Blacks Leisure Group plc
Annual Report & Accounts
for the year ended 28 February 2009
lifestyle.
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Blacks Leisure Group plc
440/450 Cob Drive, Swan Valley
Northampton NN4 9BB 
T: +44 (0)1604 597000  F: +44 (0)1604 597171
Shareholder helpline: 0870 162 3100
Email: info@blacksleisure.co.uk
www.blacksleisure.co.uk
Blacks Leisure Group plc   Annual Report & Accounts for the year ended 28 February 2009  Founded in 1861, Blacks Leisure Group plc 
operates in the retail and wholesale of 
clothing and camping equipment in the 
United Kingdom, Channel Isles and Ireland.
02 Group at a Glance
04 Chairman’s Statement
10 Chief Executive’s Review
12 Financial Review
16 Corporate Social Responsibility
18 Directors and Advisors
19 Corporate Governance Statement
23 Directors’ Remuneration Report
28 Directors’ Report and Business Review
34 Independent Auditors’ Report to the Shareholders
36 Consolidated Income Statement
37 Consolidated Statement of 
 Recognised Income and Expense
38 Consolidated Balance Sheet
39 Consolidated Cash Flow Statement
40 Notes to the Financial Statements
77 Company Balance Sheet
78 Notes to the Company Financial Statements
83 Five Year Summary
 Contents 16362 11/06/2009 Proof 4
01
Strategic Objectives
l   To roll out the proven new store formats 
across the estate over a period of five years
l  To exit the Boardwear market in full
l   To continue the rapid growth of our internet 
business
l   To invest in systems which will enable us to 
make further reductions in working capital
l   Once the business is on a sound footing 
to review the opportunities for market 
consolidation
Financial Highlights
 2009 2008
Revenue £267.6m £294.4m
Gross margin 54.3% 53.7%
Operating (loss)/profit excluding exceptional items* (£4.4)m £2.2m
(Loss)/profit before tax and exceptional items* (£6.8)m £0.3m
Operating loss (£12.0)m (£7.4)m
Loss before tax (£14.4)m (£9.3)m
Basic (loss)/earnings per share excluding exceptional items*  (19.57)p 4.32p
Basic loss per share (34.63)p (14.20)p
Final dividend per share 0.00p 1.00p
Total dividend per share 0.00p 3.00p
* Exceptional items of £7,577,000 (2008: £9,596,000) relating to onerous 
leases and inducements, impairment of property, plant and equipment, impairment 
of goodwill and restructuring costs were incurred in the year.
Reduction 
of central 
overheads
Optimisation 
of store 
costs
Improvement 
in retail 
standards
New store
formats
Range
reduction
Our Business
Our Governance
Our Financials
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Group at a Glance.
Boardwear
Focused upon customers with a passion for adrenaline sports. Freespirit offers 
a comprehensive range of iconic casual lifestyle brands such as  Animal, Oakley 
and Mambo alongside our own Freespirit range of clothing and accessories.
The UK retail licensee for the original Californian surf, snow and lifestyle brand, 
founded in 1952 by Jack O’Neill, continues to produce functional and innovative 
boardriding products. The core values, innovation in style and technology, have 
seen the brand devote itself wholeheartedly to the evolution of action sports. 
Now a global brand, O’Neill will always be committed to progressing that 
evolution and growing its reputation as one of the world’s leading youth 
lifestyle brands.
 Outdoor
The heritage of Blacks can be traced back to 1861 when Thomas Black founded his 
sail making company in Greenock, Scotland. The advent of steamship required the 
transferring of their skills into another business of tent making.
In 1994 the renamed Blacks Outdoor concentrated its strength in a broader range 
of outdoor activities; from walking and mountaineering to skiing and snowboarding. 
Blacks stocks specialist brands such as North Face and Berghaus as well as 
developing our own specialist brands such as Technicals and ALS. Blacks is one of 
the country’s leading outdoor retailers. The style and the design of the stores have 
been developed to meet the requirements of the modern marketplace.
Founded in 1893, Millets’ core values still hold true today; to offer a comprehensive 
range of outdoor clothing and equipment at great value for money from friendly, 
knowledgeable staff. Millets remains the country’s largest outdoor retailer stocking 
a large number of leading specialist brands, including Peter Storm, the UK’s most 
popular outdoor clothing brand, Eurohike, the UK’s most popular outdoor equipment 
brand, as well as Berghaus, Merrell, Coleman, Karrimor, Hi-Tec, Columbia,   and 
many more.
We are delighted to be able to support one of the leading young persons adventurous 
activity and personal development groups in the world. With over 400,000 active 
members in the UK we have created a formal association between Millets and the 
Scouts that is due to operate until at least the end of 2011.
Blacks Leisure Group plc  Annual Report and Accounts 2009
www.blacks.co.uk www.millets.co.uk
35 Freespirit  12 O’Neill 35 12
47 stores
373 stores
% of Group Turnover
82%
% of Group Turnover
18%
boardwear
258 Millets   115 Blacks
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Our Governance
Our Financials
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Brands
Brands
outdoor outdoor
boardwear boardwear boardwear boardwear. .
02/03
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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air
land
sea
Chairman’s Statement.
Overview   
The Group has experienced a difficult 
year in a particularly challenging trading 
environment. Our Chief Executive, 
Neil Gillis, is leading the programme of 
radical change which we believe is now 
beginning to produce the expected 
benefits. Progress has been made in 
rebalancing, rationalising and upgrading 
the store portfolio and in reducing the 
Group overhead base.   
The financial year saw our core Outdoor 
division maintain a sound performance 
in a tough retail market, reporting a small 
reduction in operating profit compared 
to the previous year. By contrast, the 
Boardwear division’s performance 
continued to decline over the previous 
year. With little prospect of an upturn 
in this division’s fortunes we took the 
strategic decision to reduce the Group’s 
presence in the Boardwear market.  
     
 
 “The Outdoor 
division has made 
an encouraging start 
to the new financial 
year reporting 
like-for-like sales 
up by 1.2% in the 
twelve weeks to 
23 May 2009.”
Driven by our customer’s passion for 
style, fashion and their connection with 
the great outdoors, we have made 
great progress with the development 
of our ALS brand. Targeting the fashion 
end of the outdoor market, ALS 
provides unique men’s and women’s 
clothing and accessories for everyday 
use. From heavy gauge knitwear with 
windproof lining to washed combat 
shorts, from summer dresses and 
cami tops to fleeced lined cable knit’s 
the ALS range has grown rapidly.
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Our Governance
Our Financials
The Outdoor division, comprising Blacks 
and Millets, achieved an operating 
profit before £2.1m (2008: £3.2m) of 
exceptional items, of £6.3m (2008: 
£7.3m). This reflects continuing progress 
on product availability, improved 
transitional ranges and our success in 
meeting customer needs. The decline 
against the previous year only materialised 
in the latter part of the financial year when 
trading conditions worsened. Despite 
this, Outdoor gross margins were slightly 
better year on year.  
 
 
 
 
 
 
04/05
Results        
        
Operating results  
 2008/09 2007/08 
 Outdoor Boardwear Central Total Outdoor Boardwear Central Total
 £m £m £m £m £m £m £m £m
Operating profit/(loss) before exceptional items 6.3   (7.8) (2.9) (4.4) 7.3  (3.3) (1.8) 2.2  
Exceptional items (2.1) (5.5) —   (7.6) (3.2) (6.1) (0.3) (9.6)
Finance costs —   —   (2.4) (2.4) —   —   (1.9) (1.9)
Profit/(loss) before tax 4.2  (13.3) (5.3) (14.4) 4.1  (9.4) (4.0) (9.3)
  
The Boardwear division, comprising the 
Freespirit and O’Neill stores and the UK 
wholesale operation of O’Neill product 
ranges, reported an increased operating 
loss before £5.5m (2008: £6.1m) of 
exceptional items, of £7.8m (2008: 
£3.3m). As announced on 10 December 
2008 the Group has agreed to transfer 
the operation of the O’Neill wholesale 
business in the UK to O’Neill Europe 
following the completion of the 
Spring/Summer 2009 season and 
has also rebranded eight Boardwear 
stores to an Outdoor format. 
The early signs of an improved 
performance from these converted 
stores have been encouraging and they 
are being monitored closely ahead of a 
decision on the future of the remaining 
Boardwear stores. 
 
Basic loss per share was 34.63p 
(2008: 14.20p).    
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Chairman’s Statement.
In order to provide the Group with a 
stable platform whilst working towards an 
appropriate long-term financing solution, 
Lloyds Banking Group continues to 
provide a £35m banking facility, extending 
the term until 31 August 2009.
More details are provided in the 
Financial Review and note 2 to the 
Financial Statements.   
    
 
Strategy    
The Group has a dominant position in 
the Outdoor market. Accordingly, the 
Group strategy is to focus on this strength 
and to manage a structured exit from 
the Boardwear business. A great deal of 
change has occurred over the last year 
and this will continue with a programme 
of upgrading stores and converting 
stores from Boardwear to Outdoor. More 
comprehensive details on these actions 
are given in the Chief Executive’s Review.
 “The Group 
has successfully 
reduced its working 
capital facility 
requirement from 
£40m to £35m.”
The major success of the year was the 
operational progress achieved. The most 
significant element was the improvement 
in controlling operational costs. This has 
been achieved without decreasing service 
levels. Moreover, retail standards and 
customer service levels in our stores have 
been improved.    
    
An improvement in working capital 
through a £5.9m reduction in the level 
of inventory was achieved and new 
processes have been put in place to meet 
and improve on the level of availability 
from this lower level of inventory. Cash 
management had a high level of focus 
through the year with improvements being 
made to our supplier terms and a greater 
focus on collecting our debts. The cash 
outflow from operating activities and 
capital expenditure was mitigated by the 
working capital improvement resulting in a 
cash outflow of £3.2m (2008: £5.8m cash 
inflow) and a closing overdraft position of 
£3.9m (2008: £0.8m). As a result, during 
the year the Group successfully reduced 
its working capital facility requirement 
from £40m to £35m, thereby in turn 
reducing finance charges.   
     
Dividend    
The Board has decided not to declare a 
final dividend for the year, believing that 
the recent performance of the business 
does not warrant the resultant cash 
outlay. We will resume dividend payments 
as soon as the performance of the Group 
permits.     
   
Going concern    
In determining the appropriate basis of 
preparation of financial statements, the 
Directors are required to consider whether 
the Group can continue in operational 
existence for the foreseeable future.  
    
The Group and Lloyds Banking Group 
are engaged in discussions regarding 
provision of a financial structure which 
will enable the Group to accelerate both 
the exit of the loss-making Boardwear 
business and the development of the 
Outdoor store portfolio.   
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Our Governance
Our Financials
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06/07
Board changes
As announced in August, Marc Lombardo 
was appointed to the Board as Finance 
Director. In the same month Nick Samuel 
and Andrew Mallett were appointed 
Non-Executive Directors. Nick was Chief 
Executive of Hobbs Limited, and Andrew 
is currently an Executive Director of Aspire 
Oil Services Limited and a Non-Executive 
Director of Powerleague Group plc. I am 
also pleased that Claude Littner has 
accepted the new position of Non-
Executive Deputy Chairman.
Clive Sherling decided to retire from the 
Board in August and I would like to thank 
him for his highly valued input provided 
during his time at Blacks.
Current trading and outlook  
The Group has made an encouraging 
start to the new financial year. The 
Outdoor division is achieving satisfactory 
like-for-like sales, although trading in the 
reduced Boardwear estate continues to 
be soft.
Total sales for the twelve weeks to 
23 May 2009 decreased by 4.6%, as a 
result of store disposals, and like-for-like 
sales held up well at only a 0.5% decline. 
Outdoor reported a 1.2% like-for-like 
increase and Boardwear declined by 
10.1%. A reduced gross margin of 
52.3% reflects the strategic decision to 
increase promotional activity to drive sales 
growth. The management of cash within 
the business is strong and cost savings 
continue to be made.
The first half outlook will depend on the 
key second quarter and the success of 
our camping and summer clothing lines.
Finally, I would also like to thank our 
staff for their focus and dedication to the 
business during an extremely challenging 
period for our Group.
David Bernstein   
Chairman    
29 May 2009 
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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New Store Formats.
cool air
Further development of the store format has been successfully implemented. The Millets 
‘blue sky’ format delivers the essentially British nature of the brand combined with our 
customers’ desire for good quality, great value Outdoor kit. The ‘cool air’ programme in 
Blacks combines the brand heritage with a modern, mass appeal retail format delivering 
the product brands in a superior environment.
The new format for Blacks
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Our Governance
Our Financials
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blue sky
The new format for Millets
08/09
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Chief Executive’s Review.
In January of last year we set out the 
turnaround plan for the Blacks Leisure 
Group business.    
The primary focus of the initial phase was 
to reduce the cost base. On this measure 
we considerably exceeded expectations 
with the cost base being reduced by 
£6.6m in the year against the original 
target of £3m.
The next objective was to provide the 
Group with greater security at a time 
of banking uncertainty by significantly 
reducing our working capital requirement. 
Over the year we reduced our debt 
facility from £40m to £35m by managing 
our supply chain more effectively and 
reducing range duplication within stores.
Thirdly we set out to develop two new 
outdoor retailing formats for Blacks and 
Millets which would provide us with the 
opportunity to refresh and update our 
estate. We trialled units in Kensington, 
Stockport, Holborn, Haverfordwest, 
Croydon and two in Newcastle-upon-Tyne. 
These new format stores have performed 
well at 14.7% better than the fascia 
average and given us the confidence that 
we have successful models which we 
can roll out across the estate as funding 
allows.   
We have also made significant progress 
in resolving the issue of our Boardwear 
business. This has been a declining 
category for several years as consumer 
tastes have changed and the items 
retailed in this format have become more 
generally available. During the year we 
rationalised the Boardwear business 
by closing the Washington (O’Neill) 
warehouse and offices and combining the 
O’Neill, Freespirit and Outdoor overheads 
into one. We also managed to exit the 
loss making and cash consuming O’Neill 
wholesale contract without penalty 
and we have converted eight of the 
Boardwear stores to our new Blacks 
Outdoor format and initial results suggest 
that this has worked well.    
    
Finally, we have redesigned our Millets 
and Blacks websites and improved 
the logistical infrastructure behind this 
growing part of our offer with the result 
that internet sales have more than 
doubled in the current year to date.   
     
In summary, a great deal of progress has 
been made in a short time to streamline 
and enhance the business. Unfortunately, 
this had to be completed in the teeth of 
a significant retail recession which has 
added huge additional pressures to the 
already major task of delivering a business 
turnaround.    
 “Eighteen months 
into the turnaround 
plan I am pleased 
with the progress 
we have made.”
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Our Governance
Our Financials
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However, the work that we have done 
has not only enabled us to weather this 
recession but has also placed Blacks 
Leisure in an excellent position to take full 
advantage of the consumer upturn as and 
when it occurs.    
  
Eighteen months into the turnaround plan 
I am pleased with the progress we have 
made. We have reduced costs, reduced 
our working capital and significantly 
reduced our exposure to the declining 
Boardwear business. 
We have also grown our internet 
business, developed new store formats 
which have grown by 14.7% and in the 
first twelve weeks of the new financial 
year grown like-for-like sales in our 
Outdoor business by 1.2%. We are a 
streamlined, enhanced and more focused 
business with the potential to deliver 
strong and sustainable growth.  
 
Neil Gillis
Chief Executive
29 May 2009
 “W e are a 
streamlined, 
enhanced and 
more focused 
business with 
the potential to 
deliver strong 
and sustainable 
growth.”
10/11
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Financial Review.
Operating loss   
Operating losses for the Group comprise 
the results of the Outdoor division and 
the Boardwear division. Unallocated 
costs consist of the remuneration of the 
Board, excluding the remuneration of 
the Managing Director of O’Neill which is 
charged to the Boardwear division, plus 
the costs of public company compliance 
and advisors.
The operating performance of the two 
divisions varied significantly, with the 
Outdoor division generating a profit 
before exceptional items of £6.3m (2008: 
£7.3m) whilst the Boardwear division 
sustained a loss of £7.8m (2008: £3.3m). 
Central costs equated to £2.9m (2008: 
£1.8m) and finance costs as noted below 
amounted to £2.4m (2008: £1.9m).
Exceptional items amounting to £7.6m 
(2008: £9.6m) were expensed in the year 
end financial statements. The exceptional 
charge relates to four distinct items:
l The onerous lease provision, first 
set up at 3 March 2007, has been 
reviewed and revised due to the 
unfavourable trading conditions and 
the reduction in demand for high 
street premises. Although no further 
stores were added to the provision in 
the year, this has led to an increase in 
the provision of £4.2m (2008: £5.3m).
l The Boardwear division has had a 
particularly tough year which has led 
to the impairment of goodwill arising 
from the annual impairment test and 
reflects the value-in-use of the cash 
generating unit and its carrying value. 
The calculation resulted in the full 
impairment of the Just Add Water Ltd 
goodwill which amounted to £1.8m.
l After an internal review of the 
Sandcity subsidiary announced early 
in the year, an operational review 
followed and the decision was taken 
to relocate the O’Neill business from 
Washington, Tyne & Wear to the 
Northampton distribution centre from 
where the rest of the Group operates. 
This has led to a write down of the 
property, plant and equipment at the 
Washington site, redundancy costs 
and relocation costs totalling £1.2m.
l A review of the Group’s individual 
stores contribution for past periods 
and the projected period has led to 
the impairment in full of the property, 
plant and equipment for six stores 
totalling £0.4m (2008: £0.1m).
 “Net cas h 
generated from 
operating activities 
was £1.5m 
(2008: £14.4m).”
Customer Survey
Getting to know our customers…
Sustainable business growth comes from getting closer to your customers and 
giving outstanding customer service. 
Given previous lack of robust customer data in this market we’ve had to go out 
and create some for ourselves.
Following a successful pilot in 36 stores we’re now inviting all our customers to 
give us feedback on our service and their shopping experience with us. 
The findings are changing the way we do business both in stores and with 
suppliers since we no longer have to guess what our customers want – we have 
the market’s largest most comprehensive customer research database.
16362BLACKSfront.indd   12 22/06/2009   08:40 Our Business
Our Governance
Our Financials
The Group reported an operating loss 
before exceptional items of £4.4m (2008: 
£2.2m profit) and an operating loss after 
exceptional items of £12.0m (2008: 
£7.4m). This figure is analysed in more 
detail in the segment information set out 
in note 5 to the financial statements. 
The performance of each segment 
is described in the preceding Chief 
Executive’s Review.    
 
Loss before tax  
The Group’s loss before tax and 
exceptional items was £6.8m (2008: 
£0.3m profit). Exceptional items 
amounting to £7.6m (2008: £9.6m) were 
expensed generating a loss before tax of 
£14.4m (2008: £9.3m).  
 
Goodwill   
The carrying value of goodwill was 
reviewed and the Board is satisfied that 
no provision for impairment is needed 
with regard to The Outdoor Group 
goodwill. As discussed above the Just 
Add Water goodwill has been impaired in 
full and written down to nil.   
     
Finance costs    
The Group’s net finance costs increased 
by £0.5m to £2.4m due to the unwinding 
of the discount factor in respect of the 
onerous lease provision which amounted 
to £1.0m (2008: £nil). This masks the 
greater focus on managing the Group’s 
cash flow more effectively and the interest 
element in respect of a corporation tax 
refund.    
 
Cash flow    
Net cash generated from operating 
activities was £1.5m (2008: £14.4m). 
Working capital in the Group decreased 
by £2.5m (2008: £14.7m), with trade and 
other payables decreasing by £5.0m, 
trade and other receivables decreasing by 
£2.0m, inventories decreasing by £5.9m 
and provisions decreasing by £0.4m. Total 
inventories were £50.1m (2008: £56.0m 
restated) with stock cover being 158 days 
(2008: 163 days). Our normal stock turn 
target is three times per annum, but the 
stock holding is always higher at the year 
end due to receipt of the Spring/Summer 
season ranges.    
     
   
12/13
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Financial Review.
The net cash outflow from property, plant 
and equipment expenditure was £5.1m 
(2008: £5.4m). Refurbishments and 
new formats, ‘cool air’ and ‘blue sky’, 
accounted for £2.8m, £1.2m was used 
for computer systems upgrades and 
improvements and the balance of £1.1m 
comprised investment in warehousing 
and distribution including some additional 
spend to accommodate the O’Neill stock 
relocated from Washington.   
  
The cash outflow before financing was 
£1.7m (2008: £8.9m inflow).   
  
Going concern    
In determining the appropriate basis of 
preparation of financial statements, the 
Directors are required to consider whether 
the Group can continue in operational 
existence for the foreseeable future.  
  
The Group and Lloyds Banking Group 
are engaged in discussions regarding 
provision of a financial structure which 
will enable the Group to accelerate both 
the exit of the loss-making Boardwear 
business and the development of the 
Outdoor store portfolio.   
     
    
     
In order to provide the Group with a 
stable platform whilst working towards an 
appropriate long-term financing solution, 
Lloyds Banking Group continues to 
provide a £35m banking facility, extending 
the term until 31 August 2009.  
 
Having reviewed the current cash flow 
projections, and having made reasonable 
enquiries in making the underlying 
key assumptions on sales growth, the 
Directors have a reasonable expectation 
that the Group will be able to meet 
its liabilities as they fall due for the 
foreseeable future. It is on this basis that 
the Directors consider it appropriate to 
prepare the Group’s consolidated financial 
statements on the going concern basis. 
However, the Directors recognise that 
there is a material uncertainty, of the bank 
facility not being extended beyond 
31 August 2009, that may cast significant 
doubt on the Group’s ability to continue 
as a going concern, and therefore, that 
it may be unable to realise its assets 
and discharge its liabilities in the normal 
course of business.    
  
There is a risk that the above material 
uncertainties as to the Group’s ability 
to continue as a going concern may 
not be resolved satisfactorily. The 
financial statements do not include the 
adjustments that would result if the 
Group were unable to continue as a 
going concern, which would include 
writing down the carrying value of assets, 
including goodwill, to their recoverable 
amount and providing for any further 
liabilities that might arise.   
  
The Board understands that the bank 
is supportive of the turnaround strategy 
of the business and would be willing to 
consider providing an increase on the 
current facility level to undertake the 
necessary investment plans, subject to 
the provision of medium-term projections 
necessary to support the proposals.  
  
The extension of the facility aims to 
provide an adequate time period to allow 
the planned discussions to take place.  
  
Restatement   
Following a review into negative stock 
balances within the stock system during 
the year it was identified that a release 
of stock credit balances of £1.1m in the 
year ended 3 March 2007 had been 
incorrect. This has been corrected as a 
prior year restatement which has reduced 
the retained earnings and reduced the 
inventories balance at 1 March 2008 by 
this amount.   
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Our Governance
Our Financials
14/15
Financial position  
At the year end the Group’s net 
borrowings amounted to £3.9m (2008: 
£0.8m). This included a drawdown loan of 
£22.0m, expiring on 26 March 2009, and 
an additional £2.6m in ancillary facilities 
in relation to foreign currency guarantees. 
Surplus cash of £13.4m was placed 
on the overnight money market at the 
year end.     
 
The Group has extended its revolving 
credit bank facility of £35m until 
31 August 2009. In addition asset 
financing facilities of £3.8m (2008: 
£5.0m) are in place for the Swan Valley 
distribution centre and our store systems. 
These facilities have lease lives of 
between five and seven years.  
    
Financial risks and treasury 
policy     
The key financial risks faced by the Group 
relate to the availability of funds to meet 
the business needs and the fluctuations 
in interest rates. The Group manages 
borrowing, liquidity, interest rate, foreign 
exchange and banking relationships in 
accordance with Board approved policies 
designed to minimise exposures.  
     
The Group finances its operations by a 
combination of internally generated cash 
flow and bank borrowings. Refinancing 
risk is controlled by ensuring the Group 
has sufficient undrawn bank facilities to 
meet increases in projected borrowings 
over the forthcoming twelve-month 
period, which, at present, is subject to the 
discussions described above.  
   
The Group’s policy is to fix or cap a 
proportion of projected net debt in order 
to reduce the Group’s exposure to 
fluctuations in interest rates. The policy 
recognises that in common with other like 
retailers the Group has significant liabilities 
through conditional obligations to pay 
rent under operating leases. The implicit 
interest rate of these liabilities is fixed in 
the short-term.    
     
Foreign currencies
Transaction exposure resulting from 
purchases in foreign currencies may 
be hedged by forward foreign currency 
transactions and currency options. The 
Group’s policy aims to minimise any 
exposure with the intention of protecting 
the buying margin from fluctuations in the 
value of foreign currency.   
   
At 28 February 2009 the Group was 
committed to forward exchange contracts 
to buy US$8.5m (2008: US$52.5m). 
At 1 March 2008 the Group was also 
committed to buy E12.0m and to sell 
US$22.5m.    
     
Marc Lombardo    
Finance Director    
29 May 2009    
     
   
We have made further progress 
with the development of exclusive 
brand product areas through a 
more focused approach and a 
10% reduction in options across 
all businesses. Peter Storm 
clothing range is more colourful, 
practical and broad ranging as it 
encompasses both outdoor wear 
and lifestyle product that appeals 
to the value conscious Millets 
customer. 
The Technicals clothing range in 
Blacks continues to perform well, 
as does the One Earth organic 
cotton t-shirts range. In 2009 we 
are introducing the third generation 
of the Blacks Constellation tent, 
with innovative Silverskin® fabric 
technology and a custom designed 
LED lighting system, the tents 
are designed to stay cooler by 
day and brighter at night. We are 
determined to continue providing 
customers with the product they 
want, a key part of this will be our 
ongoing commitment to further 
investing in clothing and equipment 
product development.
Case Study... 
Innovation & Development
16362 08/06/2009 Proof 2
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
Corporate Social Responsibility.
The Board recognises the importance 
of balancing the interests of all its key 
stakeholders, including employees, 
shareholders, customers, suppliers and 
the communities in which it operates, and 
believes that the long-term success of 
the Group is greatly enhanced by valuing 
and developing relationships with key 
stakeholders.    
 
Employees    
People are key to achieving the Group’s 
business objectives. The Group has 
established policies for recruiting, training 
and development and is committed to 
achieving excellent health, safety, welfare 
and protection of employees and their 
working environment.   
 
The Group ensures, as far as is 
reasonably practicable, that a safe 
and healthy workplace and working 
environment is provided for all its 
employees to a standard which is at 
least as high as that required by law. 
The Group’s employment policies are 
designed to produce a framework within 
which all staff are treated in a fair and 
consistent manner. They have been 
developed to ensure that staff are aware 
of what is expected of them and what 
the Group, for its part, offers in return. 
All employees are expected to observe 
and abide by the Group’s policies and 
procedures which are clearly set out in a 
manual available to staff in stores and also 
on the Group intranet. The Group policy is 
one of equal opportunity in the selection, 
career progression and promotion of all 
employees. There are clear grievance and 
disciplinary procedures in place.  
 
The Group maintains close consultation 
with its employees regarding matters likely 
to affect their interests and is committed 
to involving them in the performance and 
development of the Group.   
 
It is the policy of the Group to support 
the employment of disabled persons 
wherever practicable and to ensure as 
far as possible that they participate in all 
career opportunities available to staff.  
    
Suppliers   
The Group purchases goods for resale 
from suppliers based in the UK and direct 
from manufacturers around the world. 
The Group endeavours to ensure that the 
suppliers of our goods provide reasonable 
working standards for their employees 
and do not contravene the employment 
laws of their country.   
  
Customers   
The Group aims to provide a high 
quality of service to all its customers and 
ensure that all products are safe and 
fit for purpose. The Group endeavours 
to provide accessibility to its different 
shopping channels for all customers. 
The Group employs a customer service 
department which is actively engaged 
in dealing promptly and efficiently with 
customer issues and enquiries.  
 
Health and safety   
The Group recognises the importance 
of health and safety in the workplace 
and its management is designed to 
improve business performance. Practical 
measures, such as risk assessments, are 
undertaken to ensure that the Group’s 
activities and products do not pose a risk 
to customers, employees, contractors, 
sites or equipment. Procedures are in 
place to enable effective communication 
and consultation about health, safety and 
welfare issues in order to achieve a high 
level of safety awareness.   
 
Environment    
The Group believes that business 
has a responsibility to achieve good 
environmental practice and to continue to 
strive for improvement in its environmental 
impact. The efficient and effective use 
of resources makes sound commercial 
sense. In view of this the Group has 
appropriate environmental policies and 
sets objectives taking due account of the 
business risks and opportunities.  
   
Community   
As a multi-site, predominantly retail 
operator, the Group’s community 
involvement is generated by its stores, 
which contribute to their local areas in 
a variety of ways. The Group supports 
and encourages these activities and 
welcomes the opportunities they 
present for team-building within the 
business and relationship-building 
with the communities it serves. 
 
16362BLACKSfront.indd   16 22/06/2009   08:41 Our Business
Our Governance
Our Financials
Glastonbury 2009 – 2011
We have agreed a three year sponsorship deal with Glastonbury Festival of 
Contemporary Performing Arts. As the pinnacle of music festivals and one of the 
first in the summer calendar, in becoming a strategic partner with Glastonbury 
Millets will reach to a new, younger customer. A camping product range has been 
developed specifically tailored to the needs, usage and budget of the festival 
goer. At the event we have two stands which provide the items people need to 
top up during the festival, whether patterned wellies, printed kagouls or even a 
replacement tent.
16/17
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
Directors and Advisors.
Neil D. Gillis 
Chief Executive
Neil (44) joined the Board in November 
2007 as Chief Executive. Prior to this 
he held a number of senior positions in 
consumer-facing businesses including 
Chief Executive of Esporta Health Clubs 
from 2003 to 2007, Chairman of Duchy 
Originals, Managing Director of the 
Greene King plc Pub Company and 
Managing Director of Linda McCartney 
Foods.
Marcello A. Lombardo, 
BA, ACMA
Finance Director
Marc (50) was appointed to the Board as 
Finance Director on 20 August 2008. Prior 
to this he was Financial Planning Director 
of Greene King plc where he spent ten 
years. Marc has also held senior finance 
positions with Scottish and Newcastle 
and the Daily Mail.
David A. Bernstein, FCA
Non-Executive Chairman
David (66) joined the Board in 1995 and 
was appointed Non-Executive Chairman 
in June 2001. He is also Chairman 
of Sports and Leisure Group Ltd and 
Wembley National Stadium Ltd and 
Non-Executive Director of Ted Baker plc 
and Carluccios plc. He has extensive 
experience in the sports and leisure 
industry, having spent six years as Joint 
Managing Director of Pentland Group plc 
and five years as Chairman of Manchester 
City plc.    
   
Claude M. Littner, MBA 
Non-Executive Deputy Chairman
Claude (60) joined the Board in July 
1999 and was appointed Non-Executive 
Deputy Chairman in August 2008. He was 
Chief Executive of Tottenham Hotspur plc 
from 1993 to 1998 and a Non-Executive 
Director until 2000. Prior to this he spent 
three years as Chairman and Chief 
Executive of Amstrad International. He 
is Executive Chairman of Powerleague 
Group plc and Aspire Oil Services Ltd and 
Non-Executive Director of Amstrad plc, 
Norton Way Motors Ltd and Myeloma UK. 
  
   
Nicolas M. Samuel, 
FRSA, BA, ACA
Non-Executive Director
Nick (56) joined the Board in August 
2008. He had previously held senior 
positions in the fashion retail sector 
having been Chief Executive of Hobbs 
Limited from 2001 to 2008 and prior to 
this has spent nine years as an Executive 
Director and on the Board of Karen Millen. 
He is also Chairman of Adili plc, the online 
ethical fashion retailer and a Director of 
CVUK Limited, a retail recruitment agency. 
  
Andrew H. Mallett, FCA
Non-Executive Director
Andrew (59) joined the Board in August 
2008. He qualified as a Chartered 
Accountant with Price Waterhouse and 
has operated at Board level in a number 
of private and public companies in various 
sectors, including leisure and retail, 
undertaking strategic and turnaround 
work. He was Deputy Chairman of Asco 
plc from 2004 to 2007 and is currently a 
Director of Aspire Oil Services Ltd and a 
Non-Executive Director of Powerleague 
Group plc.
Mark D. Beacham, BSc, FCA  
Company Secretary  
Registered office  
440/450 Cob Drive
Swan Valley
Northampton NN4 9BB
Registered in England No. 582190
Auditors 
BDO Stoy Hayward LLP 
Emerald House 
East Street 
Epsom 
Surrey KT17 1HS 
Solicitors 
DLA Piper UK LLP 
Victoria Square House 
Victoria Square  
Birmingham B2 4DL 
Principal bankers 
Bank of Scotland plc 
123 St Vincent Street 
Glasgow G2 5EA 
Stockbrokers
Investec Bank plc
2 Gresham Street
London EC2V 7QP
 
Registrars and transfer office
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
Financial public relations
Citigate Dewe Rogerson
3 London Wall Buildings
London Wall
London EC2M 5SY
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Our Governance
Our Financials
16362 11/06/2009 Proof 4
18/19
Corporate Governance 
Statement.
There is a commitment to high standards 
of corporate governance throughout the 
Group. The Board endorses the general 
principles set out in the 2006 Combined 
Code on Corporate Governance issued 
by the Financial Reporting Council (‘the 
Code’) and is accountable to the Group’s 
shareholders for good governance. In 
view of the size of the Group and its 
current management structure, not all 
of the guidance set out in the Code has 
been applied during the year. Those 
elements that have not been adopted 
are disclosed in the statement. Our 
compliance with the Code is kept under 
review.
The Listing Rules require the Board to 
explain how corporate governance is 
conducted within the Company and to 
report on compliance with the provisions 
of the Code, the guiding principle of which 
is “comply or explain”. This corporate 
governance statement, together with 
the Directors’ Remuneration Report on 
pages 23 to 27, explains key features of 
the Company’s corporate governance 
structure, how the Company applies the 
principles of the Code and the extent to 
which the Company complies with the 
provisions of the Code.
The Board considers that the Company 
has complied with the provisions of 
the Code throughout the year ended 
28 February 2009 except as set 
out below.
Code provision A3.2 recommends that 
a company outside the FTSE 350 index 
should have at least two independent 
Non-Executive Directors. As explained 
below, during the period from 16 July 
2008 to 27 August 2008 the Company 
had only one independent Non-Executive 
Director and therefore did not comply 
with this provision of the Code for that 
short period.
Code provision A3.3 recommends that 
one of the independent Non-Executive 
Directors should be appointed as Senior 
Independent Director. As explained below, 
the Board does not currently recognise a 
Senior Independent Director due to the 
small size of the Board, but the position is 
kept under review and shareholders can 
contact either of the independent Non-
Executive Directors in place of a Senior 
Independent Director.
Code provisions A4.1, B2.1 and C3.1 
recommend that the Nominations, 
Remuneration and Audit Committees be 
comprised solely of or have a majority of 
independent Non-Executive Directors as 
members and that they be chaired by an 
independent Non-Executive Director. As 
explained below, the Deputy Chairman, 
who does not satisfy the Code definition 
of independent, is a member of all three 
committees and chairs two of them. 
The Board considers that this position 
is currently in the best interests of the 
Company given the Deputy Chairman’s 
experience and committee performance 
and the changes to the Board during 
the year.
The Board of Directors
The present Board consists of a Non-
Executive Chairman, Non-Executive 
Deputy Chairman, two Executive 
Directors and two Non-Executive 
Directors. The names and biographical 
details of the Board members appear on 
page 18 of this report. These indicate 
the high level and range of business 
experience which enable the Group to be 
managed effectively.
The Chairman has served on the Board 
for over nine years and does not satisfy 
the definition of independence set out in 
the Code. The Deputy Chairman’s service 
on the Board reached nine years in July 
2008 and he too no longer satisfies this 
definition. Notwithstanding their length 
of service, the Chairman and Deputy 
Chairman are considered by the Board 
to exercise independent judgement in 
performing their roles. The other Non-
Executive Directors are considered 
by the Board to be independent of 
management and free of any relationship 
or circumstances which could materially 
interfere with the exercise of their 
independent judgement and to fully satisfy 
the Code’s definition of independence. 
During the short period between the 
Deputy Chairman achieving nine years’ 
service on the Board on 16 July 2008 
and the appointment of additional Non-
Executive Directors on 28 August 2008 
the Company had only one independent 
Non-Executive Director.
The Non-Executive Directors’ interests in 
the shares of the Company are set out on 
page 33 and they receive a fixed fee for 
their services. 
The Board meets at least eight times each 
year and more frequently where business 
needs require. The Board has a schedule 
of matters reserved for its decision which 
includes material capital commitments, 
commencing or settling major litigation, 
business acquisitions and disposals and 
appointments to the Board and of the 
Company Secretary. All matters of an 
operational nature are delegated to the 
Executive Directors. All Directors are given 
appropriate and timely information for 
each Board meeting, including reports on 
the current financial and trading position 
of each business.
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
Corporate Governance 
Statement.
The Group does not recognise a Senior 
Independent Director due to the small 
size of the Board, although this position 
is kept under review. In the absence of a 
Senior Independent Director, shareholders 
can contact either of the independent 
Non-Executive Directors where contact 
with the Chairman, Deputy Chairman, 
Chief Executive or Finance Director is not 
considered appropriate. During the year, 
the Non-Executive Directors met without 
the Executive Directors present and the 
Non-Executive Directors met separately 
without the Chairman present.
Any Director appointed is required to 
retire and seek election by shareholders 
at the next Annual General Meeting. 
Additionally, one-third of the Directors 
retire by rotation each year and seek re-
election at the Annual General Meeting. 
The Directors required to retire are those 
in office longest since their previous re-
election. Although this usually means that 
each Director retires at least every three 
years, there is no absolute requirement to 
this effect. However, this is to be rectified 
in the new Articles of Association to be 
considered at this year’s Annual General 
Meeting. Non-Executive Directors who 
have served on the Board for more than 
nine years are subject to annual re-
election.
All Directors have access to independent 
professional advice if required and at the 
Company’s expense. This is in addition 
to the access which every Director has to 
the Company Secretary. The Secretary is 
charged by the Board with ensuring that 
Board procedures are followed.
Chairman and Chief Executive
There is a clear division of responsibilities 
between the roles of the Chairman and of 
the Chief Executive and these have been 
approved by the Board.
The role of the Chairman is to conduct 
Board meetings and meetings of 
shareholders and to ensure that all 
Directors are properly briefed in order 
to take a full and constructive part in 
Board discussions. He is responsible 
for evaluating the performance of the 
Board, its Committees and each of the 
other Directors. This includes addressing 
the development needs of the Board 
as a whole with the view to enhancing 
its overall effectiveness, and covers 
capability, time commitment and individual 
contribution. The Non-Executive Directors 
are responsible for evaluating the 
performance of the Chairman.
The role of the Chief Executive is to 
develop and lead business strategies 
and processes to enable the Group 
to meet shareholder requirements. 
He is responsible for dealing with 
investors, Group public relations, 
external communications and corporate 
governance. The role involves leading 
the Executive team and evaluating 
the performance of the Executive 
Management.
Board Committees
The Board has delegated authority to 
three standing committees, as set out 
in written terms of reference for each 
committee which are available from the 
Company Secretary. The composition of 
the three committees complied with the 
provisions of the Code until Mr Littner 
attained nine years’ service on the Board 
in July 2008 and ceased to satisfy the 
Code’s definition of independence. The 
Code’s provision would preclude Mr 
Littner from being a member of any of 
the committees. Notwithstanding this 
position, the Board considers that Mr 
Littner’s continuing membership of the 
committees and chairmanship of two 
of them is in the best interests of the 
Company given his experience and 
committee performance and the changes 
to the Board during the year.
Audit Committee
The current Audit Committee members 
are A.H. Mallett (Chairman), C.M. 
Littner and N.M. Samuel. Mr Mallett is 
a Chartered Accountant with relevant 
financial experience and was appointed 
as Chairman of the Audit Committee on 
1 September 2008 in succession to C.R. 
Sherling who resigned from the Board on 
27 August 2008. The Committee meets 
at least twice a year and its main duties 
are as follows: 
l monitoring the integrity of and 
reviewing the financial statements;
l recommending the appointment 
of and reviewing the effectiveness 
and independence of the external 
Auditors;
l reviewing the Group’s internal controls 
and risk management systems;
l reviewing the operation and 
effectiveness of the internal audit 
function; and
l overseeing the establishment and 
maintenance of good business 
practices throughout the Group.
The Chairman, Chief Executive, Finance 
Director, Head of Internal Audit and 
the Group’s external Auditors were 
invited and attended meetings of the 
Audit Committee. 
The Audit Committee keeps the scope 
and cost-effectiveness of the external 
audit under review. The independence 
and objectivity of the external Auditors are 
also considered on a regular basis, with 
particular regard to the level of non-audit 
fees. The provision of non-audit services 
is reviewed on a case by case basis. 
The split between audit and non-audit 
fees appears on page 50. The non-audit 
fees were paid in respect of tax advice 
and reports required for shareholder 
information and are not considered by 
the Committee to affect the Auditors’ 
independence or objectivity. 
The Group’s external Auditors, BDO Stoy 
Hayward LLP , have reported to the Audit 
Committee that, in their professional 
judgement, they are independent 
within the meaning of regulatory and 
professional requirements and the 
objectivity of the audit partner and audit 
staff is not impaired. The Audit Committee 
has reviewed this statement and concurs 
with its conclusion.
16362BLACKSfront.indd   20 22/06/2009   08:41 Our Business
Our Governance
Our Financials
20/21
Remuneration Committee  
The current Remuneration Committee 
members are C.M. Littner (Chairman), 
A.H. Mallett and N.M. Samuel. C.R. 
Sherling was a member of the Committee 
until his resignation from the Board on 
27 August 2008, on which day Mr Mallett 
and Mr Samuel were appointed to the 
Board. The Committee meets at least 
twice a year to review the remuneration 
of the Executive Directors. It is also 
responsible for determining the fees of 
the Chairman. Full details of the Directors’ 
remuneration and a statement of the 
Company’s remuneration policy are set 
out in the Directors’ Remuneration Report 
on pages 23 to 27. The Chairman and 
Chief Executive attend meetings of the 
Committee to discuss the performance 
of other Executive Directors and make 
proposals as necessary, but take no part 
in deliberations when their own position 
is discussed.
Each Executive Director abstains from 
any discussion or voting at full Board 
meetings on Remuneration Committee 
recommendations where the 
recommendations have a direct bearing 
on their own remuneration package. 
The details of each Executive Director’s 
individual package are fixed by the 
Committee in line with the policy adopted 
by the full Board.    
    
Nominations Committee  
The current Nominations Committee 
members are C.M. Littner (Chairman), 
A.H. Mallett, N.M. Samuel and D.A. 
Bernstein. C.R. Sherling was a member 
of the Committee until his resignation 
from the Board on 27 August 2008, on 
which day Mr Mallett and Mr Samuel were 
appointed to the Board. Appointments 
to the Board of both Executive and 
Non-Executive Directors are considered 
by this Committee. When considering 
appointments for Non-Executive 
Directors, external search consultants 
are used as appropriate, together with a 
review of other candidates known to be 
available, to ensure that a wide range of 
candidates is considered. The Committee 
prepares a description of the role and 
capabilities required for an appointment 
based on an evaluation of the balance 
of skills, knowledge and experience on 
the Board. 
This is followed by an interview process. An induction to the Group’s business and training 
is provided for all Directors on appointment.     
 
Board and Committee attendance chart    
Attendance at meetings during the financial year is shown below:    
   
  Audit Remuneration Nominations
 Board Committee Committee Committee
D.A. Bernstein 11 (12)  2 (2)* 2 (2)* 3 (3) 
C.M. Littner 12 (12)  2 (2)  2 (2)  3 (3) 
N.D. Gillis 12 (12)  1 (1)* 2 (2)* 1 (1)*
M.A. Lombardo 7 (7)  1 (1)* 0 (0)  0 (0) 
A.H. Mallett 7 (7)  1 (1)  1 (1)  0 (0) 
N.M. Samuel 7 (7)  1 (1)  1 (1)  0 (0) 
D.J. Spurling 0 (0)  0 (0)  0 (0)  0 (0) 
K. Fleming 4 (4)  1 (1)* 0 (0)  1 (1)*
C.R. Sherling 5 (5)  1 (1)  1 (1)  3 (3) 
    
Figures in brackets denote the maximum number of meetings that each Director could 
have attended.    
    
* Attended by invitation.    
Internal control and risk 
management
The Board of Directors is responsible for 
the Group’s system of internal control 
that is designed to facilitate effective and 
efficient operations and to ensure the 
quality of internal and external reporting 
and compliance with applicable laws and 
regulations. In devising internal controls, 
the Directors have regard to the nature 
and extent of the risk, the likelihood of it 
crystallising and the cost of controls. A 
system of internal controls is designed to 
manage but not eliminate the risk of failure 
to achieve business objectives and can 
only provide reasonable and not absolute 
assurance against the risk of material 
misstatement, fraud or loss. 
The Board reviews the Group’s 
procedures in respect of internal control 
with a view to complying with the ‘Internal 
Control: Guidance for Directors on the 
Combined Code’ issued by the Institute 
of Chartered Accountants in England 
and Wales and established procedures 
to ensure compliance with the guidance. 
The Board considers that there has been 
an ongoing process for the identification, 
evaluation and management of the 
significant risks faced by the Group. This 
process is regularly reviewed by the 
Board and meets the requirements of 
the guidance.
16362 08/06/2009 Proof 2
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
The key procedures that the Directors 
have established to provide effective 
internal controls are as follows:
Internal Audit function
The Internal Audit function carries out 
a programme of audits covering the 
management of significant corporate and 
operational risks and reports directly to 
the Audit Committee and works with the 
Board on the effectiveness of key internal 
controls.
Whistle-blowing
The Group has a ‘Whistle-blowing’ 
procedure whereby employees  can make 
(on an anonymous basis if preferred) 
confidential disclosures about suspected 
impropriety and wrongdoing. Any 
matters so reported are investigated and 
escalated to the Audit Committee as 
appropriate. Statistics on the volume and 
general nature of all disclosures made are 
reported to the Committee on an annual 
basis. 
Control environment
Operational management groups meet 
regularly to monitor all operational 
matters. Clearly defined lines of 
responsibility and delegation of 
authority have been established in the 
organisational structure. The Executive 
Directors participate at least monthly 
in management meetings and regularly 
review activities. 
Corporate Governance 
Statement.
Risk management
Management has responsibility for 
identifying risks to the business and for 
establishing procedures to mitigate and 
monitor such risks. The risk register 
documents the Group’s appetite for 
risk and the significant risks and control 
strategies in each area. This is reviewed 
annually and approved by the Board.
Financial reporting
A detailed formal budgeting process for all 
businesses culminates in an annual Group 
budget which is approved by the Board. 
Results are reported monthly against this 
budget and revised forecasts for the year 
are prepared when appropriate.
Capital investment
The Group has clearly defined guidelines 
for capital expenditure. These include 
annual budgets, detailed appraisal and 
review procedures, defined levels of 
authority and due diligence requirements 
where businesses are being acquired. 
Post-investment appraisals are performed 
for major investments.
Internal controls assurance
The Audit Committee, on behalf of the 
Board, has reviewed during the year the 
effectiveness of the system of internal 
control from information provided by 
management, Internal Audit and the 
Group’s external Auditors. Any system 
of internal control can only provide 
reasonable and not absolute assurance of 
meeting the internal control objectives.
This review included an assessment by 
the Board of the key risks affecting the 
Group in the delivery of its long-term 
strategies.
Going concern
The Directors, having taken account of 
the Group’s net cash resources and bank 
facilities and having made appropriate 
enquiries, consider that the Company and 
the Group have adequate resources to 
continue operations for the foreseeable 
future and for this reason they continue 
to adopt the going concern basis in 
preparing the financial statements, as 
more fully described in note 2 to the 
financial statements. 
Communication
The Company places a great deal of 
importance on communication with its 
shareholders. Shareholders have direct 
access to the Company via its website 
and the Company responds to numerous 
letters and emails from shareholders and 
customers on a wide range of issues.
There is regular dialogue with individual 
institutional shareholders as well as 
general presentations after the interim 
and preliminary results. All shareholders 
have the opportunity to raise questions 
at the Annual General Meeting when the 
Company also highlights the latest key 
business developments. At the meeting, 
the Company complies with the Code 
as it relates to voting, the separation 
of resolutions and the attendance 
of committee chairmen. In line with 
the Code, details of proxy voting by 
shareholders are made available following 
the meeting.
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Our Governance
Our Financials
16362 11/06/2009 Proof 4
22/23
Directors’ Remuneration 
Report.
Unaudited information        
The Remuneration Committee     
The Remuneration Committee is composed of C.M. Littner (Chairman), N.M. Samuel and A.H. Mallett. The Remuneration Committee, 
on behalf of the Board, makes recommendations regarding Executive Directors’ remuneration packages including bonuses, share 
options and other incentive schemes.         
Directors’ service contracts  
Executive Directors           
     Compensation
  Start  Unexpired Notice for early
  date term period termination
N.D. Gillis*  20-Nov-07 Rolling 12 months None
M.A. Lombardo*  3-Aug-08 Rolling 12 months None
* These are permanent rolling contracts.           
           
Non-Executive Directors
    Compensation
 Start Unexpired Notice for early
 date term period termination
D.A. Bernstein 1-June-09 24 months 6 months None
C.M. Littner 25-Apr-09 23 months 6 months None
N.M. Samuel 1-Sept-08 15 months 6 months None
A.H. Mallett 1-Sept-08 15 months 6 months None
Group policy on Executive 
Directors’ remuneration 
The objective of the Group’s remuneration 
policy is to provide a level of remuneration 
which will attract, retain and motivate 
Executive Directors and senior 
management of high quality.  
 
Share options and longer term incentives 
are used as part of the Group’s 
remuneration policy. The amounts 
involved and the frequency of issue 
endeavour to keep pace with current 
market practice.   
 
Share price performance  
The mid-market price on 28 February 
2009 was 42.0 pence. The lowest and 
highest prices during the year were 14.5 
pence and 177.5 pence.
The following graph shows the Company’s performance, measured by total shareholder 
return, compared with the performance of the FTSE Small Cap — General Retailers over 
the last five years.      
The Remuneration Committee has 
selected the above index as it is relevant 
for a company of Blacks’ size and is 
consistent with prior years.
200
180
160
140
120
100
80
60
40
20
0
Jan 04 Nov 04 Sept 05 July 06 May 07 Mar 08 Jan 09
Blacks Leisure FTSE S/C General Retailers
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
Directors’ Remuneration 
Report.
Variable Rewards   
Executive Directors’ bonus scheme 
Executive Directors are entitled to 
performance related bonuses that are 
payable based, in the main, upon the 
profit before interest and tax improvement 
of the Group, or individual Group 
companies, consistent with corporate 
financial targets as determined by 
the Remuneration Committee. The 
Remuneration Committee reviews 
performance against targets at the end 
of the year and may use its discretion to 
adjust measures and payments in view of 
operating circumstances during the year. 
Bonus payments are non-pensionable 
and are subject to approval by the 
Committee.
The achievement of the highest 
performance targets would entitle the 
Director to the maximum bonus payable 
of 100% of basic salary.  
 
Pension     
The Group made pension contributions 
of up to 20% of basic salary for the 
Executive Directors. These contributions 
are paid into the equivalent of money 
purchase pension schemes.  
Non-Executive Directors   
The remuneration of Non-Executive 
Directors is set by the Executive Directors 
and consists of fees for their services in 
connection with Board and Committee 
meetings and other relevant matters. 
Other matters    
The fees shown in respect of D.A. 
Bernstein are paid to a third party.
Audited information   
Directors’ remuneration  
An analysis of the Directors’ remuneration, excluding gains on the exercise of share options, is set out below:   
      
 Basic Variable Benefits Loss of    
 salary/fees rewards in kind office Total Total Pension Pension
 2009 2009 2009 2009 2009 2008 2009 2008
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
N.D. Gillis 314  50  6  —  370  90  45  11 
M.A. Lombardo 92  —  8  —  100  —  9  — 
D.A. Bernstein 85  —  —  —  85  85  —  — 
C.M. Littner 39  —  —  —  39  39  —  — 
N.M. Samuel 18  —  —  —  18  —  —  — 
A.H. Mallett 18  —  —  —  18  —  —  — 
K. Fleming 72  —  6  —  78  265  11  30 
D.J. Spurling 35  —  —  —  35  135  3  15 
C.R. Sherling 20  —  —  —  20  39  —  — 
D.G. Trangmar —  —  —  —  —  112  —  — 
R.S.M. Hardy —  —  —  —  —  335  —  15 
 693  50  20  —  763   68  
2008 819  —  31  250   1,100   71 
An equity-settled share-based payment charge of £295,000 (2008: £51,000) has been made to the income statement for the year 
in connection with the above Directors’ share options. No Directors made gains on the exercise of share options during the year 
(2008: nil).         
         
Benefits in kind relate solely to company cars, fuel and healthcare provisions.       
  
M.A. Lombardo was appointed to the Board on 20 August 2008.        
N.M. Samuel and A.H. Mallett were appointed to the Board on 27 August 2008.      
C.R. Sherling resigned from the Board on 27 August 2008.        
K. Fleming resigned from the Board on 29 May 2008.        
D.J. Spurling was removed from the Board on 28 May 2008.       
D.G. Trangmar resigned from the Board on 21 December 2007.        
R.S.M. Hardy resigned from the Board on 4 June 2007.        
 
Pension contributions were made with respect to four Directors (2008: four).       
  
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Our Governance
Our Financials
16362 11/06/2009 Proof 4
Share Incentive Plan 
On 28 August 2008 a one-off 
performance related incentive award was 
granted to M.A. Lombardo as a part of 
the remuneration package made available 
on his appointment as Finance Director. 
The award was considered appropriate in 
order to attract his services in the role of 
Finance Director and to incentivise him to 
grow the business and its profitability so 
that the Company’s share price rises over 
the next few years.    
   
The award is structured as a market value 
option over 300,000 ordinary shares in 
the Company, representing approximately 
0.7% of the issued share capital of the 
Company as at the date of grant of the 
option. The exercise price of the option is 
98.00p per ordinary share which reflects 
the market value of the shares at the date 
the option was granted. The option is 
24/25
exercisable over one third of the relevant 
shares on 20 November 2009, 
20 November 2010 and 20 November 
2011, provided the average closing 
share prices over any five consecutive 
dealing days falling after these 
anniversaries exceed 350p, 425p and 
500p respectively. If the first hurdle and/
or second hurdle are not achieved the 
relevant number of shares can be carried 
forward and the option exercised over 
those shares on later anniversaries, 
subject to the later hurdle being achieved
To the extent that the performance criteria 
are satisfied and the option is exercisable, 
the exercise of the option will be satisfied 
by the transfer of the relevant number 
of shares to M.A. Lombardo from the 
Company’s Employee Benefit Trust. No 
new shares will be issued to satisfy this 
option. Instead shares are acquired in the 
market by the Employee Benefit Trust. 
The option is exercisable in full if there is 
a change of control of the Company after 
20 November 2008.  
 
In the event of any variation in the share 
capital of the Company (arising from any 
reduction of capital or sub-division or 
consolidation of capital or issue of shares 
by way of capitalisation of profits or 
reserves or by way of rights), the number 
of shares subject to the option may be 
adjusted in such manner as in the opinion 
of the Auditors of the Company is fair and 
reasonable.   
 
No benefit under the award is 
pensionable.
The Directors, who served during the year, had the following interests in the Share Incentive Plan at 28 February 2009:  
 
 Year of Maximum Price Dates exercisable Dates exercisable
 grant number exercisable from to
N.D. Gillis 2007 1,000,000 250.43p 20-Nov-09 20-Nov-13
M.A. Lombardo 2008* 300,000 98.00p 20-Nov-09 20-Nov-13
* These options were granted during the current financial year.
No shares vested, exercised or lapsed during the year under the Share Incentive Plan.     
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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Share options
Shares granted under the option schemes 
have been granted by the Remuneration 
Committee to attract, retain and motivate 
participants to achieve corporate financial 
targets.    
 
The value of share options granted during 
the year is up to 100% of basic salary and 
the value of shares that will vest is subject 
to the following performance criteria.  
     
 
In the 91 day period following 
20 November 2011, the Remuneration 
Committee shall determine the number 
of shares over which options may be 
exercised by undertaking the steps set 
out below:
   
1  If the average closing share price over 
any five consecutive dealing days in 
the 91 day period after 20 November 
2011 exceeds 500p then the option 
may be exercised over all of the 
shares over which it is granted.  
  
2  If the condition in paragraph 1 is not 
met, but the average share price over 
any five consecutive dealing days in 
the 91 day period after 20 November 
2010 exceeds 425p then the option 
may be exercised over two thirds of 
the shares over which it is granted.  
   
3   If the condition in paragraph 2 is not 
met, but the average share price over 
any five consecutive dealing days in 
the 91 day period after 20 November 
2009 exceeds 350p then the option 
may be exercised over one third of 
the shares over which it is granted.  
   
4  If the condition in paragraph 3 is not 
met then no part of the option may be 
exercised and the option shall lapse 
91 days after 20 November 2011.  
   
Directors’ Remuneration 
Report.
The value of options granted annually, before 1 March 2008, is up to 66% of basic salary.
 
For options granted during the period of 1 March 2003 to 28 February 2008 the value of 
shares that will vest will be calculated as follows:
Extent to which the increase in Basic EPS exceeds the 
increase in RPI over the three-year period commencing 
1 March in the year of grant Vesting percentage
More than 3% compound per annum 75% 
More than 4% compound per annum 81% 
More than 5% compound per annum 88% 
More than 6% compound per annum 94% 
More than 7% compound per annum 100%
For options granted before 2003, 
performance conditions were selected 
to be in line with market practice at the 
date of grant. For options granted in 2001 
and 2002, over a period of three or four 
year continuous periods from a fixed start 
point of 1 March; and for 1999 and 2000 
grants over any three year continuous 
period after 1 March in the year of issue. 
Options granted before 2003 were 
exercisable if the Group’s earnings per 
share increased by an average of at least 
3% per annum above the increase in RPI 
over their performance period.  
    
There were no Directors who served 
during the year that had any interests 
in share options, other than the Share 
Incentive Plan, at 28 February 2009. No 
Directors who served during the year 
exercised options during the year.  
     
     
 
     
     
   
     
     
   
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Our Governance
Our Financials
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26/27
The following options lapsed for Directors who served during the year:    
    
 Year of Maximum Price
  grant number exercisable
K. Fleming Company Share Option Plan 2006 6,880 436.0p
 Executive Share Option Scheme 2006 22,638 436.0p
D.J. Spurling Company Share Option Plan 2000 10,772 278.5p
 Executive Share Option Scheme 1999 20,000 231.7p
  2000 22,238 278.5p
  2001 21,084 207.5p
  2002 21,212 247.5p
  2006 19,678 436.0p
Save As You Earn Scheme  2005 2,859 327.0p
  2007 4,873 197.0p
           
           
C.M. Littner           
Remuneration Committee Chairman          
29 May 2009           
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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Directors’ Report 
and Business Review.
The Directors present their Annual Report 
for the year ended 28 February 2009. 
 
Principal activities   
The Company is the parent company of a 
group engaged in the retail and wholesale 
of clothing and camping equipment.  
 
The Group comprises of two segments; 
Outdoor and Boardwear.  
 
Outdoor trades principally under 
the fascias Blacks and Millets, and 
Boardwear trades under the fascias 
Freespirit and O'Neill. The trade is 
principally from retail stores in the British 
Isles and associated direct sale internet 
sites. During the year the Group agreed 
the termination of its UK wholesale 
operation for O'Neill products which will 
cease as from 31 May 2009. 
Products and services  
The products sold by the Group are 
categorised as leisure goods.  
Blacks and Millets are famous for their 
camping equipment and outdoor clothing. 
The stores retail exclusive brands 
including Peter Storm and Eurohike, the 
UK’s most popular outdoor clothing and 
equipment brands. Other brands sold 
include Berghaus, North Face, Merrell, 
Coleman, Karrimor, Hi-Tec, Columbia and 
Craghoppers.     
 
The Freespirit and O’Neill stores are 
aimed at customers with a passion for 
high adrenaline sports including water 
and winter sports. These stores offer a 
comprehensive range of iconic brands 
such as Mambo, O'Neill, Animal, Oakley 
and Ripcurl.
Results and dividends   
The Group results for the year are shown 
on page 36.
The Directors do not recommend the 
payment of any dividend this year. Last 
year a total dividend of 3.0 pence per 
Ordinary Share was paid. 
Review of the business  
The review of the Group's activities, 
trading results, financial position at the 
year end and likely future developments, 
is contained in the Chairman's Statement, 
Chief Executive’s Review and Financial 
Review as detailed on pages 4 to 15. 
Other information required to be included 
in the Business Review, including key 
performance indicators, principal risks 
and uncertainties affecting the business, 
is set out below. Corporate social 
responsibility is detailed on pages 16 
and 17.     
 
Financial key performance 
indicators
The Directors and management monitor 
the Group's progress against its strategic 
objectives and the financial performance 
of the Group’s operations on a regular 
basis. Performance is assessed against 
budgets and forecasts using financial 
and non-financial measures. The key 
performance indicators which are 
monitored are set out below:
Total sales growth Growth in total sales.    
      
Like-for-like sales growth  The traditional retail measurement of the ability to grow sales year on year. The Group measures like-
for-like sales by the comparison of sales from individual stores that were trading in both the year under 
review and the previous comparative period and that had no material change that would affect the trade. 
   
Gross profit %  The Group defines gross profit % as the profit earned from the sale of an item. The profit earned is after 
charging the cost of the goods and any related costs such as freight charges and duty fees. It does 
not include the operational costs of the business.      
 
Operating profit Growth of operating profit enables the Group to invest in future growth and increase shareholder returns. 
   
Discussion of the above key performance indicators and the review of the business is detailed in the Chairman’s Statement, the Chief 
Executive’s Review and the Financial Review on pages 4 to 15. 
Other key performance indicators used by management internally include:
Earnings per share  The level of growth in earnings per share provides a suitable measure of the overall financial health of the 
Group and its ability to deliver shareholder returns.  
Net assets per share This measures the level of assets attributable to each share.     
    
Interest cover  The Group measures how many times it has the ability to cover the net interest costs by the operating 
profit generated in the period.    
       
Customer satisfaction Results of mystery shopper surveys.      
       
Staff turnover  Number of employees leaving as a % of the total workforce.    
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Our Governance
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Principal risks and uncertainties 
Risk is inherent in all businesses. The 
Board is continually reviewing and 
identifying the key business risks. 
Executive Directors and operational 
management are responsible for the 
implementation of robust processes to 
minimise the risk to the business. The 
Board takes an active role in reviewing the 
operational developments to ensure the 
risk is managed effectively.   
 
The key risks identified by the Board 
include:     
 
The economy
The economic environment impacts 
on retail spending. Unemployment 
levels, interest rates, consumer debt 
levels, availability of credit and many 
other factors can influence customers’ 
spending decisions. This is particularly so 
during the current economic environment. 
 
The Board recognises the need to 
monitor economic changes in order to 
react in the best interest of the Group by 
managing stock orders and realigning 
forecasts.    
 
Financing   
The Group’s banking arrangements 
have been extended to 31 August 2009. 
Discussions are ongoing to secure an 
appropriate long-term financial solution 
which will enable the Group to accelerate 
both the exit of the loss-making 
Boardwear business and the development 
of the Outdoor store portfolio.  
    
Product and pricing   
The customer expects quality products 
at competitive prices. The Group is 
continually developing its products to 
strive to meet customer expectation. The 
success of the Group depends upon the 
ability to react to the environment where 
normal weather patterns are changing. 
Product development is key in this area 
to ensure that whatever the weather the 
expectations of the customer for suitable 
quality products at competitive prices 
are met.
28/29
Competition  
The Group operates in a highly 
competitive market. New entrants are 
joining the clothing market on a regular 
basis and current competitors continue 
to improve their standards. The outdoor 
market has become more attractive to the 
large retailers, including supermarkets, 
which gives the Group a greater 
challenge in terms of pricing, while not 
compromising on quality.   
 
The Group monitors the activities of its 
competitors, both current and potential, 
and takes the appropriate action to 
ensure it remains competitive on price, 
quality and value for money.   
 
Suppliers and supply chain 
management   
The Group is dependent on its supplier 
base to deliver on time quality products. 
The Group continually reviews the 
supplier base to ensure suppliers have the 
ability to meet demand and remain price 
competitive.    
 
Warehousing and distribution 
The Group regularly reviews its 
warehousing and related logistic 
operations. The risks identified are those 
in relation to business interruption caused 
by physical property damage, warehouse 
system breakdowns, inefficient processes 
and delivery failures.   
   
IT systems and business 
continuity   
The Group is dependent upon the 
availability and integrity of key computer 
systems. Each business must record 
and process substantial volumes of data 
in a timely and accurate manner. The 
Group expects that key systems will 
require continual upgrades and ongoing 
investment, to ensure they meet the future 
needs of the business.   
  
    
 
Key personnel    
The success of the Group is enhanced 
by the retention of key management and 
technical personnel and on its ability to 
attract, motivate and retain employees of 
a high calibre. Share options and longer 
term incentives are used as part of their 
remuneration.    
    
Treasury and risk management 
The main financial risks to the Group 
relate to the availability of funds to meet 
the business needs. Foreign exchange 
rates are monitored and forward contracts 
are used to minimise the risk of currency 
fluctuations.   
 
The Group’s treasury policy allows the 
use of derivative financial instruments 
provided they are not entered into for 
speculative purposes.   
 
Capital risk management 
The Group manages its capital to ensure 
that entities in the Group will be able 
to continue as a going concern while 
maximising the return to stakeholders 
through the optimisation of the debt 
and equity balance. The Group’s 
overall strategy remains unchanged 
from 2008. 
   
In managing its capital, the Group’s 
primary objective is to ensure its 
continued ability to provide a consistent 
return for its equity shareholders through 
a combination of capital growth and 
distributions. In order to achieve this 
objective, the Group seeks to maintain 
a gearing ratio that balances risks and 
returns at an acceptable level and also 
to maintain a sufficient funding base to 
enable the Group to meet its working 
capital and strategic investment needs. 
In making decisions to adjust its capital 
structure to achieve these aims, either 
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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through altering its dividend policy, new 
share issues, or the reduction of debt, the 
Group considers not only its short-term 
position but also its long-term operational 
and strategic objectives.   
   
Financial instruments  
The Group’s policy on financial assets 
and liabilities is stated on page 45 and its 
interest in financial instruments is reported 
in the notes to the accounts.
Future developments
As noted in the Chairman’s Statement 
on page 5, the transfer of the O’Neill 
wholesale business has been agreed 
and a number of Boardwear stores have 
been rebranded to the Outdoor fascia. 
This rebranding programme is due to 
continue during the current financial year 
together with further development of 
existing stores in the Outdoor division. 
Although challenging market conditions 
are anticipated to continue, these 
developments should enable the Group 
to improve its performance in the 
coming year.
Contractual arrangements  
There are no persons with whom the 
Group has contractual arrangements 
which are essential to the Group’s 
business.
Payment policy   
The Group seeks to ensure that terms 
of payment specified and agreed with 
suppliers are not exceeded. Creditor days 
based on year end trade creditors for 
2009 were 47 days (2008: 52 days).  
   
The Company does not have any trade 
creditors and accordingly no creditor days 
figure has been disclosed.   
 
Donations   
During the year the Group made 
charitable donations totalling £100 (2008: 
£11,300). No political donations were 
made (2008: £nil).    
 
    
 
     
Directors’ Report 
and Business Review.
Directors
The names of the current Directors of 
the Company and their biographical 
details, including roles, responsibilities 
and significant external commitments, are 
given on page 18. M.A. Lombardo was 
appointed on 20 August 2008 and 
N.M. Samuel and A.H. Mallett were 
appointed on 27 August 2008. The other 
Directors served on the Board throughout 
the year. D.J. Spurling was removed as 
a Director on 28 May 2008, K. Fleming 
resigned on 29 May 2008 and C.R. 
Sherling resigned on 27 August 2008.
Details of the terms of appointment 
and notice period of each of the current 
Directors appear in the Directors’ 
Remuneration Report on pages 23 to 27. 
The provisions of the Company’s Articles 
of Association and of the Combined Code 
in respect of the retirement and re-election 
of Directors are set out in the Corporate 
Governance Statement on pages 19 to 
22. The Directors standing for re-election 
to the Board are set out in Notice of 
Annual General Meeting contained in the 
circular sent to shareholders with this 
report. Following performance evaluation, 
the Board considers that each of the 
Non-Executive Directors standing for re-
election continues to perform effectively 
and to demonstrate commitment to 
his role. The Board is satisfied that the 
Chairman has sufficient time to commit to 
the Company’s affairs notwithstanding his 
other business commitments.  
    
Directors’ interests in 
transactions   
There were no transactions in the year 
in which any Director had a material 
interest. 
   
Indemnification of Directors 
Qualifying third party indemnity provisions 
(as defined in Section 234 of the 
Companies Act 2006) are in force for 
Directors who held office during the year. 
    
Share capital   
The following information is given 
pursuant to section 992 of the Companies 
Act 2006.    
 
    
 
    
 
The Company’s share capital comprises 
Ordinary Shares of 50p each and 10% 
cumulative Preference Shares of £1 each. 
The rights and obligations attaching to the 
Company’s shares are summarised below 
and are set out in the Company’s Articles 
of Association which can be obtained 
from Companies House or by writing to 
the Company Secretary.
Holders of the Ordinary Shares have all 
the rights normally attaching to Ordinary 
Shares, including rights to receive the 
Company’s annual report, to attend and 
speak at General Meetings and to appoint 
proxies and exercise voting rights. The 
Company’s Ordinary Shares do not carry 
any special rights with regard to control 
of the Company. There are no restrictions 
on share transfers or voting. Ordinary 
Shares acquired through the Company’s 
share schemes rank pari passu with the 
Company’s Ordinary Shares in issue 
and have no special rights. Unless the 
Board decides otherwise, an Ordinary 
Shareholder may not vote at any General 
Meeting or class meeting or exercise 
any rights in relation to shares while any 
amount of money relating to his shares 
is outstanding.
The Preference Shares carry the right 
to receive a fixed dividend of 10% 
per annum paid in priority to a dividend 
on any other class of share, payable half-
yearly on 30 April and 31 October. The 
Preference Shares are non-redeemable. 
In the event of a return of capital or on a 
winding-up of the Company, Preference 
Shareholders are entitled to repayment 
of the nominal capital paid up on their 
shares, a premium of 5 pence per share 
and any arrears of dividend to the date 
of repayment in priority to any other 
class of share. Preference Shares do not 
carry any voting rights unless either the 
preference dividends are in arrears for at 
least six months or there is a resolution 
altering the rights of the holders of the 
Preference Shares, for the winding-up of 
the Company or for a return of capital. In 
such instances a Preference Shareholder 
shall have one vote on a show of hands 
or, in the event of a poll, ten votes for 
every Preference Share held.   
  
    
 
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Our Governance
Our Financials
16362 11/06/2009 Proof 4
30/31
There are no restrictions on the transfer 
of the Company’s shares other than 
certain restrictions which may be imposed 
pursuant to the Company’s Articles of 
Association, certain restrictions which 
may from time to time be imposed by 
laws and regulations (for example in 
relation to insider dealing), restrictions 
pursuant to share dealing codes whereby 
Directors and certain employees of the 
Company require prior approval to deal 
in the Company’s shares, and where a 
person has been served with a disclosure 
notice and has failed to provide the 
Company with information concerning the 
interests in those shares.   
    
Purchase of own shares 
At the Company’s Annual General 
Meeting held on 17 July 2008 the 
Company was authorised to make market 
purchases of up to 4,263,810 Ordinary 
Shares (representing approximately 10% 
of its issued Ordinary Share Capital). No 
such purchases were made during the 
year and no shares are held in treasury as 
at 28 February 2009. 
Blacks Leisure Group Employee 
Benefit Trust   
The Executive Directors of the Company, 
together with other employees of the 
Group, are potential beneficiaries of the 
Blacks Leisure Group Employee Benefit 
Trust (‘the Trust’) and, as such, are 
deemed to be interested in any Ordinary 
Shares held by the Trust. At 28 February 
2009 the Trust held 332,909 Ordinary 
Shares (2 March 2008: 332,909 
Ordinary Shares).   
   
Power of Directors  
The rules for appointment and 
replacement of Directors are detailed in 
the Company’s Articles of Association.  
  
Any changes to the Company’s Articles 
of Association must be approved 
by Shareholders in accordance with 
legislation in force from time to time.  
   
The Directors have authority to issue 
and allot Ordinary Shares, such authority 
being renewed annually at the Annual 
General Meeting.   
Change of control  
None of the Ordinary Shares, including 
those held by the Blacks Leisure Group 
Employee Benefit Trust, carries any 
special voting rights with regard to control 
of the Company.   
   
The Company is not party to any 
significant agreements that would take 
effect, alter or terminate upon a change 
of control of the Company following a 
takeover bid.   
 
Except as shown below, the Company 
does not have any agreements with 
any Director or employee providing 
compensation for loss of office or 
employment that occurs because of a 
takeover bid, except for provisions in the 
rules of the Company’s share schemes 
which may result in options granted to 
employees to vest on a takeover.  
   
N.D. Gillis is entitled to receive an 
enhanced payment in the event that a 
takeover bid for the Company results in a 
change of control prior to 19 November 
2011. M.A. Lombardo is entitled to 
receive a termination payment in the 
event that a takeover bid for the Company 
results in a change of control prior to 
29 April 2010.   
   
Directors’ responsibilities 
The Directors are responsible for keeping 
proper accounting records which disclose 
with reasonable accuracy at any time 
the financial position of the Group, for 
safeguarding the assets of the Company, 
for taking reasonable steps for the 
prevention and detection of fraud and 
other irregularities and for the preparation 
of a Directors’ Report and Directors’ 
Remuneration Report which comply with 
the requirements of the Companies 
Act 1985.   
   
   
   
   
   
   
   
The Directors are responsible for 
preparing the annual report and the 
financial statements in accordance with 
the Companies Act 1985. The Directors 
are also required to prepare financial 
statements for the Group in accordance 
with International Financial Reporting 
Standards as adopted by the European 
Union (IFRSs) and Article 4 of the IAS 
Regulation. The Directors have chosen 
to prepare financial statements for 
the Company in accordance with UK 
Generally Accepted Accounting Practice. 
   
Group financial statements 
IAS1 requires that financial statements 
present fairly for each financial year 
the Group’s financial position, financial 
performance and cash flows. This 
requires the faithful representation of 
the effects of transactions, other events 
and conditions in accordance with the 
definitions and recognition criteria for 
assets, liabilities, income and expenses 
set out in the International Accounting 
Standards Board’s ‘Framework for the 
preparation and presentation of Financial 
Statements’. In virtually all circumstances, 
a fair presentation will be achieved by 
compliance with all applicable IFRSs. 
A fair presentation also requires the 
Directors to:
l consistently select and apply 
appropriate accounting policies;  
   
l present information, including 
accounting policies, in a manner that 
provides relevant, reliable, comparable 
and understandable information; and 
  
l provide additional disclosures 
when compliance with the specific 
requirements in IFRS is insufficient 
to enable users to understand the 
impact of particular transactions, 
other events and conditions on the 
entity’s financial position and 
financial performance.  
 
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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Directors’ Report 
and Business Review.
Parent Company financial 
statements    
Company law requires the Directors to 
prepare financial statements for each 
financial year which give a true and fair 
view of the state of affairs of the Company 
and of the profit or loss of the Company 
for that period. In preparing these financial 
statements, the Directors are required to: 
   
l select suitable accounting policies 
and then apply them consistently;  
   
l prepare the financial statements on 
the going concern basis unless it is 
inappropriate to presume that the 
Company will continue in business;  
  
l make judgements and estimates that 
are reasonable and prudent; and  
   
l state whether applicable accounting 
standards have been followed, 
subject to any material departures 
disclosed and explained in the 
financial statements.   
  
Financial statements are published on 
the Group’s website in accordance 
with legislation in the United Kingdom 
governing the preparation and 
dissemination of financial statements, 
which may vary from legislation in 
other jurisdictions. The maintenance 
and integrity of the Group’s website is 
the responsibility of the Directors. The 
Directors’ responsibility also extends 
to the ongoing integrity of the financial 
statements contained therein.  
   
The Directors confirm to the best of their 
knowledge:   
   
l The Group financial statements have 
been prepared in accordance with 
International Financial Reporting 
Standards as adopted by the 
European Union (IFRSs) and Article 4 
of the IAS Regulation and give a true 
and fair view of the assets, liabilities, 
financial position and profit and loss of 
the Group.    
  
l The Directors’ Report includes a 
fair review of the development and 
performance of the business and the 
financial position of the Group and 
the Parent Company, together with a 
description of the principal risks and 
uncertainties that they face.
Disclosure of information 
to Auditors   
All the current Directors have taken 
all the steps that they ought to have 
taken to make themselves aware of any 
information needed by the Company’s 
Auditors for the purpose of their audit and 
to establish that the Auditors are aware 
of that information. The Directors are not 
aware of any relevant audit information of 
which the Auditors are unaware.  
   
Annual General Meeting 
The Annual General Meeting of the 
Company will be held at 12.00 noon on 
15 July 2009. The notice convening the 
meeting and the resolutions to be put to 
the meeting, together with explanatory 
notes, are given in the circular to 
Shareholders enclosed with this report.  
  
Auditors   
A resolution to reappoint BDO Stoy 
Hayward LLP as Auditors will be 
proposed at the next Annual General 
Meeting.   
   
Substantial interests in share capital
As at 28 May 2009, the Directors had been notified of the following:
   
Name Holding  %
Sportsworld International 12,503,071 29.32
Principle Capital Investment Trust plc 11,620,567 27.25
Schroders plc 2,149,868 5.04
Intrinsic Value Investors (IV) LLP 2,043,292 4.79
Polar Capital Forager Fund Ltd 1,425,000 3.34
           
Other than disclosed above, the Directors are not aware of any person holding, or beneficially interested in, 3% or more of the  
Ordinary Share capital of the Company.          
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Our Governance
Our Financials
16362 11/06/2009 Proof 4
32/33
Directors’ interests           
The Directors who held office at the end of the financial year had the following interests in the share capital of the Company:  
         
Ordinary Shares of 50p each:           
  28 February 2009  1 March 2008*
  Under  Under
 Issued option Issued option
D.A. Bernstein 200,000 — 200,000 —
C.M. Littner 15,000 — 15,000 —
N.D. Gillis 70,000 1,000,000 70,000 1,000,000
M.A. Lombardo — 300,000 — 300,000
N.M. Samuel — — — —
A.H. Mallett — — — — 
* Or date of appointment if later than 1 March 2008. 
 
The interests under options comprise potential share awards from the Share Incentive Plan scheme.
No Directors have held any beneficial interest in the shares of any of the subsidiary undertakings.
Further details of Directors’ share options are set out on pages 25 to 27.
By order of the Board
M.D. Beacham
Company Secretary
29 May 2009
Registered office:
440/450 Cob Drive
Swan Valley
Northampton
NN4 9BB
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
Independent Auditors’ Report 
to the Shareholders.
We have audited the Group and Parent 
Company financial statements (‘the 
financial statements’) of Blacks Leisure 
Group plc for the year ended 28 February 
2009 which comprise the Consolidated 
Income Statement, the Consolidated and 
Parent Company Balance Sheets, the 
Consolidated Cash Flow Statement, the 
Consolidated Statement of Recognised 
Income and Expense and the related 
notes. These financial statements have 
been prepared under the accounting 
policies set out therein.   
  
We have also audited the information in 
the Directors’ Remuneration Report that 
is described as having been audited.  
 
Respective responsibilities 
of Directors and Auditors 
The Directors’ responsibilities for 
preparing the annual report and Group 
financial statements in accordance with 
applicable law and International Financial 
Reporting Standards (IFRSs) as adopted 
by the European Union, and for preparing 
the Parent Company financial statements 
and Directors’ Remuneration Report 
in accordance with applicable law and 
United Kingdom Accounting Standards 
(United Kingdom Generally Accepted 
Accounting Practice) are set out in the 
Statement of Directors’ Responsibilities.  
 
Our responsibility is to audit the financial 
statements and the part of the Directors’ 
Remuneration Report to be audited 
in accordance with relevant legal and 
regulatory requirements and International 
Standards on Auditing (UK and Ireland). 
 
We report to you our opinion as to 
whether the financial statements give 
a true and fair view and whether the 
financial statements and the part of the 
Directors’ Remuneration Report to be 
audited have been properly prepared 
in accordance with the Companies Act 
1985 and whether, in addition, the Group 
financial statements have been properly 
prepared in accordance with Article 4 of 
the IAS Regulation. We also report to you 
whether, in our opinion, the information 
given in the Directors’ Report is consistent 
with the financial statements. In addition 
we report to you if, in our opinion, the 
Company has not kept proper accounting 
records, if we have not received all the 
information and explanations we require 
for our audit, or if information specified by 
law regarding Directors’ remuneration and 
other transactions is not disclosed. 
 
We review whether the Corporate 
Governance Statement reflects the 
Company’s compliance with the nine 
provisions of the 2006 Combined Code 
specified for our review by the Listing 
Rules of the Financial Services Authority, 
and we report if it does not. We are not 
required to consider whether the Board’s 
statements on internal control cover all 
risks and controls, or form an opinion on 
the effectiveness of the Group’s corporate 
governance procedures or its risk and 
control procedures.   
 
We read other information contained in 
the annual report and consider whether 
it is consistent with the audited financial 
statements. This other information 
comprises only the Chairman’s 
Statement, the Chief Executive’s Review, 
the Financial Review, the Corporate Social 
Responsibility Statement, the Corporate 
Governance Statement, the unaudited 
part of the Directors’ Remuneration 
Report and the Directors’ Report. We 
consider the implications for our report 
if we become aware of any apparent 
misstatements or material inconsistencies 
with the financial statements. Our 
responsibilities do not extend to any other 
information.    
 
Our report has been prepared pursuant 
to the requirements of the Companies 
Act 1985 and for no other purpose. No 
person is entitled to rely on this report 
unless such a person is a person entitled 
to rely upon this report by virtue of and for 
the purpose of the Companies Act 1985 
or has been expressly authorised to do 
so by our prior written consent. Save as 
above, we do not accept responsibility for 
this report to any other person or for any 
other purpose and we hereby expressly 
disclaim any and all such liability.  
   
    
 
    
 
    
 
    
 
Basis of audit opinion   
We conducted our audit in accordance 
with International Standards on Auditing 
(UK and Ireland) issued by the Auditing 
Practices Board. An audit includes 
examination, on a test basis, of evidence 
relevant to the amounts and disclosures 
in the financial statements and the part of 
the Directors’ Remuneration Report to be 
audited. It also includes an assessment 
of the significant estimates and 
judgements made by the Directors in the 
preparation of the financial statements, 
and of whether the accounting policies 
are appropriate to the Group’s and 
Company’s circumstances, consistently 
applied and adequately disclosed.  
   
We planned and performed our audit 
so as to obtain all the information and 
explanations which we considered 
necessary in order to provide us with 
sufficient evidence to give reasonable 
assurance that the financial statements 
and the part of the Directors’ 
Remuneration Report to be audited are 
free from material misstatement, whether 
caused by fraud or other irregularity or 
error. In forming our opinion we also 
evaluated the overall adequacy of the 
presentation of information in the financial 
statements and the part of the Directors’ 
Remuneration Report to be audited. 
 
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Our Business
Our Governance
Our Financials
34/35
Opinion    
In our opinion:    
 
l the Group financial statements give a 
true and fair view, in accordance with 
IFRSs as adopted by the European 
Union, of the state of the Group’s 
affairs as at 28 February 2009 and of 
its loss for the year then ended;  
   
l the Group financial statements have 
been properly prepared in accordance 
with the Companies Act 1985 and 
Article 4 of the IAS Regulation;  
  
l the Parent Company financial 
statements give a true and fair view, 
in accordance with United Kingdom 
Generally Accepted Accounting 
Practice, of the state of the Parent 
Company’s affairs as at 28 February 
2009;
l the Parent Company financial 
statements and the part of the 
Directors’ Remuneration Report to be 
audited have been properly prepared 
in accordance with the Companies 
Act 1985; and
l the information given in the Directors’ 
Report is consistent with the financial 
statements.    
 
Emphasis of matter —  
going concern    
In forming our opinion on the financial 
statements, which is not qualified, we 
have considered the adequacy of the 
disclosures made in note 2 to the financial 
statements concerning the Group’s ability 
to continue as a going concern. The 
Group is reliant on the continuing support 
of its bankers. The current loan facility 
expires on 31 August 2009 and, although 
the Directors expect to be able to renew 
the facility on similar terms, they have no 
binding agreement from the bank.   
 
These conditions along with other matters 
disclosed in note 2 to the financial 
statements, indicate the existence of 
a material uncertainty which may cast 
significant doubt about the Group’s 
ability to continue as a going concern. 
The financial statements do not include 
the adjustments that would result if the 
Group was unable to continue as a going 
concern.    
 
BDO Stoy Hayward LLP  
Chartered Accountants and 
Registered Auditors   
Epsom     
29 May 2009    
 
     
    
 
    
 
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
for the year ended 28 February 2009
 
Consolidated Income Statement.
  Year ended Year ended
  28 February 2009 1 March 2008
  Total Total
 Note £’000 £’000
Revenue 4 267,551  294,414 
Cost of sales  (122,387) (136,322)
Gross profit  145,164  158,092 
Other income 4 1,196  1,476 
Distribution costs  (142,801) (151,807)
Administrative expenses  (15,601) (15,176)
Operating loss 6 (12,042) (7,415)
Analysed as:
Operating (loss)/profit excluding exceptional items  (4,465) 2,181 
Exceptional items 8 (7,577) (9,596)
  (12,042) (7,415)
Finance costs 9 (3,981) (2,698)
Finance income 9 1,607  853 
Loss before tax   (14,416) (9,260)
Tax (expense)/credit 10 (345) 3,209 
Analysed as:
Tax (expense)/credit excluding exceptional items  (1,509) 1,503 
Tax credit on exceptional items  1,164  1,706 
  (345) 3,209 
Loss for the year attributable to equity holders of the parent  (14,761) (6,051)
Loss per share (pence) 11  
— Basic  (34.63) (14.20)
— Diluted  (34.63) (14.20)
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36/37
for the year ended 28 February 2009
Consolidated Statement of 
Recognised Income and Expense.
  Year ended Year ended 
  28 February 2009 1 March 2008 
 Note £’000 £’000 
Transferred to the carrying amount of hedged items  (694) 166  
Tax on items transferred to equity  194  (50) 
Gains relating to designated cash flow hedges  1,256  694  
Tax on items taken directly to equity  (352) (194) 
Net income recognised directly in equity  404  616  
Loss for the year attributable to equity holders of the parent 23 (14,761) (6,051) 
Total recognised expense for the year 23 (14,357) (5,435) 
    
Our Business
Our Governance
Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
as at 28 February 2009
 
Consolidated Balance Sheet.
   Restated
  2009 2008
 Note £’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 13 32,556  36,929 
Goodwill 14 34,598  36,352 
Other intangible assets 15 988  1,571 
Deferred income tax asset 10 2,693  3,600 
Total non-current assets  70,835  78,452 
Current assets
Inventories 17 50,140  56,039 
Trade and other receivables 18 10,563  14,168 
Derivative financial instruments 32 1,256  694 
Cash and cash equivalents 19 1,385  565 
Total current assets  63,344  71,466 
TOTAL ASSETS  134,179  149,918 
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent   
Share capital 20 21,319  21,319 
Share premium 21 24,333  24,333 
Reserve for own shares 22 (773) (773)
Hedging reserve 23 904  500 
Retained earnings 23 23,188  38,053 
TOTAL EQUITY  68,971  83,432 
Non-current liabilities   
Preference shares 20 891 891 
Accruals and deferred income  6,028  6,054 
Obligations under finance leases 25 2,335  3,454 
Long-term provisions 27 8,195  8,115 
Total non-current liabilities  17,449  18,514 
Current liabilities   
Trade and other payables 26 36,426  41,060 
Bank overdrafts 24 5,325  1,318 
Obligations under finance leases 25 1,147  1,061 
Short-term provisions 27 4,861  4,533 
Total current liabilities  47,759  47,972 
TOTAL LIABILITIES  65,208  66,486 
TOTAL EQUITY AND LIABILITIES  134,179  149,918 
   
The financial statements were approved by the Board and authorised for issue on 29 May 2009.   
They were signed on its behalf by:   
   
N.D. Gillis   
Chief Executive   
   
M.A. Lombardo   
Finance Director   
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38/39
for the year ended 28 February 2009
  Year ended Year ended
  28 February 2009 1 March 2008
 Note £’000 £’000
Cash flows from operating activities
Net loss before income taxes  (14,416) (9,260)
Adjustments for:
 Net finance cost  2,374  1,845 
 Loss on disposal of property, plant and equipment  600  110 
 Depreciation and amortisation   8,805  9,763 
 Impairment of property, plant and equipment  423  110 
 Impairment of goodwill  1,754  — 
 Equity-settled share-based payments expense  322  121 
 Release of capital receipts  (152) (116)
Operating (loss)/profit before working capital changes  (290) 2,573 
 Decrease in inventories  5,899  4,584 
 Decrease in trade and other receivables  1,956  2,792 
 (Decrease)/increase in trade and other payables  (4,985) 5,953 
 (Decrease)/increase in provisions  (408) 1,319 
Cash generated from operations  2,172  17,221 
Interest paid  (2,690) (2,742)
Tax received/(paid)  2,056  (41)
Net cash generated from operating activities  1,538  14,438 
Cash flows from investing activities   
Purchase of property, plant and equipment  (5,135) (5,367)
Purchase of intangible assets  —  (1,044)
Proceeds from disposal of property, plant and equipment  263  — 
Interest received  1,607  853 
Net cash used in investing activities  (3,265) (5,558)
Cash flows from financing activities
Proceeds from issue of share capital  —  29 
Purchase of own shares  —  (372)
Dividends paid 12 (426) (1,705)
Payment of finance lease liabilities  (1,034) (1,021)
Net cash used in financing activities  (1,460) (3,069)
Net (decrease)/increase in cash and cash equivalents  (3,187) 5,811 
Cash and cash equivalents at the beginning of the year  (753) (6,564)
Cash and cash equivalents at the end of the year 19 (3,940) (753)
Consolidated Cash Flow Statement.
Our Business
Our Governance
Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
1 General information
 Blacks Leisure Group plc is a company incorporated in the United Kingdom under the Companies Act 1985. The address of 
the registered office is given on page 18. The nature of the Group’s operations and its principal activities are set out in the Chief 
Executive’s Review and Financial Review on pages 10 to 15 and the Directors’ Report and Business Review on pages 28 to 33.
The adoption by the Group of IFRS8 is anticipated to change certain disclosures made in the financial statements. IFRS8 requires 
segmental information to be reported in financial statements based on how that information is reported internally. This may result in 
changes to segmental disclosures in the financial statements, although it is noted that IFRS8 will not be mandatory for the Group 
until the year ending 28 February 2010.
As at the date of authorisation of these financial statements, the following Standards and Interpretations, issued by the International 
Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) have not yet been 
adopted by the Group. Those indicated with an asterisk have not yet been endorsed for use in the EU:
IAS1  Amendment — Presentation of financial statements: a revised presentation (effective for annual periods beginning on or 
after 1 January 2009).
Improvements to IFRS (2009) comprising amendments to:
IAS16 Property, plant and equipment (effective for annual periods beginning on or after 1 January 2009).
IAS19 Employee benefits (effective for annual periods beginning on or after 1 January 2009).
IAS36 Impairment of assets (effective for annual periods beginning on or after 1 January 2009).
IAS38  Intangible assets (effective for annual periods beginning on or after 1 January 2009).
IAS39 Financial instruments: Recognition and measurement (effective for annual periods beginning on or after 1 January 2009).
IFRS5  Revised — Non-current assets held for sale and discontinued operations (effective for annual periods beginning on or 
after 1 July 2009).
IAS23 Amendment — Borrowing costs (effective for annual periods beginning on or after 1 January 2009). 
IAS27  Amendment — Consolidated and separate financial statements (effective for annual periods beginning on or after 
1 January 2009).
IAS27*  Amendment — Consolidated and separate financial statements (effective for annual periods beginning on or after 
1 July 2009).
IAS32  Amendment relating to puttable instruments and obligations arising on liquidation (effective for annual periods beginning 
on or after 1 January 2009).
IAS39 and IFRS7 
 Reclassification of financial instruments (effective from 1 July 2008).
IAS39 and IFRS7 
 Reclassification of financial instruments — Effective date and transition (effective from 1 July 2008).
IAS39* Amendment — Eligible hedged items (effective for annual periods beginning on or after 1 July 2009).
IAS39 Amendment — Financial instruments: Eligible hedged items (effective for annual periods beginning on or after 
 1 July 2009). 
IFRS1*  Amendment — First time adoption of International Financial Reporting Standards (effective for annual periods beginning 
on or after 1 January 2009).
IFRS2  Amendment — Share-based payments: Vesting conditions and cancellations (effective for annual periods beginning on or 
after 1 January 2009).
IFRS3* Revised — Business combinations (effective for annual periods beginning on or after 1 July 2009). 
IFRS7*  Amendment — Financial instruments: Improving disclosures (effective for annual periods beginning on or after 
1 January 2009). 
IFRS8 Operating segments (effective for annual periods beginning on or after 1 January 2009).
IFRIC9* IAS 39 Amendment — Embedded derivatives (effective for annual periods beginning on or after 1 July 2009).
IFRIC13 Customer loyalty programmes (effective for annual periods beginning on or after 1 July 2008).
IFRIC17* Distributions of non-cash assets to owners (effective for annual periods beginning on or after 1 July 2009).
IFRIC18* Transfer of assets from customers (effective for annual periods beginning on or after 1 July 2009).
Improvements to IFRS (2010)*
 Amendments to various standards (generally effective for annual periods beginning on or   after 1 January 2010).
The Group does not anticipate that the adoption of these standards or interpretations will have a material impact on the 
consolidated results or financial position of the Group.
for the year ended 28 February 2009
Notes to the Financial Statements.
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2 Accounting policies
Basis of preparation   
The consolidated financial statements for the 52 weeks ended 28 February 2009 have been prepared in accordance with the 
accounting policies and presentation required by the International Financial Reporting Standards, incorporating International 
Accounting Standards (IAS) and Interpretations (collectively IFRS), as endorsed by the European Union and therefore comply with 
Article 4 of the EU IAS Regulation.   
The consolidated financial statements have been prepared on a historical cost basis except for derivative financial instruments and 
equity-settled share-based payments that have been measured at fair value. The consolidated financial statements are presented in 
pounds sterling and all values are rounded to the nearest thousand except when otherwise indicated.   
The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates 
and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and the reported amounts of 
revenues and expenses during the reporting year. These estimates and assumptions are set out in note 3. Although these estimates 
are based on management’s best knowledge of the amount, events or actions, actual results may differ from those estimates.  
 
The comparative figures for the 52 weeks ended 1 March 2008 have been restated following a review into negative stock balances 
within the stock system during the current period. It was identified that a previous release of stock credit balances of £1,094,000 in 
the year ended 3 March 2007 was incorrect. This has been corrected as a prior year restatement by reducing the brought forward 
3 March 2007 retained earnings balance and reducing the stock balance and retained earnings balance at 1 March 2008 by this 
amount.
The principal accounting policies adopted are set out below.
Basis of consolidation 
The consolidated financial statements incorporate the accounts of the Company and its subsidiaries as if they formed a single entity 
(‘the Group’). Intercompany transactions, balances, income and expenses between Group companies are therefore eliminated in full 
on consolidation.
Going concern
In determining the appropriate basis of preparation of financial statements, the Directors are required to consider whether the Group 
can continue in operational existence for the foreseeable future.
The Group and Lloyds Banking Group are engaged in discussions regarding provision of a financial structure which will enable the 
Group to accelerate both the exit of the loss-making Boardwear division and the development of the Outdoor store portfolio.
In order to provide the Group with a stable platform whilst working towards an appropriate long-term financing solution, Lloyds 
Banking Group continues to provide a £35m banking facility, extending the term until 31 August 2009. 
Having reviewed the current cash flow projections, and having made reasonable enquiries in making the underlying key assumptions 
on sales growth, the Directors have a reasonable expectation that the Group will be able to meet its liabilities as they fall due for 
the foreseeable future. It is on this basis that the Directors consider it appropriate to prepare the Group’s consolidated financial 
statements on the going concern basis. However, the Directors recognise that there is a material uncertainty, of the bank facility not 
being extended beyond 31 August 2009, that may cast significant doubt on the Group’s ability to continue as a going concern, and 
therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
Our Business
Our Governance
Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
16362 11/06/2009 Proof 4
2 Accounting policies - continued
There is a risk that the above material uncertainties as to the Group’s ability to continue as a going concern may not be resolved 
satisfactorily. The financial statements do not include the adjustments that would result if the Group were unable to continue as a 
going concern, which would include writing down the carrying value of assets, including goodwill, to their recoverable amount and 
providing for any further liabilities that might arise.
 The Board understands that the bank is supportive of the turnaround strategy of the business and would be willing to consider 
providing an increase on the current facility level to undertake the necessary investment plans subject to the provision of medium-
term projections necessary to support the proposals.
The extension of the facility aims to provide an adequate time period to allow the planned discussions to take place.
New accounting standards   
IFRIC11 IFRS2 — Group and treasury share transactions and IFRIC12 Service concession arrangements became effective in the 
current financial year but had no impact on the Group’s accounting policies.
 The Gr oup has not adopted early IFRS8 Operating segments, which is effective for the Group’s financial statements from the year 
ending February 2010, which is not expected to have a significant impact on the Group’s accounting policies or measurement of 
results or net assets.   
   
Intangible assets   
Goodwill   
Goodwill arising on acquisition is capitalised and represents the excess of the cost of acquisition over the Group’s interest in the fair 
value of the identifiable assets, liabilities and contingent liabilities of a subsidiary at the date of acquisition. Goodwill is reviewed for 
impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. 
Goodwill arising before the transition to IFRS has been retained at the previous UK GAAP amount subject to being tested for 
impairment at that date.   
  
Internally-generated intangible assets 
An internally-generated intangible asset arising from the Group’s development (from the development phase of an internal project) 
shall be recognised if, and only if, all the conditions below, from IAS38, can be demonstrated:  
   
— the technical feasibility of completing the intangible asset so that it will be available for use or sale;  
— its intention to complete the intangible asset and use or sell it;  
— its ability to use or sell the intangible asset;  
—  how the intangible asset will generate probable future economic benefits. Among other things, the Company can demonstrate 
the existence of a market for the output of the intangible asset itself or, if it is to be used internally, the usefulness of the 
intangible asset;  
—  the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible 
asset; and  
— its ability to measure reliably the expenditure attributable to the intangible asset during its development.  
Internally-generated intangible assets are amortised on a straight-line basis over their useful lives of three years. Where no asset can 
be recognised, then the expenditure is recognised as an expense in the period in which it occurred.  
  
Trademarks  
Trademarks are measured initially at purchase cost and are amortised on a straight-line basis over their estimated useful lives of 
between five and ten years.   
  
Property, plant and equipment  
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment in value. Depreciation is 
calculated on a straight-line basis over the estimated useful life of the asset as follows:  
  
Freehold land is not depreciated.   
  
Freehold buildings are depreciated to their estimated residual values over periods up to 50 years.
  
   
for the year ended 28 February 2009
Notes to the Financial Statements.
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2 Accounting policies - continued 
Leasehold improvements are depreciated to their estimated residual values over the period of the lease or over the asset life 
if shorter.   
   
Fixtures and equipment are depreciated over four to fifteen years.   
Motor vehicles are depreciated over four to six years.
   
The carrying values of property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate 
that their carrying value may not be recoverable. Any impairment in the value of property, plant and equipment is charged to the 
income statement.
Profits and losses on disposal of property, plant and equipment reflect the difference between net selling price and the carrying 
amount at the date of disposal and are recognised in the income statement.   
   
Impairment — non-financial assets   
The carrying values of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If 
any such indication exists, the recoverable amount of the asset is estimated. Where the asset does not generate cash flows which 
are independent from other assets, the recoverable amount of the cash-generating unit to which the asset belongs is estimated.   
  
The recoverable amount of a non-financial asset is the higher of its fair value less costs to sell and its value-in-use. Value-in-use is 
the present value of the future cash flows expected to be derived from an asset or cash-generating unit.   
    
An impairment loss is recognised in the income statement whenever the carrying amount of an asset or cash-generating unit 
exceeds its recoverable amount.   
   
Goodwill is tested for impairment annually and whenever there is an indication that the asset may be impaired. Any impairment 
recognised on goodwill is not reversed.   
   
Inventories    
Inventories are stated at the lower of cost and net realisable value. The cost includes all costs in bringing each product into the 
business. Inventories are valued on a weighted average basis and not deemed to be materially different to the first in, first out 
basis. Net realisable value is the estimated selling price less any costs of disposal. Provision is made for obsolete, slow moving or 
damaged items where appropriate.   
   
Provisions   
Provisions for onerous leases are recognised for the expected lease or lease related payments that the Group will incur prior to 
assignment, sub-lease or lease expiry plus any additional costs in relation to the disposal of the lease.   
   
Provisions for leasehold dilapidations are recognised when the Group has a present legal or constructive obligation as a result of a 
past event; it is probable that an outflow of resources will be required to settle the obligation; and a reliable estimate can be made 
of the amount of the obligation. The provision is instigated by the serving of a dilapidations schedule upon the Company by the 
landlord and that schedule of works is used to calculate the level of the provision.   
   
Foreign currency translation    
Assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange quoted at the balance 
sheet date. Day to day transactions are recorded in sterling at the rates ruling on the date of those transactions. All realised gains 
and losses are taken to the income statement.   
   
Our Business
Our Governance
Our Financials
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2 Accounting policies - continued 
Revenue recognition    
Revenue represents goods sold to external customers, less returns and Value Added Tax. The revenue arises from the sale of 
Outdoor and Boardwear clothing, footwear and equipment. Revenue is recognised in the income statement when the significant 
risks and rewards of ownership have been transferred.   
   
Leases   
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. 
All other leases are classified as finance leases. Rental payments in respect of operating leases are charged against operating profit 
on a straight-line basis over the period of the lease. Lease incentives are credited over the lease term on a straight-line basis unless 
another systematic basis is representative of the time pattern of the lessee’s benefit from the use of the leased asset.  
 
Assets used by the Group which have been funded through finance leases are capitalised in property, plant and equipment and the 
resulting lease obligations are included in payables. The assets are depreciated over their useful lives and the interest element of 
the rental obligations is charged to the income statement over the period of the lease and represents a constant proportion of the 
balance of capital repayments outstanding.   
   
Capital receipts   
Capital receipts are a form of lease inducement received in cash which are credited to operating profit on a straight-line basis over 
the full term of the lease.   
Exceptional Items   
These are material items which derive from events or transactions that fall within the ordinary activities of the Group but are not
directly related to the delivery of the Group’s products to its customers and which individually or, if of a similar type, in aggregate, 
merit separate presentation by virtue of their size or incidence to allow shareholders to understand better the elements of financial 
performance in the year, to facilitate comparison with prior periods and to assess better trends in financial performance. These items 
are usually derived from one-off events or a change in assumptions made in critical accounting estimates and judgements.  
 
Pensions and other post-employment benefits    
The Group operates defined contribution schemes. The assets of the schemes are held separately from those of the relevant 
companies.   
   
Contributions to the defined contribution schemes are charged to the income statement in the year in which they become payable.  
 
Equity-settled share-based payment transactions
Certain employees and Directors of the Group receive equity-settled remuneration in the form of equity-settled share-based 
payment transactions, whereby employees render services in exchange for shares or rights over shares. The cost of equity-settled 
transactions with employees is measured by reference to the fair value, determined using the Black–Scholes model or the Binomial 
model as appropriate, at the date at which they are granted. The cost of equity-settled transactions is recognised, together with a 
corresponding increase in equity, over the period in which the non-market vesting conditions are expected to be fulfilled, ending on 
the relevant vesting date. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting 
date reflects the extent to which the vesting period has expired and is adjusted to reflect the Directors’ best available estimate of the 
number of equity instruments that will ultimately vest based upon non-market conditions.   
   
Where the terms and conditions of options are modified before they vest, the movement in the fair value of the options, measured 
immediately before and after the modification, is also charged to the income statement over the remaining vesting period.  
 
The Group has taken advantage of the transitional provisions of IFRS2 in respect of equity-settled awards and has applied IFRS2 
only to equity-settled awards granted after 7 November 2002 that had not vested before 1 January 2005.   
   
Shares held by Blacks Leisure Group Employee Benefit Trust   
The Blacks Leisure Group Employee Benefit Trust provides for the issue of shares to Group employees under the Share Incentive 
Plan and, where deemed appropriate, under other share option schemes. Shares in the Company held by the trust are included in 
the balance sheet, under ‘Reserve for own shares’, at cost as a deduction from equity.   
   
for the year ended 28 February 2009
Notes to the Financial Statements.
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Our Governance
Our Financials
44/45
2 Accounting policies - continued  
Tax   
The tax charge represents both the income tax payable, based on profits for the year, and deferred tax. Deferred tax is recognised 
in full in respect of all temporary differences between the tax base of the Group’s assets and liabilities and their carrying amounts 
that have originated, but not been reversed by the balance sheet date. No deferred tax is recognised if the temporary difference 
arises from goodwill or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the 
time of the transaction, affects neither the accounting profit nor the taxable profit or loss. Deferred tax is recognised in respect of 
taxable temporary differences associated with investments in subsidiaries except where the timing of the reversal of the temporary 
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.  
 
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible 
temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each balance sheet date and 
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax 
asset to be utilised.  
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or 
the liability is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date.
 
Tax relating to items recognised directly in equity is recognised in equity and not in the income statement.
Financial instruments   
Trade and other receivables   
Trade receivables are recognised and carried at original invoice amount less an allowance for any uncollectable amounts. An 
estimate for doubtful debts is made when objective evidence of an impairment exists. Bad debts are written off when identified.  
 
Cash and cash equivalents   
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original 
maturity of three months or less. For the purpose of the consolidated cash flow statement, cash and cash equivalents consist of 
cash and cash equivalents as defined above, net of outstanding bank overdrafts.   
   
Other financial liabilities   
Trade payables are recognised and carried at original invoice cost and are a short-term liability of the Group. Preference Shares 
are recognised at the amount advanced where this represents fair value. Preference Shares are subsequently accounted for at 
amortised cost.   
   
Derivative financial instruments and hedge accounting   
Derivative financial instruments used by the Group are stated at fair value. Hedges are classified as either fair value hedges when 
they hedge the exposure to changes in the fair value of a recognised asset or liability; or cash flow hedges where they hedge 
exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a 
forecasted transaction.   
   
Gains or losses from remeasuring fair value hedges, which meet the conditions for hedge accounting, are recorded in the income 
statement, together with the corresponding changes in the fair value of the hedged instruments attributable to the hedged risk.   
 
The portion of any gains or losses of cash flow hedges, which meet the conditions for hedge accounting and are determined to be 
effective hedges, are recognised directly in equity. The gains or losses relating to the ineffective portion are recognised immediately 
in the income statement.    
   
Our Business
Our Governance
Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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2 Accounting policies - continued  
When the hedged firm commitment results in the recognition of an asset or a liability then, at the time the asset or liability is 
recognised, the associated gains or losses that had previously been recognised in equity are included in the initial measurement of 
the acquisition cost or other carrying amount of the non-financial asset or liability. For all other cash flow hedges, the gains or losses 
that are recognised in equity are transferred to the income statement in the same year in which the hedged firm commitment affects 
the net profit and loss.    
   
For derivatives that do not qualify for hedge accounting, any gains or losses arising from changes in fair value are recognised 
immediately in the income statement.   
   
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies 
for hedge accounting. At that point in time, any cumulative gain or loss on the hedging instrument recognised in equity is kept in 
equity until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss 
recognised in equity is transferred to the income statement.    
   
3 Critical accounting estimates and judgements  
The preparation of consolidated financial statements under IFRS requires the Group to make estimates and assumptions that affect 
the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on historical 
experience and other factors including expectations of future events that are believed to be reasonable under the circumstances. 
Actual results may differ from these estimates. The estimates and assumptions which have a significant risk of causing a material 
adjustment to the carrying amount of assets and liabilities are outlined below.   
   
Impairment of goodwill   
The Group is required to test, at least annually, whether goodwill has suffered any impairment. The recoverable amount is 
determined based on value-in-use calculations. The use of this method requires the estimation of future cash flows and the choice 
of a suitable discount rate in order to calculate the present value of these cash flows. Actual outcomes could vary.  
 
Impairment of property, plant and equipment   
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount 
may not be recoverable. When a review for impairment is conducted, the recoverable amount is determined based on value-in-use 
calculations prepared on the basis of management’s assumptions and estimates.   
   
Depreciation of property, plant and equipment   
Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in note 2. 
The selection of these estimated lives requires the exercise of management judgement.   
   
Inventory valuation   
Inventories are valued at the lower of weighted average cost and net realisable value. Net realisable value includes, where necessary, 
provisions for slow moving and damaged stocks. The provision represents the difference between the cost of stock and its 
estimated market value, based on ageing. Calculation of these provisions requires judgements to be made, which include forecast 
consumer demand, the promotional, competitive and economic environment, and inventory loss trends.   
   
Equity-settled share-based payments   
The charge for equity-settled share-based payment is calculated in accordance with estimates and assumptions which are 
described in note 29. The option valuation models used require highly subjective assumptions to be made including the future 
volatility of the Company’s share price, expected dividend yields, risk-free interest rates and expected staff turnover. The Directors 
draw upon a variety of external sources to aid them in the determination of the appropriate data to use in such calculations.    
 
The option pricing models used are the Black–Scholes option pricing model and the Binominal model that reflect the nature of the 
share schemes.
for the year ended 28 February 2009
Notes to the Financial Statements.
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3 Critical accounting estimates and judgements - continued
 During the vesting period of the share options, an assessment is required of the likelihood of whether non-market performance 
conditions will be met, which affects the estimate of the number of share options that will vest and hence the amount charged to 
the income statement.   
   
Provisions and accruals for onerous leases   
If the Group vacates or plans to vacate a store or other property prior to the expiry of the related lease, it records a provision for 
the expected lease or lease related payments that the Group will incur prior to assignment or sub-lease of the property plus any 
inducement that may be required, and for any expected shortfall in amounts that are anticipated to be receivable from a sub-lease. 
Such a calculation requires a judgement as to the timing and duration of the expected vacancy periods and the amount and timing 
of future potential sub-lease income. When making these judgements the Directors consider a number of factors, including the 
landlord, the location and condition of the property, the terms of the lease, the specific marketplace demand and the economic 
environment.   
   
Dilapidations   
Dilapidations are provided for remedial works required to bring a leased property back into the same condition as when the lease 
commenced. Provisions are calculated by reference to the serving of a dilapidations schedule upon the Company by the landlord.  
 
Exceptional items   
These are material items which derive from events or transactions that fall within the ordinary activities of the Group and which 
individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence if the financial statements 
are to give a true and fair view.   
Our Business
Our Governance
Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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4 Revenue and other operating income
  2009 2008
  £’000 £’000
Sale of goods  267,551  294,414 
Other operating income  1,196  1,476 
 
Other operating income consists of sub-let property income amounting to £1,191,000 (2008: £1,476,000) and other operating income.  
    
5 Segment information     
 The Gr oup’s primary reporting format is market segments. The operating market segments are organised and managed separately 
according to the nature of the products and services provided, with each segment representing a strategic business unit that offers 
different products and serves different markets. All activity occurred in the British Isles.
The Group has two core areas of operation:
     
Operation Nature of operation    
Outdoor Outdoor clothing, footwear and equipment retailer    
Boardwear  Boardwear clothing, footwear and equipment retailer and UK distributor and retailer of O’Neill products   
  
 Inter-segment sales between business segments are entered into on an arm’s length basis in a manner similar to transactions with 
third parties.  
  
The following tables present revenue and profit information and certain asset and liability information regarding business segments 
for the years ended 28 February 2009 and 1 March 2008:
    2009     2008
 Outdoor Boardwear Unallocated Total Outdoor Boardwear Unallocated Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Revenue         
Total revenue 220,176  50,336  —  270,512  231,064  66,589  —  297,653 
Inter-segment sales —  (2,961) —  (2,961) —  (3,239) —  (3,239)
Sales to external 
customers 220,176  47,375  —  267,551  231,064  63,350  —  294,414 
         
Profit         
Segment profit/(loss) 6,283  (7,463) (2,898) (4,078) 7,382  (3,248) (1,840) 2,294 
Inter-segment profit/(loss) 
on stock —  213  —  213  —  (3) —  (3)
Segment disposal of property, 
plant and equipment 25  (625) —  (600) (31) (79) —  (110)
Exceptional items:         
— Segment impairment of 
 property, plant and 
 equipment (156) (267) —  (423) (20) (90) —  (110)
—  Segment impairment of 
goodwill —  (1,754) —  (1,754) —  —  —  — 
—  Other exceptional charges (1,955) (3,445) —  (5,400) (3,180) (5,990) (316) (9,486)
Operating profit/(loss) 4,197  (13,341) (2,898) (12,042) 4,151  (9,410) (2,156) (7,415)
Net finance costs —  —  (2,374) (2,374) —  —  (1,845) (1,845)
Profit/(loss) before tax 4,197  (13,341) (5,272) (14,416) 4,151  (9,410) (4,001) (9,260)
Tax (expense)/credit —  —  (345) (345) —  —  3,209  3,209 
Profit/(loss) for the year 
attributable to equity 
holders of the parent 4,197  (13,341) (5,617) (14,761) 4,151  (9,410) (792) (6,051)
    
for the year ended 28 February 2009
Notes to the Financial Statements.
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5 Segment information - continued
     2009 Restated    2008
 Outdoor Boardwear Unallocated Total Outdoor Boardwear Unallocated Total
 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets and liabilities
Segment assets 107,538  22,404  4,237  134,179  116,058  27,885  5,975  149,918 
Segment liabilities (46,181) (12,421) (6,606) (65,208) (44,914) (19,054) (2,518) (66,486)
Total net assets 61,357  9,983  (2,369) 68,971  71,144  8,831  3,457  83,432 
         
Other segment information         
Capital expenditure:         
—  Property, plant and 
 equipment 4,796  339  —  5,135  4,873  494  —  5,367 
—  Intangible fixed assets —  —  —  —  1,044  —  —  1,044 
         
Depreciation 7,122  1,100  —  8,222  7,707  1,521  —  9,228 
Impairment of property, 
plant and equipment 156  267  —  423  20  90  —  110 
         
Other non-cash expenses:         
—  Provision for dilapidations 
 contracts 458  —  —  458  730  —  —  730 
—  Store closure provision 
 and other lease exits 2,109  2,048  —  4,157  3,228  3,741  —  6,969 
The Unallocated segment relates to the costs of the Board of Directors, Investor Relations and other head office costs; net finance 
costs, Group tax, Group funding; and Parent Company accruals, prepayments and Preference Shares.
On 10 December 2008 the Group announced that it had agreed to transfer the operation of the O’Neill wholesale business in the 
UK to O’Neill Europe B.V., a third party. The transfer was effective from 1 January 2009, subject to a transitional period during which 
the Group would distribute O’Neill products in the UK until 31 May 2009. The sales force of the O’Neill wholesale business were 
transferred to O’Neill Europe B.V. on 1 January 2009.
 
Transfer of the wholesale operation is in line with the Group’s strategy of focusing on its core retail operations. Blacks will continue to 
be a retail partner of O’Neill Europe B.V. through its O’Neill, Blacks and Freespirit stores.
48/49
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Our Governance
Our Financials
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5 Segment information - continued
The results of the O’Neill wholesale business, which have been included in the consolidated income statement, were as follows:   
      
   2009   2008
 Wholesale Retail Boardwear Wholesale Retail Boardwear
 £’000 £’000 £’000 £’000 £’000 £’000
Revenue       
Total revenue 10,954  39,382  50,336  16,085  50,504  66,589 
Inter-segment sales (2,961) —  (2,961) (3,239) —  (3,239)
Sales to external customers 7,993  39,382  47,375  12,846  50,504  63,350 
Profit        
Segment (loss)/profit (2,840) (4,623) (7,463) 1,119  (4,367) (3,248)
Inter-segment profit/(loss) on stock 213  —  213  (3) —  (3)
Segment disposal of property, 
plant and equipment (620) (5) (625) —  (79) (79)
Exceptional items:       
—  Segment impairment of property, 
 plant and equipment —  (267) (267) —  (90) (90)
—  Segment impairment of goodwill —  (1,754) (1,754) —  —  — 
—  Other exceptional charges (1,244) (2,201) (3,445) (2,372) (3,618) (5,990)
Operating loss (4,491) (8,850) (13,341) (1,256) (8,154) (9,410)
As this transaction is a transfer back to the licensee there are no proceeds involved with the transaction and therefore there is no 
profit or loss on disposal.
 Any remaining stock will be sold externally via the O’Neill, Blacks and Freespirit stores and all outstanding trade receivables will be 
collected by the Group. As all stock was paid for prior to delivery there are no trade payables to consider. 
6 Operating loss
     2009 2008
     £’000 £’000
Operating loss from operations has been arrived at after charging/(crediting):
Employee benefits expense (note 7)     50,408  56,199 
Net foreign exchange (gains)/losses     (1,734) 1,212 
Cost of inventories recognised as an expense     119,177  129,745 
Write-downs of inventories recognised as an expense    4,944  5,365 
Depreciation of property, plant and equipment:
 — Owned     7,542  8,548 
 — Leased     680  680 
Impairment of property, plant and equipment     423  110 
Loss on disposal of property, plant and equipment     600  110 
Amortisation of intangible assets      583  535 
Impairment of goodwill (note 14)     1,754  — 
Operating lease expense:
 — Plant and equipment     701  710 
 — Property     45,888  46,851 
Auditors’ fees      
Fees payable to the Company’s Auditors for the audit of the Company’s annual accounts  54  60 
Fees payable in relation to the audit of the Company’s subsidiaries    90  96 
Other services relating to tax     49  55 
Other advisory and regulatory services     36  64 
Total     229  275 
      
for the year ended 28 February 2009
Notes to the Financial Statements.
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7 Employee benefits expense
  2009 2008
  £’000 £’000
Wages and salaries  46,295  51,922 
Social security costs  3,309  3,582 
Pension costs (note 29)  482  574 
  50,086  56,078 
Equity-settled share-based payments expense  322  121 
Total  50,408  56,199 
The average number of persons, including Directors, directly employed in the various sectors of the business was as follows:
  2009  2008
 Full time Part time Full time Part time
Outdoor 1,385  3,461  1,651  3,515 
O’Neill 85  91  151  96 
Central Services 2  4  2  3 
Total 1,472  3,556  1,804  3,614
   2009 2008
   Number Number
Full-time    
— Management and administration   179  220 
— Selling and distribution   1,293  1,584 
Part-time   3,556  3,614 
Total   5,028  5,418
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Our Governance
Our Financials
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8 Exceptional items
 The Group announced on 1 March 2007 its intention to close approximately 45 loss-making stores, which are predominantly in the 
Millets fascia. These closures relate mainly to small, overlapping or acquired stores. The Group also announced the exit of other 
onerous leases. 
The Group continues to make progress with either the closure or assignment of 15 stores under the onerous lease provision during 
the year.
Due to the unfavourable trading conditions in the financial year the assumptions made at the last year end, for the stores under the 
onerous lease provision, have been revised. This has created an additional exceptional charge of £4,156,000 (2008: £5,345,000).
 An imp airment of property, plant and equipment arises from a comparison of the value-in-use of individual stores with their net 
book value where circumstances indicate a possible impairment. Six stores were identified for full impairment which amounted to 
£423,000 (2008: £110,000).
The impairment of goodwill arises from the annual impairment test and reflects the difference between the value-in-use of the 
cash-generating unit and its carrying value. The impairment of £1,754,000 relates entirely to Just Add Water Ltd (note 14).
 In the prior year the Board undertook a review of the infrastructure of the business which resulted in some exceptional costs for 
people totalling £1,770,000 and an operational review of the O’Neill business which resulted in working capital adjustments to stock 
and trade receivables amounting to £2,371,000.
Following an operational review of the O’Neill business it was decided that the O’Neill business should be relocated from 
Washington, Tyne & Wear to the Northampton distribution centre from where the rest of the Group operates. This has led to 
exceptional costs in relation to the write-down of property, plant and equipment at the Washington site, redundancy costs and 
relocation costs totalling £1,244,000.
A deferred tax asset of £1,164,000 (2008: £1,706,000) has been created as a result of the onerous lease provision. This provision 
is expected to be released as the costs are incurred.
These decisions have resulted in an exceptional charge in the year to 28 February 2009 of £7,577,000 (2008: £9,596,000) and the 
nature of these costs is as follows:
  2009 2008
  £’000 £’000
Onerous leases and inducements  4,156  5,345 
Impairment of property, plant and equipment  423  110 
Impairment of goodwill  1,754  — 
Restructure costs  1,244  1,770 
Working capital adjustments  —  2,371 
Total  7,577  9,596
9 Finance income and costs
   2009 2008
  £’000 £’000
Bank loans and overdrafts  2,706  2,344 
Interest on obligations under finance leases  218  265 
Unwinding of discount on onerous lease provision  968  — 
Dividend on Preference Shares  89  89 
Total finance cost  3,981  2,698 
Bank interest receivable  (1,607) (853)
Net finance cost  2,374  1,845 
for the year ended 28 February 2009
Notes to the Financial Statements.
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Our Financials
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52/53
10 Tax expense/(credit)
A reconciliation of tax expense/(credit) applicable to loss before tax at the statutory tax rate to the tax expense/(credit) at the Group’s 
effective tax rate for the year was as follows:
  2009 2008
  £’000 £’000
Loss before tax  (14,416) (9,260)
     
Tax at current UK tax rate of 28% (2008: 30%)  (4,036) (2,778)
Permanent differences  241  154 
Provision not allowable for tax purposes  560  (720)
Depreciation for the year in excess of capital allowances  2,283  2,493 
Other temporary differences  26  184 
Losses to carry back  —  382 
Losses to carry forward  926  285 
Adjustments to tax charge in respect of previous years  (404) (891)
Total current tax  (404) (891)
Deferred tax
Relating to origination and reversal of temporary differences  749  (2,318)
Tax expense/(credit) reported in consolidated income statement  345  (3,209)
Deferred tax asset/(liability)
Deferred tax asset/(liability) relates to the following:
 Consolidated balance sheet  Consolidated income statement
 2009 2008 2009 2008
 £’000 £’000 £’000 £’000
Deferred tax asset/(liabilities)      
Accelerated depreciation for tax purposes —  93  93  (479)
Short-term temporary differences 3,045  3,701  656  (1,839)
Revaluations of foreign exchange contracts 
(cash flow hedges) to fair value (352) (194)
Net deferred tax asset 2,693  3,600 
Deferred tax credit   749  (2,318)
The Group has capital losses arising in the UK of £7,140,000 (2008: £7,140,000) that are available indefinitely for offset against 
future chargeable gains. Deferred tax assets have not been recognised in respect of these losses as they may not be used to offset 
taxable profits elsewhere in the Group and they have arisen in subsidiaries that have been loss-making for some time.
Deferred tax on revaluations of foreign exchange contracts (cash flow hedges) to fair value is taken directly to equity.
The Directors expect to recover the deferred tax asset over the foreseeable future based upon anticipated trading profits. There are 
no other recognised deferred tax assets or liabilities in the year (2008: £nil).
There are no tax consequences attaching to the payment of dividends by Blacks Leisure Group plc to the shareholders 
of the Company.
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11 Loss per share
Basic loss per share is calculated by dividing the net loss for the year attributable to Ordinary Shareholders by the weighted average 
number of Ordinary Shares in issue during the year.
Since the Group was loss-making in the current year there is no dilution effect of the options. The Group has 2,140,914 (2008: 
1,616,049) options outstanding at the end of the year that may become dilutive.
  2009 2008
Weighted average number of Ordinary Shares for basic loss per share  42,626,434  42,621,526 
Effect of dilution — share options  —  — 
Adjusted weighted average number of Ordinary Shares for diluted loss per share  42,626,434  42,621,526 
(Loss)/earnings per share excluding exceptional items (Loss)/earnings  (Loss)/earnings per share
 2009 2008 2009 2008
 £’000 £’000 pence pence
Loss and basic loss per share (14,761) (6,051) (34.63) (14.20)
Exceptional items 7,577  9,596  17.79  22.52 
Tax credit on exceptional items (1,164) (1,706) (2.73) (4.00)
(Loss)/earnings and basic (loss)/earnings 
per share excluding exceptional items (8,348) 1,839  (19.57) 4.32 
The additional (loss)/earnings per share information is disclosed as the Board believes that (loss)/earnings per share excluding 
exceptional items better reflects the underlying performance of the business and assists in providing a clearer view of the 
fundamental performance of the Group. It is also a performance measure used internally by the management team to manage the 
operations of the business.  
There have been no other transactions involving Ordinary Shares or potential Ordinary Shares since the reporting date and before 
the completion of these financial statements.
12 Dividends paid and proposed
   2009 2008
  £’000 £’000
Dividends declared and paid on Ordinary Shares:
 Final dividend for prior year: 1.0 pence (2008: 2.0 pence)  426  852 
 Interim dividend for 2009: 0.0 pence (2008: 2.0 pence)  —  853 
Total dividends declared and paid on Ordinary Shares  426  1,705 
Proposed for approval at AGM:
Final dividend on 50p Ordinary Shares for 2009: 0.0 pence (2008: 1.0 pence)  —  426 
Preference dividends are charged to the income statement as finance costs, as set out in note 9. Proposed equity dividends are not 
accrued at the balance sheet date.
for the year ended 28 February 2009
Notes to the Financial Statements.
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13 Property, plant and equipment
  Freehold land Leasehold Fixtures and Motor
  and buildings improvements equipment vehicles Total
 £’000 £’000 £’000 £’000 £’000
At 4 March 2007, net of 
accumulated depreciation 1,397  4,959  34,097  557  41,010 
Additions —  103  5,264  —  5,367 
Disposals —  (261) (1,030) —  (1,291)
Impairment losses —  (465) 355  —  (110)
Depreciation charge for the year (65) (1,264) (7,704) (195) (9,228)
Depreciation eliminated on disposal —  192  989  — 1,181 
At 1 March 2008, net of 
accumulated depreciation 1,332  3,264  31,971  362  36,929 
At 2 March 2008, net of 
accumulated depreciation 1,332  3,264  31,971  362  36,929 
Additions —  93  5,015  27  5,135 
Disposals —  (98) (3,094) (1,156) (4,348)
Impairment losses —  (142) (281) —  (423)
Depreciation charge for the year (32) (595) (7,465) (130) (8,222)
Depreciation eliminated on disposal —  98  2,470  917  3,485 
At 28 February 2009, net of 
accumulated depreciation 1,300  2,620  28,616  20  32,556 
At 4 March 2007
Cost 3,636  13,233  74,396  1,288  92,553 
Accumulated depreciation 2,239  8,274  40,299  731  51,543 
Net carrying amount 1,397  4,959  34,097  557  41,010 
At 2 March 2008
Cost 3,636  13,075  78,630  1,288  96,629 
Accumulated depreciation 2,304  9,811  46,659  926  59,700 
Net carrying amount 1,332  3,264  31,971  362  36,929 
At 28 February 2009
Cost 3,636  13,070  80,551  159  97,416 
Accumulated depreciation 2,336  10,450  51,935  139  64,860 
Net carrying amount 1,300  2,620  28,616  20  32,556 
Capital expenditure commitments for property, plant and equipment for which no provision has been made are £241,000 (2008: 
£1,382,000).
Impairment losses are calculated by the initial identification of stores that have not generated a cash inflow over the last two 
years. The value-in-use model is then used to evaluate the expected cash flows from the assets of the stores identified and the 
subsequent impairment of those assets, which amounted to £423,000 (2008: £110,000) is charged to the income statement under 
distribution costs and analysed as exceptional items. As all stores identified generated a negative cash flow, no discount factor was 
applied.
Our Business
Our Governance
Our Financials
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13 Property, plant and equipment - continued
 The net carrying amount includes the following assets held under finance leases (note 25):
  2009 2008
  £’000 £’000
Plant and equipment  4,072  4,752 
Net carrying amount of finance leases  4,072  4,752 
14 Goodwill
 Goodwill acquired through business combinations is allocated to cash-generating units (CGU) identified according to business 
segment.
The carrying amount of goodwill allocated by CGU is presented below:
 The Outdoor Just Add
 Group Ltd Water Ltd Total
Cost £’000 £’000 £’000
At 4 March 2007 34,598  1,754  36,352 
At 2 March 2008 34,598  1,754  36,352 
At 28 February 2009 34,598  1,754  36,352 
 The Outdoor Just Add
 Group Ltd Water Ltd Total
Accumulated impairment losses £’000 £’000 £’000
At 4 March 2007 —  —  — 
At 2 March 2008 —  —  — 
Impairment losses for the year —  (1,754) (1,754)
At 28 February 2009 —  (1,754) (1,754)
 The Outdoor Just Add
 Group Ltd Water Ltd Total
Carrying amount £’000 £’000 £’000
At 4 March 2007 34,598  1,754  36,352 
At 2 March 2008 34,598  1,754  36,352 
At 28 February 2009 34,598  —  34,598 
The Group performs an annual review of its goodwill to ensure that its carrying amount is not greater than its recoverable amount. 
The recoverable amount is determined with reference to the value-in-use. To calculate this, cash flow projections are based on 
financial budgets approved by management up to a maximum of one year and extrapolated cash flows for no more than ten years, 
which the Directors believe to be justifiable given the nature of the business. The discount rate applied to cash flow projections is 
10% (2008: 12%), based on the Group’s weighted average cost of capital. The budget growth rate used beyond one year is 3% 
(2008: 5%) reflecting the strategic plan of the Group to recover negative growth rates in recent years. Long-term average growth 
rates are aligned to national average rates for the products and industries in which the CGU operates. The same discount rate has 
been used for each CGU as, in the view of the Directors, the risk profiles are similar.
Expected future cash flows are based on reasonable and supportable assumptions and represent management’s best estimate of 
economic conditions existing over the projected period and reflect assumptions that are consistent with the way the discount rate 
has been determined. Past experience has been considered when making these assumptions along with the strategic plans of the 
business to rebadge stores and the results that this has had so far.
for the year ended 28 February 2009
Notes to the Financial Statements.
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14 Goodwill - continued
 A s ensitivity analysis was performed on the key assumptions used for assessing the goodwill of The Outdoor Group Ltd, the results 
are shown in the table below:
Sensitivity to long-term sales growth:
Long-term sales growth 2.0% 2.5% 3.0%
Recoverable value (£’000) 35,671  49,319  63,302 
Carrying value (£’000) 34,598  34,598  34,598 
Excess of recoverable value over carrying value (£’000) 1,073  14,721  28,704 
Sensitivity to discount factor:
Discount factor 9% 10% 11%
Recoverable value (£’000) 66,581  63,302  60,248 
Carrying value (£’000) 34,598  34,598  34,598 
Excess of recoverable value over carrying value (£’000) 31,983  28,704  25,650 
The Just Add Water CGU is part of the Group’s Boardwear operation. Due to the Board’s intention to exit the Boardwear market 
and rebadge the stores for the Outdoor market in the long-term and the tough UK retail environment, the Group has revised its cash 
flow forecast for this CGU. This has resulted in this CGU having a recoverable amount of nil. The Just Add Water CGU has therefore 
been reduced to its recoverable amount through recognition of an impairment loss against goodwill of £1,754,000 (2008: £nil) and is 
charged to the income statement under administration expenses and analysed as exceptional items.
15 Other intangible assets
 The carrying amount of intangible assets by category is presented below:
  Internet
 Trademarks development Total
 £’000 £’000 £’000
At 4 March 2007 30  1,032  1,062 
Additions 995  49  1,044 
Amortisation (57) (478) (535)
At 2 March 2008 968  603  1,571 
Amortisation (97) (486) (583)
At 28 February 2009 871  117  988 
Our Business
Our Governance
Our Financials
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16 Principal subsidiary undertakings
     Proportion of 
   Country of ownership
 Nature of business  incorporation interest
Blacks Outdoor Division Limited Holding Company for The Outdoor Group Limited England 100%
The Outdoor Group Limited Outdoor and Boardwear clothing, footwear 
 and equipment retailer  England 100%
Sandcity Limited UK distributor and retailer of O’Neill products  England 100%
With the exception of Blacks Outdoor Division Limited, these holdings were indirectly owned by the Company at the balance 
sheet date.
17 Inventories
   Restated
  2009 2008
  £’000 £’000
Finished goods  50,140  56,039 
   
18 Trade and other receivables
  2009 2008
  £’000 £’000
Trade receivables  4,188  5,788 
Less: allowance for doubtful debts  (1,256) (1,024)
  2,932  4,764 
Other debtors  1,735  1,393 
Corporation tax recoverable  150  1,800 
Prepayments and accrued income  5,746  6,211 
  10,563  14,168 
Trade receivables above are all due within one year.
No interest is charged on trade receivables. Expected irrecoverable amounts are provided for based on past default experience.
The other classes within trade and other receivables do not include impaired assets. The maximum exposure to credit risk at the 
reporting date is the carrying value of each class of asset above.
Included in the Group’s trade receivable balances are receivables with a carrying amount of £2,188,000 (2008: £2,371,000) which 
are past due at the reporting date for which the Group has not provided as the amounts are still considered recoverable. The 
Group does not hold any collateral over these balances.
for the year ended 28 February 2009
Notes to the Financial Statements.
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18 Trade and other receivables - continued
Ageing of trade receivables:
  2009 2008
  £’000 £’000
Current  1,412  2,393 
0–60 days past due  161  2,075 
60–120 days past due  631  181 
120–180 days past due  46  214 
Over 180 days past due  1,938  925 
  4,188  5,788 
Movement in allowance for doubtful debts:
  2009 2008
  £’000 £’000
Opening position  1,024  286 
 Amounts charged to the income statement  491  949 
 Amounts written off as uncollectible  (259) (211)
Closing position  1,256  1,024 
Our Business
Our Governance
Our Financials
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19 Cash and cash equivalents
   2009 2008
  £’000 £’000
Cash at bank and in hand  1,385  565 
     
Cash at bank and in hand earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for 
varying periods of between one day and one month depending on the immediate cash requirements of the Group and earn interest 
at the respective short-term deposit rates. The fair value of cash and cash equivalents is considered to be their book value.
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise the following:    
  2009 2008
  £’000 £’000
Cash at bank and in hand  1,385   565  
Bank overdrafts (note 24)  (5,325) (1,318)
  (3,940) (753)
At 28 February 2009, the Group had available £10,444,000 (2008: £8,111,000) of undrawn committed borrowing facilities with a 
floating security charge over the Group’s assets; all conditions precedent had been met. Subsequent to the year end the facility has 
been extended until 31 August 2009, further details of which are provided on page 15.   
 
20 Share capital    
Authorised  2009 2008
  number number
Equity Ordinary Shares of 50 pence each  51,000,000 51,000,000
Allotted and fully paid  number £’000
Equity Ordinary Shares     
of 50 pence each at 3 March 2007  42,625,853  21,313 
Issued for consideration of £6,000  12,250  6 
Equity Ordinary Shares
of 50 pence each at 1 March 2008  42,638,103  21,319 
At 28 February 2009  42,638,103  21,319 
Preference Shares, authorised, allotted and fully paid 10% cumulative shares of 
£1 each at 3 March 2007, 1 March 2008 and as at 28 February 2009  891,429  891 
    
Ordinary Shares
There were no equity Ordinary Shares issued during the year (2008: 12,250 issued with a nominal value of £6,000). At 28 February 
2009 there were outstanding options to receive allotments of 2,140,914 (2008: 1,616,049) Ordinary Shares under the Executive 
Share Option Scheme, the Company Share Option Plan, the Save As You Earn Scheme and the Share Incentive Plan. At 
28 February 2009 the middle market quotation of the Ordinary Shares, as derived from the Stock Exchange Official List, was 42.0p. 
The highest price attained by the Ordinary Shares during the period was 177.5p and the lowest level was 14.5p.
Preference Shares
The 10% cumulative non-redeemable Preference Shares of £1 each confer the right to receive a fixed dividend of 10% per annum 
paid in priority to any payment to any class of share. The dividend is payable in two equal amounts on 30 April and 31 October 
each year.
In the event of a return of capital, or on a winding up of the Company, Preference Shareholders are entitled to repayment of the 
nominal capital paid up on their shares, a premium of 5 pence per share and any arrears of dividends to the date of repayment in 
priority to any other class of share. Preference Shares do not carry any voting rights, unless the preference dividends are in arrears 
for at least six months, or there is a resolution altering the rights of the holders of Preference Shares for the winding-up of the 
Company or for a return of capital. In such instances, a Preference Shareholder shall have one vote on a show of hands, or in the 
event of a poll, ten votes for every Preference Share held.
    
Preference Shares have been reclassified as non-current liabilities in the current year with no effect on the income statement or the 
net assets. This is as a result of a review of the Articles of Association, which state that the Preference Shares are not redeemable.
for the year ended 28 February 2009
Notes to the Financial Statements.
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21 Share premium
   £’000
At 4 March 2007   24,310 
Premium arising on issue of equity shares   23 
At 1 March 2008 and 28 February 2009   24,333 
22 Reserve for own shares
   £’000
At 4 March 2007   (401)
Acquired during the year   (372)
At 1 March 2008 and 28 February 2009   (773)
Reserve for own shares represents the Blacks Leisure Group Employee Benefit Trust that provides for the issue of shares to Group 
employees under certain share option schemes. The number of shares in the Trust amounts to 332,909 (2008: 332,909) with a 
market value at the year end of £140,000 (2008: £591,000).
Our Business
Our Governance
Our Financials
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23 Changes in equity
   Reserve
 Share Share for own Hedging Retained Total
 capital premium shares reserve earnings equity
 £’000 £’000 £’000 £’000 £’000 £’000
At 3 March 2007, as previously reported 21,313  24,310  (401) (116) 46,782  91,888 
Restatement for stock credit balances (note 1) —  —  —  —  (1,094) (1,094)
At 4 March 2007, restated 21,313  24,310  (401) (116) 45,688  90,794 
Gains on cash flow hedges —  —  —  694  —  694 
Tax on items taken directly to equity  
— relating to cash flow hedges —  —  —  (194) —  (194)
Transferred to carrying amount of 
hedged items on cash flow hedges —  —  —  166  —  166 
Tax on items transferred to equity —  —  —  (50) —  (50)
Net income recognised directly in equity —  —  —  616  —  616 
Loss for the year —  —  —  —  (6,051) (6,051)
Total recognised income/(expense) 
for the year —  —  —  616  (6,051) (5,435)
Share capital issued 6  23  —  —  —  29 
Purchase of own shares —  —  (372) —  —  (372)
Accrued equity-settled share-based payments —  —  —  —  121  121 
Dividends paid —  —  —  —  (1,705) (1,705)
At 1 March 2008, restated 21,319  24,333  (773) 500  38,053  83,432 
At 1 March 2008, as previously reported 21,319  24,333  (773) 500  39,147  84,526 
Restatement for stock credit balances (note 1) —  —  —  —  (1,094) (1,094)
At 2 March 2008, restated 21,319  24,333  (773) 500  38,053  83,432 
Gains on cash flow hedges —  —  —  1,256  —  1,256 
Tax on items taken directly to equity  
— relating to cash flow hedges —  —  —  (352) —  (352)
Transferred to carrying amount of hedged 
items on cash flow hedges —  —  —  (694) —  (694)
Tax on items transferred to equity —  —  —  194  —  194 
Net income recognised directly in equity —  —  —  404  —  404 
Loss for the year —  —  —  —  (14,761) (14,761)
Total recognised income/(expense) 
for the year —  —  —  404  (14,761) (14,357)
Accrued equity-settled share-based payments —  —  —  —  322  322 
Dividends paid —  —  —  —  (426) (426)
At 28 February 2009 21,319  24,333  (773) 904  23,188  68,971 
The following describes the nature and purpose of each reserve within owners’ equity:
Reserve Description and purpose     
Share premium Amount subscribed for share capital in excess of nominal value.
Reserve for own shares The cost of own shares held.     
Hedging reserve Gains/(losses) arising on recognising hedging instruments at fair value in a qualifying cash flow hedge.
Retained earnings Cumulative net gains and losses recognised in the consolidated income statement.   
  
for the year ended 28 February 2009
Notes to the Financial Statements.
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24 Bank overdrafts
  
 Effective  2009 2008
 interest rate % Maturity £’000 £’000
Bank overdrafts Variable On demand 5,325  1,318 
 
Bank overdrafts are repayable on demand and are secured by fixed and floating charges over the assets of all Group companies. 
The average effective interest rate on bank overdrafts approximates to 6.475% (2008: 6.64%) per annum. 
 
 
25 Obligations under finance leases 
  Minimum lease   Present value of minimum
  payments  lease payments
 2009 2008 2009 2008
 £’000 £’000 £’000 £’000
Amounts payable under finance leases: 
Within one year 1,313  1,282  1,147  1,061 
In the second to fifth years inclusive 2,505  3,787  2,335  3,454 
After five years —  —  —  — 
 3,818  5,069  3,482  4,515 
 
Less: future finance charges 336  554  N/A N/A
Present value of lease obligations 3,482  4,515  3,482  4,515 
 
The present value of future payments 
is analysed as:   2009 2008
   £’000 £’000
Current liabilities   1,147  1,061 
Non-current liabilities   2,335  3,454 
   3,482  4,515 
 
It is the Group’s policy to lease certain of its plant and equipment under finance leases. The Group entered into several finance lease 
commitments for plant and equipment relating to its premises at Swan Valley, Northampton. The average term is 5.7 years with an 
effective borrowing rate of 5.4%. Interest rates are fixed at the contract date on a fixed repayment basis and no arrangements have 
been entered into for contingent rental payments. 
 
The fair value of the Group’s lease obligations approximates to their present value. 
 
The Group’s obligations under finance leases are secured by the lessors’ rights over the leased assets. 
Our Business
Our Governance
Our Financials
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26 Trade and other payables     
  2009 2008
   £’000 £’000
Trade payables   18,458  21,964 
Other taxes and social security   6,515  7,586 
Accruals and deferred income   10,987  11,366 
Other payables   466  144 
   36,426  41,060 
 
Trade creditors and accruals are non-interest bearing and principally comprise amounts outstanding for trade purchases and 
ongoing costs. The average credit period taken for trade purchase is 47 days (2008: 52 days).   
 
The Directors consider that the carrying amount of trade payables approximates to their fair value.   
 
 
27 Provisions   
  Store closures
  and other lease exits Dilapidations Total
  £’000 £’000 £’000
At 4 March 2007  10,655  674  11,329 
Additional provision in the year  6,969  730  7,699 
Utilised  (4,241) (162) (4,403)
Released  (1,647) (330) (1,977)
At 1 March 2008  11,736  912  12,648 
At 2 March 2008  11,736  912  12,648 
Additional provision in the year  4,157  458  4,615 
Unwinding of discount  968  —  968 
Utilised  (4,748) (231) (4,979)
Released  —  (196) (196)
At 28 February 2009  12,113  943  13,056 
Current 2008  3,621  912  4,533 
Non-current 2008  8,115  —  8,115 
  11,736  912  12,648 
Current 2009  3,918  943  4,861 
Non-current 2009  8,195  —  8,195 
  12,113  943  13,056 
 
Ageing of non-current provisions (years in which the provision is expected to unwind):  
   2009 2008
   £’000 £’000
In the second to fifth years inclusive   5,266  5,966 
In the sixth to tenth years inclusive   2,317  1,692 
After 10 years   612  457 
   8,195  8,115 
 
Store closures and other lease exits  
The store closures and other lease exits provision refers to the exceptional item as disclosed under note 8. The provision has an 
element of uncertainty as the future store losses have been based on historical information and assumes average increases in sales 
and store costs. Lease assignment dates have been estimated based on third party information, but are dependent on the demand 
for high street premises, which is declining and has forced a revision of the previous assumptions of the lease assignment dates 
resulting in additional provisions in the year.  
 
Dilapidations  
Dilapidations provisions relate to work that will need to be carried out in order to put a leased property back into the same condition 
as when the lease commenced. These are calculated by the serving of a dilapidations schedule upon the Company by the landlord. 
 
for the year ended 28 February 2009
Notes to the Financial Statements.
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Our Governance
Our Financials
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28 Commitments and contingencies
  2009 2008
Operating lease commitments — Group as lessee  £’000 £’000
Amounts charged to income for the year include:
Minimum lease payments recognised as an operating lease expense  45,789  46,833 
Contingent rents  99  18 
Contingent rents are all turnover rent clauses, the majority range between 8% and 12% of turnover above a base rent.
The Group leases various buildings which operate within the Outdoor and Boardwear segments. The leases are non-cancellable 
operating agreements with varying terms, escalation clauses and renewal rights. The Group also has various property, plant and 
equipment under non-cancellable operating lease agreements.
Future minimum rentals payable under non-cancellable operating leases as at 28 February 2009 are as follows:   
     
 Land and Motor 2009 Land and Motor 2008
 buildings vehicles Total buildings vehicles Total
 £’000 £’000 £’000 £’000 £’000 £’000
Within one year 40,721  469  41,190  45,608  582  46,190 
In the second to fifth years inclusive 137,375  255  137,630  162,003  509  162,512 
After five years 116,615  —  116,615  185,342  —  185,342 
 294,711  724  295,435  392,953  1,091  394,044 
   
The total future minimum sub-lease income under non-cancellable sub-leases as at 28 February 2009 are as follows:  
 
      
 Land and Motor 2009 Land and Motor 2008
 buildings vehicles Total buildings vehicles Total
 £’000 £’000 £’000 £’000 £’000 £’000
Within one year 821  —  821  819  —  819 
In the second to fifth years inclusive 1,745  —  1,745  2,230  —  2,230 
After five years 559  —  559  698  —  698 
 3,125  —  3,125  3,747  —  3,747
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29 Employee benefits
Share options
The Group operates an Executive Share Option Scheme (ESOS), Company Share Option Plan (CSOP), a  Save As You Earn 
Scheme (SAYE) and a Share Incentive Plan (SIP). There is also a Performance Share Plan (PSP) which has no current members. 
 
The ESOS is an unapproved discretionary employee share option scheme, with options granted to certain senior employees 
(including Directors). The performance criteria and vesting conditions are disclosed within the Directors’ Remuneration Report on 
pages 25 to 27.
The CSOP is a HM Revenue & Customs approved discretionary employee share option scheme with similar performance criteria 
and vesting conditions as the ESOS.
The SAYE is open to employees with the required minimum period of service and provides for a purchase price equal to the market 
price on the date of grant, less a 20% discount. The shares can be purchased over the six-month period following the third or fifth 
anniversary of the commencement date, depending on the scheme to which the employee belongs.
The SIP is a scheme introduced on 28 November 2007 as a one-off performance related incentive award. During the year an award 
was granted to M.A. Lombardo as a part of the remuneration package made available on his appointment as Finance Director. 
Further details of the SIP and performance criteria are given in the Directors’ Remuneration Report.    
    
A reconciliation of option movements for each of the above schemes over the year to 28 February 2009 is as follows: 
 
Executive Share Option Scheme       
    
  2009  2008
  Weighted  Weighted
  average  average
 Number of exercise Number of exercise
 options price (£) options price (£)
Outstanding at the beginning of the year 214,713  3.55  516,303  3.90 
Granted during the year  731,481  1.62  —  — 
Forfeited during the year (246,892) 3.18  (301,590) 4.15 
Outstanding at the end of the year  699,302  1.66  214,713  3.55 
Exercisable at the end of the year 14,117  3.67  98,651  2.60 
     2009    2008
  
Weighted
 Weighted average  
Weighted
 Weighted average
 
Range of
 
average
  remaining life  
average
 remaining life
 exercise exercise Number    exercise Number
 prices price of Expected Contractual price of Expected Contractual
 (£) (£) shares (years) (years) (£) shares (years) (years)
 1.62–3.67 1.66  699,302 0.7 4.7 3.55  214,713  0.8 6.1
There were no options exercised in the year, therefore there is no weighted average share price at the date of exercise for the 
options (2008: £nil). The total charge for the year relating to the scheme was £75,000 (2008: £nil).
 
29 Employee benefits (continued)
for the year ended 28 February 2009
Notes to the Financial Statements.
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29 Employee benefits - continued
Company Share Option Plan       
   2009   2008
  Weighted  Weighted
  average  average
 Number of exercise Number of exercise
 options price (£) options price (£)
Outstanding at the beginning of the year 71,766  3.78  173,984  3.99 
Forfeited during the year (36,071) 3.89  (102,218) 4.13 
Outstanding at the end of the year  35,695  3.67  71,766  3.78 
Exercisable at the end of the year 35,695  3.67  46,467  3.46 
     2009    2008
  
Weighted
 Weighted average  
Weighted
 Weighted average
 
Range of
 
average
  remaining life  
average
 remaining life
 exercise exercise Number    exercise Number
 prices price of Expected Contractual price of Expected Contractual
 (£) (£) shares (years) (years) (£) shares (years) (years)
 3.67 3.67  35,695 0.0 4.7 3.78  71,766  0.5 7.5
    
There were no options exercised in the year, therefore there is no weighted average share price at the date of exercise for the 
options (2008: £nil). There was no charge or credit taken to the income statement (2008: £nil).
Save as You Earn Scheme      
     
  2009  2008
  Weighted  Weighted
  average  average
 Number of exercise Number of exercise
 options price (£) options price (£)
Outstanding at the beginning of the year  329,570  2.65  268,724  3.34 
Granted during the year  —  —  169,954  1.97 
Forfeited during the year (223,653) 2.76  (96,858) 3.39 
Exercised during the year  —  —  (12,250) 2.41 
Outstanding at the end of the year  105,917  2.44  329,570  2.65 
Exercisable at the end of the year 2,542  3.24  49,775  3.29
Our Business
Our Governance
Our Financials
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29 Employee benefits - continued
     2009    2008
  
Weighted
 Weighted average  
Weighted
 Weighted average
 
Range of
 
average
  remaining life  
average
 remaining life
 exercise exercise Number    exercise Number
 prices price of Expected Contractual price of Expected Contractual
 (£) (£) shares (years) (years) (£) shares (years) (years)
 1.97–3.56 2.44  105,917 2.1 2.6 2.65  329,570  0.2 0.7
    
There were no options exercised in the year, therefore there is no weighted average share price at the date of exercise for the 
options (2008: £3.09). A credit of £47,000 was taken to the income statement (2008: £71,000 charge) as a result of truing up the 
estimated attrition rate.     
     
Share Incentive Plan 
  2009  2008
  Weighted  Weighted
  average  average
 Number of exercise Number of exercise
 awards price (£) awards price (£)
Outstanding at the beginning of the year  1,000,000  2.50  —  — 
Granted during the year  300,000  0.98  917,091  2.50 
Transfer from Performance Share Plan —  —  82,909  2.50 
Outstanding at the end of the year  1,300,000  2.15  1,000,000  2.50 
Exercisable at the end of the year —  —  —  —
     2009    2008
  
Weighted
 Weighted average  
Weighted
 Weighted average
 
Range of
 
average
  remaining life  
average
 remaining life
 exercise exercise Number    exercise Number
 prices price of Expected Contractual price of Expected Contractual
 (£) (£) shares (years) (years) (£) shares (years) (years)
 0.98–2.50 2.15  1,300,000  0.7 4.7 2.50  1,000,000  1.7 5.7
There were no options exercised in the year, therefore there is no weighted average share price at the date of exercise for the 
options (2008: £nil). The total charge for the year relating to the scheme was £294,000 (2008: £50,000).   
 
Performance Share Plan   
  2009  2008
  Weighted  Weighted
  average  average
 Number of exercise Number of exercise
 awards price (£) awards price (£)
Outstanding at the beginning of the year —  —  82,909  — 
Transfer to Share Incentive Plan —  —  (82,909) — 
Outstanding at the end of the year  —  —  —  — 
Exercisable at the end of the year —  —  —  — 
for the year ended 28 February 2009
Notes to the Financial Statements.
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29 Employee benefits - continued
     2009    2008
  
Weighted
 Weighted average  
Weighted
 Weighted average
 
Range of
 
average
  remaining life  
average
 remaining life
 exercise exercise Number    exercise Number
 prices price of Expected Contractual price of Expected Contractual
 (£) (£) shares (years) (years) (£) shares (years) (years)
 0.00 —  —  N/A N/A —  —  N/A N/A
The holding of shares for the Performance Share Plan has been transferred and is now held under the Share Incentive Plan. 
The Performance Share Plan at 28 February 2009 and 1 March 2008 had no members, therefore there was no charge to 
the income statement (2008: £nil).    
Equity-settled share-based payments     
The total charge for the year from all schemes during the year was £322,000 (2008: £121,000).   
 
The fair value of the share options is estimated as at the date of grant using the Binomial model for SIP options and ESOS options 
granted after 28 February 2008. For all ESOS and CSOP options granted before 1 March 2008 and all SAYE options the Black–
Scholes model is used. The following table gives the assumptions used and the fair value per option granted during the year.   
     
 
  2009   2008
 ESOS SIP SIP SAYE SAYE
    3-year 5-year
Share price at grant date £1.51 £1.02 £2.40 £2.22 £2.22
Exercise price £1.62 £0.98 £2.50 £1.97 £1.97
Shares under options 1,850,000 300,000 1,000,000 134,828 35,126
Vesting period (years) 5.5 5.0 6.0 3.0 5.0
Expected volatility 49.0% 49.0% 49.0% 23.0% 23.0%
Option life (years) 5.5 5.0 6.0 3.0 5.0
Expected life (years) 4.0 4.0 4.0 3.0 5.0
Risk-free rate 4.9% 4.4% 4.6% 5.5% 5.5%
Expected dividends expressed as a dividend yield 0.0% 0.0% 0.0% 1.0% 1.0%
Expectations of meeting performance criteria 100.0% 100.0% 100.0% N/A N/A
Fair value per option £0.494 £0.013 £0.894 £0.304 £0.435
   
The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. 
The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not 
necessarily be the actual outcome. The risk-free rate of return is the yield on zero-coupon UK Government bonds of a term 
consistent with the assumed option life. No other features of options grant were incorporated into the measurement of fair value.  
 
Our Business
Our Governance
Our Financials
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29 Employee benefits - continued
Retirement benefits     
The Group operates an ongoing pension scheme, the Blacks Leisure Group Stakeholder Pension Scheme. The assets of this 
scheme are held separately from those of the Group. Contributions to the scheme are charged to the income statement in the 
period in which they arise. The charge for the year was £482,000 (2008: £574,000). The Group also makes contributions into the 
Directors’ money purchase schemes, see page 24.      
 
The Blacks Leisure Group plc Pension Scheme which had defined benefit members has effectively been wound up as at 
28 February 2009. In 2007 the Company received confirmation from the Trustees that all amounts due to the scheme had been paid 
and that it had no further exposure to any changes in the value of the scheme’s assets and liabilities. A full IAS19 note has therefore 
not been provided in either year.     
30 Related party disclosures
 Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are 
not disclosed in this note.     
 
 The remuneration of all key personnel is set out below. The key personnel are all either main Board members, subsidiary Board 
members or regular attendees of the subsidiary Board meetings. Further information about the remuneration of individual Directors 
is provided in the audited part of the Directors’ Remuneration Report on page 24.
   2009 2008
   £’000 £’000
Short-term employee benefits   2,026  2,128 
Post-employment benefits   95  126 
Termination benefits   265  533 
Equity-settled share-based payments   348  54 
   2,734  2,841 
There were no transactions in which any key personnel had a material interest.     
 
31 Financial risk management objectives and policies 
The Group’s principal financial instruments, other than derivatives, comprise of bank loans and overdrafts, cash and short-term 
deposits, receivables and payables. The main risks arising from the Group’s financial instruments are interest rate risk, foreign 
currency risk, credit risk and liquidity risk. The Board reviews and agrees policies for managing each of these risks and they are 
summarised below.
The main financial risks faced by the Group relate to the availability of funds to meet business needs and the risk of default by 
a counterparty in a financial transaction. The Group manages borrowing, liquidity, foreign exchange and banking relationships 
in accordance with Board approved policies designed to minimise exposures. The undertaking of financial transactions of a 
speculative nature is not permitted.
The Group finances its operations by a combination of internally-generated cash flow and bank borrowings. Refinancing risk is 
controlled by ensuring the Group has sufficient undrawn bank facilities to meet increases in projected borrowings over the following 
12-month period. The Group’s policy is to fix or cap a proportion of projected net debt in order to reduce the Group’s exposure 
to fluctuations in interest rates. The policy recognises that, in common with other UK retailers, the Group has significant liabilities 
through conditional obligations to pay rent under property leases. The implicit interest rate of these liabilities is fixed in the 
short-term. 
Transaction exposures resulting from purchases in foreign currencies may be hedged by forward foreign currency transactions. 
Group policy aims to minimise any exposure with the intention of protecting the buying margin from fluctuations in the value of the 
foreign currency.      
      
     
 
for the year ended 28 February 2009
Notes to the Financial Statements.
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31 Financial risk management objectives and policies - continued
Interest rate risk
The Group has a seasonal cash flow that moves between net cash and net debt in the course of each year. The Group is exposed 
to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. Fixed interest rates are used for all finance 
lease borrowing.     
 
Foreign currency risk
The Group’s principal foreign currency exposures arise from the purchase of overseas sourced products. Group policy allows for 
but does not demand that these exposures are hedged for up to 12 months ahead in order to fix the cost in sterling. This hedging 
activity involves the use of spot and forward contracts. There were contracts of this nature at year end as detailed in note 32. The 
Group’s net exposure to foreign currencies is illustrated by the sensitivity analysis in note 33.
The market value of outstanding foreign exchange derivatives is reported regularly and reviewed in conjunction with percentage 
cover taken by season and current market conditions in order to assess and manage the Group’s ongoing exposure.
The Group does not have a material exposure to currency movements in relation to translation of overseas assets and liabilities and 
consequently does not hedge any such exposure.
Credit risk
The Group’s credit risk is primarily attributable to its trade and other receivables. The amounts included in the balance sheet are net 
of allowances for doubtful debts, which have been estimated by management based on prior experience and known factors at the 
balance sheet date which may indicate that a provision is required. All customers who wish to trade on credit terms are subject to 
credit verification procedures.
The Group’s credit risk on liquid funds and derivatives is limited because the Group only maintains liquid funds, and only enters into 
derivative transactions, with banks and financial institutions with high credit ratings. The Group also spreads liquid assets over a 
number of counterparties to ensure there is no significant exposure to credit risk.
Liquidity risk
The Group manages its cash and borrowing requirements centrally to maximise interest income and minimise interest expense, 
whilst ensuring that the Group has sufficient liquid resources to meet the operating needs of its businesses. 
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the 
return to stakeholders through the optimisation of the debt and equity balance.
In managing its capital, the Group’s primary objective is to ensure its continued ability to provide a consistent return for its equity 
Shareholders through a combination of capital growth and distributions. In order to achieve this objective, the Group seeks to 
maintain a gearing ratio that balances risks and returns at an acceptable level and also to maintain a sufficient funding base to 
enable the Group to meet its working capital and strategic investment needs. In making decisions to adjust its capital structure to 
achieve these aims, either through altering its dividend policy, new share issues, or the reduction of debt, the Group considers not 
only its short-term position but also its long-term operational and strategic objectives.    
     
 
Our Business
Our Governance
Our Financials
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32 Derivatives
The Group uses currency derivatives to forward-buy and forward-sell foreign currency in order to hedge future transactions 
and cash flows. The Group is party to a variety of foreign currency forward contracts in the management of the exchange rate 
exposures. The instruments purchased are primarily denominated in the suppliers’ principal markets.
At the balance sheet date, total notional amount of outstanding forward foreign exchange contracts that the Group has 
committed to are:
 Exchange
 rate Currency Maturity 2009 2008
Bank of Scotland 2.007 US Dollar 3-Mar-08  3,000,000 
Bank of Scotland 2.005 US Dollar 1-Apr-08  1,500,000 
Bank of Scotland 2.003 US Dollar 1-May-08  1,000,000 
Bank of Scotland 2.002 US Dollar 2-June-08  1,000,000 
Bank of Scotland 2.067 US Dollar 3-Mar-08  1,000,000 
Bank of Scotland 1.947 US Dollar 3-Mar-08  (1,000,000)
Bank of Scotland 1.957 US Dollar 4-Mar-08  1,000,000 
Bank of Scotland 1.943 US Dollar 1-Apr-08  (1,500,000)
Bank of Scotland 1.953 US Dollar 2-Apr-08  1,500,000 
Bank of Scotland 2.064 US Dollar 1-Apr-08  2,500,000 
Bank of Scotland 1.943 US Dollar 1-Apr-08  (2,500,000)
Bank of Scotland 1.953 US Dollar 2-Apr-08  2,500,000 
Bank of Scotland 1.931 US Dollar 1-May-08  (3,000,000)
Bank of Scotland 1.939 US Dollar 1-May-08  (1,000,000)
Bank of Scotland 1.949 US Dollar 2-May-08  1,000,000 
Bank of Scotland 2.062 US Dollar 1-May-08  3,000,000 
Bank of Scotland 1.935 US Dollar 2-June-08  2,000,000 
Bank of Scotland 2.060 US Dollar 2-June-08  1,000,000 
Bank of Scotland 2.058 US Dollar 1-July-08  1,000,000 
Bank of Scotland 2.055 US Dollar 1-Aug-08  1,000,000 
Bank of Scotland 2.010 US Dollar 1-July-08  1,500,000 
Bank of Scotland 2.008 US Dollar 1-Aug-08  2,500,000 
Bank of Scotland 1.926 US Dollar 1-Aug-08  (2,500,000)
Bank of Scotland 1.936 US Dollar 4-Aug-08  2,500,000 
Bank of Scotland 2.006 US Dollar 2-Sept-08  3,000,000 
Bank of Scotland 1.922 US Dollar 2-Sept-08  (3,000,000)
Bank of Scotland 1.932 US Dollar 4-Sept-08  3,000,000 
Bank of Scotland 2.003 US Dollar 1-Oct-08  3,000,000 
Bank of Scotland 1.918 US Dollar 1-Oct-08  (3,000,000)
Bank of Scotland 1.928 US Dollar 2-Oct-08  3,000,000 
Bank of Scotland 2.001 US Dollar 3-Nov-08  3,000,000 
Bank of Scotland 1.914 US Dollar 3-Nov-08  (3,000,000)
Bank of Scotland 1.924 US Dollar 4-Nov-08  3,000,000 
Bank of Scotland 1.999 US Dollar 1-Dec-08  2,000,000 
Bank of Scotland 1.911 US Dollar 1-Dec-08  (2,000,000)
Bank of Scotland 1.921 US Dollar 2-Dec-08  2,000,000 
Bank of Scotland 1.799 US Dollar 4-Mar-09 1,000,000  
Bank of Scotland 1.827 US Dollar 4-Mar-09 1,000,000  
Bank of Scotland 1.795 US Dollar 1-Apr-09 1,000,000  
Bank of Scotland 1.824 US Dollar 1-Apr-09 1,500,000  
Bank of Scotland 1.792 US Dollar 6-May-09 1,000,000  
Bank of Scotland 1.821 US Dollar 6-May-09 1,000,000  
Bank of Scotland 1.789 US Dollar 3-June-09 1,000,000  
Bank of Scotland 1.819 US Dollar 3-June-09 1,000,000  
Bank of Scotland 1.342 Euro 3-Mar-08  7,000,000 
Bank of Scotland 1.341 Euro 1-Apr-08  4,000,000 
Bank of Scotland 1.340 Euro 2-May-08  1,000,000 
     
The fair values of currency derivatives based on marked to market values using listed price market prices used as cash flow hedges 
at the balance sheet date are as follows:     
    2009 2008
    £’000 £’000
Fair value of currency derivatives designated and effective as cash flow hedges   1,256  694
for the year ended 28 February 2009
Notes to the Financial Statements.
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Our Governance
Our Financials
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33 Financial instruments     
Categories of financial instruments (excluding derivatives)    
 
 Financial assets Loans and receivables
  2009 2008
  £’000 £’000
Current financial assets
Trade receivables (note 18)  2,932  4,764 
Cash at bank and in hand (note 19)  1,385  565 
  4,317  5,329 
As the majority of the Group’s trade receivables balance relate to customers that are large retailers the risk of non-payment tends 
to be low although each customer’s debt is individually analysed for the likely payment. The minority of the trade receivables 
balance is made up from a large number of customers which are small independent retailers. These customers have a greater 
level of credit risk assessment and where there is objective evidence of an impairment then the debt is fully provided against and 
payment plans offered.
     
Financial liabilities   Financial liabilities measured
at amortised cost
  2009 2008
  £’000 £’000
Current financial liabilities
Bank overdrafts (note 24)  5,325  1,318 
Obligations under finance leases (note 25)  1,147  1,061 
Trade and other payables (note 26)  36,426  41,060 
Short-term provisions (note 27)  4,861  4,533 
Total current financial liabilities  47,759  47,972 
   
Non-current financial liabilities   
Preference shares (note 20)  891  891 
Obligations under finance leases (note 25)  2,335  3,454 
Long-term provisions (note 27)  8,195  8,115 
Total non-current financial liabilities  11,421  12,460 
Total financial liabilities  59,180  60,432 
   
The fair value of finance lease liabilities is estimated as the present value of future cash flows, discounted at market interest rates for 
homogenous lease agreements. The fair value of finance leases for the year have been estimated at £3,482,000 (2008: £4,515,000) 
as per note 25, Obligations under finance leases.
Preference Shares measured at amortised cost have a fair value of £1,041,000 (2008: £1,048,000) based upon the Preference 
Share market price at 28 February 2009 of 116.8p (2008: 117.6p).
 
   
   
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for the year ended 28 February 2009
Notes to the Financial Statements.
33 Financial instruments (continued)
The table below analyses the Group’s financial liabilities based on the remaining period at the balance sheet date to the 
contractual maturity date. The amounts disclosed in the table are the contracted undiscounted cash flows.
Liquidity analysis   
   28 February 2009
 Within one One to five Greater than
 year years five years
 £’000 £’000 £’000
Preference Shares 89  —  891 
Bank overdrafts 5,325  —  — 
Obligations under finance leases 1,281  2,506  — 
Trade and other payables 36,426  —  — 
Provisions 5,125  8,194  5,677 
 48,246  10,700  6,568 
    
   1 March 2008
 Within one One to five Greater than
 year years five years
 £’000 £’000 £’000
Preference shares 89  —  891 
Bank overdrafts 1,318  —  — 
Obligations under finance leases 1,282  3,787  — 
Trade and other payables 41,060  —  — 
Provisions 7,405  6,582  4,416 
 51,154  10,369  5,307
Interest rate and currency     
 The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial 
statements approximate their fair values.    
 
The maximum exposure to credit risk at the reporting date is represented by the carrying value of the financial assets in the 
balance sheet.    
 
The Directors review any requirement for interest rate hedging during the year dependent upon the level of borrowings. The Group 
is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans which amounted to £5,325,000 (2008: 
£1,318,000) where interest rates are based on UK LIBOR rate. Fixed interest rates are used for all finance lease borrowing which 
amounted to £3,482,000 (2008: £4,515,000).
The Group holds a committed revolving credit facility of £35m, which is to be used for general corporate and working capital 
purposes. As at 28 February 2009 the Group had available £10,444,000 (2008: £8,111,000) of undrawn committed borrowing 
facilities with a floating security charge over the Group’s assets; all conditions precedent had been met. The interest rate on the 
committed and uncommitted facilities is based on the UK LIBOR rate.     
 
The currency and interest rate exposure of the Group’s floating rate cash balances and bank overdrafts is shown below, overdrafts 
are shown as negative:    
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33 Financial instruments - continued
The currency and interest rate exposure of the Group’s floating rate cash balances and bank overdrafts is shown below, overdrafts 
are shown as negative: 
Cash at bank and in hand     
  2009 2008
  £’000 £’000
Sterling  787  560 
Euro  598  388 
US dollar  —  (383)
  1,385  565 
Bank overdrafts     
  2009 2008
  £’000 £’000
Sterling  (5,716) (2,497)
Euro  1,122  528 
US dollar  (712) 658 
Hong Kong dollar  (19) (7)
  (5,325) (1,318)
The right of set-off within the banking facility enables any accounts with overdrafts to be set-off against accounts with a balance and 
recorded as a net balance or overdraft in the consolidated balance sheet. This has created some foreign currency accounts with 
an overdraft to be classified as a financial asset and some foreign currency accounts with a balance to be classified as a financial 
liability as the above tables show.    
 
The floating rate assets and liabilities comprise bank accounts bearing interest rates based upon the UK LIBOR rate. There are no 
fixed rate financial assets.    
 
Our Business
Our Governance
Our Financials
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33 Financial instruments - continued
Sensitivity analysis
Foreign currency sensitivity analysis
The Group’s principal foreign currency exposures are to US dollar and the Euro. The table below illustrates the hypothetical 
sensitivity of the Group’s reported profit and equity to a 10% increase and decrease in the US dollar/Sterling and Euro/Sterling 
exchange rates at the year end date assuming all other variables remain unchanged. The sensitivity of 10% represents the 
Directors’ assessment of a reasonably possible change.    
 
Positive figures represent an increase in profit or equity.
  Income statement  Equity
 2009 2008 2009 2008
 £’000 £’000 £’000 £’000
Sterling strengthens by 10%      
US dollar (65) 25  (455) (944)
Euro (186) (217) (194) (771)
Sterling weakens by 10%      
US dollar 79  (31) 556  1,154 
Euro 230  266  237  942 
Year end exchange rates applied in the above analysis are US dollar 1.4255 (2008: 1.9892) and Euro 1.1224 (2008: 1.3104). 
Strengthening and weakening of sterling may not produce symmetrical results depending on the proportion and nature of foreign 
exchange derivatives which do not qualify for hedge accounting.     
Interest rate sensitivity analysis
The table below illustrates the hypothetical sensitivity of the Group’s reported profit and equity to a 1% increase or decrease in 
interest rates, assuming all other variables were unchanged. The sensitivity rate of 1% represents the Directors’ assessment of a 
reasonably possible change.
The analysis has been prepared under the following assumptions:       
  
—  For floating rate assets and liabilities, the amount of asset or liability outstanding at the balance sheet date is assumed to have 
been outstanding for the whole year.     
—  Fixed rate financial instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of this 
analysis.     
Positive figures represent an increase in profit or equity.      
  Income statement  Equity
 2009 2008 2009 2008
 £’000 £’000 £’000 £’000
Interest rate increase of 1% (183) (157) (183) (157)
Interest rate decrease of 1% 183 157  183  157
34 Events after the balance sheet date  
There are no material events after the balance sheet date identified or included within the accounts.  
for the year ended 28 February 2009
Notes to the Financial Statements.
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  2009 2008
 Note £’000 £’000
Fixed assets   
Investments — subsidiary undertakings 5 53,158  71,642 
   
Current assets   
Debtors 6 575  814 
Cash at bank and in hand  8,435  9,463 
  9,010  10,277 
Creditors: Amounts falling due within one year 7 (22,673) (21,809)
Net current liabilities  (13,663) (11,532)
Total assets less current liabilities  39,495  60,110 
Creditors: Amounts falling due after more than one year 8 (891) (891)
  38,604  59,219 
   
Capital and reserves   
Called up share capital 9 21,319  21,319 
Share premium 10 24,333  24,333 
Reserve for own shares 12 (773) (773)
Profit and loss account 13 (6,275) 14,340 
Shareholders’ funds 14 38,604  59,219 
   
These financial statements were approved by the Board and authorised for issue on 29 May 2009.   
   
They were signed on its behalf by:   
   
N.D. Gillis   
Chief Executive   
   
   
M.A. Lombardo
Finance Director
as at 28 February 2009
Company Balance Sheet (Prepared using UK GAAP).
Our Business
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Our Financials
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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1 Accounting policies
Basis of accounting
The separate financial statements of the Company are presented as required by the Companies Act 1985. They have been 
prepared under the historical cost convention, except for the valuation of certain financial instruments, and in accordance with 
applicable United Kingdom Accounting Standards.
 The Company has not disclosed the requirements under FRS29 Financial instruments: Disclosures as it has taken advantage of the 
exemption to only disclose them with those of the Group in the consolidated financial statements.
The principal accounting policies are summarised below. They have all been applied consistently throughout the year and the 
preceding year.
Going concern
In determining the appropriate basis of preparation of financial statements, the Directors are required to consider whether the 
Company can continue in operational existence for the foreseeable future.
 The Company and Lloyds Banking Group are engaged in discussions regarding provision of a financial structure which will enable 
the Group to accelerate both the exit of the loss-making Boardwear business and the development of the Outdoor store portfolio.
 In order to provide the Company with a stable platform whilst working towards an appropriate long-term financing solution, Lloyds 
Banking Group continues to provide a £35m banking facility, extending the term until 31 August 2009. 
Having reviewed the current cash flow projections, and having made reasonable enquiries in making the underlying key assumptions 
on sales growth, the Directors have a reasonable expectation that the Company will be able to meet its liabilities as they fall due for 
the foreseeable future. It is on this basis that the Directors consider it appropriate to prepare the Company’s financial statements on 
the going concern basis. However, the Directors recognise that there is a material uncertainty of the bank facility not being extended 
beyond 31 August 2009 that may cast significant doubt on the Company’s ability to continue as a going concern, and therefore, 
that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
There is a risk that the above material uncertainties as to the Company’s ability to continue as a going concern may not be resolved 
satisfactorily. The financial statements do not include the adjustments that would result if the Company were unable to continue as 
a going concern, which would include writing down the carrying value of assets, including goodwill, to their recoverable amount and 
providing for any further liabilities that might arise.
 The Board understands that the bank is supportive of the turnaround strategy of the business and would be willing to consider 
providing an increase on the current facility level to undertake the necessary investment plans subject to the provision of medium-
term projections necessary to support the proposals.
 The ex tension of the facility aims to provide an adequate time period to allow the planned discussions to take place.
Investments
Investments in subsidiary undertakings are stated at cost, provision being made where appropriate to recognise a permanent 
dimunition in value.
Equity-settled share-based payments 
 Certain em ployees and Directors of the Group receive equity-settled remuneration in the form of share-based payment transactions, 
whereby employees render services in exchange for shares or rights over shares. The cost of equity-settled transactions with 
employees are measured by reference to the fair value, determined using the Black–Scholes option pricing model or Binomial 
model as appropriate, at the date at which they are granted. The cost of equity-settled transactions is recognised, together with a 
corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the relevant vesting 
date. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the 
extent to which the vesting period has expired, and is adjusted to reflect the Directors’ best available estimate of the number of 
equity instruments that will ultimately vest.
as at 28 February 2009
 
Notes to the Company Financial Statements.
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1 Accounting policies - continued
Where the terms and conditions of options are modified before they vest, the movement in the fair value of the options, measured 
immediately before and after the modification, is also charged to the profit and loss account over the remaining vesting period.
Guarantee contracts
Where the Company enters into financial guarantee contracts and guarantees the indebtedness of other companies within the 
Group, the Company considers these to be insurance arrangements, and accounts for them as such. In this respect, the Company 
treats the guarantee contract as a contingent liability until such time that it becomes probable that the Company will be required to 
make a payment under the guarantee.
2 Loss after tax
As permitted by section 230 of the Companies Act 1985 the Company has elected not to present its own profit and loss account 
for the year. The loss after tax for the year recognised in the profit and loss account for the Company was £20,478,000 (2008: 
£2,852,000).
The Company audit fee for 2009 amounted to £54,000 (2008: £60,000).
3 Employee benefits expense
   2009 2008
  £’000 £’000
Wages and salaries  846  850 
Social security costs  92  97 
Pension costs  71  57 
  1,009  1,004 
Equity-settled shared-based payments expense  289  121 
  1,298  1,125 
    
  2009 2008
  Number Number
Full-time
  — Management and administration  2  2 
Part-time  4  3 
Total  6  5
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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4 Dividends paid and proposed
   2009 2008
  £’000 £’000
Dividends declared and paid on Ordinary Shares:    
  Final dividend for prior year: 1.0 pence (2008: 2.0 pence)  426  852 
  Interim dividend for 2009: 0.0 pence (2008: 2.0 pence)  —  853 
Total dividends declared and paid on Ordinary Shares  426  1,705 
Proposed for approval at AGM:    
Final dividend on 50p Ordinary Shares for 2009: 0.0 pence (2008: 1.0 pence)  —  426 
 
Preference dividends are charged to the profit and loss account as finance costs. Proposed dividends are not accrued at the 
balance sheet date.
5 Investments in subsidiary undertakings
    £’000
Cost
At 2 March 2008 and 28 February 2009   71,642 
Provisions for impairment
At 2 March 2008   — 
Impairment of investment in subsidiaries   (18,484)
At 28 February 2009   (18,484)
Net book value at 28 February 2009   53,158 
Net book value at 1 March 2008   71,642 
The Company has impaired in full its investment of £4,994,000 in Just Add Water Ltd (note 14 to the consolidated financial 
statements). The Company has also impaired in full the investment of £13,490,000 in a number of dormant subsidiaries.
The principal subsidiary undertakings are detailed in note 16 to the consolidated financial statements.
 
6 Debtors
  2009 2008
  £’000 £’000
Amounts owed by subsidiaries  565  565 
Corporation tax  —  236 
Other taxes and social security  1  4 
Other debtors  9  9 
  575  814 
Amounts owed by subsidiaries are trading balances that are repayable on demand and non-interest bearing.
as at 28 February 2009
 
Notes to the Company Financial Statements.
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7 Creditors: Amounts falling due within one year
  2009 2008
  £’000 £’000
Amounts owed to subsidiaries  22,300  21,522 
Accruals and deferred income  326  240 
Other creditors  47  47 
  22,673  21,809 
Amounts owed to subsidiaries are trading balances that are repayable on demand and non-interest bearing.
8 Creditors: Amounts falling due after more than one year
  2009 2008
  £’000 £’000
Preference Shares   891  891
 
9 Called up share capital
  2009   2008
 Number £’000 Number £’000
(a) Equity Ordinary Shares
Authorised shares of 50 pence each 51,000,000 25,500 51,000,000 25,500
Allotted and fully paid shares of 50 pence each 42,638,103 21,319 42,638,103 21,319
(b) Preference Shares
Authorised, allotted and fully paid
10% cumulative shares of £1 each 891,429 891 891,429 891
Preference Shares have been reclassified as creditors falling due after more than one year in accordance with FRS 25 with no effect 
on the profit and loss account or net assets.
10 Share premium
   £’000
At 2 March 2008 and at 28 February 2009   24,333
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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11 Equity-settled share-based payment
 The grants and related accounting treatment adopted by the Company under FRS20 Share-based payment, are identical to 
that adopted by the Group under IFRS2 Share-based payment. For details please refer to note 29 in the consolidated financial 
statements.
12 Reserve for own shares
   £’000
At 2 March 2008 and 28 February 2009   (773)
 Reserve for own shares represents the Blacks Leisure Group Employee Benefit Trust that provides for the issue of shares to Group 
employees under the Share Incentive Plan. The number of shares in the Trust amounts to 332,909 (2008: 332,909) with a market 
value at the year end of £140,000 (2008: £591,000).
13 Profit and loss account
   £’000
At 2 March 2008   14,340 
Loss retained for the year   (20,904)
Equity-settled share-based payments credit   289 
At 28 February 2009   (6,275)
 
An impairment review of the Group was performed during the year resulting in the impairment in full of investments in dormant 
subsidiaries. This has resulted in an impairment charge in the Parent Company profit and loss account of £18,484,000 (2008: £nil). 
The deficit on the profit and loss account has been made good since the balance sheet date by the paying up of dividends from 
subsidiaries.
14 Shareholders’ funds
  2009 2008
  £’000 £’000
Loss after taxation  (20,478) (2,852)
Dividends  (426) (1,705)
Retained loss  (20,904) (4,557)
Share capital issued  —  29 
Equity-settled share-based payments expense  289  121 
Purchase of own shares  —  (372)
  (20,615) (4,779)
Opening shareholders’ funds  59,219  63,998 
Closing shareholders’ funds  38,604  59,219 
15 Commitments and contingencies
Contingent liabilities
The Company guarantees the bank borrowings of subsidiary undertakings which at 28 February 2009 amounted to £13,985,000 
(2008: £10,786,000). There were no guarantees for stock purchases in place at year end (2008: £8,766,000).
as at 28 February 2009
 
Notes to the Company Financial Statements.
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 2009 2008 2007 2006 2005
  £’000 £’000 £’000 £’000 £’000
Results
Revenue 267,551  294,414  298,276  297,238  293,967 
Operating (loss)/profit excluding 
exceptional items (4,465) 2,181  1,583  22,364  20,960 
Exceptional items (7,577) (9,596) (13,936) —  — 
Operating (loss)/profit (12,042) (7,415) (12,353) 22,364  20,960 
Finance costs (2,374) (1,845) (1,491) (929) (562)
(Loss)/profit before tax (14,416) (9,260) (13,844) 21,435  20,398 
(Loss)/profit attributable to equity 
holders (14,761) (6,051) (12,624) 14,538  13,786 
Assets employed
Non-current assets 70,835  78,452  79,950  77,470  70,184 
Current assets 63,344  71,466  80,637  85,868  73,706 
Non-current liabilities (17,449) (18,514) (15,092) (6,814) (1,747)
Current liabilities (47,759) (47,972) (53,607) (46,944) (43,820)
Net assets 68,971  83,432  91,888  109,580  98,323 
Financed by
Equity 68,971  83,432  91,888  109,580  98,323 
Key statistics
 Pence Pence Pence Pence Pence
(Loss)/earnings per share – Basic (34.63) (14.20) (29.69) 34.57  32.87 
(Loss)/earnings per share – Diluted (34.63) (14.20) (29.69) 33.88  32.62 
Ordinary dividend per share 0.0  3.0  5.3  11.3  10.0 
Net assets per share 162  196  216  261  236 
 Times Times Times Times Times
Interest cover (5.1) (4.0) (8.3) 24.1  37.3 
Dividend cover (29.1) (2.5) (2.3) 3.6  4.1 
     
Five Year Summary.
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Blacks Leisure Group plc  Annual Report and Accounts 2009
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Shareholder Notes.
16362BLACKSfront.indd   84 22/06/2009   08:47  Founded in 1861, Blacks Leisure Group plc 
operates in the retail and wholesale of 
clothing and camping equipment in the 
United Kingdom, Channel Isles and Ireland.
02 Group at a Glance
04 Chairman’s Statement
10 Chief Executive’s Review
12 Financial Review
16 Corporate Social Responsibility
18 Directors and Advisors
19 Corporate Governance Statement
23 Directors’ Remuneration Report
28 Directors’ Report and Business Review
34 Independent Auditors’ Report to the Shareholders
36 Consolidated Income Statement
37 Consolidated Statement of 
 Recognised Income and Expense
38 Consolidated Balance Sheet
39 Consolidated Cash Flow Statement
40 Notes to the Financial Statements
77 Company Balance Sheet
78 Notes to the Company Financial Statements
83 Five Year Summary
 Contents Blacks Leisure Group plc
Annual Report & Accounts
for the year ended 28 February 2009
lifestyle.
tailored to your
Blacks Leisure Group plc
440/450 Cob Drive, Swan Valley
Northampton NN4 9BB 
T: +44 (0)1604 597000  F: +44 (0)1604 597171
Shareholder helpline: 0870 162 3100
Email: info@blacksleisure.co.uk
www.blacksleisure.co.uk
Blacks Leisure Group plc   Annual Report & Accounts for the year ended 28 February 2009