Carphone Warehouse 2016 Annual Report Download - page 31

Dixons Carphone plc Annual Report and Accounts 2015/16
Strategic Report
29
Comprehensive income / changes in equity
Total equity of the Group has increased from £2,763 million to
£2,860 million primarily reflecting the total statutory profit of
£161 million, the gain on retranslation of overseas operations
of £66 million and the payment of dividends of £106 million.
Other matters
Pensions
The IAS 19 accounting deficit of the defined benefit section
of the UK pension scheme of Dixons Retail amounted to
£472 million at 30 April 2016 compared to £486 million at
2 May 2015. Contributions during the period under the
terms of the deficit reduction plan amounted to £35 million
(2014/15: £28 million). The deficit has decreased largely as a
result of the contributions made to the scheme during the year.
Dividends
The Board declared an interim dividend of 3.25p per share, up
from 2.50p per share last year. The interim dividend was paid
on 22 January 2016.
We are proposing a final dividend of 6.50p per share, taking
the total dividend for the year to 9.75p per share, a 15%
increase on the previous year (2014/15: 8.50p). The final
dividend is subject to shareholder approval at the Company’s
forthcoming Annual General Meeting. The ex-dividend date is
25 August 2016, with a record date of 26 August 2016 and an
intended final dividend payment date of 23 September 2016.
Going concern
A review of the Group’s business activities, together with the
factors likely to affect its future development, performance and
position, are set out within this Strategic Report, including the
risk management section. The financial position of the Group,
its cash flows, liquidity position and borrowing facilities are
shown in the balance sheet, cash flow statement and
accompanying notes to the Group financial statements.
The directors have reviewed the future cash and profit
forecasts of the Group, which they consider to be based on
prudent assumptions. Based on these forecasts, the directors
consider that it is appropriate to prepare the Group financial
statements on the going concern basis.
Viability statement
In accordance with provision C.2.2 of the UK Corporate
Governance Code 2014, the Directors have assessed the
viability of the Group over a period longer than the 12 months
covered by the going concern provision noted above.
The Board concluded that a period of three years was
appropriate for this assessment as it is consistent with the
period of focus of the annual strategic plan and reflects a
period of greater certainty over forecasting assumptions.
In assessing the viability of the Group, the Directors have
considered the Group’s current position and prospects, risk
appetite, and those principal risks and mitigating actions as
described on pages 20 to 23 of the Strategic Report.
The strategic plan considers the forecast revenue,
EBITDA, working capital, cash flows and funding requirements
on a business by business basis as well as the available
borrowing facilities to the Group over the assessment period
and the financial covenants with which those facilities must
comply. The strategic plan has been subject to robust stress
testing, modelling the impact of a combination of severe but
plausible adverse scenarios based on those principal risks
facing the Group.
Based on the results of this analysis, the directors have an
expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the
three-year period of their assessment. In doing so, it is
recognised that such future assessments are subject to
a level of uncertainty and as such, future outcomes cannot
be guaranteed or predicted with certainty.
Humphrey Singer
Group Finance Director
28 June 2016
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