Carphone Warehouse 2016 Annual Report Download - page 26

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Dixons Carphone plc Annual Report and Accounts 2015/16
Strategic Report
Performance review
24
Highlights: 12 months to 30 April 2016*
•Group like-for-like revenue(4) up 5% (UK & Ireland up 6% and Nordics up 4%)
•Strong profit performance:
– Headline PBT(1) of £447 million (2014/15: £381 million), up over 17%
– Headline basic EPS(1) (2) 29.3p (2014/15: 25.5p)
–Total statutory profit of £161 million (2014/15: £97 million) after Non-Headline(1) charges of £176 million
(2014/15:£188 million) which include a loss from discontinued operations of £18 million (2014/15: £114 million)
•Free cash flows(9) of £202 million (2014/15: £89 million) and net debt broadly flat year-on-year at £267 million
•Final dividend of 6.50p (2014/15: 6.00p) proposed, taking total dividends for the year to 9.75p (2014/15: 8.50p), up 15%
year-on-year
•Sprint joint venture in the US expected to contribute $40 million - $50 million of annual EBIT to the Group by 2019/20
•honeyBee platform: second major client signed
Headline results*(1)
Headline revenue(1) Headline profit / (loss)(1)
Note
2015/16
£million
2014/15
£million
Local
currency(3)
% change
Like-for-like(4)
% change
2015/16
£million
2014/15
£million
UK & Ireland (5) 6,404 6,314 2% 6% 365 305
Nordics (6) 2,632 2,709 6% 4% 79 86
Southern Europe (7) 550 606 (5)% 4% 17 15
Connected World Services (8) 152 121 26% N/A 7 7
Group 9,738 9,750 3% 5% 468 413
Net finance costs
(21) (32)
Profit before tax 447 381
Tax (110) (88)
Profit after tax
337 293
*Basis of preparation – pro forma information
On 6 August 2014 an all-share Merger of Carphone Warehouse and Dixons Retail took place. The prior period information in the highlights and
performance review sections refers, unless otherwise stated, to pro forma Headline(1) information for continuing businesses, reflecting the results
of both Carphone Warehouse and Dixons Retail throughout the comparative periods as if the Merger had occurred at the start of the
comparative period.
Following the Merger, the Group changed its year end to be the Saturday closest to 30 April. The 2014/15 financial year as disclosed in the
2014/15 annual report and accounts therefore comprised the 13 months to 2 May 2015 for the Carphone Warehouse business. In this
Annual Report and Accounts, the pro forma prior period results of the Carphone Warehouse business have been restated to exclude the
results of the five weeks’ trading to 3 May 2014 to enable a better year-on-year comparison.
A reconciliation from statutory to pro forma financial information is provided on pages 151 to 152.
Notes
(1) Headline results exclude amortisation of acquisition intangibles, Merger integration and transaction costs, property rationalisation costs,
acquisition-related costs and other one-off, non-recurring items, net interest on defined benefit pension schemes and discontinued
operations (comprising Virgin Mobile France and Phone House operations in Germany, Netherlands and Portugal). Such excluded items are
described as ‘Non-Headline’. For further details see notes 4 and 25 to the financial statements.
(2) Pro forma EPS for the period ended 2 May 2015 has been calculated assuming the number of shares existing at 2 May 2015, adjusted for
the number of shares held by the Group ESOTs, were in existence for the entire financial period.
(3) Change in local currency revenue reflects total revenues on a constant currency and period basis.
(4) Like-for-like sales are defined in the glossary and definitions on pages 154 to 156.
(5) UK & Ireland comprises operations in the UK and Ireland and the Dixons Travel business.
(6) Nordics comprises operations in Norway, Sweden, Finland, Denmark, and Iceland.
(7) Southern Europe comprises operations in Spain and Greece.
(8) Connected World Services comprises the Group’s B2B operation which leverages the specialist skills, operating processes and technology
of the Group to provide managed services to third parties looking to develop their own connected world solutions.
(9) Free Cash Flow comprises cash generated from / (utilised by) continuing operations before special pension contributions, less net finance
expense, less income tax paid and net capital expenditure.
00_DC 2016 Annual Report.pdf 24 11/07/2016 18:34