WICKES GROUP PLC: Interim results 2021 -5-
Interest on lease liabilities (15.7) (16.3) (32.0) Income taxes paid (6.5) (9.0) (17.3) Net cash inflow from operating activities 121.1 162.3 211.2 Cash flows from investing activities Proceeds on disposal of property, plant and equipment - - 0.2 Development of computer software (2.8) (0.6) (2.9) Purchases of property, plant and equipment (5.9) (7.7) (17.2) Net repayments from / (cash advances to) Travis Perkins group 123.5 (100.0) (134.4) Net cash inflow / (outflow) from investing activities 114.8 (108.3) (154.3) Cash flows from financing activities Repayment of lease liabilities (38.2) (37.3) (75.8) Net cash outflow from financing activities (38.2) (37.3) (75.8) Net increase / (decrease) in cash and cash equivalents 197.7 16.7 (18.9) Cash and cash equivalents at the beginning of the period 6.5 25.4 25.4 Cash and cash equivalents at the end of the period 204.2 42.1 6.5
* see Note 1 to the interim financial statements Notes to the interim financial statements 1. General information and accounting principles
The condensed consolidated interim financial statements (“interim financial statements”) have been prepared on the basis of historical cost, except that certain financial instruments, including derivative instruments, are measured at their fair value. The interim financial statements include the accounts of the Company and all of its subsidiaries (“the Group”). Preparation basis
Financial information for the 26 weeks ended June 26, 2021 and June 27, 2020 is unaudited. The information of June 26, 2021 has been reviewed by KPMG LLP, the Group’s statutory auditor, and a copy of their review report appears on pages 27 and 28 of this interim report.
The comparative figures for the 52 weeks ended December 26, 2020 do not constitute statutory accounts for this fiscal year. The statutory accounts of the company have been prepared in accordance with the financial reporting standard (“FRS 102”) issued by the Financial Reporting Council and the Companies Act of 2006 and have been reported by the auditor of the company and given to the registrar of companies. The auditor’s report on these accounts (i) was unqualified, (ii) made no reference to matters to which the auditor drew attention with emphasis without qualifying the report, and (iii) did not contain any declarations under section 498 (2) or (3) of the Companies Act 2006. The Company was exempted under section 400 of the Companies Act 2006 from the obligation to prepare the group’s financial statements.
The Company has prepared non-statutory consolidated financial statements for the 52 week period ended December 26, 2020, in accordance with international accounting standards in accordance with the requirements of the Companies Act 2006, which was presented in the Prospectus of Wickes Group plc in March 2021. The Group adopted IFRS for the first time in its preparation of the non-statutory consolidated financial statements which were presented in the Prospectus of Wickes Group plc in March 2021.
The unaudited interim financial statements for the 26 weeks ended June 26, 2021 have been prepared in accordance with IAS 34 – Interim Financial Reporting, adopted in accordance with Regulation (EC) No 1606/2002 as applicable in the ‘European Union.
The Group’s annual financial statements for the 53 weeks ending January 1, 2022 will be prepared in accordance with international financial reporting standards adopted in accordance with Regulation (EC) No 1606/2002 as it applies in the European Union and in accordance with international accounting standards. in accordance with the requirements of the Companies Act 2006. As required by the disclosure and transparency rules of the Financial Conduct Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation which have been applied in the preparation of the published financial statements of the Company. Non-statutory consolidated financial statements for the 52 weeks ended December 26, 2020. The non-statutory financial statements for fiscal year 2020 as disclosed in the Company’s prospectus are available on the Wickes Group plc website (www.wickesplc.co .uk).
Summary of the impact of the Group’s restructuring and the listing of shares on the London Stock Exchange
On April 28, 2021, the Group, which includes the Company and its subsidiaries (Wickes Group Holdings Limited, Wickes Building Supplies Limited, Wickes Finance Limited and Wickes Holdings Limited) listed its shares on the London Stock Exchange and was admitted to the segment. premium from the official list of the Financial Conduct Authority.
Prior to their admission, the aforementioned entities undertook a restructuring in order to put in place the current structure of the Group.
On March 17, 2020, the Company acquired Wickes Group Holdings Limited by way of a share exchange, and Wickes Group Holdings Limited acquired Wickes Building Supplies Limited and Wickes Finance Limited by way of a share exchange (“the Capital Reorganization “), in order to set up a new parent company and an intermediate parent company for Wickes Building Supplies Limited and Wickes Finance Limited, which include the assets and liabilities used in the management and operation of the home improvement business by Wickes.
The reorganization of capital does not fall within the scope of IFRS 3 “Business combinations” and has been recognized in accordance with previous accounting principles using the carrying amounts of assets and liabilities included in the financial statements of the companies. acquired entities. This policy reflects the economic substance of the transactions and means that, although the Capital Reorganization will not be effective until March 17, 2020, the consolidated financial statements have been prepared as if the Group had existed throughout the periods presented. Notes to the interim financial statements 1. General information and accounting methods (continued)
Share capital issued as consideration is treated as if it had existed since the first period presented. This presentation of the share capital results in the constitution of other reserves in the consolidated balance sheet. Other reserves represent the difference between the book values of the assets and liabilities of the parties to the Capital Reorganization, which do not have to be adjusted to fair value upon acquisition, and the nominal value and premium of the shares issued. .
On March 18, 2020, following the capital reorganization, the Company carried out a capital reduction and the entire share premium account balance of £ 862.3 million was reduced and credited to retained earnings.
Prior to the date of the spin-off and in order to establish an appropriate capital structure for the Independent Group, cash of £ 123.5 million was received from Travis Perkins plc, via the repayment of existing intercompany receivables. The remaining intercompany receivables were settled through a cashless dividend to Travis Perkins plc (£ 30m) and a cashless transaction whereby Travis Perkins plc settled the 2020 rate reimbursement on behalf of the Group ( £ 32.6 million).
The interim financial statements have been prepared on a going concern basis as the Directors deem appropriate for the following reasons.
Although the rapid evolution of economic conditions caused by the Covid-19 affected the Group’s DIFM (Do-it-for-me) sales, the Group has remained resilient and sales have regained a strong position since the reopening of the DIFM in store showrooms, producing strong treasury and trading results.
The Group manages its day-to-day working capital requirements through cash generated by its operating activities and income received from Travis Perkins during the separation of the Group from the Travis Perkins Group on April 28, 2021. In March 2021, the Group a negotiated a revolving credit facility. of £ 80 million with associated covenants. At the date of approval of these interim financial statements, the revolving credit facility is still unused.
The Directors have prepared cash flow forecasts, including severe but plausible downside scenarios, for a period of at least 12 months from the date of approval of these interim financial statements. These forecasts indicate that the Group is able to operate within its current facilities and to respect its banking covenants. The Directors, however, remain attentive to the continued impact of the Covid and are aware that the Group is exposed to a certain number of risks and uncertainties, which could affect the Group’s ability to achieve its forecasts.
The Directors believe that the Group has the flexibility to react to changing market conditions and is well positioned to successfully manage its business risks. The Directors have undertaken a detailed going concern assessment which involves assessing the current and projected financial performance and position of the Group, including current assets and liabilities, debt maturity profile, future commitments and forecast cash flows. The tested downside scenarios, describing the impact of severe but plausible adverse scenarios based on a severe recession and weak housing market, show that there is sufficient leeway for liquidity and compliance with restrictive covenants for au less the next 12 months from the date of approval of these interim financial statements.
Therefore, the directors are confident that the Group will have sufficient funds to continue to meet its obligations as they fall due for at least 12 months from the date of approval of the interim financial statements and have therefore prepared the interim financial statements. on a going concern basis. based.
Restatement of the previous year
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