Watches of Switzerland Group PLC H1 FY25 Results

About this update from Watches Of Switzerland Group Plc

[{"type":"text","content":"\n \n 5 December 2024 \n   \n \n   \n Watches of Switzerland Group PLC \n H1 FY25 Results \n for the 26 weeks to 27 October 2024 (H1 FY25) \n   \n In-line H1 performance reflecting improved trading and good momentum in Q2 \n Full Year guidance unchanged \n   \n   \n Brian Duffy, Chief Executive Officer, said: \n   \n \"We are pleased to report H1 FY25 revenue growth of +4% in constant currency 1 reflecting an encouraging improvement in trading in Q2, driven by growing demand in the UK and US, and consistent growth in client registration lists, along with the acquisition of Roberto Coin in the period. \n   \n \"As previously outlined, in Q1 we increased showroom stock levels of key brands to enhance displays and client experience, particularly in the US. With the stock rebuild complete, in Q2 we drove significantly improved US revenue of +24% (constant currency) and revenue in the UK market turned positive. Price increases from brands in the half have been modest, and this has also positively influenced consumer sentiment. Consequently, overall Group revenue increased +11% in Q2, in constant currency. \n   \n \"Our newly acquired Roberto Coin business in North America has traded strongly since acquisition and is now making a good contribution to our Group. Integration is progressing well, and growth plans are underway. We are also encouraged by the performance of the Rolex Certified Pre-Owned programme and the sustained growth in our overall pre-owned business. Additionally, we acquired Hodinkee, a leading global digital platform for luxury watch enthusiasts, further strengthening our online sector leadership. Integration is progressing in line with our expectations. \n   \n \"Q3 trading has started encouragingly, and we have continued with our showroom transformation programme.  Looking ahead, key showroom openings in H2 include the flagship Rolex boutique in Old Bond Street, London; Audemars Piguet Town House, Manchester; Rolex introduction in Plano, Texas, and a reintroduction in Jacksonville, Florida; and the conversion of Mayors Lenox, Atlanta, to a Rolex mono-brand boutique. Our trading momentum through November, visibility of intake and second half opening of large showroom investments support our full year guidance, which is unchanged. \n   \n \"This year marks the centenary of Watches of Switzerland, celebrated with a number of exclusive products, and we extend our gratitude to our colleagues for their unwavering dedication and exceptional client service throughout the year.\" \n   \n \n \n \n \n \n(£million) \n \n \n 26 weeks ended 27 October 2024 \n \n \n 26 weeks ended 29 October 2023 \n \n \n YoY change \n Reported rates \n \n \n YoY change \n Constant currency \n \n \n \n \n Group revenue \n \n \n 785 \n \n \n 761 \n \n \n 3% \n \n \n 4% \n \n \n \n \n UK and Europe \n \n \n 430 \n \n \n 433 \n \n \n (1%) \n \n \n (1%) \n \n \n \n \n US \n \n \n 355 \n \n \n 328 \n \n \n 8% \n \n \n 11% \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Adjusted EBITDA 1 \n \n \n 87 \n \n \n 94 \n \n \n (7%) \n \n \n   \n \n \n \n \n Adjusted EBITDA margin 1 \n \n \n 11.1% \n \n \n 12.3% \n \n \n (120bps) \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Adjusted EBIT 1 \n \n \n 66 \n \n \n 73 \n \n \n (10%) \n \n \n (9%) \n \n \n \n \n Adjusted EBIT margin 1 \n \n \n 8.4% \n \n \n 9.6% \n \n \n (120bp) \n \n \n   \n \n \n \n \n Adjusted basic EPS 1 (p) \n \n \n 18.1 \n \n \n 21.5 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Statutory operating profit \n \n \n 60 \n \n \n 78 \n \n \n (23%) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Statutory profit before tax \n \n \n 41 \n \n \n 67 \n \n \n (39%) \n \n \n \n \n \n \n \n Statutory basic EPS (p) \n \n \n 12.2 \n \n \n 19.8 \n \n \n   \n \n \n   \n \n \n \n \n   \n Free cash flow 1 \n \n \n   \n 28 \n \n \n   \n 57 \n \n \n   \n \n \n   \n \n \n \n \n Return On Capital Employed 1 \n \n \n 16.5% \n \n \n 23.9% \n \n \n \n \n \n   \n \n \n \n \n Net (debt)/cash 1 \n \n \n (120) \n \n \n 16 \n \n \n \n \n \n   \n \n \n \n \n   \n H1 FY25 Financial Highlights \n ·      Group revenue £785 million, +4% at constant currency, +3% at reported rates on prior year \n ·      Sequential revenue improvement with Q1 FY25 -2% and Q2 FY25 +11% in constant currency, with a strong start to Q3 ahead of the holiday trading period \n o  Luxury watch 2 revenue -2% in constant currency, -3% reported. As anticipated, revenue was impacted by one-off increases in showroom stock levels to enhance displays and client experience in Q1 FY25, particularly in the US \n § Luxury watches represent 83% of Group revenue, a reduction of 500 bps due to Roberto Coin increasing the mix of jewellery \n § Demand for our key brands, particularly products on Registration of Interest lists, continued to be strong \n o  Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second biggest luxury watch brand \n o  Luxury jewellery 2 revenue +104% in constant currency, +103% reported, driven by the acquisition of  Roberto Coin which contributed £51 million of revenue in the period   \n § Group luxury jewellery revenue excluding Roberto Coin was -6% with positive trends in the UK market (+4%).  US luxury jewellery revenue was impacted by the squeeze on the commodity bridal category and prior year clearance activity \n § Luxury branded jewellery significantly outperformed non-branded jewellery, with double digit growth within our retail and online estate \n o  Group ecommerce revenue 2 -10% on prior year, in line with market trends. US ecommerce revenue was in growth for the period \n ·      US revenue of £355 million, +11% at constant currency, +8% reported \n o  Sequential revenue improvement from Q1 FY25 -1% to +24% Q2 FY25 in constant currency \n o  Stock build for key brands completed in Q1 FY25 \n ·     UK and Europe revenue of £430 million -1% on prior year \n o  Continued stabilisation of the UK market in both luxury watches and jewellery, following a period of volatile conditions in the prior financial year \n o  Sequential revenue improvement from Q1 FY25 -4% to Q2 FY25 +2% \n ·      Adjusted EBIT of £66 million, -9% in constant currency, -10% reported on prior year \n o  Adjusted EBIT margin 8.4% (H1 FY24: 9.6%), due to product mix and lack of leverage of fixed costs \n ·      Statutory operating profit £60 million (HY FY24: £78 million), -23% on a reported basis \n ·      Free cash flow of £28 million (H1 FY24: £57 million) with conversion of 32% (H1 FY24: 60%); reduction driven by the seasonal increase in working capital for Roberto Coin and timing of supplier payments. Expected c.70% free cash flow conversion 1 for the full year \n ·      Continued investment in showrooms, with expansionary capital expenditure 2 of £44 million. A number of key showroom projects to open in the second half of the year \n ·      Net debt of £120 million as of 27 October 2024 (29 October 2023 net cash: £16 million), reflecting the acquisitions of Roberto Coin Inc. and Hodinkee \n   \n H1 FY25 Operating Highlights \n ·      Market share gains in both the UK and US as a result of our differentiated offering and investments \n ·      Integration of Roberto Coin progressing to plan.  Positive feedback from the network of retail partners, with sell-in and sell-out data encouraging \n o  Actively negotiating new mono-brand boutiques in the US, shop-in-shop concept for retail partners, alongside department store concession models.  Website upgrade in progress \n o  Strong revenue growth from the Roberto Coin brand within US WOSG showrooms, particularly following the installation of elevated displays \n ·      Exclusive and first-to-market watch product with a number of brands including Cartier, Breitling, TAG Heuer and BVLGARI \n ·      UK exclusive luxury branded jewellery launches of David Yurman and Repossi \n ·      On 3 October 2024, the Group acquired the editorial, insurance and limited edition businesses from Hodinkee, the pre-eminent global digital editorial content provider and gateway for luxury watch enthusiasts.  This acquisition will help drive online leadership \n o  Direct link in place driving Hodinkee traffic to Watches of Switzerland US website \n o  Upgrade of US website underway, completing in the second half \n o  Integration is progressing in line with our expectations \n ·      Significant progress on key showroom projects \n o  Completed projects in H1 FY25: \n § Opening of new 2,000 sq. ft Patek Philippe room in Betteridge Greenwich, Connecticut \n § New Mappin & Webb, Edinburgh \n § Expansion of Watches of Switzerland Oxford Street, London \n § Relocations of Goldsmiths Cheltenham and Milton Keynes, our first Ernest Jones project \n o  Projects to complete in H2 FY25: \n § Conversion and expansion of Watches of Switzerland Fenchurch Street, London from Mappin & Webb \n § New flagship Rolex boutique Old Bond Street, London \n § Relocation and introduction of Rolex and Cartier to Watches of Switzerland Plano, Texas \n § Relocation and reintroduction of Rolex to Mayors Jacksonville, Florida \n § Conversion of Mayors Lenox, Atlanta to a Rolex boutique \n § Relocation of Mayors Tampa, Florida \n § Expansion of Betteridge Vail, Colorado \n § New Watches of Switzerland Ross Park, Pittsburgh \n § Audemars Piguet Townhouse, Manchester to be operated as a joint venture \n o  Projects to complete in early FY26: \n § Mappin & Webb luxury jewellery boutique, Manchester, including our first De Beers mono-brand boutique \n ·      Progress made on the exit from Europe.  Two showrooms closed in the period and four sold to brand partners.  Agreements to sell a further two boutiques to brand partners in H2 FY25. This will leave one European mono-brand boutique in the Republic of Ireland \n ·    Accredited as a Great Place to Work employer in the UK and US, and Living Wage Employer in the UK \n   \n Outlook \n ·     FY25 guidance unchanged, underpinned by sequential trading improvement, visibility of intake and the large showroom projects opening in the second half of the year.  We are well positioned for a good holiday trading period, having made an encouraging start in November \n   \n ·      Guidance reflects current visibility of supply from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions \n   \n \n \n \n \n ·      The Group provides the following FY25 guidance on a pre-IFRS 16 basis, assuming a £/$1.26 exchange rate: \n   \n \n \n \n \n o     Revenue: \n \n \n £1.67 - £1.73 billion, growth of 9% - 12% at constant currency \n \n \n \n \n o     Adjusted EBIT margin %: \n \n \n +0.2 to +0.6 percentage points expansion from FY24 \n \n \n \n \n o     Total finance costs: \n \n \n c.£13 million, reflecting additional financing for Roberto Coin Inc. acquisition \n \n \n \n \n o     Underlying tax rate: \n \n \n 28% - 30% \n \n \n \n \n o     Capex: \n \n \n £60 - £70 million \n \n \n \n \n o     Free cash flow conversion: \n \n \n c.70% weighted towards H2 in line with the seasonal pattern \n \n \n \n \n \n \n \n \n \n \n \n \n \n The equivalent guidance on an IFRS 16 basis is: \n \n \n \n \n o     Adjusted EBIT margin %: \n \n \n +0.2 to +0.6 percentage points expansion from FY24 \n \n \n \n \n o     Total finance costs: \n \n \n £37 - £41 million \n \n \n \n \n    \n \n \n \n \n \n \n \n   \n ·      The Group is exposed to movements in the £/$ exchange rate when translating the results of its US operations into Sterling. The actual average exchange rate for FY24 was £/$1.26. FY25 guidance assumes a £/$1.26 exchange rate, with a five cent move resulting in an adjustment of c.£30 million to full year Group revenue and c.£4 million on full year Adjusted EBIT, on a pre-IFRS 16 basis \n   \n H1 FY25 Revenue Performance by Geography \n   \n \n \n \n \n \n \n \n H1 FY25 \n \n \n H1 FY24 \n \n \n H1 FY25 vs H1 FY24 \n \n \n \n \n   \n   \n (£m) \n \n \n 26 weeks to \n 27 Oct 2024 \n \n \n 26 weeks to \n 29 Oct 2023 \n \n \n Reported YoY % \n \n \n     \n Constant currency YoY % \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n UK and Europe \n \n \n 430 \n \n \n 433 \n \n \n -1% \n \n \n -1% \n \n \n \n \n US \n \n \n 355 \n \n \n 328 \n \n \n +8% \n \n \n +11% \n \n \n \n \n Group Revenue \n \n \n 785 \n \n \n 761 \n \n \n +3% \n \n \n +4% \n \n \n \n \n   \n   \n H1 FY25 Revenue Performance by Category \n   \n \n \n \n \n \n \n \n H1 FY25 \n \n \n H1 FY24 \n \n \n H1 FY25 vs H1 FY24 \n \n \n \n \n   \n   \n (£m) \n   \n \n \n 26 weeks to \n 27 Oct 2024 \n \n \n 26 weeks to \n 29 Oct 2023 \n \n \n Reported YoY % \n \n \n   \n Constant currency YoY % \n \n \n \n \n Luxury watches \n \n \n 649 \n \n \n 670 \n \n \n -3% \n \n \n   \n -2% \n \n \n \n \n Luxury jewellery \n \n \n 95 \n \n \n 47 \n \n \n +103% \n \n \n +104% \n \n \n \n \n Services/other \n \n \n 41 \n \n \n 44 \n \n \n -9% \n \n \n -8% \n \n \n \n \n Group Revenue \n \n \n 785 \n \n \n 761 \n \n \n +3% \n \n \n +4% \n \n \n \n \n   \n   \n H1 FY25 Results Presentation \n A webcast conference call for analysts and investors will be held at 9.00am (UK time) today to announce the H1 FY25 results. To join the call, please use the following details: \n   \n Webcast details : \n Register at: https://brrmedia.news/WOSGH1FY25 \n   \n Conference call dial-in details : \n United Kingdom: +44 (0) 33 0551 0200 \n United Kingdom (Toll-Free): 0808 109 0700 \n Password: WOSG H1 \n   \n Contacts \n The Watches of Switzerland Group \n Anders Romberg, CFO                                                                                                                      +44 (0) 207 317 4600 \n Caroline Browne, Group Finance Director                                                                                   +44 (0) 1162 817 420 \n [email protected] \n   \n Headland \n Lucy Legh / Rob Walker / Scarlett Hateley                                                                                     +44 (0) 20 3805 4822 \n [email protected] \n   \n   \n About the Watches of Switzerland Group \n The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK, US and Europe comprising seven prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering. From 8 May 2024, the Group also owns the exclusive distribution rights for Roberto Coin in the USA, Canada, Central America and the Caribbean. \n   \n As at 27 October 2024, the Watches of Switzerland Group had 217 showrooms across the UK, US and Europe including 95 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Audemars Piguet, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail websites. \n   \n The Watches of Switzerland Group is proud to be the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches. \n www.thewosgroupplc.com \n   \n   \n   \n Disclaimer \n This announcement has been prepared by Watches of Switzerland Group PLC (the 'Company'). It includes statements that are, or may be deemed to be, \"forward-looking statements\". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms \"believes\", \"estimates\", \"anticipates\", \"expects\", \"intends\", \"plans\", \"goal\", \"target\", \"aim\", \"may\", \"will\", \"would\", \"could\" or \"should\" or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this announcement and the information incorporated by reference into this announcement and may include statements regarding the intentions, beliefs or current expectations of the Company Directors or the Group concerning, amongst other things: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies, the expansion and growth of the Group's business operations; and (iii) the effects of government regulation and industry changes on the business of the Company or the Group. \n   \n By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this announcement and/or the information incorporated by reference into this announcement. \n   \n Any forward-looking statements made by or on behalf of the Company or the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this announcement, and are subject to risks relating to future events, other risks, uncertainties and assumptions relating to the Company's operations and growth strategy, and a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Undue reliance should not be placed on any forward-looking statements and, except as required by law or regulation, the Company undertakes no obligation to update these forward-looking statements.  No statement in this announcement should be construed as a profit forecast or profit estimate. \n   \n Before making any investment decision in relation to the Company you should specifically consider the factors identified in this document, in addition to the risk factors that may affect the Company or the Group's operations as detailed above. \n   \n Chief Executive Officer's Review \n The Group performed in line with expectations in the first half of the year and we are pleased to see sequential improvement in trading in both our markets. Group revenue was £785 million, +4% in constant currency, +3% in reported rates, with Q2 FY25 improving to +11% in constant currency from -2% in Q1 FY25. Profitability was impacted by the lack of leverage, which will reverse in the second half of the year. \n   \n Demand for our key brands, particularly products on Registration of Interest lists, continued to be strong. Luxury watches revenue was -2% in constant currency, -3% reported. As anticipated, revenue was impacted by one-off increases in showroom stock levels to enhance displays and client experience in Q1 FY25, particularly in the US. The UK market showed continued stabilisation, following a period of challenging macroeconomic conditions in the prior financial year. \n   \n Following the launch of Rolex Certified Pre-Owned in the prior year, the pre-owned category continues to grow.  Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second biggest luxury watch brand. The range of product offered in showrooms is significantly greater than our competitors and has enabled strong growth in the period with further opportunity to expand the category through merchandising and advertising. We are looking forward to the introduction of Rolex Certified Pre-Owned window displays and in-store formats. Rolex Certified Pre-Owned is currently available in 24 agencies in the UK, 19 in the US, and online. \n   \n Luxury jewellery revenue +104% in constant currency, +103% reported, where Roberto Coin contributed £51 million of revenue in the period. Group luxury jewellery revenue excluding Roberto Coin was -6% with positive trends in the UK market (+4%). US luxury jewellery revenue was impacted by the squeeze on the commodity bridal category and prior year clearance activity. Luxury branded jewellery significantly outperformed non-branded jewellery, with double digit growth within our retail and online estate. \n Our long-standing relationships with the most recognised and prestigious luxury watch brands have remained a point of distinction. We have continued to collaborate on exclusive product which in the half included products from Cartier, Breitling, TAG Heuer and BVLGARI. We are also pleased to bring new, exclusive luxury branded jewellery partnerships to the UK business with David Yurman and Repossi. \n We are delighted to be accredited as a Great Place to Work employer and the fact that we have made the list of Certified Great Places to Work in both of our US and UK regions in our first year of entry is testament to the hard work, passion and team spirit of all of our colleagues who work hard to deliver positive outcomes for our clients. It is wonderful to see how proud our colleagues are to work for our Group and how included they feel when they join and continue to develop their careers with us. \n   \n We have continued to invest in our showroom network in both markets, with significant progress made on key projects such as the flagship Rolex boutique on Old Bond Street, London, Audemars Piguet Townhouse, Manchester and Mappin & Webb Luxury Jewellery Boutique, Manchester. We have started the renovation of our recently acquired Betteridge showrooms with the expansion of Vail, Colorado opening in December 2024 and recently opened a new 2,000 sq. ft Patek Philippe room in Greenwich, Connecticut, with the rest of the showroom refurbishment to be completed in FY26. The first half of the year also saw us complete our first Ernest Jones project, with the relocation of Goldsmiths Milton Keynes. The second half of the year will also see the introduction of a new Rolex agency in Watches of Switzerland Plano, Texas and the relocation and reintroduction of Rolex in Jacksonville, Florida; along with the conversion of Mayors Lenox, Atlanta into a Rolex mono-brand boutique and the relocation of Mayors Tampa, Florida. \n   \n The integration of Roberto Coin, which we acquired on 8 May 2024, is progressing to plan. We have spent significant time getting to know the excellent Roberto Coin team and have been collaborating on a number of new initiatives. These include actively negotiating new mono-brand boutique locations, designing a new shop-in-shop concept for our retail partners, alongside discussing potentially moving to a concession model with department store partners. We are also in the process of upgrading the Roberto Coin ecommerce site, which should be completed in H2, and initiating a new marketing campaign. Feedback from the network of retail partners has been positive post-acquisition, and sell-out data is encouraging. We continue to see the Roberto Coin brand perform well within our own network of showrooms, particularly following the installation of elevated displays. \n   \n I am also delighted to welcome our new colleagues from Hodinkee, which we acquired on 3 October 2024.  Hodinkee has become the go-to, global destination for luxury watch enthusiasts offering digital print and video content, limited edition watch collaborations alongside watch and jewellery insurance services. We have successfully integrated Hondinkee's commercial activities; their growing, engaged online traffic is being directed to the Watches of Switzerland US ecommerce site. We are excited to see Ben Clymer, Hodinkee's founder, returning to lead the operations of Hodinkee for the first time since he ceded his role as CEO in December 2020. Hodinkee will continue to have editorial independence as a leading editorial media organisation. This will protect Hodinkee's impartial journalism, ensuring the continued creation of unmatched editorial content presented through Hodinkee's unique voice and lens. \n   \n From a macropolitical standpoint, the uncertainty around the UK Budget and US election is now behind us, and we believe this will be positive for consumer sentiment.  In the UK, we are disappointed that VAT free shopping for tourists has not yet been reinstated. The growing evidence suggests that UK business is significantly negatively impacted by this, with tourist shopping moving to other major European cities. \n   \n Finally, I would like to thank our teams who continue to inspire and deliver. Their hard work and commitment continue to enable the Group to be successful. \n   \n Financial Review \n The Group's Consolidated Income Statement is shown below which is presented including IFRS 16 'Leases' and includes exceptional items. \n   \n \n \n \n \n Income Statement - post-IFRS 16 and exceptional items (£million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n YoY variance \n \n \n \n \n Revenue \n \n \n 784.8 \n \n \n 761.4 \n \n \n 3.1% \n \n \n \n \n Operating profit \n \n \n 60.2 \n \n \n 78.0 \n \n \n (22.9)% \n \n \n \n \n Net finance cost \n \n \n (19.7) \n \n \n (11.5) \n \n \n (70.3)% \n \n \n \n \n Profit before taxation \n \n \n 40.5 \n \n \n 66.5 \n \n \n (39.1)% \n \n \n \n \n Taxation \n \n \n (11.6) \n \n \n (19.5) \n \n \n 40.7% \n \n \n \n \n Profit for the financial period \n \n \n 28.9 \n \n \n 47.0 \n \n \n (38.5)% \n \n \n \n \n Basic earnings per share \n \n \n 12.2p \n \n \n 19.8p \n \n \n (38.4)% \n \n \n \n \n   \n Management monitor and assess the business performance on a pre-IFRS 16 and exceptional items basis, which is shown below. This aligns to the reporting used to inform business decisions, investment appraisals, incentive schemes and debt covenants. A full reconciliation between the pre- and post-IFRS 16 results is shown in the Glossary. \n   \n \n \n \n \n Income Statement - pre-IFRS 16 and exceptional items (£million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n YoY variance \n \n \n \n \n Revenue \n \n \n 784.8 \n \n \n 761.4 \n \n \n 3.1% \n \n \n \n \n Net margin 1 \n \n \n 284.3 \n \n \n 280.1 \n \n \n 1.5% \n \n \n \n \n Showroom costs \n \n \n (141.6) \n \n \n (137.2) \n \n \n (3.2%) \n \n \n \n \n 4-Wall EBITDA 1 \n \n \n 142.7 \n \n \n 142.9 \n \n \n (0.1%) \n \n \n \n \n Overheads \n \n \n (50.6) \n \n \n (43.4) \n \n \n (16.7%) \n \n \n \n \n EBITDA 1 \n \n \n 92.1 \n \n \n 99.5 \n \n \n (7.4%) \n \n \n \n \n Showroom opening and closing costs \n \n \n (4.8) \n \n \n (5.5) \n \n \n 13.3% \n \n \n \n \n Adjusted EBITDA 1 \n \n \n 87.3 \n \n \n 94.0 \n \n \n (7.1%) \n \n \n \n \n Depreciation, amortisation and loss on disposal of fixed assets \n \n \n (21.1) \n \n \n (20.6) \n \n \n (2.7%) \n \n \n \n \n Segment profit (Adjusted EBIT 1 ) \n \n \n 66.2 \n \n \n 73.4 \n \n \n (9.8%) \n \n \n \n \n Net finance costs \n \n \n (7.3) \n \n \n (1.5) \n \n \n (374.7%) \n \n \n \n \n Adjusted profit before taxation 1 \n \n \n 58.9 \n \n \n 71.9 \n \n \n (18.1%) \n \n \n \n \n Adjusted earnings per share 1 \n \n \n 18.1p \n \n \n 21.5p \n \n \n (15.8%) \n \n \n \n \n   \n   \n Revenue \n   \n Revenue by geography and category \n \n \n \n \n 26 weeks to 27 October 2024 \n (£million) \n \n \n UK and Europe \n \n \n US \n \n \n Total \n \n \n Mix \n \n \n \n \n Luxury watches \n \n \n 367.3 \n \n \n 281.6 \n \n \n 648.9 \n \n \n 83% \n \n \n \n \n Luxury jewellery \n \n \n 29.4 \n \n \n 16.2 \n \n \n 45.6 \n \n \n 6% \n \n \n \n \n Luxury jewellery wholesale \n \n \n - \n \n \n 51.8 \n \n \n 51.8 \n \n \n 6% \n \n \n \n \n Eliminations \n \n \n - \n \n \n (2.0) \n \n \n (2.0) \n \n \n - \n \n \n \n \n Services/other \n \n \n 33.2 \n \n \n 7.3 \n \n \n 40.5 \n \n \n 5% \n \n \n \n \n Total revenue \n \n \n 429.9 \n \n \n 354.9 \n \n \n 784.8 \n \n \n 100% \n \n \n \n \n   \n \n \n \n \n 26 weeks to 29 October 2023 \n (£million) \n \n \n UK and Europe \n \n \n US \n \n \n Total \n \n \n Mix \n \n \n \n \n Luxury watches \n \n \n 369.0 \n \n \n 301.1 \n \n \n 670.1 \n \n \n 88% \n \n \n \n \n Luxury jewellery \n \n \n 28.3 \n \n \n 18.7 \n \n \n 47.0 \n \n \n 6% \n \n \n \n \n Services/other \n \n \n 36.3 \n \n \n 8.0 \n \n \n 44.3 \n \n \n 6% \n \n \n \n \n Total revenue \n \n \n 433.6 \n \n \n 327.8 \n \n \n 761.4 \n \n \n 100% \n \n \n \n \n   \n Group revenue of £785m increased by +4% at constant currency, +3% at reported rates from prior year, with sequential improvement from Q1 FY25 (-2%) to Q2 FY25 (+11%) in constant currency. \n   \n Group revenue from luxury watches declined by -2% in constant currency, -3% reported on the prior year. As anticipated, revenue was impacted by one-off increases in showroom stock levels to enhance displays and client experience in Q1 FY25, particularly in the US. \n   \n Luxury watch revenue made up 83% of Group revenue versus 88% in H1 last year, with the acquisition of Roberto Coin Inc. in the period contributing to a higher luxury jewellery mix. \n   \n Group luxury jewellery revenue more than doubled versus the prior year, with the acquisition of Roberto Coin contributing £51 million of revenue in the period. Group luxury jewellery excluding Roberto Coin declined by -5% in constant currency, -6% reported on the prior year, with positive trends in the UK market (+4%). In the prior year, there was significant clearance of luxury jewellery stock at lower margins in the US. In the current year we maintained strong margins in our US luxury jewellery category. \n   \n The majority of luxury jewellery sold by the Group is retailed under our house brands of Goldsmiths, Mappin & Webb, Mayors and Betteridge. Our strategy is to grow our luxury branded jewellery offering, where we partner with other major luxury jewellery brands. Luxury branded jewellery revenue continues to significantly outperform non-branded jewellery, with double digit growth within our retail and online estate. \n   \n On 8 May 2024, the Group signed and completed the acquisition of the entire share capital of Roberto Coin Inc., the exclusive distributor of Roberto Coin in the US, Canada, Central America and the Caribbean. Revenue in the period was £51 million, in line with expectations. The business continues to work positively with retail partners post-acquisition and demand remains robust ahead of the key holiday period. \n   \n Group ecommerce revenue declined by -10% compared to the prior period, impacted by the mix of products sold through this channel, the US market was in growth for the period. We continue to be the market leader in ecommerce for luxury watches and jewellery in the UK and are growing our proposition in the US. On 3 October 2024, the Group completed the acquisition of the editorial, insurance and limited edition businesses of Hodinkee, the pre-eminent global digital editorial content provider to support our Long Range Plan objectives to leverage sector leadership online. \n   \n US revenue increased by +8% year-on-year (+11% on a constant currency basis) to £355 million and the US business made up 45% of the Group's revenue in H1 FY25 (H1 FY24: 43%). Revenue and EBIT margin growth was driven by the Roberto Coin acquisition. Underlying revenue (excluding Roberto Coin Inc.) was impacted by one-off headwinds in the first half and saw sequential improvement through the period. \n   \n UK and Europe revenue declined by -1% during the period but showed an improving trend in Q2 FY25. Luxury watch revenue was -3% in Q1 but improved to +2% in Q2. Luxury jewellery revenue returned to a positive trend in the second quarter, with revenue +4% in H1 FY25. \n   \n Sales in the UK were driven by domestic clientele and tourist sales continue to remain low, particularly due to the absence of VAT free shopping for tourists in the UK. \n   \n During the period, we opened one multi-brand business in Edinburgh under the Mappin & Webb brand and closed four non-core showrooms in the UK, giving a net reduction of three. In the period, three projects were completed enhancing our existing estate to further elevate the partner brands we display in those showrooms and advance our client experience; our Watches of Switzerland Oxford Street showroom was expanded and our Goldsmiths showrooms in Cheltenham and Milton Keynes were relocated. Milton Keynes represents the first upgrade of Ernest Jones showrooms acquired in the prior year. \n   \n Significant progress has been made on our exit from Europe. Two showrooms closed in the period and four sold to brand partners. Agreements in place to sell a further two boutiques to brand partners in H2 FY25. This will leave one European mono-brand boutique in the Republic of Ireland. \n   \n   \n Profitability \n \n \n \n \n \n   \n \n \n Profitability as a % of revenue \n \n \n \n \n Income Statement - pre-IFRS 16 and exceptional items (£ million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n YoY variance \n \n \n \n \n Net margin 1 \n \n \n 36.2% \n \n \n 36.8% \n \n \n (60bps) \n \n \n \n \n Showroom costs \n \n \n 18.0% \n \n \n 18.0% \n \n \n - \n \n \n \n \n 4-Wall EBITDA 1 \n \n \n 18.2% \n \n \n 18.8% \n \n \n (60bps) \n \n \n \n \n EBITDA 1 \n \n \n 11.7% \n \n \n 13.1% \n \n \n (140bps) \n \n \n \n \n Adjusted EBITDA 1 \n \n \n 11.1% \n \n \n 12.3% \n \n \n (120bps) \n \n \n \n \n Adjusted EBIT 1 \n \n \n 8.4% \n \n \n 9.6% \n \n \n (120bps) \n \n \n \n \n   \n Net margin as a % of revenue was 36.2% in the period. The reduction in margin reflects adverse product mix, partly offset by savings on Interest Free Credit costs from lower participation and a reduction in average term time. \n   \n Showroom costs increased by £4.4 million (+3.2%) from the prior year, to £141.6 million. The increase in costs reflects the annualisation of prior year openings, including acquisitions, and the additional costs of leases for relocated or expanded showrooms. This was partly offset by efficiencies found within showroom payroll and digital marketing investment, which continues to maximise traffic and conversion versus cost. \n   \n Overheads increased by £7.2 million (+16.7%) due to the acquisition of Roberto Coin Inc. (£8.2m), partly offset by tight management of the cost base. \n   \n Showroom opening and closing costs include the cost of rent (pre-IFRS 16), rates and payroll prior to the opening or closing of showrooms, or during closures when refurbishments are taking place. This cost will vary annually depending on the scale of expansion in the period. Total costs for the period were £4.8 million versus £5.5 million in H1 FY24, reflecting timing of refurbishments and new showroom openings. \n   \n Exceptional administrative items \n   \n The Group presents as exceptional items, on the face of the Interim Condensed Consolidated Income Statement, those material items of income and expense which, because of the nature or the expected infrequency of the events giving rise to them, merit separate presentation to provide a better understanding of the elements of financial performance in the financial period, so as to assess trends in financial performance. \n   \n \n \n \n \n Exceptional items (£million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n \n \n Business acquisition costs \n \n \n 0.7 \n \n \n 0.6 \n \n \n \n \n Rolex Old Bond Street \n \n \n 2.4 \n \n \n - \n \n \n \n \n Impairment of property, plant and equipment (IFRS 16) \n \n \n 6.2 \n \n \n 1.2 \n \n \n \n \n Impairment of right-of-use assets (IFRS 16) \n \n \n 7.2 \n \n \n 1.9 \n \n \n \n \n Total \n \n \n 16.5 \n \n \n 3.7 \n \n \n \n \n   \n Business acquisition costs \n Professional and legal expenses related to business combinations have been expensed to the Interim Condensed Consolidated Income Statement as an exceptional cost as they are regarded as non-trading, non-underlying costs and are considered to be material by nature. \n   \n Rolex Old Bond Street \n A new 6,000 sq. ft (selling space) showroom is being built in partnership with Rolex. This new flagship will be our largest Rolex showroom and reflects the importance of the London market and the special relevance of London to the history of Rolex. The cost shown here is the IFRS 16 depreciation and interest costs whilst the showroom is being constructed. They are deemed to be exceptional in nature given that this unique proposition results in a project size and complexity significantly outside of a standard build, coupled with documented project delays outside of the Group's control. The showroom is due to open at the end of FY25. \n   \n Showroom impairment \n The current macroeconomic environment, high interest rates and inflationary landscape gave rise to indicators of impairment in the current period. Consequently, discounted cashflows were performed on all Cash Generating Units (CGUs) with indicators of impairment. This resulted in a non-cash impairment charge of £13.4 million of which £7.2 million related to right-of-use assets. \n   \n Finance costs \n   \n \n \n \n \n Net finance costs (£million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n \n \n Pre-IFRS 16 net finance costs, excluding exceptionals \n \n \n 7.3 \n \n \n 1.5 \n \n \n \n \n IFRS 16 interest on lease liabilities \n \n \n 11.1 \n \n \n 10.0 \n \n \n \n \n Total net finance costs, excluding exceptionals \n \n \n 18.4 \n \n \n 11.5 \n \n \n \n \n   \n Interest payable on borrowings increased, primarily as a result of additional lending for acquisitions, the most significant being the Roberto Coin Inc. acquisition in May 2024, and the Ernest Jones acquisition in November 2023. The impact was an increase in the pre-IFRS 16 interest charge of £5.8 million to £7.3 million. \n   \n The IFRS 16 interest on lease liabilities increased by £1.1 million due to recent additions to the lease portfolio. \n   \n Details of a further £1.3 million of exceptionals finance costs are given in note 4 of the Interim Condensed Consolidated Financial Statements. \n   \n Taxation \n   \n The pre-IFRS 16 effective tax rate for the period was 28.4% and 28.5% as reported under IFRS 16. This is higher than the applicable UK corporation tax rate for the year of 25.0% as a result of higher chargeable taxes on US profits, and the impact of expenses disallowed for corporation tax. \n   \n Balance Sheet \n \n \n \n \n Balance Sheet (£million) \n \n \n   \n 27 October 2024 \n \n \n   \n 28 April 2024 \n \n \n   \n 29 October 2023 \n \n \n \n \n Goodwill and intangibles \n \n \n 301.3 \n \n \n 215.7 \n \n \n 202.8 \n \n \n \n \n Property, plant and equipment \n \n \n 203.5 \n \n \n 191.4 \n \n \n 185.5 \n \n \n \n \n Right-of-use assets \n \n \n 369.0 \n \n \n 381.8 \n \n \n 402.6 \n \n \n \n \n Inventories \n \n \n 477.1 \n \n \n 393.3 \n \n \n 399.7 \n \n \n \n \n Trade and other receivables \n \n \n 59.1 \n \n \n 24.6 \n \n \n 22.3 \n \n \n \n \n Trade and other payables \n \n \n (270.3) \n \n \n (216.5) \n \n \n (250.7) \n \n \n \n \n Lease liabilities \n \n \n (454.3) \n \n \n (460.4) \n \n \n (459.6) \n \n \n \n \n Net (debt)/cash \n \n \n (119.5) \n \n \n 0.7 \n \n \n 16.1 \n \n \n \n \n Other \n \n \n (18.3) \n \n \n (7.6) \n \n \n (2.9) \n \n \n \n \n Net assets \n \n \n 547.6 \n \n \n 523.0 \n \n \n 515.8 \n \n \n \n \n   \n Goodwill and intangibles increased by £85.6 million in the period, driven by £90.8 million of additions from acquisitions, offset by an unfavourable exchange impact. £1.7 million of computer software additions were made in the period as part of ongoing IT developments, which was offset by amortisation of £1.1 million. \n   \n Property, plant and equipment increased by £12.1 million in the period. Additions of £43.1 million (including £1.0 million from acquisitions), were offset by depreciation of £19.5 million, impairments of £6.2 million, disposals of £2.8 million, and an unfavourable exchange impact of £2.5 million. The disposals shown are the sale of four Swedish mono-brand boutiques to brand partners. \n   \n Including software costs, which are disclosed as intangibles, capital additions (including accruals) were £44.8 million in the period (H1 FY24: £49.9 million) of which £43.2 million (H1 FY24: £48.3 million) was expansionary. Expansionary capex relates to new showrooms, relocations or major refurbishments (defined as costing over £250k). In the period, the Group opened one new showroom, acquired four showrooms from Roberto Coin Inc. and refurbished or relocated four showrooms. Investment in our portfolio is paramount to our strategy and the Group follows a disciplined payback policy when making capital investment decisions. \n   \n Right-of-use assets decreased by £12.8 million in the period, to £369.0 million. Additions to the lease portfolio along with lease renewals or other lease changes were £28.2 million. This was offset by depreciation of £28.8 million, impairments of £7.2 million, and an unfavourable exchange impact of £5.0 million. \n   \n Lease liabilities decreased by £6.1 million in the period. The portfolio changes noted above increased the lease liability by £26.0 million. Interest charged on the lease liability was £12.4 million along with a favourable exchange impact of £5.9 million. Lease payments were £38.6 million, giving a closing lease liability balance of £454.3 million. \n   \n Inventory levels increased by £77.4 million compared to H1 FY24. Inventory acquired from Roberto Coin Inc. was £49.7 million, and from Ernest Jones showrooms was £25.3 million. We are well stocked for the holiday season. \n   \n Trade and other receivables increased by £36.8 million compared to H1 FY24. The HY25 balance includes £20.1 million in relation to Roberto Coin Inc., together with £10.3m of cash balances held in third party escrow accounts linked to acquisition spend. The remaining increase is reflective of higher prepayments and receivables, in part due to timing of payments at the half year, in addition to increases as the business continues to grow. \n   \n Trade and other payables increased by £19.6 million compared to H1 FY24. The HY25 balance includes £21.0 million in relation to Roberto Coin Inc., and £10.3 million of acquisition balances held in third party escrow accounts as noted above. This increase is offset by a lower supplier payable. \n   \n Other includes taxation balances, defined benefit pension and capitalised finance costs. \n   \n Net debt and financing \n Net debt on 27 October 2024 was £119.5 million, an increase of £120.2 million since 28 April 2024. The main driver was the total acquisition consideration paid of £106.9 million in the period. Cash EBITDA of £89.0 million has been utilised through an investment in working capital of £41.6 million, capex spend of £45.2 million, tax payments of £11.6 million, and loan interest payments of £5.6 million. \n   \n Net debt post-IFRS 16 was £572.3 million. The value comprises the pre-IFRS net cash of £119.5 million and the £454.3 million lease liability, offset by capitalised transaction costs of £1.5 million. The balance increased by £114.3 million in the period, driven by the acquisition consideration as noted above. \n   \n On 23 February 2024, the Group agreed a new $115.0 million term facility agreement for use in relation to the Roberto Coin Inc. acquisition. This facility was drawn down in May 2024 to allow cash settlement of the acquisition consideration on 8 May 2024. \n   \n The Group's maximum amount available under its committed facility was £313.7 million at 27 October 2024. \n   \n \n \n \n \n Facilities held \n \n \n Expiring \n \n \n Amount \n (million) \n \n \n \n \n Multicurrency revolving loan facility - UK SONIA + 1.50% to +2.55% \n \n \n May 2028 \n \n \n £225.0 \n \n \n \n \n $115m term facility - US SOFR +1.50% to 3.25% \n \n \n February 2026 \n \n \n $115.0 \n \n \n \n \n   \n The Group has commenced the process to replace the short term $115.0 million term facility with longer term funding in FY25. Based on latest discussions with lenders the directors have a reasonable expectation that the refinancing will complete. \n   \n £230.0 million of these facilities were drawn down at 27 October 2024. Liquidity headroom (defined as unrestricted cash plus undrawn available facilities) was £177.3 million. \n   \n Cash Flow \n \n \n \n \n Cash Flow (£million) \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n \n \n Adjusted EBITDA \n \n \n 87.3 \n \n \n 94.0 \n \n \n \n \n Share-based payments \n \n \n 1.7 \n \n \n 1.9 \n \n \n \n \n Working capital \n \n \n (41.6) \n \n \n (8.3) \n \n \n \n \n Pension contributions \n \n \n (0.3) \n \n \n (0.3) \n \n \n \n \n Tax \n \n \n (11.6) \n \n \n (23.2) \n \n \n \n \n Cash generated from operating activities \n \n \n 35.5 \n \n \n 64.1 \n \n \n \n \n Maintenance capex \n \n \n (1.6) \n \n \n (1.7) \n \n \n \n \n Interest \n \n \n (5.6) \n \n \n (5.7) \n \n \n \n \n Free cash flow \n \n \n 28.3 \n \n \n 56.7 \n \n \n \n \n Free cash flow conversion \n \n \n 32.4% \n \n \n 60.3% \n \n \n \n \n Expansionary capex \n \n \n (43.6) \n \n \n (47.8) \n \n \n \n \n Acquisitions \n \n \n (106.9) \n \n \n - \n \n \n \n \n Purchase of own shares \n \n \n - \n \n \n (7.2) \n \n \n \n \n Repayment of term loan \n \n \n - \n \n \n (120.0) \n \n \n \n \n Proceeds from multi-currency revolving loan facility \n \n \n 26.4 \n \n \n 70.0 \n \n \n \n \n Proceeds from $115m term loan \n \n \n 91.6 \n \n \n - \n \n \n \n \n Costs directly attributable to raising new loan facility \n \n \n (0.3) \n \n \n (2.2) \n \n \n \n \n Disposal of property, plant and equipment \n \n \n 2.7 \n \n \n - \n \n \n \n \n Exceptional items \n \n \n (2.7) \n \n \n (0.6) \n \n \n \n \n Cash flow \n \n \n (4.5) \n \n \n (51.1) \n \n \n \n \n   \n Free cash flow reduced by £28.4 million to £28.3 million in the period to 27 October 2024, and free cash flow conversion was 32.4% compared to 60.3% in the prior year. \n   \n Cash flow from trading (Adjusted EBITDA, decreased by £6.7 million), and an increased working capital outflow of £33.3 million, was partly offset by reduced tax payments on account of £11.6 million. The working capital movement difference year-on-year is linked to the seasonality of our new US wholesale business, which both increased inventory (£6.2 million) and trade receivables (£10.4 million) as inventory is sold to showrooms to sell ahead of the holiday season, along with the timing of payments across the rest of the Group. We expect this working capital build to unwind in the second half of the year, with free cash flow conversion c.70% for the full year. \n   \n Expansionary cash capex of £43.6 million was lower than the prior year which saw a higher proportion of spend in the first half of the year. \n   \n Acquisition cash spend of £106.9 million was financed by a new $115.0 term loan in addition to the Group's existing facilities. \n   \n Return on Capital Employed (ROCE) \n   \n \n \n \n \n   \n \n \n 26 weeks to \n 27 October 2024 \n \n \n 26 weeks to \n 29 October 2023 \n \n \n \n \n ROCE \n \n \n 16.5% \n \n \n 23.9% \n \n \n \n \n   \n ROCE decreased by 740bps from 23.9% to 16.5% in comparison to last year. This is as a result of LTM Adjusted EBIT decreasing by 15.9% and average capital employed increasing by 21.7% in comparison to the prior period. \n   \n Capital allocation \n   \n The Group has a clear framework of capital allocation and is focused on optimising capital deployment for the benefit of all our stakeholders, with a focus on long-term sustainable growth in the business. It is also important for the Group to maintain financial and operational flexibility to be able to react tactically to opportunities, such as strategic acquisitions, at speed. Our capital allocation framework is as follows: \n   \n 1.     Showroom investments - given the attractive returns from showroom investments, this is our key focus area to allocate capital to \n 2.     Strategic acquisitions - this is a key pillar of our growth strategy, as outlined in our Long Range Plan to FY28.  Acquisitions must deliver return on investment in line with our disciplined financial criteria, within an appropriate timeframe \n 3.     Returns to shareholders - in  the event of surplus capital/cash flow above and beyond the requirements of the business for investment into showrooms or strategic acquisitions, we would consider returns to shareholders either through ordinary dividends or share buy backs, with the appropriate mechanism to be decided at the appropriate time by the Board \n   \n Showroom portfolio \n   \n As at the 27 October 2024, the Group had 217 showrooms, the movement in showroom numbers is included below: \n   \n \n \n \n \n \n \n \n UK multi-brand \n showrooms \n \n \n UK mono-brand \n boutiques \n \n \n Europe mono-brand boutiques \n \n \n Total UK and Europe \n \n \n US multi-brand \n showrooms \n \n \n US mono-brand \n boutiques \n \n \n Total US \n \n \n Total Group \n \n \n \n \n 28 April 2024 \n \n \n 99 \n \n \n 59 \n \n \n 9 \n \n \n 167 \n \n \n 25 \n \n \n 31 \n \n \n 56 \n \n \n 223 \n \n \n \n \n Openings \n \n \n 1 \n \n \n - \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n Acquisitions \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 4 \n \n \n 4 \n \n \n 4 \n \n \n \n \n Closures \n \n \n (3) \n \n \n (1) \n \n \n (6) \n \n \n (10) \n \n \n - \n \n \n (1) \n \n \n (1) \n \n \n (11) \n \n \n \n \n 27 October 2024 \n \n \n 97 \n \n \n 58 \n \n \n 3 \n \n \n 158 \n \n \n 25 \n \n \n 34 \n \n \n 59 \n \n \n 217 \n \n \n \n \n   \n \n   \n \n   \n 1 This is an Alternative Performance Measure and is shown on a pre-IFRS 16 basis. Refer to the Glossary for definition, purpose and reconciliation to statutory measures where relevant \n 2 Refer to the Glossary for definition \n   \n Certain financial data within this announcement has been rounded \n Growth rates are calculated on unrounded numbers \n   \n   \n Risks and uncertainties \n The Group is exposed to several risks and uncertainties in its business which could impact its ability to effectively execute its strategy over the remaining six months of the financial year and cause actual results to differ materially from expected and/or historical results. \n   \n The Board has considered the principal risks and uncertainties for the first half and the remainder of the financial year, and, after careful consideration of the current macroeconomic environment, has determined that the risks presented in the 2024 Annual Report and Accounts, described as follows, remain unchanged: Business strategy execution and development; Key suppliers and supply chain; Client experience and market risks; Colleague talent and capability; Data protection and cyber security; Business interruption; Regulatory and compliance; Economic and political; Brand and reputational damage; Financial and treasury; and Climate change. These are detailed on pages 134 to 139 of the 2024 Annual Report and Accounts, a copy of which is available on the Watches of Switzerland Group PLC (the 'Company') website at www.thewosgroupplc.com . \n   \n   \n WATCHES OF SWITZERLAND GROUP PLC \n UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT \n \n \n \n \n \n \n \n \n \n \n 26 week period ended \n \n \n \n \n \n 26 week period ended \n \n \n \n \n \n \n \n \n \n \n  27 October 2024 \n \n \n \n \n \n 29 October 2023 \n \n \n \n \n \n \n \n Note \n \n \n £m \n \n \n \n \n \n £m \n \n \n \n \n Revenue \n \n \n 2,3 \n \n \n 784.8 \n \n \n   \n \n \n 761.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cost of sales \n \n \n \n \n \n (687.5) \n \n \n \n \n \n (659.9) \n \n \n \n \n Exceptional cost of sales \n \n \n 4 \n \n \n (1.1) \n \n \n \n \n \n - \n \n \n \n \n Gross profit \n \n \n \n \n \n 96.2 \n \n \n \n \n \n 101.5 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Administrative expenses \n \n \n \n \n \n (21.9) \n \n \n \n \n \n (19.8) \n \n \n \n \n Exceptional administrative expenses \n \n \n 4 \n \n \n (0.7) \n \n \n \n \n \n (0.6) \n \n \n \n \n Exceptional impairment of non-current assets \n \n \n 4 \n \n \n (13.4) \n \n \n \n \n \n (3.1) \n \n \n \n \n Operating profit \n \n \n \n \n \n 60.2 \n \n \n \n \n \n 78.0 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Finance costs \n \n \n 5 \n \n \n (19.7) \n \n \n \n \n \n (13.5) \n \n \n \n \n Finance income \n \n \n 5 \n \n \n 1.3 \n \n \n \n \n \n 2.0 \n \n \n \n \n Exceptional finance costs \n \n \n 4,5 \n \n \n (1.3) \n \n \n \n \n \n - \n \n \n \n \n Net finance costs \n \n \n   \n \n \n (19.7) \n \n \n   \n \n \n (11.5) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit before taxation \n \n \n \n \n \n 40.5 \n \n \n \n \n \n 66.5 \n \n \n \n \n Taxation \n \n \n 6 \n \n \n (11.6) \n \n \n \n \n \n (19.5) \n \n \n \n \n Profit for the financial period \n \n \n \n \n \n 28.9 \n \n \n \n \n \n 47.0 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Earnings per share \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic \n \n \n 7 \n \n \n 12.2p \n \n \n \n \n \n 19.8p \n \n \n \n \n Diluted \n \n \n 7 \n \n \n 12.2p \n \n \n \n \n \n 19.7p \n \n \n \n \n   \n   \n   The notes are an integral part of the Interim Condensed Consolidated Financial Statements. \n   \n \n WATCHES OF SWITZERLAND GROUP PLC \n UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME \n   \n                                    \n \n \n \n \n \n \n \n \n \n \n \n \n \n 26 week period ended \n 27 October 2024 \n \n \n \n \n \n 26 week period ended \n 29 October 2023 \n \n \n \n \n \n \n \n Note \n \n \n £m \n \n \n \n \n \n £m \n \n \n \n \n Profit for the financial period \n \n \n \n \n \n \n \n \n 28.9 \n \n \n \n \n \n 47.0 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive income: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that may be reclassified to profit or loss in subsequent periods \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign exchange (loss)/gain on translation of foreign operations \n \n \n \n \n \n \n \n \n (7.9) \n \n \n \n \n \n 6.7 \n \n \n \n \n Related tax movements \n \n \n \n \n \n \n \n \n 0.6 \n \n \n \n \n \n (0.6) \n \n \n \n \n \n \n \n \n \n \n \n \n \n (7.3) \n \n \n \n \n \n 6.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that will not be reclassified to profit or loss in subsequent periods \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Actuarial gain/(loss) on defined benefit pension scheme \n \n \n 12 \n \n \n 0.6 \n \n \n \n \n \n (1.0) \n \n \n \n \n Related tax movements \n \n \n \n \n \n \n \n \n (0.1) \n \n \n \n \n \n 0.3 \n \n \n \n \n \n \n \n \n \n \n \n \n \n 0.5 \n \n \n \n \n \n (0.7) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive (expense)/income for the period net of tax \n \n \n (6.8) \n \n \n \n \n \n 5.4 \n \n \n \n \n Total comprehensive profit for the period net of tax \n \n \n 22.1 \n \n \n \n \n \n 52.4 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n The notes are an integral part of the Interim Condensed Consolidated Financial Statements. \n \n \n   \n WATCHES OF SWITZERLAND GROUP PLC \n UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 27 October 2024 \n \n \n 28 April 2024 \n \n \n 29 October 2023 \n \n \n \n \n \n \n \n \n \n \n Note \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n \n \n \n 8 \n \n \n \n \n \n 229.8 \n \n \n 199.3 \n \n \n 185.2 \n \n \n \n \n Intangible assets \n \n \n \n \n \n 8 \n \n \n \n \n \n 71.5 \n \n \n 16.4 \n \n \n 17.6 \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n 9 \n \n \n \n \n \n 203.5 \n \n \n 191.4 \n \n \n 185.5 \n \n \n \n \n Right-of-use assets \n \n \n \n \n \n 10 \n \n \n \n \n \n 369.0 \n \n \n 381.8 \n \n \n 402.6 \n \n \n \n \n Deferred tax assets \n \n \n \n \n \n \n \n \n \n \n \n 4.4 \n \n \n 0.4 \n \n \n 3.2 \n \n \n \n \n Post-employment benefit asset \n \n \n \n \n \n 12 \n \n \n \n \n \n 0.7 \n \n \n - \n \n \n - \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n \n \n \n \n \n \n 2.1 \n \n \n 2.1 \n \n \n 2.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 881.0 \n \n \n 791.4 \n \n \n 796.2 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n \n \n \n \n \n \n \n \n \n 477.1 \n \n \n 393.3 \n \n \n 399.7 \n \n \n \n \n Current tax asset \n \n \n \n \n \n \n \n \n \n \n \n 5.3 \n \n \n 4.5 \n \n \n 4.2 \n \n \n \n \n Trade and other receivables \n \n \n \n \n \n \n \n \n \n \n \n 57.0 \n \n \n 22.5 \n \n \n 20.2 \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 11 \n \n \n \n \n \n 110.5 \n \n \n 115.7 \n \n \n 86.1 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 649.9 \n \n \n 536.0 \n \n \n 510.2 \n \n \n \n \n Total assets \n \n \n \n \n \n \n \n \n \n \n \n 1,530.9 \n \n \n 1,327.4 \n \n \n 1,306.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n \n \n \n \n \n \n \n \n \n (269.4) \n \n \n (215.4) \n \n \n (249.6) \n \n \n \n \n Current tax liability \n \n \n \n \n \n \n \n \n \n \n \n (2.2) \n \n \n - \n \n \n - \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 10 \n \n \n \n \n \n (58.0) \n \n \n (57.0) \n \n \n (51.5) \n \n \n \n \n Provisions \n \n \n \n \n \n \n \n \n \n \n \n (2.2) \n \n \n (1.9) \n \n \n (1.3) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (331.8) \n \n \n (274.3) \n \n \n (302.4) \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n \n \n \n \n \n \n \n \n \n (0.9) \n \n \n (1.1) \n \n \n (1.1) \n \n \n \n \n Deferred tax liabilities \n \n \n \n \n \n \n \n \n \n \n \n (16.9) \n \n \n (3.4) \n \n \n (3.5) \n \n \n \n \n Lease liabilities \n \n \n \n \n \n 10 \n \n \n \n \n \n (396.3) \n \n \n (403.4) \n \n \n (408.1) \n \n \n \n \n Borrowings \n \n \n \n \n \n 11 \n \n \n \n \n \n (228.5) \n \n \n (113.3) \n \n \n (68.0) \n \n \n \n \n Post-employment benefit obligations \n \n \n \n \n \n 12 \n \n \n \n \n \n - \n \n \n (0.2) \n \n \n (0.6) \n \n \n \n \n Provisions \n \n \n \n \n \n \n \n \n \n \n \n (8.9) \n \n \n (8.7) \n \n \n (6.9) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (651.5) \n \n \n (530.1) \n \n \n (488.2) \n \n \n \n \n Total liabilities \n \n \n \n \n \n \n \n \n \n \n \n (983.3) \n \n \n (804.4) \n \n \n (790.6) \n \n \n \n \n Net assets \n \n \n \n \n \n \n \n \n \n \n \n 547.6 \n \n \n 523.0 \n \n \n 515.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n \n \n \n \n \n \n \n \n \n 3.0 \n \n \n 3.0 \n \n \n 3.0 \n \n \n \n \n Share premium \n \n \n \n \n \n \n \n \n \n \n \n 147.1 \n \n \n 147.1 \n \n \n 147.1 \n \n \n \n \n Merger reserve \n \n \n \n \n \n \n \n \n \n \n \n (2.2) \n \n \n (2.2) \n \n \n (2.2) \n \n \n \n \n Other reserves \n \n \n \n \n \n \n \n \n \n \n \n (21.2) \n \n \n (23.4) \n \n \n (23.4) \n \n \n \n \n Retained earnings \n \n \n \n \n \n \n \n \n \n \n \n 423.8 \n \n \n 394.1 \n \n \n 382.4 \n \n \n \n \n Foreign exchange reserve \n \n \n \n \n \n \n \n \n \n \n \n (2.9) \n \n \n 4.4 \n \n \n 8.9 \n \n \n \n \n Total equity \n \n \n \n \n \n \n \n \n \n \n \n 547.6 \n \n \n 523.0 \n \n \n 515.8 \n \n \n \n \n   \n   \n The notes are an integral part of the Interim Condensed Consolidated Financial Statements. \n \n WATCHES OF SWITZERLAND GROUP PLC \n UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n   \n \n \n \n \n   \n \n \n Share capital \n \n \n Share premium \n \n \n Merger reserve \n \n \n Other reserves \n \n \n Retained earnings \n \n \n Foreign exchange reserve \n \n \n Total equity attributable to owners \n \n \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Balance at 1 May 2023 \n \n \n 3.0 \n \n \n 147.1 \n \n \n (2.2) \n \n \n (18.4) \n \n \n 337.0 \n \n \n 2.8 \n \n \n 469.3 \n \n \n \n \n Profit for the financial period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 47.0 \n \n \n - \n \n \n 47.0 \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (1.0) \n \n \n 6.7 \n \n \n 5.7 \n \n \n \n \n Tax relating to components of other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.3 \n \n \n (0.6) \n \n \n (0.3) \n \n \n \n \n Total comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 46.3 \n \n \n 6.1 \n \n \n 52.4 \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Purchase of own shares* \n \n \n - \n \n \n - \n \n \n - \n \n \n (7.2) \n \n \n - \n \n \n - \n \n \n (7.2) \n \n \n \n \n Share-based payment charge \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.9 \n \n \n - \n \n \n 1.9 \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n 2.2 \n \n \n (2.2) \n \n \n - \n \n \n - \n \n \n \n \n Tax on share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.6) \n \n \n - \n \n \n (0.6) \n \n \n \n \n Balance at 29 October 2023 \n \n \n 3.0 \n \n \n 147.1 \n \n \n (2.2) \n \n \n (23.4) \n \n \n 382.4 \n \n \n 8.9 \n \n \n 515.8 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Balance at 29 April 2024 \n \n \n 3.0 \n \n \n 147.1 \n \n \n (2.2) \n \n \n (23.4) \n \n \n 394.1 \n \n \n 4.4 \n \n \n 523.0 \n \n \n \n \n Profit for the financial period \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 28.9 \n \n \n - \n \n \n 28.9 \n \n \n \n \n Other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.6 \n \n \n (7.9) \n \n \n (7.3) \n \n \n \n \n Tax relating to components of other comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (0.1) \n \n \n 0.6 \n \n \n 0.5 \n \n \n \n \n Total comprehensive income \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 29.4 \n \n \n (7.3) \n \n \n 22.1 \n \n \n \n \n Transactions with owners \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share-based payment charge \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1.7 \n \n \n - \n \n \n 1.7 \n \n \n \n \n Share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n 2.2 \n \n \n (2.2) \n \n \n - \n \n \n - \n \n \n \n \n Tax on share-based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 0.8 \n \n \n - \n \n \n 0.8 \n \n \n \n \n Balance at 27 October 2024 \n \n \n 3.0 \n \n \n 147.1 \n \n \n (2.2) \n \n \n (21.2) \n \n \n 423.8 \n \n \n (2.9) \n \n \n 547.6 \n \n \n \n \n   \n The notes are an integral part of the Interim Condensed Consolidated Financial Statements. \n   \n *During the prior period, the Group purchased £7.2 million of own shares to satisfy management incentives. The shares were purchased by an Employee Benefit Trust which has been set up for this purpose. The Group adopts a 'look-through' approach, which in substance, accounts for the Trust as an extension of the Parent. Own shares are recorded at cost and are deducted from equity. \n \n \n \n \n \n WATCHES OF SWITZERLAND GROUP PLC  UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS \n \n \n \n \n \n \n \n \n \n \n 26 week period ended \n 27 October 2024 \n \n \n \n \n \n 26 week period ended \n 29 October 2023 \n \n \n \n \n \n \n \n Note \n \n \n £m \n \n \n \n \n \n £m \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Profit for the financial period \n \n \n \n \n \n 28.9 \n \n \n \n \n \n 47.0 \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n 9 \n \n \n 19.5 \n \n \n \n \n \n 18.3 \n \n \n \n \n Depreciation of right-of-use assets \n \n \n 10 \n \n \n 27.7 \n \n \n \n \n \n 26.6 \n \n \n \n \n Amortisation of intangible assets \n \n \n 8 \n \n \n 1.5 \n \n \n \n \n \n 1.8 \n \n \n \n \n Exceptional impairment of right-of-use assets \n \n \n 10 \n \n \n 7.2 \n \n \n \n \n \n 1.9 \n \n \n \n \n Exceptional impairment of property, plant and equipment \n \n \n 9 \n \n \n 6.2 \n \n \n \n \n \n 1.2 \n \n \n \n \n Share-based payment charge \n \n \n \n \n \n 1.7 \n \n \n \n \n \n 1.9 \n \n \n \n \n Finance income \n \n \n 5 \n \n \n (1.3) \n \n \n \n \n \n (2.0) \n \n \n \n \n Finance costs \n \n \n 5 \n \n \n 19.7 \n \n \n \n \n \n 13.5 \n \n \n \n \n Gain on lease breaks and surrender \n \n \n \n \n \n (0.8) \n \n \n \n \n \n (0.5) \n \n \n \n \n Lease modifications \n \n \n \n \n \n (0.2) \n \n \n \n \n \n - \n \n \n \n \n Loss on disposal of property, plant and equipment \n \n \n 9 \n \n \n 0.1 \n \n \n \n \n \n 0.1 \n \n \n \n \n Taxation \n \n \n \n \n \n 11.6 \n \n \n \n \n \n 19.5 \n \n \n \n \n Increase in inventories \n \n \n \n \n \n (41.2) \n \n \n \n \n \n (38.7) \n \n \n \n \n Increase in debtors \n \n \n \n \n \n (16.0) \n \n \n \n \n \n (0.8) \n \n \n \n \n Increase in creditors, provisions, and pensions \n \n \n \n \n \n 18.7 \n \n \n \n \n \n 27.5 \n \n \n \n \n Cash generated from operations \n \n \n \n \n \n 83.3 \n \n \n   \n \n \n 117.3 \n \n \n \n \n Pension scheme contributions \n \n \n 12 \n \n \n (0.3) \n \n \n \n \n \n (0.3) \n \n \n \n \n Tax paid \n \n \n \n \n \n (11.6) \n \n \n \n \n \n (23.2) \n \n \n \n \n Total net cash generated from operating activities \n \n \n \n \n \n 71.4 \n \n \n   \n \n \n 93.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from investing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Purchase of property, plant and equipment \n \n \n 9 \n \n \n (42.1) \n \n \n \n \n \n (46.2) \n \n \n \n \n Purchase of intangible assets \n \n \n 8 \n \n \n (1.7) \n \n \n \n \n \n (1.4) \n \n \n \n \n Movement on capital expenditure accrual \n \n \n \n \n \n (1.4) \n \n \n \n \n \n - \n \n \n \n \n Cash outflow from purchase of non-current assets \n \n \n \n \n \n (45.2) \n \n \n   \n \n \n (47.6) \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Disposal of property, plant and equipment \n \n \n 9 \n \n \n 2.7 \n \n \n \n \n \n - \n \n \n \n \n Acquisition of subsidiaries net of cash acquired \n \n \n 15 \n \n \n (106.9) \n \n \n \n \n \n - \n \n \n \n \n Interest received \n \n \n \n \n \n 0.8 \n \n \n \n \n \n - \n \n \n \n \n Total net cash outflow from investing activities \n \n \n \n \n \n (148.6) \n \n \n   \n \n \n (47.6) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Own shares purchased for share schemes \n \n \n   \n \n \n - \n \n \n \n \n \n (7.2) \n \n \n \n \n Repayment of term loan \n \n \n \n \n \n - \n \n \n \n \n \n (120.0) \n \n \n \n \n Proceeds from $115.0m term loan \n \n \n 11 \n \n \n 91.6 \n \n \n \n \n \n - \n \n \n \n \n Proceeds from multicurrency revolving loan facility \n \n \n 11 \n \n \n 26.4 \n \n \n \n \n \n 70.0 \n \n \n \n \n Costs directly attributable to raising new loan facility \n \n \n 11 \n \n \n (0.3) \n \n \n \n \n \n (2.2) \n \n \n \n \n Payment of capital element of leases \n \n \n 10 \n \n \n (26.2) \n \n \n \n \n \n (22.2) \n \n \n \n \n Payment of interest element of leases \n \n \n 10 \n \n \n (12.4) \n \n \n \n \n \n (10.0) \n \n \n \n \n Interest paid \n \n \n \n \n \n (6.4) \n \n \n \n \n \n (5.7) \n \n \n \n \n Net cash inflow/(outflow) from financing activities \n \n \n \n \n \n \n 72.7 \n \n \n   \n \n \n (97.3) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net decrease in cash and cash equivalents \n \n \n \n \n \n (4.5) \n \n \n   \n \n \n (51.1) \n \n \n \n \n Cash and cash equivalents at the beginning of the period \n \n \n \n \n \n 115.7 \n \n \n \n \n \n 136.4 \n \n \n \n \n Exchange (loss)/gain on cash and cash equivalents \n \n \n \n \n \n (0.7) \n \n \n \n \n \n 0.8 \n \n \n \n \n Cash and cash equivalents at the end of period \n \n \n 11 \n \n \n 110.5 \n \n \n   \n \n \n 86.1 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Comprised of: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash at bank and in hand \n \n \n   \n \n \n 90.2 \n \n \n \n \n \n 68.6 \n \n \n \n \n Cash in transit \n \n \n \n \n \n 20.3 \n \n \n \n \n \n 17.5 \n \n \n \n \n Cash and cash equivalents at end of period \n \n \n 11 \n \n \n 110.5 \n \n \n   \n \n \n 86.1 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n WATCHES OF SWITZERLAND GROUP PLC \n NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS \n   \n 1. General information and basis of preparation \n   \n Basis of preparation \n The Group's Interim Condensed Consolidated Financial Statements for the 26 weeks to 27 October 2024 (prior year: 26 weeks to 29 October 2023) were approved by the Board of Directors on 5 December 2024 and have been prepared in accordance with UK adopted International Accounting Standard 34. \n   \n The results for the 26 weeks to 27 October 2024 have been reviewed by Ernst & Young LLP and a copy of their review report is given at the end of this interim report. The condensed set of interim financial statements has not been audited by the auditor and does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. \n   \n The financial information contained in this report is condensed and does not include all of the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's Annual Report and Accounts for the 52 weeks to 28 April 2024 which have been delivered to the Registrar of Companies. The audit report for those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under 498(2) or (3) of the Companies Act 2006. \n   \n The financial statements have been prepared on the historical cost basis except for certain financial instruments, pension assets and liabilities, and share-based payment liabilities which are measured at fair value. Where applicable, disclosures required by paragraph 16A of IAS 34 'Interim financial reporting' are given either in these interim financial statements or in the accompanying Interim Report. \n   \n The Interim Condensed Consolidated Financial Statements are presented in Pounds Sterling (£), which is the Group's presentational currency, and are shown in £millions to one decimal place. \n   \n Going concern \n On 23 February 2024 of the prior year, the Group agreed a new $115.0 million term facility agreement for use in relation to the Roberto Coin Inc. acquisition. This facility was drawn down in the period to allow cash settlement of the acquisition consideration on 8 May 2024. As a result, the going concern assessment has been carried out taking into account both this new facility and the existing £225.0 million multicurrency revolving loan facility in place. \n   \n The key covenant tests attached to the Group's facilities are a measure of net debt to EBITDA, and the Fixed Charge Cover Ratio (FCCR) at each April and October. The facility covenants are on a pre-IFRS 16 basis and exclude share-based payment costs. Net debt to EBITDA is defined as the ratio of total net debt at the reporting date to the last 12 month Adjusted EBITDA. This ratio must not exceed 3. The FCCR is the ratio of Adjusted EBITDA plus rent to the total finance charge and rent for the 12 months to the reporting date. This ratio must exceed 1.6. At 27 October 2024 the Group comfortably satisfied the covenant tests with net debt to EBITDA being less than 3 and the FCCR exceeding 1.6. \n   \n At the balance sheet date, the Group had a total of £313.7 million in available committed facilities, of which £230.0 million was drawn down. Net debt at this date was £119.5 million with liquidity headroom (defined as unrestricted cash plus undrawn available facilities) of £177.3 million. The UK bank facility of £225.0 million is due to expire in May 2028. The new $115.0 million term facility is a 12-month facility with two six-month extension options within the Group's control to bring the expiry date to February 2026. Further detail with regards to covenant tests and liquidity headroom can be found in borrowings note 11 within the Interim Condensed Consolidated Financial Statements. \n   \n In assessing whether the going concern basis of accounting is appropriate, the Directors have reviewed various trading scenarios for the period to 31 December 2025 from the date of this report. These included: \n   \n -       The base case forecast which used the latest FY25 forecast approved by the Board in December 2024 and six-months of the Long Range Plan. These included the following key assumptions: \n -       The more challenging trading environment will continue in FY25 with improvement into FY26 in line with market sentiment \n -       Revenue forecast supported by expected luxury watch supply \n -       Increased cost base in line with macroeconomic environment and environmental targets \n -       Inclusion of Roberto Coin Inc. results at historical levels \n   \n The forecast aligns to the Guidance given in this announcement. Under this forecast, the Group has significant liquidity and complies with all covenant tests to 31 December 2025. Our Guidance reflects current visibility of supply from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions which would only occur if expected to be incremental to the business. \n   \n -       Severe but plausible scenarios of: \n -       20% reduction in revenue against the forecast due to reduced consumer confidence and lower disposable income due to the cost-of-living challenges. This scenario did not include cost mitigations which are given below \n -       The realisation of material risks detailed within the Principal Risks and Uncertainties on pages 134 to 139 (including potential data breaches and non-compliance with laws and regulations), and environmental risks highlighted on pages 114 to 116, of the Group's Annual Report and Accounts for the 52 weeks to 28 April 2024 \n   \n Under these scenarios liquidity would remain positive and the net debt to EBITDA and the FCCR covenants would be complied with. Reverse stress-testing of cashflows during the going concern period was performed. This determined what level of reduced EBITDA and worst case cash flows would result in a breach of the liquidity or covenant tests. The likelihood of this level of reduced EBITDA is considered remote taking into account liquidity and covenant headroom, as well as mitigating actions within management's control (as noted below), and that this would represent a significant reduction in revenue and margin from prior financial years. \n   \n -       Should trading be worse than the outlined severe but plausible scenarios, the Group has the following mitigating actions within management's control: \n - Reduction of marketing spend \n - Reduction in the level of inventory holding and purchases \n - Restructuring of the business with headcount and showroom operations savings \n - Redundancies and pay freezes \n - Reducing the level of planned capex \n   \n The directors also considered whether there were any events or conditions occurring just outside the going concern period that should be considered in their assessment, including whether the going concern period needed to be extended. The scenarios modelled by the directors confirmed the ability, under the base and severe but plausible downsides, for the Group to repay the new $115.0 million term facility at the end of the going concern period. Whilst not considered within the going concern assessment, the Group has commenced the process to replace the short term $115.0 million term facility with longer term funding in FY25. Based on latest discussions with lenders the directors have a reasonable expectation that the refinancing will complete. \n   \n As a result of the above analysis, including potential severe but plausible scenarios and the reverse stress test, the Board believes that the Group is able to adequately manage its financing and principal risks, and that the Group will be able to operate within the level of its facilities and meet the required covenants for the period to 31 December 2025. For this reason, the Board considers it appropriate for the Group to adopt the going concern basis in preparing the Interim Condensed Consolidated Financial Statements. \n   \n Climate change \n In preparing the Interim Condensed Consolidated Financial Statements, management has considered the impact of climate change, particularly in the context of the disclosures included in the 2024 Annual Report within the Strategic Report. These considerations did not have a material impact on the financial reporting judgements and estimates, consistent with the assessment that climate change is not expected to have a significant impact on the Group's going concern assessment to 31 December 2025. \n   \n Accounting policies \n The accounting policies adopted in the preparation of the condensed set of interim financial statements are the same as those set out in the Group's Annual Report and Accounts for the 52 weeks ended 28 April 2024. Following the acquisition of Roberto Coin Inc. in the period a new accounting policy for wholesale revenue has been introduced as shown below. \n   \n Sale of goods - wholesale \n Sales of goods are recognised when a Group entity sells a product to a customer and control of the goods is transferred to the customer. This is either upon delivery to customers, or for consigned inventory, the date of sell through by the customer, provided the sales price is fixed, title has transferred, and collectability of the resulting receivable is reasonably assured. \n   \n Exceptional items \n The Group presents as exceptional items on the face of the Consolidated Income Statement, those material items of income and expense which, because of the nature or the expected infrequency of the events giving rise to them, merit separate presentation to provide a better understanding of the elements of financial performance in the financial period, so as to assess trends in financial performance. Further details on exceptional items are given within note 4. \n   \n Alternative performance measures (APMs) \n The Group has identified certain measures that it believes will assist the understanding of the performance of the business. These APMs are not defined or specified under the requirements of IFRS. \n   \n The Group believes that these APMs, which are not considered to be a substitute for, or superior to, IFRS measures, provide stakeholders with additional useful information on the underlying trends, performance and position of the Group and are consistent with how business performance is measured internally. The Alternative Performance Measures are not defined by IFRS and therefore may not be directly comparable with other companies' Alternative Performance Measures. \n   \n The key APMs that the Group uses include: Net margin, Adjusted EBITDA, Adjusted EBIT and Adjusted EPS.  These APMs are set out in the Glossary including explanations of how they are calculated and how they are reconciled to a statutory measure where relevant. \n   \n The Group makes certain adjustments to the statutory profit measures in order to derive many of these APMs. The Group's policy is to exclude items that are considered non-underlying and exceptional due to their size, nature or incidence, and are not considered to be part of the normal operating costs of the Group. Treatment as an adjusting item provides stakeholders with additional useful information to assess the year-on-year trading performance of the Group but should not be considered in isolation of statutory measures. \n   \n Major sources of estimation uncertainty and judgement \n The preparation of consolidated financial information requires the Group to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Actual results may differ from these estimates. The critical accounting judgements and major sources of estimation uncertainty remain consistent with those presented in the Group's Annual Report and Accounts for the 52 weeks ended 28 April 2024 unless otherwise stated. \n   \n 2. Segment reporting \n   \n The key Group performance measures are Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (Adjusted EBITDA) and Adjusted Earnings Before Interest and Tax (Adjusted EBIT), both shown pre-exceptional items, as detailed below. The segment reporting is disclosed on a pre-IFRS 16 basis reflecting how results are reported to the Chief Operating Decision Makers (CODMs) and how they are measured for the purposes of covenant testing. Both Adjusted EBITDA and Adjusted EBIT are APMs and these measures provide stakeholders with additional useful information to assess the year-on-year trading performance of the Group but should not be considered in isolation of statutory measures. \n   \n Adjusted EBITDA represents profit for the period before finance costs, finance income, taxation, depreciation, amortisation, and exceptional items presented in the Group's Interim Condensed Consolidated Income Statement (consisting of exceptional administrative expenses, exceptional finance costs and exceptional impairment) on a pre-IFRS 16 basis. \n   \n Wholesale revenue is reported separately to the CODM and the results are aggregated into the US reporting segment. This is reflective of the management structure in place. As such, following the acquisition of Roberto Coin Inc. in the period, wholesale revenue has been reported separately. The total revenue and profit before tax of Roberto Coin Inc. forms part of the US segment below and has been disclosed in note 15 to these accounts. \n   \n   \n \n \n \n \n \n \n \n 26 week period ended 27 October 2024 \n \n \n \n \n \n \n \n UK and \n \n \n US \n \n \n Corporate \n \n \n Total \n \n \n \n \n \n \n \n Europe \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Revenue \n \n \n 429.9 \n \n \n 354.9 \n \n \n - \n \n \n 784.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Net margin \n \n \n 153.6 \n \n \n 130.7 \n \n \n - \n \n \n 284.3 \n \n \n \n \n Less: \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Showroom costs \n \n \n (82.8) \n \n \n (58.8) \n \n \n - \n \n \n (141.6) \n \n \n \n \n Overheads \n \n \n (21.0) \n \n \n (26.9) \n \n \n (2.7) \n \n \n (50.6) \n \n \n \n \n Showroom opening and closing costs \n \n \n (1.7) \n \n \n (3.1) \n \n \n - \n \n \n (4.8) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Adjusted EBITDA \n \n \n 48.1 \n \n \n 41.9 \n \n \n (2.7) \n \n \n 87.3 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Depreciation, amortisation and loss on disposal of assets \n \n \n (13.4) \n \n \n (7.0) \n \n \n (0.7) \n \n \n (21.1) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Segment profit/(loss)* \n \n \n 34.7 \n \n \n 34.9 \n \n \n (3.4) \n \n \n 66.2 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n IFRS 16 adjustments \n \n \n \n \n \n \n \n \n   \n \n \n 9.2 \n \n \n \n \n Net finance costs (note 5) \n \n \n \n \n \n \n \n \n   \n \n \n (18.4) \n \n \n \n \n Exceptional cost of sales (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (1.1) \n \n \n \n \n Exceptional impairment of assets (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (13.4) \n \n \n \n \n Exceptional administrative costs (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (0.7) \n \n \n \n \n Exceptional finance costs (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (1.3) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Profit before taxation for the financial period \n \n \n \n \n \n \n \n \n   \n \n \n 40.5 \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n * Segment profit/(loss) is defined as being Earnings Before Interest, Tax, exceptional items and IFRS 16 adjustments (Adjusted EBIT). \n   \n \n \n \n \n \n \n \n 26 week period ended 29 October 2023 \n \n \n \n \n \n \n \n UK and \n \n \n US \n \n \n Corporate \n \n \n Total \n \n \n \n \n \n \n \n Europe \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Revenue \n \n \n 433.6 \n \n \n 327.8 \n \n \n - \n \n \n 761.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Net margin \n \n \n 157.8 \n \n \n 122.3 \n \n \n - \n \n \n 280.1 \n \n \n \n \n Less: \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Showroom costs \n \n \n (79.4) \n \n \n (57.8) \n \n \n - \n \n \n (137.2) \n \n \n \n \n Overheads \n \n \n (23.3) \n \n \n (18.7) \n \n \n (1.4) \n \n \n (43.4) \n \n \n \n \n Showroom opening and closing costs \n \n \n (4.0) \n \n \n (1.5) \n \n \n - \n \n \n (5.5) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Adjusted EBITDA \n \n \n 51.1 \n \n \n 44.3 \n \n \n (1.4) \n \n \n 94.0 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Depreciation, amortisation and loss on disposal of assets \n \n \n (13.0) \n \n \n (6.9) \n \n \n (0.7) \n \n \n (20.6) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Segment profit/(loss) \n \n \n 38.1 \n \n \n 37.4 \n \n \n (2.1) \n \n \n 73.4 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n IFRS 16 adjustments \n \n \n \n \n \n \n \n \n   \n \n \n 8.3 \n \n \n \n \n Net other finance costs (note 5) \n \n \n \n \n \n \n \n \n   \n \n \n (11.5) \n \n \n \n \n Exceptional impairment of assets (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (3.1) \n \n \n \n \n Exceptional administrative costs (note 4) \n \n \n \n \n \n \n \n \n   \n \n \n (0.6) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Profit before taxation for the financial period \n \n \n \n \n \n \n \n \n   \n \n \n 66.5 \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Entity-wide revenue disclosures \n \n \n \n \n \n \n \n 26 week period ended \n 27 October 2024 \n \n \n 26 week period ended \n 29 October 2023 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n UK and Europe \n \n \n \n \n \n \n \n \n \n \n Luxury watches \n \n \n 367.3 \n \n \n 369.0 \n \n \n \n \n Luxury jewellery \n \n \n 29.4 \n \n \n 28.3 \n \n \n \n \n Services/other \n \n \n 33.2 \n \n \n 36.3 \n \n \n \n \n Total \n \n \n 429.9 \n \n \n 433.6 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n US \n \n \n \n \n \n \n \n \n \n \n Luxury watches \n \n \n 281.6 \n \n \n 301.1 \n \n \n \n \n Luxury jewellery \n \n \n 16.2 \n \n \n 18.7 \n \n \n \n \n Luxury jewellery wholesale \n \n \n 51.8 \n \n \n - \n \n \n \n \n Eliminations \n \n \n (2.0) \n \n \n - \n \n \n \n \n Services/other \n \n \n 7.3 \n \n \n 8.0 \n \n \n \n \n Total \n \n \n 354.9 \n \n \n 327.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Group \n \n \n \n \n \n \n \n \n \n \n Luxury watches \n \n \n 648.9 \n \n \n 670.1 \n \n \n \n \n Luxury jewellery \n \n \n 45.6 \n \n \n 47.0 \n \n \n \n \n Luxury jewellery wholesale \n \n \n 51.8 \n \n \n - \n \n \n \n \n Eliminations \n \n \n (2.0) \n \n \n - \n \n \n \n \n Services/other \n \n \n 40.5 \n \n \n 44.3 \n \n \n \n \n Total \n \n \n 784.8 \n \n \n 761.4 \n \n \n \n \n \n \n \n \n \n \n   \n 'Services/other' consists of the sale of fashion and classic watches and jewellery, the sale of gifts, servicing, repairs and insurance. \n   \n Information regarding geographical areas, including revenue from external customers is disclosed above. \n   \n No single customer accounted for more than 10% of revenue in any of the financial periods noted above. \n   \n Entity-wide non-current assets disclosures \n \n \n \n \n \n \n \n 27 October 2024 \n \n \n 29 October 2023 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n UK and Europe \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 137.8 \n \n \n 121.6 \n \n \n \n \n Intangible assets \n \n \n 5.4 \n \n \n 5.3 \n \n \n \n \n Property, plant and equipment \n \n \n 111.3 \n \n \n 109.6 \n \n \n \n \n Right-of-use assets \n \n \n 233.8 \n \n \n 272.2 \n \n \n \n \n Total \n \n \n 488.3 \n \n \n 508.7 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n US \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 92.0 \n \n \n 63.6 \n \n \n \n \n Intangible assets \n \n \n 66.1 \n \n \n 12.3 \n \n \n \n \n Property, plant and equipment \n \n \n 81.6 \n \n \n 65.0 \n \n \n \n \n Right-of-use assets \n \n \n 129.7 \n \n \n 124.4 \n \n \n \n \n Total \n \n \n 369.4 \n \n \n 265.3 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Corporate \n \n \n   \n \n \n   \n \n \n \n \n Property, plant and equipment \n \n \n 10.6 \n \n \n 10.9 \n \n \n \n \n Right-of-use assets \n \n \n 5.5 \n \n \n 6.0 \n \n \n \n \n Total \n \n \n 16.1 \n \n \n 16.9 \n \n \n \n \n   \n Group \n \n \n \n \n \n \n \n \n \n \n Goodwill \n \n \n 229.8 \n \n \n 185.2 \n \n \n \n \n Intangible assets \n \n \n 71.5 \n \n \n 17.6 \n \n \n \n \n Property, plant and equipment \n \n \n 203.5 \n \n \n 185.5 \n \n \n \n \n Right-of-use assets \n \n \n 369.0 \n \n \n 402.6 \n \n \n \n \n Total \n \n \n 873.8 \n \n \n 790.9 \n \n \n \n \n   \n 3. Revenue \n   \n The Group's disaggregated revenue recognised under contracts with customers relates to the following categories and operating segments. \n   \n \n \n \n \n \n \n \n 26 week period ended 27 October 2024 \n \n \n \n \n \n \n \n Retail sale of goods \n \n \n Wholesale sale of goods \n \n \n Eliminations \n \n \n Rendering of services* \n \n \n Total \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n UK and Europe \n \n \n 416.6 \n \n \n - \n \n \n - \n \n \n 13.3 \n \n \n 429.9 \n \n \n \n \n US \n \n \n 298.9 \n \n \n 51.8 \n \n \n (2.0) \n \n \n 6.2 \n \n \n 354.9 \n \n \n \n \n Total \n \n \n 715.5 \n \n \n 51.8 \n \n \n (2.0) \n \n \n 19.5 \n \n \n 784.8 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n * The decrease in UK and Europe rendering of service revenue, was due to the prior period including the gross amounts collected from the sale of insurance policies. The disclosure for the 26 week period ended 27 October 2024 has been updated to show only the commission earned. The change is not material and therefore the prior year balances have not been restated. \n   \n \n \n \n \n \n \n \n 26 week period ended 29 October 2023 \n \n \n \n \n \n \n \n Retail sale of goods \n \n \n Wholesale sale of goods \n \n \n Eliminations \n \n \n Rendering of services* \n \n \n Total \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n UK and Europe \n \n \n 415.2 \n \n \n - \n \n \n - \n \n \n 18.4 \n \n \n 433.6 \n \n \n \n \n US \n \n \n 321.4 \n \n \n - \n \n \n - \n \n \n 6.4 \n \n \n 327.8 \n \n \n \n \n Total \n \n \n 736.6 \n \n \n - \n \n \n - \n \n \n 24.8 \n \n \n 761.4 \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n 4. Exceptional items \n   \n Exceptional items are those that in the judgement of the Directors need to be disclosed by virtue of their size, nature or incidence, in order to draw the attention of the reader and to show the underlying business performance of the Group.  Such items are included within the Income Statement caption to which they relate and are separately disclosed on the face of the Interim Condensed Consolidated Income Statement. \n   \n \n \n \n \n \n \n \n 26 week period ended \n 27 October 2024 \n \n \n 26 week period ended \n 29 October 2023 \n \n \n \n \n \n \n \n £m \n \n \n £m \n \n \n \n \n Exceptional cost of sales \n \n \n   \n \n \n   \n \n \n \n \n Rolex Old Bond Street (IFRS 16 depreciation) (i) \n \n \n (1.1) \n \n \n - \n \n \n \n \n Total exceptional cost of sales \n \n \n (1.1) \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Exceptional administrative costs \n \n \n \n \n \n \n \n \n \n \n Showroom impairment (ii) \n \n \n \n \n \n \n \n \n \n \n     Impairment of property, plant and equipment \n \n \n (6.2) \n \n \n (1.2) \n \n \n \n \n     Impairment of right-of-use assets \n \n \n (7.2) \n \n \n (1.9) \n \n \n \n \n Professional and legal expenses on actual and prospective business acquisitions (iii) \n \n \n (0.7) \n \n \n (0.6) \n \n \n \n \n Total exceptional administrative costs \n \n \n (14.1) \n \n \n (3.7) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Exceptional finance costs \n \n \n   \n \n \n   \n \n \n \n \n Rolex Old Bond Street (IFRS 16 interest) (i) \n \n \n (1.3) \n \n \n - \n \n \n \n \n Total exceptional finance costs \n \n \n (1.3) \n \n \n - \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total exceptional items \n \n \n (16.5) \n \n \n (3.7) \n \n \n \n \n   \n   \n (i)    Rolex Old Bond Street \n A new 7,200 sq. ft showroom is being built in partnership with Rolex. This new flagship will be our largest Rolex showroom and reflects the importance of the London market and the special relevance of London to the history of Rolex. The cost shown here is the IFRS 16 depreciation and interest costs whilst the showroom is being constructed. They are deemed to be exceptional in nature given that this unique proposition results in a project size and complexity significantly outside of a standard build, coupled with documented project delays outside of the Group's control. The showroom is due to open at the end of FY25. \n   \n (ii)   Showroom impairment \n The current macroeconomic environment, high interest rates and inflationary landscape gave rise to indicators of impairment in the current period. Consequently, discounted cashflows were performed on all Cash Generating Units (CGUs) with indicators of impairment. This resulted in a non-cash im...

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