John Lewis Partnership Annual Report and Accounts 2015

Annual Report and Accounts 2015

John Lewis Partnership plc

119

Listing on the London Stock Exchange (LSE)

Both the Partnership and its immediate subsidiary, John Lewis plc, have Standard Listings on the LSE. Many years ago, both companies issued Cumulative Preference Stocks. This is a form of share with a right to receive fixed rate of dividend payment per annum, which cumulates if not paid annually. It has to be paid before any dividend to ordinary shareholders. The Cumulative Preference Stocks issued by John Lewis Partnership plc carry no rights of ownership of the Partnership and nor do they carry any voting rights, unless the preference dividend is six months in arrears or unless a resolution is proposed which directly affects the interest of these shares as a class. The Cumulative Preference Stocks are treated in the balance sheet as a long-term liability of the business and not as equity share capital. Further details are provided in note 17.

CREST Settlement

During the year under review the Articles of Association of the Company were amended to facilitate the mechanics of holding and trading in the Cumulative Preference Stocks (Preference Shares) in order to comply with the Company’s legal obligations under EU Regulation 909/2014 on Central Securities Depositories (CSD) Regulation. This means the Preference Shares can be held on an uncertificated basis and are capable of transfer in de-materialised form through CREST subject to the provisions of the CSD Regulation. The Partnership Board believes that adopting the measures necessary to accommodate settlement and holding of the Preference Shares in de-materialised form may be of assistance in establishing a matching facility to facilitate liquidity of the Preference Shares in future. Should steps be taken to establish such a facility, an announcement will be made at that time.

Dividends

No dividends were paid on the Deferred Ordinary Shares (2014: nil). As the ultimate holding company of the Partnership, John Lewis Partnership Trust Limited (the Trust Company) holds 612,000 Deferred Ordinary Shares in trust for the benefit of employees of John Lewis plc and certain other companies (the Employing Companies). Each year, the Partnership resolves not to recommend or to declare a dividend upon the Deferred Ordinary Shares but to recommend to the Employing Companies to pay to their eligible employees Partnership Bonus, being an amount at least as great as the amount available for distribution should a dividend have been declared.

Dividends on Preference shares were £222,000 (2014: £222,000). Dividends on SIP Shares (issued in connection with BonusSave) were £1,268,000 (2014: £1,712,000).

Going concern

After reviewing the Partnership’s operating budgets, business plans, investment plans, financing arrangements and material risks, the Directors consider that the Partnership has adequate financial resources to continue in operation for the foreseeable future.

A full description of the Partnership’s business activities, financial position, cash flows, liquidity position, committed facilities and borrowing position, together with the factors likely to affect its future development and performance, are set out in the Strategic Report on page 1 to 81.

The Partnership has, at the date of this report, sufficient financing available for its estimated requirements for the foreseeable future and, accordingly, the Directors are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements and are not aware of any material uncertainties to the Company’s ability to continue to do so over a period of at least 12 months from the date of approval of this report.

Events after the balance sheet date

Since 31 January 2015, the asset classified as held for sale has been sold for an amount in excess of carrying value. See note 14.

Auditors and disclosure of information to auditors

The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to continue in office, and a resolution that they be reappointed will be proposed at the Annual General Meeting, together with a resolution to authorise the Directors to determine the auditors’ remuneration.

The Directors of the Partnership Board have taken all the necessary steps to make themselves aware of any information needed by the Partnership’s auditors in connection with preparing their report and to establish that the auditors are aware of that information. As far as the Directors are aware, there is no such information of which the Partnership’s auditors have not been apprised.

Annual General Meeting

The Annual General Meeting will be held at 2.30pm on Thursday 4 June 2015 at Longstock House, Leckford, Stockbridge, Hampshire SO20 6JF.

Approved by the Directors and signed on behalf of the Partnership Board

Keith Hubber General Counsel and Company Secretary

16 April 2015

Introduction

Partnership difference

Principles

Strategy

Performance

Governance

Financial statements

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