Annual Report & Accounts

Welcome

The world we live in is changing rapidly, undeniably now more than ever with the recent global spread of coronavirus and its far-reaching and uncertain consequences. But right now, there’s never been a greater time for us to be a better and different kind of business. Our Founder, John Spedan Lewis, established the Partnership to be a force for good in society and this is what we need to continue. That’s why we are focused on reinvesting most of our profits, to make a difference to people's lives and help create positive social change.

Chairman's-statement

Chairman’s statement

I am honoured to be the new Chairman of the John Lewis Partnership. The Partnership is the biggest employee-owned business in the UK, and amongst the biggest in the world. Through our two brands - John Lewis and Waitrose  - we have been serving customers for over 155 years.

OUR YEAR IN NUMBERS

As expected, trading remained challenging throughout the year. At full year, profit before Partnership Bonus, tax, exceptional items and IFRS 16 was 23% lower than last year. However, our balance sheet and liquidity position remained strong and we improved our Debt Ratio. We continue to review our plans to secure our long-term future and the Partnership Board is taking a series of measures to preserve liquidity.

£122.6m PROFIT BEFORE PARTNERSHIP BONUS, TAX, EXCEPTIONAL ITEMS AND IFRS 16

Our Partnership profit before Bonus, tax, exceptional items and IFRS 16 was £122.6m, a weaker performance than we had hoped for, driven by significant operating profit decline in John Lewis, which was partly offset by operating profit growth in Waitrose, and lower Group costs.

 

£107.4m net income EXCEPTIONAL ITEMS

Exceptional income totalled £107.4m with £30.6m charge in Waitrose, £101.0m charge in John Lewis and £239.0m income in Group.

PROFIT PER AVERAGE FULL-TIME EQUIVALENT PARTNER £3,500

In line with the reduced Partnership profit, our profit per average full-time equivalent Partner has also reduced to £3,500. However last year's number has not been restated to include the effect of IFRS 16, the latest accounting standard for leases, which accounts for £900 of the £1,500 decline.

 

£1.4bn LIQUIDITY

We have maintained a strong liquidity position at over £1.4bn, despite repaying our £275m bond in April 2019.

3.9X

Our Debt Ratio improved to 3.9 times, the lowest level since January 2014 and we aim to reduce it to around three times cash flow within four years.

RETURN ON INVESTED CAPITAL (ROIC) 5.8%

The Partnership’s ROIC declined by 1.5 percentage points, with 0.8 of this due to the impact of adopting IFRS 16, the latest accounting standard for leases, with the remaining 0.7 being driven by the fall in the Partnership’s operating profit.

WHAT MAKES US DIFFERENT

FURTHER INFORMATION