Blokker Holding B.V. has its registered office and principal place of business in Amsterdam.
Blokker Holding B.V. is a retail group operating retail chains in the Household, Toys and Living sectors, along with wholesalers.
In accordance with the Articles of Association, the financial year ends on the Saturday of the fourth week of the calendar year. The 2014/2015 financial year included 52 weeks (versus 52 weeks in 2013/2014). The last day of the 2014/15 financial year was 24 January 2015 and that of the previous financial year was 25 January 2014.
GENERAL ACCOUNTING PRINCIPLES
The financial statements are prepared in accordance with the provisions of Part 9 Book 2 of the Dutch Civil Code. The valuation principles described below relate to both the company financial statements and the consolidated financial statements.
The general accounting principles for the valuation of assets and liabilities, as well as for determining the results, are based on the purchase or manufacturing price. Assets and liabilities are shown at nominal value unless stated otherwise.
For the preparation of the income statement in the company financial statements, the exemption provided for in Section 2:402 of the Dutch Civil Code is applied.
The financial statements are drawn up in thousands of euros.
USE OF ESTIMATES
In preparing the financial statements, the company’s management must, in accordance with generally accepted accounting principles, make specific estimates and assumptions which help determine the amount stated in the financial statements. Actual results may vary from these estimates.
The estimates and underlying assumptions are assessed on an ongoing basis. Revised estimates are recognised during the period in which the estimate is being revised and during future periods for which the revision has implications.
Assets and liabilities in foreign currency are converted at the exchange rates prevailing on the balance sheet date. Transactions in foreign currency are converted at the exchange rates prevailing on the date of the transaction. The resulting exchange rate differences are shown in the income statement.
Financial statements of foreign associates which are not denominated in euros are converted into euros at the exchange rate prevailing at the end of the reporting period. The effect of the recalculation of the assets and liabilities of associates at the beginning of the year at the exchange rates at the end of the year is recognised in shareholders’ equity.
Blokker Holding B.V. and the associates, also being the group companies over which Blokker Holding B.V. has primary control or which are centrally managed, are consolidated. Financial data of Blokker Holding B.V., along with those of the group companies, are recognised based on the integrated consolidation method. Debts, liabilities and transactions between the group companies have been eliminated in the Group Financial Statements. Inter-company results included in the available stocks on the balance sheet date are eliminated for the purpose of the preparation of the consolidated financial statements.
A legal reserve is created for the retained earnings from associates which are not freely accessible to the company.
The data of the companies included in the consolidation as at 24 January 2015 were filed with the Chamber of Commerce.
The results of acquired companies are included in the consolidation from the date from which Blokker Holding BV bears the risk and expense for these companies.
In principle, the exemption provided for in Section 2:403(1) of the Dutch Civil Code is applied for the individual financial statements of the Dutch associates.
In 2014, Blokker Holding B.V. transferred a single share in the share capital of Casa Holding B.V. to an affiliated company outside the Blokker Holding B.V. group. A shareholder agreement was subsequently entered into in which it was agreed that Blokker Holding B.V. would transfer managerial control over Casa Holding B.V. and its affiliates with effect from the 2014/15 financial year. The following terms are agreed with the counterparty:
- managerial control over Casa Holding B.V. and its associates will revert to Blokker Holding B.V. if there are any changes in the counterparty’s management.
- The equity capital of Casa Holding B.V. at that time will be equal to its equity capital at the end of the 2013/14 financial year (i.e. EUR 269.0 million).
- Blokker Holding B.V. will be entitled in the intervening period to an annual fee equivalent to 1% of its equity capital at year-end 2013/14, which will be payable at such time as the managerial control is reverted.
The amount for 2014/15 of the annual fee (EUR 2.7 million) is recognised as income from associates. With effect from the 2014/15 financial year, the associate Casa Holding B.V. is recognised at net asset value as at 26 January 2014 until such time as the managerial control is transferred back to Blokker Holding B.V.
In 2014, Blokker Holding B.V. reached agreement regarding the sale, effective 30 June 2014, of the total business of Tuincentrum Overvecht, consisting of Groenblok B.V. and its associates.
The financial details of the above-mentioned companies are no longer included in the consolidated financial statements from the time it is no longer possible to exercise managerial control over the company.
For more information, we refer to the paragraph ‘Deconsolidation of business activities‘ on the page ’Notes to the consolidated income statement’.
PRINCIPLES FOR THE VALUATION OF ASSETS AND LIABILITIES
Intangible assets are valued at cost, less depreciation calculated on a straight-line basis, based on expected economic life (5 years) and, if applicable, including impairments. In the year of investment, depreciation is calculated on a pro rata basis.
Goodwill paid on the acquisition of a company, by means of shares or through acquisition of the operating activities and the associated assets and liabilities, is directly deducted from shareholders’ equity in accordance with the statutory provisions of Part 9 Book 2 of the Dutch Civil Code.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are valued at cost, less straight-line depreciation, based on the expected economic life of the asset, and less impairment where applicable. In the year of investment, depreciation is calculated on a pro rata basis. Land is not depreciated.
Insofar as property, plant and equipment have been acquired through the acquisition of the companies concerned, these are valued at the current cost on acquisition of the shares.
In determining depreciation, the following expected economic lives are assumed:
FINANCIAL FIXED ASSETS
Associates over which significant control can be exercised are shown at net asset value. This is calculated by valuing the assets, provisions and debts and calculating the result on the basis of the valuation principles applicable to the parent company.
Capital interests in other companies, over which no significant control can be exercised, are valued at cost. At the moment of losing the managerial control by Blokker Holding B.V., the net asset value will be the valuation principle for Casa Holding B.V.
Dividend income is recognised in the income statement in the year of receipt.
The remaining financial fixed assets are shown at nominal value, less a provision for the risk of irrecoverable debts where necessary.
Stocks of trade items are valued at cost or the lower market value, plus additional procurement costs. If necessary, a provision for obsolescence is deducted from the value of the stocks.
At initial recognition, the receivables are stated at their fair value and consequently at amortised cost, which equals their nominal value less such provisions deemed necessary with respect to the risk of irrecoverable debts.
CASH AND CASH EQUIVALENTS
Unless stated otherwise, cash and cash equivalents are freely accessible to the company.
Provisions are formed for all legally enforceable or constructive obligations resulting from an event prior to the balance sheet date, the settlement of which is likely to require an outflow of funds and the extent of which can be reliably estimated.
The provision for deferred tax liabilities involves the calculation of the temporary differences between valuation principles for commercial and tax purposes. Deferred tax assets with equal durations are deducted if these relate to the same tax entity.
The provision for restructuring is shown at nominal value and is intended to cover costs related to reorganisations of parts of the group and onerous contracts.
The provision for warranty obligations is shown at the estimated costs expected as a result of current guarantee obligations as at the balance sheet date relating to goods and services delivered.
The provision for jubilee benefits is based on long-service policies applicable as at the balance sheet date, taking account of the staff turnover risk, future changes in wage costs and the discount rate.
The provision for legal proceedings concerns ongoing disputes, claims and lawsuits.
The company has contracted a pension scheme for its employees, which qualifies as a defined-contribution plan. This means that contributions payable during the financial year are recognised as costs. Factors such as wage changes, price indexation and investment returns on fund assets could lead to future adjustments in the annual contributions to the pension fund. In the event of a deficit or surplus of the sectoral pension fund, the company has no obligations other than the payment of future higher or lower contributions.
Non-current liabilities include debts with a remaining term of more than one year. Payments due in the short term (within one year) are shown in current liabilities
Current liabilities have an expected term of one year maximum, unless otherwise stated in the notes.
Profit is determined as the difference between net revenue and all related costs allocated to the reporting year. Costs are determined in accordance with the above valuation principles.
Profits are recognised in the year in which the revenue is realised. Losses are shown in the year in which these are foreseeable. Other income and expenses are recognised in the reporting period to which they relate.
Net revenue comprises the sales of the retail chains to consumers at the market value (exclusive of VAT) as well as other deliveries of goods and services to customers, less discounts and VAT.
COST OF SALES
The cost of sales is the purchase value plus the costs directly and indirectly related to procurement. These costs also include movements in the provision for the risk of obsolescence.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses comprise interest received (or receivable) and paid (or payable).
Corporation tax is calculated on the basis of the commercial result according to the consolidated income statement, at the applicable rate, taking account of tax facilities.
CASH FLOW STATEMENT
The cash flow statement is prepared on the basis of the indirect method, where the financial income and expenses and profit tax are recognised under ‘Cash flow from operating activities’.
The effect of deconsolidation of group companies, including any changes in assets and liabilities, is recognised as cash flow from investment activities.
The classification of the comparative figures is adjusted where necessary for the purposes of comparison.