Alternative Performance Measures (APMs) In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (APMs), also termed non-GAAP measures, of historical or future financial performance, position or cash flows other than those defined or specified under International Financial Reporting Standards (IFRS). These measures are not defined by IFRS and therefore may not be directly comparable with other companies’ APMs, including those used by other retailers. APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements. Closest equivalent IFRS Reconciling APM measure to IFRS measure Definition and purpose Adjusted Basic A reconciliation of Adjusted basic earnings per share earnings per earnings per adjusted basic represents profit after tax attributable to share share earnings per share the owners of the parent, before the is included in the impact of exceptional items, FFVR, Financial Review related tax items and tax on prior year (Section 4) and items, divided by the weighted average note 8 of the number of shares in issue during the condensed period. financial statements Adjusted Effective tax A reconciliation to Adjusted effective tax rate is calculated effective tax rate the overall tax rate as continuing income tax expense rate is set out in the excluding tax on exceptional items and Financial Review adjustments in respect of prior years and (Section 4) the impact of changes in tax rates on deferred tax, divided by continuing profit before taxation excluding exceptional items. The exclusion of items relating to prior years and those not in the ordinary course of business helps provide a better indication of the Group's ongoing tax rate. Adjusted Profit before A reconciliation of Adjusted pre-tax profit is used to report profit taxation adjusted pre-tax the performance of the business at a profit is set out in level including both the benefits of the Financial our transformation programme and the Review (Section 4) associated costs. This is stated before and the exceptional items and FFVR. The consolidated exclusion of exceptional items and FFVR income statement helps provide an indication of the of the condensed Group's ongoing business performance. financial statements Constant No direct Not applicable Constant currency changes in total currency equivalent sales, LFL sales, gross margin and retail profit reflect the year on year movements after translating the prior year comparatives at the current year’s average exchange rates. These are presented to eliminate the effects of exchange rate fluctuations on the reported results.
Alternative Performance Measures (APMs) In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (APMs), also termed non-GAAP measures, of historical or future financial performance, position or cash flows other than those defined or specified under International Financial Reporting Standards (IFRS). These measures are not defined by IFRS and therefore may not be directly comparable with other companies’ APMs, including those used by other retailers. APMs should be considered in addition to, and are not intended to be a substitute for, or superior to, IFRS measurements. APM Closest equivalent IFRS measure Reconciling to IFRS measure Definition and purpose Adjusted earnings per share Basic earnings per share A reconciliation of adjusted basic earnings per share is included in the Financial Review (Section 4) and note 8 of the condensed financial statements Adjusted basic earnings per share represents profit after tax attributable to the owners of the parent, before the impact of exceptional items, FFVR, related tax items and tax on prior year items, divided by the weighted average number of shares in issue during the period. Adjusted effective tax rate Effective tax rate A reconciliation to the overall tax rate is set out in the Financial Review (Section 4) Adjusted effective tax rate is calculated as continuing income tax expense excluding tax on exceptional items and adjustments in respect of prior years and the impact of changes in tax rates on deferred tax, divided by continuing profit before taxation excluding exceptional items. The exclusion of items relating to prior years and those not in the ordinary course of business helps provide a better indication of the Group's ongoing tax rate. Adjusted profit Profit before taxation A reconciliation of adjusted pre-tax profit is set out in the Financial Review (Section 4) and the consolidated income statement of the condensed financial statements Adjusted pre-tax profit is used to report the performance of the business at a level including both the benefits of our transformation programme and the associated costs. This is stated before exceptional items and FFVR. The exclusion of exceptional items and FFVR helps provide an indication of the Group's ongoing business performance. Constant currency No direct equivalent Not applicable Constant currency changes in total sales, LFL sales, gross margin and retail profit reflect the year on year movements after translating the prior year comparatives at the current year’s average exchange rates. These are presented to eliminate the effects of exchange rate fluctuations on the reported results.
2018_interim_results.docx