Annual Report & Accounts 2016
CONTENTS
STRATEGIC REPORT
02 Highlights
08 Sports Direct at a glance
15 Chairman’s Statement
16 Our Business
18 Chief Execuve’s report and business review
18 Key performance indicators
24 Financial review
28 Corporate social responsibility report
36 Risks and Uncertaines relang to the Group’s
business
41 Viability Statement
GOVERNANCE
42 The Board
44 Directors’ report
47 Corporate governance report
56 Directors’ remuneraon report
63 Directors’ responsibilies statement
FINANCIAL STATEMENTS
64 Independent auditor’s report to the members of
Sports Direct Internaonal plc
69 Consolidated income statement
70 Consolidated statement of comprehensive income
71 Consolidated balance sheet
72 Consolidated cash ow statement
73 Consolidated statement of changes in equity
74 Notes to the Financial Statements
114 Independent auditor’s report to the
members of Sports Direct Internaonal plc
115 Company balance sheet
116 Company statement of changes in equity
116 Notes to the Company Financial Statements
122 Consolidated ve year record
SHAREHOLDER INFORMATION
123 Company directory
124 Shareholder informaon
The Sports Direct Internaonal plc website is available
on mulple plaorms including mobile devices.
Go online at: www.sportsdirectplc.com &
www.sportsdirect.com
Sports Direct, Group or the Company
1
2
April 16 £2,904.3m
April 16 £381.4m
April 16 £275.2m
April 16 35.5p
•
•
•
•
•
•
•
FINANCIAL
HIGHLIGHTS
Dave Forsey
GROUP REVENUE
UNDERLYING EBITDA
(1)
UNDERLYING PBT
(1)
UNDERLYING EPS
(1)
3
ELEVATION AND ENHANCEMENT OF THE SPORTSDIRECT.COM WEBSITE
OPERATIONAL AND
BRAND HIGHLIGHTS
CONTINUED ROLL OUT OF LARGE FORMAT
‘KEY LOCATION DOORS’
COMPLETED THE ACQUISITION OF REMAINING
50% OF THE HEATONS IRISH BUSINESS
LATEST PHASE OF ONGOING SHIREBROOK
CAMPUS DEVELOPMENT NOW COMPLETE
USA PRO PARTNER WITH LITTLE MIX
4
UNRIVALLED RANGE
OF LEADING BRANDS
5
6
UNRIVALLED RANGE
OF LEADING BRANDS
7
KARRIMOR
NO FEAR
LONSDALE
SLAZENGER
USA PRO
EVERLAST
8
SPORTS DIRECT
AT A GLANCE
BRANDS
PREMIUM
LIFESTYLE
SPORTS
RETAIL
Fascias
Fascias
Sports
Core
Fascias
Core
Fascias
9
STORE COVERAGE
Sports Direct UK & ROI
221
233 83
10
SPORTS RETAIL
86% Total Revenue £2,491.6m
11
SPORTS RETAIL
SPECIALIST SPORTS
12
BRANDS
8% Total Revenue £231.5m
Rebecca
ADLINGTON
4 time Olympic Medalist
13
SPORTS & LEISURE
FASHION & LIFESTYLE
14
PREMIUM LIFESTYLE
6% Total Revenue £181.2m
15
CHAIRMAN’S
STATEMENT
OVERVIEW
The Group’s nancial performance has been disappoinng in what has been a tough year for trading and external aenon on the business.
With this performance, it is with regret that I note that we did not achieve the FY16 EBITDA target of £420m in relaon to the Group’s
2015 Share Scheme for eligible employees. The Board is currently working on developing a new incenve scheme to replace this, and
ahead of this I would like to thank all of our people for their connued hard work and commitment during what has been a dicult me.
OUR VALUES AND PEOPLE
Sports Direct has been built on the experse and passion of our people from day one. The Group’s values are: operang as one team;
planning for success; striving to lead and energise others; doing things the right way; creang a good impression; wowing our customers;
and, delivering results. Our values and the development of our people have underpinned our high performance and high reward culture,
which has driven the Group’s success since it was founded in 1982.
During the year the Group received serious cricism regarding some of its workplace pracces, parcularly in relaon to its agency
workers in the warehouse of the Group’s Shirebrook campus, which we have taken very seriously. The Board made it a priority to
undertake a review of what was raised and from the preliminary ndings a number of measures were put in place to address the concerns.
These included an increase in pay for the Group’s directly employed UK employees and directly engaged casual workers from being on the
Naonal Minimum Wage to being above the Naonal Minimum Wage from 1 January 2016. This was implemented without any reducon
in exisng benets.
Since the end of FY16, the Group’s Execuve Deputy Chairman, Mike Ashley, has given evidence to the Business, Innovaon and Skills
Select Commiee regarding the asserons made in relaon to the Company’s workplace pracces. The Board has set in moon a review of
the specic concerns.
Addionally following year end, the Board was informed of the decision of the Chief Execuve, Dave Forsey, to forego the vesng of 1m
shares due to him in September 2017 under the Execuve Share Scheme. At the me of the announcement this represented a value of
approximately £3.6m. The Board believes that this decision is very much reecve of the Execuve Directors sharing risk with shareholders
and taking responsibility for results that fell short of their expectaon.
STRATEGIC ACQUISITIONS AND INVESTMENTS
The Board remains commied to our organic and inorganic growth strategy, and will connue to maintain an appete for strategic
opportunies alongside the work being conducted on the review of the Group’s people strategy.
The Group’s acquision and investments strategy, parameters and decision-making is performed by the Board, and delegated at a certain
materiality level to be performed by the Execuve Directors within the agreed strategy. The Group is focused on opportunies that will
deliver extensions or enhancements to our customer oering, broaden or enhance our commercial relaonships, broaden or enhance
our retail channels, selecvely grow our market share, further diversify our operaons, further expand our gross margin, and/or deliver
operaonal eciencies. Given the breadth of our business, our strategic benets can be varied and extensive, and the Group employs an
array of mechanisms to facilitate strategic discussions with potenal partners towards varied strategic goals.
This year we were pleased to announce the acquision of the remainder of the Heatons business in Northern Ireland and the Republic of
Ireland, which will build upon the Group’s exisng relaonship with Heatons and strengthen our presence in one of the fastest growing
economies in Europe. We also announced the extension of our strategic investment interest in Debenhams Retail plc (Debenhams).
Through this investment interest we have developed a commercial relaonship with Debenhams and currently have nine concessions
throughout Debenhams stores, which provide mutual benets for both pares.
BOARD PRIORITIES
In FY16, our priories have been focused on leadership; remuneraon for performance and enhancing the working condions of our
people as I have discussed; and, working with the Execuve Directors to develop strategic priories and plans for the Group.
In terms of the Board’s focus on leadership, our search for independent directors to add complementary experse and further diversify the
board is ongoing, and forms part of the Board’s succession plans.
We connue to be very appreciave of the work and eorts of our Acng Chief Financial Ocer, Ma Pearson. Ma is sll acng in this
role and the Board expects to be able to make a decision on his role in due course.
POTENTIAL SHARE BUYBACK
Further to the authority to repurchase shares granted by the Company’s shareholders at its 2015 Annual General Meeng (AGM), and in
light of current volality in equity markets, the Company announced on 7 July 2016 that it is considering commencing a share buyback, the
purpose of which would be to reduce its share capital.
MIKE ASHLEY’S SHAREHOLDING
In response to repeated press speculaon about his intenons with regards to his shareholding in Sports Direct, Mike Ashley has conrmed
to the Board that he has no current intenon of taking the Company private, and has indicated his willingness for the Company to conrm
this statement publicly.
DIVIDEND
The Board has decided not to propose a dividend in relaon to FY16. The Board remains of the opinion that it is in the best interests of the
Group and its shareholders to preserve nancial exibility, facilitang future investments and other growth opportunies. The payment of
dividends remains under review.
Dr. Keith Hellawell. QPM
Non-Execuve Chairman
7 July 2016
16
OUR
BUSINESS
BUSINESS MODEL
OUR OFFER TO CUSTOMERS
OUR FASCIAS AND RETAIL CHANNELS
OUR SHIREBROOK CAMPUS
OUR GROUP BRANDS
17
OUR CENTRALISED COMMERCIAL AND SUPPORT FUNCTIONS
OUR PEOPLE
OUR STRATEGY
1. IDENTIFY
3. DEVELOP
4. PROMOTE
2. INVEST
ACHIEVE
18
CHIEF EXECUTIVE’S REPORT
AND BUSINESS REVIEW
KEY PERFORMANCE INDICATORS
52 weeks ended
24 April 2016
FINANCIAL KPIs
Group revenue
s
733
PROGRESS ON OUR STRATEGIC INITIATIVES
19
Developing our stores and in-store customer experience
Extending the Fitness Division
20
PERFORMANCE
OVERVIEW
REVIEW BY BUSINESS SEGMENT
RETAIL REVENUE:
52 weeks ended
24 April 2016 (£’m)
Revenue
Total Retail Revenue 2,672.8 2,606.2
(1,485.7) (1,456.6)
1,187.1 1,149.6
Gross Margin %
Total Retail Gross Margin % 44.4 44.1
CHIEF EXECUTIVE’S REPORT
AND BUSINESS REVIEW
21
BRANDS REVENUE:
24 April 2016 (£’m)
Total Brands Revenue 231.5 226.4
SPORTS RETAIL
SPORTS STORE PORTFOLIO
24 April 2016 26 April 2015
393 381
Northern
27
13
12
17 17
France 7
7
Cyprus
13
3 3
2 2
Spain 2 1
1
Total 733 661
Opened 39
(3)
c.8.25m c.7.75m
22
PREMIUM LIFESTYLE
24 April 2016 26 April 2015
USC
Cruise
9
9 8
Other 9
83
BRANDS
CONTRACTS ESSENTIAL TO THE BUSINESS OF THE GROUP
ENVIRONMENTAL MATTERS
RESEARCH AND DEVELOPMENT
CHIEF EXECUTIVE’S REPORT
AND BUSINESS REVIEW
23
OUTLOOK
Dave Forsey
24
SUMMARY OF RESULTS
24 April 2016 (£’m)
Revenue
EBITDA AND PROFIT BEFORE TAX
EBITDA (£’m) PBT (£’m)
Reported
Underlying
24 April 2016 (£’m)
FINANCIAL
REVIEW
25
FOREIGN EXCHANGE
FINANCE COSTS
24 April 2016 (£’m)
EXCEPTIONAL ITEMS
24 April 2016 (£’m)
26
TAXATION
EARNINGS
24 April 2016
(pence per share)
26 April 2015
(pence per share)
Change (%)
24 April 2016 (£’m)
DIVIDENDS
CAPITAL EXPENDITURE
ACQUISITIONS
STRATEGIC INVESTMENTS
FINANCIAL
REVIEW
27
CASH FLOW AND NET DEBT
24 April 2016 (£’m)
CASH FLOW
24 April 2016 (£’m)
PENSIONS
28
Corporate Responsibility is central to our vision to be a leading sports and lifestyle retailer internaonally.
Our established Corporate Responsibility framework focuses on ve key areas: People, Health and Safety, the
Environment, Customers and the Community. Sports Direct has developed Key Performance Indicators (KPIs) to
ensure we deliver on our commitments. These KPIs are discussed further in this Corporate Social Responsibility Report
and in the Chief Execuve’s Report and Business Review and the Financial Review, and are based solely on our UK
operaons, unless expressly stated.
OUR PEOPLE
The Group employs and engages over 29,000 people, across various sectors, from Sport, Fashion, Lifestyle, Fitness and Brands, and our
people are what makes the Sports Direct Group such a success.
The Board is commied to ensuring that all of our people have the opportunity to be inspired, smulated, movated, and empowered.
We believe that it takes every single team member to make a dierence and drive performance, and we are commied to the development
and rewarding of our people to enable the Group to achieve its future growth plans.
The Group’s approach to our people is focused on connual development to nurture our people towards their full potenal and to enable
our teams to promote from within wherever possible, rewarding our employees and retaining our people and investment in talent.
The Group has several policies and systems in place to ensure sta welfare is monitored and maintained, as illustrated in the diagram below.
In support of these policies and systems, communicaon with our people occurs via Group news emails, leers and the intranet, as well
as through briengs by direct managers and through the Group’s training programmes, which have been outlined in further detail in the
following secons.
EQUAL OPPORTUNITY
& DIVERSITY POLICY
STAFF FORUM
TAILORED EMPLOYEE
HANDBOOK
RIGHT TO A
TRADE UNION
ATTRACTION AND RETENTION
As a Group, we like to train and retain our sta to ensure that valuable knowledge remains within the Group. The Group uses a number
of incenves to retain our people, including regularly holding employee appraisals, to idenfy the areas where we, as an employer, can
improve. We nd that regular appraisals also highlight the knowledge gaps which our employees have, and allows us to oer sta training
which will develop their understanding.
During FY16 22.0% of our UK salaried sta le the Group, an increase from 18.7% in FY15. We esmate that this gure will reduce during
the remaining 2011 Share Scheme vesng period.
Our Share Schemes are ulised to aract, movate and incenvise our people and potenal future employees. We have found that creang
a shared goal has improved employee sasfacon levels.
Store Manager stability with Sports Direct is currently sing at 80.4%, this is a decrease of 12% on the FY15 gure. Assistant Manager and
Footwear Manager stability currently sit at 79.8% and 83.5% respecvely, which is a decrease of 6% and 7% across the posions.
SALARIED STAFF TURNOVER SINCE FY11
FY13
17%
FY14
16%
FY15
19%
FY16
19%
22%
17%
FY12
FY11
CORPORATE SOCIAL
RESPONSIBILITY REPORT
29
PERFORMANCE AND REWARD
£215m - Achieved
£250m - Achieved
£260m - Achieved
£300m - Achieved
DIVERSITY
A BREAKDOWN OF GENDER DIVERSITY:
Male Female
Directors 1
22
TALENT AND CAPABILITY DEVELOPMENT
KEY HIGHLIGHTS:
TRAINING AND DEVELOPMENT PROGRAMMES
30
•
•
•
•
•
•
•
•
CUSTOMER SERVICE TRAINING
•
•
•
•
•
E-Learning
CORPORATE SOCIAL
RESPONSIBILITY REPORT
31
“HOME GROWN” TALENT MANAGEMENT PROGRAMME
BRAND AND PRODUCT KNOWLEDGE
Brand Training
Footwear Masterclass
MANAGEMENT TRAINING
32
Management Re-Fresh Programme
ANNUAL CONFERENCE
INTEGRATION OF THE GROUP’S ACQUISITIONS
HEALTH AND SAFETY
MODERN SLAVERY ACT 2015
CUSTOMERS
CORPORATE SOCIAL
RESPONSIBILITY REPORT
33
COMMUNITY
Supply Chain
Community Involvement
CHARITY
Willow Tree Family Farm:
Helping The Homeless:
Karrimor:
Dunlop:
34
Lonsdale:
Everlast:
Sondico:
ENVIRONMENT
Baseline year (2)
Boundary summary
Consistency with Financial
Statements
Assessment methodology
Materiality threshold
CORPORATE SOCIAL
RESPONSIBILITY REPORT
35
CO
Year 2016
Scope 1 CO
Scope 2 CO
CO
CO
WASTE REDUCTION
THIS YEAR WE RECYCLED:
Dave Forsey
36
INTERNAL CONTROLS AND RISK MANAGEMENT
THE GROUP’S APPROACH TO RISK
1. RISKS ARE IDENTIFIED
2. RISKS ARE EVALUATED
3. ACTION IS TAKEN TO MANAGE THE RISKS
4. PRACTICES ARE REVIEWED AND MONITORED TO LIMIT THE RISK
RISK POLICIES AND PROCEDURES
KEY RISKS
Control Environment
•
•
•
RISKS AND UNCERTAINTIES
RELATING TO THE GROUP’S BUSINESS
M
O
N
I
T
O
R
E
V
A
L
U
A
T
E
I
D
E
N
T
I
F
Y
M
A
N
A
G
E
37
CONTROL PROCEDURES
FINANCIAL REPORTING PROCESS
PRINCIPAL RISKS AFFECTING THE GROUP
SUPPLY CHAIN
Risk:
KEY SUPPLIERS
Risk:
TREASURY AND FINANCIAL RISK
Risk:
38
CREDIT AND LIQUIDITY RISK
Risk:
TAXATION
Risk:
SUCCESSION PLANNING
Risk:
RISKS AND UNCERTAINTIES
RELATING TO THE GROUP’S BUSINESS
39
MARKET FORCES
Risk:
:
OPERATIONAL
Risk:
:
CYBER FAILURES AND ATTACKS
Risk:
:
HEALTH AND SAFETY
Risk:
:
40
LEGAL
Risk:
:
SALES
Risk:
:
RISKS AND UNCERTAINTIES
RELATING TO THE GROUP’S BUSINESS
41
•
•
•
Dave Forsey
VIABILITY
STATEMENT
42
DR KEITH HELLAWELL QPM
Appointed:
:
Previous roles:
Present roles:
Key skills and experiences:
MIKE ASHLEY
Appointed:
Previous roles:
Key skills and experiences:
DAVE FORSEY
Appointed:
Key skills and experiences:
MATT PEARSON
Appointed:
Previous Roles:
Key skills and experiences:
SIMON BENTLEY
Appointed:
Previous roles:
Present roles:
Key skills and experiences:
THE
BOARD
43
DAVE SINGLETON
Appointed:
Previous roles:
Present roles:
Key skills and experiences:
CLAIRE JENKINS
Appointed:
Previous roles:
Present roles:
Key skills and experiences:
44
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
•
•
•
RESULTS FOR THE YEAR AND DIVIDENDS
SHARE CAPITAL AND CONTROL
SHAREHOLDERS
•
•
DIRECTORS'
REPORT
45
•
shares held
Indirect
Indirect
Indirect
SUPPLIERS
CONTRACTS ESSENTIAL TO THE BUSINESS OF THE COMPANY
TAKEOVERS
SHARE SCHEMES
STAFF INVOLVEMENT
DIVERSITY AND EQUAL OPPORTUNITIES
46
RESEARCH AND DEVELOPMENT
CHARITABLE AND POLITICAL DONATIONS
DIRECTORS
DIRECTORS’ CONFLICTS OF INTEREST
DIRECTORS’ INDEMNITIES
ANNUAL GENERAL MEETING
GOING CONCERN
ACCOUNTABILITY AND AUDIT
AUDITOR
Cameron Olsen
DIRECTORS'
REPORT
47
CORPORATE GOVERNANCE
REPORT
The Group is commied to high standards of Corporate Governance. The following secon will detail how the UK
Corporate Governance Code has been applied during the year.
CHAIRMAN’S INTRODUCTION
COMPLIANCE WITH THE UK CORPORATE GOVERNANCE CODE
LEADERSHIP
EFFECTIVENESS
ACCOUNTABILITY
REMUNERATION
RELATIONS WITH SHAREHOLDERS
THE BOARD
ROLE OF THE BOARD
48
KEY ACTIVITIES
•
•
•
•
•
MATTERS RESERVED FOR THE BOARD
•
•
•
•
•
•
THE CHAIRMAN AND EXECUTIVE DIRECTORS
CORPORATE GOVERNANCE
REPORT
49
BOARD COMMITTEES
Scheduled
Unscheduled
Dave Forsey
50
AUDIT COMMITTEE
AUDIT COMMITTEE REPORT 2016
•
•
•
•
MEMBERSHIP
MEETINGS
THE MAIN RESPONSIBILITIES OF THE AUDIT COMMITTEE INCLUDE:
•
•
•
•
•
•
•
•
•
WHAT HAS THE COMMITTEE DONE DURING THE YEAR?
•
•
•
•
CORPORATE GOVERNANCE
REPORT
51
INTERNAL CONTROLS
EXTERNAL AUDITORS
•
•
•
•
•
52
Auditor Authority
REVIEWED ACCOUNTING POLICIES, PRESENTATIONS AND THE FINANCIAL STATEMENTS
•
•
•
•
•
•
•
•
•
FINANCIAL REPORTING
•
•
•
•
•
CORPORATE GOVERNANCE
REPORT
53
REVIEW OF OWN EFFECTIVENESS
Simon Bentley
REMUNERATION COMMITTEE
THE RESPONSIBILITIES OF THE REMUNERATION COMMITTEE INCLUDE:
•
•
•
•
WHAT HAS THE COMMITTEE DONE DURING THE YEAR?
•
•
Dave Singleton
NOMINATION COMMITTEE
THE RESPONSIBILITIES OF THE NOMINATION COMMITTEE INCLUDE:
•
•
•
•
•
•
54
WHAT HAS THE COMMITTEE DONE DURING THE YEAR?
•
•
•
•
Dr Keith Hellawell QPM
UK BRIBERY ACT
BUSINESS MODEL
WHISTLE-BLOWING
RELATIONS WITH SHAREHOLDERS
REMUNERATION
SHARE DEALING CODES
CORPORATE GOVERNANCE
REPORT
55
RISKS AND UNCERTAINTIES
The key features of the Group’s system of internal control and risk management systems in relaon to the nancial reporng process and
the preparaon of the Group accounts are set out below or cross-referred to other parts of the Annual Report where relevant.
The Board of Directors has overall responsibility for determining the nature and extent of the signicant risks it is willing to take in
achieving its strategic objecves and for maintaining sound risk management and internal control systems, and for reviewing their
eecveness. The risk management process and systems of internal control are designed to manage rather than eliminate the risk of failure
to achieve the Company’s objecves. It should be recognised that such systems can only provide reasonable but not absolute assurance
against material misstatement or loss.
ASSESSMENT OF BUSINESS RISK
A system to idenfy, assess, and evaluate business risk is embedded within the management processes throughout the Group. Strategic
risks are regularly reviewed by the Board and its Commiees. Risks relang to the key acvies within the subsidiary operang units are
assessed connuously.
Further details of the risks and uncertaines relang to the Group’s business, and how the Group seeks to migate these, can be found on
pages 36 to 40.
By Order of the Board
Cameron Olsen
Company Secretary
7 July 2016
56
STATEMENT FROM THE CHAIRMAN OF THE REMUNERATION COMMITTEE
Basic salaries
Dave Singleton
DIRECTORS’ REMUNERATION
REPORT
57
DIRECTORS’ REMUNERATION POLICY
FUTURE POLICY TABLE
ELEMENT OF REMUNERATION: BASE SALARY
PURPOSE / LINK TO STRATEGY:
OPERATION:
MAXIMUM:
PERFORMANCE MEASURES:
ELEMENT OF REMUNERATION: BENEFITS
PURPOSE / LINK TO STRATEGY:
OPERATION:
MAXIMUM:
PERFORMANCE MEASURES:
ELEMENT OF REMUNERATION: RETIREMENT BENEFITS
PURPOSE / LINK TO STRATEGY:
OPERATION:
MAXIMUM:
PERFORMANCE MEASURES:
ELEMENT OF REMUNERATION: ANNUAL BONUS
PURPOSE / LINK TO STRATEGY:
OPERATION:
58
MAXIMUM:
PERFORMANCE MEASURES:
ELEMENT OF REMUNERATION: LONG-TERM INCENTIVE PAY (EXECUTIVE SHARE SCHEME)
PURPOSE / LINK TO STRATEGY:
OPERATION:
MAXIMUM:
PERFORMANCE MEASURES:
SERVICE CONTRACTS
EXECUTIVE DIRECTORS
Contract Date Proper law
Dave Forsey
ANNUAL REPORT ON REMUNERATION
DIRECTORS’ REMUNERATION
REPORT
59
Director Bonus
Long-term
Pension Total
EXECUTIVE
Dave Forsey
73
73
NOTES TO THE SINGLE FIGURE TABLE AND IMPLEMENTATION OF POLICY IN THE YEAR ENDING
30 APRIL 2017
BASE SALARY AND FEES
ANNUAL BONUS SCHEME
EXECUTIVE SHARE SCHEME
PAYMENTS TO PAST DIRECTORS DURING THE FINANCIAL YEAR
PAYMENTS FOR LOSS OF OFFICE DURING THE FINANCIAL YEAR
SHAREHOLDING GUIDELINES AND TOTAL SHAREHOLDINGS OF DIRECTORS
60
Ordinary Shares
26 April 2015
Ordinary Shares
24 April 2016
Dave Forsey
Director Scheme Grant date As at 27 April
2015
Exercised in the
year
As at 24 April
2016
Status
Dave Forsey
Unvested
Unvested
•
•
•
•
DIRECTORS’ REMUNERATION
REPORT
61
PERFORMANCE GRAPH AND TABLE
opportunity
CEO PAY INCREASE IN RELATION TO ALL EMPLOYEES
Dave Forsey / % change
change
Dave Forsey in either year)
Sports Direct
62
RELATIVE IMPORTANCE OF SPEND ON PAY
The table below sets out the Group’s distribuons to shareholders by way of dividends and share buybacks, total Group-wide expenditure on
pay for all sta, as reported in the audited Financial Statements for FY16 and FY15, and the Company’s share price, calculated as at the close
of business on the last day of FY16 and FY15.
FY16 FY15 PERCENTAGE CHANGE
Distribuons to shareholders by way of dividend and
share buyback
£0 £0 0%
Investment* £439,667,000 £126,661,000 247.1%
Group-wide expenditure on pay for all employees £344,010,000 £323,545,000** 6.3%
Share price (pence) 404.5 613.0*** (34)%
*Comprises of increases in working capital, acquisions and capital expenditure in the year as the Board believes these to be the most relevant measures of the Group’s investment in future growth.
**This increase is reecve of the Group’s acquisions and retail expansion in Europe.
***For these purposes, the share price for FY16 and the share price for FY15 are calculated as the close of business on 22 April 2016 and 24 April 2015 respecvely, being the last working days
prior to the year ends.
CONSIDERATION BY THE DIRECTORS OF MATTERS RELATING TO DIRECTORS’ REMUNERATION
MEMBERSHIP
The Commiee consists of Simon Bentley, Dave Singleton and Claire Jenkins, who are independent Non-Execuve Directors, and Keith
Hellawell, who is the Non-Execuve Chairman.
The role and main responsibilies of the Commiee are detailed in the Corporate Governance Report on page 53.
Aendance at the meengs held during the year is detailed on page 49.
The members of the Commiee have no personal nancial interest, other than as shareholders, in the maers to be decided, no actual or
potenal conicts of interest arising from other directorships and no day-to-day operaonal responsibility within the Company.
ADVISERS TO THE COMMITTEE
Dave Forsey, the Chief Execuve, Ma Pearson, the Acng Chief Financial Ocer, and Mike Ashley, the Execuve Deputy Chairman, have
advised or materially assisted the Commiee when requested. Execuve Directors are not present, nor do they take part in discussions in
respect of maers relang directly to their own remuneraon.
SHAREHOLDER VOTING
The following table sets out actual vong in respect of the resoluon to approve the Directors’ Remuneraon Report for the year ended 26
April 2015 and in respect of the resoluon to approve the Directors’ Remuneraon Policy.
Votes for % for Votes against % against Total votes cast Votes withheld
Directors’ Remuneraon
Report for the year
ended 26 April 2015
518,504,036 98.9% 5,918,178 1.1% 524,422,214 721,345
Directors’ Remuneraon
Policy
426,150,848 81.4% 97,167,282 18.6% 523,318,130 1,825,428
Dave Singleton
Chairman of the Remuneraon Commiee
7 July 2016
DIRECTORS’ REMUNERATION
REPORT Connued
63
DIRECTORS’
RESPONSIBILITIES
•
•
•
•
•
•
•
and
Dave Forsey
64
OUR OPINION ON THE GROUP FINANCIAL STATEMENTS IS UNMODIFIED
In our opinion the Group Financial Statements:
•
•
•
OTHER MATTER
WHO WE ARE REPORTING TO
WHAT WE HAVE AUDITED
OVERVIEW OF OUR AUDIT APPROACH
•
•
•
OUR ASSESSMENT OF RISK
REVENUE RECOGNITION
this revenue is the capture of the EPOS data and the Group operates a control to ensure the completeness and accuracy of this data as it
•
•
•
•
•
•
•
INDEPENDENT AUDITORS REPORT
65
RELATED PARTY DISCLOSURES
•
•
•
•
ACCOUNTING FOR THE ACQUISITION OF HEATONS
•
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•
CARRYING VALUE OF INVENTORIES
•
•
•
•
66
ACCOUNTING FOR FOREIGN CURRENCY FORWARD CONTRACTS
•
•
•
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•
OUR APPLICATION OF MATERIALITY AND AN OVERVIEW OF THE SCOPE OF OUR AUDIT
MATERIALITY
OVERVIEW OF THE SCOPE OF OUR AUDIT
•
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INDEPENDENT AUDITORS REPORT
67
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OTHER REPORTING REQUIRED BY REGULATIONS
•
•
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
UNDER THE COMPANIES ACT 2006 WE ARE REQUIRED TO REPORT TO YOU IF, IN OUR OPINION:
•
•
•
UNDER THE LISTING RULES, WE ARE REQUIRED TO REVIEW:
•
•
ANNUAL REPORT IS:
•
•
•
REVENUE UNDERLYING EBITDA
68
IN PARTICULAR, WE ARE REQUIRED TO REPORT TO YOU IF:
•
•
•
•
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RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT
WHAT THE DIRECTORS ARE RESPONSIBLE FOR:
WHAT WE ARE RESPONSIBLE FOR:
Philip Westerman
For and on behalf of Grant Thornton UK LLP
London
INDEPENDENT AUDITORS REPORT
69
52 weeks ended
24 April 2016
(£’000)
Revenue
Cost of sales
Other investment income
Finance income
Finance costs
ATTRIBUTABLE TO:
Equity holders of the Group
EARNINGS PER SHARE ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS
Pence per share Pence per share
CONSOLIDATED INCOME STATEMENT
70
52 weeks ended
24 April 2016
(£’000)
OTHER COMPREHENSIVE INCOME
ITEMS THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
ITEMS THAT WILL BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS
the period
the period
ATTRIBUTABLE TO:
Equity holders of the Group
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
71
24 April 2016
(£’000)
Property, plant and equipment
Inventories
Trade and other receivables
Cash and cash equivalents
TOTAL ASSETS
EQUITY AND LIABILITIES
Share capital
Share premium
Treasury shares reserve
Own share reserve
Total equity
Provisions
Trade and other payables
CONSOLIDATED BALANCE SHEET
72
52 weeks ended
Note
24 April 2016
(£’000)
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds on disposal of property, plant and equipment
Proceeds on disposal of listed investments
Purchase of associate, net of cash acquired
Purchase of subsidiaries, net of cash acquired
Purchase of property, plant and equipment
Purchase of listed investments
Investment income received
Finance income received
CASH FLOW FROM FINANCING ACTIVITIES
Finance costs paid
CONSOLIDATED CASH FLOW STATEMENT
73
Treasury
shares
(£’000)
currency
(£’000)
Own share
reserve
(£’000)
Retained
(£’000)
Other
reserves
(£’000)
Total
parent
(£’000)
Non-
interests
(£’000)
Total
(£’000)
At 27 April 2014
payment
Dividends received
OTHER COMPREHENSIVE
INCOME
pension schemes
associates
the period
At 26 April 2015
payment
Purchase of own shares
OTHER COMPREHENSIVE
INCOME
pension schemes
the period
At 24 April 2016 (56,234) 26,840 (33,726) 1,482,331 (32,817) 1,386,394 (1,666) 1,384,728
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
74
1. ACCOUNTING POLICIES
BASIS OF PREPARATION
CONSOLIDATION
ASSOCIATES
INVESTMENTS
ACQUISITIONS
GOODWILL
OTHER INTANGIBLE ASSETS
NOTES TO THE FINANCIAL STATEMENTS
75
PROPERTY, PLANT AND EQUIPMENT
IMPAIRMENT OF ASSETS OTHER THAN GOODWILL AND INTANGIBLE ASSETS WITH AN INDEFINITE LIFE
REVENUE RECOGNITION
76
EXCEPTIONAL ITEMS
INTEREST INCOME
FOREIGN CURRENCIES
INVENTORIES
LOANS AND RECEIVABLES
CASH AND CASH EQUIVALENTS
TRADE AND OTHER PAYABLES
TAXATION
NOTES TO THE FINANCIAL STATEMENTS
77
PENSIONS
BORROWINGS AND BORROWING COSTS
PROVISIONS
LEASES
78
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
CASH FLOW HEDGING
TREASURY SHARES
EMPLOYEE BENEFIT TRUST
EQUITY INSTRUMENTS
DIVIDENDS
MATERIALITY
NOTES TO THE FINANCIAL STATEMENTS
79
NOT YET EFFECTIVE
•
•
•
•
•
•
•
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
IMPAIRMENT OF GOODWILL
IMPAIRMENT OF OTHER INTANGIBLE ASSETS
USEFUL ECONOMIC LIFE OF INTANGIBLE ASSETS
IDENTIFICATION AND VALUATION OF ACQUIRED ASSETS
IMPAIRMENT
PROVISION FOR OBSOLETE, SLOW MOVING OR DEFECTIVE INVENTORIES
80
FINANCIAL POSITION OF RETIREMENT BENEFIT PLANS
PROVISION FOR DILAPIDATIONS AND ONEROUS LEASE CONTRACTS
CALCULATION OF SHARE SCHEME CHARGE
VALUATION OF INVESTMENTS
3. FINANCIAL RISK MANAGEMENT
FOREIGN EXCHANGE RISK
INTEREST RATE RISK
CREDIT RISK
LIQUIDITY RISK
CAPITAL MANAGEMENT
4. SEGMENTAL ANALYSIS
NOTES TO THE FINANCIAL STATEMENTS
81
•
•
•
Retail
(£’000)
Brands
(£’000)
(£’000)
Total
(£’000)
Sports Retail
Premium
Total Total
Other investment income
Finance income
Finance costs
Retail
(£’000)
Brands
(£’000)
Total
(£’000)
Sports Retail
Premium
Total
Sports Retail
(£’000)
Premium
(£’000)
Brands
(£’000)
(£’000)
Total
(£’000)
Other assets
Total assets
82
Retail
(£’000)
Brands
(£’000)
(£’000)
Total
(£’000)
Sports Retail
Premium
Total Total
Other investment income
Finance income
Finance costs
Retail
(£’000)
Brands
(£’000)
Total
(£’000)
Sports Retail
Premium
Total
Sports Retail
(£’000)
Premium
(£’000)
Brands
(£’000)
(£’000)
Total
(£’000)
Other assets
Total assets
GEOGRAPHIC INFORMATION
UK
(£’000)
Non-UK
(£’000)
(£’000)
Total
(£’000)
UK
(£’000)
Non-UK
(£’000)
(£’000)
Total
(£’000)
NOTES TO THE FINANCIAL STATEMENTS
83
USA
(£’000)
(£’000)
Austria
(£’000)
Estonia
(£’000)
Ireland
(£’000)
Sports Retail
(£’000)
Premium
(£’000)
Brands
(£’000)
Total
(£’000)
Reported EBITDA
349,029 (5,082) 37,468 381,415
Sports Retail
(£’000)
Premium
(£’000)
Brands
(£’000)
Total
(£’000)
Impairment
Reported EBITDA
356,806 (7,690) 34,082 383,198
5. OTHER OPERATING INCOME
52 weeks ended
24 April 2016
(£’000)
Other
84
6. EXCEPTIONAL ITEMS
52 weeks ended
24 April 2016
(£’000)
7. OPERATING PROFIT
52 weeks ended
24 April 2016
(£’000)
SERVICES PROVIDED BY THE GROUP’S AUDITOR
below:
52 weeks ended
24 April 2016
(£’000)
AUDIT SERVICES
Overseas audits
8. PAYROLL COSTS
52 weeks ended
24 April 2016
NOTES TO THE FINANCIAL STATEMENTS
85
52 weeks ended
24 April 2016
(£’000)
Social security costs
Pension costs
52 weeks ended
24 April 2016
(£’000)
9. OTHER INVESTMENT INCOME
52 weeks ended
24 April 2016
(£’000)
Dividend income from investments
10. FINANCE INCOME
52 weeks ended
24 April 2016
(£’000)
Other interest receivable
11. FINANCE COSTS
52 weeks ended
24 April 2016
(£’000)
86
12. TAXATION
52 weeks ended
24 April 2016
(£’000)
TAX RECONCILIATION
3
13. EARNINGS PER SHARE FROM TOTAL AND CONTINUING OPERATIONS ATTRIBUTABLE TO THE
EQUITY SHAREHOLDERS
BASIC AND DILUTED EARNINGS PER SHARE
52 weeks ended
24 April 2016
Basic
(£’000)
24 April 2016
Diluted
(£’000)
Diluted
Pence per share Pence per share
UNDERLYING EARNINGS PER SHARE
NOTES TO THE FINANCIAL STATEMENTS
87
52 weeks ended
24 April 2016
Basic
(£’000)
24 April 2016
Diluted
(£’000)
Diluted
Pence per share Pence per share
14. PROPERTY, PLANT AND EQUIPMENT
Freehold land
(£’000)
leasehold
improvements
(£’000)
Short-term
leasehold
improvements
(£’000)
Plant and
equipment
(£’000)
Total
(£’000)
COST
Eliminated on disposals
Eliminated on disposals
ACCUMULATED DEPRECIATION AND IMPAIRMENT
Eliminated on disposals
Impairment
Eliminated on disposals
NET BOOK AMOUNT
88
15. INTANGIBLE ASSETS
Goodwill
(£’000)
Trademarks
and licences
(£’000)
Brands
(£’000)
Total
(£’000)
COST
Disposals
Disposals
AMORTISATION AND IMPAIRMENT
Impairment
Disposals
Impairment
Disposals
At 24 April 2016
NET BOOK AMOUNT
Goodwill
(£’000)
Brands
(£’000)
Premium Lifestyle
Everlast
NOTES TO THE FINANCIAL STATEMENTS
89
Sports
Retail
Everlast)
Everlast
Discount rates
16. INVESTMENTS IN ASSOCIATED UNDERTAKINGS
Associates
(£’000)
Disposals
Dividends paid
Disposals
Dividends paid
is as follows:
24 April 2016
(£’000)
Share of current assets
90
52 weeks ended
24 April 2016
(£’000)
Income
17. AVAILABLE-FOR-SALE FINANCIAL ASSETS
24 April 2016
(£’000)
24 April 2016
(£’000)
Disposals
18. INVENTORIES
24 April 2016
(£’000)
3
Goods for resale
NOTES TO THE FINANCIAL STATEMENTS
91
24 April 2016
(£’000)
19. TRADE AND OTHER RECEIVABLES
24 April 2016
(£’000)
Trade receivables
Other debtors
Prepayments
24 April 2016
(£’000)
Current
The movement in the bad debt provision can be analysed as follows:
52 weeks ended
24 April 2016
(£’000)
92
20. CASH AND CASH EQUIVALENTS
24 April 2016
(£’000)
21. SHARE CAPITAL
24 April 2016
(£’000)
AUTHORISED
ALLOTTED, CALLED UP AND FULLY PAID
SHARE CAPITAL
CONTINGENT SHARE AWARDS
Share Schemes
NOTES TO THE FINANCIAL STATEMENTS
93
22. OTHER RESERVES
Share
capital
(£’000)
Share
premium
(£’000)
Permanent
to capital
(£’000)
Capital
reserve
(£’000)
Reverse
reserve
(£’000)
reserve
(£’000)
Total other
reserves
(£’000)
At 26 April 2015 64,060 874,300 50 8,005 (987,312) 78,796 37,899
At 24 April 2016 64,060 874,300 50 8,005 (987,312) 8,080 (32,817)
OTHER BALANCE SHEET RESERVES
23. BORROWINGS
24 April 2016
(£’000)
NON-CURRENT:
CURRENT:
TOTAL BORROWINGS:
94
24 April 2016
(£’000)
24. RETIREMENT BENEFIT OBLIGATIONS
•
•
•
•
The amounts for the current and previous periods:
24 April 2016
(£’000)
Total fair value of plan assets
NOTES TO THE FINANCIAL STATEMENTS
95
52 weeks ended
24 April 2016
(£’000)
Current service cost
52 weeks ended
24 April 2016
(£’000)
The movements in the fair value of plan assets are as follows:
52 weeks ended
24 April 2016
(£’000)
Interest income based on discount rate
24 April 2016
(£’000)
Cash and other
24 April 2016
(%)
Future pension increases
Discount rate
96
24 April 2016
£m
Discount rate
24 April 2016
(£’000)
Current service cost
Interest cost
52 weeks ended
24 April 2016
(£’000)
NOTES TO THE FINANCIAL STATEMENTS
97
25. DEFERRED TAX ASSET AND LIABILITIES
Accounts
(£’000)
(£’000)
Pension
plan
(£’000)
Bonus
share
scheme
(£’000)
Forward
currency
contracts
(£’000)
Brands
Other
temporary
(£’000)
Total
(£’000)
statement
of other comprehensive income
Credited to reserves in respect of
Share Scheme
statement
of other comprehensive income
Credited to reserves in respect of
Share Scheme
24 April 2016
(£’000)
26. PROVISIONS
Property
related
(£’000)
Other
(£’000)
Total
(£’000)
98
27. FINANCIAL INSTRUMENTS
(a) FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
Loans and
(£’000)
(£’000)
assets (£’000)
assets
(£’000)
Total
(£’000)
Property, plant and equipment
Inventories
Trade and other receivables
Cash and cash equivalents
Property, plant and equipment
Inventories
Trade and other receivables
Cash and cash equivalents
Loans and
(£’000)
and loss
(£’000)
(£’000)
Total
(£’000)
Provisions
Trade and other payables
Provisions
Trade and other payables
NOTES TO THE FINANCIAL STATEMENTS
99
FAIR VALUE HIERARCHY
•
•
•
DERIVATIVES: FOREIGN CURRENCY FORWARD PURCHASE CONTRACTS
24 April 2016
(£’000)
Other
24 April 2016
(£’000)
US Dollar purchases
Contracted rates
24 April 2016
(£’000)
US Dollar sales
Contracted rates
24 April 2016
(£’000)
Euro sales
Contracted rates
100
24 April 2016
(£’000)
Contracted rates
24 April 2016
(£’000)
US Dollar purchases
Contracted rates
24 April 2016
(£’000)
Euro sales
Contracted rates
24 April 2016
(£’000)
Contracted rates
(c) SENSITIVITY ANALYSIS
FOREIGN CURRENCY SENSITIVITY ANALYSIS
Income statement Equity
24 April 2016
(£’000)
24 April 2016
(£’000)
US Dollar
Euro
US Dollar
Euro
INTEREST RATE SENSITIVITY ANALYSIS
•
•
NOTES TO THE FINANCIAL STATEMENTS
101
Income statement Equity
24 April 2016
(£’000)
24 April 2016
(£’000)
(d) LIQUIDITY RISK
Less than 1
year (£’000)
1 to 2 years
(£’000)
2 to 5 years
(£’000)
Over 5 years
(£’000)
Total
(£’000)
2016
Trade and other payables
2015
Trade and other payables
CAPITAL MANAGEMENT
28. TRADE AND OTHER PAYABLES
24 April 2016
(£’000)
Trade payables
Other payables
102
29. ACQUISITIONS
Heatons
(£’000)
Fair value of assets acquired
Goodwill
values at
Fair value
adjustment
net assets
acquired
(£’000)
Investment property
Cash and cash equivalents
Trade and other receivables
Trade and other payables
Heatons
(£’000)
Cash acquired
Heatons
(£’000)
NOTES TO THE FINANCIAL STATEMENTS
103
30. CASH INFLOW FROM OPERATING ACTIVITIES
52 weeks ended
24 April 2016
(£’000)
Other investment income
Impairment
Increase in receivables
31. OPERATING LEASE ARRANGEMENTS
which fall due as follows:
24 April 2016
(£’000)
LAND AND BUILDINGS
Within one year
24 April 2016
(£’000)
LAND AND BUILDINGS
Within one year
104
32. CAPITAL COMMITMENTS
33. CONTINGENT ASSETS AND LIABILITIES
34. RELATED PARTY TRANSACTIONS
Sales
(£’000)
Purchases
(£’000)
Trade
and other
(£’000)
Trade and
(£’000)
RELATED PARTY
Subsidiary
The Flannels Group Limited Subsidiary
Subsidiary
Parent company
Subsidiary
Subsidiary
Subsidiary
Sondico Professional Limited Subsidiary
Subsidiary
Connected
persons
Connected
persons
Subsidiary
Heaven or Hell Limited Subsidiary
Sales (£’000)
Purchases
(£’000)
Trade
and other
(£’000)
Trade and
(£’000)
RELATED PARTY
Heatons
The Flannels Group Limited Subsidiary
Subsidiary
Subsidiary
Subsidiary
Sondico Professional Limited Subsidiary
Subsidiary
Connected
persons
Subsidiary
Heaven or Hell Limited Subsidiary
NOTES TO THE FINANCIAL STATEMENTS
105
24 April 2016
(£’000)
Total
35. ULTIMATE CONTROLLING PARTY
36. POST BALANCE SHEET EVENTS
37. SUBSIDIARY UNDERTAKINGS
NAME
COUNTRY OF
INCORPORATION
COMPANY NUMBER
PERCENTAGE OF
ISSUED SHARE
CAPITAL HELD
Canada
United States
United States
United States
Isle of man
Campri Limited
Carlton Sports Company Limited
Scotland
Direct Golf IP Limited
DSGL Sponsorship Limited
Dunlop Footwear Limited
106
Philippines
France
Dunlop Sports Company
United States
Eastchance Limited
Etail Services Limited
United States
United States
United States
United States
United States
Everlast Worldwide Inc United States United States
Firetrap Limited
Forever Sports Limited
Freeshield Limited
Gelert IP Limited
Gelert Limited
Gul IP Limited
Gul Watersports Limited
Heatons Ireland
Heatons Stores Limited
Heatons Sports Limited
Heaven or Hell Limited
Sweden
Hot Tuna IP Limited
Hsports Limited
NOTES TO THE FINANCIAL STATEMENTS
107
Karrimor Limited
Lillywhites Limited
Litesome Sportswear Limited
Lonsdale Sports Limited
United States
Iceland
Olympus Ventures Limited
Outdoor Sports Direct Limited
P W P Sportbase Limited
Paddle Sport Limited
SD Equestrian Limited
SD Outdoor IP Limited
SD Outdoor Limited
108
NOTES TO THE FINANCIAL STATEMENTS
109
110
SDI Four Limited
SDI Golf Limited
SDI Lifestyle Limited
United States
SDI Property Limited
NOTES TO THE FINANCIAL STATEMENTS
111
SDI Sport London Limited
Latvia
Sondico IP Limited
Sondico Professional Limited
Spinsort Limited
Estonia
Estonia
Sports Commission Limited
Estonia
Cyprus
France
Spain
Slovenia
Switzerland
Germany
Scotland
112
Table Tennis Pro Europe Limited
Talisway Limited
United States
The Flannels Group Limited
Total Estates Limited
Universal Cycles Limited
USC IP Limited
Wareshop3 Limited
Warrnambool
Scotland
United States
Wildlaw Limited
World of Service Limited
Worthyfund Limited
COMPANY NAME COMPANY NUMBER COMPANY NAME COMPANY NUMBER
Gelert IP Limited
Gul IP Limited
Hot Tuna IP Limited
SD Equestrian Limited
SD Outdoor IP Limited
SD Outdoor Limited
NOTES TO THE FINANCIAL STATEMENTS
113
SDI Property Limited
114
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
OPINION ON FINANCIAL STATEMENTS
In our opinion the parent company Financial Statements:
•
•
•
OTHER MATTER
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion:
•
and
•
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
opinion:
•
•
•
•
Philip Westerman
For and on behalf of Grant Thornton UK LLP
London
INDEPENDENT AUDITORS REPORT
115
Notes
2016
(£’000)
FIXED ASSETS
Investments
CURRENT ASSETS
Debtors 3
Provisions
Net assets 1,052,927 1,005,089
CAPITAL AND RESERVES
Called up share capital
Share premium
Treasury shares reserve
Own share reserve
1,052,927 1,005,089
Dave Forsey
COMPANY BALANCE SHEET
116
Called
up share
capital
(£’000)
Share
premium
account
(£’000)
Treasury
share
reserve
(£’000)
Perm contn
to capital
(£’000)
Capital
reserve
(£’000)
Own share
reserve
(£’000)
& Loss
account
(£’000)
Total
(£’000)
Share based payments
Share based payments
Share purchase
As at 24 April 2016 64,060 874,300 (56,234) 50 8,005 (33,726) 196,472 1,052,927
1. ACCOUNTING POLICIES
ACCOUNTING POLICIES
BASIS OF ACCOUNTING
INVESTMENTS
LOANS AND RECEIVABLES
COMPANY STATEMENT OF CHANGES
IN EQUITY
NOTES TO THE FINANCIAL STATEMENTS
117
TRADE AND OTHER PAYABLES
EMPLOYEE BENEFIT TRUST
DEFERRED TAXATION
FOREIGN CURRENCIES
DIVIDENDS
EQUITY INSTRUMENTS
INCOME FROM GROUP UNDERTAKINGS
RELATED PARTY TRANSACTIONS
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
CRITICAL JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
CALCULATION OF SHARE SCHEME CHARGE;
ASSUMPTIONS RELATING TO TAX
118
2. INVESTMENTS
2016
(£’000)
Investments in subsidiaries
Investments in associates
3. DEBTORS
2016
(£’000
Other debtors
Prepayments
4. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2016
(£’000)
Trade creditors
5. DEFERRED TAX LIABILITIES
Other
temporary
(£’000
At 24 April 2016
NOTES TO THE FINANCIAL STATEMENTS
119
6. CALLED UP SHARE CAPITAL
2016
(£’000)
AUTHORISED
CALLED UP AND FULLY PAID
SHARE CAPITAL
7. RESERVES
Share
premium
account
(£’000)
Treasury share
reserve
(£’000)
Permanent
to capital
(£’000)
Capital
reserve
(£’000)
Own share
reserve
(£’000)
account
(£’000)
Share based payments
assets
8. RECONCILIATION OF MOVEMENT ON SHAREHOLDERS’ FUNDS
2016
(£’000)
Share based payments
9. POST BALANCE SHEET EVENTS
120
10. FIRST TIME ADOPTION OF FRS 102
Previous UK
GAAP
£’000
£’000
Restated
£’000
Investments 1,077,408
Debtors 15,497
186
Creditors (114,018)
(103)
978,970
Share capital 64,060
Share premium 874,300
Treasury shares reserve (56,234)
50
8,005
Own share reserve (13,251)
102,040
Shareholders funds 978,970
Previous UK
GAAP
£’000
£’000
Restated
£’000
Investments 1,083,119
Debtors 35,983
1,418
Creditors (113,549)
(1,882)
1,005,089
Share capital 64,060
Share premium 874,300
Treasury shares reserve (56,234)
50
8,005
Own share reserve (13,251)
128,159
Shareholders funds 1,005,089
At 26 April 2015
(£’000
At 28 April 2014
(£’000)
1,005,089 978,970
NOTES TO THE FINANCIAL STATEMENTS
121
At 26 April 2015
(£’000)
8,941
122
52 weeks
ended
ended
ended
ended
ended
24 April 2016
(£’000)
CONTINUING OPERATIONS:
Revenue
Cost of sales
Finance income
Finance costs
ventures
Equity holders of the Group
CONSOLIDATED FIVE YEAR RECORD
Unaudited income statement
123
COMPANY DIRECTORY
REGISTRAR AND TRANSFER OFFICE
Computershare Investor Services plc
The Pavilions
COMPANY SECRETARY AND REGISTERED OFFICE
SOLICITORS
London
BROKERS
Canada Square
Canary Wharf
London
London
Goldman Sachs Limited
London
PRINCIPAL BANKERS
Canary Wharf
London
London
AUDITORS
Grant Thornton UK LLP
Grant Thornton House
Euston Square
London
124
ANNUAL GENERAL MEETING
RESULTS
SHAREHOLDER HELPLINE
WEBSITE
UNSOLICITED MAIL
If you wish to limit the amount of unsolicited mail you receive contact:
London
SHAREHOLDER INFORMATION
Sports Direct Internaonal plc Unit A, Brook Park East, Shirebrook, NG20 8RY
0344 245 9200
www.sportsdirectplc.com
