As already described in the going concern statement, as part of this assessment, the Directors have considered an extended reverse stress test over the sustainability period with similar mitigations to the going concern assessment. , and took into account the availability of the Group’s ABL.
While recognizing that the challenging retail environment will increase the risks and costs associated with the future refinancing of this facility, based on current market conditions and our proven ability to manage liquidity during the pandemic, the directors believe that Superdry has the plans, current assets and mitigation measures in place to maximize the prospects for a successful renewal before the ABL expires in January 2023. The viability assessment therefore assumes that the Group renews under existing or better conditions for the duration of the viability period.
As part of the reverse stress test, which tests the breakeven point against our borrowing facilities (liquidity and covenants are tested separately), the July 2022 (Q2-23) covenant test would violate first, in accordance with the business continuity test. Taking into account the supposed resumption of post-Covid trade in the medium-term plan, the liquidity and covenant margin in the last years of the plan is higher than in fiscal year 23. The reverse stress test indicated that after taking into account the mitigation measures highlighted in the going concern assessment above, the Group would be able to operate within its financing facilities for the assessment period five years. However, a lasting slowdown due to the new strategy failing to turn the business around, or an unexpected failure to renew the ABL in January 2023, would threaten the viability of the business during this five-year review period. years.
Based on this assessment, the Directors can reasonably expect that the Group will have sufficient resources to continue its activities and meet its commitments as they fall due during the period up to April 2026.
Remarks
1. “Lost trading days” calculated as the simple average number of stores closed each day of the period as a percentage of total potential trading days in the period, excludes the impact of restricted trading hours.
2. The composition of full-price sales refers to the proportion of retail sales made at the recommended selling price in full-price stores and owned websites only.
3. Annualized cash savings were calculated based on the effective date of the lease.
Group statement of comprehensive income
to members of Superdry Plc
Adjusted* Adjusting Total Adjusted* Adjusting Total
Note 2021 items 2021 2020 items 2020
GBPm (note 7) GBPm GBPm (note 7) GBPm
GBPm GBPm
Revenue 6 556.1 - 556.1 704.4 - 704.4
Cost of sales (263.0) - (263.0) (326.5) - (326.5)
Gross profit 293.1 - 293.1 377.9 - 377.9
Selling, general and administrative expenses (321.6) (19.4) (341.0) (412.1) (127.0) (539.1)
Other gains and losses (net) 19.3 (4.7) 14.6 9.1 1.9 11.0
Impairment credit/(loss) on trade receivables 3.8 - 3.8 (9.2) - (9.2)
Operating loss (5.4) (24.1) (29.5) (34.3) (125.1) (159.4)
Finance income - - - 0.2 - 0.2
Finance expense (7.2) - (7.2) (7.7) - (7.7)
Loss before tax (12.6) (24.1) (36.7) (41.8) (125.1) (166.9)
Tax (expense)/credit 10 (3.3) 3.9 0.6 6.1 17.4 23.5
Loss for the period (15.9) (20.2) (36.1) (35.7) (107.7) (143.4)
Attributable to:
Owners of the Company (15.9) (20.2) (36.1) (35.7) (107.7) (143.4)
Other comprehensive expense net of tax:
Items that may be subsequently reclassified to
profit or loss
Currency translation differences 12.1 - 12.1 (2.5) - (2.5)
Total comprehensive expenses for the period (3.8) (20.2) (24.0) (38.2) (107.7) (145.9)
Attributable to:
Owners of the Company (3.8) (20.2) (24.0) (38.2) (107.7) (145.9)
pence pence pence pence
per share per per share per
share share
Earnings per share:
Basic 11 (19.4) (44.0) (43.5) (174.9)
Diluted 11 (19.4) (44.0) (43.3) (174.1)
* Adjusted and adjusting items are defined in Note 22.
2021 corresponds to the 52 weeks ended April 24, 2021 and 2020 corresponds to the 52 weeks ended April 25, 2020.
Balance sheet
to members of Superdry Plc Registration number: 07063562
Group
24 April 25 April
Note 2021 2020
GBPm GBPm
ASSETS
Non-current assets
Property, plant and equipment 13 29.4 41.7
Right of use assets 17 91.1 118.0
Intangible assets 14 41.7 48.4
Investments in subsidiaries - -
Deferred tax assets 53.8 53.3
Derivative financial instruments 20 0.3 0.1
Total non-current assets 216.3 261.5
Current assets
Inventories 148.3 158.7
Trade and other receivables 102.3 91.6
Derivative financial instruments 20 2.4 2.5
Current tax receivables 4.0 6.8
Cash and bank balances 38.9 307.4
Total current assets 295.9 567.0
LIABILITIES
Current liabilities
Borrowings - 270.7
Trade and other payables 126.5 103.3
Provisions for other liabilities and charges 6.2 4.2
Derivative financial instruments 20 5.7 2.1
Lease liabilities 17 94.1 80.1
Total current liabilities 232.5 460.4
Net current assets/(liabilities) 63.4 106.6
Non-current liabilities
Trade and other payables 1.2 2.2
Provisions for other liabilities and charges 10.0 10.8
Derivative financial instruments 20 1.5 0.2
Deferred liabilities 1.1 1.4
Lease liabilities 17 175.5 240.8
Total non-current liabilities 189.3 255.4
Net assets 90.4 112.7
EQUITY
Share capital 21 4.1 4.1
Share premium 149.2 149.1
Translation reserve 6.6 (5.5)
Merger reserve (302.5) (302.5)
Retained earnings 233.0 267.5
Total equity 90.4 112.7
Group cash flow statement
to members of Superdry Plc
Group
Note 2021 2020
GBPm GBPm
Cash generated from operating activities 18 50.1 87.5
Tax receipt/(payment) 2.5 (2.2)
Net cash generated from operating activities 52.6 85.3
Cash flow from investing activities
Investments in subsidiaries - -
Purchase of property, plant and equipment (6.8) (6.4)
Purchase of intangible assets (6.8) (7.5)
Proceeds from disposal of assets held for sale - 2.4
Net cash used in investing activities (13.6) (11.5)
Cash flow from financing activities
Dividend payments 12 - (3.4)
Proceeds of issue of share capital 0.1 -
Draw down of Revolving Credit Facility - (30.0)
Repayment of Revolving Credit Facility - 30.0
Net interest paid (7.2) (7.5)
Repayment of leases - principal amount 17 (39.9) (61.1)
Net cash used in financing activities (47.0) (72.0)
Net (decrease)/increase in cash and cash equivalents 19 (8.0) 1.8
Net cash and cash equivalents/(debt) at beginning of period 19 36.7 35.9
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