WICKES GROUP PLC Adjusted earnings per share are calculated by excluding the effects of the adjusting items from earnings.
26 weeks 26 weeks 52 weeks ended
GBPm ended ended
26 December
26 June 2021 27 June 2020 2020
Profit / (loss) attributable to the owners of the parent from continuing
operations
34.0 (2.1) 26.3
Adjusting items 10.8 20.0 20.6
Tax on adjusting items (1.3) (3.6) (3.9)
Adjusting items - deferred tax (6.8) (2.4) (2.4)
Earnings for adjusted earnings per share 36.7 11.9 40.6
Adjusted earnings per share 14.6p 4.7p 16.1p
Adjusted diluted earnings per share 14.6p 4.7p 16.1p 11. Dividends In the periods before the demerger date, dividend payment of GBP30.0m was recognised in the financial statements as distributions to the former sole shareholder, Travis Perkins plc, in the 26 weeks period ended 26 June 2021 (26 weeks ended 27 June 2020: GBP176.1m, 52 weeks ended 26 December 2020: GBP176.8m).
An interim dividend of 2.1p is proposed in respect of the 53 weeks ending 1 January 2022. It will be paid on 1 November 2021 to shareholders on the register at the close of business on 24 September 2021 (the Record Date). The shares will be quoted ex-dividend on 23 September 2021.
Shareholders may elect to reinvest their dividend in the Dividend Reinvestment Plan (DRIP). The last date for receipt of DRIP elections and revocations will be 11 October 2021.
Notes to the interim financial statements 12. Borrowings
At the period end, the Group had the following borrowing facilities available:
As at As at As at
GBPm 26 June 2021 27 June 2020 26 December 2020
Undrawn facilities:
3-year committed revolving credit facility
80.0 - -
(expires March 2024)
80.0 - - The Group continues to work closely with its relationship banking syndicate. Despite the strong liquidity position, given the impact of the Covid-19 crisis and the resulting lockdown period, the Group secured a GBP80million, 3-year revolving credit facility on 23 March 2021 as part of the demerger process. The revolving credit facility was not utilised in the period. The Group does not have an overdraft facility as at 26 June 2021 (26 weeks ended 27 June 2020 and 52 weeks ended 26 December: no facility). 13. Net debt
Movement in the period
26 weeks ended 26 weeks ended 52 weeks ended
GBPm 26 June 2021 27 June 2020 26 December 2020
Cash and cash equivalent at beginning of the period
(6.5) (25.4) (25.4)
Net (repayments from) / cash advances to Travis Perkins group
(123.5) 100.0 134.4
Increase in cash and cash equivalents - other (74.2) (116.7) (115.5)
Cash and cash equivalents at end of the period (204.2) (42.1) (6.5)
Debt at beginning of the period 790.0 855.0 855.0
Cash flows from repayment of lease liabilities (53.9) (53.6) (107.8)
Discount unwind on lease liability 15.7 16.3 32.0
Lease additions 18.1 12.9 15.0
Lease terminations (0.9) (0.1) (4.2)
Debt at end of the period 769.0 830.5 790.0
Net debt at beginning of the period 783.5 829.6 829.6
Net debt at end of the period 564.8 788.4 783.5 Notes to the interim financial statements 13. Net debt (continued)
During the 26 weeks period ended 26 June 2021, the Group received GBP156.1m cash settlement of certain intercompany balances owed by the Travis Perkins Group as part of the pre-Demerger Reorganisation.
Balances at period end
As at As at As at
GBPm
26 June 2021 27 June 2020 26 December 2020
Cash and cash equivalents (204.2) (42.1) (6.5)
Non-current lease liabilities 691.7 754.0 712.8
Current lease liabilities 77.3 76.5 77.2
Net debt 564.8 788.4 783.5 14. Related party transactions The Group has a related party relationship with its subsidiaries, with its Directors and up to the date of the demerger had related party relationships with Travis Perkins Group companies. There have been no related party transactions with Directors other than in respect of remuneration. Transactions with the Travis Perkins Group companies relate to the purchase of goods and lease arrangements before the demerger date of 28 April 2021 and are detailed below. The Travis Perkins Group companies ceased to be related parties after the demerger date and therefore there are no further related parties transactions after that date.
Purchases of GBP0.9m (26 weeks ended 27 June 2020: GBP1.2m, 52 weeks ended 26 December 2020: GBP2.8m) were made from other entities in the Travis Perkins group, of which GBP0.4m (26 weeks ended 27 June 2020: GBP0.4m, 52 weeks ended 26 December 2020: GBP1.0m) remained due at the period-end. Rental payments of GBP0.9m (26 weeks ended 27 June 2020: GBP2.8m, 52 weeks December 2020: GBP4.7m) were made to other entities in the Travis Perkins group, of which GBPnil (26 weeks ended 27 June 2020: GBPnil, 52 weeks ended 26 December 2020: GBP0.2m) remained due at the period-end. Rental income of GBP0.4m (26 weeks ended 27 June 2020: GBP0.7m, 52 weeks ended 26 December 2020: GBP2.1m) was received, of which GBPnil (26 weeks ended 27 June 2020: GBPnil, 52 weeks ended 26 December 2020: GBPnil) remained due at the period-end. 15. Non-statutory information a) Adjusted operating profit
Adjusted operating profit is calculated by excluding the effects of adjusting items from operating profit.
26 weeks ended 26 weeks ended 52 weeks ended
GBPm
26 June 2021 27 June 2020 26 December 2020
Operating profit 51.1 10.9 61.0
Adjusting items (note 2) 10.8 20.0 20.6
Adjusted operating profit 61.9 30.9 81.6 Notes to the interim financial statements 15. Non-statutory information (continued) b) Adjusted profit before tax
Adjusted profit before tax is calculated by excluding the effects of adjusting items from profit before tax.
26 weeks ended 26 weeks ended Year ended
GBPm
26 June 2021 27 June 2020 26 December 2020
Profit / (loss) before tax 35.7 (5.5) 28.9
Adjusting items (note 2) 10.8 20.0 20.6
Adjusted profit before tax 46.5 14.5 49.5 c) Adjusted EBITDA Adjusted EBITDA is calculated by excluding depreciation, amortisation and adjusting items from operating profit.
26 weeks ended 26 weeks ended Year ended
GBPm
26 June 2021 27 June 2020 26 December 2020
Operating profit 51.1 10.9 61.0
Depreciation and amortisation 49.5 51.2 103.1
EBITDA 100.6 62.1 164.1
Adjusting items (note 2) 10.8 20.0 20.6
Adjusted EBITDA 111.4 82.1 184.7 DIRECTORS' RESPONSIBILITIES STATEMENT We confirm that to the best of our knowledge:
-- The condensed set of financial statements has been prepared in accordance with IAS 34 - Interim FinancialReporting, adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union;
-- The Interim Management Report includes a fair review of the information required by: a. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that haveoccurred during the first 26 weeks of the financial period and their impact on the condensed set of interimfinancial statements; and a description of the principal risks and uncertainties for the remaining 27 weeks of thereporting period; and b. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have takenplace in the first 26 weeks of the current financial period and that have materially affected the financialposition or performance of the entity during that period; and any changes in the related party transactionsdescribed in the last annual report that could do so.
By order of the Board
David Wood Julie Wirth
Chief Executive Officer Chief Financial Officer
16 September 2021 16 September 2021 INDEPENDENT REVIEW REPORT TO WICKES GROUP PLC Conclusion
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