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

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The sterling principal amounts of forward foreign currency purchase contracts and contracted forward rates were as follows: 26 april 2009 27 april 2008 £’000 £’000 US dollar purchases 350,000 1,081,668 Contracted rates 1.46-1.88 1.86 – 2.00 US dollar sales (250,000) (397,000) Contracted rates 1.92-1.94 1.92-1.98 Euro sales (202,179) (259,716) Contracted rates 1.08-1.40 1.25 – 1.40 Euro purchases 223,662 - Contracted rates 1.12-1.12 - Forward foreign currency purchase and sale contracts generally have a maturity at inception of approximately 12 months. At 26 April 2009 no purchase contracts and no sale contracts had a maturity at inception of greater than 12 months (2008: £250 million of purchase contracts). (c) sensitivity analysis Foreign currency sensitivity analysis The Group’s principal foreign currency exposures are to US dollars and the Euro. The table below illustrates the hypothetical sensitivity of the Group’s reported profit and equity to a 5% increase and decrease in the US dollar/Sterling and Euro/Sterling exchange rates at the year end date, assuming all other variables remain unchanged. The figures have been calculated by comparing the fair values of outstanding foreign currency contracts at the current exchange rate to those if exchange rates moved as illustrated. Positive figures represent an increase in profit or equity: income statement equity 26 april 2009 27 april 2008 26 april 2009 27 april 2008 £’000 £’000 £’000 £’000 Sterling strengthens by 5% US dollar (11,044) (32,603) (11,044) (32,603) Euro 4,580 12,367 4,580 12,367 Sterling weakens by 5% US dollar 11,596 34,233 11,596 34,233 Euro (4,809) (12,986) (4,809) (12,986) Interest rate sensitivity analysis The table below illustrates the hypothetical sensitivity of the Group’s reported profit and equity to a 0.5% increase or decrease in interest rates, assuming all other variables were unchanged. The analysis has been prepared using the following assumptions: • For floating rate assets and liabilities, the amount of asset or liability outstanding at the balance sheet date is assumed to have been outstanding for the whole year. • Fixed rate financial instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of this analysis. Positive figures represent an increase in profit or equity. income statement equity 26 april 2009 27 april 2008 26 april 2009 27 april 2008 £’000 £’000 £’000 £’000 Interest rate increase of 0.5% (2,420) (2,453) (2,240) (2,453) Interest rate decrease of 0.5% 2,420 2,453 2,240 2,453 Sports Direct International PLC Annual Report 2009 61
notes to the finanCial statements for the 52 weeks ended 26 april 2009 Continued (d) liquidity risk The table below shows the maturity analysis of the undiscounted remaining contractual cash flows of the Group’s financial liabilities: 2009 less than 1 year 1 to 2 years 2 to 5 years over 5 years total Bank loans and overdrafts 462,312 151 417 129 463,009 Obligations under finance leases - 207 214 214 635 Trade and other payables 106,962 - - - 106,692 Derivative financial liabilities Cash inflows (86,460) - - - (86,460) Cash outflows 121,482 - - - 121,482 604,296 358 631 343 605,628 2008 Bank loans and overdrafts 479,443 8,460 1,069 1,794 490,766 Obligations under finance leases 225 628 - - 853 Trade and other payables Derivative financial liabilities 87,123 - - - 87,123 Cash inflows (1,316,151) (444,471) - - (1,760,622) Cash outflows 1,342,355 449,989 - - 1,792,344 30. trade and other payaBles 592,995 14,606 1,069 1,794 610,464 26 april 2009 27 april 2008 £’000 £’000 Trade payables 106,962 87,123 Amounts owed to related undertakings 3,029 2,016 Other taxes including social security costs 5,055 13,660 Other payables 39,640 38,192 Accruals and deferred income(1) 55,053 66,607 The directors consider that the carrying amount of trade and other payables approximates to their fair value. 31. aCquisitions 209,739 207,598 The Group made no major acquisitions in the 52 weeks ended 26 April 2009. The increase in goodwill is attributable to adjustments to fair value for prior year acquisitions, minor acquisitions and the purchase of minority interests in existing subsidiaries. The aggregate fair value of consideration paid, assets and liabilities acquired and resulting goodwill is detailed below. acquisitions purchase of minority interests total £’000 £’000 £’000 Cash consideration including costs 790 5,818 6,608 Add: fair value of net liabilities/(assets) acquired 6,013 (340) 5,673 Excess of fair value of assets over consideration - 192 192 Goodwill 6,803 5,670 12,473 The goodwill is attributable to the premium paid to strengthen the Group’s existing business segments of retail and brand, which is in line with the Group’s strategy. 62 Financial Statements
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sports direct is the UK’s leading
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Contents Chairman’s statement Chi
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Dave Forsey Chief Executive overvie
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Brands division Total Brands revenu
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The Group historically hedged the r
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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
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Page 52 and 53: Value in use calculations are based
Page 54 and 55: 17. availaBle-for-sale finanCial as
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 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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