Exhibit 99.1

 

 

Friday 5 November 2010

 

[For immediate release]

 

Carphone Warehouse Group plc

 

Interim results for the 6 months to 30 September 2010

 

·                  Guidance for Best Buy Europe’s full-year profit share from Best Buy Mobile US raised to £85m-£95m (previously £53m-55m)

·                  Headline EPS now expected to be within a 13.5p-14.0p range (previous guidance 11.5p-11.9p)

·                  Intending to initiate dividend policy with final dividend for 2010-11

 

Best Buy Europe (JV with Best Buy Co., Inc.):

 

·                  Carphone Warehouse / Phone House (CPW Europe) continues to perform strongly, with like-for-like revenue for H1 up 2.4% (Q2 up 1.6%), and a 56% uplift in H1 EBIT to £44m

·                  Significant out-performance from Best Buy Mobile US, with H1 profit share of £43m and full year guidance range raised to £85m-£95m (previously £53m-£55m)

·                  Best Buy Mobile US connections up 25.7% year-on-year

·                  Additional investment planned in Best Buy UK, with full year EBIT loss now anticipated at £50m-£55m (previously £40m-£45m)

·                  Continued year-on-year improvement in operating free cash flow

 

Virgin Mobile France (JV with Virgin Group):

 

·                  88% year-on-year revenue growth, reflecting Tele2 acquisition and strong organic growth

·                  H1 share of Headline profit £6m - guidance for the full year unchanged at £5m

·                  Net adds now expected at 50,000-100,000 (previously 100,000-150,000)

·                  Tele2 integration broadly complete

 

Carphone Warehouse Group plc:

 

·                  Year-on-year increase in Group Headline EPS from 1.5p to 5.5p

·                  Intending to move to a regular dividend policy, targeting a final dividend for 2010-11 of c.4.5p per share, to be paid in August 2011

·                  Full year upgrade of EPS range to 13.5p-14.0p (previously 11.5p-11.9p)

 

Roger Taylor, CEO, said:

 

“We have delivered a strong first half with good performances across all our businesses, and we are raising our guidance for the full year.

 

“A key growth driver is the increasing popularity of smartphones and customers’ growing interest in the ‘Connected World’, coupled with their recognition of our heritage of expertise and independent advice in explaining complex technologies. In the US, Best Buy Mobile is performing even better than we had expected with Best Buy Mobile’s US market share now around 5%, compared to around 1% when the venture started in 2006.

 

“Customer response to our first five Best Buy branded ‘Big Box’ stores has been overwhelmingly positive, with the sixth store opening in Derby today. With yesterday’s launch of its transactional website, Best Buy gains national reach and is able to compete as a truly multi-channel retailer.

 

“In Virgin Mobile France, we have focused on the integration of Tele2, which is now broadly complete. In the second half, this business will turn its attention back to growing customer numbers.

 

“Reflecting our confidence in the future and our strong cash position, we wish to introduce a progressive dividend policy, commencing with a final dividend for the current financial year.”

 

 

Outlook

 

The Group’s strong first half performance gives us confidence to upgrade full year Headline EPS guidance to 13.5p-14.0p.

 

In CPW Europe, we continue to expect smartphones to stimulate consumer demand, particularly in the postpay segment. Smartphone penetration in the lower value prepay segment is still expected to be modest in H2 with the potential for a broader product range in this segment in 2011. As such, we are not changing our overall guidance for CPW Europe.

 

Stronger than anticipated growth and improved profit margins in Best Buy Mobile US have delivered substantial out-performance in H1, and we expect continued strong performance in the second half, with full-year profit-share guidance raised to £85-95m.

 

We will continue to invest in our Best Buy proposition during this initial launch period, with greater marketing activity than initially planned, and now expect operating losses of between £50m and £55m from Best Buy UK.

 

Despite strong earnings in the first half, we are maintaining our full year guidance for Virgin Mobile France, with significant investment in customer recruitment expected in the remainder of the year, assisted by the introduction of a full range of high-end smartphones.

 

We are seeing strong cash generation in Best Buy Europe and Virgin Mobile France, and on this basis intend to introduce a progressive dividend policy, starting with a final dividend for the current financial year, with a dividend cover target of 3 times.”

 

Group operational overview

 

One of the key drivers of our growth is the ever-growing popularity of smartphones, on which customers increasingly rely for their information, communication and connectivity needs. Our heritage and expertise in explaining complex technologies, together with the wide choice of devices we offer and the independent advice we provide, makes us the perfect retail environment for customers to experience the very best the ‘Connected World’ has to offer. The business is ideally positioned to benefit from the smartphone revolution and we continue to increase our market share.

 

Our ‘Wireless World’ stores in Europe are proving very popular and we reiterate our guidance of 100 stores by March 2011. The stores give customers a new way of shopping for connected products, with a broader product range and a “walk out working” service offering. The format itself continues to evolve but we believe we have found the right formula to roll out across our European store estate over the next few years. At the end of September we had 40 ‘Wireless World’ stores in the UK and 12 in Spain, with plans to extend the proposition into other European markets in the second half of this financial year.

 

In the US, Best Buy Mobile is performing better than expected. Customers are clearly enjoying the benefits of an independent proposition and wide range of products alongside Best Buy’s well respected service. The combination of our expertise in mobile phone retailing and Best Buy’s brand and retailing excellence is proving to be a successful formula, with Best Buy Mobile’s market share in the US now at around 5%, up from around 1% when the venture started in 2006.

 

Our first five Best Buy branded ‘Big Box’ stores are now open with the sixth opening in Derby today. We are delighted with the customer response so far, which has been overwhelmingly positive. Our transactional website launched yesterday giving Best Buy national reach and allowing us to compete as a truly multi-channel retailer.

 

In Virgin Mobile France we have been focused on integrating Tele2 during the first half of the year rather than expanding the customer base. This explains the higher than expected H1 profit contribution. Moving into the second half the business will resume focus on growing the customer base, assisted by the introduction of a full range of high-end smartphones.

 

 

Headline financials *

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
Revenue		3		3
Operating expenses		(4	)	(3	)
Joint ventures
- Best Buy Europe		19		15
- Virgin Mobile France		6		(7	)
Interest		1		(1	)
Tax		—		—
Profit after tax		25		7
Earnings per share		5.5	p	1.5	p

 

* Stated before amortisation of acquisition intangibles, and before exceptional items, as detailed in note 4 to the financial review.

 

The Group saw 267% year-on-year growth in Headline EPS from 1.5p to 5.5p, reflecting strong growth in pre-tax earnings within Best Buy Europe and a transformation in the profitability of Virgin Mobile France.

 

Group revenue

 

Revenue of £3m arose from freehold properties in the period (2009: £3m).

 

Group operating expenses

 

Operating expenses increased year-on-year from £3m to £4m, as anticipated, reflecting the additional costs of stand-alone central functions following demerger.

 

Best Buy Europe

 

Best Buy Europe is a joint venture in which the Group and Best Buy Co., Inc. each have a 50% share, comprising:

 

·                  CPW Europe — predominantly trading under the Carphone Warehouse and Phone House brands;

·                  A profit-sharing agreement in Best Buy Mobile US, Best Buy’s mobile phone retailing operations in the US; and

·                  Best Buy UK, the newly launched ‘Big Box’ consumer electronics stores and online platform in the UK, branded Best Buy.

 

Best Buy Europe generated an 81% increase in EBIT year-on-year, from £32m to £58m, despite significant investment in the period in the launch of Best Buy UK.

 

EBIT by division (100% basis)

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
CPW Europe		44		28
Best Buy Mobile US		43		11
Best Buy UK		(29	)	(7	)
		58		32

 

CPW Europe increased EBIT by 56% from £28m to £44m, reflecting a combination of improved gross margins and the benefits of the cost reduction programme undertaken in 2009.

 

Best Buy Europe’s profit share from Best Buy Mobile US increased nearly fourfold from £11m in 2009 to £43m, reflecting continued strong revenue growth and a strengthening of profit margins year-on-year.

 

Best Buy UK incurred operating losses of £29m in the period (2009: £7m), reflecting further investment in central infrastructure and IT platforms, together with launch costs for the first Best Buy stores and online platform.

 

 

Headline financials (100% basis)

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
Revenue		1,668		1,674
Gross margin		484		481
GM %		29.0	%	28.7	%
Operating expenses		(424	)	(413	)
Other operating income — Best Buy Mobile US		43		11
EBITDA		103		79
Depreciation and amortisation		(45	)	(47	)
EBIT		58		32
EBIT %		3.5	%	1.9	%
Interest		(7	)	(6	)
Tax		(13	)	3
PAT		38		29
CPW share		19		15

 

Best Buy Europe generated revenues of £1,668m, a reduction of 0.4% on last year (2009: £1,674m). As anticipated, revenues associated with the German service provider business fell year-on-year, by around £50m, as we move to a more typical retail model. Revenues were also adversely affected by £27m due to the strengthening of Sterling year-on-year.

 

CPW Europe saw like-for-like revenue growth of 2.4%, on a constant currency basis, despite a difficult economic backdrop, reflecting strong demand for smartphones and associated products and services. Continuing the trend of last year, like-for-like growth was largely driven by the UK business.

 

As anticipated, connections volumes dropped year-on-year, falling by 2.3% from 5.9m to 5.7m, reflecting lower volumes of prepay connections, a segment that has not yet benefitted from a significant ranging of smartphones.

 

The new ‘Wireless World’ store format continues to perform well, showing positive customer feedback and compelling financial returns. Further to recent successful trials, we will accelerate our roll-out across the estate in the year ahead.

 

CPW Europe opened 45 stores during the period and closed 51, ending the period at 2,424, down from 2,430 at March 2010.

 

The gross margin percentage increased by 30 basis points year-on-year to 29.0% (2009: 28.7%), continuing the positive trends seen in the second half of last year, partially offset by lower gross margins on Best Buy UK.

 

Operating expenses increased by 2.7% from £413m to £424m. CPW Europe benefitted from reduced operating costs in its German service provider business and from the annualised effects of last year’s cost reduction programme, with these savings offset by additional expenditure in Best Buy UK.

 

Other operating income represents Best Buy Europe’s profit share from Best Buy Mobile US, which increased from £11m to £43m year-on-year.

 

Best Buy Mobile traded from all of Best Buy’s 1,093 (2009: 1,055) ‘Big Box’ stores in the US at September 2010 and from 120 (2009: 52) stand-alone stores, which are typically c.1,500 sqft. Best Buy Mobile is on track to have over 175 stand-alone stores by the end of the financial year, with a significant medium-term growth opportunity. Best Buy Mobile is also increasing its space within some of Best Buy’s ‘Big Box’ stores in the US, to meet customer demands. Additionally, Best Buy Mobile launched a new online platform during the period, providing new sales opportunities as well as developing the business’ multi-channel proposition.

 

Best Buy Mobile increased connections 25.7% to 3.0m in the first half, compared to 2.4m in the same period last year. Operating profit margins strengthened year-on-year, reflecting improving operating leverage. The strong performance of Best Buy Mobile US in the first half gives us confidence in better than expected full-year results, and we have increased our guidance for full-year profit share to £85-95m.

 

We opened the first four Best Buy branded ‘Big Box’ stores in the UK during the period, with two more following in October and November, and the transactional website launched on 4 November. Customer feedback to date has been highly encouraging, and we remain confident in the opportunity to provide a differentiated service proposition to consumers. We will continue to invest in our Best Buy proposition in the UK during this initial launch period, and now expect operating losses of between £50m and £55m for the full year.

 

 

Best Buy Europe’s EBIT margin increased from 1.9% to 3.5%, reflecting the strong improvement in the performance of CPW Europe and Best Buy Mobile US year-on-year.

 

The interest charge increased from £6m to £7m, despite lower average borrowings, reflecting the higher costs of the stand-alone banking facilities introduced in 2009.

 

Best Buy Europe had an effective tax rate of approximately 26%, resulting in a charge of £13m, compared to a credit of £3m in the prior year. The credit in the comparative period reflected one-off settlements in respect of earlier years.

 

Cash flow (100% basis)

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
EBITDA pre-Best Buy UK		129		86
Working capital		(80	)	(91	)
Capex		(26	)	(26	)
Operating free cash flow pre-Best Buy UK		23		(31	)
Best Buy UK		(41	)	(16	)
Other		(18	)	(35	)
Movement in net funds		(36	)	(82	)
Opening net funds (debt)		57		(47	)
Closing net funds (debt)		21		(129	)

 

EBITDA within CPW Europe and Best Buy Mobile US grew by 50% from £86m to £129m, reflecting the strong improvements in profitability noted above.

 

As in previous years, Best Buy Europe saw an absorption of working capital in the first half, principally reflecting the seasonal increase in stock levels as the business gears up for its peak trading quarter.

 

Capex in CPW Europe was flat year-on-year at £26m, reflecting continued investment in IT and the store portfolio. Total cash investment in Best Buy UK was up from £16m to £41m, reflecting EBITDA losses of £26m (2009: £7m) and capex of £15m (2009: £9m). Despite the expected higher EBIT losses signalled above, we aim to keep cash investment in Best Buy UK within the guidance range set out in April 2010 (£70m-£80m).

 

At the end of September, net funds within Best Buy Europe were £21m, representing a significant improvement on September 2009, which saw net debt of £129m.

 

Virgin Mobile France

 

Headline financials (100% basis)

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
Revenue*		158		88
EBITDA		22		(17	)
Depreciation and amortisation		(2	)	(2	)
EBIT		20		(19	)
EBIT %		12.6	%	(21.0	)%
Interest		(1	)	—
Tax		(5	)	5
PAT		13		(14	)
CPW share		6		(7	)

 

* Revenue excludes contributions towards SAC from network operators and customers, to simplify presentation. These items, which had a value of £16m (2009: £22m) are netted off against acquisition costs within EBITDA.

 

Virgin Mobile France, our French MVNO partnership with Virgin, saw a transformation in its profitability year-on-year, reflecting the additional scale achieved through its acquisition of Tele2’s French customer base in December 2009. EBIT moved from a loss of £19m last year to a profit of £20m in the period to September 2010.

 

Revenue increased by 79% year-on-year from £88m to £158m, including a negative FX impact of £7m. Revenue growth at a constant currency was 88%, with organic growth on the same basis before Tele2 of 41%.

 

 

Virgin Mobile France’s customer base reduced by 33,000 in the period, from 1.71m at March 2010 to 1.68m at September 2010, as the business focused on the integration of Tele2. Moving into the second half, we expect a resumption of growth, supported by new sales channels and a broader product offering. We are now expecting full year net adds to be between 50,000 and 100,000, somewhat lower than our guidance in April 2010 (100,000-150,000).

 

The EBIT margin in the period to September 2010 of 12.6% (2009: negative 21.0%) reflects lower levels of customer recruitment, and hence SAC, than expected. As we invest in higher levels of customer acquisition in the second half, we expect full year margins to be in line with previous guidance (EBIT% 5-6%).

 

Interest increased year-on-year, reflecting the additional debt associated with the Tele2 acquisition.

 

An effective tax rate of 28% has been assumed, as in the previous period.

 

Virgin Mobile France recorded net amortisation of £3m (2009: £nil) on acquisition intangibles arising on Tele2. This charge is excluded from Headline results to avoid distortion of underlying performance.

 

Cash flow (100% basis)

 

		6 months ended 30 September 2010 £m		6 months ended 30 September 2009 £m
Headline EBITDA		22		(17	)
Working capital		11		(3	)
Capex		(4	)	(1	)
Operating free cash flow		29		(21	)
Other		8		1
Movement in net debt		37		(20	)
Opening net debt		(88	)	(29	)
Closing net debt		(51	)	(49	)
Closing net funds ex-shareholder loans		29		—

 

The significant year-on-year uplift in EBITDA described above translated into strong operating free cash flow, buoyed by an inflow on working capital arising from timing differences. As anticipated, the business has seen an increase in capex in the period, with spend of £4m against £1m in the previous year, principally relating to a programme to bring billing operations in-house.

 

Other cash inflows in the period include £7m in relation to the finalisation of the Tele2 purchase price.

 

Group interest and tax

 

Net interest income for the period was £1m (2009: expense of £1m) reflecting interest on cash and on loans to Virgin Mobile France and facility fees from Best Buy Europe.

 

No material tax arose in either period.

 

Group cash flow and net debt

 

At 30 September 2010, Group net funds were £114m, up from £100m at March 2010. The increase arises principally from loan repayments from Virgin Mobile France. The Group also had loans of £39m (2009: £24m) outstanding from Virgin Mobile France at September 2010; these loans are reflected in the balance sheet within interests in joint ventures.

 

Dividends

 

The Board wishes to introduce a progressive dividend policy, maintaining a dividend cover of at least 3 times, targeting a final dividend for the current financial year of around 4.5p per share, to be proposed to shareholders at the AGM, and expected to be paid in August 2011.

 

Analysts’ presentation and webcast

 

There will be a presentation for investors and analysts at 9.00 am this morning at the offices of UBS, 1 Finsbury Avenue, London EC2M 2PP.  The event will be audio webcast and the presentation slides will be available on our website, www.cpwplc.com.

 

 

Next trading update

 

The Group will give a full trading update for the third quarter of the current financial year on 18 January 2011.

 

For further information

 

For analyst and institutional enquiries
Roger Taylor, CEO	07715 170 090
Nigel Langstaff, CFO	07802 210 248
Kate Ferry, IR Director	07748 933 206
For media enquiries
Shane Conway, Corporate PR Manager	07932 199 659
Anthony Carlisle (Citigate Dewe Rogerson)	07973 611 888
	020 7638 9571

 

 

FINANCIAL REVIEW

 

Condensed consolidated income statement for the 6 months ended 30 September 2010

 

With 6 months ended 30 September 2009 comparatives

 

				Before amortisation of acquisition intangibles and exceptional items		Amortisation of acquisition intangibles and exceptional items *		After amortisation of acquisition intangibles and exceptional items		Before amortisation of acquisition intangibles and exceptional items		Amortisation of acquisition intangibles and exceptional items *		After amortisation of acquisition intangibles and exceptional items
				6 months ended 30 September 2010 (Unaudited)						6 months ended 30 September 2009 (Unaudited)
		Notes		£m		£m		£m		£m		£m		£m
Revenue		2		2.8		—		2.8		2.8		—		2.8
Cost of sales				—		—		—		—		—		—
Gross profit				2.8		—		2.8		2.8		—		2.8
Operating expenses				(4.1	)	—		(4.1	)	(3.1	)	—		(3.1	)
Share of results of joint ventures		2,7		25.3		(1.5	)	23.8		7.9		—		7.9
Profit before interest and taxation				24.0		(1.5	)	22.5		7.6		—		7.6
Interest income				1.5		—		1.5		2.4		—		2.4
Interest expense				(0.3	)	—		(0.3	)	(3.2	)	—		(3.2	)
Profit before taxation				25.2		(1.5	)	23.7		6.8		—		6.8
Taxation				(0.3	)	—		(0.3	)	—		—		—
Net profit for the period				24.9		(1.5	)	23.4		6.8		—		6.8
Earnings per share
Basic		5		5.5	p			5.2	p	1.5	p			1.5	p
Diluted		5		5.4	p			5.0	p	1.5	p			1.5	p

 

* A reconciliation of Headline results to statutory results is provided in note 4.

 

 

Condensed consolidated income statement for the 6 months ended 30 September 2010

 

With year ended 31 March 2010 comparatives

 

				Before amortisation of acquisition intangibles and exceptional items		Amortisation of acquisition intangibles and exceptional items*		After amortisation of acquisition intangibles and exceptional items		Before amortisation of acquisition intangibles and exceptional items		Amortisation of acquisition intangibles and exceptional items*		After amortisation of acquisition intangibles and exceptional items
				6 months ended 30 September 2010 (Unaudited)						Year ended 31 March 2010  (Audited)
		Notes		£m		£m		£m		£m		£m		£m
Revenue		2		2.8		—		2.8		5.5		—		5.5
Cost of sales				—		—		—		—		—		—
Gross profit				2.8		—		2.8		5.5		—		5.5
Operating expenses				(4.1	)	—		(4.1	)	(6.0	)	—		(6.0	)
Share of results of joint ventures		2,7		25.3		(1.5	)	23.8		39.1		(0.6	)	38.5
Profit before investment income, interest and taxation				24.0		(1.5	)	22.5		38.6		(0.6	)	38.0
Investment income		3		—		—		—		—		182.0		182.0
Interest income				1.5		—		1.5		3.7		—		3.7
Interest expense				(0.3	)	—		(0.3	)	(5.3	)	—		(5.3	)
Profit before taxation				25.2		(1.5	)	23.7		37.0		181.4		218.4
Taxation				(0.3	)	—		(0.3	)	0.4		—		0.4
Net profit for the period				24.9		(1.5	)	23.4		37.4		181.4		218.8
Earnings per share
Basic		5		5.5	p			5.2	p	8.3	p			48.7	p
Diluted		5		5.4	p			5.0	p	8.2	p			47.8	p

 

* A reconciliation of Headline results to statutory results is provided in note 4.

 

 

Condensed consolidated statement of comprehensive income for the 6 months ended 30 September 2010

 

		6 months ended		6 months ended		Year ended
		30 September 2010		30 September 2009		31 March 2010
		(Unaudited)		(Unaudited)		(Audited)
		£m		£m		£m
Net profit for the period		23.4		6.8		218.8
Currency translation and cash flow hedges		(1.6	)	(1.1	)	4.2
Total recognised income and expenses for the period		21.8		5.7		223.0

 

Condensed consolidated statement of changes in equity for the 6 months ended 30 September 2010

 

		Share Capital		Share premium reserve		Accumulated profits		Translation reserve		Demerger reserve		Total
		£m		£m		£m		£m		£m		£m
Balance at 1 April 2010		0.5		754.0		675.1		12.1		(751.2	)	690.5
Total recognised income and expenses for the period		—		—		23.4		(1.6	)	—		21.8
Net purchase of own shares		—		—		(2.7	)	—		—		(2.7	)
Tax on items recognised directly in reserves		—		—		0.7		—		—		0.7
Net movements in relation to share schemes		—		—		0.6		—		—		0.6
Balance at 30 September 2010		0.5		754.0		697.1		10.5		(751.2	)	710.9

 

		Share Capital		Share premium reserve		Accumulated profits		Translation reserve		Demerger reserve		Total
		£m		£m		£m		£m		£m		£m
Balance at 31 March 2009		—		—		457.8		7.9		(51.8	)	413.9
Total recognised income and expenses for the period		—		—		6.8		(1.1	)	—		5.7
Movements in demerger reserve		—		—		—		—		2.4		2.4
Balance at 30 September 2009		—		—		464.6		6.8		(49.4	)	422.0

 

		Share Capital		Share premium reserve		Accumulated profits		Translation reserve		Demerger reserve		Total
		£m		£m		£m		£m		£m		£m
Balance at 31 March 2009		—		—		457.8		7.9		(51.8	)	413.9
Total recognised income and expenses for the period		—		—		218.8		4.2		—		223.0
Issue of share capital		0.5		754.0		—		—		(754.5	)	—
Net movements in relation to share schemes		—		—		(1.5	)	—		—		(1.5	)
Movements in demerger reserve		—		—		—		—		55.1		55.1
Balance at 31 March 2010		0.5		754.0		675.1		12.1		(751.2	)	690.5

 

 

Condensed consolidated balance sheet as at 30 September 2010

 

				30 September 2010		30 September 2009		31 March 2010
				(Unaudited)		(Unaudited)		(Audited)
		Notes		£m		£m		£m
Non-current assets
Property, plant and equipment				65.7		65.7		65.9
Non-current asset investments				0.1		0.3		0.1
Interests in joint ventures		7		549.5		479.5		541.8
Deferred tax assets				1.2		—		0.8
				616.5		545.5		608.6
Current assets
Trade and other receivables				7.3		1.0		5.6
Cash and cash equivalents				114.3		—		100.0
				121.6		1.0		105.6
Total assets				738.1		546.5		714.2
Current liabilities
Trade and other payables				(13.7	)	(4.2	)	(10.1	)
Corporation tax liabilities				(0.1	)	—		—
Provisions				(13.4	)	(16.2	)	(13.6	)
				(27.2	)	(20.4	)	(23.7	)
Non-current liabilities
Loans from related parties		8		—		(104.1	)	—
				—		(104.1	)	—
Total liabilities				(27.2	)	(124.5	)	(23.7	)
Net assets				710.9		422.0		690.5
Equity
Share capital				0.5		—		0.5
Share premium reserve				754.0		—		754.0
Accumulated profits				697.1		464.6		675.1
Translation reserve				10.5		6.8		12.1
Demerger reserve				(751.2	)	(49.4	)	(751.2	)
Funds attributable to equity shareholders				710.9		422.0		690.5

 

Approved by the Board of Carphone Warehouse Group plc

4 November 2010

 

 

Condensed consolidated cash flow statement for the 6 months ended 30 September 2010

 

				6 months ended		6 months ended		Year ended
				30 September 2010		30 September 2009		31 March 2010
				(Unaudited)		(Unaudited)		(Audited)
		Notes		£m		£m		£m
Operating activities
Profit before interest and taxation				22.5		7.6		38.0
Adjustments for non-cash items:
Share-based payments				0.6		—		2.4
Non-cash movements on joint ventures				(23.8	)	(7.9	)	(38.5	)
Depreciation				0.4		0.4		0.7
Impairment of non-current asset investments				—		—		0.1
Operating cash flows before movements in working capital				(0.3	)	0.1		2.7
Increase in trade and other receivables				(1.7	)	—		(0.6	)
Increase in trade and other payables				2.9		0.8		3.0
Decrease in provisions				(0.2	)	—		(2.6	)
Cash flows from operating activities				0.7		0.9		2.5
Investing activities
Dividends received				—		—		182.0
Interest received				1.5		2.4		3.7
Acquisition of property, plant and equipment				(0.2	)	(0.3	)	(0.8	)
Net receipts from (investment in) joint ventures				11.0		(3.0	)	(32.4	)
Cash flows from investing activities				12.3		(0.9	)	152.5
Financing activities
Movement on loans from TalkTalk Group		8		—		(293.3	)	(397.4	)
Movement on loans to Best Buy Europe		8		—		293.3		293.3
Movement on other financial instruments				4.3		—		—
Net purchase of own shares				(2.7	)	—		—
Interest paid				(0.3	)	(3.2	)	(5.3	)
Cash flows relating to movements in the demerger reserve				—		3.2		54.4
Cash flows from financing activities				1.3		—		(55.0	)
Net increase in cash and cash equivalents				14.3		—		100.0
Cash and cash equivalents at the start of the period				100.0		—		—
Cash and cash equivalents at the end of the period		8		114.3		—		100.0