Whilst COVID-19 has constrained our short-term progress, it is important that we do not lose sight of the core retail standards and commercial: Financial Analysis Report, DBS, Ireland

Whilst COVID-19 has constrained our short-term progress, it is important that we do not lose sight of the core retail standards and commercial disciplines which have underpinned our longer-term growth to date. JD has a market-leading multi-channel proposition that maximizes its consumer relevance and reaches by creating and then maintaining a deep emotional connection with its consumers who see JD as an authoritative and trustworthy source of style and fashion inspiration with influences drawn from both sport and music.

This proposition remains extremely robust and, in that regard, I am pleased to report that it was another year of significant progress for the Group with global revenues increasing by 30% to £6,110.8 million and the headline profit before tax and exceptional items increasing by a further 24% to £438.8 million. This represented another record result for the Group.

This result also reflects the application of IFRS 16 ‘Leases’ for the first time. The Group has adopted the modified retrospective transition approach to this new accounting standard with the result of 2 February 2019, which reflected the application of IAS 17 ‘Leases’, not requiring restatement. On a consistent accounting basis, the proforma headline profit before tax and exceptional items to 1 February 2020 under IAS 17 ‘Leases’ would have been £465.6 million being £110.4 million higher than last year and £26.8 million higher than that reported under IFRS 16 ‘Leases’.

A major driver in the improved result is the inclusion, for the first time, of a full-year contribution from the combined Finish Line and JD businesses in the United States. We are pleased with our progress here with these businesses delivering an operating profit of £94.2 million.