TIDMJQV
RNS Number : 7547J
Jacques Vert PLC
05 July 2011
DATE: Embargoed until 07.00am, 5 July 2011
CONTACTS: Paul Allen, Chief Executive
Ian Johnson, Group Finance Director
Jacques Vert Plc
Tel: 08700 345636
Alistair Mackinnon-Musson
Nathan Field
Hudson Sandler
Tel: 020 7796 4133
Email: jacquesvert@hspr.com
Photographs available: Please contact Hudson
Sandler, as above
JACQUES VERT PLC
PRELIMINARY RESULTS
Jacques Vert Plc, the womenswear clothing retailer, is pleased
to announce its Preliminary results for the 53 weeks ended 30 April
2011, together with an update on trading for the nine weeks since
that date.
The Group retails four womenswear brands: Jacques Vert,
Windsmoor, Planet and Precis. Sales are made predominantly in the
UK, Canada and Ireland through circa 870 outlets and through the
Group's own website and third party websites.
The key points are:
o Retail sales up 2.6% to GBP118.4m (2010: GBP115.3m)
o Like for like sales up 2.0%
o Gross margin of 62.8% (2010: 63.7%)
o Profit before tax up 3.1% to GBP5.3m (2010: GBP5.1m)
o Dividend proposed of 0.67 pence per share representing an
increase of 3%
o Year end cash of GBP10.1m (2010: GBP12.6m)
o Net assets of GBP25.5m (2010: GBP23.4m)
o On a like for like basis, retail sales in the nine weeks since
30 April 2011 were 1.7% higher than the same period in the prior
year.
Commenting, Steve Bodger, Chairman, said: "With positive like
for like sales, our brands have performed well in what has been a
difficult trading environment. Operationally, we have taken
significant steps forward and are well positioned for the future.
Although we have made a good start to the new financial year we
remain cautious for the year as a whole.
"Our return to the dividend list last year after such a long
absence, was well received so I am very pleased we are proposing a
higher payment this year".
CHAIRMAN'S STATEMENT
The trading environment has been difficult over the last year
which has affected most areas of the retail market and against that
background I believe that our brands have performed well.
Profit before tax for the year of GBP5.3m compares with a profit
of GBP5.1m in the prior year. We have made pleasing progress in
developing the ecommerce business and it is also worth noting the
Jacques Vert and Precis brands have both performed particularly
strongly. Our international business also delivered encouraging
growth.
On the operational front we have taken significant steps forward
and the ongoing investment programme in new systems and
infrastructure will position us well for the future.
The return to the dividend list last year was well received by
shareholders and I am pleased to report the Board is proposing an
increased final dividend of 3% to 0.67p per share in respect of the
year ended 30 April 2011.
I believe that this financial year will be challenging but I am
pleased with the start we have made and I am confident that the
business is well positioned to benefit from any improvement in the
market.
Finally, I would like to extend my thanks on behalf of the Board
to all our staff for their contribution and support through the
year.
Steve Bodger
Chairman
5 July 2011
CHIEF EXECUTIVE'S STATEMENT
Group operating profit for the 53 weeks ended 30 April 2011 was
GBP5.4m (2010: GBP5.3m). Profit before tax was GBP5.3m (2010:
GBP5.1m), an increase of 3.1%.
Against a backdrop of an unpredictable retail climate the
business has performed well. Total sales for the year at GBP118.4m
(2010: GBP115.3m) were 2.6% ahead of last year. Like for like sales
were 2.0% ahead of last year.
At the end of the year the Group operated from 874 outlets
compared with 960 outlets at the beginning of the year.
One of the features of the current retail market, which has
become increasingly apparent as the year has progressed, is the
level and frequency of markdown activity which has had a negative
impact on gross margins. In addition, as noted at the time of the
Interim statement, gross margin is also being eroded by supplier
cost inflation. The cumulative effect of these factors has resulted
in gross margin declining slightly to 62.8% (2010: 63.7%).
Distribution costs, which comprise mainly of the costs of
operating stores, were GBP58.3m (2010: GBP56.9m).
Administrative expenses at GBP10.6m (2010: GBP11.3m) have
declined by 6% compared to the prior year. The higher level of
administrative expenses in the prior year was due to significant
one off costs and the level of expense in the current year reflects
a more normal level of activity.
Cash and financing
Cash at the year end amounted to GBP10.1m (2010: GBP12.6m). The
Group has embarked on a significant investment programme to replace
its IT and ecommerce systems and to invest in the retail estate. As
a result, capital expenditure in the year amounted to GBP2.9m
(2010: GBP1.1m). In addition there was a further outflow of GBP2.3m
during the year relating to the payment of a dividend to
shareholders (the first since 1995) together with a purchase of
shares on behalf of the ESOP Trust of GBP1.1m.
Working capital requirements also increased during the year to
support the increase in trading and in particular the investment in
stock for ecommerce.
Current trading and prospects
Sales since the year end have continued to be unpredictable and
it has been difficult to discern a particular trend and as a result
we are cautious about the outlook for this financial year. The
Group has, however, made an encouraging start to the new financial
year and sales in the nine weeks since the year end have increased
by 1.7% on a like for like basis. Gross margin is marginally lower
than last year, primarily due to ongoing cost pressures from
suppliers. We continue to re-evaluate our supply base and the wider
supply chain in an effort to improve margins.
Despite the challenging market conditions we are well placed for
the new financial year; the new Jacques Vert Autumn/Winter 2011
collections have been well received by customers, we have secured
new premium concession space in host stores and believe there are
further opportunities to develop our ecommerce business both in the
UK and internationally. In addition, when the new systems
implementation has been completed it will open up opportunities to
improve significantly the operating effectiveness of the business,
although the benefits will not be seen until the next financial
year.
Paul Allen
Chief Executive
5 July 2011
Group income statement
For the 53 weeks ended 30 April 2011
53 weeks 52 weeks
ended 30 ended 24
April April
2011 2010
Total Total
Note GBP000 GBP000
Continuing operations
Revenue 118,371 115,320
Cost of sales (44,003) (41,815)
Gross profit 74,368 73,505
Operating expenses
Distribution costs (58,346) (56,856)
Administrative expenses (10,638) (11,302)
Operating profit 5,384 5,347
Finance income 2a 118 19
Finance costs 2b (224) (247)
Profit before income
tax 5,278 5,119
Income tax expense 3 (281) (150)
Profit for the year attributable
to equity holders of the
Group 4,997 4,969
=========== ==========
Earnings per share for profit
attributable to the equity
holders of the Group during
the year
Basic earnings per share 4 2.69p 2.60p
=========== ==========
Diluted earnings per share 4 2.55p 2.51p
=========== ==========
Group statement of comprehensive income
For the 53 weeks ended 30 April 2011
53 weeks ended 52 weeks ended
30 April 2011 24 April 2010
GBP000 GBP000
Profit for the year 4,997 4,969
Actuarial gain / (loss) arising
in defined benefit pension schemes 67 (108)
Cash flow hedges (618) (2,102)
Currency translation differences (355) 330
Other comprehensive expenses for
the year, net of tax (906) (1,880)
Total comprehensive income for the
year attributable to equity holders
of the Group 4,091 3,089
============== ==============
Group statement of changes to equity
For the 53 weeks ended 30 April 2011
Share Share Merger Hedge Translation Retained Total
capital premium Reserve reserve reserve earnings equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Balance at
25 April
2009 19,244 4,599 969 2,056 246 (6,973) 20,141
Profit for the
year - - - - - 4,969 4,969
Actuarial loss
on pension
schemes - - - - (108) (108)
Net change in
fair value of
cash flow
hedges - - - (3,037) - - (3,037)
Fair value of
cash flow
hedges
transferred
to
inventories - - - 935 - - 935
Exchange rate
movements - - - - 330 - 330
------- ------- ------- ------- ----------- -------- -------
Total
comprehensive
income for
the 52 weeks
to 24 April
2010 - - - (2,102) 330 4,861 3,089
Adjustment for
employee
share
schemes - - - - - 243 243
Purchase of
shares in
ESOP - - - - - (63) (63)
Balance at 24
April 2010 19,244 4,599 969 (46) 576 (1,932) 23,410
Profit for the
year - - - - - 4,997 4,997
Actuarial gain
on pension
schemes - - - - - 67 67
Net change in
fair value of
cashflow
hedges - - - (1,146) - - (1,146)
Fair value of
cash flow
hedges
transferred
to
inventories - - - 528 - - 528
Exchange rate
movements - - - - (355) - (355)
------- ------- ------- ------- ----------- -------- -------
Total
comprehensive
income for
the 53 weeks
to 30 April
2011 - - - (618) (355) 5,064 4,091
Dividend
relating to
2010 - - - - - (1,196) (1,196)
Adjustment for
employee
share
schemes - - - - - 278 278
Purchase of
shares in
ESOP - - - - - (1,055) (1,055)
Balance at 30
April 2011 19,244 4,599 969 (664) 221 1,159 25,528
======= ======= ======= ======= =========== ======== =======
The merger reserve arose on business combination prior to
transition to IFRS which had been accounted for according to the
provisions of merger accounting.
The hedge reserve reflects the fair value of effective cash flow
hedges, deferred in equity under the provisions of hedge
accounting, less amounts recognised in hedged inventories, received
prior to the year end.
The translation reserve reflects the cumulative movement in the
value of foreign denominated subsidiaries in the financial
statements from fluctuations in exchange rates.
Group balance sheet
At 30 April 2011
30 April 24 April
2011 2010
Note GBP000 GBP000
Non current assets
Goodwill 2,431 2,431
Property, plant and equipment 5,087 3,175
Deferred tax asset 1,900 1,900
9,418 7,506
------------ ------------
Current assets
Inventories 24,580 22,489
Trade and other receivables 10,845 11,510
Derivative financial instruments 101 894
Cash and cash equivalents 10,086 12,602
45,612 47,495
------------ ------------
Current liabilities
Trade and other payables (22,504) (23,500)
Derivative financial instruments (993) (640)
(23,497) (24,140)
------------ ------------
Non-current liabilities
Deferred income (386) (504)
Provisions for liabilities and
charges 6 (5,260) (6,303)
Pension schemes 6 (359) (644)
Total liabilities (29,502) (31,591)
------------ ------------
Net assets 25,528 23,410
============ ============
Equity
Called-up share capital 19,244 19,244
Share premium 4,599 4,599
Merger reserve 969 969
Hedge reserve (664) (46)
Translation reserve 221 576
Retained earnings 1,159 (1,932)
Total equity 25,528 23,410
============ ============
Group statement of cash flows
For the 53 weeks ended 30 April 2011
53 weeks 52 weeks
ended ended
30 April 24 April
2011 2010
GBP000 GBP000
Cashflows from operating activities
Operating profit 5,384 5,347
Loss on disposal of property, plant &
equipment - 16
Depreciation charge 1,512 1,683
(Decrease) / increase in working capital (2,717) 3,577
Decrease in provisions (1,485) (1,455)
Charge relating to share based payments 278 243
Net cash inflow from continuing operations 2,972 9,411
Interest paid - (9)
Income tax paid (221) (232)
Net cash generated from operating activities 2,751 9,170
----------
Cashflows from investing activities
Purchase of property, plant and equipment (2,938) (1,078)
Interest received 118 19
Net cash outflow used in investing activities (2,820) (1,059)
---------- ----------
Cash flows from financing activities
Dividends paid to company's shareholders (1,196) -
Purchase of shares by ESOP Trust (1,055) (63)
Net cash used in financing activities (2,251) (63)
---------- ----------
Net (decrease)/ increase in cash and
cash equivalents (2,320) 8,048
Cash and cash equivalents at beginning
of period 12,602 4,533
Exchange rate movements on cash and cash
equivalents (196) 21
Cash and cash equivalents at end of period 10,086 12,602
========== ==========
Notes to the Preliminary Results
For the 53 weeks ended 30 April 2011
1. Basis of preparation
For the period to 30 April 2011, the Group has prepared its
consolidated financial statements in accordance with International
Financial Reporting Standards as adopted for use in the EU ("IFRS")
and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS. Accordingly, the Directors have applied the
accounting policies set out in Note 7.
The figures for the 53 weeks ended 30 April 2011 included in
this announcement have been extracted from the audited financial
statements for the 53 weeks ended 30 April 2011 which were approved
by the Board of Directors on 4 July 2011. The figures for the 53
weeks ended 30 April 2011 and 52 weeks ended 24 April 2010 do not
constitute statutory accounts within the meaning of section 435 of
the Companies Act 2006. The figures for the 52 weeks period ended
24 April 2010 have been extracted from the financial statements
filed with the Register of Companies and contain an unqualified
audit report and no statements under sections 498(2) or 498(3) of
the Companies Act 2006.
2. Finance income and costs
53 weeks 52 weeks
ended ended
30 April 24 April
2011 2010
GBP000 GBP000
a) Finance income
Interest receivable 118 19
========= =========
b) Finance costs
Interest payable - (10)
Unwinding of discount on provisions (210) (106)
Net finance cost of pension schemes (14) (131)
(224) (247)
========= =========
3. Income tax expense
53 weeks 52 weeks
ended ended
30 April 24 April
2011 2010
The income tax expense comprises: GBP000 GBP000
Current tax
Overseas tax charge (281) (150)
========= =========
4. Earnings per share
Basic / diluted earnings per share
The basic earnings per share have been calculated by dividing
the profit after taxation for the year by the weighted average
number of shares in issue during the year excluding those held by
the Employee Share Ownership Trust ("the Trust"). At 30 April 2011
8,398,178 shares were held in the Trust (24 April 2010:
1,398,178).
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has two classes of
dilutive potential ordinary shares: those share options granted to
Directors where the exercise price is lower than the average market
price of the Company's ordinary shares during the year and the
awards under the Jacques Vert Plc Long Term Incentive Plan ("the
Plan") to the extent that performance criteria attached to those
awards are expected to be met.
30 April 24 April
2011 2010
GBP000 GBP000
Profit for the year 4,997 4,969
========== ==========
Thousands Thousands
of shares of shares
Weighted average number of ordinary shares
in issue 192,444 192,444
Adjustment for shares held by the Trust (6,851) (1,082)
---------- ----------
Weighted average number of ordinary shares
in issue for basic earnings per share 185,593 191,362
Dilutive shares - shares committed under the
Plan 10,542 6,762
---------- ----------
Weighted average number of ordinary shares
in issue for diluted earnings per share 196,135 198,124
========== ==========
Basic earnings per share 2.69p 2.60p
========== ==========
Diluted earnings per share 2.55p 2.51p
========== ==========
5. Dividends
The Directors propose a final dividend of 0.67p per share (2010:
0.65p) amounting to GBP1,233,000 (2010: GBP1,196,000). The final
dividend will be paid on 14 October 2011 to shareholders whose
names are on the Register of Members at the close of business on 16
September 2011.
6. Provisions
Pension Legacy business
schemes provisions Total
GBP000 GBP000 GBP000
At 25 April 2009 434 7,623 8,057
Utilised (229) (1,383) (1,612)
Charged to the income statement 331 (43) 288
Actuarial loss on pension schemes 108 - 108
Discount unwinding - 106 106
At 24 April 2010 644 6,303 6,947
Utilised (232) (1,341) (1,573)
Charged to the income statement 14 88 102
Actuarial gain on pension schemes (67) - (67)
Discount unwinding - 210 210
At 30 April 2011 359 5,260 5,619
========= ================ ========
Legacy business provisions relate to costs faced by the Group
which do not relate to current trading activity. They include: the
costs of onerous leasehold property including dilapidations;
potential claims against the Group in respect of industrial
diseases; and the expected cost to the Group associated with the
Group's pension schemes.
The charge made during the year to 30 April 2011 comprised the
movement in fair value of the phantom option over 10 million shares
in Jacques Vert Plc granted to the Trustee of the Jacques Vert
(2006) pension scheme, together with costs expected in connection
with the Group's pension schemes, less a release following the
settlement of an onerous lease during the year.
7. Accounting policies
The following new standards, amendments and interpretations
issued by the International Accounting Standards Board ("IASB") are
mandatory for the first time for the financial year beginning 25
April 2010 but none has had a material effect on the results or the
net assets of the Group:
-- IFRIC 16 "Hedges of net investment in a foreign
operation".
-- IAS 39, "Financial Instruments: Recognition and measurements"
regarding eligible hedged items.
-- Amendments to IRFRS 1, "First time adoption" regarding
disclosures on financial instruments.
-- IFRS 2, "Share based payments" regarding group cash-settled
share-based payment transactions.
The following new interpretations are mandatory for the first
time for the financial year beginning 25 April 2010, but are not
currently relevant for the Group:
-- IFRIC 15, "Agreements for the construction of real
estate".
-- IFRIC 17, "Distributions of non-cash assets to owners".
-- IFRIC 18, "Transfer of assets from customers".
The following new standards, amendments and interpretations have
been issued, but are not effective for the financial year beginning
25 April 2010. They are not currently relevant to the group:
-- Amendments to IAS 24 (revised), "Related party
disclosures"
-- Amendments to IFRIC 14, "IAS19 - the limit on defined benefit
assets" regarding the pre-payment of the minimum funding
requirement.
-- IFRIC 19, "Extinguishing financial liabilities with equity
instruments".
Accounting convention
The consolidated financial statements have been prepared under
the historical cost convention, as modified by the revaluation of
financial assets and liabilities at fair value.
Basis of consolidation
The Group financial statements consolidate the results of
Jacques Vert Plc ("the Company") and its subsidiary undertakings
(together "the Group") under acquisition accounting for the 53
weeks ended 30 April 2011. Under this method, the assets and
liabilities of subsidiary undertakings acquired are incorporated at
their fair value at the date of acquisition and the Group income
statement includes only that proportion of the result of
subsidiaries arising whilst meeting the definition of a
subsidiary.
Subsidiaries are entities controlled by the Company. Control
exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
Revenue recognition
Revenue represents sales by the Group to third parties, net of
returns, trade discounts and value added tax. Retail revenue is
shown net of provisions for customer returns representing the
Group's estimate of the amount of product sold during the year that
will be returned in the following year. Revenue is recognised when
the significant risks and rewards of ownership of the goods have
passed to the buyer which is generally when goods are delivered to
the customer.
Finance income and expense
Interest income and interest payable is recognised in the Group
income statement as it accrues.
Share based payments
The Group operates an equity settled Employee Share Ownership
Plan ("ESOP"). The Group has also granted equity settled share
options ("Options"). Share awards made under the ESOP and the
Options are measured at fair value at the date of grant. The fair
value is measured by use of the Black-Scholes model and expensed on
a straight-line basis over the vesting period based on an estimate
of the number of shares that will eventually vest.
The level of vesting is reviewed annually, together with the
value of employers NICs arising from the expected vesting and the
charge is adjusted to reflect actual and estimated levels of
vesting.
Shares held by the Employee Share Ownership Trust ("the Trust")
to meet the commitments of the ESOP are shown as a deduction from
shareholders' equity. The cost of the ESOP is borne by the
Group.
Pensions
The Group operates several defined contribution and defined
benefit schemes for its employees.
Defined contribution schemes are pension schemes under which the
Group pays fixed contributions into separate entities. The Group
has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay
all employees the benefits relating to employee service in the
current and prior periods. Defined benefit schemes are pension
schemes that are not defined contribution schemes.
The liability recognised in the balance sheet in respect of
defined benefit pension schemes is the present value of the defined
benefit obligation at the balance sheet date less the fair value of
plan assets, together with adjustments for unrecognised
past-service costs. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit
method. The present value of the defined benefit obligation is
determined by discounting the estimated future cash outflows using
interest rates of high-quality corporate bonds that are denominated
in the currency in which the benefits will be paid, and that have
terms to maturity approximating to the terms of the related pension
liability.
Actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or credited to
equity in the Group statement of comprehensive income in the period
in which they arise.
Actuarial surpluses in defined benefit schemes are recognised in
the Group balance sheet to the extent of the expected future cash
receipts from the schemes.
Goodwill
Goodwill arising on consolidation represents the excess of the
cost of acquisitions over the Group's interest in the fair value of
the identifiable assets and liabilities of the acquired entities at
the date of acquisition.
Goodwill is recognised as an asset and is assessed for
impairment at least annually. Any impairment is recognised
immediately in the Group income statement and is not subsequently
reversed. Upon disposal of a subsidiary the attributable goodwill
is included in the calculation of the profit or loss arising on
disposal.
Taxation
The tax charge comprises current tax payable and movement on
deferred tax. The current tax payable is provided on taxable
profits using tax rates enacted or substantively enacted at the
balance sheet date.
Deferred tax is recognised in respect of all timing differences
that have originated but not reversed at the balance sheet date,
where transactions or events that result in an obligation to pay
more tax in the future or a right to pay less tax in the future
have occurred at the balance sheet date.
A net deferred tax asset is recognised as recoverable and
therefore recognized only when, on the basis of all available
evidence, it can be regarded as more likely than not that there
will be suitable taxable profits against which to recover carried
forward tax losses and from which the future reversal of underlying
timing differences can be deducted.
Deferred tax is measured at the average tax rates that are
expected to apply in the periods in which the timing differences
are expected to reverse, based on tax rates and laws that have been
enacted or substantively enacted by the balance sheet date.
Deferred tax is measured on an undiscounted basis.
Deferred tax is recognised in respect of the retained earnings
of overseas subsidiaries only to the extent that, at the balance
sheet date, dividends have been accrued as receivable or a binding
agreement to distribute past earnings in future periods has been
entered into by the subsidiary.
Property, plant and equipment
Property, plant and equipment are stated at the lower of cost
less accumulated depreciation and recoverable amount. Cost includes
the original purchase price of the asset plus the costs
attributable to bring the asset into working condition for its
intended use. Depreciation is calculated so as to write off the
cost of property, plant and equipment less any residual value over
their estimated useful economic lives by equal annual instalments
at the following rates:
Remaining period of the
Leasehold improvements lease
Plant, fixtures and
equipment 10% - 33%
Land is not depreciated.
The assets' residual values and useful lives are reviewed, and
adjusted if appropriate, at each balance sheet date. Asset carrying
values are written down immediately to the estimated recoverable
amount where the estimated recoverable amount is less than the
carrying value.
Operating leases
Rentals payable under operating leases are charged to the Group
income statement on a straight-line basis over the life of the
lease.
The value of any lease incentives received on leasehold
properties is recognised as deferred income and released to the
income statement on a straight-line basis over the life of the
lease.
Inventories
Inventories are valued at the lower of cost and net realisable
value. Cost comprises the cost of direct materials and labour and
an appropriate proportion of overheads. Net realisable value is the
value at which inventories and work in progress can be realised in
the ordinary course of business.
Trade receivables
Trade receivable are amounts due from customers for merchandise
sold in the ordinary course of business. Trade receivables are
recognised at fair value less any provision for impairment.
Foreign currencies
Transactions denominated in foreign currencies are translated at
the exchange rates at the date of the transaction. Foreign exchange
gains and losses arising from such transactions and from the
translation at year end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in the
Group income statement.
The results and financial position of subsidiaries which have a
functional currency other than Sterling are translated as
follows:
- assets and liabilities for each balance sheet presented
are translated at the closing rate at the date of
the balance sheet;
- income and expenses for each income statement presented
are translated at weighted average exchange rates;
- all resulting exchange differences are recognised
as a separate component of equity until the disposal
of the relevant subsidiary when they are recycled
to the Group income statement.
Trade payables
Trade payables are obligations to pay for goods and services
that have been acquired in the ordinary course of business from
suppliers. Trade payables are held at their nominal value.
Derivative financial instruments
The Group uses derivative financial instruments, in particular
forward currency contracts, to manage the financial risks
associated with the Group's underlying business activities and the
financing of those activities. Such financial instruments are
initially recorded at fair value and are thereafter revalued to
fair value at each balance sheet date. The Group does not enter
into speculative currency contracts.
Gains or losses on derivative financial instruments that are
designated as effective hedges against future cash flows are
recognised directly in equity ("hedge accounting"). Any gain or
loss relating to an ineffective hedge or a derivative financial
instrument that does not qualify for hedge accounting is
immediately recognised in the Group income statement, and where
material as an exceptional item.
Where a hedged commitment results in the recognition of an asset
or a liability, the gain or loss on the hedge previously recognised
in equity is thereafter included in the initial measurement of the
asset or liability. For hedges that do not result in the
recognition of an asset or liability, amounts deferred in equity
are recognised in the income statement in the same period in which
the hedged commitment affects profit and loss.
Hedge accounting ceases in respect of a financial instrument
when it expires or is sold, terminated or exercised, or no longer
qualifies for hedge accounting. The cumulative gain or loss
relating to the instrument that has previously been recognised in
equity is retained in equity until the hedged transaction occurs or
hedge accounting ceases to apply.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and short term
deposits. Bank overdrafts that are repayable on demand and form an
integral part of the Group's cash management are included as a
component of cash and cash equivalents for the purpose of the
statement of cash flows.
Provisions
Provisions are recognised when either a legal or constructive
obligation, as a result of a past event, exists at the balance
sheet date and where the likely outcome and the amount of the
obligation can be measured with reasonable certainty. Provisions
are discounted at an appropriate discount rate.
Impairments
Impairments are made against Group assets under the following
conditions:
Goodwill
Goodwill is allocated to the Group's cash generating units
(CGU's) and the recoverable amount of each CGU is determined based
on a value-in-use calculation where appropriate.
Property, plant and equipment
Property, plant and equipment is tested when circumstances
indicate a possible impairment. In those circumstances a
value-in-use calculation is performed.
Assumptions used in the calculations to assess impairment of
goodwill and property, plant and equipment are based on performance
and the latest financial plans approved by the board. If the
recoverable amount of a CGU is less than the carrying value of all
assets allocated to that CGU, an impairment is recognised.
Goodwill is the first asset class to be impaired, followed by
property, plant and equipment.
Critical estimates and judgements
The preparation of financial statements under IFRS requires
management to make estimates that affect the reported amounts of
assets and liabilities, income and expenses. These estimates are
based on historical experience and various other factors that are
believed to be reasonable in the particular circumstance. Actual
results may differ from these estimates.
The Group's critical judgement areas relate to the recognition
of pension scheme assets; legacy and other business provisions,
including industrial diseases, together with the assessment of the
highly probable nature of cashflow hedges as follows:
(a) Pension scheme assets - Jacques Vert (2006) pension
scheme
Any repayment to the Group of the surplus held within the scheme
at 30 April 2011 is at the discretion of the pension scheme
Trustee. It is currently considered that no repayment will be made
to the Group in the future. At 30 April 2011 the value of the
surplus was GBP10,807,000 (2010: GBP8,277,000).
(b) Legacy and other business provisions
The level of provisions held against legacy and current
activities is assessed with reference to payments made during the
period; expectations of future payments and receipts and, where
relevant, to independent advice. At 30 April 2011 the value of such
provisions was GBP5,260,000 (2010: GBP6,303,000) (see note 6).
(c) Cash flow hedges
Cash flow hedges are tested for effectiveness based on estimated
currency requirements assuming a substantially consistent supplier
base. At 30 April 2011 the net value of cash flow hedges was a
liability of GBP892,000 (2010: net asset of GBP254,000).
- ENDS -
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR DZLFBFDFBBBD
Grafico Azioni Jacques Vert (LSE:JQV)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Jacques Vert (LSE:JQV)
Storico
Da Gen 2024 a Gen 2025
