GMD.L Regulatory News (GMD)

13 October 2016

GAME DIGITAL PLC

Final results for the 53 weeks ended 30 July 2016

GAME Digital plc ("GAME" or the "Group") today announces its final results for the 53 week period ended 30 July 2016 (the "period"). Throughout this announcement, unless otherwise stated, year on year changes will refer to the unaudited 52 week period to 23 July 2016, to provide more meaningful comparison with the prior year.

Financial and Operational Headlines

Summary of Group Strategy Update

During the year we reviewed our strategy and prioritised the following key initiatives across our business:

Current Trading and FY16/17 Outlook

Trading for the first 10 weeks of the year has been in line with Group plans. Looking forward, we remain encouraged by the line-up of new games as well as exciting console and VR launches scheduled for release over our peak period and the next 12 months. These developments will provide impetus to our markets and fresh opportunities to engage with both existing and new customers.

Nevertheless, the Group needs to balance these positive future market events with the prevailing trading conditions. Accordingly, at this stage the Board retains a cautious outlook and reaffirms its previous guidance for the year. The Board expects Adjusted EBITDA for FY16/17 to be broadly level to the current year (on a 52 week basis), before the financial impact of its planned new live gaming activities and the impact of the property sale and leaseback announced on 28 September 2016. Based on the roll-out of the new stand-alone gaming venues and in-store gaming arenas currently planned, the Group expects to incur a small loss across these activities in the first year. Dependent on the success of these initial trials, the Group may decide to accelerate the roll-out and increase investment to support the development of this opportunity.

Martyn Gibbs, Chief Executive Officer, said:

"Market dynamics in the UK have undoubtedly been tough in the past year. The management team responded quickly to these new market conditions and have made significant progress with its action plan since January. This has included improving supplier arrangements and terms, implementing efficiency and cost saving initiatives across the business; completing an organisation redesign and other process improvements. This programme of activity is ongoing and has started to help to improve our financial performance.

"The Group continues to maintain strong customer engagement across the UK and Spain and has made further progress in driving its retail diversification plans, including strong performances in digital content, higher margin accessories, and preowned phones and tablets. In addition, we have achieved significant progress across our strategic growth initiatives, including esports, events, live gaming activities and digital services.

"We recognise that we need to continue to reposition and transform the business. We have a clear vision to build a company that combines multichannel retail, live gaming and digital services to deliver a highly compelling and unique combination of products and services for gamers. This planning is being implemented quickly across the business with further expansion and development of new and growing activities as well as trialling new concepts such as in-store gaming arenas.

"Looking forward, we are encouraged by the strong line-up of highly anticipated new consoles, virtual reality headsets and games scheduled for launch over the next 12 months that will drive new growth and impetus to the market and our business together with the wider growth opportunities for the Group.

"I am confident that by organising ourselves effectively, delivering for our customers and building ever stronger and more collaborative partnerships with our key suppliers, we are positioning the business to deliver on our strategy and transition to sustainable earnings growth."

Results presentation

Management will be hosting a presentation for analysts and investors at 10.30 a.m. today at Citigate Dewe Rogerson, 3 London Wall Buildings, London Wall, EC2M 5SY. A live audio webcast of the presentation will be available via the Company's website at www.gamedigitalplc.com/investor-relations. A recording of the presentation will be made available on www.gamedigitalplc.com later today.

Enquiries

Notes:

Forward Looking Statements

This announcement contains certain forward-looking statements which have been made by the Directors in good faith using information available up until the date they approved the announcement. Forward-looking statements should be regarded with caution as by their nature such statements involve risk and uncertainties relating to events and circumstances that may occur in the future. Actual results may differ from those expressed in such statements, depending on the outcome of these uncertain future events.

Notification of Home Member State

Following changes made to the Disclosure Rules and Transparency Rules ("DTR") as a result of the Transparency Directive Amending Directive (2013/50/EU), the Company is required to disclose its Home State. Accordingly, pursuant to DTR 6.4.2, the Company announces that its Home State is the United Kingdom.

Notes to editors

GAME Digital plc is a leading gaming company, providing an authoritative range of gaming and gaming lifestyle products and services to customers. GAME's UK and Spanish retail businesses are the market leaders in those geographical areas, operating a total of 580 stores, a fully integrated omni-channel offer, and reaching more than 18 million consumers across its reward programmes. Through its esports and events activities the Group is delivering unparalleled consumer gaming experiences directly, and on behalf of third parties, including its flagship event, Insomnia, the UK's largest gaming festival. Across its digital businesses the Group is pioneering the use of new technologies to reach gamers and business partners outside its main markets. This is effected through Ads Reality Limited, the Group's visual recognition and augmented reality business and Multiplay, its specialist game server hosting business. For more information please visit www.gamedigitalplc.com, www.multiplay.com or www.adsreality.com.

You can view or download copies of this announcement and the latest Half Year and Annual Report & Accounts from the Group's corporate website at www.gamedigitalplc.com or request free printed copies by corporate@game.co.uk.

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").

SUMMARY OF FINANCIAL RESULTS

CHIEF EXECUTIVE OFFICER'S REPORT

Introduction

Our industry is changing rapidly, driven by the continued evolution of customer and gaming behaviours. Consumers have never had more choice in the way they are able to access and engage in gaming activities and this is reflected in the development and diversity within our markets. The global video games industry is set to surpass US$100 billion this year, with growth driven by the continued rise of digital content, whilst sales of physical software are expected to decline. At the same time, the number of people engaged in esports is now estimated to total over 250 million people globally, with that figure set to grow by another 100 million over the next three years.

As evidenced by the tough UK market environment, these changes continue to provide challenges to our business, but they also provide significant opportunities, and as our markets continue to develop, so is our business. We are on a journey to build a company which, through a unique combination of multichannel retail, live gaming and digital services, delivers a highly compelling proposition - providing gamers the opportunity to discover, buy, socialise, watch, compete and play in both physical locations and virtually. Today, no other business does this for the gamer. We plan to be the first.

At the same time we are focused on leveraging our core capabilities to drive the development of new business opportunities both within, and outside, of retail. Through this we aim to broaden and deepen our customer and business relationships, generate incremental revenue streams and effect the transition of the Group to consistent, sustainable earnings growth.

We are positioning our business in this changing world to ensure that what we do is relevant for our customers and our suppliers. We, like many other companies, have to constantly adapt and change in order to grow. Our strategy and business plans are designed to achieve this.

I would like to thank our teams and our business partners for all of their contribution in this past year, as we continue to work to improve and transform our business.

Summary of Group Results

The last 12 months have seen continued developments within our markets, with a challenging UK trading environment set against good growth in Spain. These dynamics resulted in the Group delivering revenues of £813.1 million (2015: £866.6 million), a decline of 6.2%. The Group's Gross Transaction Value (GTV), a better measure of underlying retail activity as it includes the gross value of digital receipts, was £912.6 million (2015: £962.4 million), down 5.2%, predominantly driven by the decline in lower margin console hardware sales. GTV excluding Hardware grew by £6.1m or 0.9%, with the robust growth in Accessories & Other products and services more than offsetting the decline in Content.

Group gross margins (as a percentage of revenue) increased by 80 basis points to 25.5%, resulting in a 3.1% decline in gross profit to £207.1 million (2015: £213.7 million). Gross margins benefited from the shift in sales mix to higher margin categories including preowned gaming and technology products, gaming accessories and licensed merchandise. Total underlying operating costs for the Group (excluding exceptional and adjusting items and excluding depreciation and amortisation) rose by £13.1 million or 7.9% to £179.9 million, reflecting a combination of the net investment after cost savings of £9.7 million across our core UK and Spanish retail operations, together with an increase in costs from newly acquired businesses of £3.4 million.

The Group delivered an Adjusted EBITDA of £27.2 million (2015: £46.9 million), reflecting a 35% decline in core retail to £30.3 million and EBITDA loss of £3.1 million (2015 EBITDA profit: £0.1 million) within Events, Esports and Digital as we continue to scale up these business areas. Profit before tax, adjusting and exceptional items was £15.6 million (2015: £38.0 million), with earnings per share before non-recurring items being 8.5p (2015: 18.7p).

Cash generated from operating activities was £4.5 million (2015: £43.3 million) and our balance sheet remains strong with a cash balance (net of overdrafts) of £43.1 million (2015: £63.1 million) after investing £14.8 million in the business (including cash payments for acquisitions of £1.5 million). With new UK banking facilities of up to £75 million and new and enlarged facilities in Spain of €59.7 million we have the necessary resources and facilities in place to support the growth plans of the business.

The Board has approved a final dividend of 1.75 pence per share (2015: 7.35 pence). This will be paid on 10 February 2017 to shareholders on the register at the close of business on 30 December 2016, with the ex-dividend date of 29 December 2016.

Operational & Strategic Review

Note:

* Source: GfK Chart-Track; based on value of retail sales of console hardware, software, digital and accessories for 52 weeks ended 23 July 2016

** Converted into sterling equivalent

^ UK and Spanish markets combined

Figures in brackets denote FY2014/15 comparatives

Core Retail: UK

Trading conditions in the UK video games market have remained challenging throughout the year. The transition from older gaming formats to PlayStation 4 and Xbox One ("New Format") impacted profitability across the market and the effect of this transition was further compounded by both lower footfall over our key Christmas trading weeks and a quieter schedule of major new games releases in our second half. Overall, the UK retail market (Console Hardware, Software, Accessories and Digital) fell 12.7% in the year, with hardware sales falling 28.5% and boxed software sales down 9.0%.

Against this backdrop our UK retail business delivered GTV of £648.7 million, an 11.0% decline on the prior year. UK retail gross profit was £149.5 million (2015: £160.9 million). Console sales of £144.8 million were down 30.5%, but given the low margin of this category the impact on gross profit was just £1 million. Overall, our share of the mint console market was broadly stable at 31.8% (2015: 33.1%).

Although sales declined in the year, our UK business has continued to deliver positive growth in several areas, including New Format software (up 11% across mint and preowned combined); Digital GTV up 5%; GAMEtronics (preowned phones and tablets), up 61%; PC accessories up over 300%; and licensed merchandise up 70%. Whilst we are encouraged by the strong growth in our newer product categories, this was not sufficient to offset the margin decline from sales of Xbox 360, PlayStation 3 and other older format software during the year.

The increased contribution from higher margin categories and digital content sales resulted in a 120 basis point improvement in our UK Gross Margin rate in the period, to 25.9% (calculated as a % of revenues). Following the December trading statement, a comprehensive process of supplier engagement was planned and completed helping to provide additional support to improve our margins in the year under review and the year ahead.

Our underlying operating costs (before depreciation and amortisation and adjusting and exceptional items) increased by £5.8 million or 4.7%, reflecting higher distribution costs together with the investments we are making to support multichannel and customer service improvements and the continued development of our growth categories. Following the December trading statement, store management and structures in central functions were redesigned to ensure future growth opportunities and savings could be realised. Similarly, numerous other cost saving opportunities were pursued including store estate savings. Rent costs were reduced by £0.6 million in the period, reflecting the part year savings for renegotiations completed in the period. In total, savings of approximately £4 million were achieved during the period, partially mitigating the overall increase. However, lower sales combined with higher overall costs resulted in a decline in the Adjusted EBITDA to £19.3 million (2015: £36.5 million) in the period.

We ended the year with 313 stores (2015: 319) in the UK, having opened three stores, closed nine stores and relocated eight stores in the year. We had one loss making store in the UK in the year (2015: nil) (calculated as annual store EBITDA contribution before the allocation of central overheads, excluding new stores).

Core Retail: Spain

Our Spanish business delivered a strong performance in the year, with total GTV up 14.1% on a local currency basis, outperforming the wider Spanish market which grew 9.9%.

We grew both sales and market share in all categories (Hardware, Software, Accessories and Digital), with our share of the Spanish retail market rising by 1.7 percentage points to 39.9%.

In local currency terms, we delivered Content GTV growth of 12.7%. Within this, New Format software sales were up 65% and digital sales were up 63%. Preowned sales grew 10.0%, also driven by New Format software sales, which rose 76%, as well as good growth in preowned technology sales, which grew 47.5%. Sales of Accessories & Other rose 20.4% and Hardware sales rose 17.4%.

In total, after the effects of a modestly weaker Euro, which depreciated approximately 1.5% against Sterling, our Spanish GTV rose 12.5% and gross profit increased £4.6 million to £56.3 million, up 8.9%, due to mix effect resulting from the strong growth in lower margin hardware sales.

Higher variable costs, including the full year impact of the 44 stores transferred from GameStop in November 2014; higher distribution and central costs following the planned expansion into new activities including a repair centre operation, resulted in a £3.9 million or 9.4% increase in underlying operating costs (before depreciation, amortisation and adjusting and exceptional items) and an Adjusted EBITDA of £11.0 million (2015: £10.3 million).

We opened one new store and closed nine stores in Spain in the year and ended the period with 267 stores (2015: 275) of which three were loss making (2015: 3).

Events, Esports and Digital

Our Events, Esports and Digital businesses include Multiplay, acquired in March 2015, SocialNAT, acquired in February 2016 and Ads Reality, acquired in May 2016.

In aggregate these businesses delivered sales of £6.1 million in the year (2015: £4.2 million) and Gross Profit of £1.3 million (2015: £1.1 million), with the vast majority of these sales attributable to Multiplay.

We have continued to invest in Multiplay during the year to support our plans to grow the business rapidly. New directors of both the Events and Digital divisions were hired, together with a further 32 new colleagues recruited across all teams, taking the total number of employees to 99. Other cost investment was made ahead of significant growth activities. This included the largest ever Insomnia event, held after the end of the financial period in August 2016, and bringing into service a significant upgrade to Multiplay's server management platform to start to host major AAA titles from autumn 2016.

As a result, underlying operating costs (before depreciation, amortisation and adjusting and exceptional items) for our Esports, Events and Digital businesses increased to £4.4 million (2015: £1.0 million), resulting in an Adjusted EBITDA loss of £3.1 million (2015: Adjusted EBITDA £0.1 million).

Group Strategy Update

During the year we have reviewed our strategy, further improved our planning and prioritised key initiatives across the business to ensure we continue to meet and support the needs of our customers, whilst positioning our business to both respond to the challenges and realise opportunities arising from industry developments.

An update on the key actions and initiatives undertaken during the year, and our priorities for the year ahead, aligned to our four strategic pillars are as follows:

1. Continue to improve our core multichannel retail businesses, based around the needs and behaviours of customers, in order to maximise market potential and profitability

Differentiated customer offer

The core retail markets in which we operate are highly competitive, and so we continue to focus our efforts on improving all elements of our differentiated customer proposition. Key elements include the continued development of our exclusive proposition, maintaining an authoritative range of physical and digital products across mint and preowned, promoting and enhancing our trade-in service and building on our popular loyalty programmes. All of this is built upon our local store base, passionate store teams and omni-channel capabilities.

We continued to work closely with our supplier partners during the year which included securing exclusives on over 30 of the year's top selling titles in both territories. We continue to focus on extending this proposition to cover more hardware, accessories and licensed products, with over 100 exclusive products ranged during the year.

Our ongoing focus on digital sales helped to extend our market leadership in this category, with our share of the console digital retail market rising to over 60% in the UK and 64% in Spain. In the UK, almost two thirds of our Xbox One and PlayStation 4 customers have now purchased digital content from us. Promoting and retailing a growing range of digital products remains a key priority for the business.

Our trade-in and preowned capabilities continue to support both our specialist and value proposition, with over half our customer base either using the trade-in service or purchasing a preowned product in the year. Our plans for next year include the introduction of an online trade-in service and a focus on promotional activity to drive increased trade-ins ahead of major new hardware and software releases.

Our loyalty reward programmes in the UK and Spain are not only a core pillar of our differentiated proposition, they also provide the Group with valuable insight which helps us to continuously refine and improve our offer. Total reward scheme members numbered over 18 million at year-end, with 4.5 million active members in the last 12 months (2015: 4.5 million), and almost 1.2 million new customers added across the UK and Spain over the past 12 months. In the UK approximately 61% of transactions by value were linked to a reward account in the last 12 months whilst in Spain the penetration was 79%. A key focus of the Group is increasing reward sign-ups and usage. Next year we plan to launch an enhanced reward programme for our most valuable customers to drive increased loyalty and sales.

New category and service development

We continue to develop and promote new gaming and other complementary product ranges in order to further increase our relevance with our core customers and attract new ones, both growing and diversifying our sources of revenue. Our focus includes preowned mobile phones and tablets, PC gaming hardware and accessories, digital content and collectables, clothing and other licensed products. Initiatives to grow these categories includes the increased allocation of in-store space, significantly expanding our in-store and online ranges, improved visual merchandising and increased marketing support. In addition to these areas, we are also focused on growing our online Marketplace in the UK, which lists over 100,000 products across a broad range of categories.

In aggregate, GTV from these areas was up 30% across the UK and Spain in the year, and contributed over 20% of the Group's GTV (2015: 15%).

In the year ahead there will be several major virtual reality launches. Our preparations mean that our businesses will be well positioned for the launch of each of these exciting new products which will provide further opportunities to engage with both existing and new customers.

Finally, alongside these range developments, the Group is also broadening the range of retail services it offers to consumers. These services include online trade-in, consumer finance, the UK gift card programme, product repairs and product protection plans. The Group is also planning to launch a subscription service in 2017.

Multichannel improvements

Our customers include digitally enabled millennials who increasingly want to browse and shop across a range of channels - in-store and on their mobiles, at home and on the go. Helping them to discover content and shop with us whenever and however they want is a key driver of engagement and loyalty, with those customers shopping in more than one channel spending over twice as much as single channel customers.

Accordingly, across our multichannel platforms in the UK and Spain our efforts are focused on delivering a seamless, connected and engaging experience whenever our customers need us, in order to drive both in-store and online sales.

eCommerce & mCommerce

Our eCommerce and mCommerce sites in the UK underwent significant upgrades during the year and these improvements helped to drive an 80 basis point increase in our online share of the video games market (Source: GfK Chart-Track).

Mobile in particular is seeing strong growth, with traffic increasing over 20% in the UK and 30% in Spain. Mobile traffic now accounts for 45% of all UK online traffic (2015: 35%) and 26% of UK online sales (2015: 19%).

We launched our UK Click & Collect proposition during the year and combined with our 'Endless Range' in store proposition, means customers can now order online or in-store, for delivery to home, or to store. These services are becoming increasingly important delivery options for our customers, particularly around major sales events.

Looking forward we plan to prioritise improvements in our online content and customer journeys to support increased traffic and conversion rates.

App & Social Media

Our mobile apps and social channels are becoming increasingly popular channels for customer communication and engagement.

As with our other digital platforms, we are focused on continuing to increase the relevance and richness of the content delivered through these channels to increase engagement across each stage of the customer journey.

We are currently working on a major upgrade to the UK app, which will provide users with enriched content, an enhanced consumer experience and superior functionality. This forms part of the Group's rolling programme of app improvements.

In addition to the Group's national social media accounts, the Group's policy is for each store to promote its own social channels. This approach has proved successful in ensuring the relevance of content and communication is maximised, helping to foster better customer relationships in each community. Overall, the Group's social audience across its national and store accounts now totals over 1.6 million in the UK and almost 400,000 in Spain.

Customer Service

We remain committed to enhancing customer service levels across every channel in which we operate. In March 2016 we took the decision to outsource our contact centre to a third party provider in order to further improve service levels in this channel.

Store estate optimisation

Our stores remain a key strategic asset of the Group, acting as the central hub of customer engagement and a vital part of our omni-channel strategy. They also represent a significant cost to the business requiring constant management. During the year the Group renewed 28 UK store leases, reducing rents on average across those renewals by approximately a quarter. The Group has a highly flexible lease profile, with 120 lease events due in the UK in the next 12 months and an overall average break clause of 1.5 years in the UK and 1.0 year in Spain.

Furthermore, during the year we have trialled both larger and smaller store formats in the UK, having opened a 672 square foot store in Aberystwyth and a 4,273 square foot store in The Metro Centre, Gateshead. The information gained from these trials is being used to identify further rationalisation and growth opportunities across the estate.

Within our stores, plans for next year include further refurbishment and refreshment of the estate where we believe it will generate a good return on investment. Our stores are relatively small, with an average store footprint of 1,254 square foot in the UK and just 804 square foot in Spain. Space is therefore at a premium, and as a result we closely monitor category contribution, reallocate space and refresh merchandising to ensure sales densities are optimised.

2. Expand the Group's live and online gaming services for gamers and publishers in order to build customer and gamer engagement and generate incremental revenues

As discussed previously, our industry is developing rapidly, with the huge growth in esports, live streaming, social gaming and social media changing the way games are played and gaming communities interact. These changes are opening up significant opportunities for the Group to develop new initiatives, providing the means for people to come together to watch, socialise, play and compete, both online and in physical venues.

We are planning significant investment over the next three years to drive increased engagement with our brand and generate material incremental revenues through the introduction and expansion of new consumer gaming services. These services are currently focused on national and local gaming activities and events, local competitive gaming and esports tournaments. Direct revenue streams include ticket sales, in store gaming services such as 'pay-to-play', advertising and sponsorship deals, and we expect to derive further sales benefits from a growing audience of engaged and loyal gamers.

Major Gaming Events

The most recent Insomnia gaming festival, 'i58', held at the National Exhibition Centre (NEC) in Birmingham in August 2016 was the largest event ever held, with footfall reaching approximately 67,000. This followed record attendances for both the winter and Easter shows. Successful Insomnia events were also held in Scotland and Ireland during the year. In total, attendance for Insomnia shows was up over 50% year-on-year. New partnerships to extend the Insomnia festival activities beyond gaming included the Drone Show and Robot Wars at i58, and a further partnership has been agreed with Universal Music for next year.

Future plans include a focus on the continued expansion of the number and size of Insomnia Gaming Festivals hosted in the UK and internationally. In addition, the Group is focused on growing the number of white label events it organises on behalf of the publishers, building on the Group's track record of successfully producing the world's largest convention for a single video game (MINECON 2015).

Esports & Local Competitive Gaming

We have recently initiated a number of trials in the UK and have recently launched our in-store 'gaming arena' concept in two UK stores. The trial of at least another ten additional arenas is planned for the first half of our new financial year, including three stand-alone gaming venues. Though these initiatives remain at an early stage, results have been encouraging and feedback from customers, store teams, supplier partners and gaming communities has been positive. Dependent on the performance of these initial trials, the Group may look to accelerate the roll-out of this initiative in 2017.

The Group ran its first professional-tier esports event at Insomnia 56 in December 2015. The tournament was broadcast in 26 territories and surpassed its targeted global online viewing figures. The Group hosted further similar tournaments at Insomnia 57 and Insomnia 58 and has begun to sign new sponsorship deals as its reputation and audience grows.

In February, the Group announced the acquisition of SocialNAT in Spain to support its esports plans in the territory. The business has since been integrated into GAME Spain's operations with the establishment of GAME Esports. Developments in the year included the creation of a new broadcast studio to support high quality content creation and successful partnerships with Madrid Games Week and other similar festivals in Barcelona and Bilbao, where GAME acted as the official esports partner.

Future priorities include the continued development of the Group's professional and amateur esports tournaments and locally based gaming activities. In the UK and Spain, we are also developing an online tournament platform and associated online systems, and creating content and programming from our newly established broadcast studios. Although this activity remains in the early stages of development, we believe both the direct sales opportunities and indirect benefits to the core business are significant. 

3. Develop and grow the Group's digital enterprise services

Managed Server Hosting

A key strategic priority for the Group is the further development and growth of Multiplay's digital server hosting business, providing scalable and cost effective consumer and enterprise server hosting solutions for online gaming.

The Group had significant contract success during the year, signing the global hosting for Titanfall 2, a forthcoming AAA title. Publisher interest in the technology remains high, with a number of contract discussions underway. The Group is investing appropriately in the required resource and infrastructure to support the significant future growth anticipated.

Visual Recognition, Augmented Reality & Digital Marketing

In May 2016, the Group acquired Ads Reality, a digital marketing and technology company focused on visual recognition and augmented reality. The acquisition was the culmination of over two years' collaboration between the two companies after the company developed the Group's augmented reality (AR) functionality within its consumer App ('Scan It'). The Group is focused on the roll-out of further key developments for the technology for use both within Scan-It, and for licensing to a variety of businesses for their own applications. Following the recent success of Pokémon Go! the Group is also developing AR services to support third party gaming applications.

4. Optimise organisational efficiency while investing for the future

Despite the significant investment in the areas of the business with high growth potential, we maintain our focus of operating the business in a disciplined manner with attention to improve efficiency and appropriate cost control measures. We actively monitor and take actions to improve customer service and introduce operational efficiency initiatives as well as measures to better manage costs across all businesses within the Group.

Within the retail teams we carefully manage our store employee costs, adjusting resourcing levels as required to maintain service levels during periods of higher or lower demand. We also continue to focus on reducing costs across all areas of the business where possible, including rent savings at lease renewal, business services contracts, productivity improvements in our distribution centres and other business process improvement.

In particular, considerable attention is being given to the rationalisation of our store footprint and reducing property costs where possible. Many recent lease renewals have been renegotiated on improved terms and where proposed new lease terms have not been acceptable, the Group has relocated to lower cost premises. We are also exploring opportunities to open new concession locations where lower cost of occupation and more flexible terms can be agreed.

Martyn Gibbs

Group Chief Executive Officer

13 October 2016

CHIEF FINANCIAL OFFICER'S REVIEW

The FY2015/16 accounting period represents the 53 week period from 26 July 2015 to 30 July 2016. The comparative FY2014/15 period represents the 52 week period from 27 July 2014 to 25 July 2015. Throughout the Financial Review, unless otherwise stated, FY2015/16 commentary will refer to the unaudited 52 week period to 23 July 2016, to better reflect the underlying performance of the Group.

Group Results

Group revenue declined by 6.2% in the period to £813.1 million (2015: £866.6 million) with strong sales growth in Spain more than offset by a challenging period for the UK retail market. The Group's Gross Transaction Value (GTV), a better measure of underlying retail activity as it includes the gross value of digital receipts, fell by £49.8m or 5.2% to £912.6 million (2015: £962.4 million), predominantly driven by the decline in lower margin console hardware sales, which fell by £55.9 million. GTV excluding Hardware grew by £6.1 million or 0.9%, with the robust growth in Accessories & Other more than offsetting the decline in Content.

Group gross margins (as a percentage of revenue) increased by 80 basis points to 25.5%, resulting in a 3.1% decline in gross profit to £207.1 million (2015: £213.7 million). Gross margins benefited from the shift in sales mix to higher margin categories including preowned gaming and technology products, gaming accessories and licensed merchandise.

The increase in underlying operating costs (excluding exceptional and adjusting items and excluding depreciation and amortisation) was a result of cost increases in the core UK and Spanish retail businesses of £9.7 million and higher costs from newly acquired businesses up £3.4 million. Core UK Retail operating costs increased by 4.7% in the period reflecting a balance of investment to drive future growth and the delivery of cost saving initiatives across the retail estate and through a central organisation re-design. Core Spanish Retail operating costs represent an increase of 9.4% reflecting cost increases linked to greater sales activity and investment in initiatives to drive future ongoing sales growth. Acquired businesses, comprising the first full year of Multiplay (acquired in March 2015), SocialNat (acquired in February 2016) and Ads Reality (acquired in May 2016) added a further £3.4 million, in aggregate, of underlying operating costs in the year.

Group operating profit was £5.2 million (2015: £26.2 million), explained by lower gross profit generation, higher operating expenses, including a £2.6 million increase in depreciation and amortisation, and exceptional income of £0.9 million in the year (2015: £nil). The Group delivered an Adjusted EBITDA of £27.2 million (2015: £46.9 million), reflecting a 35.3% decline in core retail to £30.3 million and the EBITDA loss of £3.1 million (2015 EBITDA profit: £0.1 million) within Events, Esports & Digital incurred as the new business activities were being expanded.

Adjusted profit before tax in the year was £15.6 million (2015: £38.0 million). Tax on adjusted earnings was £1.2 million (2015: £6.5 million) with the decrease in effective tax rate to 8% (2015: 17%) explained by the impact of one-off tax adjustments relating to prior years and a tax adjustment relating to the sale of the freehold property in the new financial year. Adjusted basic earnings per share was 8.5 pence (2015: 18.7 pence).

On a statutory basis profit before tax fell to £4.1 million (2015: £25.8 million) and basic earnings per share was 2.9 pence (2015: 12.7 pence).

Segmental results

Core Retail: UK

1. Source: GfK Chart-Track. Market data comprises retail sales of mint hardware, boxed physical software, console digital content and gaming accessories for the 52 week period.

The UK retail market declined 12.7% in the period. Against this backdrop, GAME's UK Retail GTV (excluding Multiplay and Ads Reality) declined by 11.0% and revenue by 11.2%.

UK Retail GTV excluding Hardware fell 3.2% or £16.9 million to £503.9 million (2015: £520.8 million). A strong performance in the Accessories & Other category, which grew 17.1% or £12.3 million to £84.4 million, was more than offset by an 8.0% or £24.7 million fall in Content sales, to £284.8 million. The fall in Content sales was explained by a 64.4% year-on-year decline in Old Format (PlayStation 3 and Xbox 360) software. New Format (PlayStation 4 and Xbox One) software sales rose 8.5% in the year to £166.5 million, whilst sales of digital content also increased, rising 5.4% to £83.4 million.

Preowned category GTV of £134.7 million was down 3.2% or £4.5 million. Preowned technology sales performed strongly, up 61.4% to £38.1 million and New Format sales were also up 22.9% to £42.4 million. A stronger preowned performance was held back by the 46.8% decline in Old Format sales.

In line with the UK market, Hardware GTV was down 30.5% over the year, with sales impacted by the reduction in average selling prices of the latest generation of consoles versus a year ago and lower volumes.

The increased sales mix of higher margin categories resulted in a 1.2 percentage point improvement in the UK Gross Margin rate, to 25.9%, giving rise to a cash margin of £149.5 million (2015: £160.9 million). UK operating costs excluding depreciation, amortisation and adjusting and exceptional items rose 4.7% to £130.2 million (20.0% of GTV) (2015: £124.4 million, 17.1% of GTV) explained by increased delivery costs as a result of higher online sales and investment to support the Group's growth initiatives. This increase in costs, together with the decline in sales resulted in a 47.1% decline in Adjusted EBITDA to £19.3 million (2015: £36.5 million).

The number of stores in the UK at 30 July 2016 was 313 (2015: 319).

Core Retail: Spain

Note:

1. Source: GfK Chart-Track. Market comprises retail sales of mint hardware, boxed content, console digital content and gaming accessories for the 52 week period.

^ LC local currency basis. Calculated based on original Euro amounts.

GAME's Spanish retail business (excluding SocialNat) delivered GTV growth of 14.1% over the period on a local currency basis, outperforming the market which grew by 9.9%. On a reported basis, after the effects of a weaker Euro during the year, Spanish GTV rose 12.5%. On a reported basis, Spanish revenue grew 8.7% to £229.1 million.

Gross Margin rates in the territory remained broadly stable at 24.6% (2015: 24.5%). Spanish operating costs excluding depreciation, amortisation and adjusting and exceptional items increased to £45.3 million (2015: £41.4 million), representing 17.6% of GTV (2015: 18.1%). The cost increases are explained by higher variable retail operating costs (including store payroll costs) which incorporated the full year impact of the 44 stores transferred from GameStop in November 2014; higher distribution and central costs following the planned expansion into new activities including a repair centre operation.

The Adjusted EBITDA for the period was £11.0 million (2015: £10.3 million). In local currency terms Adjusted EBITDA increased 15.8% to €15.1 million (2015: €13.1 million).

The Group ended the year with 267 stores in Spain (2015: 275).

Events, Esports and Digital

Revenue from acquired businesses, comprising Multiplay and Ads Reality in the UK and SocialNAT in Spain, grew 45.2% to £6.1 million (2015: £4.2 million).

Core underlying operating costs attributable to acquired businesses increased £3.4 million to £4.4 million in the year (2015: £1.0 million), predominantly as a result of the cost investment in Multiplay's gaming events and digital teams. This cost investment was made ahead of significant growth activities including the largest ever Insomnia event held after the end of the financial period in August 2016, and the bringing into service of new digital solutions including a significant upgrade to the Group's server management platform to enable it to run the global hosting requirements for major AAA titles such as Titanfall 2 (with planned launch in October 2016). The Adjusted EBITDA loss for the year was £3.1 million (2015: EBITDA profit £0.1m).

Gross Transaction Value (GTV) and Revenue

Group Gross Transaction Value (GTV) fell 5.2% to £912.6 million (2015: £962.4 million) mainly explained by the decline in low margin hardware sales, which fell by £55.9 million. GTV excluding Hardware grew by £6.1m or 0.9%, with the robust growth in Accessories & Other more than offsetting the decline in Content.

Content GTV, which includes both boxed and digital game content, fell by 3.3% in the year. GTV of physical content for Xbox One and PlayStation 4 formats delivered good growth, increasing by 17.8%. Within Content GTV, total digital sales continued to grow, rising 15.5% to £110.2 million. Underlying this improvement, console digital sales increased by 9.7% whilst non-console digital sales rose 33.8%. After adjusting for the impact of one-off digital bundling activity in 2015, amounting to approximately £5 million, which was not repeated in 2016, underlying digital sales growth was approximately 22%. However, this new format and digital growth was more than offset by the decline in physical sales for older formats (in particular PlayStation 3, Xbox 360 and 3DS) which fell 46.3%.

GTV from preowned products decreased by 0.1% to £185.8 million. GTV growth was driven by an increase in sales of preowned PlayStation 4 and Xbox One software products, up 31.1%, as well as further strong growth in the value of preowned GAMEtronics sales (mobile phones and tablets), which grew 59.9% to £43.0 million. Stronger overall GTV growth was held back by the 32.7% decline in Old Format sales.

GTV from the Accessories & Other category increased by £19.8 million or 19.1% to £123.5 million. The increase in GTV was explained both by the first full year sales contribution from Multiplay following the company's acquisition in March 2015, together with the strong growth from the accessories and licensed product sub-categories.

Average selling prices of Hardware were lower than in the same period last year and when combined with lower volumes resulted in a decline in Hardware GTV of 21.6%.

On a statutory basis, Group revenue declined 6.2% to £813.1 million (2015: £866.6 million).

Gross profit

Gross profit fell by 3.1% to £207.1 million (2015: £213.7 million). Foreign exchange rates modestly impacted the reported gross profit during the period and this accounted for a year-on-year reduction in gross profit of approximately £0.7 million.

Gross profit by category is analysed in the table below.

Note: Gross profit calculated as a % of revenue.

The Content margin rate remained broadly stable compared with last year, at 30.1% (2015: 30.5%).

Hardware margin rates declined by 0.7 percentage points to 3.4%, reflecting lower average selling prices and continued competition across the marketplace.

Preowned margin rates fell 2.4 percentage points mainly as a result of the increasing mix of technology product sales, which achieve a lower margin than core preowned sales. Underlying margins on both New and Old Format preowned software improved during the year in both the UK and Spain, although the mix of higher margin Old Format had an adverse effect.

The gross margin of the Accessories & Other category rose 1.4 percentage points to 34.0%.

Operating expenses

Continuing operating expenses before exceptional and adjusting items, comprising selling and distribution and administrative expenses, increased by £17.0 million or 9.7% to £192.3 million. Continuing operating costs, before exceptional and adjusting items and excluding depreciation and amortisation increased by £15.0 million or 9.0% to £181.8 million. These costs included extra amounts incurred during the 53rd week as well as higher costs from the acquired businesses. The underlying costs for the comparable 52 week period for the Group's businesses are summarised in the table below:

Core UK retail costs for the comparable 52 week period reflect an increase of 4.7% with higher distribution costs related to online growth, modestly higher store payroll costs and higher central costs given the investment made in developing the newer growth categories and higher IT and on line costs.

Core Spanish retail costs for the comparable 52 week period reflect an increase of 9.4% with higher distribution costs and store variable costs mainly linked to greater sales activity and further investment in central costs to similarly drive the new growth initiatives including costs associated with the repair centre and the greater focus on developing the PC category.

Across core retail, cost increases were experienced within distribution, selling and administrative costs as summarised below.

Operating expenses included costs of £4.4 million for acquired businesses (2015: £1.0 million), comprising the first full year's contribution from Multiplay (acquired in March 2015), together with SocialNat (acquired in February 2016) and Ads Reality (acquired in May 2016).

Exceptional and adjusting items

The exceptional items before tax as detailed in note 4, are as follows:

Gift card expiries relating to prior periods and other similar items relating to prior periods have been presented as exceptional due to the size and nature of this amount. New information has been obtained relating to the level of unredeemed and expired gift card balances which had not been recognised in the statement of comprehensive income in previous periods and have been recorded as an exceptional item in the current year. Other prior period items reflect additional costs arising from the recalculation of amounts presented in previous periods for the Virtual Loyalty Share Plan, reductions in provisions for liabilities recognised at the time of the acquisition of the former GAME Group, together with IPO-related items and additional provisions in relation to other prior year items.

Redundancy and reorganisation costs are associated with the implementation of the organisational redesign for the UK businesses to ensure they are structured and resourced to drive future growth opportunities and to realise saving opportunities. The 2015/16 redesign was part of an on-going process of repositioning the business for growth and involved significant reorganisation of functions and roles across the UK activities.

No exceptional items were incurred in the previous period.

The adjusting items before tax as detailed in note 4, are as follows:

Amortisation charges increased by £0.6 million in the period as a result of the full year impact of the Multiplay acquisition and the acquisition of Ads Reality in May. The post-acquisition remuneration of £2.7 million relates to a full year's charge of the cash and shares payable to certain former Multiplay shareholders of £2.5 million (2015: £1.0 million) and additional amounts of £0.2 million for the Ads Reality acquisition. Other adjusting costs in the year of £0.5 million and £0.1 million comprise the legal and professional fees incurred in relation to the acquisition of Ads Reality and an impairment to the original 3% investment held in the company. The decrease in IPO-related share-based payment compensation to £nil (2015: £2.2 million) reflects the current probability of certain awards vesting and the adjustments to cumulative charges as a result of this reassessment. Costs of £0.5 million in the prior year related to legal and professional fees for the transfer of Spanish stores from GameStop and the acquisition of Multiplay.

Adjusted EBITDA

Note: Adjusted EBITDA margin calculated as a % of revenue

Group Adjusted EBITDA (EBITDA less exceptional and adjusting items) of £27.2 million (2015: £46.9 million) fell by a total of £19.7 million in the year. Core Retail performance reflects a £17.2 million decline related to the UK retail operation whilst the Spanish retail operations delivered an Adjusted EBITDA of £11.0 million, up £0.7 million. The Adjusted EBITDA loss from acquired businesses totalled £3.1 million (2015: EBITDA profit £0.1 million) reflects the scaling of operations ahead of the delivery of the planned growth initiatives.

Financing costs

Net financing costs totalled £1.1 million (2015: £0.4 million). The increase in the charge for the year has been impacted by the new facilities put in place during the year and the arrangement fees associated with these new borrowing arrangements, as detailed in the Cash Resources and Financing section below.

Net financing costs also include higher charges reflecting more frequent drawings in UK and Spain over the period.

Net financing costs in the previous year related to the HSBC ABL facility, the RCF facility and the overdraft in Spain, net of interest received on bank deposits.

Profit before tax

Profit before tax for the 53 weeks ended 30 July 2016 amounted to £4.9 million (2015: £25.8 million). Profit before tax for Core Retail was £12.4 million (2015: £27.5 million) and Events, Esports and Digital incurred a loss before tax of £7.5 million (2015: £1.7 million).

Taxation 

The effective tax rate (defined as the accounting tax charge divided by the accounting profits before tax) was -14% (2015: 17%). The rate has been impacted by a number of one-off credit adjustments to the tax charge including amounts relating to previous periods, previously unrecognised losses and changes to the deferred tax provision arising from the sale of the property in the new financial year. In the prior year the Group had utilised previously unrecognised deferred tax assets in the UK, resulting in the low effective rate for the year.

Earnings per share 

The earnings used for the calculation of Adjusted basic EPS is as follows:

* Basic shares outstanding excludes shares held in trust (EBT and SIP)

The Group delivered Adjusted basic earnings per share of 8.9p (2015: 18.7p). In order to give a better view of underlying earnings, adjustments to earnings per share have been made to remove exceptional and adjusting items.

On a statutory basis, after the impact of exceptional and adjusting items, basic earnings per share for the 53 weeks ended 30 July 2016 was 3.3p (2015: 12.7p).

Cash flow and net cash

Cash generated from operations

Cash generated from operations amounted to £10.1 million, £36.8 million lower than the previous year. This decrease has been impacted by the fall in EBITDA of £17.6 million and the adverse movement in working capital and other items of £19.2 million impacted in part by the timing of the year end in terms of certain payments including payroll. The working capital outflow is explained by the 53 week period and this outflow is expected to reverse during the next financial year. For instance, during the year under review and because of the 53rd week this meant that 13 payroll payments were captured in the period whereas in the period ending 29 July 2017 there will be 11 monthly payroll payments. After finance costs and corporation tax payments, cash generated from operating activities was £4.5 million (2015: £43.3 million).

Note: Working capital generation ratio calculated as working capital generated as a % of net cash from operating activities

Capital Expenditure

Group capital expenditure amounted to £13.3 million in 2016 (2015: £11.3 million), representing 48% of Adjusted EBITDA (2015: 24%) and 1.6% of revenue (2015: 1.3%).

Capital expenditure was incurred on investment in the UK and Spanish operations (expenditure on a small number of new stores and relocations and further upgrade and maintenance capital expenditure particularly focused on upgrading existing store environments and investment on core IT systems and in distribution and repair centres). In addition, capital expenditure was deployed on the Group's online and digital infrastructure, comprising further developments to the Group's e-commerce sites, the GAME App, GAME Wallet, Codebank (the Group's platform for digital code distribution), Clanforge (the Group's server hosting technology), and new servers for Clanforge.

Future capital expenditure is planned for further development of the Group's online, IT and digital infrastructure initiatives. Further investment in the existing physical estate is also planned, focused on the development of new, experiential gaming zones within, and outside, of the core store estate in the UK. Capital expenditure plans also include a small number of new stores and relocations plus further focus on new merchandise opportunities and initiatives to improve sales densities in stores in both UK and Spain. Furthermore, additional capital expenditure, particularly focused on core IT systems, is also planned.

Dividends

The Group is proposing a final dividend of 1.75 pence per share (£3.0 million). Together with the interim dividend of 1.67p per share (£2.8m) declared in March, ordinary dividends in respect of the financial year total 3.42 pence per share (£5.8 million). The final dividend will be proposed by the Directors at the 2016 AGM. The ex-dividend date will be 29 December 2016 and, if approved at the Company's forthcoming AGM, will be paid to shareholders on 10 February 2017 to those shareholders on the register at the close of business on 30 December 2016.

The Board remains committed to a dividend level which reflects the long term earnings and cash generation potential of the Group, after retaining sufficient capital to fund the required investment to support future business growth.

Acquisition of businesses

The Group acquired the trade and assets of SocialNAT (a small esports and events business) in February 2016 for a cash consideration of £0.5 million. The Group acquired the trade and assets of Ads Reality (a specialist visual recognition and augmented reality technology business) in May 2016 for an initial consideration comprising £1.0 million of cash and £1.0 million of shares in GAME Digital plc. Further payments of up to £18.0 million may be made based on the achievement of performance conditions over specified timeframes and the Group has the ability to settle these payments in cash or the issue of shares in GAME Digital plc.

Cash Resources and Financing

On 14th October 2015, the UK business terminated the existing £25 million asset-based facility with HSBC Invoice Finance (UK) Limited and arranged a short term secured revolving credit facility agreement with Barclays Bank PLC and HSBC Bank plc for an aggregate amount of £30 million.

Well ahead of the peak season and prior to the significant new console launches and the major launches of new virtual reality devices, the Group investigated securing significantly larger and more relevant facilities. On 20th April 2016 the Company and certain other UK subsidiaries entered into the Lajedosa Facility Agreement for an aggregate amount of up to £100 million under an asset-based facility. This facility provided by a related party was approved by shareholders on 19th May 2016 and became effective on 15th July 2016.

The Group continued to explore complementary or alternative similar financing arrangements from other third party providers which resulted in the Company and certain UK group companies entering into an asset-backed revolving loan facility agreement with PNC Business Credit and Wells Fargo Capital Finance (UK) Limited in an aggregate amount of up to £75 million on 15th July 2016. The cost to the Group of this facility is a commitment fee of 0.5% per annum on £50 million of the facility, interest on drawn funds of 2.5% per annum plus LIBOR and a fee of 0.25% per annum on £25 million should this seasonal top up facility be activated and drawn. When the facility arrangement was completed the £30 million RCF was cancelled. The PNC & Wells Fargo ABL will be a primary source of working capital funding for the Group's UK activities. Under the terms of the PNC & Wells Fargo Inter-Creditor Agreement the Company would not have access to the Lajedosa facility unless the PNC & Wells Fargo facility was repaid and cancelled.

On 20th April 2016 and on 8th June 2016 Game Spain renewed its short-term financing facilities with Spanish banks BBVA, Banco Santander, Ibercaja and CaixaBank in an aggregate amount of €49.65 million, made up of €29.0 million as overdraft facilities and €20.65 million of commercial credit guarantees available to suppliers via the banks. The cost to the Group of these facilities is an arrangement fee of between 0.15 per cent and 0.30 per cent, a quarterly commitment fee of 0.10 per cent and interest on drawn funds of between 2.0 per cent and 3.0 per cent per annum above Euribor90 in respect of overdraft facilities and a maximum of 1.0 per cent per annum in respect of bank guarantees. Subsequent to the period end on 4th October 2016, Game Spain agreed a further €10.0 million overdraft facility with BBVA bringing the aggregate facilities to €59.65 million. The Group's Spanish subsidiary previously renewed short-term financing facilities with Spanish banks BBVA and Banco Santander amounting to €38.5 million on 30th July 2015 and 10th September 2015 respectively.

The Group currently has aggregate available facilities of approximately £103 million (2015: £52 million) which can be increased annually over the peak season by a further £25 million.

After the end of the financial year (see note 32 to the financial statements) the Group has entered in to a sale and leaseback of its freehold property interests in Basingstoke, UK. The sale proceeds of £13.5 million will further strengthen the cash position of the business and provide further funds for re-investment.

The combination of these facilities, the sale and leaseback proceeds and the level of positive cash resources means that the Group has further strengthened its financial position as it enters the period of peak trading and the peak working capital requirement.

Working capital

Net investment in trade working capital per the consolidated statement of financial position increased by £18.0m, or 50%, to £54.0m (2015: £36.0m).

The Group is carrying higher stock balances of £76.1 million at the end of the financial year, up 14% on last year because of the growth of GAMEtronics and Accessories as well as the impact of foreign exchange rates on the Spanish balance. GAMEtronics stock is largely acquired from customers trading in their devices for cash, thereby increasing the Group's working capital balance. Weeks' inventories on hand (defined as year-end inventory divided by cost of sales per week for the last 26 weeks) has increased by 20% from 8.4 weeks to 10.3 weeks.

The trade receivables balance has increased to £9.5 million compared to £7.0 million in 2015 with an increase of £1.8 million in Multiplay trade receivables due to the growth of this business.

The impact of the 53rd week on the trade payables balance has brought in an additional supplier payment run at the calendar month end which has reduced the overall trade payables balance to £31.6 million, £6.2 million lower than 2015.

Going concern

The Directors have considered the activities and performance of the Group together with factors which could potentially affect future developments as set out more fully in the Group's Report and Accounts. After careful consideration the Directors believe that the Group has sufficient cash resources and appropriate financing facilities to ensure payments can be made as they fall due.

In making their assessment the Directors have reviewed the Group's latest budget and forecasts and considered reasonably possible downside sensitivities in performance and mitigating actions. These indicate that the Group will operate within its cash resources, financing facilities and covenants. Accordingly the financial statements have been prepared on the going concern basis.

Viability statement

In accordance with provision C.2.2 of the 2014 revision of the Code, the Directors have assessed the viability of the Company and Group over a longer period than the 12 months required by the Going Concern reporting requirements. The Directors concluded that an assessment period of three years to July 2019 is appropriate as this is consistent with the Group's three year plan process. The three year plan takes into consideration the current and expected future market conditions and latest and projected trading performance, the Group's strategy, plans and the principal risks outlined more fully in the Group's Report and Accounts.

In assessing viability, the Directors have considered the principal risks facing the Group and modelled reasonable downside scenarios to analyse the cash and debt balances and headroom available. This modelling included the potential for and effectiveness of mitigating actions. Various scenarios were modelled, some of which took account of the impact of plausible multiple risks occurring and these included faster declines in the console market including lower sales of physical software; slower growth in profits from its newly acquired businesses of Multiplay and Ads Reality; and higher capital investment to help deliver faster future diversification. The results of this scenario testing showed positive headroom on the debt facilities available against reasonable sensitivities taking account of mitigating actions over the three year assessment period.

Based on this assessment and after careful consideration, the Directors believe that it is reasonable to expect that the Group will be able to continue in operation and meet its liabilities as they fall due over the period to 31 July 2019.

The Strategic report has been approved by the Board of Directors on 12th October 2016 and is signed on its behalf by:

Consolidated Statement of Comprehensive Income

For the 53 weeks ended 30 July 2016

Consolidated Statement of Financial Position

As at 30 July 2016

Consolidated Statement of Changes in Equity

For the 53 weeks ended 30 July 2016

Consolidated Statement of Cash Flows

For the 53 weeks ended 30 July 2016

Cash and cash equivalents include the following:

Notes