An ual


Annua Reporta In a nutshell


The Directors’ Report is a document produced by the Board of Directors under the requirements of UK company law, which details the state of the company and its compliance with a set of financial, accounting and corporate social responsibility regulations.


There are no voting rights attached to the Preference Shares 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.


At the Annual General Meeting held on 4 June 2015, the Partnership was authorised to make market purchases of up to £3,696,995 in nominal amounts of the 5% Cumulative Preference stock and up to £500,000 in nominal amounts of the 7.5% Cumulative Preference stock, representing the remaining stock in issue. No purchases were made during the year, and shareholders will be invited to renew the authority at the Annual General Meeting, as detailed on page 162. The Partnership Board continues to consider that these stocks are an inefficient form of fixed interest finance and that it would be advantageous to the Partnership to acquire them over time as suitable opportunities arise.


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 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 5.5.


Dividends No dividends were paid on the Deferred Ordinary Shares (2015: nil). 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 subsidiaries. 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.


DivideDividends on Preference shares were £222,000 (2015: £222,000). Dividends on SIP Shares (issued in connection with BonusSave) were £1,165,000 (2015: £1,268,000).


000). D dends on IP Share onusSave


Going concern The Directors, after reviewing the Partnership’s operating budgets, investment plans and financing arrangements, consider that the Company and Partnership have sufficient financing available at the date of this report. Accordingly, the Directors are satisfied that it is appropriate to adopt the going concern basis in preparing the Annual Report and Accounts.


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 pages 1 to 57.


Viability Statement Assessing the


Partnership’s viability The UK Corporate Governance Code requires Directors to make a statement in the Annual Report and Accounts with regards to the longer term viability of the Partnership.


In making their assessment, the Directors considered the Partnership’s risk profile and the principal risks and uncertainties, as described on pages 55 to 57, and also made reference to the Partnership’s current strategy, as described on pages 22 to 23.


The Directors’ assessment considered the Partnership’s revenue, profit, net assets and cash position, which were subject to robust downside stress testing based on a number of challenging but plausible scenarios occurring based on the Partnership’s seven principal risks crystallising. In addition, the outcome of the scenarios was assessed against the Partnership’s financial covenants.


The Partnership’s viability assessment period


The Directors have assessed the Partnership’s viability over the three-year period to January 2019. This is considered an appropriate assessment period as a much higher degree of judgement is required beyond three years, given the pace of development of the retail industry, and its inherent risks.


renc shareswere £222,000 Theprospe t The prospectsof th


Based on the assessment performed and the Partnership’s current position, the Directors ha


have a reasonable expectation that the hipwill b


Events after the balance


sheet date Since 30 January 2016, there have been two events which require disclosure in the financial statements, the prepayment of regular pension contributions and the repayment of the Partnership Bond. See note 8.3.


Auditors and disclosure of


information to auditors The auditors, PricewaterhouseCoopers LLP, will cease office at the conclusion of the Annual General Meeting, and a resolution will be proposed at the Annual General Meeting for the appointment of KPMG LLP as auditors of the Company, 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 2pm on Thursday 9 June 2016 at Longstock House, Leckford, Stockbridge, Hampshire S020 6EH.


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


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Partnership will be able to continue in operation and meet its liabilities as theythey f fall due over the three-year period of assessment.


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ual Report and Accounts


t and Accounts 2016


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n Lew s Par ne sh


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Keith Hubber General Counsel and Company Secretary


14 April 2016


It’s Your Voice


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