Sports Direct Is The UK's Leading Sports Retailer - Sports Direct ...

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17. availaBle-for-sale finanCial assets 26 april 2009 27 april 2008 £’000 £’000 Available-for-sale financial assets 5,467 65,714 The fair value of the available-for-sale investments is based on bid quoted market prices at the balance sheet date. The following table shows the aggregate movement in the Group’s financial assets during the year: 26 april 2009 27 april 2008 £’000 £’000 At beginning of period 65,714 75,447 Additions 4,887 565,392 Disposals (12,772) (554,554) Derecognition of investments held with KSF (26,219) - Revaluation through the income statement 2,443 - Revaluation through equity (28,586) (20,571) At end of period 5,467 65,714 We have previously reported that our strategic stake were held by Kaupthing Singer & Freidlander (KSF) and partly financed by them. On 8 October 2008, KSF went into administration and we are in dispute with the administrators concerning the ownership of the shares they hold. We now have concluded that, while we continue to maintain that the shares are ours and should be delivered to us, we may not “control” the shares for accounting purposes. We have therefore treated them in the accounts as having been derecognised. Doing so has no impact on net assets as the value of the shares (£26,219,000) has been replaced by a derecognition of a liability (£20,298,000 owed to KSF) and the recognition of a £5,921,000 debtor. This derecognition has resulted in the transfer of historic losses, previously recognised in the statement of recognised income and expense, of £53,156,000 into the income statement. The financial assets at 26 April 2009 relate to strategic investments held of between 1.5% and 29.9% in share capital or contracts for difference (including shares held by KSF). The directors do not consider that they have significant influence over the financial and operating policies of the investees as they have no representation on the Board of directors, have no participation in policy-making processes, including participation in decisions about dividends or other distributions, have no material transactions with the investees and do not interchange any managerial personnel. The Group has one investment in excess of 20% of share capital, that being 29.9% (2008: 29.9%) of the ordinary share capital of Blacks Leisure Group plc, a company incorporated in England and Wales. The aggregate of its share capital and reserves and profit for the years ended 28 February 2009 and 28 February 2008 are as follows: 28 february 2009 28 february 2008 restated £’000 £’000 Aggregate share capital and reserves 68,971 83,432 Loss after taxation (14,761) (6,051) 18. inventories 26 april 2009 27 april 2008 £’000 £’000 Raw materials 4,238 3,640 Work in progress 828 1,234 Goods for resale 257,197 213,889 The following inventory costs have been recognised in cost of sales: 52 weeks ended 26 april 2009 262,263 218,763 52 weeks ended 27 april 2008 £’000 £’000 Cost of inventories recognised as an expense 805,589 706,244 £3,601,000 of stock held at the end of the year in China has been fully written off and recognised as a cost in Retail cost of sales. Sports Direct International PLC Annual Report 2009 51
notes to the finanCial statements for the 52 weeks ended 26 april 2009 Continued 19. trade and other reCeivaBles 26 april 2009 27 april 2008 £’000 £’000 Trade receivables 60,985 64,396 Amounts owed by related undertakings 534 303 Other debtors 17,958 6,596 Prepayments and accrued income 32,455 23,186 111,932 94,481 The Directors consider that the carrying amount of trade and other receivables approximates to their fair value. The maximum exposure to credit risk at the reporting date is the carrying value of each class of asset above. Ageing of trade receivables: 26 april 2009 27 april 2008 £’000 £’000 Current 47,875 42,500 0-30 days past due 4,569 7,823 30-60 days past due 1,805 4,675 60-90 days past due 1,084 1,743 Over 90 days past due 5,652 7,655 The movement in the bad debt provision can be analysed as follows: 52 weeks ended 26 april 2009 60,985 64,396 52 weeks ended 27 april 2008 £’000 £’000 Opening position 4,483 4,167 Amounts charged to the income statement 3,071 840 Amounts written off as uncollectible (245) (447) Amounts recovered during the year (14) (77) Closing position 7,295 4,483 The Group has no significant concentration of credit risk, with exposure spread over a large number of customers. These bad debt provisions/charges have been determined by reference to past default experience and knowledge of the individual circumstances of certain receivables. 20. Cash and Cash equivalents 26 april 2009 27 april 2008 £’000 £’000 Cash in bank and in hand — Sterling 12,287 8,451 Cash in bank and in hand — US dollars 10,812 3,891 Cash in bank and in hand — Euros 9,040 9,259 Cash in bank and in hand — other 219 3,817 32,358 25,418 Bank overdraft (Note 25) (442,683) (471,471) Cash and cash equivalents including overdrafts at period end (410,325) (446,053) 52 Financial Statements
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sports direct is the UK’s leading
Page 4 and 5: Contents Chairman’s statement Chi
Page 6 and 7: Dave Forsey Chief Executive overvie
Page 8 and 9: Brands division Total Brands revenu
Page 10 and 11: The Group historically hedged the r
Page 12 and 13: Basis of reportinG The financial st
Page 14 and 15: strateGiC investments During the Ye
Page 16 and 17: simon Bentley Acting Non-Executive
Page 18 and 19: The Board may refuse to register a
Page 20 and 21: auditors Grant Thornton UK LLP has
Page 22 and 23: The Board provides corporate govern
Page 24 and 25: share dealinG Code The Company has
Page 26 and 27: the performanCe share plan The Perf
Page 28 and 29: v a l u e o f h y p o t h e t i C a
Page 30 and 31: direCtors’ responsiBilities The d
Page 32 and 33: During 2008/09 a customer service h
Page 34 and 35: finanCial statements report of the
Page 36 and 37: Continuing operations: Consolidated
Page 38 and 39: assets non-current assets 52 weeks
Page 40 and 41: 1. aCCountinG poliCies The consolid
Page 42 and 43: Borrowings and borrowing costs Borr
Page 44 and 45: 4. seGmental analysis primary repor
Page 46 and 47: secondary reporting format — geog
Page 48 and 49: 10. finanCe inCome 52 weeks ended 2
Page 50 and 51: 14. property, plant and equipment f
Page 52 and 53: Value in use calculations are based
Page 56 and 57: 21. share Capital authorised 26 apr
Page 58 and 59: 25. BorrowinGs Non-current: 26 apri
Page 60 and 61: The assumptions used to determine t
Page 62 and 63: The dilapidations provision is the
Page 64 and 65: The sterling principal amounts of f
Page 66 and 67: adjustments to fair value for prior
Page 68 and 69: 34. Capital Commitments The Group h
Page 70 and 71: eport of the independent auditor to
Page 72 and 73: 1. aCCountinG poliCies notes to the
Page 74 and 75: 7. reserves share premium account t
Page 76 and 77: egistrar and transfer office Capita
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