Audited Statutory Accounts of Toys "R" Us Limited

EX-99.1 2 dex991.htm AUDITED STATUTORY ACCOUNTS OF TOYS "R" US LIMITED Audited Statutory Accounts of Toys "R" Us Limited

Exhibit 99.1

TOYS “R” US LIMITED: ACCOUNTS

PROFIT AND LOSS ACCOUNT

For the 52 weeks ended 2 February 2002


	2002 (52 weeks) £’000		2001 (53 weeks) £’000
TURNOVER	488,304		430,622
Cost of sales	348,277		302,842

Gross profit	140,027		127,780
Other operating expenses	116,468		114,537

OPERATING PROFIT	23,559		13,243
Profit on disposal of property interests	899		—
Other income	1,447		1,712
Interest payable	(10,365	)	(9,735	)

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION	15,540		5,220
Taxation charge	5,650		2,204

PROFIT FOR THE FINANCIAL PERIOD	9,890		3,016
Dividends - ordinary dividends paid on equity shares	—		—

PROFIT RETAINED FOR THE FINANCIAL PERIOD	9,890		3,016

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

There are no recognised gains or losses other than the profit of £9,890,000 in the 52 week period ended 2 February 2002 (£3,016,000 in the 53 week period ended 3 February 2001).

BALANCE SHEET

At 2 February 2002


	2002 £’000		2001 £’000
FIXED ASSETS
Tangible assets	207,965		64,423
CURRENT ASSETS
Stock	40,459		41,647
Debtors	47,596		25,499
Cash at bank and in hand	45,959		46,668

	134,014		113,814
CREDITORS: amounts falling due within one year	(252,373	)	(98,745	)

NET CURRENT ASSETS/(LIABILITIES)	(118,359	)	15,069

TOTAL ASSETS LESS CURRENT LIABILITIES	89,606		79,492
CREDITORS: amounts falling due after more than one year	(55,000	)	(62,188	)
PROVISION FOR LIABILITIES AND CHARGES	(14,681	)	(7,269	)

TOTAL ASSETS LESS LIABILITIES	19,925		10,035

CAPITAL AND RESERVES
Called up share capital	100		100
Profit and loss account	19,825		9,935

EQUITY SHAREHOLDERS’ FUNDS	19,925		10,035

Approved by the Board on 5/8/02

Directors

NOTES TO THE ACCOUNTS

At 2 February 2002

1.	ACCOUNTING POLICIES (CONTINUED)

Deferred taxation (continued)

•

Deferred taxation assets are recognised only to the extent that it is more likely than not that there will be suitable taxable profits from which the underlying timing differences can be deducted.

Deferred taxation is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted at the balance sheet date.

Leases

Rentals paid under operating leases are charged to income on a straight line basis over the term of the lease.

Pension costs

Pension costs continue to be recognised under SSAP 24 on a systematic basis so that the costs of providing retirement benefits to employees are evenly matched, so far as possible, to the service lives of the employees concerned. Any excess or deficiency of the actuarial value of assets over the actuarial value of liabilities of the pension scheme is allocated over the average remaining service lives of current employees.

Provisions for liabilities and charges

Onerous contract costs represent amounts for properties which are surplus to the company’s trading requirements. Provisions are charged to operating profits, and recorded within provisions for liabilities and charges, when properties become surplus to normal requirements. The provision charged represents the best estimate of unavoidable future costs. These provisions are reviewed annually.

2.	TURNOVER

Turnover comprises the value of goods sold to customers in the United Kingdom, exclusive of VAT. All turnover relates to continuing retail activities.

3.	OTHER OPERATING EXPENSES


	2002 (52 weeks) £’000	2001 (53 weeks) £’000
Retail and distribution costs	100,600	101,085
Administrative expenses	15,868	13,452

	116,468	114,537

NOTES TO THE ACCOUNTS

At 2 February 2002

4.	OTHER INCOME


	2002 (52 weeks) £’000	2001 (53 weeks) £’000
Bank interest	642	896
Interest receivable on intercompany loan	805	816

	1,447	1,712

5.	INTEREST PAYABLE


	2002 (52 weeks) £’000	2001 (53 weeks) £’000
Bank loans and overdrafts	131	8
Interest payable on group loans	10,234	9,727

	10,365	9,735

6.	PROFIT ON ORDINARY ACTIVITIES


	2002 (52 weeks) £’000	2001 (53 weeks) £’000
Profit for the period is stated after charging:
Leasehold property rents - external	16,890	15,741
- fellow subsidiary	2,891	11,673
Depreciation of tangible fixed assets	7,843	5,163
Hire of assets under operating leases	1,354	1,484
Auditors’ remuneration - audit services	60	55
- non audit services	38	51
Royalty payments	14,638	12,898

7.	TAXATION

Tax on profit on ordinary activities


	2002 (52 weeks) £’000		2001 (52 weeks) £’000
Current tax:
UK corporation tax on profits for the period	3,953		7
Group relief payable	643		1,025
Adjustments in respect of previous periods	(8	)	(1	)

	4,588		1,031
Deferred Tax:
Originating and reversal of timing differences	1,062		1,173

	1,062		1,173

	5,650		2,204

Profit and Loss Account

for the 52 weeks ended 1 February 2003


	*2003* (52 weeks) £’000		*2002* (52 weeks) £’000
*Turnover*	535,796		488,304
Cost of sales	380,664		348,277

Gross profit	155,132		140,027
Other operating expenses	131,128		116,468

*Operating profit*	24,004		23,559
(Loss)/profit on disposal of property interests	(1,047	)	899

	22,957		24,458
Other income	1,694		1,447
Interest payable	(13,671	)	(10,365	)

*Profit on ordinary activities before taxation*	10,980		15,540
Taxation charge	4,130		5,650

*Profit for the financial period*	6,850		9,890

Statement of Total Recognised Gains and Losses

There are no recognised gains or losses other than the profit of £6,850,000 in the 52 week period ended 1 February 2003 (£9,890,000 in the 52 week period ended 2 February 2002).

Balance Sheet

at 1 February 2003


	2003 £’000		2002 £’000
*Fixed assets*
Tangible assets	207,507		207,965
*Current assets*
Stock	46,218		40,459
Debtors	34,233		47,596
Cash at bank and in hand	76,897		45,959

	157,348		134,014
*Creditors*: amounts falling due within one year	(268,479	)	(252,373	)

*Net current assets/(liabilities)*	(111,131	)	(118,359	)

*Total assets less current liabilities*	96,376		89,606
*Creditors*: amounts falling due after more than one year	(55,000	)	(55,000	)
*Provision for liabilities and charges*	(14,601	)	(14,681	)

*Total assets less liabilities*	26,775		19,925

*Capital and reserves*
Called up share capital	100		100
Profit and loss account	26,675		19,825

*Equity shareholders’ funds*	26,775		19,925

Approved by the Board on 6/6/03

Directors

Notes to the Financial Statements

at 1 February 2003

1.	Accounting policies (continued)

Deferred taxation (continued)

Leases

Rentals paid under operating leases are charged to income on a straight line basis over the term of the lease.

Pension costs

Provisions for liabilities and charges

2.	Turnover

Turnover comprises the value of goods sold to customers in the United Kingdom, exclusive of VAT. All turnover relates to continuing retail activities.

3.	Other operating expenses


	*2003* (52 weeks) £’000	*2002* (52 weeks) £’000
Retail and distribution costs	114,447	100,600
Administrative expenses	16,681	15,868

	131,128	116,468

Notes to the Financial Statements

at 1 February 2003

4.	Operating Profit


	*2003* (52 weeks) £’000	*2002* (52 weeks) £’000
Operating profit for the period is stated after charging:
Leasehold property rents - external	17,990	16,890
- fellow subsidiary	2,891	2,891
Depreciation of tangible fixed assets	8,744	7,843
Hire of assets under operating leases	1,437	1,354
Auditors’ remuneration - audit services	62	60
- non audit services	22	38
Royalty payments	16,074	14,638

Profit and loss account

for the 52 weeks from 2 February 2003 to 31 January 2004


	Period from 2 Feb 03 to 31 Jan 04 £000		Period from 3 Feb 02 to 1 Feb 03 £000
*Turnover*	521,697		535,796
Cost of sales	357,051		365,420

*Gross profit*	164,646		170,376

Distribution costs	138,363		129,691
Administrative expenses	14,489		16,681

*Operating profit*	11,794		24,004
Loss on disposal of tangible fixed assets	—		(1,047	)

	11,794		22,957

Interest receivable	1,931		1,694
Interest payable	(12,532	)	(13,671	)

	(10,601	)	(11,977	)

*Profit on ordinary activities before taxation*	1,193		10,980
Tax on profit on ordinary activities	1,538		4,130

*(Loss)/profit retained for the financial 52 weeks*	(345	)	6,850

Statement of total recognised gains and losses

There are no recognised gains or losses other than the loss of £345,000 attributable to the shareholders for the 52 weeks ended 31 January 2004 (2003 - profit of £6,850,000).

Balance sheet

at 31 January 2004


	31 Jan 04 £000		1 Feb 03 £000
*Fixed* assets
Tangible assets	201,571		207,507

*Current assets*
Stocks	41,416		46,218
Debtors	36,110		34,233
Cash at bank	87,648		76,897

	165,174		157,348
*Creditors*: amounts falling due within one year	270,579		268,479

*Net current liabilities*	(105,405	)	(111,131	)

*Total assets less current liabilities*	96,166		96,376
*Creditors*: amounts falling due after more than one year	55,000		55,000
*Provisions for liabilities and charges*
Provisions for liabilities and charges	14,736		14,601

	26,430		26,775

*Capital and reserves*
Called up share capital	100		100
Profit and loss account	26,330		26,675

*Equity shareholders funds*	26,430		26,775

3/08/2004

Notes to the financial statements

at 31 January 2004

1.	Accounting policies (continued)

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exceptions:

•

Provision is made for gains on disposal of fixed assets that have been rolled over into replacement assets only where, at the balance sheet date, there is a commitment to dispose of the replacement assets with no likely subsequent roll over.

•

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

Operating lease agreements

Rentals paid under operating leases are charged to income on a straight-line basis over the term of the lease.

Pension costs

The company operates both a defined benefit pension scheme and a defined contribution pension scheme. Contributions to the defined benefit pension scheme continue to be recognised under SSAP 24 on a systematic basis so that the costs of providing retirement benefits to employees are evenly matched, so far as possible, to the service lives of the employees concerned. Any excess or deficiency of the actuarial value of assets over the actuarial value of liabilities of the pension scheme is allocated over the average remaining service lives of current employees.

Contributions to the defined contribution pension scheme are expensed as they become payable.

2.	Turnover

Turnover comprises the value of goods sold to customers in the United Kingdom, exclusive of VAT. All turnover relates to continuing retail activities.

The directors consider the retailing of toys and other children related products to be the only line of business and the United Kingdom to be the only geographic location in which the company operates. Hence no further disclosure is required with respect to SSAP 25 Segmental Reporting.

3.	Operating profit

This is stated after charging/(crediting):


	Period from 2 Feb 03 to 31 Jan 04 £000	Period from 3 Feb 02 to 1 Feb 03 £000
Auditors’ remuneration - audit services	74	62
- non-audit services	57	22

	131	84

Depreciation of owned fixed assets	9,401	8,744

Operating lease rentals - land and buildings	21,944	20,881
- plant and machinery	1,505	1,437

Royalty payments	15,782	16,074

4.	Exceptional items


	Period from 2 Feb 03 to 31 Jan 04 £000	Period from 3 Feb 02 to 1 Feb 03 £000
Loss on disposal of fixed assets	—	1,047

5.	Staff costs


	Period from 2 Feb 03 to 31 Jan 04 £000	Period from 3 Feb 02 to 1 Feb 03 £000
Wages and salaries	42,885	44,716
Social security costs	3,230	3,311
Other pension costs (note 21)	945	817

	47,060	48,844

The monthly average number of employees during the 52 weeks was as follows:


	Period from 2 Feb 03 to 31 Jan 04 No.	Period from 3 Feb 02 to 1 Feb 03 No.
Distribution staff	4,599	4,588
Administrative staff	329	326

	4,928	4,914

Profit and loss account

for the 52 weeks from 1 February 2004 to 29 January 2005


	Period from 1 Feb 04 to 29 Jan 05 £000		(Restated) Period from 2 Feb 03 to 31 Jan 04 £000
*Turnover*	502,030		496,676
Cost of sales	328,449		332,030

*Gross profit*	173,581		164,646
Distribution costs	141,188		138,363
Administrative expenses	16,800		14,489

*Operating profit*	15,593		11,794
Profit on disposal of tangible fixed assets	3,958		—

	19,551		11,794

Interest receivable	2,830		1,931
Interest payable and similar charges	(13,704	)	(12,532	)

	(10,874	)	(10,601	)

*Profit on ordinary activities before taxation*	8,677		1,193
Tax on profit on ordinary activities	2,416		1,538

*Profit retained/(loss) for the financial 52 weeks*	6,261		(345	)

Statement of total recognised gains and losses

There are no recognised gains or losses other than the profit of £6,261,000 attributable to the shareholders for the 52 weeks ended 29 January 2005 (2004 - loss of £345,000).

Balance Sheet

at 29 January 2005


	29 Jan 05 £000		31 Jan 04 £000
*Fixed assets*
Tangible assets	200,752		201,571

*Current assets*
Stocks	46,384		41,416
Debtors	30,107		36,110
Cash at bank	1,294		87,648

	77,785		165,174
*Creditors*: amounts falling due within one year	174,662		270,579

*Net current liabilities*	(96,877	)	(105,405	)

*Total assets less current liabilities*	103,875		96,166
*Creditors*: amounts falling due after more than one year	55,000		55,000
*Provisions for liabilities and charges*	16,184		14,736

	32,691		26,430

*Capital and reserves*
Called up share capital	100		100
Profit and loss account	32,591		26,330

*Equity shareholders’ funds*	32,691		26,430

Approved by the Board on 15/08/05

Notes to the financial statements

at 29 January 2005

1.	Accounting policies (continued)

Deferred taxation

•

Deferred tax assets are recognised only to the extent that the directors’ consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Foreign currencies

Operating lease agreements

Rentals paid under operating leases are charged to income on a straight line basis over the term of the lease.

Pension costs

Contributions to the defined contribution pension scheme are expensed as they become payable.

2.	Turnover

Turnover comprises the value of goods sold to customers in the United Kingdom, exclusive of VAT. All turnover relates to continuing retail activities.

The directors’ consider the retailing of toys and other children related products to be the only line of business and the United Kingdom to be the only geographic location in which the company operates. Hence no further disclosure is required with respect to SSAP 25 Segmental Reporting.

Notes to the financial statements

at 29 January 2005

3.	Operating profit

This is stated after charging/(crediting):


	Period from 1 Feb 04 to 29 Jan 05 *£000*	Period from 2 Feb 03 to 31 Jan 04 *£000*
Auditors’ remuneration - audit services	98	74
- non-audit services	13	57

Depreciation of owned fixed assets	10,027	9,401

Operating lease rentals - land and buildings	25,076	21,944
- plant and machinery	1,627	1,505

Royalty payments	15,352	15,782

4.	Exceptional items


	Period from 1 Feb 04 to 29 Jan 05 *£000*	Period from 2 Feb 03 to 31 Jan 04 *£000*
Profit on disposal of fixed assets	3,958	—

5.	Staff costs


	Period from 1 Feb 04 to 29 Jan 05 *£000*	Period from 2 Feb 03 to 31 Jan 04 *£000*
Wages and salaries	47,370	42,885
Social security costs	3,786	3,230
Other pension costs (note 20)	1,109	945

	52,265	47,060

The monthly average number of employees during the 52 weeks was as follows:


	Period from 1 Feb 04 to 29 Jan 05 £000 No.	Period from 2 Feb 03 to 31 Jan 04 £000 No.
Distribution staff	4,464	4,599
Administrative staff	337	329

	4,801	4,928

Notes to the financial statements

at 29 January 2005

6.	Directors’ emoluments


	Period from 1 Feb 04 to 29 Jan 05 *£000*	Period from 2 Feb 03 to 31 Jan 04 *£000*
Emoluments	1,505	960

Value of company pension contributions to money purchase schemes	101	98