Download Financial Statements and more Study notes Accounting in PDF only on Docsity!
210 Statement of Directors’ Responsibilities 211 Independent Auditor’s Report to the Members of Burberry Group plc 224 Group Income Statement
225 Group Statement of Comprehensive Income 226 Group Balance Sheet
227 Group Statement of Changes in Equity
228 Group Statement of Cash Flows
229 Notes to the Financial Statements
FINANCIAL
STATEMENTS
287 Five‑Year Summary (Unaudited) 290 Company Balance Sheet 291 Company Statement of Changes in Equity 292 Notes to the Company Financial Statements 300 Shareholder Information
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BURBERRY GROUP PLC
211
Opinion
In our opinion:
- Burberry Group plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fair view of the state of the Group’s and of the Company’s affairs as at 27 March 2021 and of the Group’s profit for the 52-week period then ended;
- the Group financial statements have been properly prepared in accordance with International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union;
- the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Burberry Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) for the 52 weeks ended 27 March 2021 which comprise:
Group Company Balance sheet as at 27 March 2021 Balance sheet as at 27 March 2021 Income statement for the 52-week period then ended Statement of changes in equity for the 52-week period then ended Statement of comprehensive income for the 52-week period then ended
Related notes A to M to the financial statements including a summary of significant accounting policies Statement of changes in equity for the 52-week period then ended Statement of cash flows for the 52-week period then ended Related notes 1 to 34 to the financial statements, including a summary of significant accounting policies
The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union. The financial reporting framework that has been applied in the preparation of the Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
212
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and Company’s ability to continue to adopt the going concern basis of accounting included:
- We assessed the risk around going concern at the interim half year review and again at the planning and year-end phases of the audit.
- In conjunction with our walkthrough of the Group’s financial close process, we confirmed our understanding of management’s going concern assessment process and also engaged with management early to assess the key factors considered in their assessment.
- We checked the logic and arithmetical integrity of management’s going concern model which includes the cash forecast for the going concern assessment period which covers the period to 1 October 2022.
- We considered the appropriateness of the methods used to calculate the cash forecasts and determined through inspection and testing of the methodology and calculations that the methods utilised were appropriately sophisticated to be able to make an assessment for the Group.
- We considered the mitigating factors included in the cash forecasts that are within control of the Group. This includes review of the Group’s non-operating cash outflows and evaluating the Group’s ability to control these outflows as mitigating actions if required.
- We verified the repayment date and availability of the sustainability bond by examination of executed documentation. We also verified the revolving credit facility available to the Group by examination of executed documentation and considered the level of EBITDA required to maintain the availability of this facility through the going concern period based upon the required financial covenants included therein.
- We assessed the reasonableness of the cashflow forecast by analysing management’s historical forecasting accuracy and understanding how the anticipated impact of COVID-19 has been modelled. We evaluated the key assumptions underpinning the Group’s assessment by challenging the measurement and completeness of downside scenarios modelled by management and how these compare with principal risks and uncertainties of the Group. We searched for contrary evidence to challenge these assumptions, including sector forecasts, long-term growth rates provided by our specialists, analyst expectations and competitor announcements.
- We considered whether the Group’s forecasts in the going concern assessment were consistent with other forecasts used by the Group in its accounting estimates, including goodwill impairment, retail store impairment and deferred tax asset recognition.
- We have performed reverse stress testing in order to identify what decline in revenue would lead to the Group utilising all liquidity or breaching the financial covenant during the going concern period and we have considered the plausibility of such factors.
- We reviewed the Group’s going concern disclosures included in the annual report in order to assess that the disclosures were appropriate and in conformity with the reporting standards.
We observe that in management’s base case and severe but plausible downside scenarios, there is significant headroom without taking the benefit of any identified mitigations.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Company’s ability to continue as a going concern for the period to 1 October 2022.
In relation to the Group and Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group or Company’s ability to continue as a going concern.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
214
An overview of the scope of our audit
Tailoring the scope Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for each company within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements. We take into account size, risk profile, the organisation of the Group and effectiveness of Group-wide controls, changes in the business environment and other factors such as recent Internal Audit results when assessing the level of work to be performed at each component.
In assessing the risk of material misstatement to the Group financial statements, and to ensure we had adequate quantitative coverage of significant accounts in the financial statements, we selected eight components covering entities within the United Kingdom, China, Hong Kong S.A.R., Japan, Korea and the United States, which represent the principal business units within the Group.
For all eight components selected (“full scope components”), which were primarily selected based on their size or risk characteristics, or to ensure that, at an overall group level, we reduced and appropriately covered the residual risk of error. We performed an audit of the complete financial information for full scope components. These reporting components where we performed audit procedures accounted for 84% of the Group’s adjusted profit before tax (on an absolute basis), 82% of the Group’s revenue and 83% of the Group’s total assets.
Of the remaining components that together represent 16% of the Group’s adjusted profit before tax (on an absolute basis), none are individually greater than 5% of the Group’s adjusted profit before tax (on an absolute basis). For these components, we performed other procedures, including analytical review, testing of consolidation journals and intercompany eliminations and foreign currency translation recalculations to respond to any potential risks of material misstatement to the Group financial statements.
The charts below illustrate the coverage obtained from the work performed by our audit teams.
Adjusted profit before tax (on an absolute basis)
Revenue
Adjusted proit before tax Total assets (on an absolute basis)
Full scope components – 84%
Other procedures – 16%
Revenue
Full scope components – 82%
Other procedures – 18%
Total assets
Full scope components – 83%
Other procedures – 17%
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
215
Changes from the prior year The approach to audit scope is similar to the prior year external audit with an increase in the scope for the Japan component from a specific scope component to a full scope component.
Involvement with component teams In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the components by us, as the primary audit engagement team, or by component auditors from other EY global network firms operating under our instruction. Of the eight full scope components, audit procedures were performed on four of these directly by the primary audit team.
During the current year audit cycle, visits to the component teams were not possible due to travel restrictions arising from the COVID-19 pandemic. We performed alternative procedures, including virtual visits and live reviews of our component audit teams’ working papers.
The Group audit team followed a programme that had been designed to ensure that the Group audit partner virtually visited all full scope audit locations at least once in the year, meeting with both EY component teams and local management. During the current year’s audit cycle, virtual visits were undertaken by the Group audit team to the component teams in China, Hong Kong S.A.R., Japan, and Korea. These visits involved video calls with local management, including members of finance and members of operations or store personnel depending on the component. We held discussions on the audit approach with the component team and any issues arising from their work. As the primary team, we perform the audit for the components in the United Kingdom and the United States. We also virtually met with local management for these components.
The primary team interacted regularly with the component teams where appropriate during various stages of the audit, reviewed key working papers and were responsible for the scope and direction of the audit process. This, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion on the Group financial statements.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
217
Risk Our response to the risk Key observations communicated to the Audit Committee Carrying value of retail store right-of- use assets and property, plant and equipment As described in the Audit Committee Report (page 173); Accounting policies (page 238); and note 13 of the Consolidated Financial Statements (page 257) management assess the retail store right-of-use assets and property, plant and equipment for impairment charges and reversals of previous impairment charges.
As described in notes 13 and 14, the Group recognised an impairment charge of £156.5 million for impairment of retail store right-of-use assets and property, plant and equipment due to the impact of COVID-19 during the 52 weeks to 28 March 2020. Additionally, a net impairment charge of £11.2 million unrelated to COVID-19 was recorded within net operating expenses as a result of the annual review of impairment of retail store assets.
During the 52 weeks to 27 March 2021, a net impairment reversal of £46. million has been recorded which relates to the reversal of impairments related to COVID-19.
There is judgement and estimation uncertainty involved in determining the store forecast cash flows to measure impairment charges and reversals, in particular, revenue growth, profit margin and discount rate assumptions.
There is also uncertainty regarding the continued impact of COVID-19, which increases the estimation uncertainty in the Group’s forecasting of the future trading performance of stores.
Our procedures on the carrying value of retail store right-of-use assets and property, plant and equipment were performed centrally by the primary team.
We obtained an understanding of and evaluated the design of controls over the Group’s retail store impairment process.
We considered the appropriateness of the Group’s policy for recognising impairment charges and reversals.
Management considered whether indicators of impairment reversals or impairment charges were present for the Group’s retail store portfolio based on the Group’s latest forecast. We assessed the completeness of factors considered and assessed the accuracy of the forecast information in conjunction with our testing of the Group’s forecasts further outlined below.
For the stores identified with indicators of impairment charges or reversals, the Group prepared value-in-use impairment models. Our procedures for testing these value-in-use impairment models included, among others:
i) assessing the methodology; ii) testing the integrity of the model and data inputs used back to source data, for example agreeing the underlying store right-of-use assets and property, plant and equipment values back to the accounting records; iii) involving our valuations specialists to conclude on the appropriateness of the discount rate used; iv) challenging assumptions used in cash flow forecasts and long-term growth assumptions against historical results and third party luxury sector forecasts; and v) performing sensitivity analyses on key assumptions.
We assessed the disclosures to the financial statements and the requirement to disclose further sensitivities where a reasonably possible change in a key assumption would cause a material change in the impairment charge or reversal measured. We tested management’s sensitivity analysis over the revenue assumptions on the impairment charges and reversals recorded.
We are satisfied that the consideration of indicators of impairment, value-in-use impairment model methodology, significant underlying assumptions and judgements applied are reasonable and support management’s conclusion to recognise a net impairment reversal totalling £46. million against the retail store right-of-use assets and property, plant and equipment. We are also satisfied with the disclosure and classification of the impairment charges and reversals.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
218
Risk Our response to the risk Key observations communicated to the Audit Committee Uncertain tax positions As described in the Audit Committee Report (page 173); Accounting policies (page 238); and note 9 of the Consolidated Financial Statements (page 253) the Group is subject to tax regulation in multiple jurisdictions and the centralised operating structure of the Group requires management to exercise judgement in making determinations as to the amount of tax that is payable.
The Group is subject to tax authority audits and has a number of open tax enquiries in multiple jurisdictions at any point in time.
As a result, the Group has recognised a number of provisions against uncertain tax positions, the valuation of which requires significant assumptions and judgement. We focused on this area due to the complexity, subjectivity, quantification of the provision and the judgement around the trigger for recognition or release impacting the provision and the effective tax rate.
The primary team obtained an understanding and evaluated the design of controls over the Group’s tax provisioning process. We assessed the appropriateness of the Group’s transfer pricing and uncertain tax provision policies.
Our procedures on the uncertain tax position provisions were performed centrally by the primary team supported by overseas teams including professionals with specialised skills.
Procedures included:
i) enquiring with management to understand the Group’s cross-border transactions, the status of all significant matters, and any changes to management’s judgements in the year; ii) reading correspondence with tax authorities and external advisors to inform our assessment of recorded estimates and evaluating the completeness of the provisions recorded, including meeting with external advisors where appropriate; iii) independently assessing management’s significant assumptions and judgements to record or release provisions following tax audits, settlements and the expiry of timeframes; iv) testing the accuracy of the calculation of the provisions by inspecting underlying documentation with reference to applicable tax laws; and v) evaluating the adequacy of tax disclosures.
We are satisfied that management’s judgements in relation to the extent of provisions for uncertain tax positions are appropriate. We are also satisfied that the tax disclosures are appropriate.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
220
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our audit opinion.
Materiality The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £17.5 million which is 4.8% of adjusted profit before tax. We believe that adjusted profit before tax provides us with the best assessment of the requirements of the users of the financial statements.
We determined materiality for the Company to be £20.5 million, which is 1% of total assets. The materiality of the parent company is greater than the Group because the parent company is a holding company with significant net assets. For any parent company balances that are consolidated into the Group financial statements, an allocation of Group performance materiality was used.
Starting Basis Profit before tax £490.2m Adjustments Reversal of retail store cash generating units impairment (£46.6m) Reversal of inventory provisions (£22.3m) Reversal of receivables impairment (£5.2m) COVID-19 related rent concessions (£54.1m) Furlough grant income (£8.5m) Gain on disposal of property (£18.7m) Restructuring costs £29.8m Revaluation of deferred consideration liability £0.4m Finance charge on deferred consideration liability £0.7m Profit before tax and adjustments £365.7m Materiality 4.8% of adjusted profit before tax £17.5m
During the course of our audit, we reassessed initial materiality with the primary change in the final materiality from our original assessment at planning being to reflect the actual reported performance during the year.
Performance materiality The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that performance materiality was 50% of our planning materiality, namely £8.75m. We have set performance materiality at this percentage on the basis that this is our first year as auditors for the Group and considering the heightened uncertainty around COVID-19.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is undertaken based on a percentage of total performance materiality. The performance materiality set for each component is based on the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the current year, the range of performance materiality allocated to components was £1.5m to £7.7m.
Reporting threshold An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £0.875m which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
221
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report set out on pages 287 to 289, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
- Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set out on page 205;
Financial Statements | Independent Auditor’s Report to the Members of Burberry Group PLC
223
- We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur and met with finance and operational management from various parts of the business to understand where it considered there was susceptibility to fraud. We also considered performance targets and their influence on efforts made by management to manage earnings or influence the perceptions of analysts. We engaged our forensics specialists in assisting our assessment of the susceptibility of the Group’s financial statements to fraud. We have determined there is a risk of fraud associated to inventory provisions and a risk of management override in manual revenue journals that do not follow the expected process. We considered the programmes and controls that the Group has established to address the risks identified, including the design of controls over each significant revenue stream and inventory provisions. We also considered the controls that the Group has that otherwise prevent, deter and detect fraud, and how senior management monitors those programmes and controls. We performed audit procedures to address each identified fraud risk. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.
- Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations, including specific instructions to full scope component teams. Our procedures involved journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of legal counsel, Group management, Internal Audit, divisional management at all full scope components; and focused testing, including in respect of management override through manual revenue journals and specific searches derived from forensic investigations experience. We also leveraged our data analytics platform in performing our work on the purchase to pay process to assist in identifying higher risk transactions for testing.
- In addition, we completed procedures to conclude on the compliance of the disclosures in the annual report and accounts with all applicable requirements. Any instances of non-compliance with laws and regulations were communicated by/to components and considered in our audit approach, if applicable.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters we are required to address
- Following the recommendation from the Audit Committee we were appointed by the shareholders at the AGM on 15 July 2020 to audit the financial statements for the 52 weeks ending 27 March 2021 and subsequent financial periods. We signed an engagement letter on 22 September 2020.
- The period of total uninterrupted engagement including previous renewals and reappointments is one year, as this is the first audit year.
- The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company and we remain independent of the Group and the Company in conducting the audit.
- The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Rudberg (Senior statutory auditor) for and on behalf of Ernst & Young LLP, Statutory Auditor London
13 May 2021
Financial Statements | Group Income Statement
GROUP INCOME STATEMENT
224
Note
52 weeks to 27 March 2021 £m
52 weeks to 28 March 2020 £m Revenue 3 2,343.9 2,633. Cost of sales (681.4) (927.6) Gross profit 1,662.5 1,705. Net operating expenses 4 (1,141.4) (1,516.8) Operating profit 521.1 188.
Financing Finance income 3.1 7. Finance expense (33.3) (26.6) Other financing charge (0.7) (1.2) Net finance expense 8 (30.9) (20.2) Profit before taxation 5 490.2 168. Taxation 9 (114.3) (46.9) Profit for the year 375.9 121.
Attributable to: Owners of the Company 375.7 121. Non-controlling interest 0.2 (0.1) Profit for the year 375.9 121.
Earnings per share Basic 10 93.0p 29.8p Diluted 10 92.7p 29.8p
£m £m Reconciliation of adjusted profit before taxation: Profit before taxation 490.2 168. Adjusting operating items: Cost of sales 5 (22.3) 68. Net operating expenses 5 (102.9) 176. Adjusting financing items 5 0.7 1. Adjusted profit before taxation – non-GAAP measure 365.7 414.
Adjusted earnings per share – non-GAAP measure Basic 10 67.5p 78.9p Diluted 10 67.3p 78.7p
Dividends per share Interim 11 – 11.3p Proposed final (not recognised as a liability at 27 March/28 March) 11 42.5p –
Financial Statements | Group Balance Sheet
GROUP BALANCE SHEET
226
Note
As at 27 March 2021 £m
As at 28 March 2020 £m ASSETS Non-current assets Intangible assets 12 237.0 247. Property, plant and equipment 13 280.4 294. Right-of-use assets 14 818.1 834. Investment properties 2.4 2. Deferred tax assets 15 137.1 171. Trade and other receivables 16 45.0 53. 1,520.0 1,603. Current assets Inventories 17 402.1 450. Trade and other receivables 16 276.9 252. Derivative financial assets 18 2.2 6. Income tax receivables 39.7 50. Cash and cash equivalents 19 1,261.3 928. 1,982.2 1,688. Total assets 3,502.2 3,292.
LIABILITIES Non-current liabilities Trade and other payables 20 (99.4) (102.3) Lease liabilities 21 (809.6) (910.0) Borrowings 24 (297.1) (300.0) Deferred tax liabilities 15 (0.8) (0.1) Retirement benefit obligations (1.0) (1.9) Provisions for other liabilities and charges 22 (31.8) (28.6) (1,239.7) (1,342.9) Current liabilities Trade and other payables 20 (392.9) (447.5) Bank overdrafts 23 (45.4) (41.6) Lease liabilities 21 (210.0) (215.5) Derivative financial liabilities 18 (2.6) (4.8) Income tax liabilities (27.9) (7.9) Provisions for other liabilities and charges 22 (24.0) (13.2) (702.8) (730.5) Total liabilities (1,942.5) (2,073.4) Net assets 1,559.7 1,218.
EQUITY Capital and reserves attributable to owners of the Company Ordinary share capital 25 0.2 0. Share premium account 223.0 220. Capital reserve 25 41.1 41. Hedging reserve 25 4.7 4. Foreign currency translation reserve 25 196.4 245. Retained earnings 1,091.2 702. Equity attributable to owners of the Company 1,556.6 1,214. Non-controlling interest in equity 3.1 4. Total equity 1,559.7 1,218.
The consolidated financial statements of Burberry Group plc (registered number 03458224) on pages 224 to 286 were approved and authorised for issue by the Board on 12 May 2021 and signed on its behalf by:
Marco Gobbetti Julie Brown Chief Executive Officer Chief Operating and Financial Officer
Financial Statements | Group Statement of Changes In Equity
GROUP STATEMENT OF CHANGES IN EQUITY
227
Attributable to owners of the Company
Note
Ordinary share capital £m
Share premium account £m
Other reserves £m
Retained earnings £m Total £m
Non- controlling interest £m
Total equity £m Balance as at 30 March 2019 0.2 216.9 272.3 965.6 1,455.0 5.0 1,460. Adjustment on initial application of IFRS 16 – – – (57.1) (57.1) (0.4) (57.5) Adjustment on initial application of IFRIC 23 – – – (4.4) (4.4) – (4.4) Adjusted balance as at 31 March 2019 0.2 216.9 272.3 904.1 1,393.5 4.6 1,398. Profit for the year – – – 121.7 121.7 (0.1) 121. Other comprehensive income: Cash flow hedges 25 – – 2.7 – 2.7 – 2. Net investment hedges 25 – – (1.2) – (1.2) – (1.2) Foreign currency translation differences 25 – – 18.4 – 18.4 0.1 18. Tax on other comprehensive income 25 – – (1.2) – (1.2) – (1.2) Total comprehensive income for the year – – 18.7 121.7 140.4 – 140. Transactions with owners: Employee share incentive schemes Value of share options granted – – – 2.8 2.8 – 2. Value of share options transferred to liabilities – – – 0.1 0.1 – 0. Tax on share options granted – – – (0.6) (0.6) – (0.6) Exercise of share options – 3.9 – – 3.9 – 3. Purchase of own shares Share buy-back – – – (150.7) (150.7) – (150.7) Dividends paid in the year – – – (175.2) (175.2) – (175.2) Balance as at 28 March 2020 0.2 220.8 291.0 702.2 1,214.2 4.6 1,218. Profit for the year – – – 375.7 375.7 0.2 375. Other comprehensive income: Foreign currency translation differences 25 – – (51.2) – (51.2) (0.2) (51.4) Actuarial gains on post-employment benefit plans – – – 1.0 1.0 – 1. Tax on other comprehensive income 25 – – 2.4 (0.2) 2.2 – 2. Total comprehensive income for the year – – (48.8) 376.5 327.7 – 327. Transactions with owners: Employee share incentive schemes Value of share options granted – – – 12.1 12.1 – 12. Tax on share options granted – – – 0.7 0.7 – 0. Exercise of share options – 2.2 – – 2.2 – 2. Acquisition of additional interest in subsidiary 32 – – – (0.2) (0.2) (1.5) (1.7) Purchase of own shares Held by ESOP trusts – – – (0.1) (0.1) – (0.1) Balance as at 27 March 2021 0.2 223.0 242.2 1,091.2 1,556.6 3.1 1,559.
