Full Year Results Announcement
Results announcement
Results for announcement to the market
Name of issuer BRISCOE GROUP LIMITED
Reporting Period Full Year (52 weeks) – 1 February 2021 to 30 January 2022
Previous Reporting Period Full Year (53 weeks) – 27 January 2020 to 31 January 2021
Currency New Zealand Dollars
Amount (000s) Percentage change
Revenue from continuing operations $744,450 +6.1%
Total Revenue $744,450 +6.1%
Net profit/(loss) from continuing
operations
$ 87,909 +20.1%
Total net profit/(loss) $ 87,909 +20.1%
Final Dividend
Amount per Quoted Equity Security $ 0.15500000
Imputed amount per Quoted Equity
Security
$ 0.06027778
Record Date 24 March 2022
Dividend Payment Date 31 March 2022
Current period Prior comparable period
Net tangible assets per Quoted Equity
Security
$ 1.3334 $ 1.1482
A brief explanation of any of the
figures above necessary to enable the
figures to be understood
Please refer to the Commentary and the audited financial
statements released in conjunction with this announcement.
Earnings before interest and tax (EBIT) is a non-GAAP measure.
Authority for this announcement
Name of person
authorised to make
this announcement
Geoff Scowcroft
Contact person for this announcement Rod Duke
Contact phone number + 64 9 815 3737
Contact email address rod.duke@briscoegroup.co.nz
Date of release through MAP
16/03/2022
Audited financial statements accompany this announcement.
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Briscoe Group Posts Record Profit and Sales
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights for the full year ended 30 January 2022:
• Total sales $744.4 million, +6.08%
• Gross profit $340.6 million, +10.92%
• Gross profit margin 45.76% vs 43.76% last year
• Online sales growth, +21.01%
• Online sales as mix of total Group sales, 21.47%
• Net profit after tax (NPAT) $87.9 million, +20.10%
• Final Dividend 15.5 cps
• Total Dividend for the year 27.0 cps,+20.0% (excluding the special dividend paid in December
2020).
The directors of Briscoe Group Limited announce a record net profit after tax (NPAT) of $87.91 million for
the year ending 30 January 2022, a 20.10% increase on the $73.20 million reported for the previous year.
Board Chair, Dame Rosanne Meo announced that the directors have resolved to pay a final dividend of
15.5 cents per share (cps). The dividend is fully imputed and, when added to the interim dividend of 11.5cps,
brings the total dividend for the year to 27.0cps, an increase of 20.00% on the previous year (excluding the
special dividend paid in December 2020). The final dividend will be paid on 31 March 2022. The share
register will close to determine entitlements to the dividend at 5pm on 24 March 2022. The Company’s
dividend policy is to pay out at least 60% of NPAT when calculated on a full-year basis. “We were delighted
to be able to reward our shareholders by increasing our interim dividend earlier this year and also now with
this final dividend announcement.
“The results the team continue to produce are quite remarkable. Their ability to navigate the business
through the ongoing uncertainty and disruption this year has been exemplary and has certainly differentiated
Briscoe Group from other retailers.”
Rod Duke, Group Managing Director, said: “We’re thrilled to announce record sales and profit for Briscoe
Group in a year which has, incredibly, proved just as tumultuous as the previous. After posting very strong
first-half results, it was extremely pleasing to be able to consolidate the full year with a solid second-half
performance. Not only were our Auckland stores shut for a total of 84 days during this period (and all others
for at least 21), but last year’s second half also contained an additional week of trading as well as
experiencing a resurgence in sales from the retail recovery post the first national lockdown.
“I’m immensely proud of the commitment and effort shown by the entire Briscoe Group team. We have a
strong core business and with our strategic plan initiatives now contributing to profitability, we have a solid
foundation to continue the strong performance achieved this year.”
The earnings were generated on sales revenue of $744.4 million, an increase of 6.08% on the $701.8 million
generated for the previous year which included an additional week of trading. Adjusting for this additional
week, Group sales grew by 7.97% for the year ended 30 January 2022.
2
Gross Margin dollars increased 10.92% for the period with gross margin percentage increasing from 43.76%
to 45.76%. Rod Duke said, “To improve again on last year’s step-change in gross margin percentage is a
massive highlight for us and a result of both external conditions and internal initiatives. As previously
reported, the disruptions to trading from the pandemic accelerated our plans in relation to optimising margin
and these combined with the opportunities identified from our ongoing strategic programme have
significantly enhanced the Group’s margin performance. We have made significant improvements in relation
to optimising ordering as well as the allocation of inventory and its flow into and through our stores.”
This year’s result includes $1.7 million (after tax) of dividends received from the Group’s investment in
Kathmandu Holdings Limited. No dividend was received last year as a result of Kathmandu’s response to
the COVID-19 situation
Inventories totaled $119.51 million at year-end, $28.04 million higher than the $91.47 million reported for
last year reflecting both cost and volume increases. Rod Duke said, “Part of this year’s success has been
our focus on ensuring the business has had sufficient inventory to satisfy demand. With the uncertainty
around national and international supply chains we committed to a strategy of securing product often months
in advance of traditional timings, to minimise the wide-spread and widely reported, supply chain disruptions.
This deliberate approach has resulted in a high level of inventory being carried during the year and we
expect this to continue throughout 2022, but it has unquestionably delivered in terms of sales and profit.
This was particularly true during this fourth quarter which contained the significant Black Friday and
Christmas promotional events which produced very pleasing results. Having sufficient inventory in the
current retail environment is a distinct competitive advantage, as is the strength of our supplier relationships
which have significantly assisted us to secure supply of product.
During the year $19.90 million of capital investment was made by the Group of which $9.66 million
represents development of property owned by the Group in Auckland and Silverdale. The balance of the
capital investment was for the fit-out of new and refurbished stores, online platform improvements, security
system upgrades and enhancements to system software and hardware.
Work also continued on a number of projects in relation to Group owned properties. The construction of a
new concept Briscoes Homeware store at 36 Taylors Road, Auckland was completed and the store opened
in early March. This allowed the introduction in April of a brand-new Rebel Sport store in the retail space on
the ground floor of the Support Office building at 1 Taylors Road, Morningside.
In addition, the Group’s development at Silverdale was completed and the new Briscoes Homeware and
Rebel Sport stores opened in November. Rod Duke said, “Trading results from both the Silverdale stores
have significantly exceeded expectations and feedback has been overwhelmingly positive. We’re extremely
pleased with all of the new stores opened this year and their success gives us confidence for further network
growth opportunities in relation to the refurbishment and/or establishment of new stores. In fact, work has
now started on upgrades to our Rebel Sport stores in Te Rapa and Albany which will incorporate many of
the ideas and concepts introduced in the new generation Silverdale and Morningside stores.
The Group’s online business again experienced significant growth especially with the move to the second
national lockdown in August and the subsequent prolonged closure of Auckland, Northland and Waikato
stores. During the second half of the year with the disruption of store closures, online sales represented
26.39% of total Group sales compared to 16.16% for the first half. Online sales for the full year accounted
for 21.47% of total Group sales, 21.01% above those for the previous year. Rod Duke said, “While the full
year mix was clearly influenced by store closures, we are confident that the “normalised” online portion of
our business is continuing to increase. This year we have implemented a number of system developments
and process improvements which have significantly improved both our fulfilment productivity and front-end
functionality.
“We continue to focus on progressing our strategic initiatives, which we see as critical to protecting the
foundation for growth moving forward. The programme of work focused on supply chain improvements has
progressed well this year with benefits to gross margin percentage very evident in this year’s result.
Optimising quantity and frequency of ordering, redirection of imported product landings between North and
South Island ports as well as smarter and more efficient reallocation of slow-moving product are all
examples of initiatives focused on optimising the availability and flow of the Group’s inventory.
“During the year we continued and commenced a number of other projects which have also contributed to
this year’s result. In relation to our online business, stage one of our digital picking initiative has significantly
improved the efficiency of in-store fulfilment and the introduction of the Emarsys customer engagement
platform has allowed us communicate in a much more personalised way with our online customers.
“Extending our product range with the introduction of new online products which are shipped direct from
suppliers has now been introduced across 15 suppliers. We are excited about the growth potential of this
initiative and the opportunity for us to offer additional products not held in-store or part of our traditional
range.
“The introduction of givex gift cards late last year replaced our paper-based gift card system giving us
greater flexibility and control around our gift card offer, including online redemption and also e-voucher
deployment. We have seen incremental sales of gift cards since their introduction. Easy-to-use in-store
kiosks have enabled customers to purchase products online that may be out of stock in-store and the
introduction of queue-busting mobile cashiers in stores during big sales events have been a welcome
addition to assisting customers to minimise their checkout wait-time.
“With the Omicron variant of COVID-19 now widespread throughout New Zealand we have seen a recent
decrease in footfall across our bricks and mortar network. As expected, we have also seen a significant
increase in the mix of Group sales being fulfilled online, although the transfer to online has not entirely
matched the decline experienced in our store network. However, from previous experiences, pandemic-
related constraints on trading have invariably led to a strong recovery from pent-up consumer demand and
we have no reason to believe that this won’t be the case again as the Omicron variant subsides.
“New Zealand retail in general remains highly sensitive to ongoing uncertainty and disruption whether it be
fallout from the ongoing pandemic, supply chain delays, currency fluctuations, interest rate hikes, labour
shortages, unpredictable consumer confidence etc. However, what is certain is the talent of our leadership
team and its focus on the continued success of the business. Notwithstanding the challenges ahead I’m
confident that we have the right programmes, initiatives and team in place to do just that.”
Group Chair Dame Rosanne Meo said, “Briscoe Group has proved its ability to navigate these uncertain
times, producing incredible results while at the same time balancing the interests of its team, customers,
suppliers and shareholders alike. This year’s results highlight yet again the Group’s ability to perform and
deliver improved performance during difficult trading conditions. On behalf of the Board, I would like to
acknowledge the great work done by the entire Briscoe Group team.”
Wednesday 16 March 2022
Contact for enquiries:
Rod Duke
Group Managing Director
Tel: + 64 9 815 3737
Briscoe Group Limited is a company incorporated in New Zealand and registered in Australia as a foreign company under the name Briscoe Group
Australasia Limited (ARBN 619 060 552). It is listed on the NZX Main Board and also the Australian Securities Exchange as a foreign exempt entity.
(NZX/ASX code: BGP).
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Briscoe Group Limited
For the 52 week period ended 30 January 2022
Briscoe Group Limited
Consolidated Financial Statements
For the period ended 30 January 2022
Briscoe Group Limited
Introduction and Table of Contents
For the 52 week period ended 30 January 2022
1
Introduction
These financial statements have been presented in a style which attempts to make them less
complex and more relevant to shareholders.
We have grouped the note disclosures into six sections:
1. Basis of Preparation
2. Performance
3. Operating Assets and Liabilities
4. Investments
5. Financing and Capital Structure
6. Other Notes
Each section sets out the accounting policies applied to the relevant notes.
The purpose of this format is to provide readers with a clearer understanding of the financial affairs of
the Group.
Accounting policies have been shown in shaded areas for easier identification.
Briscoe Group Limited
Introduction and Table of Contents
For the 52 week period ended 30 January 2022
2
Table of Contents
Consolidated Financial Statements
4
Consolidated Income Statement 5
Consolidated Statement of Comprehensive Income 6
Consolidated Balance Sheet 7
Consolidated Statement of Cash Flows 8
Consolidated Statement of Changes in Equity 10
Notes to the Consolidated Financial Statements:
1. Basis of Preparation 11
1.1 General Information 11
1.2 General Accounting Policies 11
2. Performance 13
2.1 Segment Information 13
2.2 Income and Expenses 15
2.3 Taxation 16
2.3.1 Taxation Income statement 16
2.3.2 Taxation Balance sheet 17
2.3.3 Imputation credits 18
2.4 Earnings Per Share 18
3. Operating Assets and Liabilities 19
3.1 Working Capital 19
3.1.1 Cash and cash equivalents 19
3.1.2 Trade and other receivables 19
3.1.3 Inventories 20
3.1.4 Trade and other payables 20
3.2 Property, Plant and Equipment 22
3.3 Intangible Assets 23
3.4 Leases 24
3.4.1 Right-of-use assets 25
3.4.2 Lease liabilities 25
3.4.3 Lease liabilities maturity analysis 26
3.4.4 Lease related expenses included in the income statement 26
3.4.5 Lease payments included in the cashflow statement 26
4. Investments 27
4.1 Investment in Equity Securities 27
Briscoe Group Limited
Introduction and Table of Contents
For the 52 week period ended 30 January 2022
3
5. Financing and Capital Structure 28
5.1 Interest Bearing Liabilities 28
5.2 Financial Risk Management 28
5.2.1 Derivative financial instruments 28
5.2.2 Credit risk 29
5.2.3 Interest rate risk 29
5.2.4 Liquidity risk 29
5.2.5 Market risk 31
5.2.6 Sensitivity analysis 32
5.3 Equity 33
5.3.1 Capital risk management 33
5.3.2 Share capital 34
5.3.3 Dividends 34
5.3.4 Reserves and retained earnings 35
6. Other Notes 36
6.1 Related Party Transactions 36
6.1.1 Parent and ultimate controlling company 36
6.1.2 Key management personnel 36
fees and dividends 37
6.2 Employee Equity-Based Remuneration 38
6.2.1 Equity-settled performance rights 38
6.2.2 Equity-based remuneration reserve 40
6.3 Contingent Liabilities 40
6.4 Covid-19 40
6.5 Events After Balance Date 41
6.6 New Accounting Standards 41
Independent Auditors Report 42
Briscoe Group Limited
Consolidated Income Statement
For the 52 week period ended 30 January 2022
5
Period ended Period ended
30 January 2022 31 January 2021
Notes $000 $000
Sales revenue 744,450 701,797
Cost of goods sold (403,808) (394,681)
Gross profit 340,642 307,116
Other operating income 2.2 3,571 139
Store expenses (116,366) (110,845)
Administration expenses (91,379) (80,524)
Earnings before interest and tax 136,468 115,886
Finance income 399 421
Finance cost
(14,495) (14,888)
Net finance cost 5.1 (14,096) (14,467)
Profit before income tax 122,372 101,419
Income tax expense 2.3.1 (34,463) (28,220)
Net profit attributable to shareholders 87,909 73,199
Earnings per share for profit attributable to
shareholders:
Basic earnings per share (cents) 2.4 39.5 32.9
Diluted earnings per share (cents) 2.4 39.4 32.8
The above consolidated income statement should be read in conjunction with the accompanying notes.
Briscoe Group Limited
Consolidated Statement of Comprehensive Income
For the 52 week period ended 30 January 2022
6
Period ended Period ended
30 January 2022 31 January 2021
Notes $000 $000
Net Profit attributable to shareholders 87,909 73,199
Other comprehensive income:
Items that will not be subsequently reclassified to
profit or loss:
Change in value of investment in equity securities 4.1 2,880 (92,174)
Items that may be subsequently reclassified to profit
or loss:
Fair value loss/(gain) recycled to income statement from
cashflow hedge reserve 2,912 (608)
Fair value gain/(loss) taken to the cashflow hedge
reserve 3,812 (2,084)
Deferred tax on fair value (loss)/gain taken to income
statement from cashflow hedge reserve 2.3.2 (816) 170
Deferred tax on fair value (gain)/loss taken to cashflow
hedge reserve
2.3.2
(1,067)
584
Total other comprehensive income/(loss) 7,721 (94,112)
Total comprehensive income/(loss) attributable to
shareholders 95,630 (20,913)
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
Briscoe Group Limited
Consolidated Balance Sheet
As at 30 January 2022
7
30 January 2022 31 January 2021
Notes $000 $000
ASSETS
Current assets
Cash and cash equivalents 3.1.1 102,481 100,417
Trade and other receivables 3.1.2 5,082 3,534
Inventories 3.1.3 119,514 91,473
Derivative financial instruments 5.2.5 3,137 32
Total current assets 230,214 195,456
Non-current assets
Property, plant and equipment 3.2 125,897 117,397
Intangible assets 3.3 2,563 3,608
Right-of-use assets 3.4.1 250,789 255,850
Deferred tax 2.3.2 14,184 14,750
Investment in equity securities 4.1 64,810 61,930
Total non-current assets 458,243 453,535
TOTAL ASSETS 688,457 648,991
LIABILITIES
Current liabilities
Trade and other payables 3.1.4 80,785 80,952
Lease liabilities 3.4.3 19,025 19,277
Taxation payable 2.3.2 18,266 12,413
Derivative financial instruments 5.2.5 - 3,378
Total current liabilities 118,076 116,020
Non-current liabilities
Trade and other payables 3.1.4 875 930
Lease liabilities 3.4.3 270,193 272,994
Total non-current liabilities 271,068 273,924
TOTAL LIABILITIES 389,144 389,944
NET ASSETS 299,313 259,047
EQUITY
Share capital 5.3.2 61,992 61,839
Cashflow hedge reserve 5.2.5 2,384 (2,457)
Equity-based remuneration reserve 6.2.2 566 444
Other reserves 5.3.4 (23,043) (25,923)
Retained earnings 257,414 225,144
TOTAL EQUITY 299,313 259,047
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
Briscoe Group Limited
Consolidated Statement of Cash Flows
For the 52 week period ended 30 January 2022
8
Period ended Period ended
30 January 2022 31 January 2021
Notes $000 $000
OPERATING ACTIVITIES
Cash was provided from
Receipts from customers
744,320 701,574
Rent received
25 15
Dividends received
2,407 3
Interest received 342 450
Insurance recovery
135 22
747,229 702,064
Cash was applied to
Payments to suppliers
(487,274) (450,182)
Payments to employees
(90,413) (80,006)
Interest paid
(14,495) (14,889)
Net GST paid (28,683) (27,508)
Income tax paid
(29,868) (22,913)
(650,733) (595,498)
Net cash inflows from operating activities
96,496 106,566
INVESTING ACTIVITIES
Cash was provided from
Proceeds from sale of property, plant and equipment
22 1,996
22 1,996
Cash was applied to
Purchase of property, plant and equipment
3.2
(18,157) (25,540)
Purchase of intangible assets (1,740) (1,889)
Investment in equity securities 4.1
- -
(19,897) (27,429)
Net cash outflows from investing activities
(19,875) (25,433)
FINANCING ACTIVITIES
Cash was provided from
Issue of new shares 5.3.2
- 919
Net proceeds from borrowings - -
- 919
Cash was applied to
Dividends paid 5.3.3 (55,639) (33,370)
Lease liability payments (19,159) (15,588)
(74,798) (48,958)
Net cash outflows from financing activities
(74,798) (48,039)
Net increase in cash and cash equivalents
1,823 33,094
Cash and cash equivalents at beginning of period
100,417 67,414
Effect of exchange rate changes on cash and cash equivalents
241 (91)
Cash and cash equivalents at period end
3.1.1 102,481 100,417
Briscoe Group Limited
Consolidated Statement of Cash Flows (continued)
For the 52 week period ended 30 January 2022
9
RECONCILIATION OF NET CASH FLOWS FROM
OPERATING ACTIVITIES TO REPORTED NET PROFIT
Period ended Period ended
30 January 2022
31 January 2021
$000
$000
Reported net profit attributable to shareholders
87,909 73,199
Items not involving cash flows
Depreciation and amortisation expense 32,904 31,845
Bad debts and movement in doubtful debts
(69) (40)
Inventory adjustments
4,857 1,563
Amortisation of equity-based remuneration
217 183
(Gain)/loss on disposal/surrender of assets
(768) 501
37,141 34,052
Impact of changes in working capital items
Decrease (increase) in trade and other receivables (1,479) 39
Decrease (increase) in inventories
(32,898) (5,622)
Increase (decrease) in taxation payable
5,853 7,518
Increase (decrease) in trade payables (6,875) (9,974)
Increase (decrease) in other payables and accruals
6,845 7,354
(28,554) (685)
Net cash inflow from operating activities
96,496 106,566
NET DEBT RECONCILIATION
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Cash and cash equivalents
Cash and cash equivalents at beginning of period 100,417 67,414
New increase in cash and cash equivalents 1,823 33,094
Effect of exchange rate changes 241 (91)
Cash and cash equivalents at period end
102,481
100,417
Lease liabilities
Opening value (292,271) (296,408)
Cash flows 19,159 15,588
Lease acquisitions (19,350) (13,126)
Lease surrenders 3,244 1,675
Total lease liabilities at period end
(289,218)
(292,271)
Net debt reconciliation
(186,737)
(191,854)
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Briscoe Group Limited
Consolidated Statement of Changes in Equity
For the 52 week period ended 30 January 2022
10
Notes Share Cashflow Equity-Based Other Retained Total
Capital Hedge Remuneration Reserves Earnings Equity
Reserve Reserve
$000 $000 $000 $000 $000 $000
Balance at 26 January 2020
60,752 (519) 841
66,251
184,794 312,119
Net profit attributable to shareholders for the period
- - - - 73,199
73,199
Other comprehensive income:
Change in value of investment in equity securities
4.1
- - - (92,174) - (92,174)
Net fair value loss taken through cashflow hedge reserve
- (1,938) - - - (1,938)
Total comprehensive (loss)/income for the period
- (1,938) -
(92,174) 73,199 (20,913)
Transactions with owners:
Dividends paid
5.3.3
- - - - (33,370) (33,370)
Performance rights charged to income statement
6.2.1
- - 183 - - 183
Share options exercised
5.3.2/6.2
1,087 - (168) - - 919
Transfer for share options lapsed and forfeited
6.2.2
- - (521) - 521 -
Deferred tax on equity-based remuneration
2.3.2/6.2.2
- - 109 - - 109
Balance at 31 January 2021
61,839 (2,457) 444 (25,923) 225,144 259,047
Net profit attributable to shareholders for the period
- - - - 87,909 87,909
Other comprehensive income:
Change in value of investment in equity securities
4.1
- - - 2,880 - 2,880
Net fair value loss taken through cashflow hedge reserve
- 4,841 - - - 4,841
Total comprehensive (loss)/income for the period
- 4,841 - 2,880 87,909 95,630
Transactions with owners:
Dividends paid
5.3.3
- - - - (55,639) (55,639)
Performance rights charged to income statement
6.2.1
- - 217 - - 217
Performance rights vested
5.3.2/6.2
153 - (153) - - -
Deferred tax on equity-based remuneration
2.3.2/6.2.2
- - 58 - - 58
Balance at 30 January 2022
61,992 2,384 566 (23,043) 257,414 299,313
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
1. Basis of Preparation
For the 52 week period ended 30 January 2022
11
This section presents a summary of information considered relevant and material to assist the
reader in understanding the foundations on which the financial statements as a whole have been
compiled. Accounting policies specific to notes shown in other sections are included as part of
that particular note.
1.1 General Information
Briscoe Group Limited (the Company) and its subsidiaries (together the Group) is a retailer of homeware and
sporting goods. The Company is a limited liability company incorporated and domiciled in New Zealand and is listed
on the New Zealand Stock Exchange (NZX). Briscoe Group Limited is registered under the Companies Act 1993
and is an FMC Reporting Entity under Part 7 of the Financial Markets Conduct Act 2013. The address of its
registered office is 1 Taylors Road, Morningside, Auckland. The Company is registered in Australia as a foreign
company under the name Briscoe Group Australasia Limited and is listed on the Australian Securities Exchange as
a foreign exempt entity. (NZX / ASX code: BGP).
The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the
Financial Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
These audited consolidated financial statements have been approved for issue by the Board of Directors on 16
March 2022.
1.2 General Accounting Policies
These consolidated financial statements have been prepared in accordance with Generally Accepted Accounting
Practice (GAAP). They comply with New Zealand equivalents to International Financial Reporting Standards (NZ
IFRS) and other applicable Financial Reporting Standards, as appropriate for for-profit entities. The consolidated
financial statements also comply with International Financial Reporting Standards (IFRS).
The consolidated financial statements are presented in New Zealand dollars which is t
currency and thtion currency. All financial information has been presented in thousands, unless
otherwise stated.
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies
have been consistently applied to all the periods presented, unless otherwise stated.
Entities reporting
The consolidated financial statements reported are for the consolidated Group which is the economic entity
comprising Briscoe Group Limited and its subsidiaries. The Group is designated as a for-profit entity for the
purposes of complying with GAAP.
Reporting period
These consolidated financial statements are in respect of the 52-week period 1 February 2021 to 30 January 2022
and provide a balance sheet as at 30 January 2022. The comparative period is in respect of the 53-week period 27
January 2020 to 31 January 2021. The Group operates on a weekly trading and reporting cycle resulting in 52
weeks for most years with a 53-week period occurring once every 5-6 years.
Principles of consolidation
Subsidiaries are all entities over which the Company has control. The Company controls an entity when the
Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Company. They are deconsolidated from the date that control ceases.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
1. Basis of Preparation
For the 52 week period ended 30 January 2022
12
Intercompany transactions, balances and unrealised gains or losses on transactions between Group companies are
eliminated. Accounting policies of subsidiaries are changed when necessary to ensure consistency with the policies
adopted by the Company.
Subsidiaries Activity 2022 Interest 2021 Interest
Briscoes (New Zealand) Limited Homeware retail 100% 100%
The Sports Authority Limited (trading as Rebel Sport) Sporting goods retail 100% 100%
Rebel Sport Limited Name protection 100% 100%
Living and Giving Limited Name protection 100% 100%
All companies above are incorporated in New Zealand and have a balance date consistent with that of the
Company as outlined in the accounting policies.
Historical cost convention
These financial statements have been prepared under the historical cost convention, as modified by the revaluation
of certain assets as identified in specific accounting policies detailed throughout these financial statements.
Critical accounting judgements and estimates
In the process of applying the Gaccounting policies and the application of accounting standards, a number of
estimates and judgements have been made. The estimates and underlying assumptions are based on historical
experience and adjusted for current market conditions and other factors, including expectations of future events
that are considered to be reasonable under the circumstances. If outcomes within the next financial period are
significantly different from assumptions, this could result in adjustments to carrying amounts of the asset or liability
affected. Further explanation as to estimates and assumptions made by the Group can be found in the notes to the
financial statements:
Areas of judgement and estimation Note
Inventories 3.1.3
Leases 3.4
Foreign currency translation
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the income statement, except when deferred in which case they are recognised in
other comprehensive income as qualifying cash flow hedges.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
13
This section reports on the results and performance of the Group, providing additional
information about individual items, including performance by operating segment, revenue,
expenses, taxation and earnings per share.
2.1 Segment Information
An operating segment is a component of an entity that engages in business activities which earns revenue and
incurs expenses and for which the chief operating decision maker (CODM) reviews the operating results on a regular
basis and makes decisions on resource allocation. The Group has determined its CODM to be the group of
executives comprising the Managing Director, Chief Operating Officer and Chief Financial Officer.
The Group is organised into two reportable operating segments, namely homeware and sporting goods, reflecting
the different retail sectors within which the Group operates. The Company is considered not to be a reportable
operating segment. Eliminations and unallocated amounts as shown below are primarily attributable to the
Company. There were no inter-segment sales in the period (2021: Nil).
Information regarding the operations of each reportable operating segment is included below. Segment profit
represents the profit earned by each segment and is extracted from the income statements associated with the two
trading subsidiary companies, Briscoes (New Zealand) Limited and The Sports Authority Limited (trading as Rebel
Sport). Earnings before interest and tax (EBIT) is a non-GAAP measure and used by CODM to assess the
performance of the operating segments. This measure should not be viewed in isolation, nor considered as a
substitute for measures reported in accordance with NZ IFRS. This non-GAAP financial measure may not be
comparable to similarly titled amounts reported by other companies.
For the period ended 30 January 2022
Homeware
Sporting
goods
Eliminations/
Unallocated
Total Group
$000 $000 $000 $000
INCOME STATEMENT
Total sales revenue
460,887 283,563 - 744,450
Gross profit
208,440 132,202 - 340,642
Earnings before interest and tax
73,771 57,687 5,010 136,468
Finance income
96 281 22 399
Finance cost
(9,569) (4,804) (122) (14,495)
Net finance costs
(9,473) (4,523) (100) (14,096)
Income tax expense
(18,171) (14,889) (1,403) (34,463)
Net profit after tax
46,127 38,275 3,507 87,909
BALANCE SHEET ITEMS:
Assets
385,205 246,514 56,738
1.
688,457
Liabilities
266,122 141,074 (18,052) 389,144
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
14
OTHER SEGMENTAL ITEMS:
Acquisitions of property, plant and equipment,
intangibles and investments
15,019 4,878 - 19,897
Depreciation and amortisation expense
21,170 11,734 - 32,904
$000
1. Investment in equity securities
67,593
Intercompany eliminations
(27,524)
Other balances
16,669
56,738
For the period ended 31 January 2021
Homeware
Sporting
goods
Eliminations/
Unallocated
Total Group
$000 $000 $000 $000
INCOME STATEMENT
Total sales revenue
439,234
262,563 - 701,797
Gross profit
192,293 114,823 - 307,116
Earnings before interest and tax
66,979 46,495 2,412 115,886
Finance income
72 333 16 421
Finance cost
(9,851) (4,925) (112) (14,888)
Net finance costs
(9,779) (4,592) (96) (14,467)
Income tax expense
(15,821) (11,736) (663) (28,220)
Net profit after tax
41,379
30,167 1,653
73,199
BALANCE SHEET ITEMS:
Assets 363,231 217,358 68,402
1.
648,991
Liabilities
254,506 135,178 260 389,944
OTHER SEGMENTAL ITEMS:
Acquisitions of property, plant and equipment,
intangibles and investments
23,497 3,931 - 27,428
Depreciation and amortisation expense
20,333 11,512 - 31,845
$000
1. Investment in equity securities 61,930
Intercompany eliminations (2,193)
Other balances 8,665
68,402
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
15
2.2 Income and Expenses
Revenue recognition
Revenue comprises the fair value of consideration received or receivable for the sale of goods and services, net of
Goods and Services Tax (GST), and discounts and after eliminating sales within the Group. Revenue is recognised
as follows:
Sales of goods - retail
For all sales, control is considered to pass to the customer at the point when the customer can use or otherwise
benefit from the goods and services. For in-store sales, control passes to the customer at point of sale. For
online sales, the order along with delivery to the customer are considered to comprise a single performance
obligation, therefore control is considered to pass to the customer on delivery of the goods. Retail sales are
predominantly by credit card, debit card or in cash.
Rental income
Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the period of
the lease.
Interest income
Interest income is recognised on a time-proportionate basis using the effective interest method.
Dividend income
Dividend income is recognised when the right to receive the dividend is established.
Profit before income tax includes the following specific income and expenses:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Income
Rental income 25 15
Dividends received 2,407 3
Insurance recovery 135 22
Gain on lease surrender 1,005 99
Expenses
Depreciation of property, plant and equipment 9,398 8,400
Amortisation of software costs 1,334 1,745
Depreciation of right-of-use assets 22,172 21,700
Interest on leases 14,218 14,772
Operating lease rental expense 129 27
Wages, salaries and other short-term benefits 93,069 85,352
Equity-based remuneration (refer also Note 6.2) 217 183
Amounts paid to auditors:
Statutory Audit 134 108
Half year review 33 26
Other services - -
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
16
2.3 Taxation
Current and deferred income tax
The income tax expense for the period is the tax payable on tincome based on the
income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
balance sheet date in New Zealand, being the country where the Group operates and generates taxable income.
The Group periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected
to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet
date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available
against which the temporary differences can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities
are offset when the entity has a legal enforceable right to offset and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Goods and Services Tax (GST)
The income statement, statement of comprehensive income and statement of cash flows have been prepared so
that all components are stated exclusive of GST. All items in the balance sheet are stated net of GST, with the
exception of trade receivables and trade payables, which include GST invoiced.
2.3.1 Taxation Income statement
The total taxation charge in the income statement is analysed as follows:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
(a) Income tax expense
Current tax expense:
Current tax 34,669 30,311
Adjustments for prior periods 1,052 120
35,721 30,431
Deferred tax expense:
Decrease in future tax benefit current period (205) (1,408)
Tax effect of disposal of buildings - (203)
Tax effect of legislative changes - (478)
Adjustments for prior periods (1,053) (122)
(1,258) (2,211)
Total income tax expense 34,463 28,220
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
17
(b) Reconciliation of income tax expense to tax rate applicable to profits
Profit before income tax expense 122,372 101,419
Tax at the corporate rate of 28% (2021: 28%) 34,264 28,397
Tax effect of amounts which are either non-deductible or non-
assessable in calculating taxable income: 200 506
Tax effect of disposal of buildings - (203)
Tax effect of legislative changes - (478)
Prior period adjustments (1) (2)
Total income tax expense 34,463 28,220
The Group has no tax losses (2021: Nil) and no unrecognised temporary differences (2021: Nil).
2.3.2 Taxation Balance sheet
(a) Deferred Taxation
(b) Taxation payable
The following is the analysis of the movements in the taxation payable balance during the current and prior period:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Movements:
Balance at beginning of period (12,413) (4,895)
Current tax (35,721) (30,431)
Tax paid 29,488 22,675
Foreign investor tax credit (FITC) 380 238
Balance at end of period (18,266) (12,413)
The following are the major deferred taxation liabilities and assets recognised by the Group and movements
thereon during the current and prior period:
Depreciation Provisions
Derivative
financial
instruments
Net lease
liability Total
$000 $000 $000 $000 $000
At 26 January 2020 (98) 3,058 202 8,514 11,676
Credited to the income statement 188 339 - 1,684 2,211
Credited to equity - 109 - - 109
Net credited to other comprehensive income - - 754
1.
- 754
At 31 January 2021 90 3,506 956 10,198 14,750
Credited to the income statement 94 602 - 562 1,258
Credited to equity - 58 - - 58
Net credited to other comprehensive income - - (1,882)
1.
- (1,882)
At 30 January 2022
184
4,166 (926)
10,760
14,184
1. Net credited to other comprehensive income comprises deferred tax on fair value loss taken to income statement
of $815,392 (2021: deferred tax on fair value gain of $170,211) and deferred tax on fair value gain taken to cash
flow hedge reserve of $1,067,056 (2021: deferred tax on fair value loss of $583,545).
Briscoe Group Limited
Notes to the Consolidated Financial Statements
2. Performance
For the 52 week period ended 30 January 2022
18
2.3.3 Imputation credits
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Imputation credits available for use in
subsequent accounting periods 123,557 107,174
The above amounts represent the balance of the imputation account as at the end of the reporting period, adjusted
for:
Imputation credits that will arise from the payment of the provision for income tax,
Imputation debits that will arise from the payment of dividends recognised as liabilities at the reporting date, and
Imputation credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The consolidated amounts include imputation credits that would be available to the Company if subsidiaries paid
dividends.
2.4 Earnings Per Share
Earnings per share (EPS) is the amount of post-tax profit attributable to each share.
Basic EPS is computed by dividing the net profit attributable to shareholders by the weighted average number of
ordinary shares on issue during the period.
Diluted EPS adjusts for any commitments the Group has to issue shares in the future that would decrease the Basic
EPS. These are in the form of performance rights. Diluted EPS is therefore computed by dividing the net profit
attributable to shareholders by the weighted average number of ordinary shares on issue during the period, adjusted
to include the potentially dilutive effect if performance rights to issue ordinary shares were exercised and converted
into shares.
Period ended Period ended
30 January 2022 31 January 2021
Net profit attributable to shareholders
$000 87,909 73,199
Basic
Weighted average number of ordinary shares on issue (thousands) 222,549 222,340
Basic earnings per share 39.5 cents 32.9 cents
Diluted
Weighted average number of ordinary shares on issue adjusted for
performance rights issued but not exercised (thousands) 222,837 223,142
Diluted earnings per share 39.4 cents 32.8 cents
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
19
This section reports the assets used to generate the Grou performance and the
liabilities incurred as a result. Liabilities relating to the Grouping activities are addressed
in note 5. Assets and liabilities in relation to deferred taxation and taxation payable are shown in
note 2.3. The carrying amounts of financial assets and liabilities are equivalent to their fair value
unless otherwise stated.
3.1 Working Capital
Working capital represents the assets and liabilities the Group generates through its trading activity. The Group
therefore defines working capital as cash, trade and other receivables, inventories and trade and other payables.
3.1.1 Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other short-
term, highly liquid investments with original maturities of three months or less, that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of changes in value.
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Cash at bank or in hand 102,481 100,417
As at 30 January 2022 the Group held foreign currency equivalent to NZ$2.541 million (2021: NZ$0.735 million)
which is included in the table above. The foreign currency in which the Group deals primarily is the US Dollar.
3.1.2 Trade and other receivables
Trade receivables arise from sales made to customers on credit or through the collection of purchasing rebates
from suppliers not otherwise deducted from supplie payable accounts. Trade receivables are recognised initially
at the value of the invoice sent to the customer (fair value) and subsequently at the amounts considered
recoverable (amortised cost). Trade receivable balances are reviewed on an on-going basis.
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Trade receivables 426 431
Prepayments 2,520 1,937
Other receivables 2,136 1,166
Total trade and other receivables 5,082 3,534
No interest is charged on trade receivables.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
20
3.1.3 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using a weighted average
method and includes expenditure incurred in acquiring the inventories and bringing them to their existing location
and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the
estimated costs necessary to make the sale.
Following the publication of IFRS Interpretations Committee (IRFRIC) agenda decision on Costs Necessary to Sell
Inventories, in June 2021, the Group has reconsidered its accounting treatment in relation to which costs to include
when determining the net realisable value of inventory. The Groups reconsideration of this accounting treatment
has not resulted in any adjustment to how it determines net realisable value.
The Group assesses the likely residual value of inventory. Stock provisions are recognised for inventory which is
expected to sell for less than cost and also for the value of inventory likely to have been lost to the business
through shrinkage between the date of the last applicable stocktake and balance date. In recognising the provision
for inventory, judgement has been applied by considering a range of factors including historical results, current
trends and specific product information from buyers.
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Finished goods 125,109 96,027
Inventory provisions and adjustments (5,595) (4,554)
Net inventories 119,514 91,473
During the period the group recognised $394.4 million (2021: $385.6 million) of inventory as an
expense within cost of goods sold.
3.1.4 Trade and other payables
Trade and other payable amounts represent liabilities for goods and services provided to the Group prior to the
end of a financial period, which are unpaid.
Trade payables
Trade payables are recognised at the value of the invoice received from a supplier (fair value). The carrying value
of trade payables is considered to approximate fair value as the amounts are unsecured and are usually paid within
60 days of recognition.
Employee entitlements
Wages and salaries, annual leave and sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave
expected to be settled within 12 months of the reporting date are recognised in other payables in respect of
employees' services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and
measured at the rates paid or payable. The liability for employee entitlements is carried at the present value of the
estimated future cash flows.
Bonus plans
A liability is recognised for bonuses payable to employees where a contractual obligation arises for an agreed level
of payment dependent on both company and individual performance criteria.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
21
Long service leave
The liability for long service leave is recognised as a non-current liability and measured as the present value of
expected future payments to be made in respect of services provided by employees up to the reporting date using
the projected unit credit method. Consideration is given to expected future wage and salary levels, history of
employee departure rates and periods of service. Expected future payments are discounted using market yields at
the reporting date on government bonds with terms to maturity that match, as closely as possible, the estimated
future cash outflows.
Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation.
Provisions relate to returns in relation to sales of goods directly imported by the Group and are expected to be fully
utilised within the next twelve months. Provisions relating to inventory, receivables and employee benefits have
been treated as part of those specific balances. There are no other provisions relating to these financial statements.
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Trade payables 43,585 50,460
Employee entitlements 18,465 15,809
Other payables and accruals 19,458 15,516
Provisions 152 97
Total trade and other payables 81,660 81,882
Shown in balance sheet as:
Current liabilities
80,785 80,952
Non-current liabilities
875 930
Total trade and other payables 81,660 81,882
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
22
3.2 Property, Plant and Equipment
All property, plant and equipment is stated at historical cost less depreciation and any impairment adjustments.
Historical cost includes expenditure that is directly attributable to the acquisition of property, plant and equipment.
Costs are included in an asount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with an item will flow to the Group and the cost of an item can be
measured reliably.
ual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
carrying amount is written down immediately to its recoverable amount if its carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals of assets are determined by comparing proceeds with carrying amounts. These
gains and losses are included in the income statement.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their
cost, net of their estimated residual values, over their estimated useful lives, as follows:
- Freehold buildings 33 years
- Plant and equipment 3 - 15 years
Property, plant and equipment is reviewed whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which an
amount exceeds its recoverable amount. The recoverable amount is the higher of an assetir value less costs to
sell, or value in use.
The Group assesses whether there are indications, for example loss-making stores, for certain trigger events which
may indicate that an impairment in property, plant and equipment values exist at balance date.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
23
Land and
buildings
Plant and
equipment Total
$000 $000 $000
At 26 January 2020
Cost
74,853 85,857 160,710
Accumulated depreciation
(5,603) (57,842) (63,445)
Net book value
69,250 28,015 97,265
Period ended 31 January 2021
Opening net book value
69,250 28,015 97,265
Additions
18,504 7,036 25,540
Disposals
(263) (155) (418)
Reclassified as held-for-sale asset
3,410 - 3,410
Depreciation charge
(1,842) (6,558) (8,400)
Closing net book value
89,059 28,338 117,397
At 31 January 2021
Cost
96,010 89,175 185,185
Accumulated depreciation
(6,951) (60,837) (67,788)
Net book value
89,059 28,338 117,397
Period ended 30 January 2022
Opening net book value 89,059 28,338 117,397
Additions 9,658 8,499 18,157
Disposals - (259) (259)
Depreciation charge (2,324) (7,074) (9,398)
Closing net book value 96,393 29,504 125,897
At 30 January 2022
Cost 105,668 91,268 196,936
Accumulated depreciation (9,275) (61,764) (71,039)
Net book value 96,393 29,504 125,897
Capital commitments Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Capital commitments in relation to property, plant and
equipment at balance date not provided for in the
financial statements 3,913 7,458
1.
1. $6.5 million relates to building contracts for the development and construction of new retail premises at 36 Taylors Road, Auckland and also
at Silverdale, North Auckland.
3.3 Intangible Assets
Intangible assets are non-physical assets used by the Group to operate the business. Software costs have a finite
useful life. Software costs are capitalised and amortised on a straight-line basis over the estimated useful economic
life of 2 to 5 years.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
24
Software as a Service:
The Group previously capitalised costs incurred in configuring or customising certain suppliers application software
in certain computing arrangements as intangible assets as the Group considered that it would benefit from those
costs over the expected term of the computing arrangements.
Following the publication of IFRS Interpretations Committee (IFRIC) agenda decision on Configuration or
Customisation Costs in a Cloud Computing Arrangement in March 2021 (and ratified by the International
Accounting Standards Board (IASB) in April 2021, the Group has reconsidered its accounting treatment in relation
to capitalising certain software and adopted the guidance set out in the IFRIC agenda decision, which is to
recognise those costs as intangible assets only if the activities create an intangible asset that the Group controls
and the intangible asset meets the recognition criteria. Costs that are not capitalised as intangible assets are
expensed as incurred unless they are paid to the supplier of the cloud-based software to significantly customise the
cloud-based software in which case the cost paid upfront is recorded as a prepayment for services and amortised
over the expected term of the cloud computing arrangements.
As a result of this change in accounting policy, the Group has determined that certain costs relating to the
implementation or development of certain software should be expensed when they were incurred as the amounts
paid did not create separate intangible assets controlled by the Group. The change in treatment has not been
applied retrospectively and has not had a material effect on these financial statements.
Software is the only intangible asset recorded in the financial statements. All software has been acquired externally.
3.4 Leases
Right-of-use assets and lease liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the remaining lease payments. Lease payments to be made under
reasonably certain extension options are also included in the measurement of the liabilities.
Right-of-use assets are initially recognised on commencement of lease at cost, comprising the initial amount of the
lease liabilities less any lease incentives received. Right-of-use assets are subsequently depreciated using the
straight-line method from the commencement date to the end of the lease term. In considering the lease term, the
Group applies judgement in determining whether it is reasonably certain that an extension or termination option will
be exercised.
Both right-of-use assets and lease liabilities are discounted applying interest rate implicit in the lease, or if this
cannot be determined, the incremental borrowing rate at the commencement of the lease. To determine the
incremental borrowing rate the Group have applied a blended secured and unsecured borrowing rate. For the
secured rate the Group have utilised third party financing options and adjusted for an appropriate credit spread.
Extension options are included in a number of property leases across the Group. These are used to maximise
operational flexibility in terms of managing the assets used in the Grooperation. Extension options held are
exercisable only by the Group and not by the respective lessor. During the period the Group recognised all
extension options (2021: all recognised).
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
25
The following tables show the movements and analysis in relation to the right-of-use assets and lease liabilities,
created on the adoption of NZ IFRS 16:
3.4.1 Right-of-use assets:
Land and Buildings
$000
Period ended 31 January 2021
Opening carrying amount 266,001
Additions 13,126
Surrender (1,577)
Depreciation for the period (21,700)
Closing carrying amount 255,850
At 31 January 2021
Cost 296,491
Accumulated depreciation (40,641)
Carrying amount 255,850
Period ended 30 January 2022
Opening carrying amount 255,850
Additions 19,350
Surrender (2,239)
Depreciation for the period (22,172)
Closing carrying amount 250,789
At 30 January 2022
Cost 313,602
Accumulated depreciation (62,813)
Carrying amount 250,789
3.4.2 Lease liabilities:
As at As at
30 January 2022 31 January 2021
$000 $000
Opening value 292,271 296,408
Additions 19,350 13,126
Surrender (3,244) (1,675)
Interest for the period 14,218 14,772
Lease payments made (33,377) (30,360)
Total lease liabilities 289,218 292,271
Briscoe Group Limited
Notes to the Consolidated Financial Statements
3. Operating Assets and Liabilities
For the 52 week period ended 30 January 2022
26
3.4.3 Lease liabilities maturity analysis:
Minimum lease payments Interest Present value
$000 $000 $000
Within one year 33,246 (14,221) 19,025
One to five years 126,185 (47,588) 78,597
Beyond five years 253,026 (61,430) 191,596
Total 412,457 (123,239) 289,218
Current 19,025
Non-current 270,193
Total 289,218
3.4.4 Lease related expenses included in the income statement:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Depreciation 22,172 21,700
Short-term leases 129 27
Interest on leases 14,218 14,772
Total 36,519 36,499
3.4.5 Lease payments included in the cashflow statement:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Total cash outflow in relation to leases 33,377 30,360
Briscoe Group Limited
Notes to the Consolidated Financial Statements
4. Investments
For the 52 week period ended 30 January 2022
27
This section explains how the Group records investments made in listed securities.
4.1 Investment in Equity Securities
During 2015, 2018 and 2019 Briscoe Group Limited acquired a total of 48,007,465 shares in Kathmandu
Holdings Limited (KMD) for a cost of $87,853,048. This holding represented a 6.77% ownership in Kathmandu
as at 30 January 2022.
These shares are equity investments, quoted in the active market, which the Group has elected to designate as
a financial asset at fair value through other comprehensive income (FVOCI). An adjustment was made at period
end to reflect the fair value of these shares as at 30 January 2022
1.
.
$000
At 26 January 2020 154,104
Additions -
Change in fair value credited to other reserves (92,174)
At 31 January 2021 61,930
Additions -
Change in fair value credited to other reserves 2,880
At 30 January 2022 64,810
1. Fair value determined to be $1.35 per share as per NZX closing price of Kathmandu Holdings Limited as
at 28 January 2022 (2021: $1.29) (Level 1 in the fair value hierarchy).
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
28
This section reports on the Group funding sources and capital structure, including its balance
sheet liquidity and access to capital markets.
5.1 Interest Bearing Liabilities
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption
amount is recognised in the income statement over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the balance sheet date.
The Group has an unsecured facility with the Bank of New Zealand for $30 million. Any drawdowns are repayable
in full on expiry date of the facility being 20 September 2022. Interest is payable based on the BKBM rate plus
applicable margin. The facility is sufficiently flexible that the amounts can be drawn down and repaid to
accommodate fluctuations in operating cash flows within overall limits, without the need for prior approval of the
bank. The facility was not drawn down during the period.
The covenants entered into by the Group require specified calculations of Groups earnings before interest, tax,
depreciation and amortisation (EBITDA) plus lease rental costs to exceed total fixed charges (net interest expense
and lease rental costs) at the end of each half during the financial period. Similarly, EBITDA must be no less than a
specified proportion of total net debt at the end of each half. The Group was in compliance with the covenants
throughout the period.
There were no amounts repayable under the facility as at 30 January 2022 (2021: Nil).
Net finance income / (costs)
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Interest income 399 421
Interest expense - leases (14,218) (14,772)
Interest expense - other (155) (4)
Other finance cost (122) (112)
Net finance cost (14,096) (14,467)
5.2 Financial Risk Management
The Groupactivities expose it to various financial risks including credit risk, liquidity risk and market risk (such as
currency risk and equity price risk). Therall risk management programme seeks to minimise potential
adverse effects on the Grous financial performance. The Group uses certain derivative financial instruments to
hedge certain risk exposures.
5.2.1 Derivative financial instruments
Derivatives are recognised initially at fair value on the date a derivative contract is entered into and are
subsequently re-measured to their fair value. The method of recognising the resulting gain or loss depends on
whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The
Group designates certain derivatives as hedges of highly probable forecast transactions (cash flow hedges).
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
29
At the inception of a transaction the economic relationship between hedging instruments and hedged items, and the
risk management objective and strategy for undertaking various hedge transactions, are documented. An
assessment is also documented, both at hedge inception and on an on-going basis, of whether the derivatives that
are used in hedging transactions have been and will continue to be effective in offsetting changes in fair values or
cash flows of hedged items.
Cash flow hedge
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges,
is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised
immediately in the income statement within cost of goods sold.
Amounts accumulated in other comprehensive income are recycled in the income statement in the periods when
the hedged item will affect profit or loss (for instance when the forecast purchase that is hedged takes place).
However, when a forecast transaction that is hedged results in the recognition of a non-financial asset (for example,
inventory) or a non-financial liability, the gains and losses previously deferred in other comprehensive income are
transferred from other comprehensive income and included in the measurement of the initial cost or carrying
amount of the asset or liability.
When a hedging instrument expires or is sold or terminated, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in other comprehensive income at that time remains in other
comprehensive income and is recognised when the forecast transaction is ultimately recognised in the income
statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was
reported in other comprehensive income is immediately transferred to the income statement within cost of goods
sold.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of these derivative
instruments are recognised immediately in the income statement within administration expenses.
5.2.2 Credit risk
Credit risk refers to the risk of a counterparty failing to discharge an obligation. In the normal course of its business,
Briscoe Group incurs credit risk from trade receivables and transactions with financial institutions. The Group
places its cash, short-term investments and derivative financial instruments with only high-credit-rated, Board-
approved financial institutions. Sales to retail customers are settled predominantly in cash or by using major credit
cards. Less than 1% of reported sales give rise to trade receivables. The Group holds no collateral over its trade
receivables.
5.2.3 Interest rate risk
The Group has no long-term interest-bearing liabilities but does have interest rate risk exposure from periodic short-
term drawdowns of established funding facilities and placements of short-term deposits, as operating cash flows
necessitate. The Groupto medium term liquidity position is monitored daily and reported to the Board
monthly.
5.2.4 Liquidity risk
Liquidity risk is the risk that an unforeseen event or miscalculation in the required liquidity level will result in the
Group foregoing investment opportunities or not being able to meet its obligations in a timely manner, and therefore
gives rise to lower investment income or to higher borrowing costs than otherwise. Prudent liquidity risk
management includes maintaining sufficient cash, and ensuring the availability of adequate amounts of funding
from credit facilities.
The Guidity exposure is managed by ensuring sufficient levels of liquid assets and committed facilities are
maintained based on regular monitoring of a rolling 3-month daily cash requirement forecast. The Gr liquidity
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
30
position fluctuates throughout the period, being strongest immediately after the end of the period. The months
leading up to Christmas trading put the greatest strain on Group cash flows due to the build-up of inventory as well
as the interim dividend payment. The Group operates well within its available funding facilities.
The table below analyses the Gros financial liabilities and gross-settled forward foreign exchange contracts into
relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity
date. The cash flow hedge outf amounts disclosed in the table are the contractual undiscounted cash flows
liable for payment by the Group in relation to all forward foreign exchange contracts in place at balance date. The
cash flow h amounts represent the corresponding injection of foreign currency back to the Group as a
result of the gross settlement on those contracts, converted using the forward rate at balance date. The carrying
value shown is the net amount of derivative financial liabilities and assets as shown in the balance sheet. Changes
in the carrying value affect profit when the underlying inventory to which the derivatives relate, is sold.
Trade and other payables are shown at carrying value in the table. No discounting has been applied as the impact
of discounting is not significant.
An analysis detailing remaining contractual maturities for lease liabilities is shown in Note 3.4.3.
As at 30 January 2022
3 months
or less
3 6
months
6 9
months
9 12
months
Total
Carrying
Value
$000 $000 $000 $000 $000 $000
Trade and other payables
(60,085)
-
-
-
(60,085)
(60,085)
Forward foreign exchange contracts
Cash flow hedges:
- outflow (16,564) (14,507) (9,165) (760) (40,996)
- inflow 17,855 15,601 9,912 765 44,133
- Net 1,291 1,094 747 5 3,137 3,137
As at 31 January 2021
3 months
or less
3 6
months
6 9
months
9 - 12
months
Total
Carrying
Value
$000 $000 $000 $000 $000 $000
Trade and other payables
(63,195)
-
-
-
(63,195)
(63,195)
Forward foreign exchange contracts
Cash flow hedges:
- outflow (22,359) (17,787) (19,481) (1,739) (61,366)
- inflow 20,971 16,777 18,524 1,748 58,020
- Net (1,388) (1,010) (957) 9 (3,346) (3,346)
The cash flow hedges inflow amounts use the forward rate at balance date.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
31
5.2.5 Market risk
Equity price risk
The Group is exposed to equity price risk arising from the investment held in Kathmandu Holdings Limited,
classified in the balance sheet as investment in equity securities. (Refer note 4.1).
Foreign exchange risk
The Group is exposed to foreign exchange risk arising from currency exposures primarily to the US dollar, in
respect of purchases of inventory directly from overseas suppliers.
The Groups foreign exchange risk is managed in accordance with Board-approved Group Treasury Risk
Management Policies. The current policy requires hedging of both committed and forecasted foreign currency
payment levels across the current and subsequent three calendar quarters. The policy is to cover 100% of
committed purchases and lower levels of forecasted purchases depending on which quarter the forecasted
exposure relates to. Hedging is reviewed regularly and reported to the Board monthly.
The Group uses forward foreign exchange contracts and maintains short-term holdings of foreign currencies in
foreign denominated currency bank accounts, with major financial institutions only, to hedge its foreign exchange
risk in anticipation of future purchases.
The following table shows the fair value of forward foreign exchange contracts held by the Group as derivative
financial instruments at balance date:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Current assets
Forward foreign exchange contracts 3,137 32
Total current derivative financial instrument assets 3,137 32
Current liabilities
Forward foreign exchange contracts - 3,378
Total current derivative financial instrument
liabilities -
3,378
The contracts are subject to an enforceable master netting arrangement, which allows for net settlement of the
relevant assets and liabilities. For financial reporting purposes these are not offset.
Forward foreign exchange contracts cash flow hedges
Where forward foreign exchange contracts have been designated and tested as an effective hedge the portion of
the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in other
comprehensive income. These gains or losses are released to the income statement at various dates over the
subsequent financial period as the inventory for which the hedge exists, is sold.
The fair value of these contracts is determined by using valuation techniques as they are not traded in an active
market. The valuation techniques maximise the use of observable market data where it is available and rely as little
as possible on entity specific estimates. The fair value is determined by mark-to-market valuations using forward
exchange. These derivatives have been determined to be within level 2 of the fair value hierarchy as all significant
inputs required to ascertain their fair value are observable.
Forward foreign exchange contracts are used for hedging committed or highly probable forecast purchases of
inventory for the ensuing financial period. The contracts are timed to mature when major shipments of inventory are
scheduled to be dispatched and the liability settled. The cash flows are expected to occur at various dates within
one year from balance date.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
32
At balance date these contracts are represented by assets of $3,137,409 (2021: $32,361) and liabilities of $429
(2021: $3,378,483) and together are included in equity as part of the cash flow hedge reserve, net of deferred tax,
as a net gain of $2,258,626 (2021: net loss $2,409,208). The cash flow hedge reserve also consists of gains and
losses, net of deferred tax, from foreign currencies used as hedges, as a net gain of $125,434 (2021: net loss of
$47,826). The total of these net gains and losses amount to a net loss of $2,384,060 (2021: net loss $2,457,034).
When forward foreign exchange contracts are not designated and tested as an effective hedge, the gain or loss on
the forward foreign exchange contract is recognised in the income statement.
At balance date there are no such contracts in place (2021: Nil).
5.2.6 Sensitivity analysis
Based on historical movements and volatilities and review of current economic commentary the following
movements are considered reasonably possible over the next 12 month period:
A shift of -10% / +10% (2021: -10% / +10%) in the NZD against the USD, from the period-end rate of 0.6576
(2021: 0.7168),
A shift of -0.25% / +1.25% (2021: -0.25% / +0.25%) in market interest rates from the period-end weighted
average deposit rate of 1.13% (2021: 0.35%),
A shift of -10% / +20% (2021: -10% / +20%) in the NZX share price of Kathmandu Holdings Ltd from the
period-end closing share price of $1.35 (2021: $1.29).
If these movements were to occur, the positive / (negative) impact on consolidated profit after tax and consolidated
equity for each category of financial instrument held at balance date is presented below.
As at 30 January 2022
Interest rate Foreign exchange rate Equity price
Carrying -0.25% +1.25% -10% +10% -10% +20%
amount Profit Equity Profit Equity Equity Equity Equity Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000
Financial Assets:
Cash and cash
equivalents
1.
102,481 (180) (180) 899 899 203 (166) - -
Derivatives designated
as cashflow hedges
(Forward foreign
exchange contracts)
2.
3,137
-
-
-
-
3,486
(2,842)
-
-
Investment in equity
securities
3.
64,810
-
-
-
-
-
-
(6,481)
12,962
Financial Liabilities:
Derivatives designated
as cashflow hedges
(Forward foreign
exchange contracts)
2.
-
-
-
-
-
31
(25)
-
-
Total increase /
(decrease)
(180) (180) 899 899 3,720 (3,033) (6,481) 12,962
Receivables and payables have not been included above as they are denominated in NZD and are non-interest
bearing and therefore not subject to market risk.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
33
As at 31 January 2021
Interest rate Foreign exchange rate Equity price
Carrying -0.25% +0.25% -10% +10% -10% +20%
amount Profit Equity Profit Equity Equity Equity Equity Equity
$000 $000 $000 $000 $000 $000 $000 $000 $000
Financial Assets:
Cash and cash
equivalents
1.
100,417 (179) (179) 179 179 59 (48) - -
Derivatives designated
as cashflow hedges
(Forward foreign
exchange contracts)
2.
32
-
-
-
-
306
(254)
-
-
Investment in equity
securities
3.
61,930
-
-
-
-
-
-
(6,193)
12,386
Financial Liabilities:
Derivatives designated
as cashflow hedges
(Forward foreign
exchange contracts)
2.
3,378
-
-
-
-
4,296
(3,579)
-
-
Total increase /
(decrease)
(179) (179) 179 179 4,661 (3,881) (6,193) 12,386
Receivables and payables have not been included above as they are denominated in NZD and are non-interest
bearing and therefore not subject to market risk.
1. Cash and cash equivalents include deposits at call which are at floating interest rates.
2. Derivatives designated as cashflow hedges are foreign exchange contracts used to hedge against the NZD:USD foreign
exchange risk arising from foreign denominated future purchases. There is no profit or loss sensitivity as the hedges are
100% effective.
3. Investment in equity securities represents shares held in Kathmandu Holdings Ltd. There is no profit or loss sensitivity as
impacts from changes in KMDce are accounted for through equity.
5.3 Equity
5.3.1 Capital risk management
Tapital comprises contributed equity, reserves and retained earnings.
The Group objective when managing capital is to achieve a balance between maximising shareholder wealth and
ensuring the Group is able to operate competitively with the flexibility to take advantage of growth opportunities as
they arise. In order to meet these objectives the Group may adjust the amount of dividend payments made to
shareholders and/or seek to raise capital through debt and/or equity. There are no specific banking or other
arrangements which require the Group to maintain specified equity levels.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
34
5.3.2 Share capital
Share capital comprises ordinary shares only. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
All shares on issue are fully paid. All ordinary shares rank equally with one vote attached to each fully paid ordinary
share and have equal dividend rights and no par value.
Contributed equity ordinary shares
No. of authorised shares Share capital
Period ended Period ended Period ended Period ended
30 January 2022 31 January 2021 30 January 2022 31 January 2021
Shares Shares $000 $000
Opening ordinary shares 222,466,000 222,188,500 61,839 60,752
Issue of ordinary shares arising from the
exercise of options/ vesting of performance
rights 90,300 277,500 153
1.
1,087
1.
Balance at end of period 222,556,300 222,466,000 61,992 61,839
1. When options are exercised or when performance rights vest, the amount in the equity-based remuneration reserve
relating to those options exercised or performance rights vested, together with the exercise price paid by the employee,
is transferred to share capital. The amounts transferred for the 90,300 shares issued during the period ended
30 January 2022 were $nil and $153,376 respectively (2021: $168,415 and $918,525 respectively for the 277,500
shares issued).
5.3.3 Dividends
Provision is made for the amount of any dividend declared on or before the balance date but not distributed at
balance date.
Period ended Period ended Period ended Period ended
30 January 2022 31 January 2021 30 January 2022 31 January 2021
Cents per share Cents per share $000 $000
Interim dividend for the period ended 30 January 2022 11.50 - 25,594 -
Final dividend for the period ended 31 January 2021 13.50 - 30,045 -
Special dividend for the period ended 31 January 2021 - 6.00 - 13,348
Interim dividend for the period ended 31 January 2021 - 9.00 - 20,022
Final dividend for the period ended 26 January 2020
1.
- - - -
25.00 15.00 55,639 33,370
1. The final dividend of 12.50 cps for year ended 26 January 2020 announced on 16 March 2020 was cancelled on 23 March
2020 as a result of potential impact of Covid-19.
All dividends paid were fully imputed (refer also to Note 2.3.3 for imputation credits available for use in subsequent
periods). Supplementary dividends of $380,308 (2021: $238,416) were provided to shareholders not tax resident in
New Zealand, for which the Group received a Foreign Investor Tax Credit entitlement.
On 16 March 2022 the Directors resolved to provide for a final dividend to be paid in respect of the period ended 30
January 2022. The dividend will be paid at a rate of 15.50 cents per share for all shares on issue as at 24 March
2022, with full imputation credits attached.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
5. Financing and Capital Structure
For the 52 week period ended 30 January 2022
35
5.3.4 Reserves and retained earnings
Cashflow hedge reserve
The hedging reserve is used to record gains and losses on a hedging instrument in a cash flow hedge that are
recognised directly in other comprehensive income, as described in the accounting policy in section 5.2. The
amounts are recognised as profit or loss when the associated hedged transaction affects profit or loss. (Refer also
to the consolidated statement of changes in equity).
Equity-based remuneration reserve
The equity-based remuneration reserve is used to recognise the fair value of performance rights granted but not
exercised, lapsed or forfeited. Amounts are transferred to share capital when vested performance rights are
exercised. (Refer also to the consolidated statement of changes in equity and note 6.2).
Other reserves
Other reserves represents the adjustment made at balance date to reflect the fair value of the investment in
Kathmandu Holdings Limited. (Refer also to the consolidated statement of changes in equity and note 4.1).
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
36
6.1 Related Party Transactions
6.1.1 Parent and ultimate controlling party
Briscoe Group Limited is the immediate parent, ultimate parent and controlling party for all companies in the
Group.
During the period the Company advanced and repaid loans to its subsidiaries by way of internal current
accounts. In presenting the financial statements of the Group, the effect of transactions and balances
between fellow subsidiaries and those with the Company have been eliminated. No interest is charged on
internal current accounts. All transactions with related parties were in the normal course of business and
were provided on normal commercial terms.
The Group undertook transactions with the following related parties as detailed below:
The RA Duke Trust, of which RA Duke is a trustee, as owner of the Rebel Sport premises at Panmure,
Auckland, received rental payments (net of rental relief) of $597,226 (2021: $613,663) from the Group,
under an agreement to lease premises to The Sports Authority Limited (trading as Rebel Sport). The
remaining non-cancellable term of this lease is 1.2 years (2021: 2.2 years) with a payment
commitment of $787,365 (2021: $1,462,249).
Kein Geld (NZ) Limited, an entity associated with RA Duke, received rental payments (net of rental
relief) of $501,999 (2021: $520,001) as owner of the Briscoes Homeware premises at Wairau Park,
Auckland, under an agreement to lease premises to Briscoes (NZ) Limited. The remaining non-
cancellable term of this lease is 0.1 years (2021: 1.1 years) with a payment commitment of $47,273
(2021: $614,547).
The RA Duke Trust (including RA Duke Limited) received dividends of $42,891,596 (2021:
$25,714,289).
P Duke, spouse of RA Duke, received payments of $65,000 (2021: $65,000) in relation to her
employment as an overseas buying specialist with Briscoe Group Limited, and rental payments (net of
rental relief) of $816,254 (2021: $918,570) as owner of the Briscoes Homeware premises at Panmure,
Auckland under an agreement to lease premises to Briscoes (NZ) Limited. The remaining non-
cancellable term of this lease is 9.3 years (2021: 10.3 years) with a payment commitment of
$9,237,756 (2021: $10,160,148).
6.1.2 Key management personnel
Key management includes the Directors of the Company and those employees who the Company has
deemed to have disclosure obligations under subpart 6 of the Financial Markets Conduct Act 2013, namely
the Chief Financial Officer, the Chief Operating Officer and the General Manager Human Resources.
Key management compensation was as follows:
Period ended Period ended
30 January 2022 31 January 2021
$000 $000
Salaries and other short-term employee benefits 4,199 2,854
Equity-based remuneration 128 100
Directos 391
293
Total benefits 4,718
3,247
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
37
Key management did not receive any termination benefits during the period (2021: Nil).
Key management did not receive and are not entitled to receive any post-employment or long-term benefits
(2021: Nil).
Executives included in key management received dividends of $250,195 (2021: $143,151) in relation to
Briscoe Group shares held.
6.1.3 Directors fees and dividends
Directors received direes and dividends in relation to their personally held shares as detailed below:
Period ended
30 January 2022
Period ended
31 January 2021
Directors Dividends Directors fees Dividends
$000 $000 $000 $000
Executive Director
RA Duke - - - -
Non-Executive Directors
eo 148 - 132 -
AD Batterton 82 - 78 -
RAB Coupe 85 3 77 2
HJM Callaghan
1.
76 - 6 -
391 3 293 2
The following Directors received dividends in relation to their non-beneficially held shares as detailed below:
Period ended
30 January 2022
Period ended
31 January 2021
$000 $000
Executive Director
RA Duke 42,892 25,714
Non-Executive Directors
RPO Meo 25 15
AD Batterton 5 3
RAB Coupe - -
HJM Callaghan
1.
- -
1. Mark Callaghan was appointed by the Board as a Director effective from 1 January 2021.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
38
6.2 Employee Equity-Based Remuneration
6.2.1 Equity settled performance rights
The Senior Executive Incentive Plan grants Group employees performance rights subject to performance
hurdles being met. The fair value of rights granted is recognised as an employee expense in the income
statement with a corresponding increase in the employee share-based payment reserve. The fair value is
measured at grant date and amortised over the vesting periods. When performance rights vest, the amount in
the share-based payments reserve relating to those rights are transferred to share capital. There is no
exercise price for these performance rights and there is no right to dividends during the vesting periods.
On 26 March 2019 the Board approved the Briscoe Group Senior Executive Incentive Plan to grant
performance rights to key senior management personnel as a long-term incentive programme. The third
tranche of performance rights were issued under this programme during the period.
Performance rights granted are summarised below:
Tranche
Grant Date
Balance at
start
of period
(number)
Granted
during
the period
(number)
Vested
during
the period
(number)
Lapsed
during
the period
(number)
Balance at
the end
of period
(number)
1 15 Apr 2019 90,300 - (90,300) - -
2 26 Jun 2019 89,286 - - - 89,286
3 30 Jul 2020 136,218 - - - 136,218
4 15 Jun 2021 - 83,334 - - 83,334
315,804 83,334 (90,300) - 308,838
In each tranche the performance rights are subject to a combination of an absolute Total Shareholder Return
(TSR) growth hurdle and/or an EPS growth hurdle. EPS growth hurdle is considered a non-market condition.
The relative hurdle weighting for unvested tranches is shown in the table below:
Tranche Grant Date TSR Weighting EPS Weighting
2 26 Jun 2019 50% 50%
3 30 Jul 2020 50% 50%
4 15 Jun 2021 50% 50%
The proportion of performance rights subject to the absolute TSR growth hurdle which may vest is dependent
on Briscoe Group Limiteds TSR compound annual growth rate (CAGR) across a 3-year measurement
period. For each tranche that vests the rights are awarded on a straight-line basis dependent on the TSR
CAGR achieved. The percentage of TSR related performance rights vest according to the following
performance criteria for each unvested tranche:
% Vesting Tranche 2 Tranche 3 Tranche 4
0% < 10.1% CAGR < 12.4% CAGR < 5.0% CAGR
50% = 10.1% CAGR = 12.4% CAGR = 5.0% CAGR
51% - 99% (Straight-
line prorata)
> 10.1%, < 13.0% CAGR
> 12.4%, < 16.0% CAGR
> 5.0%, < 5.5% CAGR
100% => 13.0% CAGR => 16.0% CAGR => 5.5% CAGR
The TSR performance is calculated across the following periods:
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
39
Tranche Performance Period
2 Announcement date of FY 2018/19 Result to announcement date of FY 2021/22 Result
3 Announcement date of FY 2019/20 Result to announcement date of FY 2022/23 Result
4 Announcement date of FY 2020/21 Result to announcement date of FY 2023/24 Result
The fair value of the TSR performance rights have been valued under a variant of the dividend adjusted
Binomial Options Pricing Model (BOPM). The fair value of TSR performance rights, along with the
assumptions used to simulate the future share prices are shown below:
Tranche 2 Tranche 3 Tranche 4
Fair value of TSR performance rights $22,813 $47,200 $97,501
Current price at grant date $3.30 $3.37 $5.75
Risk free interest rate 1.71% 0.30% 0.60%
Expected life (years) 2.75 2.63 2.75
Expected share volatility
1.
16%
1.
24%
2.
24%
3.
1. Volatility represents the volatility of the Briscoe Group (BGP) NZD share price over the two-year period
to February 2019.
2. Volatility represents the volatility of the Briscoe Group (BGP) NZD share price over a five-year period to
July 2020.
3. Volatility represents the volatility of the Briscoe Group (BGP) NZD share price based on the average 90
day volatility for the past 3 years (measured on a daily basis).
The estimated fair value for each tranche of performance rights issued is amortised over the vesting period
from the grant date.
The proportion of performance rights subject to the EPS growth hurdle which may vest is dependent on
Briscoe Group Limiteds EPS compound annual growth rate (CAGR) across a 3-year measurement period.
For each tranche that vests the rights are awarded on a straight-line basis dependent on the EPS CAGR
achieved. The percentage of EPS related performance rights vest according to the following performance
criteria:
% Vesting Tranche 2 Tranche 3 Tranche 4
0% < 0.8% CAGR < 1.8% CAGR < 2.5% CAGR
50% = 0.8% CAGR = 1.8% CAGR = 2.5% CAGR
51% - 99% (Straight-
line prorata)
> 0.8%, < 2.6% CAGR
> 1.8%, < 4.6% CAGR
> 2.5%, < 4.6% CAGR
100% => 2.6% CAGR => 4.6% CAGR => 4.6% CAGR
The EPS performance is calculated across the following periods:
Tranche Performance period
2 FY 2021/22 EPS relative to FY 2018/19 EPS
3 FY 2022/23 EPS relative to FY 2019/20 EPS
4 FY 2023/24 EPS relative to FY 2020/21 EPS
The fair value of the EPS performance rights have been assessed as the Briscoe Group Limiteds share price
as at grant date less the present value of the dividends forecast to be paid prior to each vesting date. The fair
value of each EPS unvested performance right has been calculated to be $2.79, $2.76 and $5.75 for tranche
2, tranche 3 and tranche 4, respectively.
The estimated fair value for each tranche of performance rights issued is amortised over the vesting period
from grant date.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
40
Vesting of performance rights also requires the employee to remain in employment with the Company during
the performance period. The Company has expensed in the income statement $217,148 (2021: $182,969) in
relation to performance rights.
6.2.2 Equity-based remuneration reserve
Period ended
30 January 2022
Period ended
31 January 2021
$000 $000
Balance at beginning of period 444 841
Current period amortisation 217 183
Options forfeited and lapsed transferred
to retained earnings
-
(521)
Options exercised transferred to share capital - (168)
Performance rights vested transferred to share capital (153) -
Deferred tax on performance rights 58 109
Balance at end of period 566 444
6.3 Contingent Liabilities
There were no contingent liabilities as at 30 January 2022 (2021: Nil).
6.4 COVID-19
COVID-19 has brought disruptions and uncertainties to businesses and economies globally. These
disruptions have impacted on the operations of Briscoe Group through-out the last two financial years.
Firstly, during the first half of the February 2020 January 2021 financial year when Level 4 and 3 lockdowns
saw all bricks and mortar stores cease trading for 50 days. Then during the most recent financial year from
18 August 2021 when the NZ Government announced a further nationwide Level 4 lockdown. Most disruption
was felt throughout our Auckland store network with those stores shut for a period of 84 days before
reopening on 10 November 2021. All other stores were also impacted at varying times through this period.
As was the same for previous lockdown disruptions, the Groups online operation performed significantly well
assisting to mitigate some of the negative impact from store closures.
Recent developments in relation to the Omicron variant highlight the uncertainty of Covid-19 impacts into the
future and the Board and management continue to monitor the situation closely.
The Board note the high level of business uncertainty that continues to exist in relation to the impacts of the
Covid-19 pandemic including the possibility of supply chain disruption, erosion of consumer spending and
further government-imposed lockdowns. Other than minor immaterial inventory adjustments for a few
impacted categories, there are no other provisions in these statements for the period ended 30 January 2022
for financial impacts of Covid-19.
Briscoe Group Limited
Notes to the Consolidated Financial Statements
6. Other Notes
For the 52 week period ended 30 January 2022
41
6.5 Events After Balance Date
On 16 March 2022 the Directors resolved to provide for a final dividend to be paid in respect of the period
ended 30 January 2022. The dividend will be paid at a rate of 15.50 cents per share for all shares on issue as
at 24 March 2022, with full imputation credits attached (Note 5.3.3).
6.6 New Accounting Standards
There were no new standards applied during the period.
Certain new accounting standards, amendments to accounting standards and interpretations have been
published that are not mandatory for the 30 January 2022 reporting period and have not been early adopted
by the Group. These standards, amendments or interpretations are not expected to have a material impact
on the entity in the current or future reporting periods and on foreseeable future transactions.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
To the shareholders of Briscoe Group Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Briscoe Group Limited (the
Company), including its subsidiaries (the Group), present fairly, in all material respects, the financial
position of the Group as at 30 January 2022, its financial performance and its cash flows for the period
then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
the consolidated balance sheet as at 30 January 2022;
the consolidated income statement for the period then ended;
the consolidated statement of comprehensive income for the period then ended;
the consolidated statement of changes in equity for the period then ended;
the consolidated statement of cash flows for the period then ended; and
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards)issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
PwC
Description of the key audit matterHow our audit addressed the key audit matter
Inventory existence and valuation
At January 202, the Group held
inventories of $119.5 million. Given the
value of inventories relative to the total
assets of the Group, and the judgements
applied in provisioning against inventory
shrinkage, slow moving and obsolete
inventory, this has been considered a key
audit matter.
As described in note 3.1.3 to the
consolidated financial statements,
inventories are stated at the lower of cost
and net realisable value.
The Group has sophisticated inventory
systems in place to accurately record and
report inventory movements and the value
of inventory on hand.
Cyclical counts of inventories are
performed at various times throughout the
period which includes an assessment of
slow moving and obsolete stock. The
cyclical counts provide management with
evidence over quantity and quality of
inventory on hand.
Management applies judgement in
determining inventory valuation, in
particular the level of provisions for
inventory which is expected to sell for less
than cost due to obsolescence or damage,
adjustments for unearned rebate income
and inventory shrinkage since the last
stock count.
Our audit procedures included:
gaining an understanding of inventory processes
and assessing the design and implementation of
certain inventory controls, particularly controls over
the cyclical counting process.
selected locations throughout the period and
undertaking our own test counts. For those
locations not visited, on a sample basis, inspecting
the results of stock counts and confirming stock
count variances were appropriately adjusted.
on a sample basis, testing the cost of inventory to
supplier invoices and contracts providing evidence
to support the accuracy of inventory costing.
we corroborated our understanding of the
inventory provisioning process with merchandising
personnel outside of the finance function.
testing that period-end inventory is carried at lower
of cost and net realisable value by testing a
sample of inventory items to the most recent retail
price less costs to sell.
on a sample basis, testing unearned rebate
income to supplier contracts.
assessing the shrinkage provision by testing the
shrinkage rate used to calculate the provision
since the last store stock counts. This includes
comparing the rate used to the actual shrinkage
rates previously observed and reviewing the level
of actual inventory shrinkage recorded during the
current period.
performing substantive analytical procedures over
all material inventory provisions to assess
adequacy.
From the procedures performed we have no matters to
report.
PwC
Our audit approach
Overview
Overall group materiality: $6,100,000, which represents approximately 5% of
profit before tax.
We chose profit before tax as the benchmark because, in our view, it is the
benchmark against which the performance of the Group is most commonly
measured by users, and is a generally accepted benchmark.
We performed a full scope audit over the consolidated financial
information of the Group.
As reported above, we have one key audit matter, being:
Inventory existence and valuation
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override of internal controls, including among
other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the consolidated financial statements as a whole, taking into account the structure of the
Group, the accounting processes and controls, and the industry in which the Group operates.
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual report but does not include the consolidated financial statements
and our auditor's report thereon. The Annual report is expected to be made available to us after the
date of this auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we will
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
PwC
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the Directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
Who we report to
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in t
Senaratne (Indy Sena).
For and on behalf of:
Chartered AccountantsAuckland
16 March 2022
---
Full Year
52 week period ended 30 January 2022
2.
Contents
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Highlights
Growth Equation
Sales
Gross Profit Margin %
Net Profit After Tax
Online Performance
Online Experience
Customer Satisfaction
Team
ESG
Strategy
Moving Forward
Financial Summary
3.
Highlights Year ended 30 January 2022
Record Sales
●Group sales +6.08% to $744.4m
●Homeware sales +4.93% to $460.9m
●Sporting goods sales +8.00% to $283.5m
Online Performance Improvement
●Online sales growth +21.01%
●Online sales 21.47% of total Group sales
●Front-end improvements enhance
customer experience
●Personalisation functionality introduced
●Back-end productivity and process
improvements
Record NPAT
●NPAT up 20.10% to $87.9m
Strong Balance Sheet
●Net cash at period end $102.5m
●Increased inventories to meet ongoing
consumer demand with uncertain
global supply chain
●15.5 cents per share final dividend to be
paid 31 March 2022
Continued Gross Profit Performance
●Gross Profit % up to 45.76% from 43.76%
●Gross Profit $ +10.92% to $340.6m
●Multiple supply chain initiatives in place to
protect margin gains
Strategic Initiatives contributing to
increased profitability
●Improved customer experience delivered
from customer personalisation
●Extended range building new revenue
momentum
4.
Sustainable
Business Growth
●Over 3,000 new
products live
from 15 suppliers
with Drop ship
●New store
formats
performing
ahead of
expectations
●Multi-year store
refurbishment
program in
place
Future
Supply
Chain
Strategic Programme
●Global premium brands
●Relevant product markets
●Proven resilience in
challenging environments
●Proven multi channel
capabilities
●Strong balance sheet
●Lean operating model
delivers agility
●Strong growth in customer
base.
●Sales
●Gross
Profit
●NPAT
●Product availability
improvements
implemented
●Hybrid Online
fulfilment pilot live
●Online Digital
picking phase 2
live
●Online fulfilment
speed increasing
YOY
New
Revenues
The Growth Equation
Solid Foundations
●Record NPS
achieved in both
Briscoes and Rebel
●Strong Increase in
customer
database
engagement
●Personalised
comms driving
increased
customer lifetime
value
5.
Sales
Year-on-year sales
increases pre and post
lockdowns.
Continuing strong
growth across both
segments.
Core business, new stores,
online and strategic
initiatives driving growth.
48 Homeware and
42 Rebel Sport
stores.
6.
First Half Gross
Profit Margin %
●Strong margin gains across both Homewares and
Sporting Goods.
●Step-change increase in Group GP% driven by:
○Post lockdown increased consumer demand.
○Enhanced analysis and management of
promotional activity.
●Supply chain initiatives to optimise:
○Ordering.
○Allocations.
○Speed-to-shelf.
○Stock levels.
○Clearance product.
○Redirection of inventory
between North and South.
Gross Profit Margin %
6.
●Continued strong margin growth across
both Homewares and Sporting Goods
●Online GP% differential has narrowed
with a focus on wider story telling
alongside promotions
●Step-change increase in Group GP%
driven by:
○Post lockdown increased consumer
demand
○Enhanced analysis and management
of promotional activity
●Wide range of Supply chain initiatives
implemented:
○Data driven order and allocation
profiles
○Inventory between North and South
Islands
○Buying enhancements to the
replenishment algorithms
○Significant product size availability
improvements on Rebel Sport
7.
Net Profit After Tax
(NPAT)
7.
Significant increase in NPAT driven by:
●Lifestyle choice in relation to time at home and personal
well-being
●Increased active customer base through leveraging customer
segmentation insights
●Enhanced analysis and construction of promotional activity
●Ongoing focus on robust cost control
●Supply chain initiatives delivering incremental profitability
●Online growth as a result of:
○Post lockdown step-change to online usage
○Back-end and front-end system and process enhancements
1.
1. Includes $2.4M negative impact from adoption of NZ IFRS 16: Leases
8.
Online Share of Sales
Significant growth in online
sales enhanced by further
lockdowns.
Step change also driven by:
●Increased digital media
budget to drive up traffic to
the site - more than 50 million
total combined sessions
●Personalisation programme
embedded - now accounting
for approximately 20% of
online email revenue
●New promotional cadence
and merchandising strategy
embedded
●Enhanced online order
fulfilment routing
implemented
8.
9.
Enforced store closures due to
lockdowns spiked online mix
2020/21.
Post COVID-19 step-change in
online mix further enhanced
by:
●All stores achieving online
fulfilment capability.
●Nationwide roll-out of 'Click
and Collect'.
●Digital picking initiative
introduced.
●Phase 1 of personalisation
functionality launched
●Enhanced search
capability.
●Store stock availability
indicator developed.
9.
Relentless focus on online
customer experience
Fulfilled
1,863,032
ORDERS THIS YEAR
>22,500
ORDERS PER
WEEK BRISCOES
>14,923
ORDERS PER
WEEK REBEL
INCREASE IN ONLINE AVAILABILITY
40
AT THE
START OF 2021
STORES
FULFILLING
90
WE NOW
HAVE ALL
STORES AND DC
FULFILLING
FAR GREATER
AVAILABILITY
WITH A
SIGNIFICANT
REDUCTION IN
OUT-OF-STOCK
DESPITE EXTENSIVE LOCKDOWN DISRUPTION,
SPEED TO DESPATCH IMPROVED 21% ON LAST YEAR
2.4
YE JAN 2021
AVG DAYS
TO PICK &
DESPATCH
1.9
YE JAN 2022
AVG DAYS
TO PICK &
DESPATCH
10.
First Half Gross
Profit Margin %
●Strong margin gains across both Homewares and
Sporting Goods.
●Step-change increase in Group GP% driven by:
○Post lockdown increased consumer demand.
○Enhanced analysis and management of
promotional activity.
●Supply chain initiatives to optimise:
○Ordering.
○Allocations.
○Speed-to-shelf.
○Stock levels.
○Clearance product.
○Redirection of inventory
between North and South.
Customer
Satisfaction
●Despite significant global supply
chain disruption, we maintained very
strong customer scores
10.
●Customer sensitivity was
heightened during FY22 due to
prolonged lockdowns - focus on
fulfilment and post purchase
experience
NPS Trend - Last Three Years
11.
11.
Team
Despite all of the challenges associated
with Covid-19, our business maintained the
investment in our people, including
introducing a wide array of new tools and
processes to make team members’ roles
easier and to enhance the focus on our
customers.
RECRUITMENT &
RESOURCING
●Covid-19 required us to swiftly move over
500 interviews to an online process for
managers and candidates to scale up for
peak seasonal recruitment.
>500
HEALTH, SAFETY
& WELLBEING
●18% reduction year on year of our Total
Recordable Injury Frequency Rate (TRIFR). A
testament to our ongoing commitment and
focus on team member health, safety and
wellbeing.
18%
SCHOLARSHIPS
●Including the three new scholarships awarded
in 2021, Briscoe Group, in partnership with the
RA Duke Trust has provided 31 scholarships
through First Foundation since participation
began in 2013.
31
ENHANCEMENT
OF SYSTEMS
●2021 saw the introduction of Contractor
Management within our ecoPortal Health
& Safety management system.
100%
LEARNING &
DEVELOPMENT
●40% of our Retail Management team
completed or commenced our bespoke
Management and Leadership program. We
are well on track to have all participants
through the program over our 3 year horizon.
40%
12.
12.
13.
Multi-Year
Strategic Initiatives
CUSTOMER
Attract
Retain
Grow
FUTURE
SUPPLY
CHAIN
NEW
REVENUES
Customer segmentation and
personalised comms embedded
Automated Email platform driving
increased customer lifetime value
In store digital tools implemented
Online parcel digital picking live
2021
Online UX enhancements
Drop ship 15 suppliers live - over 3000
new products online
Accelerated new store concept
refurbishment plan
Enhanced Product availability
Hybrid Online fulfilment model live
Further enhanced buy and
promotional execution
Enhanced data collection to step
change Database growth
In store digital price and promotion
labels
Future supply chain network design
New product categories
launched direct-to-customer
2022 & 2023
Express online fulfilment &
premium delivery options
Increased North and South
island distribution capability
14.
Building on our
position of strength
14.
●Continued excellent trading performance in both
Homewares and Sporting goods
●Strategic plan is delivering ahead of expectations and now
contributing significant incremental profit
●Continued to leverage enhanced promotional analytics to
step change product margin
●Significant growth in customer database and engagement
levels from customer service improvements
●Healthy inventory position will help protect from supply chain
volatility
●Internal digital resources significantly enhanced
●Strong balance sheet provides financial protection and
ability to fund strategic investment if required
●Experienced team across the business
●Business has proven record of performing well in times of
economic uncertainty (GFC, COVID-19)
15.
Financial Summary
FY Jan 18FY Jan 19FY Jan 20FY Jan 21FY Jan 22
Homeware revenue $000385,217 403,159 410,908 439,234 460,887
Sporting Goods revenue $000219,919 228,760 242,109 262,563 283,563
Group Total Revenue $000605,136 631,919653,017701,797744,450
Online Mix of sales %8.2%10.0%11.3%18.8%21.5%
Group Gross Margin $000241,894 253,355 257,502 307,116 340,642
Group Gross Margin %40.0%40.1%39.4%43.8%
45.8%
Group EBIT $00083,364 85,995 97,223
1
115,886 136,468
Group EBIT % to sales13.8%13.6%14.9%16.5%18.3%
Group NPAT $00061,325 63,393 62,583 73,199 87,909
Group NPAT % to sales10.1%10.0%9.6%10.4%11.8%
Free cash flow $000 (Operating Cash Flow less Capex)55.5 49.0 60.381.1 76.6
Dividends per share cps19.020.08.5
2
28.5
3
27.0
Earnings per share cps27.8 28.728.232.939.5
Net debt /cash position $00078.2 80.8 67.4 100.4 102.5
Inventory turnover Xp.a. (COGS divided by average inventory) 4.74.94.74.43.8
1 Includes impact of adoption of NZ IFRS 16: Leases
2 Final dividend of 12.5cps cancelled as a result of COVID-19 pandemic
3. includes special dividend of 6cps paid December 2020
16.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Briscoe Group Limited
Financial product name/description Ordinary Shares
NZX ticker code BGP
ISIN (If unknown, check on NZX
website)
NZBGRE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 24/03/2022
Ex-Date (one business day before the
Record Date)
23/03/2022
Payment date (and allotment date for
DRP)
31/03/2022
Total monies associated with the
distribution
1
$ 34,496,226.50000000
Source of distribution (for example,
retained earnings)
Retained Earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.21527778
Gross taxable amount
3
$0.21527778
Total cash distribution
4
$0.15500000
Excluded amount (applicable to listed
PIEs)
$-
Supplementary distribution amount $0.02735294
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed X
Partial imputation
No imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.06027778
Resident Withholding Tax per
financial product
$0.01076389
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
%
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
$
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Geoff Scowcroft
Contact person for this
announcement
Geoff Scowcroft
Contact phone number +64 275633167
Contact email address geoff@briscoes.co.nz
Date of release through MAP
16/03/2022
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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