SUPERDRY PLC As already described in the statement regarding going concern, as part of this assessment the Directors have considered an extended reverse stress test over the viability period with similar mitigations as under the going concern assessment, and have taken account of the availability of the Group's ABL.
Whilst recognising the challenging retail environment will increase the risks and costs around the future refinancing of this facility, based on current market conditions and our proven ability to manage cash during the pandemic, the Directors believe that Superdry has the appropriate plans, current assets, and mitigations in place to maximise the prospects of a successful renewal in advance of the January 2023 ABL expiry. The viability assessment therefore assumes that the Group renews on existing or better terms through the duration of the viability period.
Under the reverse stress test, which tests for the breakeven point against our borrowing facilities (liquidity and covenants are tested separately), the July 2022 (Q2 23) covenant test would breach first, in line with the going concern test. Given the assumed recovery in trading post-Covid in the Medium Term Plan, both liquidity and covenant headroom in the outer years of the plan is higher than in FY23. The reverse stress test indicated that, after taking account of the mitigating actions highlighted in the going concern assessment above, the Group would be able to operate within its funding facilities for the five-year assessment period. However, a sustained downturn as a result of the new strategy not turning the business around, or an unexpected failure to renew the ABL in January 2023, would threaten the viability of the business over this five-year assessment period.
Based on this assessment, the Directors have a reasonable expectation that the Group will have sufficient resources to continue in operation and meet its liabilities as they fall due over the period to April 2026.
Notes
1. 'Lost trading days' calculated as the simple average number of stores closed each day of the period as a percentage of total potential trading days in the period, excludes impact of restricted trading hours.
2. Full price sales mix relates to the proportion of retail sales made at RRP in full priced stores and owned websites only.
3. Cash annualised saving has been calculated based on the effective date of the lease agreement.
Group Statement of Comprehensive Income
to the members of Superdry Plc
Adjusted* Adjusting Total Adjusted* Adjusting Total
Note 2021 items 2021 2020 items 2020
GBPm (note 7) GBPm GBPm (note 7) GBPm
GBPm GBPm
Revenue 6 556.1 - 556.1 704.4 - 704.4
Cost of sales (263.0) - (263.0) (326.5) - (326.5)
Gross profit 293.1 - 293.1 377.9 - 377.9
Selling, general and administrative expenses (321.6) (19.4) (341.0) (412.1) (127.0) (539.1)
Other gains and losses (net) 19.3 (4.7) 14.6 9.1 1.9 11.0
Impairment credit/(loss) on trade receivables 3.8 - 3.8 (9.2) - (9.2)
Operating loss (5.4) (24.1) (29.5) (34.3) (125.1) (159.4)
Finance income - - - 0.2 - 0.2
Finance expense (7.2) - (7.2) (7.7) - (7.7)
Loss before tax (12.6) (24.1) (36.7) (41.8) (125.1) (166.9)
Tax (expense)/credit 10 (3.3) 3.9 0.6 6.1 17.4 23.5
Loss for the period (15.9) (20.2) (36.1) (35.7) (107.7) (143.4)
Attributable to:
Owners of the Company (15.9) (20.2) (36.1) (35.7) (107.7) (143.4)
Other comprehensive expense net of tax:
Items that may be subsequently reclassified to
profit or loss
Currency translation differences 12.1 - 12.1 (2.5) - (2.5)
Total comprehensive expenses for the period (3.8) (20.2) (24.0) (38.2) (107.7) (145.9)
Attributable to:
Owners of the Company (3.8) (20.2) (24.0) (38.2) (107.7) (145.9)
pence pence pence pence
per share per per share per
share share
Earnings per share:
Basic 11 (19.4) (44.0) (43.5) (174.9)
Diluted 11 (19.4) (44.0) (43.3) (174.1)
* Adjusted and Adjusting Items are defined in note 22.
2021 is for the 52 weeks ended 24 April 2021 and 2020 is for the 52 weeks ended 25 April 2020.
Balance Sheet
to the members of Superdry Plc Registered number: 07063562
Group
24 April 25 April
Note 2021 2020
GBPm GBPm
ASSETS
Non-current assets
Property, plant and equipment 13 29.4 41.7
Right of use assets 17 91.1 118.0
Intangible assets 14 41.7 48.4
Investments in subsidiaries - -
Deferred tax assets 53.8 53.3
Derivative financial instruments 20 0.3 0.1
Total non-current assets 216.3 261.5
Current assets
Inventories 148.3 158.7
Trade and other receivables 102.3 91.6
Derivative financial instruments 20 2.4 2.5
Current tax receivables 4.0 6.8
Cash and bank balances 38.9 307.4
Total current assets 295.9 567.0
LIABILITIES
Current liabilities
Borrowings - 270.7
Trade and other payables 126.5 103.3
Provisions for other liabilities and charges 6.2 4.2
Derivative financial instruments 20 5.7 2.1
Lease liabilities 17 94.1 80.1
Total current liabilities 232.5 460.4
Net current assets/(liabilities) 63.4 106.6
Non-current liabilities
Trade and other payables 1.2 2.2
Provisions for other liabilities and charges 10.0 10.8
Derivative financial instruments 20 1.5 0.2
Deferred liabilities 1.1 1.4
Lease liabilities 17 175.5 240.8
Total non-current liabilities 189.3 255.4
Net assets 90.4 112.7
EQUITY
Share capital 21 4.1 4.1
Share premium 149.2 149.1
Translation reserve 6.6 (5.5)
Merger reserve (302.5) (302.5)
Retained earnings 233.0 267.5
Total equity 90.4 112.7 Group Cash Flow Statement
to the members of Superdry Plc
Group
Note 2021 2020
GBPm GBPm
Cash generated from operating activities 18 50.1 87.5
Tax receipt/(payment) 2.5 (2.2)
Net cash generated from operating activities 52.6 85.3
Cash flow from investing activities
Investments in subsidiaries - -
Purchase of property, plant and equipment (6.8) (6.4)
Purchase of intangible assets (6.8) (7.5)
Proceeds from disposal of assets held for sale - 2.4
Net cash used in investing activities (13.6) (11.5)
Cash flow from financing activities
Dividend payments 12 - (3.4)
Proceeds of issue of share capital 0.1 -
Draw down of Revolving Credit Facility - (30.0)
Repayment of Revolving Credit Facility - 30.0
Net interest paid (7.2) (7.5)
Repayment of leases - principal amount 17 (39.9) (61.1)
Net cash used in financing activities (47.0) (72.0)
Net (decrease)/increase in cash and cash equivalents 19 (8.0) 1.8
Net cash and cash equivalents/(debt) at beginning of period 19 36.7 35.9 (MORE TO FOLLOW) Dow Jones Newswires
September 16, 2021 02:00 ET (06:00 GMT)
