Annual Report & Accounts

Welcome

These are challenging times in retail. In the midst of this uncertainty, our Partners continue to be key. With the rebranding to John Lewis & Partners and Waitrose & Partners, we made a bold statement about the John Lewis Partnership and our future. More than just a logo change, it’s celebrating a truth that’s always been part of our unique business. That the people who work here are more than employees, we’re Partners and that’s why we’re continuing to put people at the heart of our business.

We’re proud of the difference we make for our customers, our suppliers and our communities, because for us, it’s personal.

Chairman's statement

2018/19 was a challenging year in many respects, internally and externally. We anticipated it would be and said in March 2018, and again in June, September and January 2019, that we expected profits to be substantially lower. They were. Profits ended 45% lower than last year and the Board decided to pay a Partnership Bonus of 3% - the lowest since 1953.

OUR YEAR IN NUMBERS

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Profit before Partnership Bonus, tax and exceptional items

£160.0m

2017/18:  £292.8m

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Debt ratio

4.3x

2017/18:  4.3x

 

 

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Return on Invested Capital (ROIC)

7.3%

2017/18:  9.1%
 

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Profit per average Full Time Equivalent (FTE) Partner

£5,000

2017/18:  £6,900
 

One of our priorities is to reduce our Debt Ratio to around three times Adjusted cash flow within five years. It has remained at 4.3 times this year, despite lower profits, as our total net debts have reduced by £401.3m to £2,682.2m, mainly due to the reduction in the accounting pension deficit of £218.4m (net of deferred tax) and strong cash generation.

Our ROIC, 7.3% (2017/18: 9.1%) and Profit per average FTE, £5,000 (2017/18: £6,900) measures are significantly lower than 2017/18, reflecting our substantially lower profits. The actions we are taking are aimed at restoring ROIC and Profit per average FTE Partner to levels that will support increased investment and improved Bonus levels over the medium term, while maintaining a robust balance sheet position.

OUR PARTNERSHIP BUSINESS MODEL

EMPOWERING PARTNERS

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We're more than employees, we're Partners, which makes the Partnership different and, we believe is a better way of doing business. Partners are at the heart of our business and we empower them through learning, purpose, reward, judgement, leadership and wellbeing. Our ownership model is central to everything we do. For us, it's personal and we share responsibilities and rewards through:

INSPIRING CUSTOMERS

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We work to build brand trust and loyalty and provide customers with increasingly personalised, unique and exclusive products and services that are authentic and inspiring. And because we're Partners, we're invested to build that trust and loyalty.

OPERATIONAL EXCELLENCE

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We aim to make sufficient profit from our trading operations to sustain our commercial vitality. This allows us to reinvest in our Partners, our customer proposition and continue to support our suppliers and enrich society.

DOWNLOADS

Further information from our Annual Report & Accounts can be found at: