Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Profit and Loss Information

v3.20.2
Profit and Loss Information
6 Months Ended
Jul. 31, 2020
Profit And Loss Information  
Profit and Loss Information
6 Profit and loss information

 

(a)    Revenue from continuing operations

 

   

6 months to

31 July 2020

NZ $000’s

    6 months to
31 July 2019
NZ $000’s
 
             
Gross revenue     35,144       47,809  
Rebates     (580 )     (5,715 )
      34,564       42,094  
                 
Sale of goods                
- Retail     14,863       19,000  
- Wholesale     2,735       8,414  
- E-commerce     16,966       14,680  
      34,564       42,094  

 

Disaggregation of revenue

 

The Group derives its revenue from the transfer of goods at a point in time. The table above provides a breakdown of revenue by major business line. The categories above depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic data. As disclosed in Note 7, the Group has three operating segments.

 

(b)    Significant items

 

The loss for the half year was derived after (charging) / crediting the following items that are unusual and of significance because of their size, nature and incidence:

 

   

6 months to

31 July 2020

NZ $000’s

    6 months to
31 July 2019
NZ $000’s
 
Other income                
- Government subsides     3,162       -  
                 
Finance expenses                
- Interest expense on external borrowings     (958 )     (496 )
- Interest expense on shareholder loans     -       (255 )
- Interest expense on convertible loan notes     (2,763 )     (274 )
- Interest expense on leases     (713 )     (857 )
- Amortisation of loan set up costs     276       (348 )
      (4,158 )     (2,230 )
                 
Other foreign currency gains/(losses)                
- Fair value gain on foreign exchange contracts     -       729  
- Net foreign exchange gains/(losses)     1,914       224  
      1,914       953  
Impairment expense                
- Impairment of intangible assets     (1,253 )     (6,647 )
- Impairment of property, plant and equipment     (341 )     -  
- Impairment of right-of-use assets     (1,221 )     -  
- Impairment of software     -       (202 )
      (2,815 )     (6,849 )

 

   

6 months to

31 July 2020

NZ $000’s

    6 months to
31 July 2019
NZ $000’s
 
Brand transition, restructure and transaction income/(expense)                
- Brand transition expenses     2,343       (258 )
- Restructure expenses     (38 )     -  
- Transaction expenses     (10,631 )     (5,588 )
      (8,326 )     (5,846 )

 

(c) Income tax expense

 

Income tax expense/(benefits) is recognised based on the parent company’s effective annual income tax rate expected for the full financial year. The annual tax rate used for the half year to 31 July 2020 is 28% (6 months to 31 July 2019: 30%). The Group has assessed future forecast profits and concluded that not enough criteria have been satisfied to recognise any deferred tax assets at the period ended 31 July 2020. Unused tax losses do not have an expiry date.

 

The major components of tax expense/(benefit) comprise:

 

   

6 months to

31 July 2020

NZ $000’s

    6 months to
31 July 2019
NZ $000’s
 
Current tax                
Current tax on losses for the period     2       9  
Adjustment for current tax on prior periods     39       51  
Total current tax expense     41       60  
                 
Deferred tax                
Decrease in deferred tax asset     -       701  
Income tax benefit for continuing operations     41       761  
                 
Reconciliation of income tax to accounting loss:                
Loss before income tax     (18,413 )     (27,968 )
Tax at New Zealand tax rate 28%     (5,156 )     (7,831 )
                 
Tax effect of:                
- permanent differences     1,581       75  
- adjustments in respect of current tax or prior periods     37       76  
- effects of different tax rates of subsidiaries operating in other jurisdictions     (3 )     (641 )
- deferred tax assets relating to the current period not recognised     3,602       7,727  
- other     (20 )     1,355  
Income tax expense     41       761  

 

The Group has tax losses of $179.7m (year ended 31 January 2020: $166.9m) that have not been recognised in the financial statements. The ability to use these losses to offset future profits is subject to shareholder and business continuity criteria in each local tax jurisdiction. During the comparative period, the Group de-recognised all deferred tax assets on timing differences carried forward from prior years, amounting to $701,000 after accounting for exchange rate differences.