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Full Year Results to 26 January 2025

Full Year Results11 March 2025BGPConsumer Discretionary

Results announcement




Results for announcement to the market

Name of issuer BRISCOE GROUP LIMITED

Reporting Period Full Year (52 weeks) – 29 January 2024 to 26 January 2025

Previous Reporting Period Full Year (52 weeks) – 30 January 2023 to 28 January 2024

Currency New Zealand Dollars

Amount (000s) Percentage change

Revenue from continuing operations $791,469 -0.1%

Total Revenue $791,469 -0.1%

Net profit/(loss) from continuing

operations

$ 60,634* -28.0%

Total net profit/(loss) $ 60,634* -28.0%

Final Dividend

Amount per Quoted Equity Security $ 0.10000000

Imputed amount per Quoted Equity

Security

$ 0.03888889

Record Date 20 March 2025

Dividend Payment Date 27 March 2025

Current period Prior comparable period

Net tangible assets per Quoted Equity

Security

$ 1.3352 $ 1.4086

A brief explanation of any of the

figures above necessary to enable the

figures to be understood

* Includes a one-off, non-cash tax adjustment of $7.374 million

required under NZ IAS 12 as a result of legislated tax changes.

Net Profit After Tax (NPAT) excluding this adjustment is

$68.007 million, -19.3%


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


12/03/2025


Audited financial statements accompany this announcement.

---

1. Reported NPAT excluding the impact of the one-off deferred tax expense.






Briscoe Group Limited (NZX/ASX code: BGP)


Highlights for the full year ended 26 January 2025:

• Total sales $791.5 million, 99.94% of last year’s record sales

• Gross profit margin 40.37%

• Online sales as mix of total Group sales 19.69%, (LY 18.72%)

• Total costs only 1.11% increase on last year

• Total inventory $5.2 million below last year

• $58.2 million capital expenditure made during the period

• Strategic initiatives remain on track and to budget

• Net profit after tax (NPAT

1.

) $68.0 million


Board Chair, Dame Rosanne Meo said, “In this marketplace to be within 0.06% of last year’s record

sales, to manage costs to be only 1.11% higher than the previous year and to reduce inventory by a

further $5 million is frankly, a remarkable performance.”


The current year’s result includes a tax adjustment of $7.4 million that the Group is required to book as

a result of tax changes announced by the government in early 2024. This deferred tax liability

adjustment is a one-off, non-cash accounting entry which has no impact on Briscoe Group’s underlying

profitability or dividend policy. Excluding this adjustment NPAT

1.

for the year ended 26 January 2025

was $68.01 million. After including the tax adjustment, the directors of Briscoe Group report a net profit

after tax of $60.6 million.



Directors have resolved to pay a final dividend of 10.0 cents per share (cps). The dividend is fully

imputed and, when added to the interim dividend of 12.5cps, brings the total dividend for the year to

22.5 cps. The final dividend will be paid on 27 March 2025. The share register will close to determine

entitlements to the dividend at 5pm on 20 March 2025.


“Dame Rosanne Meo said, “The total dividend reflects the Group’s increased focus on a number of

innovative strategic initiatives, our substantial investment programme across the next two years as well

as the impact on profit from the economic headwinds. The Company’s dividend policy is to pay out at

least 60% of NPAT when calculated on a full-year basis and although lower in absolute terms than

recent years, this year’s total dividend represents a payout ratio of 83% of reported NPAT and 74%

when the one-off tax adjustment is excluded.”


Rod Duke, Group Managing Director, said: “To drive full year sales to 99.94% of last year’s record

Group sales is a terrific achievement. Three of the quarters produced positive sales growth and while

there was an inevitable margin deterioration to deliver those sales, it’s important to bring context to what

has been an incredibly challenging year.”


Relating this year’s result to the year immediately prior to Covid impacts (year ended January 2020):


Group Sales +21.20% $791.5 million vs $653.0 million

Gross Profit Margin % + 0.94% 40.37% vs 39.43%

NPAT

1.

+ 8.67% $68.0 million vs $62.6 million




The Group’s online business continues to produce strong results and represented 19.69% of Group

sales as at 26 January 2025. Rod Duke said, “We’re excited for the year ahead in relation to our online

business. Re-platforming its front-end to the Adobe system will bring significant functionality and

performance improvements whilst the simultaneous launch of the new Marketplacer platform will enable

us to rescale our ability to connect customers with many different suppliers and products through

increased direct-to-consumer options. In addition to working towards these new implementations the

team has also introduced a number of other initiatives this year including; enhancements to our coupon

offerings, an express delivery service, Apple Pay and a suite of AI tools to optimise product data

management. Ensuring our customers always have the best possible access to online as well as bricks

and mortar is an important driver for us.”


As expected, gross margin percentage declined for the period from 42.40% to 40.37%. Rod Duke said,

“Like all retailers we faced margin pressure from a number of factors as the impacts of the ongoing

economic downturn continued to be felt. Whilst we expect margin pressure to be continue, including

from a weaker New Zealand dollar, our goal this year is to at least stabilise Group gross profit margin %

and we have a number of initiatives to assist with this. These include; lower levels of clearance product,

the introduction of deeper analysis of promotion planning and monitoring, and the implementation of a

new merchandise planning tool (Impact Analytics) which will improve the quality of product purchasing

and sell-through. As previously highlighted, this year’s gross profit margin percentage still represents a

94-basis point improvement on the Group’s margin produced for the year immediately prior to covid

(year-ended January 2020).


“Cost control continues to be an integral part of managing the business and the year has closed with the

total of store and overhead costs only 1.11% higher than the previous year. This is a significant

achievement considering the 6% wage rate increase for our in-store hourly-paid team made in May

2024 as well as substantial increases absorbed throughout the business including for power,

occupancy, warehousing and IT.


“The Group’s full-year result was negatively impacted from KMD Brands Limited’s decision to not pay

any dividends during the year. Last year the Group received $2.9 million (pre-tax) from its investment in

KMD Brands.


Inventories totaled $99.7 million at year-end, $5.2 million below the $104.9 million reported for last year.

Rod Duke said, “Inventory management remains a key focus for us and despite intense sales pressure

the team has improved both stockturn and the quality of closing inventory. We’re happy with the

inventory we are currently holding but realise continued inventory improvements will be critical in

enabling us to deliver future sales and margin growth. With the introduction of Impact analytics and

further inventory optimisation across categories, we have set a goal to further reduce inventory levels by

the end of this financial year. Control of inventory continues to be a key factor of our performance.”


The Group’s balance sheet remains strong, with cash and bank balances of $142.4 million as at 26

January 2025 and no term debt. Approximately $30 million of creditor payments included in the trade

payables balance were subsequently paid on or before 31 January 2025. Rod Duke said, “With the

significant investment the Group will make across the next 18 months in establishing the new

distribution centre, combined with the seasonality of our operational cashflow, the Group expects to

establish a funding facility for initial utilisation during the second half of this year.”


During the year $58.2 million of capital investment was made by the Group of which $40.0 million

represents expenditure in relation to the new distribution centre project at South Auckland, including

purchase of land and preliminary payments in relation to building construction and automation contracts.

The roll-out of electronic labelling throughout the Group network accounted for around a further $10.0

million of capex with the balance of capital investment being for store refurbishments, store essential

expenditure and enhancements to system software and hardware.




The Group progressed a number of store development projects during the year. Rod Duke said, “As

reported at half year, refurbishments were completed at both Rebel Sport and Briscoes Homeware

stores in Invercargill and then the Briscoes Homeware store at Hornby was subsequently refurbished

during the second half.


“The successful rollout of electronic labelling across the store network was a significant achievement for

the team and we believe it is already producing positive results in relation to incremental sales,

improved in-store standards and clarity of pricing for customers.


“We are also very excited about the progress made during the year in relation to the design of new

flagship stores for both Briscoes Homeware and Rebel Sport. We are thrilled with the work done and the

potential to be unlocked by these next generation stores which we hope to deliver by the end of this

financial year. We believe these new formats will revitalise the look and consolidate the relevancy of our

value proposition.


“Significant progress has been made during the year in relation to establishing the new distribution

centre in South Auckland. A key milestone was the implementation during the first half of the year of a

new Warehouse management System – Manhattan. This has enabled the team to upskill before

transitioning to the new facility when it becomes operational towards the end of 2026. Earthworks are

now well underway, and the shell of the new complex should begin to take shape towards the end of

this current first half.


“At a time when other companies may very well be looking to refrain or defer significant strategic

expenditure, we remain committed to investing in the Group’s future through a number of both current

and new initiatives including; the new distribution centre which, when operational, will transform our

ability to control the flow of inventory right across our network, the new online platforms which will step-

change the way we manage and present our online offering, the launch of new flagship stores, and our

new merchandise planning tool which will provide us a level of analysis and ordering capability that we

have not had before.


“Looking forward we do not underestimate just how tough trading will continue to be with the first half

expected to be especially challenging. We expect this will see second half profitability exceed that

produced for the first half in a return to a more noramlised shape of profitability. We are hopeful that the

economic recovery will gradually emerge as the year continues, which will assist us to achieve our goal

of protecting this year’s level of profitability.


“Looking further out we are excited about the benefits and profit growth potential from the initiatives

already mentioned which we believe will drive growth across the next three to four years.”


Group Chair Dame Rosanne Meo said, “On behalf of the Board I would like to acknowledge the

outstanding work done by the entire Briscoe Group team. They continue to weather the most

challenging retail environment we have seen for many years but collectively continue to produce some

of the finest results delivered across New Zealand retail.”


Wednesday 12 March 2025


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).

---

Briscoe Group Limited
For the 52-week period ended 26 January 2025














Briscoe Group Limited



Consolidated Financial Statements


For the 52-week period ended 26 January 2025

Briscoe Group Limited
Introduction and Table of Contents

For the 52-week period ended 26 January 2025


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 26 January 2025


2


Table of Contents


Consolidated Financial Statements


Directors’ Approval of 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 Material 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 19


3. Operating Assets and Liabilities 20

3.1 Working Capital 20

3.1.1 Cash and cash equivalents 20

3.1.2 Trade and other receivables 20

3.1.3 Inventories 21

3.1.4 Trade and other payables 21

3.2 Property, Plant and Equipment 23

3.3 Intangible Assets 24

3.4 Leases 25

3.4.1 Right-of-use assets 25

3.4.2 Lease liabilities 26

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 26 January 2025

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 34

5.3.1 Capital risk management 34

5.3.2 Share capital 34

5.3.3 Dividends 35

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 37

6.1.3 Directors’ 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 Events After Balance Date 40

6.4 New Accounting Standards 40



Independent Auditor’s Report 41




Briscoe Group Limited
Consolidated Income Statement

For the 52-week period ended 26 January 2025

5

Period ended Period ended

26 January 2025 28 January 2024

Notes $000 $000

Sales revenue 791,469 791,953

Cost of goods sold (471,928) (456,191)

Gross profit 319,541 335,762

Other operating income 2.2 275 3,574

Store expenses (124,231) (123,899)

Administration expenses (91,184) (89,141)

Earnings before interest and tax 104,401 126,296

Finance income 6,127 6,209

Finance cost

(15,451) (15,224)

Net finance cost 5.1 (9,324) (9,015)

Profit before income tax 95,077 117,281

Income tax expense 2.3.1 (34,443) (33,060)

Net profit attributable to shareholders 60,634 84,221

Earnings per share for profit attributable to

shareholders:

Basic earnings per share (cents)

2.4 27.2 37.8

Dil

uted earnings per share (cents)

2.4 27.2 37.8

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 26 January 2025

6

Period ended Period ended

26 January 2025 28 January 2024

Notes $000 $000

Net Profit attributable to shareholders 60,634 84,221

Other comprehensive income:

Items that will not be subsequently reclassified to profit or

loss:

Change in value of investment in equity securities 4.1 (14,643) (15,842)

Items that may be subsequently reclassified to profit or loss:

Fair value gain taken to the cashflow hedge reserve 4,454 6,196

Deferred tax on fair value gain taken to cashflow hedge reserve 2.3.2 (1,247) (1,735)

Total other comprehensive income/(loss) (11,436) (11,381)

Total comprehensive income attributable to shareholders 49,198 72,840

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

Briscoe Group Limited
Consolidated Balance Sheet

As at 26 January 2025

7

As at

26 January 2025

As at

28 January 2024

Notes $000 $000

ASSETS

Current assets

Cash and cash equivalents 3.1.1 142,401 175,441

Trade and other receivables 3.1.2 6,830 7,738

Inventories 3.1.3 99,696 104,868

Derivative financial instruments 5.2.5 3,058 548

Total current assets 251,985 288,595

Non-current assets

Property, plant and equipment 3.2 177,520 132,810

Intangible assets 3.3 2,329 2,078

Right-of-use assets 3.4.1 230,263 245,318

Deferred tax 2.3.2 9,990 17,309

Investment in equity securities 4.1 20,403 35,046

Total non-current assets 440,505 432,561

TOTAL ASSETS 692,490 721,156

LIABILITIES

Current liabilities

Trade and other payables 3.1.4 109,301 106,292

Lease liabilities 3.4.3 20,674 19,850

Taxation payable 2.3.2 5,247 8,316

Derivative financial instruments 5.2.5 34 259

Total current liabilities 135,256 134,717

Non-current liabilities

Trade and other payables 3.1.4 1,411 1,241

Lease liabilities 3.4.3 256,028 269,330

Total non-current liabilities 257,439 270,571

TOTAL LIABILITIES 392,695 405,288

NET ASSETS 299,795 315,868

EQUITY

Share capital 5.3.2 62,435 62,344

Cashflow hedge reserve 5.2.5 2,250 250

Equity-based remuneration reserve 6.2.2 925 701

Other reserves 5.3.4 (67,450) (52,807)

Retained earnings 301,635 305,380

TOTAL EQUITY 299,795 315,868

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 26 January 2025

8

Period ended Period ended

26 January 2025 28 January 2024

Notes $000 $000

OPERATING ACTIVITIES

Cash was provided from

Receipts from customers

791,496 792,313

Rent received

155 105

Dividends received

6 2,885

Interest received 6,936 5,484

Insurance recovery

114 110

798,707 800,897

Cash was applied to

Payments to suppliers (521,507) (492,773)

Payments to employees

(104,000) (95,016)

Interest paid

(15,451) (15,224)

Net GST paid (17,125) (36,958)

Income tax paid

(30,922) (37,620)

(689,005) (677,591)

Net cash inflows from operating activities 109,702 123,306

INVESTING ACTIVITIES

Cash was provided from

Proceeds from sale of property, plant and equipment

49 16

49 16

Cash was applied to

Purchase of property, plant and equipment 3.2

(56,466) (13,582)

Purchase of intangible assets (1,695) (1,477)

Investment in equity securities 4.1

- -

(58,161) (15,059)

Net cash outflows from investing activities (58,112) (15,043)

FINANCING ACTIVITIES

Cash was applied to

Dividends paid 5.3.3

(64,609) (63,488)

Lease liability payments

(20,064) (19,389)

(84,673) (82,877)

Net cash outflows from financing activities (84,673) (82,877)

Net (decrease)/increase in cash and cash equivalents

(33,083) 25,386

Cash and cash equivalents at beginning of period 175,441 149,874

Effect of exchange rate changes on cash and cash equivalents 43 181

Cash and cash equivalents at period end

3.1.1 142,401 175,441

Briscoe Group Limited
Consolidated Statement of Cash Flows (continued)

For the 52-week period ended 26 January 2025

9

RECONCILIATION OF NET CASH FLOWS FROM

OPERATING ACTIVITIES TO REPORTED NET PROFIT

Period ended Period ended

26 January 2025

28 January 2024

$000

$000

Reported net profit attributable to shareholders

60,634 84,221

Items not involving cash flows

Depreciation and amortisation expense 35,798 34,835

Deferred tax adjustment 7,374 -

Bad debts and movement in doubtful debts

(79)(44)

Inventory adjustments

(2,607) (1,342)

Amortisation of equity-based remuneration

497 391

Loss on disposal/surrender of assets

6 62

40,989 33,902

Impact of changes in working capital items

Decrease/(increase) in trade and other receivables

987 (1,510)

Decrease in inventories

7,779 14,266

Decrease in taxation payable

(3,069) (2,992)

Increase/(decrease) in trade payables 1,233 (4,767)

Increase in other payables and accruals

1,149 186

8,079 5,183

Net cash inflow from operating activities 109,702 123,306

NET DEBT RECONCILIATION

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Cash and cash equivalents at period end 142,401 175,441

Lease liabilities

Opening value (289,180) (284,969)

Cash flows 20,064 19,389

Lease acquisitions (7,586) (27,273)

Lease surrenders -3,673

Total lease liabilities at period end (276,702) (289,180)

Net debt reconciliation (134,301) (113,739)

T

he 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 26 January 2025

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 29 January 2023 62,136 (1,869) 575 (36,965) 284,647 308,524

Transfer of hedging gains/losses upon settlement of

forward contracts net of tax -(2,342) - - - (2,342)

Net profit attributable to shareholders for the period - - - - 84,221 84,221

Other comprehensive income:

Change in value of investment in equity securities

4.1

- - - (15,842) - (15,842)

Net fair value gains taken through cashflow hedge reserve -4,461 - - - 4,461

Total comprehensive (loss)/income for the period -4,461-(15,842) 84,221 72,840

Transactions with owners:

Dividends paid

5.3.3

- - - - (63,488) (63,488)

Performance rights charged to income statement

6.2.1

- - 391 - - 391

Performance rights vested

5.3.2/6.2

208 -(208) - - -

Performance rights forfeited

6.2.2

- - - - - -

Deferred tax on equity-based remuneration

2.3.2/6.2.2

- - (57) - - (57)

Balance at 28 January 2024 62,344 250 701 (52,807) 305,380 315,868

Transfers of hedging gains/losses upon settlement of

forward contracts net of tax -(1,207) - - - (1,207)

Net profit attributable to shareholders for the period - - - - 60,634 60,634

Other comprehensive income:

Change in value of investment in equity securities

4.1

- - - (14,643) - (14,643)

Net fair value gains taken through cashflow hedge reserve -3,207 - - - 3,207

Total comprehensive (loss)/income for the period -3,207-(14,643) 60,634 49,198

Transactions with owners:

Dividends paid

5.3.3

- - - - (64,609) (64,609)

Performance rights charged to income statement

6.2.1

- - 497 - - 497

Performance rights vested

5.3.2/6.2

91 -(91) - - -

Performance rights forfeited

6.2.2

- - (230)- 230-

Deferred tax on equity-based remuneration

2.3.2/6.2.2

- - 48 - -48

Balance at 26 January 2025 62,435 2,250 925 (67,450) 301,635 299,795


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

For the 52-week period ended 26 January 2025

1.Basis of Preparation

11

Thi

s 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 Gen

eral Information

B

riscoe 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).

T

he 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.

T

hese audited consolidated financial statements have been approved for issue by the Board of Directors on 11

March 2025. Certain comparative balances have been amended for consistency with the treatment in the 26

January 2025 consolidated financial statements, refer to note 5.2.5 for further details.

1.2 Material Accounting Policies

T

hese 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. T he consolidated

financial statements also comply with International Financial Reporting Standards Accounting Standards (IFRS

Accounting Standards).

T

he consolidated financial statements are presented in New Zealand dollars which is the Company’s functional

currency and the Group’s presentation currency. All financial information has been presented in thousands, unless

otherwise stated.

T

he material 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 29 January 2024 to 26 January 2025

and provide a balance sheet as at 26 January 2025. The comparative period is in respect of the 52-week period 30

January 2023 to 28 January 2024. 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

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

1.Basis of Preparation

12

control is transferred to the Company. They are deconsolidated from the date that control ceases.

I

ntercompany 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 2025 Interest 2024 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 Group’s accounting 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 Key estimates

Inventories 3.1.3 Inventory provision

Leases 3.4 Incremental borrowing rate

C

limate related risks

The Group monitors its exposure to Climate-related risks and reviews its Climate-related risk assessment annually.

As part of this annual assessment, we have not identified any material impacts requiring specific disclosure in the

financial statements. The identified climate-related risks and opportunities including both physical and transitional

impacts have been considered as part of the above critical accounting judgements and estimates.

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

For the 52-week period ended 26 January 2025

2. Performance

13

Thi

s 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 Seg

ment 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, Chief Financial Officer and the Chief People

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 (2023: Nil).

I

nformation 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 26 January 2025

Homeware Sporting

goods

Eliminations/

Unallocated

Total Group

$000 $000 $000 $000

INCOME STATEMENT

Sales revenue 489,810 301,659 -791,469

Cost of goods sold (293,980) (177,948) -(471,928)

Gross profit 195,830 123,711 -319,541

Earnings before interest and tax 56,529 44,229 3,643 104,401

Finance income 1,121 4,239 767 6,127

Finance cost (10,271) (5,177) (3)(15,451)

Net finance costs (9,150) (938)764 (9,324)

Income tax expense (20,944) (12,133) (1,366) (34,443)

Net profit after tax 26,435 31,158 3,041 60,634

BALANCE SHEET ITEMS:

Assets 396,548 266,135 29,807

1.

692,490

Liabilities 264,082 142,631 (14,018) 392,695

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

14

OTHER SEGMENTAL ITEMS:

Acquisitions of property, plant and equipment,

intangibles and investments 53,106 5,055 -58,161

Depreciation and amortisation expense 23,022 12,776 -35,798

$000

1. Investment in equity securities

23,187


Intercompany eliminations

(22,650)


Other balances

29,270

29,807

For the period ended 28 January 2024

Homeware Sporting

goods

Eliminations/

Unallocated

Total Group

$000 $000 $000 $000

INCOME STATEMENT

Sales revenue 490,116 301,837 -791,953

Cost of goods sold (279,034) (177,157) - (456,191)

Gross profit 211,082 124,680 -335,762

Earnings before interest and tax 75,267 44,764 6,265 126,296

Finance income 1,418 4,024 767 6,209

Finance cost (10,178) (5,043) (3) (15,224)

Net finance costs (8,760) (1,019) 764 (9,015)

Income tax expense (18,873) (12,254) (1,933) (33,060)

Net profit after tax 47,634 31,491 5,096 84,221

BALANCE SHEET ITEMS:

Assets 379,270 282,560 59,326

1.

721,156

Liabilities 256,861 143,988 4,439 405,288

OTHER SEGMENTAL ITEMS:

Acquisitions of property, plant and equipment,

intangibles and investments 10,826 4,233 -15,059

Depreciation and amortisation expense 22,386 12,449 -34,835

$000

1.Investment in equity securities 37,829

Intercompany eliminations (7,432)

Other balances 28,929

59,326

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

15

2.2 Income and Expenses

R

evenue 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 al ong 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.

R

ental income

Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the period of

the lease.

I

nterest 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.

P

rofit before income tax includes the following specific income and expenses:

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Income

Rental income 155 105

Dividends received 6 2,885

Insurance recovery 114 110

Gain on lease surrender -474

Expenses

Depreciation of property, plant and equipment 11,713 10,985

Amortisation of software costs 1,444 1,393

Depreciation of right-of-use assets 22,641 22,457

Interest on leases 15,448 15,220

Operating lease rental expense 37 56

Wages, salaries and other short-term benefits 97,399 99,133

Equity-based remuneration (refer also Note 6.2) 497 391

Amounts paid to auditors:

Statutory Audit 165 156

Half year review 55 47

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

16

2.3 Taxation

Current and deferred income tax

The income tax expense for the period is the tax payable on the current period’s taxable income 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.

T

he 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.

D

eferred 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.

D

eferred 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

26 January 2025 28 January 2024

$000 $000

(a)Income tax expense

Current tax expense:

Current tax 26,887 33,383

Adjustments for prior periods 967 1,245

27,854 34,628

Deferred tax expense:

Decrease/(increase) in future tax benefit current period 161 (309)

Tax effect of legislative changes

1.

7,374 -

Adjustments for prior periods (946)(1,259)

6,589 (1,568)

Total income tax expense 34,443 33,060

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

17

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

(b) Reconciliation of income tax expense to tax rate applicable to profits

Profit before income tax expense 95,077 117,281

Tax at the corporate rate of 28% (2024: 28%) 26,622 32,839

Tax effect of amounts which are either non-deductible or non-

assessable in calculating taxable income: 426 235

Tax effect of legislative changes

1.

7,374 -

Prior period adjustments 21 (14)

Total income tax expense 34,443 33,060

1. During the year, the New Zealand government passed legislation to remove commercial building depreciation for tax purposes.

As a result of the legislation change, the deferred tax liabilities have increased by $7,373,537 with a corresponding increase in tax

expense of $7,373,537 as the tax base of the Company’s buildings has reduced to nil

.

The Group has no tax losses (2024: Nil) and no unrecognised temporary differences (2024: Nil).

2.

3.2 Taxation – Balance sheet

(a) Deferred Taxation

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

Right of use

asset

Lease

liability Total

$000 $000 $000 $000 $000 $000

At 29 January 2023 191 4,149 727 (68,236) 79,791 16,622

Recognised in the income statement 181 661 -(453) 1,179 1,568

Recognised in equity -(57) 911 - - 854

Recognised in other comprehensive

income - - (1,735) - - (1,735)

At 28 January 2024 372 4,753 (97)(68,689) 80,970 17,309

Recognised in the income statement (7,007) (304) -4,215 (3,493) (6,589)

Recognisd in equity -48 469- - 517

Recognised in other comprehensive

income - - (1,247) - - (1,247)

At 26 January 2025 (6,635) 4,497 (875) (64,474) 77,477 9,990

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

18

(b) T

axation payable

The following is the analysis of the movements in the taxation payable balance during the current and prior period:


2.

3.3 Imputation credits

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Imputation credits available for use in subsequent

accounting periods 145,980 142,436

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.

T

he consolidated amounts include imputation credits that would be available to the Company if subsidiaries paid

dividends.

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Movements:

Balance at beginning of period (8,316) (11,308)

Current tax (27,854) (34,628)

Tax paid 30,488 37,195

Foreign investor tax credit (FITC) 435 425

Balance at end of period (5,247) (8,316)

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

2. Performance

19

2

.4 Earnings Per Share

Earnings per share (EPS) is the amount of post-tax profit attributable to each share.

B

asic 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

26 January 2025 28 January 2024

Net profit attributable to shareholders

$000 60,634 84,221

Basic

Weighted average number of ordinary shares on issue (thousands) 222,787 222,756

Basic earnings per share 27.2 cents 37.8 cents

Diluted

Weighted average number of ordinary shares on issue adjusted for

performance rights issued but not exercised (thousands) 223,208 223,070

Diluted earnings per share 27.2 cents 37.8 cents

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

20

This section reports the assets used to generate the Group’s trading performance and the

liabilities incurred as a result. Liabilities relating to the Group’s financing 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 Wor

king 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

26 January 2025 28 January 2024

$000 $000

Cash at bank or on hand 142,401 175,441

As

at 26 January 2025 the Group held foreign currency equivalent to NZ$1. 473 million (2024 : NZ$1.820 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 suppliers’ payable accounts. All rebates are deducted from the cost of

inventory. 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

26 January 2025 28 January 2024

$000 $000

Trade receivables 1,645 1,502

Prepayments 3,242 3,268

Other receivables 1,943 2,968

Total trade and other receivables 6,830 7,738

No interest is charged on trade receivables.

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

21

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.

T

he 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

26 January 2025 28 January 2024

$000 $000

Finished goods 103,992 110,293

Inventory provisions and adjustments (4,296) (5,425)

Net inventories 99,696 104,868

During the period the Group recognised $459.6 million (2024: $445.9 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.

T

rade 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.

E

mployee 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.

B

onus 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

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

22

L

ong 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.

P

rovisions

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

ut

ilised 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

26 January 2025 28 January 2024

$000 $000

Trade payables 67,175 65,942

Employee entitlements 12,444 19,045

Other payables and accruals 30,926 22,404

Provisions 167 142

Total trade and other payables 110,712 107,533

Shown in balance sheet as:

Current liabilities 109,301 106,292

Non-current liabilities 1,411 1,241

Total trade and other payables 110,712 107,533

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

23

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 asset’s carrying amount 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.

A

ssets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.

A

n asset’s carrying amount is written down immediately to its recoverable amount if its carrying amount is greater

than its estimated recoverable amount.

G

ains 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 buildings33 years

- Plant and equipment3 - 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 asset’s carrying

amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair 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

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

24

Land and

buildings

Plant and

equipment Total

$000 $000 $000

At 29 January 2023

Cost 105,883 97,515 203,398

Accumulated depreciation (12,161) (60,945) (73,106)

Net book value 93,722 36,570 130,292

Period ended 28 January 2024

Opening net book value 93,722 36,570 130,292

Additions 5,613 7,969 13,582

Disposals -(79) (79)

Depreciation charge (2,961) (8,024) (10,985)

Closing net book value 96,374 36,436 132,810

At 28 January 2024

Cost 111,497 101,076 212,573

Accumulated depreciation (15,123) (64,640) (79,763)

Net book value 96,374 36,436 132,810

Period ended 26 January 2025

Opening net book value 96,374 36,436 132,810

Additions 31,963 24,503 56,466

Disposals -(43) (43)

Depreciation charge (2,937) (8,776) (11,713)

Closing net book value 125,400 52,120 177,520

At 26 January 2025

Cost 143,460 124,213 267,673

Accumulated depreciation (18,060) (72,093) (90,153)

Net book value 125,400 52,120 177,520

Capital commitments Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Capital commitments in relation to property, plant and

equipment at balance date not provided for in the

financial statements 61,190

1.

11,419

1.$60

.4 million in relation to the construction and automation of the Group’s new distribution centre at Drury, South 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 which can be capitalised

are amortised on a straight-line basis over the estimated useful

economic life of 2 to 5 years. Software-as-a-service costs are expensed when they are incurred.

S

oftware is the only intangible asset recorded in the financial statements. All software has been acquired externally.

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

25

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

which reflects the terms of the lease and the type of asset leased.

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 Group’s operation. Extension options held are

exercisable only by the Group and not by the respective lessor. During the period the Group recognised all

extension options (2023: all recognised).

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 28 January 2024

Opening carrying amount 243,701

Additions 27,273

Surrender (3,199)

Depreciation for the period (22,457)

Closing carrying amount 245,318

At 28 January 2024

Cost 351,412

Accumulated depreciation (106,094)

Carrying amount 245,318

Period ended 26 January 2025

Opening carrying amount 245,318

Additions 7,586

Surrender -

Depreciation for the period (22,641)

Closing carrying amount 230,263

At 26 January 2025

Cost 357,977

Accumulated depreciation (127,714)

Carrying amount 230,263

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

3.Operating Assets and Liabilities

26

3.4.2 Lease liabilities:

As at As at

26 January 2025 28 January 2024

$000 $000

Opening value 289,180 284,969

Additions 7,586 27,273

Surrender - (3,673)

Interest for the period 15,448 15,220

Lease payments made (35,512) (34,609)

Total lease liabilities 276,702 289,180

3.4.3 Lease liabilities maturity analysis:

Minimum lease payments Interest Present value

$000 $000 $000

Within one year 35,488 (14,814) 20,674

One to five years 134,098 (48,359) 85,739

Beyond five years 229,725 (59,436) 170,289

Total 399,311 (122,609) 276,702

Current 20,674

Non-current 256,028

Total 276,702

3.4.4 Lease related expenses included in the income statement:

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Depreciation 22,641 22,457

Short-term leases 37 56

Interest on leases 15,448 15,220

Total 38,126 37,733

3.4.5 Lease payments included in the cashflow statement:

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Total cash outflow in relation to leases 35,512 34,609

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

4.Investments

27

This section explains how the Group records investments made in listed securities.

4

.1 Investment in Equity Securities

D

uring 2015, 2018 and 2019 Briscoe Group Limited acquired a total of 48,007, 465 shares in KMD Brands

Limited for a cost of $87,853,048. This holding represented a 6.75% ownership in KMD Brands Limited as at 26

January 2025.

T

hese 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 26 January 2025

1.

.

$000

At 29 January 2023 50,888

Additions -

Change in fair value credited to other reserves (15,842)

At 28 January 2024 35,046

Additions -

Change in fair value credited to other reserves (14,643)

At 26 January 2025 20,403

1. Fair value determined to be $0. 425 per share as per NZX closing price of KMD Brands Limited as

at 24 January 2025 (2024 : $0. 73) (Level 1 in the fair value hierarchy).

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

28

This section reports on the Group’s funding sources and capital structure, including its balance

sheet liquidity and access to capital markets.

5.1 Inte

rest Bearing Liabilities

B

orrowings 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.

T

here were no interest bearing liabilities as at 26 January 2025 (2024: Nil).

N

et finance cost

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Interest income 6,127 6,209

Interest expense - leases (15,448) (15,220)

Other finance cost (3) (4)

Net finance cost (9,324) (9,015)

5.2 Financial Risk Management

The Group’s activities expose it to various financial risks including credit risk, liquidity risk and market risk (such as

currency risk and equity price risk). The Group’s overall risk management programme seeks to minimise potential

adverse effects on the Group’s financial performance. The Group uses certain derivative financial instruments to

hedge certain risk exposures.

5.

2.1 Derivative financial instruments

D

erivatives 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).

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.

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

29

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.

A

mounts 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 the cash flow hedge reserve 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 I

nterest 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 Group’s short to 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 Group’s liquidity 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 Group’s liquidity

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.

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

30

The table below analyses the Group’s 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 ‘outflow’ 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 hedge ‘inflow’ 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 26 January 2025

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 (83,299) - - - (83,299) (83,299)

Forward foreign exchange contracts

Cash flow hedges:

-outflow (28,352) (12,141) (2,070) (4,621) (47,184)

-inflow 30,142 13,106 2,180 4,780 50,208

-Net 1,790 965 110 159 3,024 3,024

As at 28 January 2024

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 (84,516) - - - (84,516) (84,516)

Forward foreign exchange contracts

Cash flow hedges:

-outflow(14,724) (17,474) (12,540) (401)(45,139)

-inflow 14,732 17,597 12,690 409 45,428

-Net 8 123 150 8 289 289

The cash flow hedges inflow amounts use the forward rate at balance date.

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

31

5.2.5 Market risk

Equity price risk

The Group is exposed to equity price risk arising from the investment held in KMD Brands Limited, classified in the

bal

ance 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

r

espect of purchases of inventory directly from overseas suppliers.

The Group’s 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-t

erm 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

f

inancial instruments at balance date:

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Current assets

Forward foreign exchange contracts 3,058 548

Total current derivative financial instrument assets 3,058 548

Current liabilities

Forward foreign exchange contracts 34 259

Total current derivative financial instrument

liabilities 34 259

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

mar

ket. 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

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

32

At balance date these contracts are represented by assets of $3,058,2 84 (2024 : $548,213) and liabilities of

$34,190 (2024: $259,377) and together are included in equity as part of the cash flow hedge reserve, net of

deferred tax, as a net gain of $2,177,347 (2024 : net gain $ 207,962). 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 $72,568 (2024: net

gain of $41,557). The total of these net gains and losses amount to a net gain of $2,249,915 (2024: net gain of

$249,519).

Other comprehensive income reported in the consolidated statement of comprehensive income for the year ended

28 January 2024 has been amended to remove the component of cash flow hedge reserve which represented

transfers of hedging gains/losses upon settlement of forward contracts net of tax as separately disclosed in the

statement of changes in equity ($2,341,903). The change is limited to the statement of changes in equity and other

comprehensive income and has no impact on profit, cash flow or the balance sheet of the Group.

When forward foreign exchange contracts are not designated and tested as an effective hedge, the gain or loss on

t

he forward foreign exchange contract is recognised in the income statement.

A

t balance date there are no such contracts in place (2024: 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 -7.5% / +7.5% (2024: -5% / +10%) in the NZD against the USD, from the period-end rate of 0.5703

(2024: 0.6106),

•A shift of -7.5% / +7.5% (2024: N/A) in the NZD against the EUR, from the period-end rate of 0.54559 (2024:

N/A),

•A shift of -1.25% / +0.25% (2024: -0.25% / +0.25%) in market interest rates from the period-end weight

ed

av

erage deposit rate of 4.56% (2024: 5.73%),

•A shift of -10% / +20% (2024: -3 0% / +10%) in the NZX share price of KMD Brands Limited (formerly

Kathmandu Holdings Ltd) from the period-end closing share price of $0. 425 (2024: $0. 73).

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:

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

33

A

s at 26 January 2025

Interest rate Foreign exchange rate Equity price

Carrying -1.25%+0.25%-7.5%+7.5%-10%+20%

amount Profit Equity Profit Equity EquityEquityEquity Equity

$000 $000 $000 $000 $000 $000 $000 $000 $000

Financial Assets:

Cash and cash

equivalents

1.


142,401 (1,268) (1,268) 254 254 85 (73)--

Derivatives – designated

as cashflow hedges

(Forward foreign

exchange contracts)

2.

3,058 - - - - 2,701 (2,321) - -

Investment in equity

securities

3.

20,403 - - - - - - (2,040) 4,081

Financial Liabilities:

Derivatives – designated

as cashflow hedges

(Forward foreign

exchange contracts)

2.

34 - - - - 227 (200)--

Total increase /

(decrease)

(1,268) (1,268) 254 254 3,013 (2,594) (2,040) 4,081

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.

As at 28 January 2024

Interest rate Foreign exchange rate Equity price

Carrying -0.25%+0.25%-5%+10%-30%+10%

amount Profit Equity Profit Equity Equity EquityEquity Equity

$000 $000 $000 $000 $000 $000 $000 $000 $000

Financial Assets:

Cash and cash

equivalents

1.


175,441 (313)(313)313 313 69 (119)--

Derivatives – designated

as cashflow hedges

(Forward foreign

exchange contracts)

2.

548 - - - - 1,846 (991)--

Investment in equity

securities

3.

35,046 - - - - - - (10,514) 3,505

Financial Liabilities:

Derivatives – designated

as cashflow hedges

(Forward foreign

exchange contracts)

2.

259 - - - - 313 (1,549) - -

Total increase /

(decrease)

(313)(313)313 313 2,228 (2,659) (10,514) 3,505

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

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

34

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 KMD Brands Limited. There is no profit or loss sensitivity as

impacts from changes in KMD Brands Limited’s share price are accounted for through equity.

5.3 Equity

5.3.1 Capital risk management

The Group’s capital comprises contributed equity, reserves and retained earnings.

T

he Group’s 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.


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

s

hare 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

26 January 2025 28 January 2024 26 January 2025 28 January 2024

Shares Shares $000 $000

Opening ordinary shares 222,765,778 222,645,586 62,344 62,136

Issue of ordinary shares arising from the

vesting of performance rights 24,234 120,192 91

1.

208

1.


Balance at end of period 222,790,012 222,765,778 62,435 62,344

1. When performance rights vest, the amount in the equity-based remuneration reserve relating to those performance

rights vested is transferred to share capital. The amount transferred for the 24,234 shares i ssued during the period

ended 26 January 2025 was $90,992 (2024: $207,634 for the 120,192 shares issued).

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

5.Financing and Capital Structure

35

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

26 January 2025 28 January 2024 26 January 2025 28 January 2024

Cents per share Cents per share $000 $000

Interim dividend for the period ended 26 January 2025 12.50 -27,849 -

Final dividend for the period ended 28 January 2024 16.50 -36,760 -

Interim dividend for the period ended 28 January 2024 -12.50-27,846

Final dividend for the period ended 29 January 2023 -16.00-35,642

29.00 28.50 64,609 63,488

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 $434,936 (2024 : $424,981) were provided to shareholders not tax resident in

New Zealand, for which the Group received a Foreign Investor Tax Credit entitlement.

On 11 March 2025 the Directors resolved to provide for a final dividend to be paid in respect of the period ended 26

January 2025. The dividend will be paid at a rate of 10.0 cents per share for all shares on issue as at 20 March

2025, with full imputation credits attached.

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).

E

quity-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 KMD

Brands Limited. (Refer also to the consolidated statement of changes in equity and note 4.1).

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

6.Other Notes

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.

D

uring 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.

The G

roup 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 of $732,500 (2024: $722,8 97) from the Group, under

an

agr

eement to lease premises to The Sports Authority Limited (trading as Rebel Sport). The remaining

non-cancellable term of this lease is 1.2 years (2024: 2.2 years) with a payment commitment of

$854,583 (2024: $1,587,083).

•Kein Geld (NZ) Limited, an entity associated with RA Duke, received rental payments of $600,634

(2024: $600,634) as owner of the Briscoes Homeware premises at Wairau Park, Auckland, under a

n

agr

eement to lease premises to Briscoes (NZ) Limited. The remaining non-cancellable term of this

lease is 7.6 years (2024: 8.6 years) with a payment commitment of $5,033,296 (2024: $5, 633,930).

•Kein Geld Westgate Limited, an entity associated with RA Duke, forms part of an unincorporated joint

venture known as Westgate Lifestyle Centre Joint Venture. The joint venture owns Westgate Lifestyl

e

Shopping Centre at Westgate, Auckland, which includes the Briscoes Homeware and Rebel Sport

premises. Rental payments of $565,144 (2024: $423,858) were received under an agreement to lease

pr

emises to Briscoes (NZ) Limited. The remaining non-cancellable term of this lease is 0.3 years

(2024: 1.3 years) with a payment commitment of $141,286 (2024: $706,431). The joint venture als

o

r

eceived rental payments of $301,253 (2024: $225,939) under an agreement to lease premises to The

Sports Authority Limited (trading as Rebel Sport). The remaining non-cancellable term of this lease is

0.3 years (2024: 1.3 years) with a payment commitment of $75,313 (2024: $376,566).

•The RA Duke Trust (including RA Duke Limited) received dividends of $49,754,251 (2024

:

$48,896

,419).

•P Duke, spouse of RA Duke, received payments of $65,000 (2024 : $65,000) in relation to her

employment as an overseas buying specialist with Briscoe Group Limited, and rental payments of

$968,512 (2024 : $968,512) as owner of the Briscoes Homeware premises at Panmure, Auckla

nd

under

an agreement to lease premises to Briscoes (NZ) Limited. The remaining non-cancellable ter

m

o

f this lease is 6.3 years (2024: 7.3 years) with a payment commitment of $6,343,751 (2024

:

$7,312, 2

63).

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

6.Other Notes

37

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 Chief People Officer.

Key mana

gement compensation was as follows:

Period ended Period ended

26 January 2025 28 January 2024

$000 $000

Salaries and other short-term employee benefits 3,857 4,852

Equity-based remuneration 497 240

Directors’ fees 433 400

Total benefits 4,787 5,492

Key management did not receive any termination benefits during the period (2024: Nil).

Key management did not receive and are not entitled to receive any post-employment or long-term benefits

(2024: Nil).

Executives (excluding directors) included in key management received dividends of $3 23,709 (2024 :

$304,524) in relation to Briscoe Group shares held.

6.1.3 Directors’ fees and dividends

Directors received directors’ fees and dividends in relation to their personally held shares as detailed below:

Period ended

26 January 2025

Period ended

28 January 2024

Directors’ fees Dividends Directors’ fees Dividends

$000 $000 $000 $000

Executive Director

RA Duke - - - -

Non-Executive Directors

RPO’L Meo 163 -154-

AD Batterton 92 -82-

RAB Coupe 91 3 87 3

HJM Callaghan 87 -77-

433 3 400 3

The following Directors received dividends in relation to their non-beneficially held shares as detailed below:

Period ended

26 January 2025

Period ended

28 January 2024

$000 $000

Executive Director

RA Duke 49,754 48,896

Non-Executive Directors

RPO’L Meo 29 29

AD Batterton 8 6

RAB Coupe - -

HJM Callaghan --

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

6.Other Notes

38

6.2 Employee Equity-Based Remuneration

6.2.1 Equity settled performance rights

T

he 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.

O

n 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 seventh

tranche of performance rights were issued under this programme during the period.

Performance rights movements during the period are summarised below:

T

ranche Grant Date

Balance at

start

of period

(number)

Granted

during

the period

(number)

Vested

during

the period

(number)

Lapsed /

forfeited

during

the period

(number)

Balance at

the end

of period

(number)

4 15 Jun 2021 74,562 -(24,234)(50,328) -

5 5 Aug 2022 125,977 --(14,619) 111,358

6 3 Aug 2023 206,445 --(21,563) 184,882

7 22 Oct 2024 -298,135- - 298,135

406,984 298,135 (24,234) (86,510) 594,375

I

n 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

5 5 Aug 2022 50% 50%

6 3 Aug 2023 50% 50%

7 22 Oct 2024 50% 50%

T

he proportion of performance rights subject to the absolute TSR growth hurdle which may vest is dependent

on Briscoe Group Limited’s 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 5 Tranche 6 Tranche 7

0% < 5.7% CAGR < 10.8% CAGR < 9.0% CAGR

1% - 99% (Straight-line prorata)

=>9.0%, < 11.0% CAGR

50% = 5.7% CAGR = 10.8% CAGR

51% - 99% (Straight-line prorata) >5.7%, < 6.7% CAGR > 10.8%, < 11.8% CAGR

100% => 6.7% CAGR => 11.8% CAGR

=> 11.0% CAGR

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

6.Other Notes

39

T

he TSR performance is calculated across the following periods:

Tranche Performance Period

5 Announcement date of FY 2021/22 Result to announcement date of FY 2024/25 Result

6 Announcement date of FY 2022/23 Result to announcement date of FY 2025/26 Result

7 Announcement date of FY 2023/24 Result to announcement date of FY 2026/27 Result

T

he 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 5 Tranche 6 Tranche 7

Fair value of TSR performance rights $143,287 $144,305 $354,483

Current price at grant date $5.56 $4.68 $5.06

Risk free interest rate 3.54% 5.22% 4.18%

Expected life (years) 2.75 2.62 2.40

Expected share volatility

1.

24% 22% 22%

1.Volatility considers the volatility of the Briscoe Group (BGP) NZD share price based on the average

weekly volatility over the last year (weekly data) as well as the average 90-day volatility for the past 3

years (measured on a daily basis).

T

he estimated fair value for each tranche of performance rights issued is amortised over the vesting period

from the grant date.

T

he proportion of performance rights subject to the EPS growth hurdle which may vest is dependent on

Briscoe Group Limited’s 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 5 Tranche 6 Tranche 7

0% < 1.1% CAGR < -1.9% CAGR< 1.0% CAGR

1% - 99% (Straight-line prorata)

=>1.0%, < 4.0% CAGR

50% = 1.1% CAGR = -1.9% CAGR

51% - 99% (Straight-line prorata) > 1.1%, < 2.6% CAGR>-1.9%, < 0.4% CAGR

100% => 2.6% CAGR => 0.4% CAGR

=> 4.0% CAGR

T

he EPS performance is calculated across the following periods:

Tranche Performance period

5 FY 2024/25 EPS relative to FY 2021/22 EPS

6 FY 2025/26 EPS relative to FY 2022/23 EPS

7 FY 2026/27 EPS relative to FY 2023/24 EPS

T

he fair value of the EPS performance rights have been assessed as the Briscoe Group Limited’s 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 $4.89, $4.00 and $4. 48 for tranche

5, tranche 6 and tranche 7, respectively.

The estimated fair value for each tranche of performance rights issued is amortised over the vesting period

Briscoe Group Limited
Notes to the Consolidated Financial Statements

For the 52-week period ended 26 January 2025

6.Other Notes

40

from grant date.

V

esting 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 $496,627 (2024 : $390,873) in

relation to performance rights.

6.2.2 Equity-based remuneration reserve

Period ended

26 January 2025

Period ended

28 January 2024

$000 $000

Balance at beginning of period 701 575

Current period amortisation 497 391

Performance rights vested transferred to share capital (91) (208)

Performance rights lapsed/forfeited (230) -

Deferred tax on performance rights 48 (57)

Balance at end of period 925 701

6.3 Events After Balance Date

On 11 March 2025 the Directors resolved to provide for a final dividend to be paid in respect of the period

ended 26 January 2025. The dividend will be paid at a rate of 10.0 cents per share for all shares on issue as

at 20 March 2025, with full imputation credits attached (Note 5.3.3).

6.4 New Accounting Standards

T

he Group has applied the following standards and amendments for the first time in the preparation of these

consolidated financial statements.

•FRS-44 amendment - Disclosure of fees for audit firms’ services.

•IFRS Interpretations Committee agenda decision July 2024 - Disclosure of Revenues and Expenses

for Reportable Segments (IFRS 8).

The amendments listed above did not have any impact on the amounts recognised in the financial

statements, however the IFRS Interpretations Committee agenda decision required the Group to provide

enhanced segment disclosures.

C

ertain new accounting standards, amendments to accounting standards and interpretations have been

published that are not mandatory for the 26 January 2025 reporting period and have not been early adopted

by the Group. Other than NZ IFRS 18 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.

N

Z IFRS 18: Presentation and Disclosure in Financial Statements will be effective for annual reporting

periods beginning on or after 1 January 2027. This new standard, which is mandatory for the Group in the

2028 financial year, is expected to change the presentation of the Group’s consolidated income statement.

The Group will disclose more information in the future when a full assessment of the impact of the standard

has been completed.


Independent auditor’s report

To the shareholders of Briscoe Group Limited


Our opinion

In our opinion, the accompanying consolidated financial statements (the 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 26 January 2025, its financial performance,

and its cash flows for the 52-week period then ended in accordance with New Zealand Equivalents to

International Financial Reporting Standards (NZ IFRS) and International Financial Reporting

Standards Accounting Standards (IFRS Accounting Standards).

What we have audited

The Group's financial statements comprise:

● the consolidated balance sheet as at 26 January 2025;

● the consolidated income statement for the 52-week period then ended;

● the consolidated statement of comprehensive income for the 52-week period then ended;

● the consolidated statement of changes in equity for the 52-week period then ended;

● the consolidated statement of cash flows for the 52-week period then ended; and

● the notes to the financial statements, comprising material accounting policy information 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 Auditor’s responsibilities for the audit of the 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 financial statements of the current year. These matters were addressed in the context

of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not

provide a separate opinion on these matters.






PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand

T: +64 9 355 8000, www.pwc.co.nz

41


Description of the key audit

matter

How our audit addressed the key audit matter

Inventory existence and

valuation

As at 26 January 2025, the Group

held inventories of $99.7 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 as 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 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, 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 of certain inventory controls,

particularly controls over the cyclical counting process;

● observing management’s cyclical stocktake process at

selected locations 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 or contracts providing evidence to

support the accuracy of inventory costing;

● testing that period-end inventory is carried at lower of

cost and net realisable value by comparing a sample of

inventory items to the expected selling price;

● held discussions with management to understand and

corroborate the assumptions applied in estimating

inventory provisions;

● on a sample basis, testing unearned rebate income to

supplier contracts;

● assessing the adequacy of the provision for slow-moving

inventory by comparing historical write-offs against the

level of provision, and assessing provision rates for

various stock categories; and

● assessing the shrinkage provision by performing

analytical procedures over 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.



PwC 42


Our audit approach

Overview


Overall group materiality: $4.75 million, 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 selected transactions and balances to audit based on the overall

group materiality to Briscoe Group Limited at a consolidated level

rather than determining the scope of procedures to perform by auditing

only specific subsidiaries or entities.


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 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 financial statements are free from material misstatement.

Misstatements may arise due to fraud or error. They 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 the financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality,

including the overall Group materiality for the 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 the aggregate, on the 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 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 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 financial statements does not cover the other information and we will not express

any form of audit opinion or assurance conclusion thereon.


PwC 43


In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated.

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 financial statements

The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of

the financial statements in accordance with NZ IFRS and IFRS Accounting Standards, and for such

internal control as the Directors determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to

continue as a going concern, disclosing, as applicable, matters related to going 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.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that

includes our opinion. Reasonable assurance is a high level of assurance, 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 financial statements.

A further description of our responsibilities for the audit of the financial statements is located at the

External Reporting Board’s website at:

https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/

This description forms part of our auditor’s report.

Who we report to

This report is made solely to the Company’s shareholders, as a body. Our audit work has been

undertaken so that we might state those matters which we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our

audit work, for this report, or for the opinions we have formed.


The engagement partner on the audit resulting in this independent auditor’s report is John (Jolly)

Morgan.


For and on behalf of:







PricewaterhouseCoopers Auckland

11 March 2025


PwC 44

---

FY25 ADDENDU M
1

FullYear

Addendum

52 WEEK PERIOD ENDED 26 JANUARY 2025

FY25 ADDENDU M
2

Contents

3

4

5

6

7

8

9

10

11

12

13

14

16

17

Hig hlights

Sa les

Gross Pr ofit Ma rgin %

Net Profit After Ta x

Balance Sh eet

Customer Satisfaction

Online Experience

VIP C lubs

Our T eam

Su stainability

Su pply Chain

Stra tegy

Finan cia l Summa ry

Brand Portfolio

FY25 ADDENDU M
3

Highlights

Full Year E nded 26 January 2025

Stron g sales perfor mance of 99.94% of

last year's r eco rd sales despite

extremelychallengin g eco nomic an d

retail conditions.

•Onl ine sales 19.69% of total

Group sal es.

•Total Customer databasenow

over 2.1m.

•Continued growth in Di rect to

Customer sales.

Solid Online Performance

•Group sal es $791.5m.

•99.94% of LY record sal es.

•Homeware sales -0.06% down to

$489.8m.

•Sporting Goods sal es –0.06%

down to $301.7m.

•Group Sales +21.20% vs Pre-

Covid $791.5m vs $653.0m.

Sales

•Net cash at period end $142.4m.

•Total inventories decreased by

$5.2m at year end to $99.7m.

•Capex spend of $58.2m.

•Total dividend 22.5cps,

payout ratio 74%.

Strong Balance Sheet

•Gross Profit 40.37% down from

42.40%.

•Yet to see any recovery in the

economic environment, the

most chall enging trading

conditions for many years..

Gross Profit Performance

•FY NPAT $68.0m (before impact

of tax adjustment).

•Strong result in tough trading

conditions.

•Total store and overhead costs

well control led at only +1.11%

increase over last year.

NPAT Performance

•Strategic projects on track and on

budget.

•North Island Di stri bution centre

maki ng good progress with

groundworks commenced in

February 2025.

•New Warehouse Management

System (WMS) successfull y

launched and now embedded.

•Roll out of Electroni c Shelf Labels

now completed and delivering

onthe business case.

•New range planning, all ocati on

and replenishment tool on track

to launch first modules in May 25.

Strategic Initiatives

contributing to

increased profitability

FY25 ADDENDU M
4

Sales

Both Homewares and Sportin g Goods

deliver ed near flat full year sales on

last year's recor d sales.

PERCENTAGE GROWTH

BR ICKS & MORTAR VS ON LINE

Homeware and Spor ting Go ods

achieved 99.9 4% o f last year's sales.

Goo d sales gro wth since Covid (YE

Jan2020) of 21.20%.

Sales slowed due to very

challenging market conditions.

47 Br iscoes Homeware and

43 Rebel Sport sto res.

Online developments driving growt h

in o nline mix.

FY25 ADDENDU M
5

Gross Profit Margin %

Continued pressure on gross profit margin due to promotional intensity.

Margin rate despite the challenges, is still above pre-Covid leve ls by 94 basis points.

FY25 ADDENDU M
6

* Before impact of $7.4m tax adjus tment

Net Profit After Tax (NPAT)

Continued solid NPAT performance despite

difficult trading environm ent.

COST OF DOING BUSINESS

Continued focus on costs and

efficiency im proveme nts.

FY25 ADDENDU M
7

Balance Sheet

Excellent improvement in

both quantum and

quality ofinventory.

Healthycash position as

strategic initiatives gain

momentum.

Continue to invest in our

strategic growth plan

despite tough ongoing

market conditions.

Investment in the

strategic growth plan will

require a funding facility

in 2025 through to 2028.

IN VENTOR Y ($M)

NET CASH ($M)

CAPEX ($M)

FY25 ADDENDU M
8

Record levels of satisfaction

achievedfor th e past th ree

years in o ur NPS scores.

On an ann ual basisBriscoes

Homeware no w ru nning abo ve

80 co nsist ently and Rebel

Spo rt over 72.

Th e team con tinue to deliver

Market leadingservice

levelsalongside excellen t

costcon trol.

Customer Satisfaction

at ourHeart

BR ISCOES HOMEWARE NPS

REB EL SPORT NPS

FY25 ADDENDU M
9

Online Platform

Investment

Th is year w e contin ued to invest in ouron lin e

and store fulfilment techno lo gy, to bring ou r

custo mers th e best o nline experien ce.

We expanded our existing co upons o ffering and

introduced evening express delivery, member

pricin g and a suite of AI t ools designed to

optimise w ork-flow.

We will be deliverin g n ew eCommerce and Direct

to Cu st omer platforms in FY26 -Ado be

Commerce and Marketplacer, tw o best in breed

platforms th at w ill provide a great experience for

ou r customers.

We’ve dispatched

3,500,000 units!

SIGNIFICANT

GROWTH IN

CLICK& COLLECT

11%

YOY

1.6M TOTAL

ONLINE ORDERS

Same-Day delivery

launched in Auckland,

Wellington, Christchurch

and Hamilton.

CLICK& COLLECT

SHARE UP 5%

LABOUR SPEND

DOWN 1%

Improvements in

online fulfillment

FY25 ADDENDU M
10

VIP Clubs

We have a large, growing and loyal customer membership

programme with over 2.1million club members.

FY25

Total databa se

1.125m +13.8%

Member frequency

+38% v non-members

Member an nual spend

+24.9% v non-members

FY25

Total databa se

1.03m+14.1%

Member frequency

+24% v non-members

Member an nual spend

+25% v non-members

FY25 ADDENDU M
11

Our Team

TEAM DEVELOPMENT

4

Our Ma nagement & Leadership Devel opment P rogramme

continues to b e recogni sed a nd well received as a valua ble

ai d in b uild ing org anisa tiona l cap abi lity in b oth opera tiona l

and supp ort roles. FY2 5 saw a further four cohorts throug h the

programme wi th a b lend of p articipa nts from stores and

supp ort functions.

GENDER PAY EQUITY

<1%

Our Reta il Manag ement Teams

lea d ov er 2 ,100 of our p eop le

throughout our stores. Not onl y d o

we continue to see an i ncreasing

proportion of women in our store

lea dership roles b ut ensuring pay

equi ty has resulted in there being

less than 1% va ri ati on in pa y on the

ba sis of gender across different

roles and tiers.

RETENTION

19.6%

Lab our turnover wa s red uced by

al most 20% across the fi nancial

yea r. It's no surprise that a

hap py and contented team is

cri tical for hap py and satisfied

custom ers. O ur team tend to

sta y l onger and provid e

excell ent customer service

ba sed on a depth of knowledg e

and experi ence.

ENGAGEMENT

+0.3

Team member engag ement cont inued to increase t hroug hout

the year wit h an overa ll increa se of 0.3 which i s al so 0.3 abov e

the indust ry benchma rk for our industry.

HEAL TH & SAFETY

61%

Continued focus on av oidi ng i njury a t work saw further red uctions

in our Tota l Recorda ble Injury Frequency Rate (-61%) and our Lost

Tim e I njury Freq uency Rate (-68%). Vig ila nce in tra ffic

manag ement and red uci ng ma nual handl ing inj uries is cri tical to

the health, safety and wellb eing of our tea m. 202 4 saw

di gitisationof 3 criti ca l risk tra ining p rograms, consistency i n

del ivery , and com plem enting m anag ement traini ng.

INNOVATIVE APPLIED LEARNING

79% -85%

Ini tia l assessment scores on our

manual ha ndli ng reinforcement

program d emonstrated hig h l ev el s of

retention of what had b een learned

using our innov ati ve Vi rtual Rea lity

trai ning system. Eig hty-six p articipa nts

across our plot sites comp leted the fi rst

module wi th 50 also compl eting our

second modul e. Full implementation of

the soluti on will occur throug hout FY26.

A broad range of investments in our people, systems and processes are contributing to member

capabilities, competence and confidence. Our team is well placed to drive the business forward.

FY25 ADDENDU M
12

Sustainability

Our Steps To A Better Tomorrow

Governance

Community

Environment

19,040 balls through the

pass-it-forward program for

the year.

60 community groups and

sports clubs supported

through our Grassroots

Grant program, investing

$160K in NZ grassroots sport.

A key sponsor of the Auckland

Football Club (AFC), focusing on

investing in the AFC development

centre.

78,000 Kg's of product returns

diverted from landfill through

our product returns program

for the year, reducing our

environmental footprint and

maximizing our social impact

through product donation.

Committed to diverting 90%

of our waste from landfill by

2030.

Our Ethical Supply Chain program

continues to provide reassurance

that ethical and environmental

standards are followed by our

suppliers.

Initial climate transition plan

completed and incorporated

in year 2 climate-related

disclosures to be released in

annual report.

Invested in team training and

engagement, ensuring our

teams are informed and

equipped tostrengthen our

Sustainability impact.

Launcheda Sustainability

Webpage: providing stakeholders

with easy access to key

Sustainability information.

FY25 ADDENDU M
13

Supply Chain

Transformation

Phase 1–Implementation of the

Warehouse management System (WMS)

at the current Auckland distribution

centre(DC) is complete.

Phase 2 -thenew Auckland DC

construction has started and is on track.

•DC fa ci lity design includi ng automation,

now complete.

•Earthworks commenced February 2025.

Phase 1 Design of new

Auckland DC –Completed:

•The new W arehouse Ma nagement System

(WMS) is now embedd ed i n the current

Distribution Center (DC).

•The team hav e ad opted wel l to the new

system a nd are uti lisi ngthe enhanced

functiona lity.

•Deploy ing the new sy stem is fa st tra cking key

lea rning s and wil l hel p to shap e the

operati ons process in our new North I sl and

DC.

Phase 1 WMS–Completed:

•State of the art facili ty and equi pment.

•Reduced stock l evel i n stores by hol ding

more in the DC a nd regul arl y repl eni shing

our stores in line wi th dema nd.

•Improved ra nge of products a nd p otenti al

for newproduct ca tegories i n stores.

Benefits for our Team

and Customers

Phase 2–In Progress 2025:

•Detai led opera tiona l d esi gn, p rocesses

and system requi rem ents for our new dc is

well underway a nd wil l be completed by

the end of July 202 5.

•Confi gura tion, develop ment and testi ng of

the WMS for use in the new dc will take

pl ace through to the end of 2 025.

•Automa tion software desig n and p rocess

flow optimisationkicks off in Ma rch 2 025

and wil l b e devel oped over several

iterations with our i nterna tiona l v end or

Knapp .

•The a utomati on software b uild will then

commence la te 2 02 5.

•Ini tia l target date for practi ca l com pletion

of the construction i s July 2 02 6.

FY25 ADDENDU M
14

LONG TERM GROWTH

ACCELERATION

Exp lore new business

opp ortuniti es to dri ve

sig nificant growth.

Commercial opp ortunity .

Direct To C ustomer (DTC)

sal es accel erat ion.

Onl ine P latform up grade.

RETAIL EXPERIENCE

EVOLUTION

Flag ship store concept s.

Electronic Shel f La bels ( ESL).

Rebel Sport & Bri scoes

H omeware product

range opti mi sa tion.

Cross-sell &up-sell focus.

Loya lty evol ution.

SUPPLY CHAIN

TRANSFORMATION

New Auckl and

Distribution Centre.

Improved all oca tion and

rep lenishment of inventory.

Rebel Sport inventory

optimisation.

Op timisa tion of store spa ce.

BUILDING

BLOCKS

Tech Architecture.

Peop le cap abi lity

and cap acity .

Automa tion and the use of

AI t o sim pl ify processes.

Increa se positive impact

through sustaina bil ity .

Record Levels

of Investment

into Strategic

Growth:

Group Strategy 2024 –2026

•Exp anded DTCto

cover over 110

S uppl iers.

•New onli ne

pl atformAd obe

selected.

•ESL Lab el s rollout

comp leted to al l

Bri scoes a nd Rebel

stores.

•Rebel flag shi p store

desig n complete.

•New DC Si te d esi gn

comp leted.

•Rebel cl ea ra nce stock

red uction.

•The new A ssortment

Pl anning , Al locati on &

Replenishment

systemImpa ct

Ana lytics (I A) on

track.

•New Marketpl acer

platform selected and

design well advanced.

•Over 60 team

members completed

our Leadership

program.

•Over 200 ethical

supplier audits

completed.

•New Adob e pl atform

due to go l ive by July

202 5.

•Test of new product

categ ories on the

Marketpl acerDTC

pl atform July 2 02 5.

•Further opt imisati onof

Briscoes and Rebel

product ranges.

•New Rebel Flagship

store due to open by

January 2026.

•Completion of Bri scoes

Fl agship store design.

•Loyalty platform test for

Rebel S port.

•Early access to new

Auckla nd DC site.

•IA A llocation a nd

Replenishment

modules launched by

July 2 02 5.

•IA A ssortment

Pl anning d ue to go

li ve b y O ctober 2025.

•Roll out suppl ier

aud itprogramto

localsupp liers.

•Tech pl atform rev iew

for next 5 to 7 yea rs

underwa y.

•Continued focus on

waste m inim isa tion.

Delivered in

year end

Jan 2025:

Key

Deliverables

for year end

Jan 2026:

GOAL:

DELIVER THE

BEST RETAIL

EXPERIENCE IN

NEW ZEALAND

FY25 ADDENDU M
15

The Strength of

Our Core Business

Fundamentals

Provides Platform

for Continued

Strategic

Investment:

Trading performance near flat with

LY record sales and ah ead of retail

spend trends fo r both Ho mew ares

and fo r Spo rting Goods.

Cont in ue to in vest in o ur strategic

grow th plan whilst oth ers are

retrenching to su rvive th e do wnt urn.

Key businesshealth metrics

con tinue to steadily impro ve,recor d

levels ofVIP club members,

custo mer and team satisfaction

achieved.

Bot h Homewares an d Sportin g

Goo ds are tradin g w ell despit e

challengin g co ndit io ns.

World class team with proven ability

todeliver on bo th sho rt term and

lon ger-term priorities.

Our biggest ever investment in

supply chain transformat io n is on

track with phase 1 of the systems

complet ed and new Au ckland DC

con st ruction st art ed.

Grou p in vento ry quality impro ved

with relentless fo cus on o pt imising

promotio nal and clear an ce events.

Th e gro up bu sin ess model

con tinues to hold up stron gly and

take share fr om co mpetito rs in the

challengin g eco nomic climat e.

FY25 ADDENDU M
16

Financial Summary

FY Jan 20FY Jan 21FY Jan 22FY Jan 23FY Jan 24FY Jan 25

H omewareRevenue -$000

410,908 439,234 460,887 487,501 490,116

489,810

Sport ing Good sRevenue-$000

242 ,109 262 ,563 283,563 298,353 301,837

301,659

Group TotalRevenue-$000

653,017 701,797 744,450 785,854 791,953

791,469

Onl ineMixofSales-%

11.3%18.8%21.5%19.0%18.7%

1 9.7%

Group Gross Margin -$000

257,502 307 ,116 340,642 345,922 335,762

319,541

Group Gross Margin -%

39.4%43.8%45.8%44.0%42.4%

40 .4 %

Group EBI T -$000

97,22 3 115,886 136,468 135,494 126,2 96

1 04,401

Group EBI T -%toSales

14.9%16.5%18.3%17.2 %15.9%

1 3.2%

Group NP AT -$000

62,583 73,199 87,909 88,437 84,221

68,008

5

Group NP AT -%toSales

9.6%10.4%11.8%11.3%10.6%

8.6%

FreeCa shFlow -$M ( Operati ngCa sh FlowlessCa pex)

60.3 81.1 76.6 128.0 108.3

51 .6

Divi dendsPerS hare-cps

8.5

1

28.5

2

27 .028.0 29.0

22 .5

EarningsPerShare-cps

28.232.939.539.7 37.8

30.5

5

NetCa shPosi tion-$M

67.4 100.4 102.5 149.9

3

175.4

4

1 42.4

6

Inv ent oryTurnover -Xp.a .(CO GS di vid edbyav erag e inventory)

4.74.43.83.7 4.1

4.6

1.Final dividend of 12.5cps cancelledas a result of Co vid-19 pandemic.

2. Includes special dividend of 6cps.

3. Includes $26 million of creditor paym ents made on 31 J anuary 2023.

4. Includes$20million of creditor payments made on 31 January 2024.

5. Excludes $7.4 millionone-off non-cash tax expen se adjustment.

6. Includes $30 million of creditor payments m ade on 31 Janu ary 2025.

FY25 ADDENDU M
17

The Largest Range of Global

Brands in Homewares and

Sporting Goods

BRISCOES HOMEWARE

REBEL SPORT

200+ Brands!

---

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 20/03/2025

Ex-Date (one business day before the

Record Date)

19/03/2025

Payment date (and allotment date for

DRP)

27/03/2025

Total monies associated with the

distribution

1


$ 22,279,001.20000000

Source of distribution (for example,

retained earnings)

Retained Earnings

Currency NZD

Section 2: Distribution amounts per financial product

Gross distribution

2

$0.13888889

Gross taxable amount

3

$0.13888889

Total cash distribution

4

$0.10000000

Excluded amount (applicable to listed

PIEs)

$-

Supplementary distribution amount $0.01764706

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

$0.03888889

Resident Withholding Tax per

financial product

$0.00694444

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


12/03/2025






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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