Superdry Plc – Announcement of preliminary results -9-

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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

(MORE FOLLOWING) Dow Jones Newswires

September 16, 2021 02:00 ET (06:00 GMT)


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