30 May 2024
Dr. Martens
plc
Preliminary results for the
year ended 31 March 2024
"Our FY24 results were as expected and reflect continued weak
USA consumer demand. This particularly impacted our USA wholesale
business and offset our Group DTC performance, where pairs grew by
7%. We have achieved robust performances in EMEA and APAC, and our
supply chain strategy continues to deliver good savings. We are
clear that we need to drive demand in the USA to return to growth
in FY26 onwards and are executing a detailed plan to achieve this,
with refocused and increased USA marketing investment in the year
ahead. We are also announcing a cost action plan across the Group,
targeting savings of £20m to £25m. I am confident that the actions
we are taking as we enter this year of transition will put us in
good shape for the years ahead."
Kenny Wilson, Chief
Executive Officer
£m
|
FY24
|
FY23
|
% change
Actual
|
% change
CC2
|
Revenue
|
877.1
|
1,000.3
|
-12.3%
|
-9.8%
|
DTC revenue mix
|
61%
|
52%
|
+9pts
|
|
EBITDA1
|
197.5
|
245.0
|
-19.4%
|
|
EBITDA margin
|
22.5%
|
24.5%
|
-2.0pts
|
|
EBIT
|
122.2
|
176.2
|
-30.6%
|
|
Profit Before Tax (before FX)
1
|
97.2
|
170.1
|
-42.9%
|
|
Profit After Tax
|
69.2
|
128.9
|
-46.3%
|
|
Basic EPS (p)
|
7.0
|
12.9
|
-45.7%
|
|
Net Debt1
|
357.5
|
288.3
|
|
|
Dividend per share (p)
|
2.55
|
5.84
|
|
|
1. Alternative Performance Measure
(APM) as defined in the Glossary on pages 66 and 67.
2. Constant currency applies the
same exchange rate to the FY23 and FY24 results, based on FY23
budgeted rates
· Revenue down 12% (10% constant currency (CC)), with DTC
revenue up 2% (5% CC) offset by Wholesale revenue down 28% (26%CC)
primarily driven by USA wholesale
· Within DTC, Retail revenue was up 6% (10% CC) and ecommerce
was broadly flat (down 1% or up 1% CC)
· By
region:
o EMEA revenue was down 3% (actual and CC), with 12% growth in
DTC offset by wholesale decline, driven predominantly by the
planned strategic decision to reduce volumes into EMEA
etailers
o Americas revenue declined 24% (20% CC) driven by
wholesale
o APAC revenue was broadly flat (down 7% or up 1% CC) driven by
good growth in Japan
· Strong performance in shoes and sandals, with DTC pairs in
both categories growing over 20% year-on-year, showing the
continued strength of the brand
· Opened 35 net new own stores globally, with the majority of
these being in continental Europe and APAC
· Successful supply chain strategy delivered continued savings,
supporting gross margins which increased 3.8%pts to
65.6%
· Continued investment into IT systems including the Customer
Data Platform and Supply and Demand Planning Systems, which will
generate benefits FY26 onwards
· Profit before tax (before FX losses) of £97.2m, down 43%
driven by the decline in EBITDA together with increased
Depreciation & Amortisation
· Further strides made in Sustainability with the launch of UK
Authorised Repair, USA ReWair and our first products made from
reclaimed leather
· Net
Debt increased to £357.5m (FY23: £288.3m) due to returns to
shareholders, lower profits and increased lease liabilities.
Inventory was flat year-on-year, in line with
expectations
· The
Board proposes a final dividend of 0.99p, taking the total dividend
to 2.55p, equating to a 35% earnings payout. The Board's intention
is to hold the FY25 dividend flat in absolute terms, before
returning to an earnings payout in line with our dividend policy
(of 25% to 35% payout) in FY26 onwards
Current trading and
guidance
Current trading is in line with
our expectations and our planning assumptions for FY25 are
unchanged from those shared in our announcement on 16th
April. There remains a wide range of potential outcomes for both
revenue and profit for the year, dependent on the performance
through the key peak trading period. For the first half, we expect
a Group revenue decline of around 20%, driven by wholesale revenues
down around a third. Combined with the cost headwinds which impact
both halves, the impact of operational deleverage is significantly
more pronounced in the first half. Overall results this year will
therefore be very second-half weighted, particularly from a profit
perspective.
Detailed financial guidance is on
page 12.
Enquiries
Investors and analysts
Bethany Barnes, Director of
Investor Relations
Bethany.Barnes@drmartens.com
+44 7825 187465
Beth Callum, Investor Relations
Manager
Beth.Callum@drmartens.com
Press
H/Advisors Maitland
+44
20 7379 5151
Katharine
Spence
+44 7384 535739
Gill Hammond, Director of
Communications
+44 7384 214248
Presentation of full year results
Kenny Wilson, CEO and Giles
Wilson, CFO will be presenting the FY24 results at 09:30 (UK time)
on 30 May 2024. The presentation will be streamed live and the link
to join is https://www.drmartensplc.com.
A playback of the presentation will be available
on our corporate website after the event, at
https://www.drmartensplc.com/investors/results-centre.
About Dr. Martens
Dr. Martens is an iconic British
brand founded in 1960 in Northamptonshire. Produced originally for
workers looking for tough, durable boots, the brand was quickly
adopted by diverse youth subcultures and associated musical
movements. Dr. Martens has since transcended its working-class
roots while still celebrating its proud heritage and, six decades
later, "Docs" or "DM's" are worn by people around the world who use
them as a symbol of empowerment and their own individual attitude.
The Company listed on the main market of the London Stock Exchange
on 29 January 2021 (DOCS.L) and is a constituent of the FTSE 250
index.
Cautionary statement
relating to forward-looking statements
Announcements, presentations to investors, or other documents
or reports filed with or furnished to the London Stock Exchange
(LSE) and any other written information released, or oral
statements made, to the public in the future by or on behalf of Dr.
Martens plc and its group companies ("the Group"), may contain
forward-looking statements.
Forward-looking statements give the Group's current
expectations or forecasts of future events. An investor can
identify these statements by the fact that they do not relate
strictly to historical or current facts. They use words such as
'aim', 'ambition', 'anticipate', 'estimate', 'expect', 'intend',
'will', 'project', 'plan', 'believe', 'target' and other words and
terms of similar meaning in connection with any discussion of
future operating or financial performance. In particular, these
include statements relating to future actions, future performance
or results of current and anticipated products, expenses, the
outcome of contingencies such as legal proceedings, dividend
payments and financial results. Other than in accordance with its
legal or regulatory obligations (including under the Market Abuse
Regulation, the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Conduct Authority), the Group
undertakes no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The reader should, however, consult any additional disclosures that
the Group may make in any documents which it publishes and/or files
with the LSE. All readers, wherever located, should take note of
these disclosures. Accordingly, no assurance can be given that any
particular expectation will be met and investors are cautioned not
to place undue reliance on the forward-looking
statements.
Forward-looking statements are subject to assumptions,
inherent risks and uncertainties, many of which relate to factors
that are beyond the Group's control or precise estimate. The Group
cautions investors that a number of important factors, including
those referred to in this document, could cause actual results to
differ materially from those expressed or implied in any
forward-looking statement. Any forward-looking statements made by
or on behalf of the Group speak only as of the date they are made
and are based upon the knowledge and information available to the
Directors on the date of this report.
BUSINESS
REVIEW
FY24 was a challenging year for
our business, with a difficult trading environment and considerable
macroeconomic uncertainty. Our largest market, the USA, continues
to face two significant external headwinds, namely weak consumer
confidence impacting spending and a particularly challenging boots
segment, which was down 17% for the year overall (source: Circana
data). This resulted in widespread caution from wholesale
customers, leading to weaker wholesale order books, as well as
impacting our DTC ('Direct-to-consumer') performance. The USA has
the highest wholesale penetration of any major market, and
therefore the weak performance here had a significant impact on our
business overall. We have a new leadership team in the Americas
which is still embedding, and our marketing and trading execution
during the year was not as strong as it should have been. In the
next section we detail the changes we're making in our marketing
approach and the action plan we're implementing to reignite demand
in this market.
In FY24 we took the strategic
decision to reduce the breadth and depth of volume we sell to EMEA
etailers, which reduced wholesale revenues in this region. The
11.8% EMEA DTC growth is therefore more indicative of our
underlying performance, albeit it was partially flattered by the
earlier timing of Easter. Within EMEA, our conversion markets of
Germany, Italy and Spain saw strong double-digit DTC growth and UK
DTC growth was positive, although at a lower level. Japan makes up
the majority of our APAC region and we saw continued good growth in
this largely DTC market.
We achieved significant supply chain savings
through the year, which benefited gross margin. These savings were
due to our supply chain transformation strategy together with a
relatively benign sourcing backdrop. The ongoing supply chain
transformation has steadily increased direct control over our
supply chain inputs, from around 10% five years ago to around 70%
today. This has enabled improved quality and consistency,
diversification of risk from single point dependency and direct
negotiation of costs. The savings delivered in FY24 as a result of
this strategy include lower costs for key components, factory
benchmarking to align profit, re-negotiation of our inbound
shipping contract and optimisation and re-tender of retail outbound
freight.
Our product strategy is 'icons and
innovation', meaning that we aim to grow revenue of our iconic
continuity products through constant innovation around this core,
to drive brand heat and newness. We aim to grow all three
categories of boots, shoes and sandals simultaneously. Pairs sold
declined by 17% year-on-year, however this was entirely due to
weakness in wholesale orders, with DTC pairs up 7%. By category,
DTC pairs for both shoes and sandals grew more than 20%
year-on-year, whilst DTC boots pairs saw a small decline. Growing
shoes and sandals, alongside growing boots, is an important part of
our strategy to broaden our product portfolio over the medium-term,
and we saw particularly good success during the year with our mules
range within sandals and loafers within shoes. We are steadfastly
focused on growing our boots category, with this accounting for 66%
of Group revenues in FY24.
During AW23 we launched a capsule collection of our new Amp
category: 14XX. Amp and 14XX
represents the pinnacle of our creative expression, with
cutting-edge innovation at the forefront while still remaining true
to our product handwriting and design principles of durability and
versatility. The capsule collection, built around our original 1460
boot, 1461 shoe and 2976 Chelsea boot, saw encouraging consumer
feedback and in AW24 we will launch a larger 14XX range to
consumers. The purpose of these collections is to create a 'trickle
down' effect, creating demand for the mainline product
range.
Collaborations have always
been an important part of our product strategy, being an incubator
for future product success and scale, whilst also driving brand
heat. In FY24 our collaborations included a partnership with
Lagos-born, London-based collective Motherlan, which reinterpreted
our 1461 shoe. We also worked with streetwear brand Girls Don't Cry
with our creeper shoe, which was released through our ecommerce
channels globally together with Dover Street Market locations and
sold out worldwide within 48 hours. As part of our celebration of
10 years of the Jadon, our biggest product within our Fusion
category and one of our four icon products, we launched a
collaboration with fashion-forward brand Ganni, with a high impact
activation event in New York. We also returned to our highly
successful partnership with Rick Owens, this time creating two
iterations of our 1460 boot together with our 18 eyelet 1918 boot.
These boots stood on our inflated DMXL sole which originated in our
14XX range. Exaggerating our classic construction, the sole
combines lightweight EVA with durable PVC pods.
The business continues on a
professionalisation journey, of which a key element is the next
phase of our technology investment
programme. The projects currently underway are the Customer
Data Platform and the Supply and Demand Planning System. The
Customer Data Platform will give us a single customer view across
both DTC channels (retail and ecommerce), enabling more targeted
marketing and consumer engagement. The Supply and Demand Planning
System is a modern and agile planning system, which will improve
availability and accuracy of product forecasting. This will
drive meaningful working capital savings, beginning in FY26.
Alongside these two projects we have a number of other technology
workstreams underway to improve our data capabilities, increase our
speed of decision making and drive efficiency.
We continue to make significant strides in
sustainability. Our Science Based Targets were verified and
approved by the Science Based Target Initiative in October.
We have committed to reducing our absolute greenhouse gas emissions
aligned with the Science Based Targets initiative to achieve
near-term reduction targets by 2030 and Net Zero by
FY40.
In October we launched our
Authorised Repair service to
consumers in the UK. The service enables consumers to repair
their Dr. Martens products, working with a third-party repair
partner and using our own machines and materials. Consumer reaction
so far has been very encouraging and we will look to roll this out
in our other key markets in the future.
In March we launched our own
resale offering in the USA, named
ReWair. We repair and restore second hand Dr. Martens
products and sell them through a directly run dedicated resale
site. ReWair is an important part of our Net Zero by FY40 target as
the carbon generated from a resale is substantially lower than a
new product. Although relatively early days, performance since
launch has exceeded expectations, for both revenue and conversion
rate, and we've had high positive engagement on social
media.
In late March we also launched
three products in Genix Nappa, a
new upper material made from reclaimed leather. This is an
important step in our efforts to achieve our target of 100% of
products made from sustainable materials by 2040. It is early days,
however press and consumer engagement has been
positive.
LOOKING TO FY25 AND
BEYOND
FY25 will be a year of transition for our
business. In EMEA and APAC regions
we will continue to execute our successful DOCS strategy, to take
advantage of the significant whitespace growth opportunity in
both.
We continue to see good brand metrics
globally. Total brand awareness has
increased by 2% to 74%. In EMEA, our key conversion markets of
Germany, Italy and Spain each saw brand awareness growth of
2-3%pts. Our home market of UK saw a marginal decline in brand
awareness although this remains significantly above the Group at
92%. In Japan our brand awareness increased by 1%pts to 53%, with
continued opportunity to close the gap to the Group
average.
In the USA, where we have seen a
disappointing trading performance, brand awareness is flat at 73%,
however we have seen a meaningful decline in consideration from
consumers who have not purchased recently and therefore our efforts
will be particularly focused on broadening our appeal to attract
new consumers.
Under the direction of Ije
Nwokorie, in his current role as Chief Brand Officer (CBO), we are
shifting our marketing efforts
globally from storytelling focused on culture to a relentless focus
on product marketing. Our AW24 marketing will lead and be
dominated by boots and the marketing organisation has been
reorganised to product-led marketing, centred around
icons.
The USA remains our number one priority across the
business and we are
implementing a detailed action plan to return this business to
growth, targeting a return to positive DTC growth in H2 FY25.
Against this action plan we are increasing marketing investment as
a percentage of revenue in the USA in the year ahead, whilst
ensuring that we maximise the return and efficiency of this spend.
The key pillars of this action plan are:
- Marketing: We will have an
'always on' product marketing approach to icons, a re-energisation
of boots in AW24 and four key seasonal boot stories to ensure we
drive newness and excitement. Marketing spend will be increased on
mid to lower funnel activity, to drive consideration.
- Digital:
We will improve the quality of our product detail
pages and optimise our checkout process to maximise ecommerce
conversion. We will seek to drive more qualified traffic to our
site, again to improve conversion. Finally, we will implement an
order in store offering.
- Wholesale:
Given the nature of wholesale order books, there
will be a lag between when we see our USA DTC performance improve
and when our wholesale business will return to growth. Our
expectation is that we won't see an in-market restock driving a
recovery in our USA wholesale revenues until AW25 at the earliest,
which equates to the second half of FY26. We therefore anticipate
our USA wholesale revenue declining double-digit percentage in
FY25. Through FY25, however, we will work with key USA wholesale
customers to focus actions on driving boots sell-through in
store.
Over recent years we have invested
in the business and built an operating cost base in anticipation of
a larger business, and with revenues weaker we are therefore seeing
significant deleverage. Alongside our action plan to reignite DTC
boots growth, we will also be implementing a cost action plan across
the Group, led by new CFO Giles Wilson and the leadership team. We
will target £20m to £25m of cost reduction, with savings from
organisational efficiency and design, better procurement and
operational streamlining. We will see the benefit of this saving in
FY26, with the FY25 benefit likely to be immaterial due to the
costs of implementation. Further details and a progress update will
be provided at our first half results in November.
FINANCE
REVIEW
Total revenue declined 12.3% (9.8%
CC) with 2.4% growth in DTC (4.9% CC) offset by a 28.3% decline in
wholesale revenues (-26.0% CC). Profit before tax (before FX
charge) was £97.2m (FY23: £170.1m), down 42.9%, reflecting lower
EBITDA, increased depreciation and amortisation charges due to
continued investments in new stores and IT projects, and higher
rate-led interest costs. Earnings per share declined by 45.7% to
7.0p.
Results - at a glance
£m
|
|
FY24
|
FY23
|
% change
Actual
|
% change
CC4
|
Revenue
|
Ecommerce
|
276.3
|
279.0
|
-1.0%
|
1.0%
|
|
Retail
|
256.8
|
241.7
|
6.2%
|
9.5%
|
|
DTC
|
533.1
|
520.7
|
2.4%
|
4.9%
|
|
Wholesale3
|
344.0
|
479.6
|
-28.3%
|
-26.0%
|
|
|
877.1
|
1,000.3
|
-12.3%
|
-9.8%
|
Gross margin
|
|
575.2
|
618.1
|
-6.9%
|
|
Opex
|
|
(377.7)
|
(373.1)
|
1.2%
|
|
EBITDA1
|
|
197.5
|
245.0
|
-19.4%
|
|
Depreciation &
Amortisation
|
|
(72.3)
|
(54.2)
|
33.4%
|
|
EBIT1
|
|
122.2
|
176.2
|
-30.6%
|
|
|
|
|
|
|
|
Profit before tax (before FX charge)
1
|
|
97.2
|
170.1
|
-42.9%
|
|
Profit before tax
|
|
93.0
|
159.4
|
-41.7%
|
|
Profit after tax
|
|
69.2
|
128.9
|
-46.3%
|
|
Basic earnings per share
(p)
|
|
7.0
|
12.9
|
-45.7%
|
|
Dividend per share (p)
|
|
2.55
|
5.84
|
-56.3%
|
|
|
|
|
|
|
|
Key statistics
|
Pairs sold (m)
|
11.5
|
13.8
|
-17%
|
|
|
No. of stores2
|
239
|
204
|
17%
|
|
|
DTC mix %
|
61%
|
52%
|
+9pts
|
|
|
Gross margin %
|
65.6%
|
61.8%
|
+3.8pts
|
|
|
EBITDA margin %1
|
22.5%
|
24.5%
|
-2.0pts
|
|
1.
Alternative Performance Measure (APM) as defined
in the Glossary on pages 66 and 67.
2. Own stores
on streets and malls operated under arm's length leasehold
arrangements.
3. Wholesale
revenue including distributor customers.
4. Constant
currency applies the same exchange rate to the FY24 and FY23
non-GBP results, based on FY24 budgeted rates.
PERFORMANCE BY CHANNEL
Revenue decreased by 12.3% to
£877.1m (FY23: £1,000.3m), down 9.8% on a CC basis. DTC grew 2.4%
to £533.1m (FY23: £520.7m), up 4.9% on a CC basis, representing 61%
of revenue mix. Wholesale revenues declined 28.3% to £344.0m (FY23:
£479.6m), down 26% on a CC basis. The wholesale channel was
impacted both by planned strategic decisions to reduce volumes into
EMEA etailers and cease the distributor contract in China, and very
weak wholesale orders in USA due to widespread caution from
wholesale customers. Volume, represented by pairs sold, declined
17% to 11.5m pairs with all the reduction in wholesale; DTC volume
increased 7%.
Ecommerce revenue was down
1.0% to £276.3m (FY23: £279.0m) and was up 1.0% on a CC basis which
represented a revenue mix of 32% (FY23: 28%). Good growth
throughout the year in both EMEA (up 9.6% CC) and APAC (up 12.5%
CC), was offset by continued weak trading in USA, (down 9.9% CC).
We saw traffic growth in EMEA and APAC, whilst in USA traffic
declined. Ecommerce conversion improved in all three regions.
Following the implementation of an order management system ("OMS")
in EMEA, we successfully rolled out a full omnichannel offer across
all UK stores with Continental Europe to follow in FY25.
Retail revenue grew 6.2% to
£256.8m (FY23: £241.7m), up 9.5% on a CC basis. Growth was led by
new and maturing stores (stores opened last financial year) across
all geographies, with continued footfall recovery in EMEA and APAC,
offset by footfall decline in USA. We also benefitted from the
transfer of 14 Japan franchise stores at the end of FY23. During
the year, we opened 46 new stores and closed 11 stores, to end the
year with 239 own stores.
Wholesale revenue was down
28.3% to £344.0m (FY23: £479.6m), 26.0% lower on a CC basis. As
previously announced, we took three strategic decisions which
impacted wholesale revenues this year. Firstly, we significantly
reduced the quantity and breadth of product sold into EMEA
etailers, in order to ensure scarcity of supply in the region and
migrate sales to our own websites. We also ceased sales to
our distributor in China ahead of the contract ending in June 2023,
and in USA we worked with two large wholesale accounts who had
excess inventory, reducing shipments through the first half in
order to right size their inventory positions. In addition to these
strategic decisions, revenues were impacted by widespread caution
amongst wholesale customers in the USA, resulting in a
significantly weaker USA order book year-on-year.
The total number of wholesale
accounts globally decreased to 1.6k after closing c.500 accounts
and opening c.200 accounts. Total revenues per account declined by
18%.
PERFORMANCE BY REGION
£m
|
|
FY24
|
FY23
|
% change
Actual
|
% change
CC
|
Revenue:
|
EMEA
|
431.8
|
443.0
|
-2.5%
|
-3.0%
|
|
Americas
|
325.8
|
428.2
|
-23.9%
|
-20.2%
|
|
APAC
|
119.5
|
129.1
|
-7.4%
|
0.5%
|
|
|
877.1
|
1,000.3
|
-12.3%
|
-9.8%
|
|
|
|
|
|
|
EBITDA1:
|
EMEA
|
140.8
|
146.1
|
-3.6%
|
|
|
Americas
|
64.4
|
100.1
|
-35.7%
|
|
|
APAC
|
31.7
|
33.8
|
-6.2%
|
|
|
Support costs2
|
(39.4)
|
(35.0)
|
12.6%
|
|
|
|
197.5
|
245.0
|
-19.4%
|
|
|
|
|
|
|
|
EBITDA1 margin by region:
|
EMEA
|
32.6%
|
33.0%
|
-0.4pts
|
|
|
Americas
|
19.8%
|
23.4%
|
-3.6pts
|
|
|
APAC
|
26.5%
|
26.2%
|
+0.3pts
|
|
|
Total
|
22.5%
|
24.5%
|
-2.0pts
|
|
1.
Alternative Performance Measure (APM) as defined
in the Glossary on pages 66 and 67.
2.
Support costs represent group related support
costs not directly attributable to each region's operations and
including Group Finance, Legal, Group HR, Global Brand and Design,
Directors and other group only related costs and
expenses.
EMEA Revenue was down 2.5% to
£431.8m (FY23: £443.0m) and down 3.0% on a CC basis. DTC grew by
11.8% (10.7% CC) with retail and ecommerce both up 11.8% (11.9% CC
and 9.6% CC respectively). DTC mix grew by 7.7%pts, with DTC growth
in all core markets (UK and France both up low single-digits, with
Germany, Spain and Italy all up over 25% on a CC basis). DTC growth
was offset by wholesale revenue down 19.2% as expected, due to the
strategic decision to reduce volume and breadth sold to
etailers.
During the year we opened 20 new
stores: six stores in Italy, four stores each in Germany and UK,
two stores each in Spain and Belgium, one store in France and our
first store in Denmark. Included in the new store openings were six
locations that were closed and relocated to more prominent
positions in Belgium, Germany and UK.
EMEA EBITDA was down 3.6% to
£140.8m (FY23: £146.1m), with EBITDA margin 32.6%, 0.4%pts lower
than last year, impacted by foreign exchange on purchases and the
opex investments including the expansion of retail stores and
investment in brand and demand marketing.
Americas Revenue was down
23.9% to £325.8m (FY23: £428.2m) (20.2% CC). DTC revenue was down
6.9% with lower footfall and traffic in retail and ecommerce
respectively only partly mitigated by new and maturing stores and
better conversion across both channels. DTC mix increased by
8.3%pts. Wholesale revenue declined 32.7% on a CC basis, partly due
to the strategic decision to manage down inventory of some of our
larger wholesale customers but also driven by widespread caution
from wholesale customers resulting in weaker order books. We
maintained a disciplined approach to wholesale, and at the end of
the financial year the average inventory position of our top ten
USA wholesale customers was down around a quarter compared to the
prior year.
During the year we opened 7 new
stores: two in LA and one in each Washington DC, Miami,
Philadelphia, San Antonio and Denver. We also improved picking
automation in our Los Angeles distribution centre ("LADC"),
expanded operational functionality and space in the New Jersey
distribution centre ("NJDC") and relocated our Canada distribution
centre from the West Coast to Toronto.
Americas EBITDA was 35.7% lower at
£64.4m (FY23: £100.1m) with EBITDA margin 3.6%pts lower than last
year, reflecting lower revenue together with additional storage
costs of £13.1m due to the elevated inventory levels in this
market.
APAC Revenue was down 7.4% to
£119.5m (FY23: £129.1m) (+0.5% CC). We saw lower revenue in China
due to the planned exit of the distributor contract in June 2023
and in Japan we transferred 14 franchise stores at the end of last
financial year; these two factors drove APAC wholesale revenue down
24.0% on a CC basis. DTC revenues grew 18.8%, improving DTC mix by
10.4%pts, with both retail and ecommerce growing double-digits.
This was led by Japan with DTC revenues up 35.5% with both
underlying growth and the benefit of the franchise stores transfer
at the end of FY23.
During the year we opened 19 new
stores with six stores each in Japan and South Korea, five in China
and two in Hong Kong.
APAC EBITDA was down 6.2% to
£31.7m (FY23: £33.8m) and EBITDA margin up 0.3%pts due to increased
mix from Japan (our most profitable market), partly offset by lower
EBITDA in China (as a result of lower distributor revenue in the
period across a fixed cost base).
RETAIL STORE ESTATE
During the year, we opened 46
(FY23: 52) new own retail stores (via arm's length leasehold
arrangements) and closed 11 (FY23: 6) stores as follows:
|
|
1 April
2023
|
|
Opened
|
|
Closed
|
|
31 March
2024
|
EMEA:
|
UK
|
33
|
|
4
|
|
(2)
|
|
35
|
|
Germany
|
17
|
|
4
|
|
(2)
|
|
19
|
|
France
|
16
|
|
1
|
|
-
|
|
17
|
|
Italy
|
6
|
|
6
|
|
-
|
|
12
|
|
Spain
|
4
|
|
2
|
|
-
|
|
6
|
|
Other
|
12
|
|
3
|
|
(2)
|
|
13
|
|
|
88
|
|
20
|
|
(6)
|
|
102
|
|
|
|
|
|
|
|
|
|
Americas:
|
|
54
|
|
7
|
|
-
|
|
61
|
|
|
|
|
|
|
|
|
|
APAC:
|
Japan
|
40
|
|
6
|
|
(3)
|
|
43
|
|
China
|
5
|
|
5
|
|
(1)
|
|
9
|
|
South Korea
|
11
|
|
6
|
|
-
|
|
17
|
|
Hong Kong
|
6
|
|
2
|
|
(1)
|
|
7
|
|
|
62
|
|
19
|
|
(5)
|
|
76
|
|
|
|
|
|
|
|
|
|
Total
|
|
204
|
|
46
|
|
(11)
|
|
239
|
The Group also trades from 22
(FY23: 28) concession counters in department stores in South Korea
and a further 77 (FY23: 119) mono-branded franchise stores around
the world with no stores in China (FY23: 55, the decline being due
to the end of the distributor contract), 19 in Japan (FY23: 16), 24
across Australia and New Zealand (FY23: 20), 34 across other South
East Asia countries, the Nordics and Canada (FY23: 28).
ANALYSIS OF PERFORMANCE BY HALF YEAR
Revenue in H2 was down 17.3% to
£481.3m (FY23: £581.7m) (down 14.5% CC) with EBITDA down 23.2% to
£119.9m (FY23: £156.2m).
Ecommerce revenue was up 5.1% in
H1 and down 1.0% in H2 on a CC basis. In retail, revenue grew in
both halves of the financial year led by new and maturing stores
and continued footfall recovery in both EMEA and APAC. Both EMEA
and APAC were impacted by strategic decisions, of reducing EMEA
etailer volumes and ceasing the distributor in China
respectively. In Americas, revenue was down in both halves as
expected, predominantly driven by wholesale.
|
|
H1 FY24
|
|
H2 FY24
|
|
|
Actual
|
CC
|
|
Actual
|
CC
|
Total Revenue
|
|
-5.4%
|
-3.5%
|
|
-17.3%
|
-14.5%
|
|
|
|
|
|
|
|
Channel:
|
Ecommerce
|
3.3%
|
5.1%
|
|
-2.9%
|
-1.0%
|
|
Retail
|
15.1%
|
17.4%
|
|
0.9%
|
4.6%
|
|
DTC
|
9.2%
|
11.3%
|
|
-1.2%
|
1.5%
|
|
Wholesale1
|
-16.5%
|
-14.7%
|
|
-40.0%
|
-37.4%
|
|
|
|
|
|
|
|
Region:
|
EMEA
|
8.5%
|
7.5%
|
|
-10.0%
|
-10.1%
|
|
Americas
|
-17.8%
|
-14.6%
|
|
-28.3%
|
-24.3%
|
|
APAC
|
-10.0%
|
-3.3%
|
|
-5.2%
|
3.6%
|
|
|
|
|
|
|
|
1. Wholesale revenue including
distributor customers.
|
|
|
|
|
|
ANALYSIS OF PERFORMANCE BY QUARTER
DTC Revenue in Q4 showed a return
to growth at 9.7% CC vs a 3.2% CC decline in Q3, however this
benefitted from the timing of Easter and the end of season sale,
which moved from Q1 FY25 (as is typically the case) to Q4 FY24.
Retail grew in all quarters on a CC basis led by new and maturing
stores and continued footfall recovery, supported by volume growth
in EMEA and APAC. Ecommerce grew in the first half, declined in Q3,
before returning to positive growth in Q4, again helped by timing
changes.
Wholesale was down in all quarters
due a combination of the strategic decisions taken in EMEA and
APAC, together with the continued challenging backdrop in the
USA.
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
|
Actual
|
CC
|
|
Actual
|
CC
|
|
Actual
|
CC
|
|
Actual
|
CC
|
Total Revenue
|
|
-11.0%
|
-11.2%
|
|
-2.2%
|
1.3%
|
|
-20.5%
|
-17.9%
|
|
-12.9%
|
-9.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
Ecommerce
|
7.3%
|
6.8%
|
|
0.1%
|
3.8%
|
|
-9.3%
|
-7.6%
|
|
9.5%
|
11.8%
|
|
Retail
|
27.4%
|
27.2%
|
|
5.6%
|
9.5%
|
|
-0.1%
|
2.9%
|
|
2.6%
|
7.4%
|
|
DTC
|
17.4%
|
17.1%
|
|
2.9%
|
6.7%
|
|
-5.4%
|
-3.2%
|
|
6.2%
|
9.7%
|
|
Wholesale1
|
-41.1%
|
-41.0%
|
|
-5.3%
|
-2.1%
|
|
-48.6%
|
-46.1%
|
|
-31.7%
|
-29.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Region:
|
EMEA
|
-1.4%
|
-2.7%
|
|
13.8%
|
13.1%
|
|
-14.5%
|
-14.9%
|
|
-3.0%
|
-2.6%
|
|
Americas
|
-26.3%
|
-26.5%
|
|
-12.3%
|
-6.3%
|
|
-30.8%
|
-26.3%
|
|
-25.2%
|
-21.9%
|
|
APAC
|
12.2%
|
16.1%
|
|
-21.7%
|
-13.9%
|
|
-8.0%
|
-1.1%
|
|
-1.9%
|
9.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Wholesale revenue including
distributor customers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA ANALYSIS
Gross margin improved by
3.8pts to 65.6% with the biggest benefit being from supply chain
savings, together with the benefits of new and maturing stores and
price net COGS inflation. In the year, the average price increase
was 4.5% and COGs inflation was approximately 6%.
Operating expenses increased
by 1.2%, or £4.6m, to £377.7m. Within this movement we benefitted
from supply chain savings, which were offset by the operating cost
drag from new and maturing stores, together with a small
year-on-year increase in marketing spend. The supply chain savings
were the result of continued good cost control, including lower
volume-related costs and retail outbound freight savings. Within
our operating costs we incurred £13.1m (FY23: £14.5m) in relation
to temporary inventory storage space rented in LA, given the
elevated inventory levels in this market.
EBITDA decreased by 19.4% to
£197.5m (FY23: £245.0m) resulting in an EBITDA margin decrease of
2.0pts to 22.5%. Increased costs (as a percentage of revenue) were
partially offset by supply chain savings.
EBIT decreased by 30.6% to
£122.2m as a result of the decline in EBITDA together with
increased depreciation and amortisation.
EARNINGS
The following table analyses the
results for the year from EBITDA to profit before
tax.
£m
|
|
FY24
|
FY23
|
EBITDA1
|
|
197.5
|
245.0
|
Depreciation and
amortisation
|
|
(72.3)
|
(54.2)
|
Impairment
|
|
-
|
(3.9)
|
Other gains
|
|
1.2
|
-
|
Foreign exchange losses
|
|
(4.2)
|
(10.7)
|
EBIT1
|
|
122.2
|
176.2
|
Net interest cost on bank
debt
|
|
(19.4)
|
(10.8)
|
Amortisation of loan issue
costs/interest on lease liabilities
|
|
(9.8)
|
(6.0)
|
Profit before tax
|
|
93.0
|
159.4
|
Tax
|
|
(23.8)
|
(30.5)
|
Earnings
|
|
69.2
|
128.9
|
1. Alternative Performance Measure (APM) as defined in the
Glossary on pages 66 and 67.
Profit before tax (including
FX charge) declined by 41.7% to £93.0m (FY23: £159.4m) with profit
after tax of £69.2m (FY23: £128.9m). This was primarily due to
lower EBITDA together with higher depreciation and amortisation
costs and higher interest costs.
Depreciation and amortisation
charged in the period was £72.3m (FY23: £54.2m), and is analysed as
follows:
£m
|
FY24
|
FY23
|
Amortisation of
intangibles1
|
5.8
|
8.4
|
Depreciation of property, plant and
equipment2
|
15.2
|
13.6
|
|
21.0
|
22.0
|
Depreciation of right-of-use
assets3
|
51.3
|
32.2
|
Total
|
72.3
|
54.2
|
1. Mainly represented by IT related spend with the average term
of 5 to 15 years.
2. Mainly represented by new store fit out costs with the
average term of 5 years.
3. Mainly represented by depreciation of IFRS 16 capitalised
leases with the average term remaining of 3.8 years and 263
properties (FY23: 5.1 years and 229 properties).
Foreign Exchange
Dr. Martens is a global brand
selling to consumers across the world in many different currencies,
with the financial statements reported in GBP. Foreign currency
amounts in the profit or loss account are prepared on an average
actual currency rate basis for the year. These exchange rates are
calculated monthly and applied to revenue and costs generated in
that month, such that the actual performance translated across the
year is dependent on monthly trading profiles as well as movement
in currency exchange rates. To aid comparability of underlying
performance, we have also calculated constant currency for revenue.
This is calculated by translating non-sterling revenues at the same
exchange rate year on year.
Foreign exchange exposures mainly
impacting the Group are £/$, £/€ and £/¥. The following table
summarises average exchange rates used in the year:
|
£/$
|
|
£/€
|
|
£/¥
|
|
FY24
|
FY23
|
%
|
|
FY24
|
FY23
|
%
|
|
FY24
|
FY23
|
%
|
H1
|
1.26
|
1.22
|
3%
|
|
1.16
|
1.17
|
-1%
|
|
178
|
163
|
9%
|
H2
|
1.26
|
1.19
|
6%
|
|
1.16
|
1.14
|
2%
|
|
186
|
163
|
14%
|
FY
|
1.26
|
1.21
|
4%
|
|
1.16
|
1.16
|
0%
|
|
182
|
163
|
12%
|
The Group takes a holistic
approach to exchange rate risk, monitoring exposures on a
Group-wide, net cashflow basis, seeking to maximise natural offsets
wherever possible. While COGs purchases for the Group are
predominantly denominated in USD, foreign exchange risk on this
currency is partially offset from USD revenues earned in Americas
and from distributor revenues, which are also largely USD
denominated. Where a net foreign currency exposure is considered
material, the Group seeks to reduce volatility from exchange
movements by using derivative financial instruments. During the
period, a £1.5m gain was recorded in revenues related to
derivatives partially hedging the net EUR inflows.
Retranslation of foreign currency
denominated monetary assets and liabilities in the year resulted in
a foreign exchange loss of £4.2m (FY23: loss £10.7m). This was
predominantly due to the revaluation of receivable balances
following the appreciation of GBP against EUR and USD.
Interest
The Group's exposure to changes in
interest rates relates primarily to cash investments, borrowings,
and IFRS 16 lease liabilities. Total Group interest costs for the
year were £29.2m, £12.4m higher than prior year (FY23 £16.8m)
primarily due to increases in bank debt related borrowing expenses
of £22.3m (FY23: £12.7m). The increase compared to the prior year
was driven from a higher benchmark EURIBOR rate and interest costs
of the in-year drawn RCF amounts. This was partially offset by a
£1.3m gain on higher interest receivables from cash investments. In
addition, we incurred higher interest costs on lease liabilities of
£3.8m due to new stores opened in the year.
The tax charge was £23.8m
(FY23: £30.5m) with an effective tax rate of 25.6% (FY23: 19.1%)
which is slightly higher than the UK corporate tax rate of 25.0%,
due mainly to overseas tax rates and deferred tax on temporary
differences. The effective tax rate was higher than last year due
to the increase in UK tax rate from 19.0% to 25.0% on 1 April
2023.
Earnings per share was 7.0p
(FY23: 12.9p). The total number of diluted shares is detailed in
note 9 in the financial statements. The following table summarises
these EPS figures:
|
|
FY24 pence
|
FY23
pence
|
% change
|
Earnings per share
|
Basic
|
7.0
|
12.9
|
-46%
|
|
Diluted
|
7.0
|
12.9
|
-46%
|
EPS and diluted EPS for the
current and prior year are presented as the same amount due to the
minimal dilutive impact of share options on the total diluted share
number.
OPERATING CASH FLOW
£m
|
FY24
|
FY23
|
EBITDA1
|
197.5
|
245.0
|
Increase in
inventories
|
(1.6)
|
(133.2)
|
Decrease/(increase) in
debtors
|
23.0
|
(6.6)
|
Increase in
creditors
|
(37.7)
|
(9.2)
|
Total change in net working
capital
|
(16.3)
|
(149.0)
|
Share-based payments
|
4.0
|
0.5
|
Capital expenditure
|
(28.4)
|
(51.2)
|
Operating cash flow1
|
156.8
|
45.3
|
Operating cash flow
conversion1
|
79%
|
18%
|
1. Alternative Performance Measure (APM) as defined in the
Glossary on pages 66 and 67.
Operating cash inflow was
£156.8m (FY23: £45.3m) representing a cash conversion of EBITDA of
79% (FY23 18%), in line with guidance.
Trade debtor days remained at 52
days, primarily due to customer mix with a higher proportion of
Americas debtors (with debtor days at 55) than EMEA (with debtor
days at 48).
Capex was £28.4m (FY23:
£51.2m) and represented 3.2% of revenue (FY23: 5.1%). The breakdown
in capex by category is as follows:
£m
|
FY24
|
FY23
|
Retail stores
|
14.4
|
18.9
|
Supply Chain
|
2.7
|
19.2
|
IT/Tech
|
11.3
|
13.1
|
|
28.4
|
51.2
|
Net cash flow after interest
Net cash flow after interest costs
is summarised below:
£m
|
FY24
|
FY23
|
Operating cash flow1
|
156.8
|
45.3
|
Net interest paid
|
(17.0)
|
(5.6)
|
Investment
Payment of lease
liabilities
|
-
(52.2)
|
(1.0)
(33.9)
|
Taxation
|
(18.8)
|
(22.3)
|
Repurchase of shares
|
(50.5)
|
-
|
Derivatives settlement
|
(4.0)
|
3.1
|
Dividends paid
|
(57.8)
|
(58.4)
|
Net cash outflow
|
(43.5)
|
(72.8)
|
Opening cash
|
157.5
|
228.0
|
Net cash exchange
translation
|
(2.9)
|
2.3
|
Closing cash
|
111.1
|
157.5
|
1. Alternative Performance Measure (APM) as defined in the
Glossary on pages 66 and 67.
Net interest paid was £17.0m,
higher than FY23 by £11.4m due to the timing of interest payments
and higher interest rates, which were partially offset by higher
interest receivables from cash investments. The increase in lease
liabilities was due mainly to the increased number of retail stores
opened in the period under lease arrangements and increased space
across the DC network.
Funding and Leverage
The Group is funded by cash, bank
debt and equity. Further details on the capital structure and debt
are given in note 17 of the financial statements. The Group's bank
debt is denominated in Euros which allows the excess Euros the
Group generates from trading in Continental Europe to fund interest
costs. The bank debt falls due for repayment in full on 2 February
2026. The Group also has a revolving credit facility of £200.0m
which also matures on 2 February 2026 with £30.0m drawn down and
subsequently fully repaid during the period. Included in this
facility is a committed line of £3.4m used for guarantee
arrangements primarily for landlord rent guarantees.
The group financing arrangements
are subject to a total net leverage covenant test every six months.
The total net leverage test is calculated with a full 12 months of
EBITDA and net debt being inclusive of IFRS 16 lease liabilities at
the balance sheet date. At 31 March 2024 the Group had total net
leverage of 1.8 times (FY23: 1.2 times).
BALANCE SHEET
£m
|
31 March
2024
|
31
March
2023
|
Freehold property
|
7.0
|
7.4
|
Right-of-use assets
|
173.5
|
144.1
|
Other fixed assets
|
81.7
|
78.8
|
Inventory
|
254.6
|
257.8
|
Debtors
|
70.4
|
92.2
|
Creditors2
|
(100.7)
|
(133.7)
|
Working capital
|
224.3
|
216.3
|
Other1
|
(1.5)
|
5.2
|
Operating net assets
|
485.0
|
451.8
|
Goodwill
|
240.7
|
240.7
|
Cash
|
111.1
|
157.5
|
Bank debt
|
(288.6)
|
(296.8)
|
Unamortised bank fees
|
2.3
|
3.4
|
Lease liabilities
|
(182.3)
|
(152.4)
|
Net assets
|
368.2
|
404.2
|
1. Other includes investments, deferred tax assets, income tax
assets, and provisions.
2. Includes bank interest of £8.4m (FY23: £6.0m).
Net Debt1 is summarised below:
£m
|
31 March
2024
|
31
March
2023
|
Bank loans
|
(286.3)
|
(293.4)
|
Cash
|
111.1
|
157.5
|
Net bank loans
|
(175.2)
|
(135.9)
|
Lease liabilities
|
(182.3)
|
(152.4)
|
Net Debt1
|
(357.5)
|
(288.3)
|
1. Alternative
Performance Measure (APM) as defined in the Glossary on pages 66
and 67.
Inventory
Given the high proportion of
continuity products we sell, with four out of five pairs being
black and having a strong product margin structure, we have minimal
markdown risk below cost. Inventory levels are currently at
elevated levels in our Americas business. As a result we have
reduced purchases for the year ahead and are targeting a reduction
in inventory in FY25.
|
31 March
2024
|
31
March
2023
|
Inventory (£m)
|
254.6
|
257.8
|
Turn (x)1
|
1.2x
|
1.5x
|
Weeks cover2
|
44
|
35
|
1. Calculated as historic LTM COGS divided by
inventory.
2. Calculated as 52 weeks divided by stock turn.
Equity of £368.2m can be analysed
as follows:
£m
|
31 March
2024
|
Share capital
|
9.6
|
Hedging reserve
|
0.9
|
Capital redemption
reserve
|
0.4
|
Merger reserve
|
(1,400.0)
|
Non-UK translation
reserve
|
9.7
|
Retained earnings
|
1,747.6
|
Equity
|
368.2
|
RETURNS TO SHAREHOLDERS
Our capital allocation philosophy
guides our view of returns to shareholders and usage of excess
cash. The first priority for investment is into the business and we
will continue to invest in a targeted manner to support long-term
growth and resilience of the Group. This is mainly represented by
investment into marketing, logistics, people, systems and
inventory. Beyond this, our priority is to return excess cash to
shareholders, through a regular dividend and, when possible,
further returns.
Dividends
The Board has proposed, subject to
shareholder approval, a final dividend of 0.99p, taking the total
dividend for FY24, including the interim dividend of 1.56p, to
2.55p, a 35% payout ratio. Whilst this is a year-on-year reduction
given the higher payout in FY23 and lower earnings achieved this
year, the 35% payout for FY24 is at the top of the policy range.
The Board's intention is to hold the FY25
dividend flat in absolute terms, before returning to an earnings
payout in line with our dividend policy (of 25% to 35% payout) in
FY26 onwards.
Going forwards, the Board is also
adopting a consistent approach to setting the interim dividend,
with this dividend set at one-third of the previous year's total
dividend. We are also adjusting the payment dates for the
dividends, to better reflect the trading cash profile of the Group,
and therefore the final dividend will be paid in early October.
The final dividend for FY24 will be paid to
shareholders on the register as at 30 August 2024 with payment on 1
October 2024.
£m
|
|
FY24
|
FY23
|
|
|
|
|
Earnings
|
|
69.2
|
128.9
|
|
|
|
|
Interim dividend (declared and
paid): 1.56p (FY23: 1.56p)
|
|
15.0
|
15.6
|
Final dividend (proposed): 0.99p
(FY23: 4.28p)
|
|
9.5
|
42.8
|
Total dividend (paid and proposed): 2.55p (FY23:
5.84p)
|
|
24.5
|
58.4
|
|
|
|
|
Payout ratio %
|
|
35%
|
45%
|
Share Buyback
During the year to 31 March 2024
the Group repurchased 39.9m shares. The cash outflow was £50.5m
(including transaction costs of £0.5m) pursuant to the share
buyback scheme that was announced on 14 July 2023 and concluded
on 19 December 2023. For further details please refer to notes
23 and 24 of the Consolidated Financial Statements.
FY25 guidance
Our key targets for FY25
are:
- Positive USA DTC growth in the second half
- Inventory declining by c.£40m
- Net debt declining to £310m to £330m (including lease
liabilities)
Alongside this, our guidance for
FY25 is:
- USA wholesale revenue declining double-digit percentage in
FY25
- New own store openings of 25 to 30
- Depreciation and Amortisation of £75m to £80m
- Net finance costs of £27m to £30m
- Blended tax rate of c.27%
- Capex of around £40m
For the first half, we expect
a Group revenue decline of around 20%, driven by wholesale revenues
down around a third. Combined with the cost headwinds which impact
both halves, the impact of operational deleverage is significantly
more pronounced in the first half. Overall results this year will
therefore be very second-half weighted, particularly from a profit
perspective.
Consolidated Statement of Profit or Loss
For the year ended 31 March 2024
|
Note
|
FY24
£m
|
FY23
£m
|
Revenue
|
3
|
877.1
|
1,000.3
|
Cost of sales
|
|
(301.9)
|
(382.2)
|
Gross profit
|
|
575.2
|
618.1
|
Selling and administrative
expenses
|
4
|
(453.0)
|
(441.9)
|
Finance income
|
|
3.0
|
1.9
|
Finance expense
|
7
|
(32.2)
|
(18.7)
|
Profit before tax
|
|
93.0
|
159.4
|
|
|
|
|
EBITDA1
|
3
|
197.5
|
245.0
|
Depreciation and
amortisation
|
4
|
(72.3)
|
(54.2)
|
Impairment
|
4
|
-
|
(3.9)
|
Foreign exchange losses
|
|
(4.2)
|
(10.7)
|
Other gains
|
|
1.2
|
-
|
Net finance expense
|
|
(29.2)
|
(16.8)
|
Profit before tax
|
|
93.0
|
159.4
|
|
|
|
|
Tax expense
|
8
|
(23.8)
|
(30.5)
|
Profit for the year
|
|
69.2
|
128.9
|
|
Note
|
FY24
|
FY23
|
Earnings per share
|
|
|
|
Basic
|
9
|
7.0p
|
12.9p
|
Diluted
|
9
|
7.0p
|
12.9p
|
1. Alternative Performance Measure
(APM) as defined in the Glossary on pages 66 and 67.
The results for the years
presented above are derived from continuing operations and are
entirely attributable to the owners of the Parent
Company.
The notes on pages 18 to 54 form
part of these Consolidated Financial Statements.
Consolidated Statement of
Comprehensive Income
For the year ended 31 March 2024
|
Note
|
FY24
£m
|
FY23
£m
|
Profit for the year
|
|
69.2
|
128.9
|
|
|
|
|
Other comprehensive (expense)/income
|
|
|
|
Items that may subsequently be reclassified to profit or
loss
|
|
|
|
Foreign currency translation
differences
|
|
(2.8)
|
5.5
|
Cash flow hedges: Fair value
movements in equity
|
|
(1.8)
|
1.9
|
Cash flow hedges: Reclassified and
reported in profit or loss
|
19
|
3.9
|
(2.5)
|
Tax in relation to share
schemes
|
8
|
0.5
|
-
|
Tax in relation to cash flow
hedges
|
8
|
(0.7)
|
0.2
|
|
|
(0.9)
|
5.1
|
|
|
|
|
Total comprehensive income for the year
|
|
68.3
|
134.0
|
The notes on pages 18 to 54 form
part of these Consolidated Financial Statements.
Consolidated Balance Sheet
As at 31 March 2024
|
Note(s)
|
FY24
£m
|
FY23
£m
|
ASSETS
|
|
|
|
Non-current assets
|
|
|
|
Intangible assets
|
11
|
270.0
|
265.6
|
Property, plant and
equipment
|
12
|
59.4
|
61.3
|
Right-of-use assets
|
12
|
173.5
|
144.1
|
Investments
|
20
|
1.0
|
1.0
|
Derivative financial
assets
|
19
|
0.1
|
-
|
Deferred tax assets
|
22
|
11.2
|
11.8
|
|
|
515.2
|
483.8
|
Current assets
|
|
|
|
Inventories
|
13
|
254.6
|
257.8
|
Trade and other
receivables
|
14
|
68.8
|
93.0
|
Income tax assets
|
|
1.2
|
-
|
Derivative financial
assets
|
19
|
1.5
|
0.5
|
Cash and cash
equivalents
|
15
|
111.1
|
157.5
|
|
|
437.2
|
508.8
|
Total assets
|
|
952.4
|
992.6
|
|
|
|
|
LIABILITIES
|
|
|
|
Current liabilities
|
|
|
|
Trade and other
payables
|
16
|
(92.2)
|
(127.7)
|
Borrowings
|
17
|
(8.4)
|
(6.0)
|
Lease liabilities
|
17,
28
|
(47.0)
|
(28.1)
|
Derivative financial
liabilities
|
19
|
(0.1)
|
(1.3)
|
Income tax payable
|
|
(5.8)
|
(1.4)
|
|
|
(153.5)
|
(164.5)
|
Non-current liabilities
|
|
|
|
Borrowings
|
17
|
(286.3)
|
(293.4)
|
Lease liabilities
|
17,
28
|
(135.3)
|
(124.3)
|
Provisions
|
18
|
(6.3)
|
(4.4)
|
Deferred tax
liabilities
|
22
|
(2.8)
|
(1.8)
|
|
|
(430.7)
|
(423.9)
|
Total liabilities
|
|
(584.2)
|
(588.4)
|
Net
assets
|
|
368.2
|
404.2
|
|
|
|
|
EQUITY
|
|
|
|
Equity attributable to the owners of the
Parent
|
|
|
|
Ordinary share capital
|
23
|
9.6
|
10.0
|
Treasury shares
|
24
|
-
|
-
|
Hedging reserve
|
25
|
0.9
|
(0.5)
|
Capital redemption
reserve
|
25
|
0.4
|
-
|
Merger reserve
|
25
|
(1,400.0)
|
(1,400.0)
|
Foreign currency translation
reserve
|
25
|
9.7
|
12.5
|
Retained earnings
|
25
|
1,747.6
|
1,782.2
|
Total equity
|
|
368.2
|
404.2
|
The notes on pages 18 to 54 form
part of these Consolidated Financial Statements.
The Consolidated Financial
Statements on pages 13 to 54 were approved and authorised by the
Board of Directors on 29 May 2024 and signed on its behalf
by:
Kenny
Wilson
Giles Wilson
Chief Executive
Officer
Chief Financial Officer
Consolidated Statement of Changes
in Equity
For the year ended 31 March 2024
|
|
Ordinary share
capital
|
Treasury
shares
|
Hedging
reserve
|
Capital redemption
reserve
|
Merger
reserve
|
Foreign translation
reserve
|
Retained
earnings
|
Total
equity
|
|
Note(s)
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
At
1 April 2022
|
|
10.0
|
-
|
(0.1)
|
-
|
(1,400.0)
|
7.0
|
1,711.3
|
328.2
|
Profit for the year
|
|
-
|
-
|
-
|
-
|
-
|
-
|
128.9
|
128.9
|
Other comprehensive
(expense)/income
|
|
-
|
-
|
(0.4)
|
-
|
-
|
5.5
|
-
|
5.1
|
Total comprehensive (expense)/income
for the year
|
|
-
|
-
|
(0.4)
|
-
|
-
|
5.5
|
128.9
|
134.0
|
Dividends paid
|
10
|
-
|
-
|
-
|
-
|
-
|
-
|
(58.4)
|
(58.4)
|
Share-based payments
|
26
|
-
|
-
|
-
|
-
|
-
|
-
|
0.4
|
0.4
|
At
31 March 2023
|
|
10.0
|
-
|
(0.5)
|
-
|
(1,400.0)
|
12.5
|
1,782.2
|
404.2
|
Profit for the year
|
|
-
|
-
|
-
|
-
|
-
|
-
|
69.2
|
69.2
|
Other comprehensive
income/(expense)
|
|
-
|
-
|
1.4
|
-
|
-
|
(2.8)
|
0.5
|
(0.9)
|
Total comprehensive income/(expense)
for the year
|
|
-
|
-
|
1.4
|
-
|
-
|
(2.8)
|
69.7
|
68.3
|
Dividends paid
|
10
|
-
|
-
|
-
|
-
|
-
|
-
|
(57.8)
|
(57.8)
|
Shares issued
|
23
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Share-based payments
|
26
|
-
|
-
|
-
|
-
|
-
|
-
|
4.0
|
4.0
|
Repurchase of ordinary share
capital
|
23,
24
|
-
|
(50.0)
|
-
|
-
|
-
|
-
|
(0.5)
|
(50.5)
|
Cancellation of repurchased ordinary
share capital
|
23,
24
|
(0.4)
|
50.0
|
-
|
0.4
|
-
|
-
|
(50.0)
|
-
|
At
31 March 2024
|
|
9.6
|
-
|
0.9
|
0.4
|
(1,400.0)
|
9.7
|
1,747.6
|
368.2
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 18 to 54 form
part of these Consolidated Financial Statements.
Consolidated Statement of Cash
flows
For the year ended 31 March 2024
|
Note
|
FY24
£m
|
FY23
£m
|
Profit after taxation
|
|
69.2
|
128.9
|
Add back: income tax
expense
|
8
|
23.8
|
30.5
|
finance income
|
|
(3.0)
|
(1.9)
|
finance expense
|
7
|
32.2
|
18.7
|
depreciation, amortisation and impairment
|
|
72.3
|
58.1
|
other gains
|
|
(1.2)
|
-
|
foreign exchange losses
|
|
4.2
|
10.7
|
share-based payments charge
|
26
|
4.0
|
0.5
|
Increase in inventories
|
|
(1.6)
|
(133.2)
|
Decrease/(increase) in trade and
other receivables
|
|
23.0
|
(6.6)
|
Decrease in trade and other
payables
|
|
(37.7)
|
(9.2)
|
|
|
|
|
Change in net working
capital
|
|
(16.3)
|
(149.0)
|
Cash flows from operating activities
|
|
|
|
Cash generated from
operations
|
|
185.2
|
96.5
|
Taxation paid
|
|
(18.8)
|
(22.3)
|
Settlement of matured
derivatives
|
|
1.5
|
(1.5)
|
Net cash inflow from operating activities
|
|
167.9
|
72.7
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
Additions to intangible
assets
|
11
|
(10.2)
|
(11.8)
|
Additions to property, plant and
equipment
|
12
|
(18.2)
|
(39.6)
|
Finance income received
|
|
2.9
|
1.6
|
Capital contributions received for
right-of-use assets
|
|
-
|
0.2
|
Purchase of equity
investment
|
20
|
-
|
(1.0)
|
Net cash outflow from investing activities
|
|
(25.5)
|
(50.6)
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
Finance expense paid
|
|
(19.9)
|
(7.2)
|
Payment of lease
interest
|
28
|
(8.6)
|
(4.8)
|
Payment of lease
liabilities
Repurchase of
shares
|
28
23
|
(43.6)
(50.5)
|
(29.1)
-
|
Revolving credit facility
drawdown
|
17
|
30.0
|
-
|
Revolving credit facility
repayment
|
17
|
(30.0)
|
-
|
Settlement of matured
derivatives
|
|
(5.5)
|
4.6
|
Dividends paid
|
10
|
(57.8)
|
(58.4)
|
Net cash outflow from financing activities
|
|
(185.9)
|
(94.9)
|
|
|
|
|
Net decrease in cash and cash equivalents
|
|
(43.5)
|
(72.8)
|
Cash and cash equivalents at
beginning of year
|
|
157.5
|
228.0
|
Effect of foreign exchange on cash
held
|
|
(2.9)
|
2.3
|
Cash and cash equivalents at end of year
|
15
|
111.1
|
157.5
|
The notes on pages 18 to 54 form
part of these Consolidated Financial Statements.
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2024
1.
General information
Dr. Martens plc (the 'Company') is
a public company limited by shares incorporated in the United
Kingdom, and registered and domiciled in England and Wales, whose
shares are traded on the London Stock Exchange. The Company's
registered office is: 28 Jamestown Road, Camden, London NW1 7BY.
The principal activity of the Company and its subsidiaries
(together referred to as the 'Group') is the design, development,
procurement, marketing, selling and distribution of footwear, under
the Dr. Martens brand.
2.
Accounting policies
The principal accounting policies
adopted in the preparation of the financial statements are set out
below. The policies have been consistently applied to the periods
presented, unless otherwise stated. Amounts are presented in GBP
and to the nearest million pounds (to one decimal place) unless
otherwise noted. The reporting period is defined as the year ended
31 March 2024 and year ended 31 March 2023 for the comparative
period.
2.1
Basis of preparation
The Consolidated Financial
Statements of the Group have been prepared in accordance with
UK-adopted International Accounting Standards in conformity with
the requirements of the Companies Act 2006 as applicable to
companies reporting under those standards. The Group's Consolidated
Financial Statements have been prepared on a going concern basis
under the historical cost convention, except for equity
investments, derivative financial instruments, money market funds,
share-based payments and pension scheme assets that have been
measured at fair value.
Certain amounts in the Statement
of Profit or Loss and the Balance Sheet have been grouped together
for clarity, with their breakdown being shown in the notes to the
financial statements. The distinction presented in the Balance
Sheet between current and non-current entries has been made on the
basis of whether the assets and liabilities fall due within more
than one year.
Consideration of climate
risk matters
The Group continues to assess the
impact of climate risk matters on many aspects of the business,
including climate related scenario analysis as required by the Task
Force on Climate-Related Disclosures. Building on this scenario
analysis, consideration has been given to the impact of climate
related risk on management judgements and estimates, and compliance
with existing accounting requirements. The incurred costs and
investments associated with our sustainability strategy are
reflected in the Group's Financial Statements. The impact of
climate related risk matters is not expected to be material to the
31 March 2024 Consolidated Financial Statements, the Group going
concern assessments to 30 September 2025, or the viability of the
Group over the next three years.
Financial
calendar
During the year, the Group amended
the basis of preparation of the Consolidated Financial Statements
to align with the operational trading of the business; by moving
from a calendar year to a retail calendar basis. The retail
calendar will report a 52-week year, split into monthly 5-4-4
Monday to Sunday week formats. A 53-week year will be reported
around every six years to avoid the retail calendar deviating by
more than seven days to the calendar year and accounting reference
date of 31 March. As 31 March 2024 falls on a Sunday, the FY25
period will begin on a Monday and conform to a retail calendar
thereafter.
Going
concern
The financial statements have been
prepared on the going concern basis. The going concern assessment
covers at least the 12-month period from the date of the signing of
the financial statements, and the going concern basis is dependent
on the Group maintaining adequate levels of resources to operate
during the period. To support this assessment, detailed trading and
cash flow forecasts, including forecast liquidity and covenant
compliance, were prepared for the 16-month period to 30 September
2025. The Directors' assessment used the same assumptions and
methods as the viability assessment on pages 44 and 45 of the
Annual Report.
The key stages of the assessment
process are summarised as follows:
·
The Group planning process forms the basis of the
Going Concern review, starting from the DOCS strategy and producing
outputs for long, medium and short term financial plans, based on
key assumptions which are agreed with the GLT and Board.
·
The trading outlook over the long, medium and
short term is evaluated, contextualising our assessments within the
broader macroeconomic environment.
·
Micro and macro central planning assumptions are
identified and incorporated into the assessments.
·
The Directors of the Group have considered the
future position based on current trading and a number of potential
downside scenarios which may occur, including the impact of
appropriate principal risks crystallising.
·
Further details on the potential downside
scenarios relevant to the going concern assessment period have been
included below.
The Directors also considered the
Group's funding arrangements at 31 March 2024 with cash of £111.1m,
available undrawn facilities of £194.5m and bullet debt repayment
of £288.6m not due until 2 February 2026.
Consistent with the Viability
Statement on pages 44 and 45 of the Annual Report, management have
modelled, and the Directors have reviewed 'top-down' sensitivity
and stress testing, including a review of the cash flow projections
and covenant compliance under a severe but plausible scenario in
relation to two main risks and specific 'black swan' events
assessed which are detailed below:
·
the impact of a factory closure in one key
production geographic area due to climate change
(flooding).
·
weaker consumer sentiment and lower
demand.
'Top-down' sensitivity and stress
testing included a review of the cash flow projections and covenant
compliance under a severe but plausible scenario in relation to the
downside scenarios described above. In the unlikely event of the
above two scenarios occurring together, the Group can withstand
material revenue decline and by applying available mitigations,
headroom above covenant requirements remain in line with
expectation and the Group continues to have satisfactory liquidity
and covenant headroom throughout the period under review.
Experience over three years of FY22, FY23 and FY24 have indicated
minimal wholesale bad debt risk and minimal margin risk with the
principal risk to meeting covenant compliance being lower
revenue.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.1
Basis of preparation (continued)
Going concern
(continued)
In modelling our severe but
plausible downside we have incorporated the impact of a double
digit decrease in revenue from the base plan in the short term,
with the base plan already representing a single digit decline
versus FY24. Under this scenario, certain mitigations are available
or are intrinsically linked to the forecast, including some cost
and cash savings that materialise immediately if the Group's
performance is below budget and other planned and standard cost
reductions.
A more extreme downside scenario
is not considered plausible.
A reverse stress test has also
been modelled to determine what could break covenant compliance
estimates and liquidity before mitigating actions. To model these
reverse stress tests the impact on revenue of zero covenant
headroom and zero liquidity was calculated at the end of the going
concern period. Under the covenant breach test it is concluded that
the business could weather extreme growth reductions without
mitigation versus the base plan, with the base plan already
representing a single digit decline versus FY24. The business would
have to experience -11%pts to revenue growth in the going concern
period before covenants are breached. Similarly, the business would
have to experience -51%pts revenue growth reduction in the going
concern period before zero cash headroom is reached. The Directors
have assessed the likelihood of occurrence to be remote.
We have also assessed the
qualitative and quantitative impact of climate-related risks, as
noted in our TCFD scenario analysis in the Annual Report and above,
on asset recoverable amounts and concluded that there would not be
a material impact on the business and cash flows in the going
concern period.
We will continue to monitor the
impact of the macroeconomic backdrop and geopolitical events on the
Group in the countries where we operate, and we plan to maintain
flexibility to react as appropriate.
2.2
Basis of consolidation
The Consolidated Financial
Statements comprise the financial statements of the Company and its
subsidiaries as at 31 March 2024 and 31 March 2023. Control is
achieved when the Group has rights to variable returns from its
involvement with the investee and the ability to use its power over
the investee to affect the amount of the investor's returns.
Specifically, the Group controls an investee if, and only if, the
Group has:
·
power over the investee (i.e. existing rights
that give it the current ability to direct the relevant activities
of the investee);
·
exposure, or rights, to variable returns from its
involvement with the investee; and
·
the ability to use its power over the investee to
affect its returns.
Generally, there is a presumption
that a majority of voting rights results in control. To support
this presumption and when the Group has less than a majority of the
voting or similar rights of an investee, the Group considers all
relevant facts and circumstances in assessing whether it has power
over an investee, including:
·
the contractual arrangement(s) with the other
vote holders of the investee;
·
rights arising from other contractual
arrangements; and
·
the Group's voting rights and potential voting
rights.
The Group re-assesses whether or
not it controls an investee if facts and circumstances indicate
that there are changes to one or more of the three elements of
control. Consolidation of a subsidiary begins when the Group
obtains control over the subsidiary and ceases when the Group loses
control of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are
included in the Consolidated Financial Statements from the date the
Group gains control until the date the Group ceases to control the
subsidiary.
Profit or loss and each component
of other comprehensive income are attributed to the equity holders
of the parent of the Group. When necessary, adjustments are made to
the financial statements of subsidiaries to bring their accounting
policies in line with the Group's accounting policies. All
intra-group assets and liabilities, equity, income, expenses and
cash flows relating to transactions between members of the Group
are eliminated in full on consolidation.
A change in the ownership interest
of a subsidiary, without a loss of control, is accounted for as an
equity transaction.
If the Group loses control over a
subsidiary, it derecognises the related assets (including
goodwill), liabilities, non-controlling interest and other
components of equity, while any resultant gain or loss is
recognised in profit or loss. Any investment retained is recognised
at fair value.
2.3
Adoption of new and revised standards
A number of new or amended
standards became applicable for the current reporting period. These
standards, amendments or interpretations are not expected to have a
material impact on the Group in the current or future reporting
periods:
· Amendments
to IAS 1 - Classification of liabilities as current, and disclosure
of accounting policies
· Amendments
to IAS 8 - Definition of accounting estimates
· Amendments
to IAS 12 - Deferred tax related to assets and liabilities arising
from a single transaction
· Amendments
to IAS 12 - Pillar Two model rules
· Implementation of IFRS 17 - Insurance contracts
New standards and interpretations not yet
applied
The following new or amended IFRS
accounting standards, amendments and interpretations are not yet
adopted and it is expected that where applicable, these standards
and amendments will be adopted on each respective effective
date:
· Amendments
to IAS 1 - Presentation of financial statements: non-current
liabilities with covenants
· Amendments
to IFRS 16 - Leases on sale and leaseback
· Amendments
to IAS 7 and IFRS 7 - Supplier finance arrangements
These standards, amendments or
interpretations are not expected to have a material impact on the
Group in the current or future reporting periods.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.4
Alternative Performance Measures (APMs)
Management exercises judgement in
determining the adjustments to apply to IFRS measurements in order
to derive suitable APMs. As set out on pages 66 to 67 of the
Glossary, APMs are used as management believes these measures
provide additional useful information on the underlying trends,
performance and position of the Group. These measures are used for
performance analysis. The APMs are not defined by IFRS and
therefore may not be directly comparable with other companies'
APMs. These measures are not intended to be a substitute for, or
superior to, IFRS measurements.
2.5
Foreign currency translation
The Consolidated Financial
Statements are presented in GBP, which is the Group's
presentational currency. The Group includes foreign entities
whose functional currencies are not GBP. On consolidation,
the assets and liabilities of the Group entities that have a
functional currency different from the presentation currency are
translated into GBP at the closing rate at the date of that Balance
Sheet. Income and expenses for each Statement of Profit or Loss are
translated at average foreign exchange rates for the period.
Foreign exchange differences are recognised in other comprehensive
income. The functional currency of each company in the Group is
that of the primary economic environment in which the entity
operates.
2.6
Revenue
The Group's revenue arises from
the sale of goods to customers. Contracts with customers
generally have one performance obligation. The Group has
concluded that the revenue from the sale of goods should be
recognised at a point in time when control of the goods is
transferred to the customer, which is dependent on the revenue
channel. Revenue is recognised at the invoiced price less any
associated discounts and sales taxes.
The Group assessed its revenue
channels against the IFRS 15 five-step model, identifying the
contracts, the performance obligations and the transaction price,
and then allocating this to determine the timing of revenue
recognition. The revenue channels that have been separately
assessed are as follows:
·
ecommerce revenue, including delivery charge
income;
·
retail revenue; and
· wholesale
revenue.
Control is passed to the customer
on the following basis under each of the revenue channels as
follows:
·
ecommerce channel: upon receipt of the goods by
the customer;
·
retail channel: upon completion of the
transaction; and
·
wholesale channel: upon delivery of the goods or
upon dispatch to the customer if the customer takes responsibility
for delivery.
The payment terms across each of
these revenue channels varies. The payments for retail are
received at the transfer of control. Ecommerce payments are
mainly received in advance of transfer of control by less than one
week as there is a timing difference between receipt of cash on
order and receipt of goods by the customer. Wholesale
customers pay on terms generally between 30 and 60 days.
Some contracts for the sale of
goods provide customers with a right of return and rebates. Under
IFRS 15, this gives rise to variable consideration, which is
constrained such that it is highly probable that significant
reversal will not occur.
Rights of
return
When a contract provides a
customer with a right of return, under IFRS 15, the consideration
is variable because the contract allows the customer to return the
product. The Group uses the expected value method to estimate
the goods that will be returned and recognise a refund liability
and an asset for the goods to be recovered. Provisions for returned
goods are calculated based on future expected levels of returns for
each channel, assessed across a variety of factors such as
historical trends, economic factors and other
measures.
Rebates
Under IFRS 15,
rebates give rise to variable consideration. To estimate this
the Group applies the most likely amount method.
2.7
Finance income and expenses
Finance expenses consist of
interest payable on various forms of debt and finance income
consists of interest receivable amounts from cash held. Both are
recognised in the Statement of Profit or Loss under the effective
interest rate method.
2.8
Exceptional items
Exceptional items consist of
material non-recurring items and items arising outside the normal
trading of the Group.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.9
Taxation
The tax expense represents the sum
of the tax currently payable and deferred tax movement recognised.
The tax currently payable is based on taxable profit. Taxable
profit differs from net profit as reported in the Statement of
Profit or Loss because it excludes items of income or expense that
are taxable or deductible in other periods and it further excludes
items that are never taxable or deductible. The Group's liability
for current tax is calculated by using tax rates that have been
enacted or substantively enacted by the end of each reporting
period.
Tax provisions are recognised when
there is a potential exposure to an uncertain tax position and an
outflow of resources is probable. The Group applies IFRIC 23 Uncertainty over Income Tax
Treatments to measure uncertain tax positions. The Group
calculates each provision using either the expected value method or
the most likely outcome method in line with the guidance contained
within IFRIC 23. The uncertain tax positions are reviewed regularly
and there is ongoing monitoring of tax cases and rulings which
could impact the provision.
Deferred tax is the tax expected
to be payable or recoverable on differences between the carrying
amount of assets and liabilities in the historical financial
information and the corresponding tax bases used in the computation
of taxable profit and is accounted for using the Balance Sheet
liability method based on rates that are enacted or substantively
enacted by the end of each reporting period. Deferred tax
liabilities are recognised for all taxable temporary differences
and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which
deductible temporary differences can be utilised. Such assets and
liabilities are not recognised if the temporary difference arises
from goodwill or from the initial recognition (other than in a
business combination) of other assets and liabilities in a
transaction which affects neither the taxable profit nor the
accounting profit. Deferred tax liabilities are recognised for
taxable temporary differences arising in investments in
subsidiaries except where the Group is able to control the reversal
of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future. The carrying
amount of deferred tax assets is reviewed at the end of each
reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow
all or part of the asset to be recovered.
Deferred tax is calculated at the
tax rates that are expected to apply to the period when the asset
is realised, or the liability is settled. Deferred tax is charged
or credited in the Statement of Profit or Loss, except when it
relates to items credited or charged directly to equity, in which
case the deferred tax is also dealt with in equity. Both deferred
tax assets and liabilities and current tax assets and liabilities
are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities, when they
relate to income taxes levied by the same taxation authority, and
the Group intends to settle its current tax assets and liabilities
on a net basis.
On 23 May 2023, the IASB issued an
amendment to IAS 12 'Income Taxes' to clarify how the effects of
the global minimum tax framework should be accounted for and
disclosed effective 1 January 2023. This was endorsed by the UK
Endorsement Board on 19 July 2023 and has been adopted by the Group
for 2024 reporting. The Group has applied the exemption to
recognising and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes.
2.10
Dividends
Final dividends are recorded in
the financial statements in the period in which they are approved
by the Company's shareholders. Interim dividends are recorded
in the period in which they are approved and paid.
2.11
Intangible assets
Goodwill
Business combinations are
accounted for by applying the acquisition method. Goodwill acquired
represents the excess of the fair value of the consideration over
the fair value of the identifiable net assets acquired.
After initial recognition,
positive goodwill is measured at cost less any accumulated
impairment losses. At the date of acquisition, the goodwill is
allocated to cash generating units, usually at business segment
level or statutory company level as the case may be, for the
purpose of impairment testing and is tested at least annually for
impairment, or if an indicator of impairment exists. On subsequent
disposal or termination of a business acquired, the profit or loss
on termination is calculated after charging the carrying value of
any related goodwill. Negative goodwill is recognised directly in
the Statement of Profit or Loss.
Separately acquired
intangible assets
Separately acquired intangible
assets comprise other intangibles. Other intangibles that have
finite useful lives are carried at cost less accumulated
amortisation and any provision for impairment. The finite life
other intangibles are amortised on a straight line basis over the
expected useful economic life of each of the assets, which is
considered to be 5 to 15 years.
Amortisation expense is charged to selling and administrative
expenses. Other intangibles with an indefinite useful life are
carried at cost less impairment. These are other intangibles for
which the estimated useful life is indefinite. The carrying value
of intangible assets is reviewed for impairment whenever events or
changes in circumstances indicate the carrying value may not be
recoverable.
Software
Software comprises internally
generated software development. Research expenditure is charged to
income in the year in which it is incurred. Development expenditure
is charged to income in the year it is incurred unless it meets the
recognition criteria of IAS 38 Intangible Assets to be capitalised
as an intangible asset. Following initial recognition of the
development expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and impairment losses.
Amortisation begins when development is complete, and the asset is
available for use. These assets are considered to have finite
useful lives and are amortised on a straight line basis over the
expected useful economic life of the assets, which is considered to
be 5 to 15 years. Amortisation expense is charged to selling and
administrative expenses. The carrying value of intangible assets is
reviewed for impairment whenever events or changes in circumstances
indicate the carrying value may not be recoverable.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.12
Property, plant and equipment
Property, plant and equipment is
carried at cost less accumulated depreciation and provision for
impairment. Depreciation is calculated to write down the cost of
the assets less estimated residual value over its expected useful
life on a straight line basis as follows:
Freehold property
|
50 years
|
Freehold improvements
|
10 years
|
Leasehold improvements
|
Over the life of the
lease
|
Plant and machinery
|
15 years
|
Fixtures and fittings
|
5-15 years
|
Office and computer
equipment
|
3 years
for computer equipment and 5 years for all other office
equipment
|
Motor vehicles
|
3 years
|
Depreciation expense is charged to
selling and administrative expenses. Any gain or loss arising on
the derecognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the
asset) is included in the Statement of Profit or Loss in the period
that the asset is derecognised.
2.13 Lease
accounting
The Group assesses at contract
inception whether a contract is, or contains, a lease. That is, if
the contract conveys the right to control the use of an identified
asset for a period of time in exchange for
consideration.
Group as a
lessee
The Group applies a single
recognition and measurement approach for all leases, except for
short-term leases and leases of low-value assets. As part of the
measurement approach, the Group uses its incremental borrowing rate
which is adjusted by both property type and geography. The Group
recognises lease liabilities to make lease payments and
right-of-use assets representing the right to use the underlying
assets.
i) Right-of-use assets
The Group recognises right-of-use
assets at the commencement date of the lease (i.e. the date the
underlying asset is available for use). Right-of-use assets are
measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease
incentives received. Right-of-use assets are depreciated on a
straight line basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:
Right-of-use-assets
|
Shorter of lease term and
estimated useful life (3 to 15 years)
|
If ownership of the leased asset
transfers to the Group at the end of the lease term or the cost
reflects the exercise of a purchase option, depreciation is
calculated using the estimated useful life of the asset. The
right-of-use assets are also subject to impairment. Refer to the
accounting policies in the Impairment of non-financial assets
section.
ii) Lease liabilities
At the commencement date of the
lease, the Group recognises lease liabilities measured at the
present value of lease payments to be made over the lease term. The
lease payments include fixed payments (including in substance fixed
payments) less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to
be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain
to be exercised by the Group and payments of penalties for
terminating the lease, if the lease term reflects the Group
exercising the option to terminate.
Variable lease payments that do
not depend on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in which
the event or condition that triggers the payment occurs.
In calculating the present value
of lease payments, the Group uses its incremental borrowing rate
(adjusted by both property type and geography) at the lease
commencement date because the interest rate implicit in the lease
is not readily determinable. After the commencement date, the
amount of lease liabilities is increased to reflect the interest
charge and reduced for the lease payments made. In addition, the
carrying amount of lease liabilities is remeasured if there is a
modification that does not increase the scope of the lease, a
change in the lease term, a change in the lease payments (e.g.
changes to future payments resulting from a change in an index or
rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset. A lease
modification is accounted for as a separate lease where the
modification increases the scope of the lease, and the lease
consideration increases by an amount reflecting the stand-alone
price for the increase in scope.
The Group's lease liabilities are
included in interest-bearing loans and borrowings (note
17).
iii) Short-term leases and leases of low-value
assets
The Group applies the short-term
lease recognition exemption to its short-term leases of machinery
and equipment (i.e. those leases that have a lease term of 12
months or less from the commencement date and do not contain a
purchase option). It also applies the lease of low-value assets
recognition exemption to leases of office equipment that are
considered to be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as an expense on a
straight line basis over the lease term.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.14
Impairment of non-financial assets
The carrying amounts of the
Group's relevant assets are reviewed at each year-end date to
determine whether there is any indication of impairment, and if an
indicator is present the asset is tested for impairment. For
goodwill and intangible assets that have an indefinite useful life,
an impairment test is also performed each year-end. If an
impairment test is required, the Group estimates the asset's
recoverable amount. An asset's recoverable amount is the higher of
its fair value less costs of disposal and its value in use. An
impairment is present if the recoverable amount is less than the
carrying value of the asset. Impairment losses are recognised in
the Statement of Profit or Loss in those expense categories
consistent with the function of the impaired asset. Refer to notes
11 and 12 for further details.
2.15
Inventories
Inventories are stated at the
lower of cost and net realisable value. The cost of
inventories consists of all costs of purchase, costs of design and
other costs incurred in bringing the inventory to its first point
of sale location and condition. Inventories are valued at weighted
average cost, including freight to warehouse and duty. Net
realisable value is based on estimated selling price less any costs
expected to be incurred to completion or disposal.
2.16
Financial instruments
A financial instrument is any
contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.
Offsetting of financial instruments
Financial
assets and financial liabilities are offset and the net amount is
reported in the Consolidated Balance Sheet if there is a currently
enforceable legal right to offset the recognised amounts and there
is an intention to settle on a net basis, to realise the assets,
and to settle the liabilities simultaneously.
Categorisation of inputs for fair value
measurements
Assets and liabilities held at
fair value are categorised into levels that have been defined
according to IFRS 13 'Fair Value Measurement' measurement hierarchy
as follows:
· quoted prices (unadjusted) in active markets for identical
assets or liabilities (Level 1);
· inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices) (Level
2); and
· inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs) (Level
3).
The fair value of derivatives are
calculated using valuation models to determine the fair values
based on observable market curves such as forward foreign exchange
rates, discounted back to present value using risk free interest
rates. The impacts of counterparty credit, volatility and currency
basis are also considered as part of the fair valuation where
appropriate.
All financial instruments that are
held at fair value use Level 2 inputs except for equity investments
which use Level 3 inputs. Furthermore, under IFRS 9, cost has been
used as the best estimate for fair value for equity investments due
to insufficient recent information available to measure fair
value.
2.17
Financial assets
Recognition and derecognition
Purchases and sales of financial
assets are recognised on trade date being the date on which the
Group commits to purchase or sell the asset. Financial assets are
derecognised when the rights to receive cash flows from the
financial assets have expired or have been transferred and the
Group has transferred substantially all the risks and rewards of
ownership.
Investments
Equity investments that are not
held for trading have been irrevocably designated as fair value
through other comprehensive income. Subsequent to initial
recognition at fair value plus transaction costs, these assets are
recorded at fair value at each period end with the movements
recognised in other comprehensive income until derecognition or
impaired. On derecognition, the cumulative gain or loss previously
recognised in other comprehensive income is never recycled to the
income statement. Dividends on financial assets at fair value
through other comprehensive income are recognised in the income
statement when the entity's right to receive payment is
established. Equity investments are recorded in non-current assets
unless they are expected to be sold within one year.
Trade and other receivables
Trade receivables are assessed
under IFRS 9 and measured at amortised cost using the effective
interest rate method. The Group recognises an allowance for
expected credit losses (ECLs) for all debt instruments not held at
fair value through profit or loss (FVPL). The most significant
financial assets of the Group are its cash and trade receivables.
ECLs are based on the difference between the contractual cash flows
due in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at an approximation of the
original effective interest rate.
Cash and cash equivalents
Cash and cash equivalents
primarily comprise cash held within bank accounts, Money Market
Funds (MMFs) and bank term deposits maturing less than three months
from inception. All cash is held short term in highly liquid
investments that are readily convertible to a known amount of cash
and are subject to an insignificant risk of changes in
value.
Included within cash and cash
equivalents are debit and credit card payments made by customers
which are receivable from card acquiring financial institutions,
and cash in transit from various payment processing intermediaries
that provide receipting services to the Group.
All cash and cash equivalents are
measured at amortised cost with the exception of MMFs which are
held at fair value through profit or loss.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.17
Financial assets (continued)
Summary of the Group's financial
assets:
Financial
asset
|
IFRS 9
classification
|
Investments
|
Fair
value through other comprehensive income.
|
Trade and
other receivables excluding prepayments and accrued
income
|
Amortised
cost.
|
Derivative financial assets
|
Fair
value through other comprehensive income.
|
Cash and
cash equivalents
|
Amortised
cost, except for cash amounts held within Money Market Funds
which
are held
at fair value through profit or loss.
|
2.18
Financial liabilities
The Group classifies and measures
all of its non-derivative financial liabilities at amortised
cost.
Initial recognition
Financial liabilities are
classified according to the substance of the contractual
arrangements entered into.
Derecognition
A financial liability is
derecognised when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a
new liability. The difference in the respective carrying amounts is
recognised in the Statement of Profit or Loss.
Trade and other payables
Trade payables are obligations to
pay for goods or services that have been acquired in the course of
ordinary business from suppliers. Accounts payable are classified
as current liabilities if payment is due within one year or less.
If not, they are presented as non-current liabilities. Trade
payables are recognised initially at fair value and subsequently
held at amortised cost using the effective interest rate
method.
Summary of the Group's financial
liabilities:
Financial
liability
|
IFRS 9
classification
|
Bank
debt
|
Amortised
cost.
|
Bank
interest
|
Amortised
cost.
|
Lease
liabilities
|
Amortised
cost.
|
Derivative financial instruments
|
Fair
value through other comprehensive income.
|
Trade and
other payables excluding non-financial liabilities
|
Amortised
cost.
|
2.19
Derivative financial instruments and hedging
activities
The Group uses foreign exchange
forward contracts to hedge its foreign currency risks. Such
derivative financial instruments are initially recognised at fair
value on the date a derivative contract is entered into and are
subsequently remeasured at fair value. The method of recognising
the resulting gain or loss depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of the
item being hedged.
Gains or losses arising from
changes in fair value related to derivatives held in a cash flow
hedge relationship are recognised in other comprehensive
income/(expense) and deferred in the hedging reserve to the extent
that the hedges are deemed effective. Amounts are transferred to
the income statement in the same period in which the hedged risk
affects the income statement and against the same line
item.
The Group designates foreign
exchange derivative hedges on a full forward or spot basis. Where
only the spot element of a foreign exchange derivative is
designated, the cost of hedging election is applied to the forward
points with fair value movements recognised in other comprehensive
income and released to profit or loss depending on the nature of
the underlying hedged item.
The Group performs regular hedge
effectiveness testing. For cash flow hedges where the forecast
transaction is no longer expected to occur, hedge accounting is
discontinued, and all accumulated gains or losses held in the
hedging reserve are immediately recognised in profit or loss. Where
hedge accounting is discontinued as a result of expiry, disposal or
termination of the derivative instrument (and where the hedge
relationship was deemed to be effective), accumulated gains or
losses up to the point of discontinuation are held in the hedging
reserve and released to profit or loss in line with the hedged
item.
Derivative financial instruments
consist of foreign currency exchange forward contracts, which are
categorised within Level 2 under the IFRS 13 measurement hierarchy
(refer to note 2.16 for further detail on fair value level
categorisation).
The full fair value of derivatives
are classified as a non-current asset or liability if the remaining
maturity of the derivatives are more than 12 months and as a
current asset or liability if the maturity of the derivatives are
less than 12 months.
2.20
Borrowings
Borrowings are recognised
initially at fair value, net of transaction costs incurred, and
subsequently carried at amortised cost using the effective interest
rate method so that any difference between the proceeds (net of
transaction costs) and the redemption value is recognised in the
Statement of Profit or Loss over the period of the borrowings.
Details of the Group's borrowings are included in note
17.
Borrowing costs
The Group expenses borrowing costs
in the period the costs are incurred. Where borrowing costs are
attributable to the acquisition, construction or production of a
qualifying asset, such costs are capitalised as part of the
specific asset and amortised over the estimated useful life of the
asset. Details of the Group's borrowings are included in note
17.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.21 Ordinary
share capital
Ordinary shares are classified as
equity. Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Where the Company purchases any of
its own equity instruments, for example, pursuant to the share
buyback programme, the consideration paid, including any directly
attributable incremental costs, is deducted from equity
attributable to the owners of the Company. The repurchased shares
are recognised as treasury shares until the shares are cancelled.
The programme concluded on 19 December 2023.
2.22 Segmental
analysis
IFRS 8 'Operating Segments'
requires operating segments to be determined by the Group's
internal reporting to the Chief Operating Decision Maker
(CODM). The CODM has been determined to be both the CEO and
CFO, who receive information on this basis of the Group's revenue
in key geographical regions based on the Group's management and
internal reporting structure. The CODM assesses the
performance of geographical segments based on a measure of revenue
and EBITDA1. To increase transparency the Group also
includes additional voluntary disclosure analysis of global revenue
within different operating channels.
2.23 Pension
arrangements
The Group provides pension
benefits which include both defined benefit and defined
contribution arrangements.
Defined contribution pension schemes
For defined contribution schemes
the amount charged to the Statement of Profit or Loss represents
the contributions payable to the plans in the accounting period.
Differences between contributions payable in the period and
contributions actually paid are shown as either accruals or
prepayments in the Balance Sheet.
Defined benefit pension scheme
The Group operates a defined
benefit pension scheme, which requires contributions to be made to
separately administered funds for administration expenses. The
Group did not make any contributions to the scheme in the year
(FY23: £nil). The UK defined benefit scheme was closed to new
members on 6 April 2002, from which time membership of a defined
contribution plan was available. It was then closed to all future
accrual for all existing members on 31 January 2006. A valuation of
the Plan is carried out at least once every three years to
determine whether the Statutory Funding Objective is met. The last
valuation was carried out at 30 June 2022, the next valuation is
due at 30 June 2025. No asset is recognised in the Balance Sheet in
respect of defined benefit pension plans due to the uncertainty
over the Group's right to a refund of the surplus from the scheme
as set out in note 2.26. The defined benefit obligation is
calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future cash
outflows using interest rates of high-quality corporate
bonds that are denominated in the currency
in which the benefits will be paid, and that have terms to maturity
approximating to the terms of the related pension obligation.
Past-service costs are recognised immediately in income.
The net interest cost is
calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. The
net interest cost is limited by the asset ceiling. When occurring,
this cost is included in employee benefit expense in the Statement
of Profit or Loss. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions are
charged or credited to equity in other comprehensive income in the
period in which they arise.
2.24 Share
Incentive Plan (SIP) Trusts
The Group operates two SIP Trusts
for the benefit of its employees. Under accounting standard
IFRS 10 Consolidated Financial Statements, control for accounting
purposes has a different test threshold than under a legal basis
and as a result the Group's SIP Trusts are deemed to be under the
control of Dr. Martens plc. The Trust deed for the Dr. Martens plc
UK Share Incentive Plan Trust was adopted by the Board on 10
September 2021.
2.25
Share-based payments and share schemes
The Group provides benefits to
employees in the form of share-based payment transactions, whereby
employees render services as consideration in exchange for equity
instruments ('equity-settled transactions').
The cost of equity-settled
transactions is measured by reference to the fair value of the
equity instruments at the date on which they are granted and is
recognised as an expense over the vesting period, which ends on the
date the relevant employee becomes fully entitled to the award. The
fair value is calculated using an appropriate option pricing model
and takes into account the impact of any market performance
conditions. The impact of non-market performance conditions is not
considered in determining the fair value at the date of
grant. Vesting conditions which relate to non-market
conditions are allowed for in the assumptions used for the number
of options expected to vest. The level of
vesting is reviewed at each Balance Sheet date and the charge
adjusted to reflect actual and estimated levels of vesting. The
cost of share-based payment transactions is recognised as an
expense over the vesting period of the awards, with a corresponding
increase in equity. Further details of share-based awards granted
in the year can be found in note 26.
A proportion of the annual
Executive Bonus Scheme is settled in the form of purchased Parent
Company shares. This is accounted for as a cash-settled scheme as
although participants received equity, it is driven by a cash
amount that is paid and converted into shares at a point in time.
The proximity of the date of communication of the bonus to when the
shares are received means that there would be minimal difference
between cash- and equity-settled treatment.
1. Alternative Performance
Measure (APM) as defined in the Glossary on pages 66 and
67.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.26
Significant judgements and estimates
The preparation of the Group's
financial statements in conforming with IFRS requires management to
make judgements, estimates and assumptions that affect the
application of policies and reported amounts in the financial
statements. These judgements and estimates are based on
management's best knowledge of the relevant facts and
circumstances. However, the nature of estimation means that actual
outcomes could differ from those estimates. Information about such
judgements and estimation is contained in the accounting policies
and/or notes to the financial statements and the key areas are
summarised below:
Key
judgements
The following judgement has had
the most significant effect on amounts recognised in the financial
statements:
Defined benefit scheme
surplus
The Group acknowledges that the
recognition of pension scheme surplus is an area of accounting
judgement, which depends on the interpretation of the Scheme Rules
and the relevant accounting standards including IAS 19 and IFRIC
14. The surplus under the scheme is not recognised as an asset
benefitting the Group on the Balance Sheet, as the Group believes
there is uncertainty in relation to the recoverability of any
surplus, which is therefore unlikely to derive any economic
benefits from that surplus. In the Group's view there is
uncertainty over whether the Scheme Rules provide the Group with an
unconditional right to a refund of the surplus from the scheme due
to third-party discretionary investment powers which could use up
any surplus prior to wind-up. Consistent with previous years, given
this uncertainty, the Group has applied an asset ceiling to the
pension scheme surplus of zero. As such, an asset ceiling has been
applied to the Balance Sheet, and the net surplus of £9.1m (FY23:
£11.1m) has not been recognised on the Balance Sheet.
The net surplus has been capped to
£nil (FY23: £nil). The key sensitivities of the defined benefit
obligation to the actuarial assumptions are shown in note
29.
Other areas of judgement and
accounting estimates
The Consolidated Financial
Statements include other areas of judgement and accounting
estimates. While these areas do not meet the definition under IAS 1
of significant accounting estimates or critical accounting
judgements, the recognition and measurement of certain material
assets and liabilities are based on assumptions and/or are subject
to longer-term uncertainties. The other areas of judgement and
accounting estimates are listed below:
Judgements
Determining the lease term of
contracts with renewal and termination options - Group as
lessee
The Group determines the lease
term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is
reasonably certain to be exercised, or any periods covered by an
option to terminate the lease, if it is reasonably certain not to
be exercised.
The Group has several lease
contracts that include extension and termination options. The Group
applies judgement in evaluating whether it is reasonably certain
whether or not to exercise the option to renew or terminate the
lease. That is, it considers all relevant factors that create an
economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Group reassesses the
lease term if there is a significant event or change in
circumstances that is within its control and affects its ability to
exercise or not to exercise the option to renew or to terminate
(e.g. construction of significant leasehold improvements or
significant customisation to the leased asset).
The Group included the renewal
period as part of the lease term for leases of plant and machinery
with shorter non-cancellable periods (i.e. three to five years).
The Group typically exercises its option to renew these leases
because there will be a significant negative effect on production
if a replacement asset is not readily available. The renewal
periods for leases of leasehold property with longer
non-cancellable periods (i.e. 10 to 15 years) are not included as
part of the lease term, unless there is an economic incentive to
extend the lease, as these are not reasonably certain to be
exercised. Furthermore, the periods covered by termination options
are included as part of the lease term only when they are
reasonably certain not to be exercised.
Sources of estimation
uncertainty and assumptions
The following estimates are
dependent upon assumptions which could change in the next financial
year and have an effect on the carrying amount of assets and
liabilities recognised at the Balance Sheet date:
Inventory net realisable value and
provisions
The assessment of the valuation of
inventory requires the determination of net realisable value. Sales
prices, patterns and other assumptions are reviewed to estimate net
realisable value. Inventory provisioning requires significant
judgement on which inventory lines should be classed as obsolete.
Inventory age, historic sales patterns and trading forecasts are
used when classifying inventory lines to be provided
against.
Uncertain tax
positions
The Group recognises liabilities
for anticipated tax issues based on estimates of whether additional
taxes will be due. Where the final tax outcome of these matters is
different from the amounts that were initially recorded, such
differences will impact the current and deferred tax assets and
liabilities in the period in which the determination is made.
Management is required to determine the amount of deferred tax
assets that can be recognised, based upon the likely timing and
level of future taxable profits together with an assessment of the
effect of future tax planning strategies (see notes 8 and 22). In
addition, the assessment of uncertain tax positions is based on
management's interpretation of relevant tax rules and decided
cases, external advice obtained, the statute of limitations, the
status of the negotiations and past experience with tax
authorities. In evaluating whether a provision is needed it is
assumed that tax authorities have full knowledge of the facts and
circumstances applicable to each issue.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
2.26 Significant
judgements and estimates (continued)
Carrying value of non-financial
assets
The Group assesses at each
reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Group performs an impairment
test and estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of its fair value less costs of
disposal and its value in use. An impairment is present if the
recoverable amount is less than the carrying value of the
asset.
The recoverable amount is
determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
If assessing value in use, estimates of future cash flows are discounted to present value using
pre-tax discount rates derived from risk-free
rates based on long-term government bonds, adjusted for risk
factors such as region and market risk in the territories in which
the Group operates and the time value of money. The future cash
flows are then extended into perpetuity using long-term growth
rates. If determining fair value less
costs of disposal, recent market transactions are considered. If no
such transactions can be identified, an appropriate valuation model
is used. These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded companies or
other available fair value indicators.
For details of relevant
non-financial assets, see notes 11 and 12.
Defined benefit pension scheme
assumption
Determining the fair value of the
defined benefit pension scheme, which relates to the pension of the
Group, requires assumptions to be made by management and the
Group's independent qualified actuary around the actuarial
valuations of the scheme's assets and liabilities. For details see
note 29.
Leases - estimating the incremental borrowing
rate
The Group cannot readily determine
the interest rate implicit in the lease; therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Group would have to pay to
borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use
asset in a similar economic environment. The IBR therefore reflects
what the Group 'would have to pay', which requires estimation when
no observable rates are available (such as for subsidiaries that do
not enter into financing transactions) or when they need to be
adjusted to reflect the terms and conditions of the lease (for
example, when leases are not in the subsidiary's functional
currency). The Group estimates the IBR using observable inputs
(such as market interest rates) when available and is required to
make certain entity-specific estimates (such as the subsidiary's
stand-alone credit rating). The IBR is reassessed when there
is a reassessment of the lease liability or a lease
modification.
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2024
3.
Segmental analysis
|
|
FY24
£m
|
FY23
£m
|
Revenue by geographical market1
|
|
|
|
EMEA
|
|
431.8
|
443.0
|
Americas
|
|
325.8
|
428.2
|
APAC
|
|
119.5
|
129.1
|
Total revenue
|
|
877.1
|
1,000.3
|
1. Revenue by geographical market
represents revenue from external customers; there is no
inter-segment revenue.
|
|
FY24
£m
|
FY23
£m
|
EBITDA2 by geographical market
|
|
|
|
EMEA
|
|
140.8
|
146.1
|
Americas
|
|
64.4
|
100.1
|
APAC
|
|
31.7
|
33.8
|
Support costs
|
|
(39.4)
|
(35.0)
|
EBITDA2
|
|
197.5
|
245.0
|
Depreciation, amortisation and
impairment
|
|
(21.0)
|
(22.6)
|
Depreciation and impairment of
right-of-use assets
|
|
(51.3)
|
(35.5)
|
Foreign exchange losses
|
|
(4.2)
|
(10.7)
|
Other gains
|
|
1.2
|
-
|
Depreciation, amortisation,
impairment, foreign exchange losses and other gains
|
|
(75.3)
|
(68.8)
|
Finance income and
expense
|
|
(29.2)
|
(16.8)
|
Profit before tax
|
|
93.0
|
159.4
|
2. Alternative Performance Measure
'APM' as defined in the Glossary on pages 66 and 67.
Additional revenue
analysis
The Group derives its revenue in geographical markets from the
following sources:
|
|
FY24
£m
|
FY23
£m
|
Revenue by channel
|
|
|
|
Ecommerce
|
|
276.3
|
279.0
|
Retail
|
|
256.8
|
241.7
|
Total DTC revenue
|
|
533.1
|
520.7
|
Wholesale
|
|
344.0
|
479.6
|
Total revenue
|
|
877.1
|
1,000.3
|
|
|
FY24
£m
|
FY23
£m
|
Non-current assets
|
|
|
|
EMEA1
|
|
153.4
|
143.3
|
Americas
|
|
92.2
|
72.6
|
APAC
|
|
17.7
|
15.4
|
Goodwill
|
|
240.7
|
240.7
|
Deferred tax
|
|
11.2
|
11.8
|
Total non-current assets
|
|
515.2
|
483.8
|
1. Included in the EMEA
non-current assets is £83.9m (FY23: £79.4m) in relation to the UK
legal entities.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
4.
Expenses analysis
Profit before tax is stated after charging and
crediting:
|
|
Note
|
FY24
£m
|
FY23
£m
|
Selling and administrative expenses
|
|
|
|
|
Staff costs
|
|
6
|
155.8
|
143.8
|
Operating costs
|
|
|
221.9
|
229.3
|
|
|
|
377.7
|
373.1
|
|
|
|
|
|
Amortisation
|
|
11
|
5.8
|
8.4
|
Depreciation
|
|
12
|
15.2
|
13.6
|
Depreciation of right-of-use
assets
|
|
12
|
51.3
|
32.2
|
Impairment
|
|
12
|
-
|
0.6
|
Impairment of right-of-use
assets
|
|
12
|
-
|
3.3
|
Foreign exchange losses
|
|
|
4.2
|
10.7
|
Other gains
|
|
|
(1.2)
|
-
|
Depreciation, amortisation,
impairment, foreign exchange losses and other gains
|
|
|
75.3
|
68.8
|
Total selling and administrative expenses
|
|
|
453.0
|
441.9
|
5.
Auditors' remuneration
|
|
FY24
£m
|
FY23
£m
|
Audit services in respect of the
financial statements of the Parent Company and
consolidation
|
|
0.8
|
0.6
|
Audit services in respect of the
financial statements and of the financial statements of subsidiary
companies
|
|
1.5
|
1.1
|
Other non-audit related
services
|
|
0.2
|
0.1
|
|
|
2.5
|
1.81
|
1. FY23 auditor's remuneration of £2.1m disclosed in the Audit and
Risk Committee Report on page 141 of the Annual Report is different
to this as it includes additional fees relating to the FY23 audit
which were agreed and have been incurred as an accounting expense
in FY24.
6.
Staff costs
The aggregate payroll costs were
as follows:
|
|
FY24
£m
|
FY23
£m
|
Wages and salaries
|
|
126.7
|
117.5
|
Social security costs
|
|
14.2
|
13.4
|
Pension costs
|
|
5.4
|
4.7
|
Other
benefits1
|
|
9.5
|
8.2
|
|
|
155.8
|
143.8
|
1. Includes share-based payments
of £4.0m (FY23: £0.5m).
For details of remuneration
relating to Directors, please refer to the Directors' Remuneration
Report on pages 119 to 133 of the Annual Report.
The monthly number of employees
(including Directors) employed by the Group during the year
was:
|
FTE1
|
|
Average2
|
|
As at 31
March
|
|
For the year ended 31 March
|
|
2024
No.
|
2023
No.
|
|
2024
No.
|
2023
No.
|
EMEA
|
1,044
|
951
|
|
1,853
|
1,615
|
Americas
|
599
|
580
|
|
819
|
768
|
APAC
|
385
|
468
|
|
553
|
484
|
Global support
functions
|
602
|
592
|
|
600
|
594
|
|
2,630
|
2,591
|
|
3,825
|
3,461
|
1. FTE (Full Time Equivalent) is
calculated by dividing the employee's contracted hours by the
Group's standard full time contract hours.
2. Average is the average actual
employees of the Group during the year calculated on a monthly
basis.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
7.
Finance expense
|
|
FY24
£m
|
FY23
£m
|
Bank debt and other
charges
|
|
22.3
|
12.7
|
Interest on lease
liabilities
|
|
8.6
|
4.8
|
Amortisation of bank loan issue
costs
|
|
1.2
|
1.2
|
Other interest charges
|
|
0.1
|
-
|
Total financing expense
|
|
32.2
|
18.7
|
8.
Tax expense
The Group calculates the tax
expense for the year using the tax rate that would be applicable to
the expected total annual earnings. The major components of tax
expense in the Consolidated Statement of Profit or Loss
are:
|
|
FY24
£m
|
FY23
£m
|
Current tax
|
|
|
|
Current tax on UK profit for the
year
|
|
17.2
|
28.1
|
Adjustment in respect of prior
years
|
|
(0.6)
|
(1.7)
|
Current tax on overseas profits
for the year
|
|
6.4
|
4.3
|
|
|
23.0
|
30.7
|
Deferred tax
|
|
|
|
Origination and reversal of
temporary differences
|
|
(0.8)
|
(1.0)
|
Adjustment in respect of prior
years
|
|
1.6
|
0.8
|
|
|
0.8
|
(0.2)
|
|
|
|
|
Total tax expense in the Consolidated Statement of Profit or
Loss
|
|
23.8
|
30.5
|
|
|
|
|
Other Comprehensive Income
|
|
|
|
Tax in relation to unexercised
share options
|
|
(0.5)
|
-
|
Tax in relation to cash flow
hedges
|
|
0.7
|
(0.2)
|
Total tax expense in the Consolidated Statement of
Comprehensive Income
|
|
24.0
|
30.3
|
|
|
|
|
|
|
FY24
£m
|
FY23
£m
|
Factors affecting the tax expense for the
year:
|
|
|
Profit before tax
|
93.0
|
159.4
|
Profit before tax multiplied by
standard rate of UK corporation tax of 25% (FY23: 19%)
|
23.3
|
30.3
|
Effects of:
|
|
|
Non-deductible expenses
|
0.2
|
0.2
|
Effect of change in UK tax
rate
|
-
|
0.1
|
Share-based payments
|
0.3
|
0.1
|
Difference in foreign tax
rates
|
(0.8)
|
0.8
|
Other adjustments
|
(0.2)
|
(0.1)
|
Adjustments in respect of prior
years1
|
1.0
|
(0.9)
|
Total tax expense in the Consolidated Statement of Profit or
Loss
|
23.8
|
30.5
|
|
|
|
Other Comprehensive Income
|
|
|
Tax in relation to unexercised
share options
|
(0.5)
|
-
|
Tax in relation to cash flow
hedges
|
0.7
|
(0.2)
|
Total tax expense in the Consolidated Statement of
Comprehensive Income
|
24.0
|
30.3
|
Effective tax rate
|
25.6%
|
19.1%
|
1. The adjustments in respect of
the prior years are in relation to current and deferred tax on
temporary differences.
Factors that may affect
future tax charges
On 20 June 2023, Finance (No.2)
Act 2023 was substantively enacted in the UK, introducing a global
minimum effective tax rate of 15% for large groups for financial
years beginning on or after 31 December 2023.
Based on an initial analysis, all
territories in which the Group operates are expected to qualify for
one of the safe harbour exemptions such that top-up taxes should
not apply. To the extent that this is not the case there is the
potential for Pillar Two taxes to apply, but these are not expected
to be material.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
9.
Earnings per share
The calculation of basic earnings
per share is based on the profit attributable to ordinary
shareholders of the Parent Company divided by the weighted average
number of ordinary shares in issue during the year.
Diluted earnings per share is
calculated by dividing the profit for the year attributable to
ordinary equity holders of the Parent Company by the weighted
average number of ordinary shares in issue during the year plus the
weighted average number of ordinary shares that would be issued on
the conversion of all dilutive potential ordinary shares into
ordinary shares.
|
|
FY24
£m
|
FY23
£m
|
Profit after tax
|
|
69.2
|
128.9
|
|
|
|
|
|
|
FY24
|
FY23
|
|
|
No.
|
No.
|
Weighted average number of shares
for calculating basic earnings per share (millions)
|
|
983.5
|
1,000.5
|
Potentially dilutive share awards
(millions)
|
|
2.1
|
0.7
|
Weighted average number of shares for calculating diluted
earnings per share (millions)
|
|
985.6
|
1,001.2
|
|
|
|
|
|
|
FY24
|
FY23
|
Earnings per share
|
|
|
|
Basic earnings per
share
|
|
7.0p
|
12.9p
|
Diluted earnings per
share
|
|
7.0p
|
12.9p
|
During the year to 31 March 2024
the Group repurchased 39.9 million shares. The cash outflow was
£50.5m (including transaction costs of £0.5m) pursuant to the share
buyback scheme that was announced on 14 July 2023 and concluded
on 19 December 2023.
10.
Dividends
|
|
FY24
£m
|
FY23
£m
|
Equity dividends on ordinary shares declared and paid during
the year
|
|
|
|
Final dividend paid for FY23:
4.28p (FY22: 4.28p)
|
|
42.8
|
42.8
|
Interim dividend for FY24: 1.56p
(FY23: 1.56p)
|
|
15.0
|
15.6
|
Total dividends declared and paid
during the year
|
|
57.8
|
58.4
|
|
|
|
|
Proposed for approval by shareholders at the
AGM
|
|
|
|
(not recognised as a liability at
31 March 2024 or 31 March 2023)
|
|
|
|
Final dividend for FY24: 0.99p
(FY23: 4.28p)
|
|
9.5
|
42.8
|
|
|
|
|
Total interim dividend paid and final dividend
proposed
|
|
24.5
|
58.4
|
|
|
|
|
Dividend as a % of
earnings
|
|
35%
|
45%
|
|
|
|
|
Dividend per share
|
|
|
|
Total dividend per share
(pence)
|
|
2.55p
|
5.84p
|
The Board has proposed, subject to
shareholder approval, a final dividend of 0.99p (FY23: 4.28p),
taking the total dividend for FY24, including the interim dividend
of 1.56p, to 2.55p, a 35% payout ratio. Whilst this is a
year-on-year reduction given the higher payout in FY23 and lower
earnings achieved this year, the 35% payout for FY24 is at the top
of the policy range. The Board's intention
is to hold the FY25 dividend flat in absolute terms, before
returning to an earnings payout in line with our dividend policy
(of 25% to 35% payout) in FY26 onwards.
Going forwards, the Board is also
adopting a consistent approach to setting the interim dividend,
with this dividend set at one-third of the previous year's total
dividend. We are also adjusting the payment dates for the
dividends, to better reflect the trading cash profile of the Group,
and therefore the final dividend will be paid in early
October. The final dividend for FY24 will
be paid to shareholders on the register as at 30 August 2024 with
payment on 1 October 2024.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
11.
Intangible assets
|
Software
intangibles1
£m
|
Other
intangibles
£m
|
Goodwill
£m
|
Total
£m
|
Cost
|
|
|
|
|
At 1 April 2022
|
38.8
|
1.2
|
240.7
|
280.7
|
Additions
|
11.8
|
-
|
-
|
11.8
|
Disposals
|
(2.5)
|
-
|
-
|
(2.5)
|
Reclassifications to right-of-use
assets2
|
(0.2)
|
-
|
-
|
(0.2)
|
Reclassifications to property,
plant and equipment
|
(0.1)
|
-
|
-
|
(0.1)
|
Foreign exchange
|
0.4
|
-
|
-
|
0.4
|
At 31 March 2023
|
48.2
|
1.2
|
240.7
|
290.1
|
Additions
|
10.2
|
-
|
-
|
10.2
|
Disposals
|
(1.0)
|
-
|
-
|
(1.0)
|
Foreign exchange
|
(0.1)
|
-
|
-
|
(0.1)
|
At 31 March 2024
|
57.3
|
1.2
|
240.7
|
299.2
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
At 1 April 2022
|
18.6
|
-
|
-
|
18.6
|
Charge for the year
|
8.4
|
-
|
-
|
8.4
|
Disposals
|
(2.4)
|
-
|
-
|
(2.4)
|
Foreign exchange
|
(0.1)
|
-
|
-
|
(0.1)
|
At 31 March 2023
|
24.5
|
-
|
-
|
24.5
|
Charge for the year
|
5.7
|
0.1
|
-
|
5.8
|
Disposals
|
(1.0)
|
-
|
-
|
(1.0)
|
Foreign exchange
|
(0.2)
|
0.1
|
-
|
(0.1)
|
At 31 March 2024
|
29.0
|
0.2
|
-
|
29.2
|
|
|
|
|
|
Net book value
|
|
|
|
|
At 31 March 2024
|
28.3
|
1.0
|
240.7
|
270.0
|
At 31 March 2023
|
23.7
|
1.2
|
240.7
|
265.6
|
1.
Software intangible additions in the year of
£10.2m (FY23: £11.8m) include permanent employee staff costs
capitalised of £0.8m (FY23: £0.6m).
2.
Relates to a reclassification of assets to
right-of-use assets in relation to key money.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
11.
Intangible assets (continued)
Goodwill impairment assessment
Goodwill is required to be tested
for impairment on an annual basis by estimating the asset's
recoverable amount. An asset's recoverable amount is the higher of
its fair value less costs of disposal and its value in use. An
impairment is present if the recoverable amount is less than the
carrying value of the asset. The
recoverable amount is estimated for goodwill with reference to the
cash generating units (CGUs) to which goodwill was originally
allocated and each of these CGUs has been
separately assessed and tested. The CGUs were agreed by the
Directors as the geographical regions in which the Group operates.
These regions are the lowest level at which goodwill is monitored
and represent identifiable operating segments. There have been no
changes to the composition of the Group's CGUs during the
period.
The aggregate carrying amount of
goodwill allocated to each CGU was as follows:
|
|
FY24
£m
|
FY23
£m
|
EMEA
|
|
66.6
|
66.6
|
Americas
|
|
114.1
|
114.1
|
APAC
|
|
60.0
|
60.0
|
|
|
240.7
|
240.7
|
All CGUs were tested for
impairment. No impairment charge was made in the current year
(FY23: £nil).
Judgements, assumptions and
estimates
The results of the Company's
impairment tests are dependent upon estimates and judgements made
by management. All CGUs' recoverable
amounts are measured using a value in use calculation. The value in
use calculation uses cash flow forecasts based on financial
projections reviewed by the Board covering a five-year period
(pre-perpetuity). The forecasts are based on annual budgets and
strategic projections representing the best estimate of future
performance. Management considers forecasting over this period to
appropriately reflect the business cycle of the CGUs. These cash
flows are consistent with those used to review going concern and
viability, however, are required by IAS 36 to be adjusted for use
within an impairment review to exclude new retail development to
which the Group is not yet committed.
In determining the value in use of
CGUs it is necessary to make a series of assumptions to estimate
the present value of future cash flows. The following key
assumptions have been made by management reflecting past experience
and are consistent with relevant external sources of
information.
Operating cash
flows
The main assumptions within the
forecast operating cash flows include the achievement of future
growth in ecommerce, retail and wholesale channels, sales prices
and volumes (including reference to specific customer relationships
and product lines), raw material input costs, the cost structure of
each CGU, the impact of foreign currency rates upon selling price
and cost relationships and the levels of capital expenditure
required to support each sales channel.
Pre-tax risk adjusted
discount rates
Future cash flows are discounted
to present value using pre-tax discount
rates derived from risk-free rates based on long-term government
bonds, adjusted for risk factors such as region and market risk in
the territories in which the Group operates and the time value of
money. Consistent with the 2019 IFRS IASB Staff Paper, post-tax
discount rates and post-tax cash flows are used as observable
inputs, and then the pre-tax discount rates are calculated from
this to comply with the disclosure requirements under IAS
36.
The pre-tax risk adjusted discount
rates have been calculated to be 12.7% for EMEA (FY23: 12.3%),
12.6% for Americas (FY23: 12.5%), and 12.4% for APAC (FY23:
11.6%).
Long-term growth
rates
To forecast beyond the five-year
detailed cash flows into perpetuity, a long-term average growth
rate has been used. The long-term growth rates applied for the
regions are 1.9% for EMEA (FY23: 1.9%), 2.2% for Americas (FY23:
2.2%), and 3.4% for APAC (FY23: 3.5%). The rates used are in line
with geographical forecasts included within industry
reports.
Sensitivity
analysis
Sensitivity analysis to potential
changes in these key assumptions has been reviewed and
there are no reasonably possible changes to key
assumptions that would cause the carrying amount for any CGU to
exceed its recoverable amount.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
12.
Property, plant and equipment
|
Freehold property and
improvements
|
Leasehold
improvements
|
Plant, machinery, fixtures
and fittings
|
Office and computer
equipment
|
Motor
vehicles
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
Cost
|
|
|
|
|
|
|
At 1 April 2022
|
6.5
|
60.0
|
4.6
|
8.3
|
0.1
|
79.5
|
Additions
|
1.0
|
19.9
|
12.7
|
2.8
|
-
|
36.4
|
Disposals
|
-
|
(5.0)
|
(0.9)
|
(2.4)
|
(0.1)
|
(8.4)
|
Reclassifications from intangible
fixed assets
|
-
|
0.1
|
-
|
-
|
-
|
0.1
|
Foreign exchange
|
0.5
|
1.3
|
(0.2)
|
-
|
-
|
1.6
|
At 31 March 2023
|
8.0
|
76.3
|
16.2
|
8.7
|
-
|
109.2
|
Additions
|
0.1
|
14.7
|
0.1
|
1.3
|
-
|
16.2
|
Disposals
|
(0.1)
|
(3.9)
|
-
|
(1.3)
|
-
|
(5.3)
|
Reclassifications to right-of-use
assets
|
-
|
(3.3)
|
-
|
-
|
-
|
(3.3)
|
Foreign exchange
|
(0.2)
|
(1.8)
|
(0.3)
|
(0.2)
|
-
|
(2.5)
|
At 31 March 2024
|
7.8
|
82.0
|
16.0
|
8.5
|
-
|
114.3
|
|
|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
At 1 April 2022
|
0.4
|
31.9
|
3.2
|
5.6
|
0.1
|
41.2
|
Charge for the year
|
0.3
|
10.3
|
1.0
|
2.0
|
-
|
13.6
|
Impairment
|
-
|
0.5
|
-
|
0.1
|
-
|
0.6
|
Eliminated on disposal
|
-
|
(5.0)
|
(0.9)
|
(2.4)
|
(0.1)
|
(8.4)
|
Foreign exchange
|
(0.1)
|
1.0
|
0.1
|
(0.1)
|
-
|
0.9
|
At 31 March 2023
|
0.6
|
38.7
|
3.4
|
5.2
|
-
|
47.9
|
Charge for the year
|
0.3
|
11.9
|
0.8
|
2.2
|
-
|
15.2
|
Impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
Eliminated on disposal
|
(0.1)
|
(3.9)
|
-
|
(1.3)
|
-
|
(5.3)
|
Reclassifications to right-of-use
assets
|
-
|
(1.6)
|
-
|
-
|
-
|
(1.6)
|
Foreign exchange
|
-
|
(1.2)
|
-
|
(0.1)
|
-
|
(1.3)
|
At 31 March 2024
|
0.8
|
43.9
|
4.2
|
6.0
|
-
|
54.9
|
|
|
|
|
|
|
|
Net book value
|
|
|
|
|
|
|
At 31 March 2024
|
7.0
|
38.1
|
11.8
|
2.5
|
-
|
59.4
|
At 31 March 2023
|
7.4
|
37.6
|
12.8
|
3.5
|
-
|
61.3
|
13.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
12.
Property, plant and equipment (continued)
Set out below are the carrying
amounts of right-of-use assets recognised and the movements during
the year:
|
Right-of-use
assets
£m
|
Cost or valuation
|
|
At 1 April 2022
|
159.5
|
Additions1
|
66.3
|
Reassessments of
leases2
|
5.5
|
Reclassifications from intangible
fixed assets
|
0.2
|
Disposals
|
(0.8)
|
Foreign exchange
|
4.7
|
At 31 March 2023
|
235.4
|
Additions1
|
77.0
|
Reassessments of
leases2
|
(4.0)
|
Reclassifications from property,
plant and equipment
|
3.3
|
Modifications of leases
|
10.1
|
Disposals
|
(10.1)
|
Foreign exchange
|
(8.8)
|
At 31 March 2024
|
302.9
|
|
|
Accumulated depreciation and impairment
|
|
At 1 April 2022
|
54.0
|
Charge for the year
|
32.2
|
Impairment3
|
3.3
|
Foreign exchange
|
1.8
|
At 31 March 2023
|
91.3
|
Charge for the year
|
51.3
|
Reclassifications from property,
plant and equipment
|
1.6
|
Disposals
|
(10.0)
|
Foreign exchange
|
(4.8)
|
At 31 March 2024
|
129.4
|
|
|
Net book value
|
|
At 31 March 2024
|
173.5
|
At 31 March 2023
|
144.1
|
1. Additions include £2.0m of direct costs (FY23: £3.2m) and £2.5m
(FY23: £2.7m) in relation to costs of removal and
restoring.
2.Lease
reassessments relate to measurement adjustments for rent reviews
and stores that have exercised lease breaks.
3.During
FY23, impairment charged was mainly in relation to three stores in
the USA where footfall recovery, in their locality, was weak, and
they were written down to £nil.
Impairment of property,
plant and equipment and right-of-use assets
The Group has determined that each
retail store is a separate CGU. Each CGU is assessed for
indicators of impairment at the Balance Sheet date and tested for
impairment if any indicators exist. The Group has some leases that
meet the IAS 36 definition of corporate assets, such as offices, as
they do not generate independent cash flows. These are assessed for
impairment indicators and if required to be tested for impairment,
are done so using the two-step impairment process under IAS 36 in
which they are allocated to the Regional-level CGUs as determined
for goodwill impairment (note 11). There has been no change to the
way in which CGUs are determined in the period.
Judgements, assumptions and
estimates - retail stores
The results of the Company's
impairment tests are dependent upon estimates and judgements made
by management. If an indicator of
impairment has been identified, a CGU's recoverable amount is
measured using the value in use method. The value in use
calculation uses cash flow forecasts based on financial projections
reviewed by the Board covering a five-year period. The forecasts
are based on annual budgets and strategic projections representing
the best estimate of future performance. Management considers
forecasting over this period to appropriately reflect the business
cycle of the CGUs. These cash flows are consistent with those used
to review going concern and viability, however, are adjusted for
relevance to the nature and tenure of the retail store
lease.
If determining the value in use of
CGUs it is necessary to make a series of assumptions to estimate
the present value of future cash flows which reflect past
experience and are consistent with relevant external sources of
information.
Operating cash flows -
retail stores
If an indicator of impairment has
been identified and a CGU's recoverable amount is required to be
estimated, the main assumptions within the forecast operating cash
flows include the achievement of future growth in retail sales,
sales prices and volumes, raw material input costs, the cost
structure of each CGU, the impact of foreign currency rates upon
selling price and cost relationships and the levels of capital
expenditure required to support the associated sales.
Pre-tax risk adjusted
discount rate - retail stores
If an indicator of impairment has
been identified and a CGU's recoverable amount is required to be
estimated future cash flows are discounted to present value using
a pre-tax discount rate derived from
risk-free rates based on long-term government bonds, adjusted for
risk factors such as region and market risk in the territories in
which the Group operates and the time value of money. Consistent
with the 2019 IFRS IASB Staff Paper, a post-tax discount rate and
post-tax cash flows are used as observable inputs, and then the
pre-tax discount rate is calculated from this to comply with the
disclosure requirements under IAS 36. The pre-tax discount rate for
the Group has been calculated to be 12.7% (FY23: 12.3%).
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
12.
Property, plant and equipment (continued)
Sensitivity analysis -
retail stores
If an indicator of impairment has
been identified and a CGU's recoverable amount is required to be
estimated, the results of the Group's impairment tests are
dependent upon estimates and judgements made by management. No
indicators of impairment were identified in FY24 and therefore no
recoverable amount was estimated (FY23: sensitivity analysis to
potential changes in key assumptions were reviewed and there were
no reasonably possible changes to key assumptions that would have
caused the carrying amount of any CGU to exceed its recoverable
amount).
13.
Inventories
|
|
FY24
£m
|
FY23
£m
|
Raw materials
|
|
2.2
|
2.3
|
Finished goods
|
|
252.4
|
255.5
|
Inventories net of
provisions
|
|
254.6
|
257.8
|
|
|
|
|
|
|
FY24
£m
|
FY23
£m
|
Inventory provision
|
|
2.6
|
2.7
|
Inventory written off to
Consolidated Statement of Profit or Loss
|
|
0.9
|
0.8
|
The cost of inventories recognised
as an expense and included in cost of sales amounted to £284.3m
(FY23: £348.8m). The remainder of total cost of sales of £301.9m
(FY23: £382.2m) relates to freight including shipping out
costs.
14.
Trade and
other receivables
|
|
FY24
£m
|
FY23
£m
|
Trade receivables
|
|
55.1
|
80.6
|
Less: allowance for expected
credit losses
|
|
(0.8)
|
(1.8)
|
Trade receivables - net
|
|
54.3
|
78.8
|
Other receivables
|
|
7.7
|
7.5
|
|
|
62.0
|
86.3
|
Prepayments
|
|
6.8
|
6.7
|
|
|
68.8
|
93.0
|
All trade and other receivables
are expected to be recovered within 12 months of the year-end date.
Due to the short-term nature of the current receivables, their
carrying amount is considered to be the same as their fair value.
The carrying value of trade receivables represents the maximum
exposure to credit risk. For some trade receivables the Group may
obtain security in the form of guarantees, insurances or letters of
credit which can be called upon if the counterparty is in default
under the terms. As at 31 March 2024 the amount of collateral held
was £0.3m (FY23: £0.3m).
As at 31 March 2024 trade
receivables of £1.9m (FY23: £4.5m) were due over 90 days, trade
receivables of £0.7m (FY23: £1.4m) were due between 60-90 days and
trade receivables of £52.5m (FY23: £75.0m) were due in less than 60
days. The Group establishes a loss allowance that represents its
estimate of potential losses in respect of trade receivables, where
it is deemed that a receivable may not be recovered, and considers
factors which may impact risk of default.
Where appropriate, we have grouped
these receivables with the same overall risk characteristics. When
the receivable is deemed irrecoverable, the provision is written
off against the underlying receivables.
The Group applies the IFRS 9
simplified approach to measuring expected credit losses (bad debt
provision) which uses a lifetime expected loss allowance for all
trade receivables.
To measure expected credit losses
(bad debt provision), trade receivables have been grouped based on
customer segment, geographical location, and the days past due. The
expected loss rates are based on the historical credit losses
experienced in previous periods. The rates are adjusted to reflect
current and forward-looking information, including macroeconomic
factors, by obtaining and reviewing relevant market data affecting
the ability of customers to settle the receivables based on their
customer segment and geographical location. Where objective
evidence exists that a trade receivable balance may be impaired,
provision is made for the difference between its carrying amount
and the present value of the estimated cash that will be recovered.
Evidence of impairment may include such factors as a customer
entering insolvent administration proceedings.
As at 31 March 2024 trade
receivables were carried net of expected credit losses (bad debt
provision) of £0.8m (FY23: £1.8m). The individually impaired
receivables relate mainly to accounts which are outside the normal
credit terms. The ageing analysis of these provisions against trade
receivables is as follows:
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
14.
Trade and
other receivables (continued)
|
|
FY24
£m
|
FY23
£m
|
Up to 60 days
|
|
0.1
|
0.4
|
60 to 90 days
|
|
-
|
0.1
|
Over 90 days
|
|
0.7
|
1.3
|
|
|
0.8
|
1.8
|
|
|
FY24
£m
|
FY23
£m
|
At 1 April
|
|
1.8
|
0.7
|
Change in provision for expected
credit losses
|
|
(1.0)
|
1.1
|
At 31 March
|
|
0.8
|
1.8
|
The carrying amount of the Group's
trade and other receivables is denominated in the following
currencies:
|
|
FY24
£m
|
FY23
£m
|
UK Sterling
|
|
4.9
|
4.1
|
Euro
|
|
13.1
|
28.0
|
US Dollar
|
|
27.4
|
43.7
|
Japanese Yen
|
|
2.5
|
1.5
|
Other currencies
|
|
6.4
|
1.5
|
|
|
54.3
|
78.8
|
15.
Cash and cash equivalents
|
|
FY24
£m
|
FY23
£m
|
Cash and cash
equivalents
|
|
111.1
|
157.5
|
16.
Trade and other payables
|
|
FY24
£m
|
FY23
£m
|
Trade payables
|
|
33.0
|
64.2
|
Taxes and social security
costs
|
|
12.2
|
10.2
|
Other payables
|
|
7.6
|
5.6
|
|
|
52.8
|
80.0
|
Accruals1
|
|
39.4
|
47.7
|
|
|
92.2
|
127.7
|
1.
Included within accruals is the refund liability of £3.9m (FY23:
£4.5m) and deferred income of £2.5m (FY23: £1.8m). The balance of
£33.0m (FY23: £41.4m) consists of accruals for royalties, goods
received not invoiced and other accruals.
All trade and other payables are
expected to be settled within 12 months of the year-end date. Due
to the short-term nature of the current payables, their carrying
amount is considered to be the same as their fair value. At 31
March 2024, other payables included £6.3m (FY23: £5.6m) in relation
to employment related payables, mainly the holiday pay
accrual.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
17.
Borrowings
|
|
FY24
£m
|
FY23
£m
|
Current
|
|
|
|
Bank interest
|
|
8.4
|
6.0
|
Lease liabilities (note
28)
|
|
47.0
|
28.1
|
Total current
|
|
55.4
|
34.1
|
|
|
|
|
Non-current
|
|
|
|
Bank loans (net of unamortised
bank fees)
|
|
286.3
|
293.4
|
Lease liabilities (note
28)
|
|
135.3
|
124.3
|
Total non-current
|
|
421.6
|
417.7
|
|
|
|
|
Total borrowings1
|
|
477.0
|
451.8
|
|
|
|
|
Analysis of bank loan:
|
|
|
|
Non-current bank loans (net of
unamortised bank fees)
|
|
286.3
|
293.4
|
Add back unamortised
fees
|
|
2.3
|
3.4
|
Total gross bank loan
|
|
288.6
|
296.8
|
1. From
total borrowings, only bank loans (excluding unamortised bank fees)
and lease liabilities are included in debt for bank loan covenant
calculation purposes.
On 29 January 2021, the Group
entered into a New Facilities Agreement, comprising a new Term Loan
B facility of €337.5m (equivalent to £300.0m at that date) and a
new multi-currency revolving credit facility of £200.0m. These
facilities have a maturity date of 2 February 2026. Included within
this agreement is a committed ancillary facility of which £3.4m
(FY23: £3.7m) has been utilised primarily related to landlord bank
guarantees.
During the year the Group drew
down £30.0m (FY23: £nil) of debt under the revolving credit
facility to support short-term working capital requirements, and
this was fully repaid during the year on 30 November
2023.
The Group value of the bank loan
as at 31 March 2024 (excluding unamortised bank fees and accrued
interest) of £288.6m (FY23: £296.8m) is £11.4m lower (FY23: £3.2m
lower) than the amount borrowed on 29 January 2021 due to an
appreciation of the GBP/Euro foreign exchange rate movement. The
Group's total gross bank loan is denominated in Euros and loan
repayments will occur in February 2026.
The Group's total gross bank loan
is denominated in the following currencies:
|
|
FY24
£m
|
FY23
£m
|
Euro Term Loan
B1
|
|
288.6
|
296.8
|
Total bank loan
|
|
288.6
|
296.8
|
1. Euro
denominated amount €337.5m (FY23: €337.5m).
Loan repayments will occur as follows:
|
|
|
Term
Loan
B
(Euro)
£m
|
Year to 31 March
|
|
|
|
2026 (2 February 2026)
(€337.5m)
|
|
|
288.6
|
Total
|
|
|
288.6
|
Interest of the Euro Term Loan B
is charged with a variable margin depending on the Group leverage
over floating EURIBOR. The weighted total interest rate for this
instrument in the year was 6.6% (FY23: 3.57%).
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
17.
Borrowings (continued)
Implementation of alternative
benchmark interest rates
Following the cessation of several
'Inter Bank Offer Rates' (IBORs) the Group has continued to
transition to using alternative benchmark interest rates where
appropriate, with the overall impact assessed as being
immaterial.
The Group's existing £200m
multi-currency revolving credit facility was transitioned to allow
the continued drawing of GBP and JPY as currencies fixing against
Risk Free Rates (SONIA and TONIA respectively) from
LIBOR.
The Group's €337.5m Euro Term Loan
B currently fixes against floating EURIBOR where, following a
methodology reform of this benchmark by the European Money Markets
Institute (EMMI) in 2019, no indication has been given that it is
likely to cease in the near future. The Group assesses there
to be no other material impact as part of the reform and has no
interest rate hedge accounting relationships as at 31 March
2024.
Bank loans
|
|
FY24
£m
|
FY23
£m
|
Revolving credit facility utilisation
|
|
|
|
Guarantees
|
|
3.4
|
3.7
|
Total utilised facility
|
|
3.4
|
3.7
|
Available facility
(unutilised)
|
|
196.6
|
196.3
|
Total revolving facility
|
|
200.0
|
200.0
|
|
|
%
|
%
|
Interest rate charged on
unutilised facility
|
|
0.90
|
0.83
|
The bank loans are secured by a
fixed and floating charge over all assets of the
Group.
On 29 January 2021, the Group
entered into a £200.0m multi-currency revolving credit facility
available until 2 February 2026.
Fair value measurement
The fair value of the items
classified as loans and borrowings is shown above. The book and
fair values of borrowings are deemed to be materially
equal.
Movements in bank loans (excluding
the accrual and payment of interest) were as follows:
|
|
Cash flows
|
|
|
1 April
2023
|
New loans
|
Repayment of
capital
|
Foreign exchange
movement
|
31 March
2024
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Euro Term Loan B
|
296.8
|
-
|
-
|
(8.2)
|
288.6
|
Total borrowings
|
296.8
|
-
|
-
|
(8.2)
|
288.6
|
|
|
Cash
flows
|
|
|
1 April
2022
|
New
loans
|
Repayment of capital
|
Foreign
exchange movement
|
31 March
2023
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Euro Term Loan B
|
285.6
|
-
|
-
|
11.2
|
296.8
|
Total borrowings
|
285.6
|
-
|
-
|
11.2
|
296.8
|
Net debt1 reconciliation
The breakdown of net
debt1 was as follows:
|
|
FY24
£m
|
FY23
£m
|
Cash and cash
equivalents
|
|
111.1
|
157.5
|
Bank loans (net of unamortised
bank fees)
|
|
(286.3)
|
(293.4)
|
Lease liabilities
|
|
(182.3)
|
(152.4)
|
Net debt1
|
|
(357.5)
|
(288.3)
|
1. Alternative Performance Measure
'APM' as defined in the Glossary on pages 66 and 67.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
18.
Provisions
|
|
Property
provisions
£m
|
Total
£m
|
At 1 April 2022
|
|
1.9
|
1.9
|
Arising during the year
|
|
2.7
|
2.7
|
Amounts utilised
|
|
(0.2)
|
(0.2)
|
At 31 March 2023
|
|
4.4
|
4.4
|
Arising during the year
|
|
2.5
|
2.5
|
Amounts utilised
|
|
(0.4)
|
(0.4)
|
Foreign exchange
|
|
(0.2)
|
(0.2)
|
At 31 March 2024
|
|
6.3
|
6.3
|
Property provisions relate to the
estimated repair and restoration costs for retail stores at the end
of the lease. The provisions are not discounted for the time value
of money as this is not considered materially different from the
current cost.
19.
Derivative assets and liabilities
|
|
FY24
£m
|
FY23
£m
|
Assets
|
|
|
|
Foreign exchange forward contracts
- Current
|
|
1.5
|
0.5
|
Foreign exchange forward contracts
- Non-current
|
|
0.1
|
-
|
|
|
|
|
Liabilities
|
|
|
|
Foreign exchange forward contracts
- Current
|
|
(0.1)
|
(1.3)
|
Foreign exchange forward contracts
- Non-current
|
|
-
|
-
|
Derivative financial instruments
consist of foreign exchange forward contracts, which are
categorised within Level 2 (refer to note 2.16 for details on fair
value hierarchy categorisation). The full fair value of a
derivative is classified as a non-current asset or liability if the
remaining maturity is more than 12 months and as a current asset or
liability if the maturity of the derivative is less than 12
months.
Foreign exchange forward derivatives
The Group takes a holistic
approach to foreign exchange risk, viewing exposures on Group wide
net cash flow basis, seeking to maximise natural offsets wherever
possible. Where considered material the Group manages its exposure
to variability in GBP from foreign exchange by hedging highly
probable future cash flows arising in other currencies. The Group's
principal net currency exposures are to EUR, CAD, JPY and
USD.
The Group adopts a rolling,
layered approach to hedging its operating cash flows using forward
foreign exchange contracts on an 18-month horizon. Other derivative
contracts and longer tenors may be used provided these are approved
by the Board and Audit and Risk Committee. The Group also utilises
foreign exchange derivatives in a hedging relationship to partially
hedge the foreign exchange translation risk (into functional GBP)
on its term loan.
The following table represents the
nominal amounts and types of derivatives held as at each Balance
Sheet date:
|
|
FY24
|
FY23
|
Average foreign exchange rate
|
|
|
|
Cash flow hedges: sell GBP buy
EUR
|
|
1.1539
|
1.1225
|
Cash flow hedges: sell EUR buy
GBP
|
|
1.1366
|
1.1381
|
Derivatives measured at fair value
through profit or loss: sell EUR buy GBP
|
|
1.1448
|
-
|
|
|
|
|
Nominal amounts
|
|
|
|
Cash flow hedges: sell GBP buy EUR
|
|
€m
|
€m
|
Less than a year
|
|
130.0
|
136.3
|
More than a year but less than two
years
|
|
-
|
-
|
|
|
|
|
Cash flow hedges: sell EUR buy GBP
|
|
£m
|
£m
|
Less than a year
|
|
66.5
|
76.0
|
More than a year but less than two
years
|
|
2.1
|
5.8
|
|
|
|
|
Derivatives measured at fair value through profit or loss:
sell EUR buy GBP
|
|
£m
|
£m
|
Less than a year
|
|
1.9
|
-
|
More than a year but less than two
years
|
|
-
|
-
|
For hedges of forecast receipts
and payments in foreign currencies, the critical terms of the
hedging instruments match exactly with the terms of the hedged
items and, therefore, the Group performs a qualitative assessment
of effectiveness. The fair value of forecast hedge items are
assessed to move materially equally and opposite to continuing cash
flow hedge instruments. Ineffectiveness may arise if the
timing of the forecast transaction changes from what was originally
estimated or if there are changes in the credit risk of the Group
or the derivative counterparty. The hedge ratio is 1:1.
If a hedged item is no longer
expected to occur, the hedge instruments are immediately
de-designated from a cash flow hedge relationship. Amounts
recognised in relation to de-designated derivatives are released
from the hedging reserve and thereafter movements are classified as
fair value through profit or loss. Amounts de-designated during the
year ended 31 March 2024 were not material.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
19.
Derivative assets and liabilities (continued)
(Losses)/gains reclassified from
the Consolidated Statement of Comprehensive Income to the
Consolidated Statement of Profit or Loss during the period are as
follows:
|
|
FY24
£m
|
FY23
£m
|
Revenue
|
|
1.5
|
(1.5)
|
Foreign exchange
(losses)/gains
|
|
(5.4)
|
4.0
|
|
|
(3.9)
|
2.5
|
Derivative financial assets and
liabilities are subject to offsetting, enforceable master netting
arrangements with counterparties. However, these amounts are
presented gross on the face of the Balance Sheet as the conditions
for netting specified in IAS 32 'Financial Instruments
Presentation' are not met.
|
|
FY24
|
|
|
Gross carrying
amounts
£m
|
Amounts not
offset
£m
|
Net
amounts
£m
|
Derivative financial
assets
|
|
1.6
|
(0.1)
|
1.5
|
Derivative financial
liabilities
|
|
(0.1)
|
0.1
|
-
|
|
|
FY23
|
|
|
Gross
carrying amounts
£m
|
Amounts
not offset
£m
|
Net
amounts
£m
|
Derivative financial
assets
|
|
0.5
|
(0.4)
|
0.1
|
Derivative financial
liabilities
|
|
(1.3)
|
0.4
|
(0.9)
|
20.
Investments
|
|
FY24
£m
|
FY23
£m
|
Investments
|
|
1.0
|
1.0
|
On 16 January 2023 the Group made
an investment of £1.0m in the share capital of Generation Phoenix
Ltd (GP), a company that specialises in producing a sustainable
alternative to leather and produces a recycled leather product
using part processed offcuts.
21.
Financial instruments
IFRS 13 requires the
classification of financial instruments measured at fair value to
be determined by reference to the source of inputs used to derive
fair value. The fair values of all financial instruments, except
for leases, in both years are materially equal to their carrying
values. All financial instruments are measured at amortised cost
with the exception of derivatives, cash amounts held within Money
Market Funds, and investments in equity instruments which are
measured at fair value. Derivatives and Money Market Funds are
classified as Level 2 under the fair value hierarchy, and
investments in equity instruments as Level 3, which is consistent
with that defined in note 2.16 of the Consolidated Financial
Statements for the year ended 31 March 2024.
|
|
31 March
2024
|
|
|
Assets at amortised
cost
£m
|
Fair value through other
comprehensive income
£m
|
Fair value through profit or
loss
£m
|
Total
£m
|
Assets as per Balance Sheet
|
|
|
|
|
|
Investments
|
|
-
|
1.0
|
-
|
1.0
|
Trade and other receivables
excluding prepayments and accrued
income
|
|
62.0
|
-
|
-
|
62.0
|
Derivative financial assets -
Current
|
|
-
|
1.5
|
-
|
1.5
|
Derivative financial assets -
Non-current
|
|
-
|
0.1
|
-
|
0.1
|
Cash and cash
equivalents
|
|
52.2
|
-
|
58.91
|
111.1
|
|
|
114.2
|
2.6
|
58.9
|
175.7
|
1. A proportion of our cash is
invested in high-quality overnight money market funds to mitigate
concentration and counterparty risk.
|
|
Liabilities at amortised
cost
£m
|
Fair value through other
comprehensive income
£m
|
Fair value through profit or
loss
£m
|
Total
£m
|
Liabilities as per Balance Sheet
|
|
|
|
|
|
Bank debt
|
|
288.6
|
-
|
-
|
288.6
|
Bank interest - Current
|
|
8.4
|
-
|
-
|
8.4
|
Lease liabilities -
Current
|
|
47.0
|
-
|
-
|
47.0
|
Lease liabilities -
Non-current
|
|
135.3
|
-
|
-
|
135.3
|
Derivative financial instruments -
Current
|
|
-
|
0.1
|
-
|
0.1
|
Trade and other payables excluding
non-financial liabilities (mainly tax and social security
costs)
|
|
77.5
|
-
|
-
|
77.5
|
|
|
556.8
|
0.1
|
-
|
556.9
|
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
21.
Financial instruments (continued)
|
|
31
March 2023
|
|
|
Assets
at amortised cost
£m
|
Fair
value through other comprehensive income
£m
|
Fair
value through profit or loss
£m
|
Total
£m
|
Assets as per Balance Sheet
|
|
|
|
|
|
Investments
|
|
-
|
1.0
|
-
|
1.0
|
Trade and other receivables
excluding prepayments and accrued income
|
|
86.3
|
-
|
-
|
86.3
|
Derivative financial assets -
Current
|
|
-
|
0.5
|
-
|
0.5
|
Cash and cash
equivalents
|
|
86.3
|
-
|
71.21
|
157.5
|
|
|
172.6
|
1.5
|
71.2
|
245.3
|
1. A proportion of our cash is
invested in high-quality overnight money market funds to mitigate
concentration and counterparty risk.
|
|
|
Liabilities at amortised cost
£m
|
Fair
value through other comprehensive income
£m
|
Fair
value through profit or loss
£m
|
Total
£m
|
Liabilities as per Balance Sheet
|
|
|
|
|
|
Bank debt
|
|
293.4
|
-
|
-
|
293.4
|
Bank interest - Current
|
|
6.0
|
-
|
-
|
6.0
|
Lease liabilities -
Current
|
|
28.1
|
-
|
-
|
28.1
|
Lease liabilities -
Non-current
|
|
124.3
|
-
|
-
|
124.3
|
Derivative financial instruments -
Current
|
|
-
|
1.3
|
-
|
1.3
|
Trade and other payables excluding
non-financial liabilities (mainly tax and social security
costs)
|
|
115.7
|
-
|
-
|
115.7
|
|
|
567.5
|
1.3
|
-
|
568.8
|
Group financial risk factors
The Group's activities expose it
to a wide variety of financial risks including liquidity, credit
and market risk (including foreign exchange and interest rate
risks). The Group's Treasury policies seek to manage residual
financial risk to within the Board agreed tolerance in a
cost-effective manner and taking advantage of natural offsets that
exist or can be created through its operating activities. Where
appropriate the Group uses derivative financial instruments to
hedge certain risk exposures (for example to reduce the impacts of
foreign exchange volatility).
Risk management is carried out by
a central Treasury Department under policies approved by the Board
of Directors and the Audit and Risk Committee. Group Finance and
Treasury identifies, evaluates and hedges financial risks in close
cooperation with the Group's Regional operating units. The Board
agrees written principles for overall risk management as well as
written policies covering specific areas such as foreign exchange
risk, interest rate risk, credit risk and
liquidity risk. These policies cover the allowable use of selective
derivative financial instruments and investment management
processes for excess liquidity.
Liquidity risk
Cash flow forecasting is regularly
performed in the operating entities of the Group and aggregated by
Group Treasury. Treasury monitors rolling forecasts of the Group's
liquidity requirements to ensure that it has sufficient cash to
meet operational needs while maintaining sufficient headroom in its
undrawn committed borrowing facilities at all times so that the
Group does not breach borrowing limits or covenants. Surplus cash
held by operating entities over and above balances required for
working capital are transferred to Group Treasury to be managed
centrally. Treasury policy is to invest surplus cash in high
quality, short-term, interest bearing instruments including current
accounts, term deposit and low volatility money market
funds.
The Group continually reviews any
medium to long-term financing requirements to ensure cost effective
access to funding is available if and when it is needed (including
any debt refinancing).
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
21.
Financial instruments (continued)
The table below sets out the
contractual maturities (representing undiscounted contractual cash
flows) of loans, borrowings and other financial
liabilities:
|
At 31 March
2024
|
|
Up to 3
months
|
Between 3 & 12
months
|
Between 1 & 5
years
|
More than 5
years
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Bank loans - Principal
|
-
|
-
|
288.6
|
-
|
288.6
|
Bank loans - Interest
|
10.7
|
11.6
|
22.3
|
-
|
44.6
|
Total bank loans
|
10.7
|
11.6
|
310.9
|
-
|
333.2
|
Lease liabilities
|
14.0
|
39.5
|
118.5
|
30.7
|
202.7
|
Derivative financial
instruments
|
-
|
0.1
|
-
|
-
|
0.1
|
Trade and other payables excluding
non-financial liabilities
|
77.5
|
-
|
-
|
-
|
77.5
|
|
102.2
|
51.2
|
429.4
|
30.7
|
613.5
|
|
|
|
|
|
|
|
At 31
March 2023
|
|
Up to 3
months
|
Between
3 & 12 months
|
Between
1 & 5 years
|
More
than 5 years
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
Bank loans - Principal
|
-
|
-
|
296.8
|
-
|
296.8
|
Bank loans - Interest
|
7.8
|
8.6
|
37.7
|
-
|
54.1
|
Total bank loans
|
7.8
|
8.6
|
334.5
|
-
|
350.9
|
Lease liabilities
|
8.4
|
25.9
|
99.3
|
39.9
|
173.5
|
Derivative financial
instruments
|
0.2
|
1.1
|
-
|
-
|
1.3
|
Trade and other payables excluding
non-financial liabilities
|
115.7
|
-
|
-
|
-
|
115.7
|
|
132.1
|
35.6
|
433.8
|
39.9
|
641.4
|
Credit risk
Credit risk is managed on a Group
basis, except for credit risk relating to accounts receivable
balances. Each local entity is responsible for managing and
analysing the credit risk of their new customers before standard
payment and delivery terms and conditions are offered. Credit risk
arises from cash and cash equivalents, derivative financial
instruments, as well as credit exposures to wholesale and retail
customers, including outstanding receivables and committed
transactions. Cash investments and derivative transactions are only
executed with financial institutions who hold an investment grade
rating with at least one of Moody's, Standard & Poor's or
Fitch's rating agencies. The Group's Treasury policy defines
strict limits that do not allow concentration of risk with
individual counterparties.
For wholesale customers, risk
control assesses the credit quality of the customer, taking into
account its financial position, past experience and other factors.
Individual risk limits are regularly monitored. Sales to wholesale
customers are settled primarily by bank transfer and retail
customers are settled in cash or by major debit/credit cards.
The Group has no significant concentration of credit risk as
exposure is spread over a large number of
customers.
Market
risk
Foreign exchange risk
The Group operates internationally
and is exposed to foreign exchange risk arising from the various
currency exposures, primarily with respect to the US Dollar, Euro,
Canadian Dollar and Japanese Yen. Foreign exchange risk arises from
future commercial transactions, recognised assets and liabilities
and net investments in overseas operations. Foreign exchange risk
arises when future commercial transactions or recognised assets and
liabilities are denominated in a currency that is not the entity's
functional currency.
The Group purchases the vast
majority of its inventory from factories in Asia which are paid in
US Dollars. On a net basis, the majority of Group EBITDA is earned
in currencies other than Pounds Sterling. In addition, the Group
has other currency denominated debt and investments in overseas
operations whose net assets are exposed to foreign currency
translation risk upon consolidation.
Cash flow and fair value interest rate risk
The Group's interest rate risk
arises from its floating rate bank debt and cash amounts held.
Borrowings issued at fixed rates expose the Group to fair value
interest rate risk. The Group's bank debt borrowings are
denominated in Euros, and incur interest at variable rates subject
to floating EURIBOR with a zero rate floor.
At 31 March 2024, if interest
rates on bank borrowings had been 50 basis points higher or lower
with all other variables held constant, the calculated pre-tax
profit for the year would change by £1.5m (FY23: £1.5m).
Capital risk
The Group manages its capital to
ensure that entities in the Group will be able to continue as going
concerns while maximising the return to stakeholders through the
optimisation of the debt and equity balances. The Group's overall
strategy remains consistent with that from the past few
years.
The capital structure of the Group
consists of net debt disclosed in note 17 and equity attributable
to equity holders of the parent, comprising issued ordinary share
capital, reserves and retained earnings as disclosed in notes 23
and 24 and the Consolidated Statement of Changes in Equity. The
Group's Board of Directors reviews the capital structure on an
annual basis. The Group is not subject to any externally imposed
capital requirement.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
21.
Financial instruments (continued)
Foreign currency risk
The Group has analysed the impact
of a movement in foreign exchange rate of the major non-GBP
currencies on its EBITDA1 (all other foreign exchange
rates remaining unchanged) as follows:
10% appreciation of currency
|
|
FY24
£m
|
FY23
£m
|
US Dollar
|
|
6.1
|
2.8
|
Euro
|
|
18.5
|
19.9
|
Yen
|
|
4.3
|
4.1
|
1.
Alternative Performance Measure 'APM' as defined
in the Glossary on pages 66 and 67.
Note the US Dollar movement is
lower as the Group earns US Dollars from its US business and
purchases substantially all inventory in US Dollar, which provides
a degree of natural offsetting. In addition to the above, a
10% appreciation in Euro against GBP would increase annualised bank
loan interest by £2.2m (FY23: £0.9m) under the terms of the new
loan agreement.
22.
Deferred taxation
The analysis of deferred tax
assets and liabilities is as follows:
|
|
FY24
£m
|
FY23
£m
|
Non-current
|
|
|
|
Assets
|
|
11.2
|
11.8
|
Liabilities
|
|
(2.8)
|
(1.8)
|
|
|
8.4
|
10.0
|
The gross movement on the deferred
income tax is as follows:
|
|
FY24
£m
|
FY23
£m
|
Credit for the year in the
Statement of Comprehensive Income
|
|
1.6
|
0.4
|
The deferred tax asset provided in
the financial statements is supported by budgets and trading
forecasts and relates to the following temporary
differences:
· accelerated capital allowances are the differences between
the net book value of fixed assets and their tax base;
· other temporary differences are the other differences between
the carrying amount of an asset/liability and its tax base that
eventually will reverse;
· unrealised profits in intra-group transactions and
expenses;
· trade losses expected to be utilised in future years;
and
· deferred tax on share-based payments in relation to the
expected future tax deduction on the exercise of granted share
options spread over the vesting period.
The movement in deferred income
tax assets and liabilities during the year is as
follows:
|
Accelerated capital
allowances
|
Unrealised intra-group
profits
|
Other temporary
differences
|
Tax losses
|
Share-based
payments
|
Total
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 April 2022
|
(2.0)
|
3.2
|
7.1
|
0.6
|
0.7
|
9.6
|
Statement of Profit or Loss
(charge)/credit
|
(0.4)
|
0.8
|
0.1
|
0.1
|
(0.4)
|
0.2
|
Credited directly to
equity
|
-
|
-
|
0.2
|
-
|
-
|
0.2
|
Foreign exchange
|
-
|
-
|
-
|
-
|
-
|
-
|
At 31 March 2023
|
(2.4)
|
4.0
|
7.4
|
0.7
|
0.3
|
10.0
|
Statement of Profit or Loss
(charge)/credit
|
(0.8)
|
(0.4)
|
0.5
|
(0.1)
|
-
|
(0.8)
|
(Charged)/credited directly to
equity
|
-
|
-
|
(0.7)
|
-
|
0.5
|
(0.2)
|
Foreign exchange
|
-
|
(0.3)
|
(0.3)
|
-
|
-
|
(0.6)
|
At 31 March 2024
|
(3.2)
|
3.3
|
6.9
|
0.6
|
0.8
|
8.4
|
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
22.
Deferred taxation (continued)
Deferred taxation not provided in
the financial statements:
|
|
FY24
£m
|
FY23
£m
|
Tax losses1
|
|
9.1
|
9.1
|
1. This is the tax effected amount
of losses that have not been provided for in the financial
statements, calculated using the rate at which the losses would be
expected to be used. There is £36.3m (FY23: £36.6m) of gross tax
losses that have not been provided for because they are either
capital losses (which can only be used against future capital gains
which we are not forecasting) or they are non-trade loan
relationship losses which can only be used in the same company (and
are in companies we don't expect to have any loan relationship
profits).
The deferred tax assets and
liabilities have been measured at the corporation tax rate expected
to apply to the reversal of the timing difference, based on rates
that are enacted or substantively enacted by the end of each
reporting period. There are no material temporary differences
associated with investments in subsidiaries, branches and
associates and interests in joint arrangements, for which deferred
tax liabilities have not been recognised.
23.
Ordinary share capital
|
FY24
|
FY24
|
FY23
|
FY23
|
|
No.
|
£m
|
No.
|
£m
|
Authorised, called up and fully paid
|
|
|
|
|
Ordinary shares of £0.01
each
|
961,878,608
|
9.6
|
1,000,793,898
|
10.0
|
The movements in the ordinary
share capital during the year ended 31 March 2024 and 31 March 2023
were as follows:
|
FY24
|
FY24
|
FY23
|
FY23
|
|
No.
|
£m
|
No.
|
£m
|
At 1 April
|
1,000,793,898
|
10.0
|
1,000,222,700
|
10.0
|
Shares issued
|
953,845
|
-
|
571,198
|
-
|
Repurchase and cancellation of
ordinary share capital
|
(39,869,135)
|
(0.4)
|
-
|
-
|
At 31 March
|
961,878,608
|
9.6
|
1,000,793,898
|
10.0
|
The cost of shares purchased by
the SIP Trusts is offset against the profit and loss account, as
the amounts paid reduce the profits available for distribution by
the Company.
During the year ended 31 March
2024 Dr. Martens plc repurchased 39.9 million ordinary shares for a
total consideration of £50.5m, including transaction costs of
£0.5m, as part of a share repurchase programme announced on 1 July
2023. All shares purchased were for cancellation. The repurchased
shares represented 4.1% of ordinary share capital. The number of
shares in issue is reduced where shares are repurchased.
24.
Treasury shares
The movements in treasury shares
held by the Company during the year ended 31 March 2024 were as
follows:
|
FY24
|
FY24
|
FY23
|
FY23
|
|
No.
|
£m
|
No.
|
£m
|
At 1 April
|
110,153
|
-
|
16,925
|
-
|
Repurchase of shares for
cancellation
|
39,869,135
|
50.0
|
-
|
-
|
Cancellation of shares
|
(39,869,135)
|
(50.0)
|
-
|
-
|
Shares issued for share schemes
held in trust
|
284,770
|
-
|
93,228
|
-
|
At 31 March
|
394,923
|
-
|
110,153
|
-
|
On 14
July 2023 Dr. Martens plc announced a share buyback programme.
Treasury shares existed during the year as a result of the timing
delay between the repurchase of shares under this programme and the
subsequent cancellation of these shares. The programme concluded
on 19 December 2023.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
25.
Reserves
The following describes the nature
and purpose of each reserve within equity:
Reserve
|
Description and purpose
|
Ordinary share capital
|
Nominal value of subscribed
shares.
|
Hedging reserve
|
Represents the movements in fair
value on designated hedging instruments.
|
Treasury shares
|
This reserve relates to shares
held by SIP Trusts as 'treasury shares'. The shares held by the SIP
Trusts were issued directly to the Trusts in order to satisfy
outstanding employee share options and potential awards under the
employee share incentive schemes. The Company issued 284,770 shares
directly to the Trusts during the year and held 394,923 as at 31
March 2024 (31 March 2023: 110,153). This reserve was previously
referred to as 'capital reserve - own shares'. This reserve also
included treasury shares repurchased but not yet cancelled,
pursuant to the share buyback programme, which concluded during
FY24.
|
Capital redemption
reserve
|
A non-distributable reserve into
which amounts are transferred following the redemption or purchase
of own shares. The reserve was created in order to ensure
sufficient distributable reserves were available for the purpose of
redeeming preference shares in the prior years.
|
Merger reserve
|
The difference between the nominal
value of shares acquired by Dr. Martens plc (the Parent Company) in
the share for share exchange with Doc Topco Limited and the nominal
value of shares issued to acquire them on 11 December
2020.
|
Foreign
currency translation reserve
|
Includes translation gains or
losses on translation of foreign subsidiaries' financial statements
from the functional currencies to the presentational
currency.
|
Retained earnings
|
Retained earnings represent the
profits of the Group made in current and preceding years, net of
distributions and equity-settled share-based awards. Included in
retained earnings are distributable reserves.
|
26.
Share-based payments and share schemes
Executive Share Plan - The
Dr. Martens Long Term Incentive Plan (LTIP)
Awards of shares to Executive
Directors and other senior executives are made under the Long Term
Incentive Plan (LTIP): the Performance Share Plan (PSP) for the
Executive Directors and Global Leadership Team (GLT) and the
Restricted Share Unit Plan (RSU) for GLT direct reports and other
employees. The LTIP is a discretionary share plan under which
awards are approved and granted at the discretion of the
Remuneration Committee.
Long Term Incentive Plan - Performance Share Plan
(PSP)
Awards of conditional shares are
granted to the Executive Directors and GLT. These awards are
currently capable of vesting subject to the achievement of set
performance conditions over a three-year performance period and
continued service. There are two performance conditions attached to
the awards which are Total Shareholder Return (TSR), which is a
market-based performance condition, and EPS growth, which is a
non-market-based performance condition. The fair value of the TSR
element of the performance conditions is calculated and fixed at
the date of grant using a Stochastic options pricing model. The
fair value of the EPS element of the performance conditions is
reviewed at each Balance Sheet date and adjusted through the number
of awards expected to vest. The fair value of the PSP is the face
value of the awards at the date of grant (calculated using the
closing share price on the day preceding grant). The awards will
vest to participants at the end of the vesting period subject to
the performance conditions of the award being met. The
entitlement of any of the awards for leavers are subject to good
and bad leaver provisions as set out in the Plan Rules. There are
no cash settlement alternatives and the Group accounts for the PSP
as an equity-settled plan. Full details on the performance
conditions for all the LTIP awards can be found in the Remuneration
Report on pages 119 to 133 of the Annual Report.
Long Term Incentive Plan - Restricted Share Unit Plan
(RSU)
Conditional awards of shares under
the RSU are granted to GLT direct reports and other employees of
the Group. There are no performance conditions attached to the
awards, the awards will only vest should the participants remain
employed on the vesting date. If participants leave the Group their
awards would usually lapse in full, however there are good and bad
leaver provisions set out in the Plan Rules. The fair value of
Restricted Share Unit awards is the face value of the awards at the
date of grant (calculated using the closing share price on the day
preceding grant). The Group accounts for the Restricted Share Unit
awards as an equity-settled plan.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
26.
Share-based payments and share schemes
(continued)
Movements during the
year
The following table illustrates
the number and weighted average exercise prices (WAEP) of, and
movements in, shares subject to LTIP schemes during the
year:
|
FY24
|
|
FY23
|
|
LTIP
|
|
LTIP
|
|
No.
|
WAEP
|
|
No.
|
WAEP
|
Outstanding at the beginning of
the year
|
6,788,582
|
-
|
|
3,187,899
|
-
|
Granted
|
10,597,184
|
£0.00
|
|
4,593,183
|
£0.00
|
Vested
|
(653,105)
|
-
|
|
(402,860)
|
-
|
Forfeited
|
(1,408,092)
|
-
|
|
(589,640)
|
-
|
Outstanding at the end of the
year
|
15,324,569
|
£0.00
|
|
6,788,582
|
£0.00
|
|
|
|
|
|
|
Weighted average contractual life
remaining (years)
|
1.6
|
£0.00
|
|
1.8
|
£0.00
|
Fair value measurement
The following table lists the
inputs to the models used for the plans granted during the year
ended 31 March 2024:
|
|
|
|
FY24
|
|
|
|
|
LTIP
|
|
|
|
|
PSP
|
RSU
|
RSU
|
|
Date of grant
|
|
|
|
30/06/2023
|
30/06/2023
|
14/12/2023
|
|
Share price (pence)
|
|
|
|
119.3
|
119.3
|
88.5
|
|
Fair value at grant date
(pence)
|
|
|
|
96.7
|
119.3
|
88.5
|
|
Exercise price (pence)
|
|
|
|
0
|
0
|
0
|
|
Dividend yield (%)
|
|
|
|
Nil
|
Nil
|
Nil
|
|
Expected volatility (%)
|
|
|
|
55.05%
|
Nil
|
Nil
|
|
Risk-free interest rate
(%)
|
|
|
|
5.13%
|
Nil
|
Nil
|
|
Expected life (years)
|
|
|
|
3 years
|
3 years
|
3 years
|
|
Model used
|
|
|
|
Monte
Carlo
|
n/a
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY23
|
|
|
|
|
LTIP
|
|
|
|
|
PSP
|
RSU
|
RSU
|
|
Date of grant
|
|
|
|
15/06/2022
|
15/06/2022
|
08/12/2022
|
|
Share price (pence)
|
|
|
|
238
|
238
|
193
|
|
Fair value at grant date
(pence)
|
|
|
|
205
|
238
|
193
|
|
Exercise price (pence)
|
|
|
|
0
|
0
|
0
|
|
Dividend yield (%)
|
|
|
|
Nil
|
Nil
|
Nil
|
|
Expected volatility (%)
|
|
|
|
50.71%
|
Nil
|
Nil
|
|
Risk-free interest rate
(%)
|
|
|
|
2.23%
|
Nil
|
Nil
|
|
Expected life (years)
|
|
|
|
3
years
|
3
years
|
2.7
years
|
|
Model used
|
|
|
|
Monte
Carlo
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
The following schemes granted in
FY22 were also still in existence during FY23 and FY24:
|
|
|
FY22
|
|
|
|
LTIP
|
|
|
|
|
PSP
|
RSU
|
RSU
|
|
Date of grant
|
|
|
|
15/12/2021
|
06/07/2021
|
15/12/2021
|
|
Share price (pence)
|
|
|
|
388
|
453
|
388
|
|
Fair value at grant date
(pence)
|
|
|
|
301
|
453
|
388
|
|
Exercise price (pence)
|
|
|
|
0
|
0
|
0
|
|
Dividend yield (%)
|
|
|
|
Nil
|
Nil
|
Nil
|
|
Expected volatility (%)
|
|
|
|
54.57%
|
Nil
|
Nil
|
|
Risk-free interest rate
(%)
|
|
|
|
0.42%
|
Nil
|
Nil
|
|
Expected life (years)
|
|
|
|
2.3
years
|
2.7
years
|
2.3
years
|
|
Model used
|
|
|
|
Monte
Carlo
|
N/A
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
Volatility
For determining expected
volatility, IFRS 2 requires the fair value to take into account
historical volatility over the expected term. Where Dr. Martens plc
has been listed for less than the expected life of the plans it
does not have sufficient information on historical volatility, and
it computes volatility for the longest period for which trading
activity is available. It also considered the historical volatility
of similar entities in the same industry for the equivalent period
of their listed share price history.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
26.
Share-based
payments (continued)
All employee Plan - Share
Incentive Plan (SIP) and International Share Incentive
Plan
The Group has two SIP Trusts, Dr.
Martens plc UK Share Incentive Plan Trust ('SIP-UK') and Dr Martens
plc International Share Incentive Plan Trust ('SIP-International'),
for the purpose of facilitating the holding of shares in Dr.
Martens plc for the benefit of employees of the Group. The assets
of the employee share trusts are held by the separate trusts, of
which the Directors consider that Dr. Martens plc has control for
accounting purposes.
Share Incentive Plan (SIP): Buy As You Earn
In October 2021 employees were
granted Free Shares under the Share Incentive Plan (SIP), these
shares remain under restriction and will become available to
employees from October 2024 when the forfeiture period lifts. In
September 2022 the Company launched the purchase and matching
element of the SIP known as Buy As You Earn (BAYE). Employees can
elect to make a monthly contribution from their gross pay to
purchase shares in Dr. Martens plc ('partnership shares'). For each
partnership share acquired, the Company will award a 'matching'
share. Matching shares are subject to a three-year forfeiture
period, and employees will receive the matching shares if they
remain employed at the end of this period of service.
The matching shares fall within
the scope of IFRS 2 and are classed as equity-settled share-based
payments with a three-year forfeiture period, due to the condition
of continued service for three years from the allocation date. A
new invitation to join the plan will be rolled out each year
effective 1 September. On 11 November 2022, the first matching
shares were allocated to employees who had opted into the plan and
purchased partnership shares. These awards are subject to a
three-year forfeiture period after the date of purchase of the
corresponding partnership shares. There are no cash settlement
alternatives and the Group accounts for the SIP as an
equity-settled plan.
Global Share Incentive Plan (SIP): International Buy As You
Earn
In October 2021 employees were
granted Free Shares under the International Share Incentive Plan
(SIP); these shares vested in April 2022 where sufficient shares
were sold to cover their tax/social security liabilities where
applicable and are now beneficially owned by the employees. In
March 2023 the Company launched the purchase and matching element
of the International SIP known as International Buy As You Earn
(BAYE). Employees can elect to make a monthly contribution from
their net pay to purchase shares in Dr. Martens plc ('partnership
shares'). Partnership shares are purchased quarterly with the first
purchase in July 2023. For each partnership share acquired, the
Company will award a 'matching' share annually. Matching shares are
subject to a three-year forfeiture period. The matching shares fall
within the scope of IFRS 2 and are classed as equity-settled
share-based payments with a three year forfeiture period, and
employees will receive the matching shares if they remain employed
at the end of this period of service. A new invitation to join the
plan will be rolled out each year effective 1 September.
The following table illustrates
the number and weighted average exercise prices (WAEP) of, and
movements in, SIP shares during the year:
|
|
FY24
|
FY23
|
|
|
SIP
|
SIP
|
|
|
No.
|
No.
|
Outstanding at the beginning of
the year
|
|
92,318
|
-
|
Granted
|
|
335,940
|
93,591
|
Vested
|
|
-
|
-
|
Forfeited
|
|
(42,735)
|
(1,273)
|
Outstanding at the end of the
year
|
|
385,523
|
92,318
|
|
|
|
|
Weighted average contractual life
remaining (years)
|
|
2 years
|
3
years
|
Fair value measurement
The following table lists the
inputs to the model used for the SIP plans for the years ended 31
March 2024 and 2023:
|
|
FY24
|
FY23
|
|
|
SIP
|
Date of grant
|
|
22/09/2023
|
15/09/2022
|
Share price (pence)
|
|
82-165
|
128-290
|
Fair value at grant date
(pence)
|
|
82-165
|
128-290
|
Exercise price (pence)
|
|
0
|
0
|
Dividend yield (%)
|
|
Nil
|
Nil
|
Expected volatility (%)
|
|
0
|
0
|
Risk-free interest rate
|
|
0
|
0
|
Expected life (years)
|
|
3 years
|
3
years
|
Model used
|
|
N/A
|
N/A
|
|
|
|
|
|
|
Share schemes-- additional
information
Employer payroll taxes are being
accrued, where applicable, at local rate, which management expects
to be the prevailing rate when the awards are exercised, based on
the share price at the reporting date. The total employer payroll
taxes for the year relating to all the awards was £0.2m (FY23:
£nil).
Included in staff costs and
accruals is £0.1m (FY23: £0.4m) in relation to expenses arising
from cash-settled share-based payments.
Included in staff costs is £3.9m
(FY23: £0.5m) in relation to expenses arising from equity-settled
share-based payments. Within this amount is £0.1m (FY23:
£nil) in relation to the SIP.
Global Bonus Scheme Share
Plan
The Remuneration Committee of the
Group has determined that a proportion of the annual Executive
Bonus Scheme will be utilised (on a net basis) to purchase Parent
Company shares. There were no cancellations or modifications during
the year.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
27.
Financial commitments
The Group is party to a number of
warehousing agreements whereby it is committed to certain costs
which are not required to be reflected on the Balance Sheet. These
costs pertain to storage costs for some warehouses that do not meet
the recognition requirements of IFRS 16, and the fixed-cost
elements of the additional services that the Group's warehouse
operators provide.
The below table discloses the
contractual cash flows that the Group is committed to under these
arrangements, excluding the effects of future rate increases
allowable within the agreements.
|
|
FY24
£m
|
FY23
£m
|
Within 1 year
|
|
7.4
|
8.2
|
1 to 5 years
|
|
9.0
|
16.7
|
Over 5 years
|
|
-
|
-
|
|
|
16.4
|
24.9
|
Short-term leases for retail
stores are not required to be included above as the portfolio of
short-term leases to which the Group is committed to at the end of
the reporting period is not dissimilar to the portfolio of
short-term leases to which the short-term lease expense disclosed
in note 28 relates.
Guarantees exist in the form of
rent guarantees to various landlords of £3.2m (FY23: £3.5m) and
other guarantees of £0.2m (FY23: £0.2m). These guarantees which
aggregate to £3.4m (FY23: £3.7m) are guaranteed under the revolving
credit facility.
Capital expenditure contracted for
at the end of the reporting period but not recognised as
liabilities is as follows:
|
|
FY24
£m
|
FY23
£m
|
Property, plant and
equipment
|
|
-
|
1.7
|
The Group has additional
commitments relating to leases where the Group has entered into an
obligation but does not yet have control of the underlying asset.
The future lease payments to which the Group is committed, over the
expected lease term, but are not recorded on the Group's Balance
Sheet are as follows:
|
|
FY24
£m
|
FY23
£m
|
Within 1 year
|
|
0.3
|
1.1
|
1 to 5 years
|
|
0.9
|
6.6
|
Over 5 years
|
|
0.1
|
8.5
|
|
|
1.3
|
16.2
|
28.
Leases
Set out below are the carrying
amounts of lease liabilities (included under interest-bearing loans
and borrowings) and the movements during the year:
|
|
FY24
£m
|
FY23
£m
|
At 1 April
|
|
152.4
|
112.9
|
Additions1
|
|
72.5
|
60.6
|
Reassessments
|
|
(4.7)
|
5.5
|
Modifications
|
|
10.1
|
(0.8)
|
Interest expense (note
7)
|
|
8.6
|
4.8
|
Lease capital and interest
repayments
|
|
(52.2)
|
(33.9)
|
Foreign exchange
|
|
(4.4)
|
3.3
|
At 31 March
|
|
182.3
|
152.4
|
Current (note 17)
|
|
47.0
|
28.1
|
Non-current (note 17)
|
|
135.3
|
124.3
|
1. Additions comprises RoU
additions less working capital of £4.5m (FY23:
£5.9m).
The
following amounts were recognised in the Statement of Profit or
Loss:
|
|
FY24
£m
|
FY23
£m
|
Depreciation expense of
right-of-use assets
|
|
51.3
|
32.2
|
Gain on remeasurement of
leases
|
|
(1.1)
|
-
|
Interest expense on lease
liabilities (note 7)
|
|
8.6
|
4.8
|
Expenses relating to short-term
leases
|
|
0.3
|
1.3
|
Variable lease payments
|
|
3.5
|
2.8
|
Total operating expenses
recognised in profit
|
|
3.8
|
4.1
|
Total amount recognised in profit
|
|
62.6
|
41.1
|
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
28.
Leases (continued)
Variable lease payments on
sales
Some leases of retail stores
contain variable lease payments that are based on sales that the
Group makes at the store. These payment terms are common in
retail stores in some countries where the Group operates. Fixed and
variable payments for the year ended 31 March 2024 were as
follows:
|
Fixed
payments
£m
|
Variable
payments
£m
|
Total
payments
£m
|
Estimated annual impact on rent of a 1% increase in
sales
£m
|
FY24: Leases with lease payments
based on sales
|
13.5
|
3.5
|
17.0
|
0.1
|
FY23: Leases with lease payments
based on sales
|
10.2
|
2.8
|
13.0
|
0.1
|
Turnover related rent is where the
contract states the lease rent is the higher of the fixed base rent
or percentage of turnover of the store. Unless specified otherwise
in the lease, turnover rent is defined as net turnover (i.e.
excluding returns), not including click and collect. To verify the
correct rent, the landlord often requests 'turnover certificates'
on a regular basis, e.g. monthly/quarterly/annually. The rent is
invoiced in arrears based on this calculation and accrued monthly.
It is paid as invoiced depending on the lease terms. The fixed base
element is capitalised as above and the variable element (based on
turnover) is expensed to the Consolidated Statement of Profit or
Loss.
Extension
options
Some leases contain extension
options exercisable by the Group up to one year before the end of
the non-cancellable contract period. Where practicable, the Group
seeks to include extension options in new leases to provide
operational flexibility. The extension options held are exercisable
only by the Group and not by the lessors. The Group will reassess
and remeasure when there is a significant event or change in
circumstances. For example, lease renewals or business decisions to
exercise lease breaks. These are reviewed and embedded to the model
by the Property Accountant as they occur.
|
Lease liabilities recognised
(discounted)
£m
|
Potential future lease
payments not included in lease liabilities
(undiscounted)
£m
|
FY24: Leases with lease extension
options
|
43.3
|
84.0
|
FY23: Leases with lease extension
options
|
35.3
|
56.6
|
29.
Pensions
Defined contribution scheme
The Group operates a defined
contribution pension scheme for its employees. The Group's expenses
in relation to this scheme were £5.4m for the year ended 31 March
2024 (FY23: £4.7m) and at 31 March 2024 £1.0m (FY23: £0.8m)
remained payable to the pension fund.
Defined benefit scheme
Dr Martens Airwair Group Limited
and Airwair International Limited (subsidiaries of the Group)
operate a pension arrangement called the Dr. Martens Airwair Group
Pension Plan (the Plan). The Plan has a defined benefit
section that provides benefits based on final salary and length of
service on retirement, leaving service or death. The defined
benefit section closed to new members on 6 April 2002 and closed to
future accrual with effect from 31 January 2006. The Plan
also has a defined contribution section that provides money
purchase benefits to some current and former
employees.
The Plan is managed by a board of
Trustees appointed in part by Airwair International Limited and in
part from elections by members of the Plan. The Trustees have
responsibility for obtaining valuations of the fund, administering
benefit payments and investing the Plan's assets. The
Trustees delegate some of these functions to their professional
advisers where appropriate.
The defined benefit section of the
Plan is subject to the Statutory Funding Objective under the
Pensions Act 2004. A valuation of the Plan is carried out at least
once every three years to determine whether the Statutory Funding
Objective is met. The last valuation was carried out at 30
June 2022 which confirmed that the Plan had sufficient assets to
meet the Statutory Funding Objective. The next valuation is due at
30 June 2025. The Statutory Funding Objective does not currently
impact on the recognition of the Plan in these financial
statements.
During the year, no discretionary
benefits were awarded. There were no Plan amendments,
settlements or curtailments during the year.
The weighted average duration of
the defined benefit obligation is approximately 12 years (FY23: 13
years). Around 50% of the undiscounted benefits are due to be
paid beyond 17 years' time, with the projected actuarial cash flows
declining to zero in about 70 years.
Key risks
The defined benefit section of the
Plan exposes Airwair International
Limited to a number of risks:
· Investment risk. The Plan holds investments in asset classes,
such as equities, which have volatile market values and while these
assets are expected to provide real returns over the long term, the
short-term volatility can cause additional funding to be required
if a deficit emerges.
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
29.
Pensions (continued)
Key risks (continued)
· Interest rate risk. The value of the Plan's liabilities is
assessed using market yields on high quality corporate bonds to
discount the liabilities. As the Plan holds assets such as
equities, the value of the assets and liabilities may not move in
the same way. The Plan holds derivatives to manage a proportion of
the interest rate risk.
· Inflation risk. A significant proportion of the benefits
under the Plan are linked to inflation. Although the Plan's assets
are expected to provide a good hedge against inflation over the
long term, movements in inflation expectations over the short term
could lead to a deficit emerging. The Plan holds some derivatives
to hedge a proportion of the potential changes in the value of the
liabilities due to changes in market inflation
expectations.
· Mortality risk. In the event that members live longer than
assumed, a deficit could emerge in the Plan.
Although the Lloyds Banking Group
Pensions Trustees Limited v. Lloyds Bank PLC (and others) court
judgment on 26 October 2018 (and the subsequent court judgment on
20 November 2020) provided some clarity in respect of GMP
equalisation and the obligations that this places on schemes, the
actual impact of equalising the Plan's GMPs remains uncertain. An
approximate allowance equivalent to 1.1% (FY23: 0.8%) of the value
of the liabilities has been made in the disclosures for the impact
of GMP equalisation. There were no other plan amendments,
curtailments or settlements during the year.
A judgment in the High Court case
of Virgin Media vs NTL Trustees was handed down on 16 June 2023.
The judge ruled that, where benefit changes were made without a
valid 'section 37' certificate from the Scheme Actuary, those
changes could be considered void. The judgment could have material
consequences for some defined benefit schemes, such as the Plan,
which previously contracted-out of the state pension system. The
Group understands that the judgment is due to be appealed and, as
such, there is considerable uncertainty as to whether the judgment
will stand and, if it does, the impact on the Plan, if any. As a
result of this uncertainty, these disclosures have been calculated
assuming that this ruling will not affect the Plan's
benefits.
Effect of the Plan on the Company's future cash
flows
Airwair International Limited is
required to agree a Schedule of Contributions with the Trustees of
the Plan following a valuation, which must be carried out at least
once every three years. Following the valuation of the Plan
at 30 June 2022, a Schedule of Contributions was agreed under which
Airwair International Limited was not required to make any
contributions to the defined benefit section of the Plan (other
than payments in respect of administrative expenses). Accordingly,
Airwair International Limited does not expect to contribute to the
defined benefit section of the Plan, although it will continue to
contribute to the defined contribution section in line with the
Schedule of Contributions. The next valuation of the Plan is
due at 30 June 2025. If this reveals a deficit then Airwair
International Limited may be required to pay contributions to the
Plan to repair the deficit over time.
The amounts recognised in the
Balance Sheet (under IAS 19 Employee Benefits) are determined as
follows:
|
|
FY24
£m
|
FY23
£m
|
Fair value of plan assets -
defined benefit section
|
|
46.7
|
49.5
|
Present value of funded
obligations - defined benefit section
|
|
(37.6)
|
(38.4)
|
Surplus of funded plans
|
|
9.1
|
11.1
|
Impact of asset ceiling
|
|
(9.1)
|
(11.1)
|
Net pension asset
|
|
-
|
-
|
Although
the Plan has a surplus, this is not recognised on the grounds that
Airwair International Limited is unlikely to derive any future
economic benefits from the surplus. As
such, an asset ceiling has been applied to the Balance Sheet, and
the net surplus of £9.1m (FY23: £11.1m) has not been recognised on
the Balance Sheet. The net surplus has been capped to £nil (FY23:
£nil).
A reconciliation of the net
defined benefit asset over the year is given below:
|
|
FY24
£m
|
FY23
£m
|
Net defined benefit asset at beginning of
year
|
|
-
|
-
|
Total defined benefit charge in
the Statement of Profit or Loss
|
|
-
|
-
|
Remeasurement losses in the
Statement of Comprehensive Income
|
|
-
|
-
|
Employer's
contributions
|
|
-
|
-
|
Net defined benefit asset at end of the
year
|
|
-
|
-
|
The amount charged to the
Statement of Profit or Loss and Statement of Comprehensive Income
in respect of the defined benefit section of the Plan was
£nil (FY23: £nil). Costs
in respect of the defined contribution section of the Plan, and
other defined contribution arrangements operated by Airwair
International Limited, are allowed for separately.
The remeasurements in respect of
the defined benefit section of the Plan, to be shown in the
Statement of Comprehensive Income, are shown below:
|
|
FY24
£m
|
FY23
£m
|
Losses on defined benefit assets
in excess of interest
|
|
3.0
|
18.3
|
Experience loss on defined benefit
obligation
|
|
0.3
|
-
|
Gains from changes to demographic
assumptions
|
|
(0.4)
|
(0.4)
|
Gains from changes to financial
assumptions
|
|
(0.4)
|
(15.4)
|
Change in effect of asset
ceiling
|
|
(2.5)
|
(2.5)
|
Total remeasurements to be shown in other comprehensive
income
|
|
-
|
-
|
Notes to the Consolidated Financial Statements
(continued)
For the year ended 31 March 2024
29.
Pensions (continued)
The change in defined benefit
scheme assets over the year was:
|
|
FY24
£m
|
FY23
£m
|
At 1 April
|
|
49.5
|
68.6
|
Interest on defined benefit
assets
|
|
2.3
|
1.7
|
Movement on defined benefit
section assets less interest
|
|
(3.0)
|
(18.3)
|
Benefits paid from the defined
benefit section
|
|
(2.1)
|
(2.5)
|
At 31 March
|
|
46.7
|
49.5
|
|
|
|
|
The change in the defined benefit
scheme funded obligations over the year was:
|
|
FY24
£m
|
FY23
£m
|
At 1 April
|
|
38.4
|
55.3
|
Past service cost
|
|
-
|
-
|
Interest cost on defined benefit
obligation
|
|
1.8
|
1.4
|
Experience loss on defined benefit
obligation
|
|
0.3
|
-
|
Changes to demographic
assumptions
|
|
(0.4)
|
(0.4)
|
Changes to financial
assumptions
|
|
(0.4)
|
(15.4)
|
Benefits paid from the defined
benefit section
|
|
(2.1)
|
(2.5)
|
At 31 March
|
|
37.6
|
38.4
|
|
|
|
|
The change in the effect of the
asset ceiling over the year was as follows:
|
|
FY24
£m
|
FY23
£m
|
At 1 April
|
|
11.1
|
13.3
|
Net interest charge on asset
ceiling
|
|
0.5
|
0.3
|
Changes in the effect of the asset
ceiling excluding interest
|
|
(2.5)
|
(2.5)
|
At 31 March
|
|
9.1
|
11.1
|
A breakdown of the assets is set
out below, split between those assets that have a quoted market
value in an active market and those that do not. The assets do not
include any investment in shares of Airwair International Limited,
nor any property owned or occupied by the Group.
|
|
FY24
£m
|
FY23
£m
|
Assets with a quoted market value in an active
market:
|
|
|
|
Cash and other
|
|
|
|
Domestic
|
|
0.1
|
0.2
|
|
|
0.1
|
0.2
|
Assets without a quoted market value in an active
market:
|
|
|
|
Equities and property
|
|
|
|
Domestic
|
|
3.0
|
0.2
|
Foreign
|
|
4.3
|
4.5
|
|
|
7.3
|
4.7
|
Fixed interest bonds
|
|
|
|
Unspecified
|
|
6.3
|
9.4
|
|
|
6.3
|
9.4
|
Index linked gilts
|
|
|
|
Domestic
|
|
30.0
|
30.1
|
|
|
30.0
|
30.1
|
Alternatives
|
|
|
|
Unspecified
|
|
1.8
|
3.9
|
|
|
1.8
|
3.9
|
Property
|
|
|
|
Unspecified
|
|
0.4
|
1.0
|
|
|
0.4
|
1.0
|
Insured annuities
|
|
|
|
Domestic
|
|
0.9
|
0.9
|
|
|
0.9
|
0.9
|
Cash and other
|
|
|
|
Domestic
|
|
1.5
|
1.0
|
Foreign
|
|
-
|
-
|
Unspecified
|
|
(1.6)
|
(1.7)
|
|
|
(0.1)
|
(0.7)
|
|
|
|
|
Fair value of plan assets
|
|
46.7
|
49.5
|
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2024
29.
Pensions (continued)
A full actuarial valuation was
carried out at 30 June 2022. The results of that valuation
were updated to 31 March 2024 by a qualified independent actuary.
The principal assumptions selected by Airwair International Limited
and used by the actuary to calculate the Plan's defined benefit
obligation were:
|
|
FY24
£m
|
FY23
£m
|
Discount rate
|
|
4.9%
|
4.8%
|
Inflation assumption
(RPI)
|
|
3.2%
|
3.3%
|
Inflation assumption
(CPI)
|
|
2.5%
|
2.6%
|
LPI pension increases subject to
5% cap
|
|
3.1%
|
3.2%
|
LPI pension increases subject to
3% cap
|
|
2.5%
|
2.5%
|
Revaluation in
deferment
|
|
2.5%
|
2.6%
|
Post retirement mortality
assumption
|
|
105% (males) and 111%
(females) of S3PA tables, with allowance for future improvements in
line with the CMI_2022 core projection model using 0% 2020 and 2021
weight parameters, a 25% 2022 weight parameter, a long-term rate of
improvement of 1.0% p.a. and an initial addition of
0.2%
|
105%
(males) and 111% (females) of S3PA tables, with allowance for
future improvements in line with the CMI_2021 core projection model
using 7.5% 2020 and 2021 weight parameters, a long-term rate of
improvement of 1.0% p.a. and an initial addition of 0.2%
|
Tax free cash
|
|
Members are assumed to take
50% of the maximum tax free cash possible
|
Members
are assumed to take 50% of the maximum tax free cash
possible
|
Proportion married at retirement
or earlier death
|
|
80% of male members and 65%
of female members are assumed to be married at retirement or
earlier death
|
80% of
male members and 65% of female members are assumed to be married at
retirement or earlier death
|
Age difference
|
|
Males three years older than
dependant, females one year younger than
dependant
|
Males
three years older than dependant, females one year younger than
dependant
|
Assumed life expectancies on
retirement at age 65 are:
|
|
|
|
Retiring today:
|
Male
|
21.1
|
21.3
|
Female
|
23.2
|
23.4
|
Retiring in 20 years'
time:
|
Male
|
22.1
|
22.3
|
Female
|
24.3
|
24.5
|
|
|
|
|
|
|
|
The key sensitivities of the
defined benefit obligation to the actuarial assumptions are shown
below:
|
|
FY24
£m
|
FY23
£m
|
Discount rate
|
|
|
|
Plus 0.5%
|
|
(2.7)
|
(2.2)
|
Minus 0.5%
|
|
3.0
|
2.4
|
Plus 1.0%
|
|
(4.6)
|
(4.4)
|
Minus 1.0%
|
|
5.7
|
5.5
|
Rate of inflation
|
|
|
|
Plus 0.5%
|
|
2.0
|
0.9
|
Minus 0.5%
|
|
(1.8)
|
(0.7)
|
Life expectancy
|
|
|
|
Plus 1.0 year
|
|
1.6
|
1.4
|
Minus 1.0 year
|
|
(1.6)
|
(1.4)
|
The sensitivity illustrations set
out above are approximate. They show the likely effect of an
assumption being adjusted while all other assumptions remain the
same. Only the impact on the liability value (i.e. the defined
benefit obligation) is considered - in particular:
· No
allowance is made for any changes to the value of the Plan's
invested assets in scenarios where interest rates or market
inflation expectations change; and
· No
allowance is made for changes in the value of the annuity policies
held by the Plan, which is calculated using the same actuarial
assumptions as for the Plan's defined benefit
obligation.
Such changes to the asset values
would be likely to partially offset the changes in the defined
benefit obligation.
The net Balance Sheet and
Statement of Profit or Loss are not sensitive to the actuarial
assumptions used at the current time, due to the effect of the
asset ceiling.
Notes to the Consolidated Financial
Statements
For the year ended 31 March 2024
30.
Related party transactions
Transactions with related parties
Transactions between the Company
and its wholly owned subsidiaries, which are related parties of the
Company, have been eliminated on consolidation and are not
disclosed in this note. A list of investments in subsidiary
undertakings can be found in note 13 to the Parent Company
financial statements.
|
|
FY24
£'000
|
FY23
£'000
|
GFM GmbH Trademarks1
|
|
|
|
Amounts incurred
|
|
64.7
|
262.3
|
Amounts payable by/(owed) at year
end
|
|
(4.6)
|
(6.3)
|
|
|
|
|
TeamViewer2
|
|
|
|
Amounts incurred
|
|
16.2
|
17.1
|
Amounts payable by/(owed) at year
end
|
|
-
|
-
|
|
|
|
|
Truepoint3
|
|
|
|
Amounts incurred
|
|
212.0
|
-
|
Amounts payable by/(owed) at year
end
|
|
-
|
-
|
1. GFM GmbH Trademarks is related
to the Group as it provides services or has a transactional
relationship with the Group and is an equity-accounted joint
venture under joint control of the Group.
2. TeamViewer is related to the
Group as they provide services or have a transactional relationship
with the Group and represents an investment within funds advised by
Permira Advisers LLP. The Group's largest investor, IngreLux
S.àr.l., is also owned by funds advised by Permira Advisers
LLP.
3. Truepoint is related to the
Group as they provide services or have a
transactional relationship with the Group and one of the Group's
Independent Directors is also a Director at the related
entity.
Key management personnel compensation
The compensation of key management
(including Executive and Non-Executive Directors) for the year was
as follows:
|
|
FY24
£m
|
FY23
£m
|
Salaries and benefits
|
|
5.1
|
5.5
|
Pensions
|
|
0.3
|
0.2
|
LTIPs - Share-based
payments
|
|
0.6
|
0.9
|
Parent Company Balance Sheet
As at 31 March 2024
Company registration number 12960219
|
Note
|
Total
FY24
£m
|
Total
FY23
£m
|
Fixed assets
|
|
|
|
Investments
|
6
|
1,413.4
|
1,413.4
|
|
|
1,413.4
|
1,413.4
|
|
|
|
|
Current assets
|
|
|
|
Debtors
|
7
|
3.1
|
1.7
|
Cash and cash
equivalents
|
8
|
0.1
|
0.2
|
|
|
3.2
|
1.9
|
|
|
|
|
Total assets
|
|
1,416.6
|
1,415.3
|
|
|
|
|
Current liabilities
|
|
|
|
Trade and other
payables
|
9
|
(1.2)
|
(10.5)
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
(1.2)
|
(10.5)
|
|
|
|
|
|
|
|
|
Net assets
|
|
1,415.4
|
1,404.8
|
|
|
|
|
Equity
|
|
|
|
Ordinary share capital
|
10
|
9.6
|
10.0
|
Treasury shares
|
11
|
-
|
-
|
Capital redemption
reserve
|
12
|
0.4
|
-
|
Retained earnings
|
12
|
1,405.4
|
1,394.8
|
Total equity
|
|
1,415.4
|
1,404.8
|
As permitted by section 408 of the
Companies Act 2006, the Company's Statement of Profit or Loss has
not been included in these financial statements.
The Company generated a profit for
the year to 31 March 2024 of £114.9m (FY23: £46.2m).
The notes on pages 57 to 62 are an
integral part of these financial statements.
The financial statements on pages
55 to 62 were approved and authorised by the Board of Directors on
29 May 2024 and signed on its behalf by:
Kenny
Wilson
Giles Wilson
Chief Executive
Officer
Chief Financial Officer
Parent Company Statement of Changes in
Equity
For the year ended 31 March 2024
|
|
Ordinary share
capital
|
Treasury
shares
|
Capital redemption
reserve
|
Retained
earnings
|
Total
equity
|
|
Note
|
£m
|
£m
|
£m
|
£m
|
£m
|
At 1 April 2022
|
|
10.0
|
-
|
-
|
1,406.5
|
1,416.5
|
Profit for the year
|
|
-
|
-
|
-
|
46.2
|
46.2
|
Total comprehensive income for the
year
|
|
-
|
-
|
-
|
46.2
|
46.2
|
Dividends paid
|
5
|
-
|
-
|
-
|
(58.4)
|
(58.4)
|
Shares issued
|
10
|
-
|
-
|
-
|
-
|
-
|
Share-based payments
|
|
-
|
-
|
-
|
0.5
|
0.5
|
At 31 March 2023
|
|
10.0
|
-
|
-
|
1,394.8
|
1,404.8
|
Profit for the year
|
|
-
|
-
|
-
|
114.9
|
114.9
|
Total comprehensive income for the
year
|
|
-
|
-
|
-
|
114.9
|
114.9
|
Dividends paid
|
5
|
-
|
-
|
-
|
(57.8)
|
(57.8)
|
Shares issued
|
10
|
-
|
-
|
-
|
-
|
-
|
Share-based payments
|
|
-
|
-
|
-
|
4.0
|
4.0
|
Repurchase of ordinary share
capital
|
11
|
-
|
(50.0)
|
-
|
(0.5)
|
(50.5)
|
Cancellation of repurchased
ordinary share capital
|
11
|
(0.4)
|
50.0
|
0.4
|
(50.0)
|
-
|
At 31 March 2024
|
|
9.6
|
-
|
0.4
|
1,405.4
|
1,415.4
|
Notes to the Parent Company Financial
Statements
For the year ended 31 March 2024
1.
General information
Dr. Martens plc (the 'Company') is
a public company limited by shares incorporated in the United
Kingdom, and registered and domiciled in England and Wales, whose
shares are traded on the London Stock Exchange. The Company's
registered office is: 28 Jamestown Road, Camden, London NW1 7BY.
The principal activity of the Company and its subsidiaries
(together referred to as the 'Group') is the design, development,
procurement, marketing, selling and distribution of footwear, under
the Dr. Martens brand.
2.
Accounting policies
The principal accounting policies
adopted in the preparation of the financial statements are set out
below. The policies have been consistently applied to the periods
presented, unless otherwise stated. Amounts are presented in GBP
and to the nearest million pounds (to one decimal place) unless
otherwise noted.
Basis of preparation
The financial statements of the
Company have been prepared in accordance with the Companies Act
2006 and Financial Reporting Standard 101 'Reduced Disclosure
Framework' ('FRS 101'). The financial statements have been prepared
on a going concern basis under the historical cost convention. FRS
101 enables the financial statements of the Company to be prepared
in accordance with IFRS but with certain disclosure exemptions. The
main areas of reduced disclosure are in respect of equity-settled
share-based payments, financial instruments, the Statement of Cash
Flows, and related party transactions with Group companies. The
accounting policies adopted for the Company are otherwise
consistent with those used for the Group which are set out on pages
18 to 27. As permitted by Section 408 of the Companies Act 2006,
the Statement of Profit or Loss of the Company is not presented as
part of the financial statements.
The preparation of financial
statements in conformity with FRS 101 requires the use of certain
critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Company's
accounting policies. The areas involving a higher degree of
judgement or complexity, or areas where assumptions and estimates
are significant to the financial statements, are disclosed in the
significant judgements and estimates section.
Financial Reporting Standard 101 - reduced disclosure
exemptions
This basis of preparation has
enabled the Company to take advantage of the applicable disclosure
exemptions permitted by FRS 101 in the financial statements. The
following disclosures have not been provided as permitted by FRS
101:
- a cash flow statement and
related notes;
- disclosures in respect of
transactions with wholly owned subsidiaries;
- disclosures in respect of
capital management;
- the effects of new but not yet
effective IFRS;
- disclosures in respect of the
compensation of key management personnel as required;
and
- statement of compliance with all
IFRS.
The Company has also taken the
exemption under FRS 101 available in respect of the requirements of
paragraphs 45(b) and 46 to 52 of IFRS 2 (Share-based Payment) in
respect of Group settled share-based payments as the Consolidated
Financial Statements of the Group include the equivalent
disclosures.
Notes to the Parent Company Financial Statements
(continued)
For the year ended 31 March 2024
2.
Accounting policies (continued)
Going concern
The financial statements have been
prepared on a going concern basis. The ability of the Company to
continue as a going concern is contingent on the ongoing viability
of the Group. The Directors have considered the business
activities, as well as the principal risks, the other matters
discussed in connection with the viability statement, and
uncertainties faced by the business. Based on this information, and
the Group's trading and cash flow forecasts, the Directors are
satisfied that the Group will maintain an adequate level of
resources to be able to operate during the period under review.
Refer to note 2.1 of the Consolidated Financial Statements for
further information.
Distributable reserves
When making a distribution to
shareholders, the Directors determine the profits available for
distribution by reference to guidance on realised and distributable
profits under Companies Act 2006 issued by the Institute of
Chartered Accountants in England and Wales.
Investments
Investments are stated at cost
less any provision for impairment.
Share-based payments
The Company provides benefits to
employees in the form of share-based payment transactions, whereby
employees render services as consideration in exchange for equity
instruments ('equity-settled transactions'). Refer to note 2.25 of
the Consolidated Financial Statements for further
information.
Dividends
Final dividends are recorded in
the financial statements in the period in which they are approved
by the Company's shareholders. Interim dividends are recorded in
the period in which they are approved and paid.
Share buyback
Where the Company purchases any of
its own equity instruments, for example, pursuant to the share
buyback programme, the consideration paid, including any directly
attributable incremental costs, is deducted from equity
attributable to the owners of the Company. The repurchased shares
are recognised as treasury shares until the shares are cancelled.
The programme concluded on 19 December 2023.
Significant judgements and estimates
The following judgement has had
the most significant effect on amounts recognised in the financial
statements:
Carrying value of investments
The Company assesses at each
reporting date whether there is an indication that its investment
may be impaired. If any indication exists, the Company estimates
the investment's recoverable amount. The investment's recoverable
amount is the higher of its fair value less costs of disposal and
its value in use. An impairment is present if the recoverable
amount is less than the carrying value of the asset. In assessing
an investment's recoverable amount using a value in use
calculation, estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and
future cash flows are then extended into
perpetuity using long-term growth rates.
UK registered subsidiaries exempt from
audit
Airwair Property Limited, a wholly
owned subsidiary, is exempt from the Companies Act 2006
requirements relating to the audit of their individual financial
statements by virtue of Section 479A of the Companies Act, as this
Company has provided a guarantee for Airwair Property Limited under
Section 479C of the Companies Act.
3.
Staff costs
Other than the Directors, the
Company had no employees during the year (FY23: none). Details of
Directors' remuneration can be found in the Remuneration Report on
pages 119 to 133 of the Annual Report.
4.
Auditors' remuneration
The Company has incurred audit
fees of £21,600 (FY23: £20,000) for the year.
5.
Dividends
Details in respect of dividends
proposed and paid during the year by the Company are included in
note 10 to the Consolidated Financial
Statements.
6.
Investments
|
FY24
|
FY23
|
|
£m
|
£m
|
At 1 April 2023
|
1,413.4
|
1,413.4
|
Acquisitions
|
-
|
-
|
At 31 March 2024
|
1,413.4
|
1,413.4
|
Investment impairment assessment
The Company's investment is a
non-financial asset and required to be reviewed for impairment
indicators each year-end date. If an indicator of impairment
exists, the asset is required to be tested for impairment by
estimating its recoverable amount. An asset's recoverable amount is
the higher of its fair value less costs of disposal and its value
in use. An impairment is present if the recoverable amount is less
than the carrying value of the asset.
An appropriate check to begin with
per IAS 36 is assessing whether the carrying amount of the
Company's net assets is higher than the market capitalisation.
Management has reviewed the share price as at 31 March 2024 and the
average share price over a variety of preceding time periods to
examine the average market capitalisation for comparison to Dr.
Martens plc's net assets. It is relevant to consider the volatility
of the share price over recent years when interpreting a company's
market capitalisation. Where there is volatility, taking a point in
time measure may be misleading, as market
Notes to the Parent Company Financial Statements
(continued)
For the year ended 31 March 2024
6.
Investments (continued)
Investment impairment assessment
(continued)
sentiment fluctuations can result
in significant point in time changes that are not necessarily
reflective of the true value of a business. It is also noted that
stock market movements recently are not unique to Dr. Martens only,
and significant macroeconomic and geopolitical events have impacted
many companies, again potentially inaccurately reflecting the true
value of the business. Over some of the periods reviewed, Dr.
Martens plc's net assets exceed the market capitalisation and
others they did not, therefore showing a potential indicator of
impairment but not necessarily concluding that the investment was
impaired. As this review showed a potential impairment indicator,
management decided to run a test for impairment.
The investment's recoverable
amount was deemed to be more than it's carrying amount and hence no
charge was made in the current year (FY23: £nil).
Judgements, assumptions and
estimates
The results of the Company's
impairment tests are dependent upon estimates and judgements made
by management. The recoverable amount of the Company's investment
is estimated using a value in use calculation. The value in use calculation uses cash flow forecasts based
on financial projections reviewed by the Board covering a five-year
period (pre-perpetuity). The forecasts are based on annual budgets
and strategic projections representing the best estimate of future
performance. Management considers forecasting over this period to
appropriately reflect the business cycle of the Group. These cash
flows are consistent with those used to review going concern and
viability, however, are required by IAS 36 to be adjusted for use
within an impairment review to exclude new retail development to
which the Group is not yet committed.
Operating cash
flows
The main assumptions within the
forecast operating cash flows include the achievement of future
growth in ecommerce, retail and wholesale channels, sales prices
and volumes (including reference to specific customer relationships
and product lines), raw material input costs, the cost structure of
the Group, the impact of foreign currency rates upon selling price
and cost relationships and the levels of capital expenditure
required to support each sales channel.
Future sales are estimated to
increase on a compound annual growth rate
(CAGR) basis over the 5 years pre-perpetuity from FY24 reported
sales by 10.7%. The CAGR is forecasted to be achieved through
growth as set out in our central planning assumptions underlying
our medium term forecasts, the first three years of which form the
basis of the assumptions in the Viability Statement.
The value in use calculation also
includes repayment of the Term Loan B in February 2026 per IAS 36
requirements, but in practical terms, the loan is expected to be
refinanced in 2026.
The adjustments required to
estimate value in use result in lower cash flows than the method
used for assessing the Group's viability and hence are not
considered likely to occur.
Pre-tax risk adjusted
discount rate
Future cash flows are discounted
to present value using a pre-tax discount
rate derived from risk-free rates based on long-term government
bonds, adjusted for risk factors such as region and market risk in
the territories in which the Group operates and the time value of
money. Consistent with the 2019 IFRS IASB Staff Paper, a post-tax
discount rate and post-tax cash flows are used as observable
inputs, and then the pre-tax discount rate is calculated from this
to comply with the disclosure requirements under IAS 36. The
pre-tax discount rate for the Group has been calculated to be 12.7%
(FY23: 12.3%).
Long-term growth
rate
To forecast beyond the five-year
detailed cash flows into perpetuity, a long-term average growth
rate has been used. The long-term growth rate applied for Group is
2.2% (FY23: 2.2%). The rate used includes aggregation of
geographical forecasts included within industry reports.
Sensitivity
analysis
The Company has assessed that the
two significant assumptions used within the value in use
calculation are pre-perpetuity sales growth and the pre-tax
discount rate and potential changes in these have been sensitised
as follows:
|
FY24
|
|
£m
|
Original headroom
|
262.8
|
Headroom using a 10% decrease in
forecasted sales1
|
(150.7)
|
Headroom using a 10% increase in
forecasted sales1
|
1,032.0
|
Headroom using a 1%pt decrease in
pre-tax discount rate
|
483.0
|
Headroom using a 1%pt increase in
pre-tax discount rate
|
83.4
|
Headroom combining a 10% decrease
in forecasted sales and a 1%pt increase in pre-tax discount
rate
|
(359.2)
|
1. These sensitivities are based
on a +/-10% movement in sales each year and into perpetuity. A
decrease in forecast sales of -10% results in a revised CAGR over
the 5 years pre-perpetuity from FY24 sales of 8.4%, and an increase
of 10% results in a revised CAGR of 12.9%.
A decrease in forecasted sales of
-10% has been calculated for illustrative purposes applied each
year and into perpetuity. This would result in the carrying amount
being above the recoverable amount. The required differences in the
forecasted cash flows used for the impairment assessment versus
those used for the purpose of the Group's going concern and
viability assessments result in different outputs, and this -10%
sales sensitivity outputs lower total forecasted sales in FY25
versus the severe but plausible scenario and is considered
unlikely. Furthermore, the exclusion of new retail development as
required by IAS 36 is not in line with actual expected trading
growth. The reduction in forecast sales that would result in the
carrying amount and the recoverable amount being equal would be
-7.5%.
An increase of 1 percentage point
(1%pt) in the pre-tax discount rate of 12.7% to 13.7% has been
calculated for illustrative purposes and would not result in the
carrying amount being above the recoverable amount and is also not
considered likely given that the pre-tax discount rate in FY23 was
12.3% and hence has moved less than 0.5%pts since FY23. The pre-tax
discount rate that would result in the carrying amount and the
recoverable amount being equal would be 14.2%. This sensitivity has
been included to provide an illustration should the forecasted
sales decline by -10% and the pre-tax discount rate also increases
by 1%pt. This would result in the carrying amount being above the
recoverable amount.
A list of the Company's
investments in subsidiary undertakings can be found in note
13.
Notes to the Parent Company Financial Statements
(continued)
For the year ended 31 March 2024
7.
Debtors
|
FY24
|
FY23
|
|
£m
|
£m
|
Income tax receivable
|
0.1
|
-
|
Social security and other
taxes
|
-
|
-
|
Prepayments and accrued
income
|
0.3
|
0.8
|
Amounts owed by subsidiary
undertakings1
|
2.7
|
0.9
|
|
3.1
|
1.7
|
1. Amounts owed by subsidiary
undertakings are non-interest bearing trading balances and are
repayable on demand.
IFRS 9 expected credit losses have
been assessed as immaterial in relation to all balances.
8.
Cash and cash equivalents
|
FY24
|
FY23
|
|
£m
|
£m
|
Cash and cash
equivalents
|
0.1
|
0.2
|
9.
Trade and other payables
|
FY24
|
FY23
|
|
£m
|
£m
|
Trade creditors
|
0.1
|
0.1
|
Amounts due to subsidiary
undertakings1
|
0.2
|
10.3
|
Accruals and deferred
income
|
0.9
|
0.1
|
|
1.2
|
10.5
|
1. Amounts owed to subsidiary
undertakings are non-interest bearing trading balances and are
repayable on demand.
10.
Ordinary share capital
|
FY24
|
FY24
|
FY23
|
FY23
|
|
No.
|
£m
|
No.
|
£m
|
Authorised, called up and fully paid
|
|
|
|
|
Ordinary shares of £0.01
each
|
961,878,608
|
9.6
|
1,000,793,898
|
10.0
|
The movements in the ordinary share capital
during the year ended 31 March 2024 and 31 March 2023 were as
follows:
|
FY24
|
FY24
|
FY23
|
FY23
|
|
Shares
no.
|
Ordinary share
capital
£m
|
Shares
no.
|
Ordinary
share capital
£m
|
At 1 April
|
1,000,793,898
|
10.0
|
1,000,222,700
|
10.0
|
Shares issued
|
953,845
|
-
|
571,198
|
-
|
Repurchase and cancellation of
ordinary share capital
|
(39,869,135)
|
(0.4)
|
-
|
-
|
At 31 March
|
961,878,608
|
9.6
|
1,000,793,898
|
10.0
|
The cost of shares purchased by
the SIP Trusts is offset against the profit and loss account, as
the amounts paid reduce the profits available for distribution by
the Company.
11.
Treasury shares
The movements in treasury shares
held by the Company during the years ended 31 March 2024 were as
follows:
|
FY24
|
FY24
|
FY23
|
FY23
|
|
No.
|
£m
|
No.
|
£m
|
At 1
April
|
110,153
|
-
|
16,925
|
-
|
Repurchase of shares for
cancellation
|
39,869,135
|
50.0
|
-
|
-
|
Cancellation of shares
|
(39,869,135)
|
(50.0)
|
-
|
-
|
Shares issued for share
schemes
|
284,770
|
-
|
93,228
|
-
|
At 31 March
|
394,923
|
-
|
110,153
|
-
|
On 14 July 2023 Dr. Martens plc
announced a share buyback programme. Treasury shares existed during
the year as a result of the timing delay between the repurchase of
shares under this programme and the subsequent cancellation of
these shares. The programme concluded on 19 December 2023.
Notes to the Parent Company Financial Statements
(continued)
For the year ended 31 March 2024
12.
Reserves
Reserve
|
Description and
purpose
|
Ordinary share capital
|
Nominal
value of subscribed shares.
|
Treasury
shares
|
This reserve relates to shares
held by SIP Trusts as 'treasury shares'. The shares held by the SIP
Trusts were issued directly to the Trusts in order to satisfy
outstanding employee share options and potential awards under the
employee share incentive schemes. The
Company issued 284,770 shares directly to the Trusts during the
year and held 394,923 as at 31 March 2024 (31 March 2023: 110,153).
This reserve was previously referred to as 'capital reserve - own
shares'. This reserve also included treasury shares repurchased but
not yet cancelled, pursuant to the share buyback programme, which
concluded during FY24.
|
Capital
redemption reserve
|
A non-distributable reserve into
which amounts are transferred following the redemption or purchase
of own shares. The reserve was created in order to ensure
sufficient distributable reserves were available for the purpose of
redeeming preference shares in the prior years.
|
Retained earnings
|
To recognise the profit or loss,
all other net gains and losses and transactions with owners (e.g.
dividends) not recognised elsewhere, and the value of
equity-settled share-based awards provided to Executive Directors
and other senior executives as part of their remuneration (refer to
the Directors' Remuneration Report on pages 119 to 133 of the
Annual Report for further details).
|
Notes to the Parent Company Financial Statements
(continued)
For the year ended 31 March 2024
13.
Subsidiary undertakings
The registered address and
principal place of business of each subsidiary undertaking are
shown in the footnotes below the table. The financial performance
and financial position of these undertakings have been consolidated
in the Consolidated Financial Statements.
|
|
|
Nature
of investment
|
|
Name
|
Country of
registration
|
Class of
share capital held
|
Direct
|
Indirect
|
Nature of
business
|
Airwair
(1994) Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Management
company
|
Airwair
(1996) Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Management
company
|
Airwair
International Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Airwair
Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Management
company
|
Airwair
Property Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Property
investment
|
Ampdebtco
Limited2
|
England
and Wales
|
Ordinary
|
100%
|
-
|
Management
company
|
DM Airwair
Germany GmbH13
|
Germany
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
DM Airwair
Sweden AB14
|
Sweden
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair (Ireland) Limited12
|
Republic
of Ireland
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Trading (Zhuhai) Company
Limited*4
|
China
|
Ordinary
|
-
|
100%
|
Manufacturing support
|
Dr.
Martens Airwair Austria GmbH22
|
Austria
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Belgium SA8
|
Belgium
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Canada Inc.19
|
Canada
|
Capital of
no par value
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair France SAS9
|
France
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Group Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Management
company
|
Dr.
Martens Airwair Hong Kong Limited5
|
Hong Kong
SAR
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Japan K.K.7
|
Japan
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Korea Limited6
|
Korea
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Spain S.L.U.17
|
Spain
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair USA LLC3
|
USA
|
Capital of
no par value
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Wholesale Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Italy S.R.L.15
|
Italy
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Netherlands B.V.10
|
Netherlands
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
GFM GmbH
Trademarks11
|
Germany
|
Ordinary
|
-
|
50%
|
Trademark
registration
|
Shanghai
Airwair Trading Limited*16
|
China
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Poland Z.o.o.20
|
Poland
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Denmark ApS21
|
Denmark
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr.
Martens Airwair Vietnam Company Limited23
|
Vietnam
|
Ordinary
|
-
|
100%
|
Footwear
retail and distribution
|
Dr Martens
Airwair Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Dormant
|
Dr.
Martens Sports & Leisure Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Dormant
|
Dr.
Martens Airwair Singapore PTE Ltd18
|
Singapore
|
Ordinary
|
-
|
100%
|
Non-trading
|
Dr Martens
Airwair & Co. Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Dormant
|
Dr.
Martens Dept. Store Limited1
|
England
and Wales
|
Ordinary
|
-
|
100%
|
Dormant
|
*The
financial year of this entity ends on 31 December in line with
local requirements.
1. Cobb's Lane, Wollaston,
Northamptonshire, England, NN29 7SW.
2. 28 Jamestown Road, Camden,
London, England, NW1 7BY.
3. 16192 Coastal Hwy, Lewes,
Delaware 19958, United States.
4. No. 04B, F16. Seat B, No 2021,
Jiuzhou Avenue West, Zhuhai 519000, Guangdong Province,
China.
5. Unit 2306-11, 23F, Sun Life
Tower, The Gateway Tower 5, Harbour City, 15 Canton Road, Tsim Sha
Tsui, Hong Kong.
6. 14/F, Room 1, 2, SB Tower, 318
Dosan-daero, Gangnam-gu, Seoul, Republic of Korea.
7. 5-2-28 Jingumae, Shibuya,
Tokyo, Japan 150-0001.
8. Avenue du Port 86C, Box 204,
1000 Brussels, Belgium.
9. 5, Cité Trévise 75009 Paris,
France.
10. Herikerbergweg 238, Luna
Arena, 1101 CM Amsterdam, Netherlands.
11. Seeshaupt, Landkreis
Weilheim-Schongau, Germany. Note: this entity is equity accounted
not consolidated.
12. TMF Group Ground Floor, Two
Dockland Central, Guild St, North Dock, Dublin, Republic of
Ireland, D01 K2C5.
13. Wagnerstr. 1A, 40212
Düsseldorf, Germany.
14. Blekingegatan 48, 11662
Stockholm, Sweden.
15. Via Morimondo 26-20143 Milano,
Italy.
16. Room 1610-11, 1612, Level 16,
Tower A, THREE ITC, No. 183 Hongqiao Road, Xuhui, Shanghai,
China.
17. C/Principe de Vergara, 112 4A
Planta 28002, Madrid, Spain.
18. 77 Robinson Road, 13-00
Robinson 77, Singapore 068896.
19. 221-451 Dundas Street West,
Toronto, Ontario, M5T 1G8, Canada.
20. Rondo, Daszyńskiego 2B, 00-843
Warsaw, Poland.
21. H.C. Andersens Boulevard 38,
3. Th, 1553, København, 1553 Langebro, Denmark.
22. Teinfaltstraße 8/4, 1010
Vienna, Austria.
23. Level 6 & 7, Friendship
Tower, No. 31 Le Duan Street, Ben Nghe Ward, District 1, Ho Chi
Minh City, Vietnam.
Five-year financial summary (unaudited)
For the year ended 31 March 2024
|
FY24
|
|
FY23
|
|
FY22
|
|
FY211
|
|
FY20
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Ecommerce
|
276.3
|
|
279.0
|
|
262.4
|
|
235.4
|
|
136.4
|
|
|
Retail
|
256.8
|
|
241.7
|
|
185.6
|
|
99.7
|
|
165.2
|
|
|
DTC
|
533.1
|
|
520.7
|
|
448.0
|
|
335.1
|
|
301.6
|
|
|
Wholesale5
|
344.0
|
|
479.6
|
|
460.3
|
|
437.9
|
|
370.6
|
|
|
|
877.1
|
|
1,000.3
|
|
908.3
|
|
773.0
|
|
672.2
|
|
|
Gross profit
|
575.2
|
|
618.1
|
|
578.8
|
|
470.5
|
|
401.5
|
|
Operating expenses
|
(377.7)
|
|
(373.1)
|
|
(315.8)
|
|
(247.6)
|
|
(217.0)
|
|
EBITDA2
|
197.5
|
|
245.0
|
|
263.0
|
|
222.9
|
|
184.5
|
|
|
Profit before tax and exceptional items
|
93.0
|
|
159.4
|
|
214.3
|
|
150.2
|
|
113.0
|
|
|
Profit before tax3
|
93.0
|
|
159.4
|
|
214.3
|
|
69.7
|
|
101.0
|
|
|
Tax expense
|
(23.8)
|
|
(30.5)
|
|
(33.1)
|
|
(35.0)
|
|
(26.2)
|
|
|
Profit after tax
|
69.2
|
|
128.9
|
|
181.2
|
|
34.7
|
|
74.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
7.0p
|
|
12.9p
|
|
18.1p
|
|
3.5p
|
|
|
|
|
Diluted
|
7.0p
|
|
12.9p
|
|
18.1p
|
|
3.5p
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
Pairs sold (m)
|
11.5
|
|
13.8
|
|
14.1
|
|
12.7
|
|
11.1
|
|
|
No. of
stores4
|
239
|
|
204
|
|
158
|
|
135
|
|
122
|
|
|
DTC mix %
|
61%
|
|
52%
|
|
49%
|
|
43%
|
|
45%
|
|
|
Gross margin
%2
|
65.6%
|
|
61.8%
|
|
63.7%
|
|
60.9%
|
|
59.7%
|
|
|
EBITDA %2
|
22.5%
|
|
24.5%
|
|
29.0%
|
|
28.8%
|
|
27.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Results for the year ended 31
March 2021 have been retrospectively restated in relation to a
change in accounting policy for the treatment of cloud-based
software. This resulted in £nil impact on cash.
2. Alternative Performance Measure
'APM' as defined in the Glossary on pages 66 and 67.
3. Post exceptional
items.
4. Own stores on streets and malls
operated under arm's length leasehold arrangements.
5. Wholesale revenue including
distributor customers.
Five-year financial summary (unaudited)
For the year ended 31 March 2024
|
FY24
|
|
FY23
|
|
FY22
|
|
FY211
|
|
FY20
|
|
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
£m
|
|
|
Revenue by region:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
431.8
|
|
443.0
|
|
398.5
|
|
335.6
|
|
287.9
|
|
Americas
|
325.8
|
|
428.2
|
|
382.7
|
|
295.8
|
|
252.2
|
|
APAC
|
119.5
|
|
129.1
|
|
127.1
|
|
141.6
|
|
132.1
|
|
|
877.1
|
|
1,000.3
|
|
908.3
|
|
773.0
|
|
672.2
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA %
|
49%
|
|
44%
|
|
44%
|
|
44%
|
|
43%
|
|
|
Americas %
|
37%
|
|
43%
|
|
42%
|
|
38%
|
|
37%
|
|
|
APAC %
|
14%
|
|
13%
|
|
14%
|
|
18%
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA2 by
region:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
140.8
|
|
146.1
|
|
143.8
|
|
115.3
|
|
92.4
|
|
|
Americas
|
64.4
|
|
100.1
|
|
120.0
|
|
91.9
|
|
75.4
|
|
|
APAC
|
31.7
|
|
33.8
|
|
32.6
|
|
39.7
|
|
35.5
|
|
|
Group support costs
|
(39.4)
|
|
(35.0)
|
|
(33.4)
|
|
(24.0)
|
|
(18.8)
|
|
|
|
197.5
|
|
245.0
|
|
263.0
|
|
222.9
|
|
184.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA %2 by
region:
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
32.6%
|
|
33.0%
|
|
36.1%
|
|
34.4%
|
|
32.1%
|
|
|
Americas
|
19.8%
|
|
23.4%
|
|
31.4%
|
|
31.1%
|
|
29.9%
|
|
|
APAC
|
26.5%
|
|
26.2%
|
|
25.6%
|
|
28.0%
|
|
26.9%
|
|
|
|
22.5%
|
|
24.5%
|
|
29.0%
|
|
28.8%
|
|
27.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Results for the year ended 31
March 2021 have been retrospectively restated in relation to a
change in accounting policy for the treatment of cloud-based
software. This resulted in £nil impact on cash.
2. Alternative Performance Measure
'APM' as defined in the Glossary on pages 66 and 67.
First half/second half analysis (unaudited)
For the year ended 31 March 2024
|
H1
|
|
H2
|
|
FY
|
|
|
Unaudited
FY24
|
|
Unaudited
FY23
|
|
Variance
|
|
Unaudited
FY24
|
|
Unaudited
FY23
|
|
Variance
|
|
Audited
FY24
|
|
Audited
FY23
|
|
Variance
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
|
£m
|
|
£m
|
|
%
|
Revenue by channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ecommerce
|
91.7
|
|
88.8
|
|
3%
|
|
184.6
|
|
190.2
|
|
-3%
|
|
276.3
|
|
279.0
|
|
-1%
|
Retail
|
104.7
|
|
91.0
|
|
15%
|
|
152.1
|
|
150.7
|
|
1%
|
|
256.8
|
|
241.7
|
|
6%
|
DTC
|
196.4
|
|
179.8
|
|
9%
|
|
336.7
|
|
340.9
|
|
-1%
|
|
533.1
|
|
520.7
|
|
2%
|
Wholesale4
|
199.4
|
|
238.8
|
|
-16%
|
|
144.6
|
|
240.8
|
|
-40%
|
|
344.0
|
|
479.6
|
|
-28%
|
|
395.8
|
|
418.6
|
|
-5%
|
|
481.3
|
|
581.7
|
|
-17%
|
|
877.1
|
|
1,000.3
|
|
-12%
|
Gross profit
|
254.9
|
|
257.8
|
|
-1%
|
|
320.3
|
|
360.3
|
|
-11%
|
|
575.2
|
|
618.1
|
|
-7%
|
EBITDA1
|
77.6
|
|
88.8
|
|
-13%
|
|
119.9
|
|
156.2
|
|
-23%
|
|
197.5
|
|
245.0
|
|
-19%
|
Profit before tax2
|
25.8
|
|
57.9
|
|
-55%
|
|
67.2
|
|
101.5
|
|
-34%
|
|
93.0
|
|
159.4
|
|
-42%
|
Tax expense
|
(6.8)
|
|
(13.2)
|
|
-48%
|
|
(17.0)
|
|
(17.3)
|
|
-2%
|
|
(23.8)
|
|
(30.5)
|
|
-22%
|
Profit after tax
|
19.0
|
|
44.7
|
|
-57%
|
|
50.2
|
|
84.2
|
|
-40%
|
|
69.2
|
|
128.9
|
|
-46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.9p
|
|
4.5p
|
|
-58%
|
|
5.1p
|
|
8.4p
|
|
-39%
|
|
7.0p
|
|
12.9p
|
|
-46%
|
Diluted
|
1.9p
|
|
4.5p
|
|
-58%
|
|
5.1p
|
|
8.4p
|
|
-39%
|
|
7.0p
|
|
12.9p
|
|
-46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pairs sold (m)
|
5.7
|
|
6.3
|
|
-10%
|
|
5.8
|
|
7.5
|
|
-23%
|
|
11.5
|
|
13.8
|
|
-17%
|
No. of
stores3
|
225
|
|
174
|
|
29%
|
|
239
|
|
204
|
|
17%
|
|
239
|
|
204
|
|
17%
|
DTC mix %
|
50%
|
|
43%
|
|
+7pts
|
|
70%
|
|
59%
|
|
+11pts
|
|
61%
|
|
52%
|
|
+9pts
|
Gross margin
%1
|
64.4%
|
|
61.6%
|
|
+2.8pts
|
|
66.5%
|
|
61.9%
|
|
+4.6pts
|
|
65.6%
|
|
61.8%
|
|
+3.8pts
|
EBITDA %1
|
19.6%
|
|
21.2%
|
|
-1.6pts
|
|
24.9%
|
|
26.9%
|
|
-2.0pts
|
|
22.5%
|
|
24.5%
|
|
-2.0pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
194.2
|
|
179.0
|
|
8%
|
|
237.6
|
|
264.0
|
|
-10%
|
|
431.8
|
|
443.0
|
|
-3%
|
Americas
|
147.7
|
|
179.7
|
|
-18%
|
|
178.1
|
|
248.5
|
|
-28%
|
|
325.8
|
|
428.2
|
|
-24%
|
APAC
|
53.9
|
|
59.9
|
|
-10%
|
|
65.6
|
|
69.2
|
|
-5%
|
|
119.5
|
|
129.1
|
|
-7%
|
|
395.8
|
|
418.6
|
|
-5%
|
|
481.3
|
|
581.7
|
|
-17%
|
|
877.1
|
|
1,000.3
|
|
-12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA %
|
49%
|
|
43%
|
|
+6pts
|
|
49%
|
|
45%
|
|
+4pts
|
|
49%
|
|
44%
|
|
+5pts
|
Americas %
|
37%
|
|
43%
|
|
-6pts
|
|
37%
|
|
43%
|
|
-6pts
|
|
37%
|
|
43%
|
|
-6pts
|
APAC %
|
14%
|
|
14%
|
|
-
|
|
14%
|
|
12%
|
|
+2pts
|
|
14%
|
|
13%
|
|
+1pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA1 by
region:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
55.8
|
|
52.8
|
|
6%
|
|
85.0
|
|
93.3
|
|
-9%
|
|
140.8
|
|
146.1
|
|
-4%
|
Americas
|
28.6
|
|
41.4
|
|
-31%
|
|
35.8
|
|
58.7
|
|
-39%
|
|
64.4
|
|
100.1
|
|
-36%
|
APAC
|
12.2
|
|
13.1
|
|
-7%
|
|
19.5
|
|
20.7
|
|
-6%
|
|
31.7
|
|
33.8
|
|
-6%
|
Support costs
|
(19.0)
|
|
(18.5)
|
|
3%
|
|
(20.4)
|
|
(16.5)
|
|
24%
|
|
(39.4)
|
|
(35.0)
|
|
13%
|
|
77.6
|
|
88.8
|
|
-13%
|
|
119.9
|
|
156.2
|
|
-23%
|
|
197.5
|
|
245.0
|
|
-19%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA %1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA
|
28.7%
|
|
29.5%
|
|
-0.8pts
|
|
35.8%
|
|
35.3%
|
|
+0.5pts
|
|
32.6%
|
|
33.0%
|
|
-0.4pts
|
Americas
|
19.4%
|
|
23.0%
|
|
-3.6pts
|
|
20.1%
|
|
23.6%
|
|
-3.5pts
|
|
19.8%
|
|
23.4%
|
|
-3.6pts
|
APAC
|
22.6%
|
|
21.9%
|
|
+0.7pts
|
|
29.7%
|
|
29.9%
|
|
-0.2
pts
|
|
26.5%
|
|
26.2%
|
|
+0.3pts
|
Total
|
19.6%
|
|
21.2%
|
|
-1.6pts
|
|
24.9%
|
|
26.9%
|
|
-2.0pts
|
|
22.5%
|
|
24.5%
|
|
-2.0pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Alternative Performance Measure
'APM' as defined in the Glossary on pages 66 and 67.
2. Post exceptional
items.
3. Own stores on streets and malls
operated under arm's length leasehold arrangements.
4. Wholesale revenue including
distributor customers.
Glossary and Alternative Performance Measures
(APMs)
The Group tracks a number of key
performance indicators (KPIs) including Alternative Performance
Measures (APMs) in managing its business, which are not defined or
specified under the requirements of IFRS because they exclude
amounts that are included in, or include amounts that are excluded
from, the most directly comparable measures calculated and
presented in accordance with IFRS or are calculated using financial
measures that are not calculated in accordance with
IFRS.
The Group believes that these
APMs, which are not considered to be a substitute for or superior
to IFRS measures, provide stakeholders with additional helpful
information on the performance of the business. These APMs
are consistent with how the business performance is planned and
reported within the internal management reporting to the
Board.
The Group is no longer presenting
underlying earnings per share. In previous years this metric was
introduced to present earnings per share exclusive of prior year
tax adjustments in relation to exceptional costs. The Group
recognised £nil prior year tax adjustments in relation to
exceptional costs in FY24 and FY23; as such this adjusted measure
is no longer relevant.
These APMs should be viewed as
supplemental to, but not as a substitute for, measures presented in
the Consolidated Financial Statements relating to the Group, which
are prepared in accordance with IFRS. The Group believes that
these APMs are useful indicators of its performance. However, they
may not be comparable with similarly titled measures reported by
other companies due to differences in the way they are
calculated.
Metric
|
Definition
|
Rationale
|
APM
|
KPI
|
Revenue
|
Revenue
per financial statements.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
No
|
Yes
|
Revenue by
geographical market
|
Revenue
per the Group's geographical segments.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
No
|
Yes
|
Revenue:
EMEA
|
Revenue:
Americas
|
Revenue:
APAC
|
Revenue by
channel
|
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
No
|
Yes
|
|
|
Revenue:
ecommerce
|
Revenue
from the Group's ecommerce platforms.
|
Revenue:
retail
|
Revenue
from the Group's own stores (including concessions).
|
Revenue:
DTC
|
Revenue
from the Group's direct-to-consumer (DTC) channel (= ecommerce plus
retail revenue).
|
Revenue:
wholesale
|
Revenue
from the Group's business-to-business channel, revenue to wholesale
customers, distributors and franchisees.
|
Constant
currency basis
|
Non-GBP
results with the same foreign exchange rate applied to the current
and prior periods, based on the current budgeted rates.
|
Presenting
results of the Group excluding foreign exchange
volatility.
|
No
|
No
|
Gross
margin
|
Revenue
less cost of sales (raw materials and consumables).
Cost of sales is disclosed in the Consolidated Statement of Profit
or Loss.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
No
|
No
|
Gross
margin %
|
Gross
margin divided by revenue.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
Yes
|
No
|
Glossary and Alternative Performance Measures (APMs)
(continued)
Metric
|
Definition
|
Rationale
|
APM
|
KPI
|
Opex
|
Selling
and administrative expenses and finance expenses less depreciation,
amortisation, foreign exchange gains/(losses) and finance
expense.
|
Opex is
used to reconcile between gross margin and EBITDA.
|
Yes
|
No
|
EBITDA
|
Profit/(loss) for the year before income tax expense,
financing expense, foreign exchange gains/(losses), depreciation of
right-of-use assets, depreciation, amortisation and exceptional
items.
Exceptional items are material items that are considered
exceptional in nature by virtue of their size and/or
incidence.
|
EBITDA is
used as a key profit measure because it shows the results of
normal, core operations exclusive of income or charges that are not
considered to represent the underlying operational
performance.
|
Yes
|
Yes
|
EBITDA
%
|
EBITDA
divided by revenue.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
Yes
|
Yes
|
EBIT
|
Profit/(loss) for the year before income tax expense,
financing expense, foreign exchange gains/(losses) and exceptional
items.
Exceptional items are material items that are considered
exceptional in nature by virtue of their size and/or
incidence.
|
EBIT is
used as a key profit measure because it shows the results of
normal, core operations exclusive of income or charges that are not
considered to represent the underlying operational
performance.
|
Yes
|
No
|
Operating
cash flow
|
EBITDA
less change in net working capital, share-based payment expense and
capital expenditure.
|
Operating
cash flow is used as a trading cash generation measure because it
shows the results of normal, core operations exclusive of income or
charges that are not considered to represent the underlying
operational performance.
|
Yes
|
Yes
|
Operating
cash flow conversion
|
Operating
cash flow divided by EBITDA.
|
Used to
evaluate the efficiency of a company's operations and its ability
to employ its earnings toward repayment of debt, capital
expenditure and working capital requirements.
|
Yes
|
Yes
|
Free cash
flow
|
Operating
cash flow less cash outflows for exceptional items, net interest
paid, taxation and lease liabilities.
|
Free cash
flow is used as a net cash flow measure for the Group before
changes in the debt/capital structure.
|
Yes
|
No
|
Net
debt
|
Net debt
is calculated by subtracting cash and cash equivalents from bank
loans and lease liabilities.
|
To aid the
understanding of the reader of the financial statements in respect
of liabilities owed.
|
Yes
|
No
|
Profit
before tax (before FX charge)
|
Profit
before tax and before foreign exchange gains/losses.
|
Helps
evaluate growth trends, establish budgets and assess operational
performance and efficiencies.
|
Yes
|
No
|
Earnings
per share
|
IFRS
measure.
|
This
indicates how much money a company makes for
each share of its stock, and is a
widely used metric to estimate company value.
|
No
No
No
|
Yes
Yes
No
|
Basic
earnings per share
|
The
calculation of earnings per ordinary share is based on earnings
after tax and the weighted average number of ordinary shares in
issue during the period/year.
|
A higher
EPS indicates greater value because investors will pay
more for a company's shares if they think the company has
higher profits relative to its share price.
|
Diluted
earnings per share
|
Calculated
by dividing the profit attributable to ordinary equity holders of
the parent by the weighted average number of ordinary shares in
issue during the period/year plus the weighted average number of
ordinary shares that would have been issued on the conversion of
all dilutive potential ordinary shares into ordinary
shares.
|
Used to gauge the quality of EPS if all convertible
securities were exercised.
|
Ecommerce
mix %
|
Ecommerce
revenue as a percentage of total revenue.
|
Helps
evaluate progress towards strategic objectives.
|
No
|
Yes
|
DTC mix
%
|
DTC
revenue as a percentage of total revenue.
|
Helps
evaluate progress towards strategic objectives.
|
No
|
Yes
|
No. of
stores
|
Number of
'own' stores open in the Group.
|
Helps
evaluate progress towards strategic objectives.
|
No
|
Yes
|
Pairs
|
Pairs of
footwear sold during a period.
|
Used to
show volumes and growths in the Group.
|
No
|
Yes
|
Company Information
Shareholders' enquiries
Any shareholder with enquiries
relating to their shareholding should, in the first instance,
contact our registrar, Equiniti, using the telephone number or
address on this page.
Electronic shareholder communications
Shareholders can elect to receive
communications by email each time the Company distributes
documents, instead of receiving paper copies. This can be done by
registering via Shareview at no extra cost, at www.shareview.co.uk.
In the event that you change your mind or require a paper version
of any document in the future, please contact the
registrar.
Access to Shareview allows
shareholders to view details about their holdings, submit a proxy
vote for shareholder meetings and notify a change of address. In
addition to this, shareholders have the opportunity to complete
dividend mandates online which facilitates the payment of dividends
directly into a nominated account.
Registered office
28 Jamestown Road
Camden
London
NW1 7BY
Investor relations
investor.relations@drmartens.com
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
Tel: 0371 384 2030 (from the
UK)
Tel: +44 121 4157047 (from
overseas)
Independent Auditor
PricewaterhouseCoopers
LLP
1 Embankment Place
London
WC2N 6RH
Tel: +44 (0) 20 7583
5000