2011

Cash flow and ratios

“EBITDA: € 51.4 million”

Despite active capital management, working capital used in continuing operations increased in 2011. This was the net effect of expansion, the acquisition of Jones Bootmaker, higher inventories at year-end because of lower sales, and lower payables.

 

Capital expenditure for continuing operations rose in 2011 by € 7.7 million to € 22.1 million, mainly owing to expansion. It nevertheless stayed comfortably below the operational cash flow of € 37.6 million from continuing operations.

“Capital expenditure € 22.1
  million”

 

Capital expenditure1 (in € million)  
 2011 2010
New stores8.92.6
Existing stores7.48.5
Logistics and information systems4.52.1
Other1.31.2
Total22.114.4

1 Continuing operations (2010: excluding BelCompany, GP Décors and Halfords).
Cash flow statement (in € million)  
     2011 2010
Cash and cash equivalents at January 1     15.6   25.0
- Cash flow from operating activities   +37.6+ 62.7
- Cash flow from investing activities   - 46.9- 14.4
- Cash flow from financing activities   - 95.8- 54.4
Total cash flow from discontinued operations+ 108.2   -3.3
Change in cash and cash equivalents    + 3.1  - 9.4
Cash and cash equivalents at December 311     18.7  15.6

1 Excluding € 6.7 million cash and cash equivalents of discontinued operations.
  Cash and cash equivalents according to cash flow statement in Financial
  Statements 2011 amount to € 25.5 million.
 

The net cash inflow from continuing operations amounted to € 37.6 million in 2011 (2010: € 62.7 million). The reduction in cash inflow was mainly the effect of lower EBITDA (operating result plus depreciation and amortisation) of € 51.4 million (2010: € 65.4 million) and an increase of € 13.4 million in working capital. By
contrast, 2010 saw a reduction in working capital of € 5.9 million. 

Including the acquisition of Jones Bootmaker (€ 24.8 million), the net cash outflow for investing activities was € 46.9 million in 2011, compared with € 14.4 million in 2010. Despite adverse market conditions, we invested more in continuing operations (+ € 7.7 million). 

 

The net cash outflow on financing activities amounted to € 95.8 million (2010: € 54.4 million). Of this figure, € 73.9 million (2010: € 41.0 million) represents loan repayments, while the remainder (€ 21.9 million) relates to dividend (€ 8.6 million),
repurchase of shares (€ 8.0 million) and interest payments. These other amounts are € 8.5 million above the previous year, mainly the result of a higher dividend distribution (+ € 4.5 million) and € 4.7 million more for the repurchase of shares. 

The cash inflow in 2011 relating to discontinued operations (BelCompany, Halfords and GP Décors) came to + € 108.2 million, compared with a cash outflow in 2010 of - € 3.3 million. The cash flow figure includes the proceeds from the sale of BelCompany.

“Debt position improves by € 61.7
  million”

Net debt improved further in 2011 by € 61.7 million (2010: € 33.9 million), falling to € 39.5 million (2010: € 101.2 million).

 

Net debt (in € million)  
 20112010
January 1101.2135.1
Change in net debt-61.7-33.9
December 31 39.5101.2