TIDMJLH
RNS Number : 5221X
John Lewis Of Hungerford PLC
19 December 2019
JOHN LEWIS OF HUNGERFORD PLC
FINAL RESULTS
John Lewis of Hungerford plc ("John Lewis of Hungerford" or the
"Company") the specialist kitchen manufacturer and retailer
announces its final results for the year ended 30 June 2019.
Chairman's Statement
The last twelve months have seen the Company operating within an
unprecedented retail landscape. Although the economy is not
technically in recession, the current uncertainty within the
economy, mainly resulting from Brexit and structural issues facing
retail in the high street, has made it more difficult for retail
than the recessions in 1990 and 2008. We have seen significant
store closures: 2,868 stores have closed in the first half of 2019,
and numerous financial restructurings during this period - with
some of the High Street's best-known brands being affected. We have
seen this within our own sector of kitchen retail with several
companies reporting challenging conditions.
Economic conditions are continuing to be difficult and the
calling of the General Election, resulting from Parliament's
failure to reach any conclusion on Brexit, has further deteriorated
the retailing environment.
Against this background, and in this uncertain economic
environment our focus has been, and will continue to be, on
improving our performance and preserving cash. We have therefore
been applying stringent controls on costs and as a result have
driven cGBP275k of costs out of the business in the current
financial year. This should provide savings of GBP450k in a full
financial year - some 5.8% of the Companies total cost base. This
is with the objective of preserving cash even with a significantly
reduced sales base - detailed further in the CEO Report.
We have previously reported on the work we had undertaken to
improve the operations within all aspects of the business and also
the repositioning of the brand through our marketing activities and
marketing collateral which has been a key factor in managing the
performance of the business in this difficult trading
environment.
We have also discussed the strategic objectives of the business
to build the business not only through organic growth following our
actions but to add to the store portfolio to give the business an
improved critical mass. However, the last couple of years have seen
significant uncertainty within the economy and this has hindered
the growth of the business. As such we have had to put our growth
objectives on hold while we manage costs and cash, by not spending
on the capital cost of adding new stores.
We remain focused on delivering our strategic plan, which will
see the Company grow the estate and our portfolio of services at a
point that we consider appropriate. The Company has improved
efficiencies and particularly we have been building a team and a
workforce that are ready to take advantage as soon as the economy
starts showing signs of recovery.
The primary factors in our loss for the year are both a change
in mix towards our lower margin offerings i.e. bedrooms and,
inflationary price increases throughout our supply chain, which we
have been unable to pass fully onto our customers. This is
discussed further in the CEO Report. Our team have worked hard to
ensure that efficiencies are realised across the business, to
retain high levels of productivity. We are pleased with the efforts
from the staff around the business and thank them for their
commitment to the future success of the Company.
The longer term forecast for the industry remains positive and
we hope that once the Brexit issue is resolved, that consumer
confidence will return and the economy will recover in due course.
I have full confidence in my colleagues around the business who are
ready for the challenges and opportunities, which lay ahead.
Gary O'Brien
Non-Executive Chairman
Chief Executive's Business Review
Overview
As detailed in the Chairman's Statement, the last year has been
a challenging one in many areas of the retail sector. We achieved a
turnover of GBP8.3m for the FY2019, compared to the unaudited
comparison for 12 months to 30 June 18 of GBP8.9m. The FY2018 was
affected by our year-end change from 31 August to 30 June so on a
like for like basis, removing the benefit of two year-end peaks in
FY2018, the prior year comparative turnover was GBP8.5m. Our
turnover achieved in FY2019 was therefore just below the prior year
adjusted turnover.
Following a profitable second half year of GBP127k, the Company
reports a reduced operating loss for the full year of GBP191k,
reduced from the GBP318k loss reported in our Interims for the 6
months ended 31 December 2018.
The results reflect mixed fortunes within the business, with the
majority of the estate outperforming the rest with record-breaking
results however with several showrooms underperforming, although
only one store failing to make a net contribution. Ensuring that
all of our showrooms make a positive net contribution is vital to
our success. Footfall has been variable throughout the year and
across the sites - with our London showrooms continuing to lead the
others in this regard. We have been reviewing our lease commitments
to ensure we remain flexible in our approach to retaining better
performing stores and reviewing underperforming stores, primarily
due to changes in local economic factors, coupled with the movement
of hubs to out of town locations in some of our territories. New
showrooms have been evaluated, however, given the unpredictable
nature of the current retail trading environment, any growth of the
estate has been delayed at this time. We continue to consider new
territories and opportunities as they arise.
As the market tightens, we have focused our attention on adding
value to our customer proposition. We are in discussions with an
external provider to add a potential finance offering to our
portfolio, which will provide the opportunity to broaden our appeal
and assist our customers in purchasing from John Lewis of
Hungerford in this challenging economy. Our marketing strategy
continues to be ever crucial to the reach of the brand and the
promotion of our expertise in delivering excellence across our
service offering including our customer journey and final
installation. With our new website launching last December and our
ongoing SEO commitment, we have seen improvements in both the
quantity and quality of our web enquiries, increasing by 200% which
has been critical given an average of 10% reduction in footfall
across our locations. Our focus remains firmly on conversion and
this has been an ongoing area of investment, both in marketing
tools to aid the customer interaction, with the launch of our new
brochure, together with our CRM investment, which is now able to
personalise the e-marketing for customers engaging with the
business. Supported by our social media, the website has drawn
interest from across the sector, from both professionals and the
end consumer.
Developing our partnerships within the professional sector has
contributed to our performance throughout the year. Key
relationships, which have affected our social media presence,
include our focus on collaborations with high profile influencers
including 2LG Studio, which has led to interest from highly
talented interior designers, developers and architects. Through
sharing these projects and our portfolio of stunning kitchen and
bedroom installations, we have successfully secured numerous
projects and a high level of recommendations. Working with
like-minded professionals across the industry has given us the
opportunity to build sustained relationships with highly
influential trade partners, looking for a high quality provider to
support their businesses on a regular basis. All of them are
ambassadors for the Company and they continue to work in
partnership with our design team.
Balancing our customer needs for a bespoke product and our
business needs for simplicity in production planning, remain
essential to our productivity. The administrative work involved in
processing our orders remains complex and an area of focus for our
continuous improvement team.
Ongoing investment in our people to prioritise the customer
experience with the business remains our key focus, protecting our
most distinguishing factor - our highly talented design team. We
have invested in their project management skills and capabilities,
to ensure that this USP can be retained, leading to high levels of
recommendations. Recruiting and retaining high performing
individuals in this sector continues to be challenging, although we
have noted an improvement in our ability to attract high performing
individuals.
Our most significant investment this year, has been in our
manufacturing facility, through the installation of new spray
booths. This has significantly improved our ability to produce high
quality product, with a superb finish, improving our efficiency
during the peak months of the year. Our skilled Artisans within our
production team continue to work diligently to ensure our error
rate across the business continues to improve. It is now in line
with industry levels at 1.5%, reduced significantly since the 3%
recorded in 2016.
The volume of units sold has seen a small reduction in Kitchens,
at 290 (3 year average is 300), and the number of Bedrooms has seen
a significant increase at 119 (3 year average 80) with the category
now accounting for 7% of overall sales. The level of repeat
business from existing JLH customers where we are able to fulfil a
'whole home solution' is now 50% of the category. However, the
margins on Bedroom cabinetry are much lower than on Kitchens and we
are evaluating our proposition to determine the most viable way
forward for our Bedroom collection, and the business.
12 months 10 months
to June 2019 to June 2018
---------------- -------------- --------------
GBP000 GBP000
Total Sales 8,306 6,715
Cost of Sales 4,374 3,465
Gross Margin 3,932 3,250
==================== ============== ==============
Gross Margin % 47.3% 48.4%
The actions taken over the second half year, which included a
necessary price increase, demonstrated an improved margin to 47.3%
from the 46.2% detailed in the Interims. Although we are pleased to
see movement in a positive direction, the impact of our growing
Bedrooms category over the last three years has adversely impacted
the margin.
Additional margin dilution from price increases across all
bought-in items, including white goods and worktops, presents a
challenge that the business is addressing, and how the business
might mitigate this margin impact by focusing on increasing kitchen
volumes through the supply chain, whilst reducing our cost
base.
Input prices have also increased, which have been offset against
a corresponding price increase for our customers.
Product Margin
12 months 10 months
to June 2019 to June 2018
---------------- -------------- --------------
GBP000 GBP000
Total Sales 7,266 5,847
Cost of Sales 3,520 2,760
Gross Margin 3,746 3,087
================ ============== ==============
Gross Margin % 51.6% 52.8%
The product margin movement is directly attributable to the
increased Bedrooms component within our mix this last year. Margins
on kitchens have remained consistent with the prior period. The
additional costs attributed to the manufacture of bedrooms are
approximately 20% higher.
Installations
12 months 10 months
to June 2019 to June 2018
---------------- -------------- --------------
GBP000 GBP000
Total Sales 1,040 868
Cost of Sales 854 705
Gross Margin 186 163
================ ============== ==============
Gross Margin % 17.9% 18.8%
Our installation offering has been maintained at 96% of all
orders being installed by our Artisan Installation Service. Our
professional fitting teams have offered an exemplary service to our
customers, for which we thank them.
With the shortage of good trade professionals, it has been vital
to our fitter retention, to ensure we are competitive and that we
are paying market rate for trade professionals. This has
necessitated a price increase from the new financial year, which we
have passed directly on to customers.
Cash Flow
At 30 June 2019 the Company had a closing bank balance of
GBP287k including GBP220k on long term deposit. The Company has an
overdraft facility of GBP250k. Liquidity headroom at 30 June 2019
was therefore GBP537k.
Closing Comments
The year to 30 June 2019 has served to remind us that market
fluctuations can undermine consumer confidence to a degree where
discretionary spend on home renovations can be adversely affected.
Although the latest IBIS reports suggest market growth over this
new financial trading period, we continue to monitor the political
and retail climates. Brexit and the General Election have created
uncertainty and consumers have delayed high value spend.
Within this challenging environment, we have taken steps to
remove cGBP275k of costs in this current year, with an annualised
benefit of GBP450k. Within the business, we continue to pursue
additional areas to ensure that we minimise costs and maximise
agility during this challenging time. This review has unfortunately
resulted in a reduction of headcount within the business, together
with the imminent closure of our Oxford showroom, with potential
further headcount reductions in other showrooms. Our focus has also
been on working with our trading partners to secure the most
effective procurement and ensure that the business is operating
with maximum efficiency.
In addition, a project team within the business is working to
further reduce waste as the improvement of productivity across the
Company remains a primary objective for this year. We continue to
promote a lean structure, as we balance our resources in line with
business needs and performance. High quality marketing and customer
communications remains core to our ability to attract new business
and partners for the brand. We have been working hard on new
creative innovations, which will continue to keep the brand fresh
and relevant this year, as we look to ensure we are always
distinctly different to our competitors.
It has undoubtedly been a year of change, determination and
challenge. We thank our dedicated team for their ongoing commitment
to the business as we continue to work hard to ensure the business
is ready for profitable growth once the market begins to
stabilise.
Current Trading and Outlook
For the new financial year, despatched sales and forward orders
(which we normally consider to be the best measure of current
trading) for the first 24 weeks of trading stood at GBP3.8m (2018:
GBP4.6m). Future orders against which a first stage deposit has
been taken stood at GBP1.6m (2018: GBP1.5m). Overall design
quotation activity within the business is 10% up on the previous
year which points to an underlying latent demand but with decisions
being delayed by customers as a result of the political climate.
The Company expects conversions to improve once we have clarity
around Brexit. Whilst the impact on consumer demand continues, we
are reacting, as mentioned above, by reducing costs in the business
and increasing flexibility to respond to changing demand. The Board
continue to monitor the situation closely and work to improve
efficiency and agility in the business to ensure the Company is
well set to benefit from any improvement in consumer
confidence.
With our new marketing initiatives launching for the winter
period, and the potential introduction of finance for our customers
later in the year, we are confident that our efforts to ensure that
the business can achieve sustained profits will be realised, once
there is more clarity around Brexit after the General Election.
Kiran Noonan
Chief Executive Officer
Enquiries:
John Lewis of Hungerford plc 01235 774300
Gary O'Brien - Non-Executive Chairman
Kiran Noonan - Chief Executive Officer
Cenkos Securities plc 0207 397 8900
Azhic Basirov
Katy Birkin
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Income Statement for the year ended
30 June 2019
10 months
to 30
June
2019 2018
Notes GBP GBP
Revenue 8,305,948 6,714,917
Cost of
sales (4,374,380) (3,465,252)
------------ ------------
Gross profit 3,931,568 3,249,665
Selling and distribution
costs (498,435) (442,951)
Administrative
expenses (3,623,689) (3,155,462)
Loss from operations 4 (190,556) (348,748)
Finance income 246 258
Finance expenses (38,330) (25,348)
------------ ------------
Loss before
tax (228,640) (373,838)
Tax on Loss
from operations 5 (68,531) 181,137
------------ ------------
Loss for the
year (297,171) (192,701)
============ ============
Loss per share 6
Basic (0.16)p (0.10)p
Fully diluted (0.16)p (0.10)p
Statement of Financial Position
as at 30 June 2019
30 June 30 June
2019 2018
Notes GBP GBP
Non-current assets
Intangible assets 179,292 56,445
Property, plant and equipment 2,299,873 2,356,967
Deferred tax asset - 68,531
Trade and other receivables 42,750 42,750
------------ ------------
2,521,915 2,524,693
Current assets
Inventories 144,022 169,536
Trade and other receivables 736,593 530,201
Cash and cash equivalents 287,187 685,722
------------ ------------
1,167,802 1,385,459
Total assets 3,689,717 3,910,152
------------ ------------
Current liabilities
Trade and other payables (1,919,598) (1,834,997)
Borrowings (122,289) (106,946)
------------ ------------
(2,041,887) (1,941,943)
Non-current liabilities
Borrowings 7 (479,034) (507,558)
Provisions 8 (105,053) (101,053)
------------ ------------
(584,087) (608,611)
Total liabilities (2,625,974) (2,550,554)
------------ ------------
Net assets 1,063,743 1,359,598
============ ============
Equity
Share Capital 186,745 186,745
Share Premium 1,188,021 1,188,021
Other Reserves 1,421 1,421
Retained Earnings (312,444) (16,589)
------------ ------------
Total equity 1,063,743 1,359,598
============ ============
Statement of Cash Flows for the year ended 30
June 2019
10 months
to 30 June
2019 2018
GBP GBP
Cash flows from
operating activities
Loss from operations (190,556) (348,748)
Amortisation of
intangible assets 22,336 11,728
Depreciation and
impairment of property,
plant and equipment 233,759 210,928
Share based payments 1,316 -
Loss on disposal
of property, plant
and equipment 9,738 30,723
Decrease in inventories 25,514 8,301
(Increase) in receivables (206,392) (31,445)
Increase/(decrease)
in payables 84,601 (351,593)
Increase/(decrease)
in provisions 4,000 -
------------ ------------
Cash generated from
operations (15,684) (470,106)
Net cash from operating
activities (15,684) (470,106)
------------ ------------
Cash flows from
investing activities
Purchase of intangible
assets (145,183) (9,660)
Purchase of property,
plant and equipment (196,248) (279,229)
Net proceeds from
sale of property,
plant and equipment 9,845 56,905
Interest received 246 258
Net cash used in
investing activities (331,340) (231,726)
------------ ------------
Cash flows from
financing activities
Interest
paid (38,330) (25,348)
Increase in borrowings 100,876 -
Repayment of borrowings
- finance leases (27,981) (16,295)
Repayment of borrowings
- bank loans (86,076) (73,605)
Net cash used in
financing activities (51,511) (115,248)
------------ ------------
Net increase/(decrease)
in cash and cash
equivalents (398,535) (817,080)
------------ ------------
Net cash and cash
equivalents at the
start of the period 685,722 1,502,802
Net cash and cash
equivalents at the
end of the year 287,187 685,722
============ ============
Net cash and cash
equivalents comprise:
Cash at bank and
in hand 287,187 685,722
Bank overdrafts - -
287,187 685,722
============ ============
Notes
1. Statutory Accounts
The financial information does not constitute statutory accounts
as defined in section 435 of the Companies Act 2006, but has been
extracted from the statutory accounts for the period ended 30 June
2019 on which an unqualified audit report has been issued and which
will be delivered to the Registrar following their adoption at the
Annual General Meeting.
The statutory accounts for the period ended 30 June 2018 have
been delivered to the Registrar of Companies with an unqualified
audit report.
2. Basis of preparation
The Company's financial statements are prepared under the
historical cost convention and in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union and with those parts of the Companies Act 2006 applicable to
companies reporting under IFRS.
3. Going concern
Given that the Company has incurred losses over the last two
periods and has net current liabilities of GBP874,085 (2018:
GBP556,484) the Directors have given consideration to the Company's
going concern status. After reviewing the Company's operating
budgets, investment plans and financing arrangements (both current
and potential), the Directors consider that the Company has, at the
date of this report, sufficient financing available for the
estimated requirements for the foreseeable future. Accordingly, the
Directors are satisfied that it is appropriate to adopt the going
concern basis in preparing the annual report and financial
statements.
4. (Loss) / Profit from
Operations
10 months
to 30 June
2019 2018
GBP GBP
Loss from operations is stated
after charging:
Auditors remuneration - Company
audit 26,000 25,000
Amortisation of intangible
fixed assets 22,336 11,728
Depreciation of owned property
plant and equipment 215,716 202,928
Depreciation of plant and equipment
held
on finance leases 18,043 8,000
Loss on disposal of property,
plant and equipment 9,738 30,723
Operating lease
rentals
- Plant and machinery 9,503 15,968
- Other
assets 455,152 387,991
Cost of inventories recognised
as an expense 3,608,473 2,806,020
5. Tax On (Loss) / Profit from
Operations
2019 2018
GBP GBP
Current period taxation
UK Corporation tax charge for the
period - -
Research and development tax credit - 94,258
---------- ----------
Total current
tax - 94,258
Origination and reversal of temporary
timing differences 33,665 86,879
Current year deferred tax asset
not recognised (33,665) -
Reversal of previously recognised
Deferred tax asset (68,531)
(68,531) 181,137
========== ==========
The tax assessed for the period differs from the standard
rate of corporation tax in the UK. The differences are
explained below:
2019 2018
GBP GBP
Loss on ordinary activities
before tax (228,640) (373,838)
---------- ----------
Loss on ordinary activities multiplied
by standard rate of corporation
tax in the UK of 19% (43,442) (71,029)
Effect of:
Expenses not deductible for tax
purposes 4,715 2,378
Depreciation on assets not qualifying
for tax allowances 4,658 10,563
Other permanent differences (11,446) (3,428)
Adjustment in respect of prior
years - (10,296)
Research and development tax credit - (94,258)
Deferred tax adjustments in respect
of prior years - (23,130)
Effect of change in local corporation
tax rate 11,850 8,063
Current year deferred tax asset
not recognised 33,665 -
Reversal of previously recognised
Deferred tax asset 68,531 -
Total tax charge/(credit) in income
statement 68,531 (181,137)
========== ==========
In the prior year, a deferred tax asset of GBP68,531 was
recognised in respect of accumulated tax losses amounting to
GBP1,143,232 The Directors continue to believe that the
availability of tax losses will in due course reduce the Company's
tax liability in future accounting periods, however at this time,
the Directors believe that it is prudent for the deferred tax asset
of GBP68,351 to be derecognised, resulting in a deferred tax charge
of GBP68,531. This has no effect on the underlying performance of
the business or our cash position.
6. Earnings / (loss)
Per Share
10 months
to 30 June
2019 2018
Loss per ordinary share
is calculated as
follows:
Basic
Loss attributable to ordinary
shareholders (GBP) (297,171) (192,701)
Weighted average number
of ordinary
shares in issue 186,745,519 186,745,519
Loss per ordinary
share (0.16)p (0.10)p
---------- --------------
Fully diluted
Loss attributable to ordinary
shareholders (GBP) (297,171) (192,701)
Weighted average number
of ordinary
shares in issue 186,745,519 186,745,519
Weighted average number
of ordinary
shares under
option 6,553,983 -
Loss per ordinary
share (0.16)p (0.10)p
========== ==============
Basic earnings per share amounts are calculated by dividing
loss for the year attributable to ordinary equity holders
of the Company by the weighted average number of Ordinary
shares outstanding during the year.
Diluted earnings per share is calculated by dividing the
loss attributable to ordinary equity holders of the Company
by the weighted average number of Ordinary shares outstanding
during the year plus the weighted average number of Ordinary
shares that would have been issued on the conversion of
all dilutive potential Ordinary shares into Ordinary shares.
The potential ordinary shares relating to outstanding
share options were anti-dilutive because the Company reported
a loss from continuing operations for the year, and therefore
were excluded from the diluted earnings per share calculation.
7. Borrowings
2019 2018
GBP GBP
Bank loans 491,807 577,883
Finance lease
liabilities 109,516 36,621
---------- ----------
601,323 614,504
========== ==========
Presented in the balance
sheet as:
Borrowings -
current 122,289 106,946
Borrowings - non-current 479,034 507,558
---------- ----------
601,323 614,504
========== ==========
(a) Bank borrowings
Analysis of bank loan
repayments:
In one year
or less 92,383 85,046
In more than one year
but not
more than two
years 95,054 81,156
In more than two years
but not
more than five
years 259,395 263,017
In more than five
years 44,975 148,664
491,807 577,883
========== ==========
The Bank loans are secured by a legal charge over the
Company's freehold properties at Park Street, Hungerford,
Berkshire and Grove Technology Park, Downsview Road,
Wantage, Oxfordshire.
2019 2018
GBP GBP
(b) Finance lease liabilities
Gross nance lease liabilities-
minimum lease payments:
In one year
or less 42,909 21,900
Between one and five
years 77,247 16,425
More than five years 15,449 -
135,605 38,325
---------- ----------
Future finance charges on finance
lease liabilities (26,089) (1,704)
Present value of finance
lease liabilities 109,516 36,621
========== ==========
Future finance charges on finance lease liabilities
are analysed as follows:
2019 2018
GBP GBP
In one year or less (10,426) (1,372)
Between one and five
years (15,663) (332)
(26,089) (1,704)
========== ==========
Finance lease liabilities are effectively secured as
the rights to the leased asset revert to the lessor
in the event of default.
8. Provisions
Warranty Dilapidations
provision provision Total
GBP GBP
At 1 September
2017 41,575 59,478 101,053
Arising during
the year 37,958 - 37,958
Utilised during
the year (37,958) - (37,958)
At 30 June 2018 41,575 59,478 101,053
------------ --------------- ------------
Arising during
the period 4,000 - 4,000
Utilised during
the period - - -
At 30 June 2019 45,575 59,478 105,053
============ =============== ============
2019 2018
GBP GBP
Non-Current 105,053 101,053
105,053 101,053
=============== ============
Warranty provision
The Company makes provision for potential future warranty
claims on kitchens & bedrooms sold. This provision
is reviewed and adjusted annually based on the levels
of turnover achieved and the claims record in the same
period.
Dilapidations
provision
The Company makes such provision for dilapidations
relating to its leasehold showroom estate as it considers
necessary based on the length of the remaining term
for each showroom, the future plans for each showroom
and based on this, review independent professional
advice as to the costs of exiting a site.
9. Dividends
The Directors do not recommend payment of a dividend.
10. Share Based Payments
2019 2018
GBP GBP
Share based payments
expense 1,316 -
----------- ----------- ------------
The charge relates entirely to equity-settled share
based payment transactions.
During the year ended 30 June 2019 the Company granted
options over 26,215,931 ordinary shares of 0.1 pence
each in the Company ("Ordinary Shares") at an exercise
price of 1 pence per Ordinary Share to all employees
and Directors of the Company under the Company's Unapproved
and EMI Share Option Plan ("Option Plan").
Performance conditions apply to the vesting of options
under the Option Plan that are linked to the Company's
future profit and share price performance. In addition,
the Option Plan includes a hurdle criteria which stipulates
that no Ordinary Shares under the share price performance
criteria will vest until the share price of an Ordinary
Share reaches 3 pence.
The Option Plan was approved by shareholders at the
2018 Annual General Meeting and the principal terms
of the Option Plan were summarised in Appendix 1 to
the 2018 Notice of AGM available on the Company's website
www.john-lewis.co.uk.
The Option Plan was approved by shareholders at the
Company's Annual General Meeting on 11 December 2018.
The Company has calculated charges for the share option
awards using Monte Carlo and Binomial models. Volatility
and risk free rates have been calculated for each share
option award based on expected volatility over the vesting
period and current risk free rates at the time of each
award. Volatility assumptions are based on historic
volatility for the Company's share price over 4 years.
Assumptions for future profitability have been based
on management estimates.
The performance conditions attached to the share options
are as follows:
AIM listed share price (per Percentage of the Award
Ordinary Share) which vests
--------------------------------------
> GBP0.03 9.375%
> GBP0.04 9.375%
> GBP0.05 9.375%
> GBP0.06 9.375%
> GBP0.07 9.375%
> GBP0.08 9.375%
> GBP0.09 9.375%
> GBP0.10 9.375%
---------------------------------------------------------- --------------------------------------
If the AIM listed share price has reached GBP0.03 or
higher
--------------------------------------------------------------------------------------------------
Profit before Tax (in any 12-month Percentage of the Award
statutory accounting period) which vests
---------------------------------------------------------- --------------------------------------
> GBP200k 5.00%
> GBP400k 5.00%
> GBP500k 5.00%
> GBP600k 5.00%
> GBP700k 5.00%
---------------------------------------------------------- --------------------------------------
Assumptions used in the valuation of share option awards
during the year were as follows:
Share
price
at date IFRS2
of award fair value
/ exercise Risk Option per share
Award price Expected free Expected life in option
date (pence) volatility rate dividends years (pence)
25 March 0.6 2.6 - 0.125
2019 / 1.0 50% 1.02% - 6.9 - 0.229
Share and share option awards outstanding
As at 30 June 2019 all prior year share and share option
awards had vested or lapsed. The share options awarded
during the year under the Option Plan were as follows:
Scheme Exercise Vesting Number Number Number Outstanding
and date price date awarded lapsed exercised at 30
of award June 2019
--------------- ------------- ----------- ----------- -----------
Option Variable
Plan but no
25 March less than
2019 1 pence 2 years 26,215,931 - - 26,215,931
-------------- -------------- ------------- ----------- ----------- ----------- ------------
The weighted average remaining contractual life of outstanding
share options is 9.5 years. The number of exercisable
share options at 30 June 2019 was nil.
11. Posting of Accounts
Copies of the statutory accounts for the financial period ended
30 June 2019 will be posted shortly to shareholders with the notice
of the Annual General Meeting. An electronic copy will be available
on the Company's website www.john-lewis.co.uk.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR FFAFEUFUSEDE
(END) Dow Jones Newswires
December 19, 2019 07:43 ET (12:43 GMT)
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