Cast The following information has been extracted from Cast s financial statements for the year ended 31 Accounting policies (extract only) Vendor Agreements Some of our vendors provide us with cash payments as rebates and reimbursements for cooperative marketing arrangements. We generally account for these as a reduction of the cost prices for our purchases and so we offset these receipts against the cost of purchased inventory. Vendor rebates are typically awarded in response to us reaching minimum purchase thresholds. We evaluate the likelihood of reaching purchase thresholds using past experience and current year forecasts. When volume rebates can be reasonably estimated, we record a portion of the rebate as we make progress towards the purchase threshold. The amounts that we accrue in this way are shown under trade receivables until such time as the payment is received or the balance is written off. When we receive direct reimbursements for costs incurred by us in advertising a vendor s products we offset the amounts received against Distribution in our consolidated statement of profit or loss. Segmental reporting The group s operating segmental format is by line of business, based on the company s management and internal reporting structure. Goodwill Goodwill arising from the acquisition of subsidiaries is shown under intangible non-current assets. We evaluate goodwill annually for impairment. Software Software costs that meet the recognition criteria set out in IAS 38 Intangible assets are capitalised as intangible non-current assets. These costs are amortised over the shorter of their estimated useful lives and the life of the licence agreement.
Consolidated Statement of Profit or Loss for the year ended 31 2014 Notes Revenue [1] 2,985 2,687 Cost of sales (2,090) (1,777) Gross profit 895 910 Distribution costs (197) (192) Administration expenses (174) (171) Operating profit [1,2] 524 547 Finance costs (1) (1) Profit before taxation 523 546 Taxation [4] (128) (126) Profit for the year 395 420 Consolidated Statement of Changes in Equity for the year ended 31 Share capital Share premium Retained earnings Total Opening balance 15 18 634 667 Profit for year - - 395 395 Dividend - - (350) (350) Closing balance 15 18 679 712
Consolidated Statement of Financial Position as at 31 2014 Notes ASSETS Non-current assets Intangible [5] 90 86 Property, plant and equipment [6] 387 349 Current assets Inventories 297 256 Trade receivables 117 105 Cash and short term deposits 243 238 657 599 TOTAL ASSETS 1,134 1,034 EQUITY Share capital 15 15 Share premium 18 18 Retained earnings 679 634 712 667 LIABILITIES Non-current liabilities Deferred tax 8 6 Debenture loans 100 100 108 106 Current liabilities Trade payables 190 138 Current tax 124 123 314 261 TOTAL EQUITY + LIABILITIES 1,134 1,034
Consolidated Statement of Cash flows For the year ended 31 2014 Cash flows from operating activities Cash receipts from customers 2,973 2,498 Cash paid to suppliers and employees (2,347) (2,053) Cash generated from operations 626 445 Income taxes paid (125) (123) Net cash from operating activities 501 322 Cash flows from investing activities Purchase of property, plant and equipment (112) (28) Proceeds from disposal of property, plant and equipment 2 12 Purchase of non-current intangibles (35) - Net cash used in investing activities (145) (16) Cash flows from financing activities Interest paid (1) (1) Dividend paid (350) (325) Net cash from financing activities (351) (326) Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 5 (20) 238 258 243 238
Note 1 - Segmental analysis The is not subject to the requirements of IFRS 8 Operating Segments, but the directors have provided the following analyses to assist the shareholders. Revenue Film and music Toys Cosmetics Books Clothing Electronics Total $m 776 507 328 448 328 598 2,985 Operating profit Film and music Toys Cosmetics Books Clothing Electronics Total $m 173 58 94 52 47 100 524 Note 2 - Operating profit Operating profit is stated after charging: Depreciation of property, plant and equipment 63 54 Loss on disposal of property, plant and equipment 9 1 Amortisation of intangible non-current assets 22 19 Impairment of intangible non-current assets 9 - Cost of inventory recognised as an expense 1,489 1,248 Operating leases 22 18 External auditor s remuneration 1 1
Note 3 Staff costs including directors remuneration Number of employees Number of employees By activity: Distribution 311 349 Information technology 113 110 Administration 82 86 506 545 Employee costs, including directors remuneration: Wages and salaries 9 11 Pension costs 4 3 Total 13 14 Aggregate compensation paid to board members, including pension costs: Total 2 2 Note 4 Tax expense Tax on current year s profit 124 123 Adjustment in respect of prior year 2 4 126 127 Increase/(decrease) in deferred tax 2 (1) Tax on profit 128 126
Note 5 Intangible non-current assets Goodwill Software Total $m Cost at 1 April 2014 70 40 110 Additions - 35 35 Impairment (10) (10) Cost at 31 70 65 135 Accumulated amortisation at 1 April 2014-24 24 Charge for year - 22 22 Impairment - (1) (1) Accumulated amortisation at 31-45 45 Net book value at 31 70 20 90 Net book value at 1 April 2014 70 16 86 Note 6 - Property, plant and equipment Property Plant and equipment Total $m Cost at 1 April 2014 120 271 391 Additions 11 101 112 Disposals - (14) (14) Cost at 31 131 358 489 Accumulated depreciation at 1 April 2014 18 24 42 Charge for year 3 60 63 Disposals - (3) (3) Accumulated depreciation at 31 21 81 102 Net book value at 31 110 277 387 Net book value at 1 April 2014 102 247 349