JD's half year report18 Feb 2019 14:07
Cash and Working Capital
On 29 May 2018, the Group agreed a new syndicated committed £400 million bank facility which has a term of five years. This facility replaces the previous syndicated committed facility of £215 million. The new facility, together with the ongoing strong cash generation in our core retail fascias has been used to fund the significant investments that we have made in the period on both acquisitions, principally Finish Line with a consideration of £400.5 million before net cash acquired of £28.3 million, and capital expenditure with the gross spend in the period (excluding disposal costs) increasing to £91.4 million (2017: £76.3 million). Consequent to these significant investments, there was net debt at the end of the period of £85.1 million (2017: net cash £222.7 million).
The primary focus of our capital expenditure remains our retail fascias with a spend in the period of £44.0 million (2017: £40.3 million) with the spend on our international businesses increasing to £24.9 million (2017: £20.5 million). Elsewhere, the programme of works to fit out the 352,000 square foot extension to our Kingsway warehouse facility is ongoing with total spend in the period at the site of £28.5 million (2017: £10.2 million).
(!!!!!!!) We currently expect the capital expenditure for the full year to be approximately £185 million. In addition, we will use our cash resources and new syndicated bank facility to make selected acquisitions and investments where they benefit our strategic development. (!!!!!!)
Net stocks of £824.1 million have increased substantially relative to the prior year (2017: £414.3 million) principally as a result of stocks in the recently acquired businesses including £270.3 million at Finish Line and £31.5 million at Sport Zone. We maintain a robust approach to stock management with continuous intense monitoring of very detailed metrics.
Sign In
Follow the stocks
