Stock Chart
From Jun 2024 to Jul 2024
Jd Sports Fashion (LSE:JD.)
Historical Stock Chart
From Jul 2023 to Jul 2024