Carphone Warehouse 2014 Annual Report Download

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Annual Report 2014

Table of contents

  • Page 1
    Annual Report 2014

  • Page 2
    ...Chief Executive Officer's statement Business evolution Business model Marketplace Strategy and KPIs Joint ventures Risk management Performance review Corporate responsibility CORPORATE GOVERNANCE 32 34 36 39 43 54 55 Board of directors Chairman's introduction Board committees Audit Committee report...

  • Page 3
    ... 2012 2013 2014 Connected World Services + Preferred-partner agreement to run Samsung Experience Stores across Europe + Developed honeyBee platform with Accenture VIRGIN MOBILE FRANCE + Creditable performance in tough trading environment + Exclusivity agreement reached in May 2014 for the sale of...

  • Page 4
    ... support from our highly trained Geek Squad agents; - insurance: providing protection from loss, theft or damage to customers' devices; and - repairs: largest in-house mobile phone repair facility in the UK and well-developed processes across Europe. 02 Carphone Warehouse Group plc Annual Report...

  • Page 5
    ... to operate Samsung Experience Stores across Europe. At 29 March 2014, CPW's own stores included 83 stores being managed on behalf of third parties. SERVICES AND SUPPORT HONEYBEE PLATFORM GLOBAL PARTNERSHIPS CONNECTED WORLD SERVICES PAGES 12-13 VIRGIN MOBILE FRANCE Carphone Warehouse Group plc has...

  • Page 6
    ...'s statement IN SUMMARY + Proposed all-share merger with Dixons Retail plc + Strong set of results from CPW, despite challenging conditions in parts of Mainland Europe + Key strategic developments with Connected World Services + Entered exclusivity agreement for proposed sale of Virgin Mobile France...

  • Page 7
    ...Group Headline net earnings from £55m to £102m and an increase in Headline EPS to 18.4p (2013: 11.6p). PERFORMANCE REVIEW PAGES 20-24 IT'S ALL ABOUT POSITIONING OUR BUSINESS IN THIS CHANGING WORLD AND ENSURING THAT WHAT WE DO IS RELEVANT FOR OUR CUSTOMERS Andrew Harrison Chief Executive Officer...

  • Page 8
    ...opportunities to create value for our employees, our customers, our partners and our shareholders. From a position of strength, we are planning to take advantage of these changes through our proposed merger. Andrew Harrison Chief Executive Officer 06 Carphone Warehouse Group plc Annual Report 2014

  • Page 9
    ... Europe Public Offering on 2000 Initial the main market of the London Stock Exchange of TalkTalk, 2003 Launch a new residential fixed line service provider Best Buy Mobile 2007 Launched in collaboration with Best Buy Buy acquired 50% of the 2008 Best Group's retail and distribution business...

  • Page 10
    STRATEGIC REPORT Business evolution: Connecting SOLUTIONS FOR A CONNECTED WORLD For the last 25 years Carphone Warehouse has been committed to making mobile technology available and accessible to everyone. Innovation in mobile technology has transformed our lives - the way we bank, shop, socialise...

  • Page 11
    ... the technology available, and the opportunity to obtain technical support through the business' Geek Squad service. DELIVERY CLICK AND COLLECT FREE NEXT DAY FREE NOMINATED DAY DELIVERY TRACKING SUPPORT GEEK SQUAD INSURANCE TECH SUPPORT REPAIRS Carphone Warehouse Group plc Annual Report 2014 09

  • Page 12
    ... customers looking to upgrade to 4G for the first time, it can be difficult working out how much data will be needed. Pin Point helps our customers assess their future usage, using simple illustrations, helping us to future-proof customer deals. 10 Carphone Warehouse Group plc Annual Report 2014

  • Page 13
    ... the success of the Best Buy Mobile SIS concept, by providing a specialist connected products and services proposition on behalf of retailers with larger store formats, who enjoy significant footfall but who lack expertise in the mobile field. Carphone Warehouse Group plc Annual Report 2014 11

  • Page 14
    ... connected world solutions. CWS already provides managed services to a number of businesses and is actively exploring further opportunities within existing markets and elsewhere. CONNECTED RETAILING IS A COMPLICATED BUSINESS...Selling connected devices requires a range of experience and processes...

  • Page 15
    ... + Trade-ins + Repairs + Delivery + Remote technical support + honeyBee assisted sales tool + Activation services + Web solutions + Data security suite + Customer relationship management + Commercial relationships + Scale advantages + Purchasing benefits Carphone Warehouse Group plc Annual Report...

  • Page 16
    ...Our long-term approach to investing creates a sustainable opportunity to continue to add value for a wide range of stakeholders, from our customers, through employees, communities, suppliers, partners, and fundamentally, for our shareholders. 14 Carphone Warehouse Group plc Annual Report 2014 ILI...

  • Page 17
    ... an incentive for customers to upgrade their services, providing a stimulus to the replacement cycle. 5-10X faster data speeds, compared to 3G 3-5X increase in data usage by 4G users 98% Source: Company estimates coverage in the UK during 2015 Carphone Warehouse Group plc Annual Report 2014 15

  • Page 18
    ... sales experience for our customers Launched the Geek Squad quick-start self-help programme on our GeekSquad.co.uk website, offering free technology advice Developed a number of new insurance propositions for our customers, including multi-policy discounts Continued to improve customer service...

  • Page 19
    ... Continue to develop honeyBee to enable deployment to third parties Focus on developing retail partnerships in target markets outside our existing retail footprint 7.8 6.5 5.0 3.6 -2.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 3.1 2.3 2012-13 2013-14 Carphone Warehouse Group plc Annual Report 2014 17

  • Page 20
    ... member of the Old Carphone Warehouse board before leaving to set up this venture, in which he is also a minority shareholder. Pascal joined Virgin Mobile France in 2010 having previously worked at SAP, SFR and Xerox. A shareholder board meets formally on a regular basis to agree strategy and review...

  • Page 21
    ... in a number of areas, including insurance operations, information security and customer management. Non-compliance with regulation could result in financial loss and/or reputational damage to the business. The business has internal committees and control structures to manage these requirements, to...

  • Page 22
    STRATEGIC REPORT Performance review THE BUSINESS DELIVERED ITS EARNINGS TARGET, DESPITE MARKET CHALLENGES Nigel Langstaff Chief Financial Officer IN SUMMARY + 59% growth in Headline EPS, following CPW Europe Acquisition + Strong operating cash flow CPW HEADLINE INCOME STATEMENT (PRO FORMA BASIS)*...

  • Page 23
    ..., which will support the continued development of both our retail and Connected World Services businesses. LIKE-FOR-LIKE Like-for-like revenue compares year-on-year revenue generated from sales in store, internet sales and telesales, using constant exchange rates. New stores are included once...

  • Page 24
    ... £m 2013 £m Revenue EBITDA Depreciation and amortisation EBIT EBIT % Interest PBT Tax PAT Group share * See note 24 to the Group financial statements. 346 13 (10) 3 0.7% (1) 2 (1) 1 - 385 20 (8) 12 3.1% (1) 11 (4) 7 3 EBITDA Working capital Capex Operating free cash flow Other Movement in net...

  • Page 25
    ..., offset by working capital movements in France, tax and interest payments, and the purchase of the Group's own shares. Other cash flows in the prior period reflect exceptional cash costs associated with Best Buy UK, offset by EBITDA from the French business, and other cash flows reported by the...

  • Page 26
    .... 2014 2013 Headline KPIs ROCE EPS Dividends for the year 11.1% 18.4p 6.00p 8.0% 11.6p 5.00p The improvement in return on capital employed and EPS principally reflects the CPW Europe Acquisition, which was accretive to the Group's earnings. 24 Carphone Warehouse Group plc Annual Report 2014

  • Page 27
    ...RESPONSIBILITY For 25 years, we have been connecting people, adapting and evolving the business to add value for customers and shareholders. Our corporate mission statement, 'We exist to make more lives better through connected technology', helps to define our role as a retailer in a unique position...

  • Page 28
    ....GETCONNECTED.ORG.UK Support Centre colleagues on Game Changing Day. Get Connected launched a new smartphone app during the year, placing its service directly into the hands of young people in need. THE CARPHONE WAREHOUSE FOUNDATION The Carphone Warehouse Foundation supports employees with their...

  • Page 29
    ... their needs to companies ready to help financially or through volunteering programmes. For 2013-14, we pledged £25,000 and 2,500 volunteering hours to help support local causes through Neighbourly. FOR MORE INFORMATION WWW.NEIGHBOURLY.COM Carphone Warehouse Group plc Annual Report 2014 27

  • Page 30
    ...old components. The business offers a trade-in service whereby customers can trade in old devices for cash. If the device doesn't have a trade-in value, it is recycled under the Take Back scheme mentioned above. Methodology The methodology used to calculate emissions is based on the World Business...

  • Page 31
    ... lifestyles. Race to Fitness is a 25 week programme where employees exchange training tips, 'ask the experts' and take part in running clubs and local well-being initiatives. Employees get in training as part of our Race to Fitness campaign. Carphone Warehouse Group plc Annual Report 2014 29

  • Page 32
    ... rights impacts. DIVERSITY OF OUR BUSINESS THROUGH TALENT GROWTH THIS STRATEGIC REPORT was approved by the Board on 25 June 2014 and is signed on its behalf by: Andrew Harrison Chief Executive Officer Nigel Langstaff Chief Financial Officer 30 Carphone Warehouse Group plc Annual Report 2014

  • Page 33
    ... CORPORATEGOVERNANCE GOVERNANCE CORPORATE GOVERNANCE 32 34 36 39 43 54 55 Board of directors Chairman's introduction Board committees Audit Committee report Remuneration report Other statutory information Statement of directors' responsibilities Carphone Warehouse Group plc Annual Report 2014 31

  • Page 34
    ... in his current role since 24 July 2013. From January 2010 to 24 July 2013 he was Chief Executive Officer of Carphone. During this time he was responsible for new business development, strategic initiatives and investor relations. He was chief financial officer of Old Carphone Warehouse from 2000...

  • Page 35
    ... the London Stock Exchange. John Allwood is also the Senior Independent Director. N A R GERRY MURPHY NON-EXECUTIVE DIRECTOR Gerry is a former Deloitte LLP partner and was leader of its Professional Practices Group with direct industry experience in consumer business, retail and technology, media...

  • Page 36
    ...MURPHY (FROM 2 APRIL 2014) Since 28 October 2013 the Company has held a premium listing on the main market of the London Stock Exchange, and as such is required to comply with the UK Corporate Governance Code (the "Code") published by the UK Financial Reporting Council. The Board is committed to the...

  • Page 37
    ... media used to impart information to shareholders are news releases (including results announcements), investor presentations and Company publications. The Chief Executive Officer has lead responsibility for investor relations. He is supported by a dedicated investor relations department...

  • Page 38
    ...other commitments of directors relative to the time required for them to fulfil their duties; + evaluating the skills, knowledge and experience of the Board; and + making recommendations to the Board. The terms of reference of the Nomination Committee are available on the Group's website (www.cpwplc...

  • Page 39
    ... benefit structures; and + approving employee share-based incentive schemes and associated performance conditions and targets. The terms of reference of the Remuneration Committee are available on the Group's website (www.cpwplc.com) or on request from the Company Secretary. CORPORATE GOVERNANCE...

  • Page 40
    ... relating to the Group's financial performance; + advising the Board on whether, as a whole, the annual report is fair, balanced and understandable; + reviewing significant financial reporting judgements; + reviewing the Group's financial controls and internal control and risk management systems...

  • Page 41
    ...in relation to the 2013-14 financial statements, and how these were addressed, are set out in the following table: CORPORATE GOVERNANCE SIGNIFICANT ISSUES AND AREAS OF JUDGEMENT Revenue recognition HOW THE ISSUE WAS ADDRESSED BY THE COMMITTEE As set out in note 1 to the Group financial statements...

  • Page 42
    ...to executive management the responsibility for designing, operating and monitoring these systems. The systems are based on a process of identifying, evaluating and managing significant risks and include the risk management processes set out above. 40 Carphone Warehouse Group plc Annual Report 2014

  • Page 43
    ... this report were in place throughout the year and up to the date of approval of the annual report and financial statements. The effectiveness of these systems is periodically reviewed by the Audit Committee in accordance with the UK Corporate Governance Code, Internal Control: Guidance to Directors...

  • Page 44
    ... for joint ventures was £0.1m (2013: £0.5m) and the Group's share of their fees for tax and other services was £0.1m (2013: £0.2m). Fees paid in relation to non-audit services primarily related to the CPW Europe Acquisition, in respect of which the external auditors acted as reporting accountant...

  • Page 45
    ... of delivering across a balanced set of metrics to ensure the right behaviours are adopted and the long-term health of the business is protected; and + encourage management to have a significant personal stake in the long-term success of the business. Carphone Warehouse Group plc Annual Report 2014...

  • Page 46
    ... offered to executive directors are summarised in the following table: ELEMENT Base salary (fixed) PURPOSE AND LINK TO STRATEGY OPERATION To aid the recruitment, retention and motivation of high-performing people. To reflect their experience and importance to the business. Reviewed annually...

  • Page 47
    ... AND LINK TO STRATEGY OPERATION Annual performance bonuses are in place to incentivise the delivery of stretching, near-term business targets based on our business strategy. These bonuses provide a strong link between reward and performance and drive the creation of further shareholder value. The...

  • Page 48
    ...Earn scheme was introduced in the UK in December 2013 and a comparable scheme will be launched in Ireland in due course. The performance of the scheme will be determined by the share price of the Company at the end of the relevant savings period. 46 Carphone Warehouse Group plc Annual Report 2014

  • Page 49
    ... with any forfeited awards while retaining the discretion to make any payment or award deemed necessary and appropriate. The Committee may also require the appointee to purchase shares in the Company in accordance with its shareholding policy. Carphone Warehouse Group plc Annual Report 2014 47

  • Page 50
    ... to, relocation payments, housing allowances and cost of living allowances. + In line with the Policy Table. Restrictive covenants Variable elements Annual remuneration Salary Salary progression Pension Benefits and allowances Variable pay 48 Carphone Warehouse Group plc Annual Report 2014

  • Page 51
    ... appointment substantially in the form suggested by the Code. The Company has no age limit for directors. Any changes to service contracts and appointment letters, including fees, following the Merger will be set out in next year's annual report. Carphone Warehouse Group plc Annual Report 2014 49

  • Page 52
    ...240 317 293 325 74 81 60 - - 8 5 10 - - - - - 15 7 16 - - - - - 339 - 375 - - - - 240 679 305 726 74 81 60 - * Andrew Harrison joined the board on 1 August 2013. His remuneration presented above is for the period for which he was a director. 50 Carphone Warehouse Group plc Annual Report 2014

  • Page 53
    ... new incentive schemes during the year, information on which is provided on page 47. Details of the Carphone Warehouse Share Plan and Carphone Warehouse Share Scheme and the grants made to Andrew Harrison and Nigel Langstaff are set out in the Policy Table. Carphone Warehouse Group plc Annual Report...

  • Page 54
    ... 2013-14 financial year compared with the prior year for the Company's Chief Executive Officer and for all UK head office-based employees is shown below. Changes in salary relating to changes in roles and/or responsibilities have been excluded from the increase presented for the wider group in order...

  • Page 55
    ... because that company is not part of the current Group. Details of remuneration associated with Old Carphone Warehouse incentive schemes were provided in the Company's annual report for the year ended 31 March 2012. Future reports will include long-term incentives operated by the current Group when...

  • Page 56
    ... to take account of the timing of acquisitions, was 59 days. Trade payables were not material at 31 March 2013. SIGNIFICANT SHAREHOLDINGS At 25 June 2014, the Company had been notified, in accordance with Chapter 5 of the Disclosure and Transparency Rules of the UK Financial Conduct Authority...

  • Page 57
    ... and provide the information necessary for shareholders to assess the Company's performance, business model and strategy. By order of the Board on 25 June 2014 Andrew Harrison Chief Executive Officer Nigel Langstaff Chief Financial Officer Carphone Warehouse Group plc Annual Report 2014 55

  • Page 58
    ... 61 Consolidated statement of changes in equity 62 Consolidated balance sheet 63 Consolidated cash flow statement 64 Notes to the Group financial statements 97 Five-year record 98 Company balance sheet 99 Notes to the Company financial statements 56 Carphone Warehouse Group plc Annual Report 2014

  • Page 59
    ...goodwill, primarily arising from the CPW Europe Acquisition, is a judgemental process which requires estimates concerning the future cash flows and associated discount rates and growth rates based on management's view of future business prospects. Carphone Warehouse Group plc Annual Report 2014 57

  • Page 60
    ..., or returns adequate for our audit have not been received from branches not visited by us; or - the Company financial statements are not in agreement with the accounting records and returns. We have nothing to report in respect of these matters. 58 Carphone Warehouse Group plc Annual Report 2014

  • Page 61
    ... required to review the part of the Corporate Governance Statement relating to the Company's compliance with nine provisions of the UK Corporate Governance Code. We have nothing to report arising from our review. OUR DUTY TO READ OTHER INFORMATION IN THE ANNUAL REPORT Under International Standards...

  • Page 62
    ... and to classify the results of Virgin Mobile France as discontinued operations. A reconciliation of Headline results to statutory results is provided in note 8. The accompanying notes are an integral part of this consolidated income statement. 60 Carphone Warehouse Group plc Annual Report 2014

  • Page 63
    ...At the beginning of the year Net profit for the year Other comprehensive income (expense) Issue of shares Net purchase of own shares Equity dividends Tax on items recognised directly through reserves At the end of the year for the year ended 31 March 2013 1 1 170 - - 113 - - - 283 1,238 48 2 103...

  • Page 64
    ... 2013 2014 £m 2013 £m Notes Non-current assets Goodwill Intangible assets Property, plant and equipment Trade and other receivables Interests in joint ventures Deferred tax assets 10 10 11 14 24 7 481 136 90 191 - 54 952 Current assets Stock Trade and other receivables Assets held for sale Cash...

  • Page 65
    ... Profit on disposal of property, plant and equipment Operating cash flows before movements in working capital Decrease in trade and other receivables Decrease in stock Increase in trade and other payables Decrease in provisions Cash flows from operating activities Taxation paid Net cash flows...

  • Page 66
    ...financial statements includes the Group's policies and processes for managing its exposure to liquidity risk. In their consideration of going concern, the directors have reviewed the Group's future cash forecasts and profit projections, which are based on market data and past experience. This review...

  • Page 67
    ... 1.19 9.91 d) REVENUE All revenue is stated net of VAT and other sales-related taxes. The following accounting policies are applied to the various revenue-generating activities in which the Group is engaged: - revenue arising on the sale of mobile and other products and services is recognised when...

  • Page 68
    ...cash flows are less than the carrying value of goodwill, an impairment charge is recognised in the income statement. On disposal of subsidiary undertakings and businesses, the relevant goodwill is included in the calculation of the profit or loss on disposal. 66 Carphone Warehouse Group plc Annual...

  • Page 69
    ... and fair value less costs to sell. Any impairment loss on a non-current asset or disposal group is allocated first to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is booked to stock, financial assets, deferred tax assets, employee benefits...

  • Page 70
    ... Group financial statements continued 1 ACCOUNTING POLICIES continued p) STOCK Stock is stated at the lower of cost and net realisable value. Cost, net of discounts and volume bonuses from product suppliers (see note 1d), includes all direct costs incurred in bringing stock to its present location...

  • Page 71
    ... these standards, amendments or interpretations will be performed in due course; however the directors do not currently expect that they will have a material impact on the financial statements of the Group in future periods. FINANCIAL STATEMENTS Carphone Warehouse Group plc Annual Report 2014 69

  • Page 72
    ... with the management structure of the Group, and the way in which information is reported to the Board. Connected World Services, our B2B business, is not considered to be a separate segment since its operations are currently integrated with those of our retail business in each market, and are...

  • Page 73
    ... * Non-Headline revenue of £71m (2013: nil) relates to French retail operations, which are in the process of closure. ii) Non-current assets 2014 £m 2013 £m United Kingdom Netherlands Spain Germany Other 779 60 60 26 27 952 552 - - - 13 565 Carphone Warehouse Group plc Annual Report 2014 71

  • Page 74
    ...share of fees for their tax and other services was £0.1m (2013: £0.2m). Other assurance services for the year ended 29 March 2014 relate primarily to the CPW Europe Acquisition, in respect of which the external auditors acted as reporting accountant. 72 Carphone Warehouse Group plc Annual Report...

  • Page 75
    ...: 2014 £m Restated 2013 £m FINANCIAL STATEMENTS Notes Continuing operations Revenue: French operations Cost of sales: French operations Operating expenses: French operations CPW Europe Acquisition Amortisation of acquisition intangibles Share of results of joint ventures (post-tax): French...

  • Page 76
    ..., against which a tax credit of £3m has been recognised. Amortisation in the prior year within discontinued operations relates to acquisition intangibles within Virgin Mobile France which arose on the acquisition of Tele2 France in December 2009. 74 Carphone Warehouse Group plc Annual Report 2014

  • Page 77
    ... tax arising on the exercise of share options that vested as part of the CPW Europe Acquisition. In addition, loans were advanced to members of key management in relation to the Carphone Warehouse Share Plan. At 29 March 2014 loans to key management in relation to these schemes totalled £10m (2013...

  • Page 78
    ... France has issued market-priced and nil-priced share options in Virgin Mobile France to certain employees of the business. These options vest over periods of two to four years. v) FAIR VALUE MODEL The fair value of options with external performance targets was estimated at the date of grant using...

  • Page 79
    ... enacted on 2 July 2013, further reducing the standard rate of UK corporation tax from 23% to 21% with effect from 1 April 2014, and from 21% to 20% from 1 April 2015. The reduced rates have been reflected in the calculation of deferred tax. Carphone Warehouse Group plc Annual Report 2014 77

  • Page 80
    ... EFFECTIVE TAX RATE The Group's effective rate of tax before non-Headline items for the year ended 29 March 2014 is 20%. The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax of 23% (2013: 24%) to profit (loss...

  • Page 81
    ...Profit (loss) Profit (loss) from from continuing discontinued operations operations £m £m Net profit (loss) for the year £m FINANCIAL STATEMENTS Headline results Share of joint venture exceptional items (post-tax)* French operations (in process of closure)* Share of discontinued joint venture...

  • Page 82
    ... to the Group's cash generating units ("CGUs") which were expected to benefit from the acquisition, based on value in use calculations. At 29 March 2014 goodwill was allocated to CGUs as follows: £m UK Netherlands Spain Ireland 406 36 31 8 481 80 Carphone Warehouse Group plc Annual Report 2014

  • Page 83
    ... from value in use calculations or fair market value as appropriate. The Group prepared cash flow forecasts derived from the most recent financial budgets and long-term plans approved by management and extrapolated cash flows in perpetuity based on country-specific growth rates. The cash flow...

  • Page 84
    ...GEAB The Phone House AB The Carphone Warehouse Limited The Phone House Comercio e Aluguer de bens e Serviços Lda New Technology Insurance ISE-Net Solutions Limited New CPW Limited* Carphone Warehouse Europe Limited * Held directly by the Company. England and Wales Spain Germany Germany Netherlands...

  • Page 85
    ... Trade and other receivables are discounted using discount rates which reflect the relevant costs of financing when the receivable is recognised, where the time value of money is considered to be material. The Group's gross trade receivables are denominated in the following currencies: 2014 £m 2013...

  • Page 86
    ... 113 982 - 17 565 166 11 127 869 1 15 1 - 17 Non-current trade and other payables relate principally to property leases that are deemed to be over-rented. These liabilities are unwound over the period of the relevant lease, of up to 22 years. 84 Carphone Warehouse Group plc Annual Report 2014

  • Page 87
    ... consideration arose on the CPW Europe Acquisition and is payable to Best Buy in two equal instalments of £25m due in June 2014 and June 2015. These amounts bear interest at 2.5% per annum. 18 PROVISIONS Reorganisation £m Sales £m Other £m Total £m FINANCIAL STATEMENTS Balance at 1 April 2012...

  • Page 88
    ... 2013 £m CPW Europe Acquisition £m Cash flows £m Cash and cash equivalents 117 117 - - (271) (3) (274) (274) 166 166 (19) 2 (17) 149 283 283 (290) (1) (291) (8) Loans and other borrowings Finance lease obligations Net funds (debt) - - - 117 86 Carphone Warehouse Group plc Annual Report...

  • Page 89
    ... Group placed 47.2m ordinary shares at 222 pence per share, raising net proceeds of £103m which were used to fund part of the consideration for the CPW Europe Acquisition. On 25 June 2013 the Group issued 42.1m Consideration Shares to Best Buy. Best Buy agreed to waive rights to dividends payable...

  • Page 90
    ...2014 of 4.00p per ordinary share The proposed final dividend for the year ended 29 March 2014 is subject to shareholders' approval at the forthcoming annual general meeting and has not been included as a liability in these financial statements. 23 88 Carphone Warehouse Group plc Annual Report 2014

  • Page 91
    ... retail stores, principally under the Carphone Warehouse and Phone House brands, together with well-developed online propositions. CPW Europe is also increasingly focused on leveraging its assets and expertise to provide services to third parties through its Connected World Services business...

  • Page 92
    ... in joint ventures are as follows: Business Principal activities Country of incorporation 2014 interest 2013 interest CPW Europe Virgin Mobile France Retail, distribution, insurance, telecoms services MVNO England and Wales England and Wales n/a 46.3% 50.0% 46.3% The Group acquired Best Buy...

  • Page 93
    ...- FINANCIAL STATEMENTS - - - 2013 Goodwill £m Loans £m Total £m Opening balance Share of results Loans repaid (net) Share of other reserve movements Foreign exchange Closing balance CPW Europe Virgin Mobile France Closing balance b) ASSETS HELD FOR SALE The Group's assets held for sale are...

  • Page 94
    ...the Group financial statements continued 24 INTERESTS IN JOINT VENTURES AND ASSETS HELD FOR SALE continued c) ANALYSIS OF PROFITS AND LOSSES The Group's share of the results of its joint ventures within continuing operations is as follows: Period ended 26 June 2013 £m Restated 2013* £m CPW Europe...

  • Page 95
    ... had no capital commitments at the end of either year. 2014 £m 2013 £m FINANCIAL STATEMENTS Total Group share of net (liabilities) assets of joint ventures (7) 414 25 FINANCIAL RISK MANAGEMENT AND DERIVATIVE FINANCIAL INSTRUMENTS Financial instruments that are measured at fair value in the...

  • Page 96
    ...exchange contracts Interest rate swaps Loans and other borrowings Deferred consideration Trade and other payables (1) (68) (1) 68 - (8) (25) (869) - - - - 1 (32) (25) - - - - - 3 (56) - - - - - - - (215) - - (1) (68) (1) 68 4 (311) (50) (869) 94 Carphone Warehouse Group plc Annual Report 2014

  • Page 97
    ...wholly owned operations in France. All transactions entered into with related parties were completed on an arm's length basis. 27 CAPITAL COMMITMENTS 2014 £m 2013 £m Expenditure contracted, but not provided for in the financial statements - - Carphone Warehouse Group plc Annual Report 2014 95

  • Page 98
    ... Group financial statements continued 28 OPERATING LEASES a) LEASES AS LESSEE The Group leases a number of retail units and offices under operating leases. The leases have varying terms, purchase options, escalation clauses and renewal rights. i) FUTURE MINIMUM LEASE PAYMENTS At 29 March 2014, the...

  • Page 99
    ... Group throughout the current and preceding periods. The financial results for the periods prior to the Demerger have been prepared on the basis that the structure of the Group at Demerger had been in place for the duration of all periods reported. Carphone Warehouse Group plc Annual Report 2014...

  • Page 100
    ... Profit and loss account Capital redemption reserve Total capital employed The accompanying notes are an integral part of this Company balance sheet. The financial statements of the Company on pages 98 to 103 were approved by the Board on 25 June 2014 and signed on its behalf by: Andrew Harrison...

  • Page 101
    ... accounting policies have been applied consistently throughout both years. b) INVESTMENTS Investments held in subsidiaries and joint ventures are recognised at cost, being the fair value of consideration, acquisition charges associated with the investment and capital contributions by way of share...

  • Page 102
    ... Limited disposed of its investment property in Acton, London, for £40.5m in cash. Following this transaction the net assets of CPW Acton One Limited fell below the value of the Company's investment in that company, resulting in an impairment. 100 Carphone Warehouse Group plc Annual Report 2014

  • Page 103
    ... 2014 £m Opening balance Utilised in the year Released in the year Closing balance 8 LOANS PAYABLE 6 (4) - 2 2014 £m 9 - (3) 6 2013 £m Loans payable 290 290 - - Details of loans payable are provided in note 19 to the Group financial statements. Carphone Warehouse Group plc Annual Report...

  • Page 104
    ...(4) (33) (23) 590 - 705 557 - 33 - (590) - - 936 (4) (33) (23) - - 876 Note 20 to the Group financial statements provides further details of the issue of shares. For details of the Company's equity dividends and other distributions see note 3. 102 Carphone Warehouse Group plc Annual Report 2014

  • Page 105
    ... France £m CPW Europe £m 2013 Virgin Mobile France £m FINANCIAL STATEMENTS Net interest and other finance income Loans owed to the Company Other amounts owed to the Company Other amounts owed by the Company - - - - 1 18 - - - - - (6) 1 20 - - Carphone Warehouse Group plc Annual Report 2014...

  • Page 106
    ... information Carphone Warehouse is listed on the main market of the London Stock Exchange (stock symbol: CPW). It became eligible for FTSE UK index series inclusion during December 2013 and is a constituent of the FTSE 250. REGISTRAR EQUINITI LIMITED REGISTERED OFFICE/HEAD OFFICE 1 Portal Way...

  • Page 107
    ... of working capital, used as a measure of operating cash generation. The Carphone Warehouse Group plc Participation Plan 2011. Profit after taxation. ARPU B/C SHARE SCHEME BEST BUY BEST BUY EUROPE BEST BUY JOINT VENTURE TRANSACTION BEST BUY MOBILE NPS OLD CARPHONE WAREHOUSE BEST BUY MOBILE...

  • Page 108
    ... waste associated with this production will be recycled. This document is printed on Challenger Offset, a paper containing 100% Environmental Chlorine Free (ECF) virgin fibre sourced from well-managed, responsible, FSC® certified forests. Carphone Warehouse Group plc 1 Portal Way, London W 3 6RS...