Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Trading Symbol | FTCH |
Entity Registrant Name | Farfetch Ltd |
Entity Central Index Key | 1,740,915 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Class A Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock Shares Outstanding | 256,998,920 |
Class B Ordinary Shares | |
Document Information [Line Items] | |
Entity Common Stock Shares Outstanding | 42,858,080 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 602,384 | $ 385,966 | $ 242,116 |
Cost of revenue | (303,934) | (181,200) | (125,238) |
Gross profit | 298,450 | 204,766 | 116,878 |
Selling, general and administrative expenses | (471,766) | (299,260) | (205,558) |
Share of profits of associates | 33 | 31 | 18 |
Operating loss | (173,283) | (94,463) | (88,662) |
Net finance income/ (costs) | 19,866 | (17,642) | 7,402 |
Loss before tax | (153,417) | (112,105) | (81,260) |
Income tax expense | (2,158) | (170) | (199) |
Loss after tax | (155,575) | (112,275) | (81,459) |
Attributable to: | |||
Equity holders of the parent | (155,575) | (112,275) | (81,414) |
Non-controlling interests | $ 0 | $ 0 | $ (45) |
Loss per share attributable to owners of the parent | |||
Basic and diluted | $ (0.59) | $ (0.50) | $ (0.43) |
Weighted-average shares outstanding | |||
Basic and diluted | 264,432,214 | 223,465,734 | 188,679,490 |
Consolidated statement of compr
Consolidated statement of comprehensive loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Comprehensive Income [Abstract] | |||
Loss for the year | $ (155,575) | $ (112,275) | $ (81,459) |
Items that may be subsequently reclassified to consolidated statement of operations | |||
Exchange differences on translation of foreign operations | (24,142) | 33,504 | (27,322) |
Gains on cash flow hedges | 436 | ||
Other comprehensive (loss)/income for the year, net of tax | (23,706) | 33,504 | (27,322) |
Total comprehensive loss for the year, net of tax | (179,281) | (78,771) | (108,781) |
Attributable to: | |||
Equity holders of the parent | (179,281) | (78,771) | (108,736) |
Non-controlling interests | (45) | ||
Total comprehensive loss for the year, net of tax | $ (179,281) | $ (78,771) | $ (108,781) |
Consolidated statements of fina
Consolidated statements of financial position - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-current assets | ||
Trade and other receivables | $ 10,458 | $ 9,193 |
Intangible assets | 103,345 | 74,041 |
Property, plant and equipment | 37,528 | 26,696 |
Investments | 566 | 278 |
Investments in associates | 86 | 58 |
Total non-current assets | 151,983 | 110,266 |
Current assets | ||
Inventories | 60,954 | 50,610 |
Trade and other receivables | 93,670 | 18,180 |
Cash and cash equivalents | 1,044,786 | 384,002 |
Total current assets | 1,199,410 | 452,792 |
Total assets | 1,351,393 | 563,058 |
Equity | ||
Share capital | 11,994 | 9,298 |
Share premium | 772,300 | 677,674 |
Merger reserve | 783,529 | 0 |
Foreign exchange reserve | (23,509) | 633 |
Other reserves | 67,474 | 38,475 |
Accumulated losses | (483,357) | (329,177) |
Equity attributable to owners of the parent | 1,128,431 | 396,903 |
Non-controlling interests | 0 | 0 |
Total equity | 1,128,431 | 396,903 |
Non-current liabilities | ||
Provisions | 13,462 | 5,142 |
Other liabilities | 15,342 | 5,123 |
Total non-current liabilities | 28,804 | 10,265 |
Current liabilities | ||
Trade and other payables | 194,158 | 136,744 |
Other liabilities | 19,146 | |
Total current liabilities | 194,158 | 155,890 |
Total liabilities | 222,962 | 166,155 |
Total equity and liabilities | $ 1,351,393 | $ 563,058 |
Consolidated statements of chan
Consolidated statements of changes in equity - USD ($) $ in Thousands | Total | Share Capital | Share Premium | Merger Reserve | Foreign Exchange Reserve | Other Reserves | Accumulated Losses | Equity Attributable to the Parent | Non- controlling Interest |
Beginning balance at Dec. 31, 2015 | $ 69,511 | $ 6,832 | $ 186,582 | $ (6,771) | $ 4,109 | $ (128,475) | $ 62,277 | $ 7,234 | |
Changes in equity | |||||||||
Issue of share capital, net of transaction costs | 155,418 | 1,012 | 154,406 | 155,418 | |||||
Total comprehensive Income/ (loss) | (108,781) | (27,322) | (81,414) | (108,736) | (45) | ||||
Issue of warrants | 409 | 409 | 409 | ||||||
Share based payment – equity settled | 15,339 | 15,339 | (7,012) | 15,339 | |||||
Transactions with non- controlling interests | (12,980) | 1,222 | (7,012) | (5,790) | (7,190) | ||||
Ending balance at Dec. 31, 2016 | 118,916 | 7,844 | 340,988 | (32,871) | 19,857 | (216,901) | 118,917 | (1) | |
Changes in equity | |||||||||
Issue of share capital, net of transaction costs | 340,301 | 1,454 | 336,686 | 2,161 | 340,301 | ||||
Total comprehensive Income/ (loss) | (78,771) | 33,504 | (112,275) | (78,771) | |||||
Share based payment – equity settled | 16,457 | 16,457 | (1) | 16,457 | |||||
Transactions with non- controlling interests | (1) | (1) | $ 1 | ||||||
Ending balance at Dec. 31, 2017 | 396,903 | 9,298 | 677,674 | 633 | 38,475 | (329,177) | 396,903 | ||
Changes in equity | |||||||||
Capital reorganization | 106,507 | 652 | (677,674) | $ 783,529 | 106,507 | ||||
Issue of share capital, net of transaction costs | 774,344 | 2,044 | 772,300 | 774,344 | |||||
Total comprehensive Income/ (loss) | (179,281) | (24,142) | 436 | (155,575) | (179,281) | ||||
Share based payment – equity settled | 29,958 | 28,563 | 1,395 | 29,958 | |||||
Ending balance at Dec. 31, 2018 | $ 1,128,431 | $ 11,994 | $ 772,300 | $ 783,529 | $ (23,509) | $ 67,474 | $ (483,357) | $ 1,128,431 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Loss before tax | $ (153,417) | $ (112,105) | $ (81,260) |
Adjustments for: | |||
Depreciation | 7,338 | 3,648 | 2,451 |
Amortization | 16,199 | 7,332 | 4,446 |
Impairment of non-current assets | 43 | ||
Non-cash employee benefits expense - share based payments | 53,819 | 16,578 | 15,339 |
Net loss on sale of non-current assets | 1,028 | 42 | 261 |
Share of profits of associates | (33) | (35) | (15) |
Net finance income | (19,866) | (1,261) | (204) |
Net exchange differences | 7,621 | 12,196 | 2,073 |
Issue of warrants | 409 | ||
(Increase)/decrease in the fair value of derivatives | (506) | 44 | (288) |
Changes in working capital | |||
Increase in receivables | (72,151) | (598) | (9,524) |
Increase in inventories | (10,345) | (35,163) | (6,308) |
Increase in payables | 57,432 | 47,406 | 19,463 |
Changes in other assets and liabilities | |||
Increase in non-current receivables | (1,265) | (3,826) | (619) |
Increase in other liabilities | 7,365 | 7,973 | |
Increase in provisions | (701) | ||
Interest paid | (536) | (591) | (1,222) |
Income taxes paid | (822) | (352) | (97) |
Net cash outflow from operating activities | (116,205) | (59,320) | (47,079) |
Cash flows from investing activities | |||
Acquisition of subsidiary, net of cash acquired | 195 | ||
Payments for property, plant and equipment | (21,137) | (12,616) | (6,012) |
Payment for intangible assets | (50,978) | (18,997) | (12,586) |
Interest received | 8,865 | 2,833 | 1,637 |
Payment for equity investments | (288) | (278) | |
Net cash outflow from investing activities | (63,538) | (28,863) | (16,961) |
Cash flows from financing activities | |||
Payment for acquisition of non-controlling interest | (5,028) | ||
Proceeds from issue of shares, net of issue costs | 859,526 | 322,097 | 146,869 |
Repayment of loan notes | (21,955) | (47) | |
Proceeds from issue of loan notes, net of issue costs | 19,379 | ||
Net cash inflow from financing activities | 859,526 | 300,142 | 161,173 |
Net increase in cash and cash equivalents | 679,783 | 211,959 | 97,133 |
Cash and cash equivalents at the beginning of the financial year | 384,002 | 150,032 | 72,579 |
Effects of exchange rate changes on cash and cash equivalents | (18,999) | 22,011 | (19,680) |
Cash and cash equivalents at end of year | $ 1,044,786 | $ 384,002 | $ 150,032 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Corporate Information [Abstract] | |
Corporate information | 1. Corporate information Farfetch Limited (the “Company”) is an exempted company incorporated with limited liability under the Companies Law (2018 Revision) of the Cayman Islands, as amended and restated from time to time (the “Companies Law”). The principal place of business is The Bower, 211 Old Street, London, EC1V 9NR, United Kingdom. Farfetch Limited and its subsidiary undertakings (the “Group”) is principally engaged in the following: • providing an online marketplace at Farfetch.com (and related suffixes) for retailers and brands to be able to offer their products for sale to the public (including associated services such as ‘production’, logistics, customer services and payment processing); • web design, build and development for retailers and brands to enable them to offer their products to the public; and • operation of the Browns London fashion boutique. Summary of impact of Group restructure and Initial Public Offering (IPO) On September 21, 2018, the Company commenced trading its shares on the New York Stock Exchange. In preparation for this Initial Public Offering, “IPO” the Group was restructured. The steps to restructure the Group had the effect of Farfetch Limited being inserted above Farfetch.com Limited as the holder of the Farfetch.com Limited share capital. The reorganization transactions have been treated as a capital reorganization. In accordance with International Financial Reporting Standards, historic earnings per share calculations and the balance sheet as of December 31, 2017 have been restated retrospectively to reflect the capital structure of the new parent rather than that of the former parent, Farfetch.com Limited. The Group is presented as if Farfetch Limited has always owned Farfetch.com Limited. The comparative statement of operations and statement of financial position are presented in line with the previously presented Farfetch.com Limited position. The comparative and current period consolidated reserves of the Group are adjusted to reflect the statutory share capital and share premium of Farfetch Limited. A merger reserve arose as a result of the restructuring of the Group and represents the difference between the equity of the acquired company (Farfetch.com Limited) and the investment by the acquiring company (Farfetch Limited). The steps taken to restructure the Group were as follows. On September 18, 2018, all holders of warrants over Farfetch.com shares, except a holder of 189,995 warrants that remains outstanding, exercised their warrants into the applicable class of shares and the outstanding shares of Farfetch.com and were exchanged for shares of Farfetch Limited with equivalent rights. Following the exchange, the £0.10 British Pound Sterling dominated ordinary shares and the preference shares held by the shareholders of Farfetch Limited were converted into United States Dollar denominated $0.20 ordinary shares of Farfetch Limited and subsequently exchanged, one for five, for $0.04 Class A ordinary shares and Class B ordinary shares, as applicable. Outstanding options of Farfetch.com were released in exchange for the grant of options with equivalent rights over Class A ordinary shares of Farfetch Limited These financial statements were authorized for issue on March 1, 2019. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Policies [Abstract] | |
Significant accounting policies | 2. 2.1. The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost convention unless otherwise stated. The consolidated financial statements are presented in United States dollars (“United States Dollars” or “USD” or “$”). All values are rounded to the nearest thousand dollars, except where indicated. The tables in these notes are shown in USD thousands, except where indicated. The consolidated financial statements provide comparative information in respect of the previous periods. 2.2. The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee; • Rights arising from other contractual arrangements; and • The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Group and to the non-controlling interests. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. 2.3. a) Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Group measures the non-controlling interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration to be transferred by the Group is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and is measured at fair value with changes in fair value recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests over the net identifiable assets acquired and liabilities assumed which are measured at fair value at the date of acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (“CGU”) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Annual impairment testing is performed at every reporting date being December 31. Refer to note 2.3 m) for the Group’s policy on the impairment of non-financial assets. b) The Group recognizes an associate when the Group has a significant influence over that entity. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The Group’s investment in its associate, Farfetch Finance Limited, is accounted for using the equity method. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. c) The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. d) This section outlines the Group policies applicable to financial instruments that are recognized and measured at fair value in the financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable • Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. e) Revenue is recognized in accordance with the five-step model under IFRS 15, which was early adopted by the Group on January 1, 2017 on a fully retrospective basis: 1. identifying the contracts with customers; 2. identifying the separate performance obligations; 3. determining the transaction price; 4. allocating the transaction price to the separate performance obligations; and 5. recognizing revenue when each performance obligation is satisfied. Retailing of goods Revenue, where the Group acts as a principal, is recognized when the performance obligation is satisfied which is when the goods are received by the customer. Included within sales of goods is a provision for expected returns, discounts and rebates. Where these are not known, the Group uses historical data and patterns to calculate an estimate. Rendering of services The Group primarily acts as a commercial intermediary between sellers, being the brands and boutiques, and end consumers and earns a commission for this service. For these arrangements, the sellers determine the transaction price of the goods sold on the website, being the purchase price paid by the consumer, with the Group acting as an agent for the sellers and the related revenue is recognized on a net basis. The Group also charges fees to sellers for activities related to providing this service, such as packaging, credit card processing, settlement of duties, and other transaction processing activities. These activities are not considered separate promises to the customer, and the related fees are therefore recognized concurrently with commissions at the time the performance obligation to facilitate the transaction between the seller and end consumer is satisfied, which is when the goods are dispatched to the end consumer by the seller. A provision is made for commissions that would be refunded if the end consumer returns the goods, and the Group uses historical data and patterns to estimate its return provision. There are no significant payment terms with the Group taking payment in full from the consumer’s chosen payment method at the time the goods are dispatched by the seller. The Group also provides delivery services to end consumers, with the Group setting the transaction price, for goods purchased on its platform. For these services, the Group acts as the principal and recognizes as revenue amounts charged to end consumers net of any promotional incentives and discounts. Revenue for these services is recognized on delivery of goods to the end consumer, which represents the point in time at which the Group’s performance obligation is satisfied. No provision for returns is made as delivery revenue is not subject to refund. Promotional incentives, which include basket promo-code discounts, may periodically be offered to end consumers. These are treated as a deduction to revenue. Cash is collected by the Group from the end consumer using payment service providers. Within two months of the transactions, this is remitted to the relevant seller (net of commission and recoveries). Such amounts are presented within trade and other payables, unless the relevant seller is in a net receivable position and is therefore classified within trade and other receivables. f) Current tax is the expected tax payable based on the taxable profit for the period, and the tax laws that have been enacted or substantively enacted by the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Current and deferred tax is charged or credited in the statement of operations, except when it relates to items charged or credited directly to equity, in which case the current or deferred tax is also recognized directly in equity. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates and in accordance with laws that are expected to apply in the period/jurisdiction when/where the liability is settled or the asset is realized. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities and where there is an intention to settle the balances on a net basis. g) The Group’s consolidated financial statements are presented in United States Dollars. For each entity the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company is United States Dollars. h) Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively). On consolidation, the assets and liabilities of foreign operations are translated into United States Dollars at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at average exchange rates. The exchange differences arising on translation for consolidation are recognized in OCI. i ) Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. All repair and maintenance costs are recognized in profit or loss as incurred. Items of property, plant and equipment are depreciated with an expense recognized in depreciation and amortization expense on a straight-line basis over their useful life. The useful lives of these items are assessed as follows: Leasehold improvements Over the life of the lease Fixtures and fittings Three to ten years Motor vehicles Four to eight years Computer equipment Three to ten years The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. j) Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of operations in the expense category that is consistent with the function of the intangible assets. Other than goodwill, there are no intangible assets with indefinite useful lives. Goodwill is not amortized but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to the relevant CGUs which are tested for impairment annually. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Refer to note 2.3 m) for the Group’s policy on the impairment of non-financial assets. Research and development costs Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale; • Its intention to complete and its ability and intention to use or sell the asset; • How the asset will generate future economic benefits; • The availability of resources to complete the asset; and • The ability to measure reliably the expenditure during development. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in administrative expenses. Development intangible assets under the course of construction are tested for impairment annually or more frequently if events or changes in circumstance indicate that they might be impaired. Once placed into service the asset is tested for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. Subsequent costs Subsequent costs are only capitalized when there is an increase in the anticipated future economic benefit attributable to the assets in question. All other subsequent costs are recorded in the statement of operations for the year in which they are incurred. Amortization Amortization is charged to depreciation and amortization expense on a straight-line basis over the estimated useful life of the intangible assets, from the time that the assets are available for use. The useful lives of these items are assessed as follows: Development costs Three years Brand, trademarks & domain names Five to ten years Customer relationships Three to five years k) Inventories are carried at the lower of cost and the net realizable value based on market performance, including the relative ancillary selling costs. The cost of inventories, calculated according to the weighted average cost method for each category of goods, includes purchase costs and costs incurred to bring the inventories to their present location and condition. In order to represent the value of inventories appropriately in the statement of financial position, and to take into account impairment losses due to obsolete materials and slow inventory movement, obsolescence provisions have been directly deducted from the carrying amount of the inventories. l) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets The Groups financial assets comprise cash and cash equivalents, receivables and derivative financial instruments. Derivative financial instruments are comprised of forward exchange contracts, which are measured at fair value through profit or loss, unless they are formally designated and measured as cash flow hedges. Trade receivables are generally accounted for at amortized cost. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost. Financial assets through profit or loss are measured initially at fair value with transaction costs taken directly to the consolidated statement of operations. Subsequently, the financial assets are remeasured, and gains and losses are recognized in the consolidated statement of operations. Financial liabilities The Group’s financial liabilities comprise trade and other payables, interest bearing loans and borrowings, contingent consideration and foreign exchange contracts. Trade and other payables are held at amortized cost. All interest bearing loans and borrowings are initially recognized at fair value net of issue costs associated with the borrowing. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Contingent consideration and foreign exchange contracts are measured initially at fair value through profit or loss with transaction costs taken directly to the consolidated statement of operations. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognized in the consolidated statement of operations. Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Where the derivative is not designated as a hedge, subsequent changes in the fair value are recognized in profit or loss. Such derivatives are classified as a current asset or liability. The group designates certain derivatives as cash flow hedges to hedge particular risks associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions. At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. Currently the Group has only designated cash flow hedges. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. When a hedging instrument matures, any gains or losses held in the cash flow hedge reserve are recycled to profit or loss. If the a hedge no longer meets the criteria for hedge accounting, or the forecast transaction is no longer likely to occur, the cumulative gain or loss reported in equity is immediately reclassified to profit or loss. m) The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. The Group bases its impairment calculation on detailed budgets which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations cover a period of five years. Impairment losses of continuing operations, are recognized in the statement of operations in expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. Goodwill and intangible assets are tested for impairment annually as at December 31 and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. n) Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. o) Employees (including senior executives) of the Group receive remuneration in the form of share based payments, whereby employees render services as consideration. The consideration is either equity or cash settled depending on the scheme. Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The statement of operations expense or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. No expense is recognized for awards that do not ultimately vest. Cash-settled transactions For cash-settled share-based payments, a liability is recognized for the goods or services acquired, measured initially at the fair value of the liability. At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in profit or loss for the year. Employment related taxes Where the Group has an obligation to settle employment related taxes on share based payments received by employees, these are provided for based on the intrinsic value of the vested share options at the end of the reporting period. p) For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. As of December 31, 2018 the Group’s cash and cash equivalents balance consists of $49,935,000 of cash held in banks (2017: $38,904,000) and $994,851,000 of cash equivalents (2017: $345,098,000). Cash and cash equivalent consists of $739,330,000 money market funds (2017: $274,971,000), $225,209,000 of short-term deposits (2017: $45,415,000) and $30,312,000 held by payment service providers ($24,712,000). The Group has classified amounts held in money market funds as cash equivalents because those funds are short term in nature, highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value. The Group has determined this classification is appropriate because each of these EU-regulated funds are valued on a Constant Net Asset Value basis and have the highest credit rating available. 2.4. Amendments to IFRSs that are mandatorily effective for the current year In the year ended December 31, 2018, the Group has applied the below amendments to IFRSs issued by the IASB that are mandatorily effective for an accounting period that began on or after January 1, 2018. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. IFRS 9 Financial Instruments The Group has adopted IFRS 9 for the first time in the current year. The application of the standard has had no material impact on the Group’s consolidated financial statements. Due to the nature of the Group’s financial assets and liabilities there has been no material changes to the Group’s accounting policies as a result of adopting IFRS 9. IFRS 2 (amendments) Classification and Measurement of Share-based Payment Transactions The Group has adopted the amendments to IFRS 2 for the first time in the current year. The amendments address the measurement of cash-settled share-based payments, the classification of share-based payments settled net of tax withholdings, and the accounting for a modification of a share-based payment from cash-settled to equity-settled. The application of these amendments has had no impact on the Group’s consolidated financial statements. New and revised IFRSs in issue but not yet effective At the date of authorization of these financial statements, the Group has not applied the following new and revised IFRSs that have been issued but are not yet effective: IFRS 16 Leases (effective January 1, 2019) IFRS 16 was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) |
Critical Accounting Judgments a
Critical Accounting Judgments and Key Sources of Estimation Uncertainty | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Judgments And Estimates [Abstract] | |
Critical accounting judgments and key sources of estimation uncertainty | 3. Critical accounting judgments and key sources of estimation uncertainty The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Below is a summary of the critical measurement processes and the key assumptions used by management in applying accounting policies with regard to the future, and which could have significant effects on carrying amounts stated in the consolidated financial statements, or for which there is a risk that significant adjustments may be made to the carrying amount of assets and liabilities in subsequent years. Critical judgements in applying group accounting policies Intangible assets—development costs a) Cost capitalization Amounts capitalized include the total cost of any external products or services and internal labor costs directly attributable to the development of the asset. Management judgment is involved in determining the appropriate internal costs to capitalize and the amounts involved. b) Useful life The useful life is determined by management at the time the asset is brought into its intended use and is regularly reviewed for appropriateness. The useful life represents management’s view of the expected period over which the Group will receive benefits. Recognition of a deferred tax asset The Group has accumulated significant unutilized trading tax losses (note 25). A deferred tax asset in respect of these losses can only be recognized when it is probable that future taxable profits will be available to utilize these against. No net deferred tax asset has been recognized in respect of these trading losses because there is uncertainty on the timing of future profitability in the near future. The Group reviews this assessment on an annual basis. Key sources of estimation uncertainty Impairment of non-financial assets Impairment exists when the carrying value of an asset CGU exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow (“DCF”) model. The cash flows are Share based payments Estimating the fair value of share options requires the determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The Group uses the Black Scholes Valuation Model to estimate the fair value of each grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. These inputs, and the volatility assumption in particular, are considered to be highly complex and subjective. Because the Group’s shares have been publicly traded for a short period of time, it lacks sufficient company-specific historical and implied volatility information for its shares. Therefore, it estimates expected share price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. . Inventory provisions Inventory is carried at the lower of cost and net realizable value which requires an estimation of the products’ future selling prices. Judgment is required in determining any write-down for slow-moving or obsolete inventory. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Abstract] | |
Revenue | 4. Revenue Revenue by type of good or service 2016 2017 2018 In-store revenue 12,668 15,434 15,595 Platform services revenue 180,937 296,350 488,995 Platform fulfilment revenue 48,511 74,182 97,794 242,116 385,966 602,384 In-store The Group has a single performance obligation in respect in-store revenue, which is the sale of finished goods. Platform services Within platform services, the Group primarily acts as a commercial intermediary between sellers and end consumers and earns a commission for this service. Commission revenue is recognized on a net basis in the statement of operations because the Group acts as an agent in these arrangements. Revenue in relation to these obligations within Platform Services Revenue which have not been satisfied at the end of the reporting period is $1,651,000 (2017: 1,067,000, 2016: $330,000) and is expected to be recognized in under 90 days from the end of the reporting period. In 2018, $1,067,000 (2017: $330,000, 2016: $165,000) of revenue deferred in 2017 (2016, 2015) was recognized as revenue. In other arrangements, the Group sells its own goods on the platform where the Group is the principal, and therefore related revenues are recognized on a gross basis. Revenue on the sale of these goods is recognized when the goods are received by the end consumer. For finished goods that have been ordered on the platform but not yet delivered to the end consumer at the end of the reporting period, revenue is deferred until delivery. At December 31, 2018, these deferred amounts were $2,015,000 (2017: $1,135,000, 2016: $741,000), which the Group expects to recognize within 30 days of period end. In 2018, $1,135,000 (2017: $741,000, 2016: $nil) of revenue deferred in 2017 (2016, 2015) was recognized as revenue. Platform service revenue also includes fees charged to sellers for other activities, such as packaging, credit card processing, and other transaction processing activities. At checkout, end consumers are charged for delivery, if applicable, in addition to the price of goods in their basket (refer to Platform fulfilment below for a discussion of delivery services). The Group is responsible for the collection of cash from end consumers with payment typically taken in advance of completing its performance obligations. In arrangements where the Group acts as an agent, cash collections are remitted net to the sellers generally within two months of collection. Platform fulfilment The Group also provides delivery services for products sold on the platform, for which revenues are recognized when the products are delivered to the end consumers. Revenues for delivery services are stated net of promotional incentives and discounts. Platform fulfilment revenue also includes fees charged to sellers for the settlement of duties which are recognized concurrently with commissions. As discussed above, the promise with respect to delivery services is satisfied only when the goods are delivered. Within Platform Fulfilment Revenue, where the delivery performance obligation has not been satisfied at the end of the reporting period, revenue of $479,000 (2017: $436,000, 2016: $407,000) has been deferred and is expected to be recognized in under 90 days from the end of the reporting period. The transaction price for this performance obligation is the delivery costs charged to the consumer as described above. In 2018 $436,000 (2017: $407,000, 2016: $153,000) of revenue deferred in 2017 (2016, 2015) was recognized as revenue. There were no receivables from contracts with customers (2016 and 2017: none). Further detail can be found in note 2.3 e) to the financial statements. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Business Combinations [Abstract] | |
Business combinations | 5. Business combinations Acquisition in 2016 There were no business combinations in 2016. Acquisitions in 2017 Fashion Concierge UK Limited On October 31, 2017, Farfetch UK Limited, a wholly owned subsidiary of the Parent, acquired 100% of the issued share capital of Fashion Concierge UK Limited and its subsidiary F&C Fashion Concierge, LDA (“Fashion Concierge UK Limited”). The primary reason for the acquisition is for the Group to enhance its private client offering. Details of the purchase consideration, the net assets acquired and goodwill are as follows: 2017 Purchase consideration Ordinary shares issued 2,183 Total purchase consideration 2,183 The fair value of the 45,000 shares issued as 100% of the consideration paid for Fashion Concierge UK Limited ($2,183,000) was estimated based upon the Company’s most recent funding round as of the date of the acquisition. Net cash inflow arising on acquisition 2017 Cash and cash equivalent balances acquired 195 Cash consideration - Net cash inflow 195 The ordinary shares issued are non-cash investing activities The Group recognized the following assets and liabilities upon the Fashion Concierge UK Limited acquisition: 2017 Intangible assets 1 Tangible assets 4 Trade receivables 301 Cash and cash equivalents 195 Trade payables (1,341 ) Total net identified liabilities acquired (840 ) Goodwill 3,023 Total goodwill acquired 3,023 Net assets acquired 2,183 The goodwill represents the synergies that Farfetch is expected to generate. Revenues and profit contribution The results of operations for each of the acquisitions have been included in the Group’s consolidated statements of operations since the respective dates of acquisitions. Actual and pro forma revenue and results of operations for the acquisitions have not been presented because they do not have a material impact to the consolidated revenue and results of operations, either individually or in aggregate. Acquisition related costs Acquisition-related costs of $123,000 are included in selling, general and administrative expenses. Style.com On June 12, 2017, Farfetch UK Limited, a wholly owned subsidiary of the Parent, acquired 100% of the business of Style.com, a luxury e-commerce retailer, from Conde Nast. The primary reason for the acquisition was for the Group to leverage customer relationships, the Style.com domain name authority and content to enhance the Group’s marketplace business. Details of the purchase consideration, the assets acquired and goodwill are as follows: 2017 Purchase consideration Ordinary shares issued 12,411 Total purchase consideration 12,411 The fair value of the 258,265 shares issued as 100% of the consideration paid for Style.com Limited ($12,411,000) was estimated based upon the Company’s most recent funding round as of the date of the acquisition. The ordinary shares issued are non-cash investing activities. The Group recognized the following assets and liabilities upon acquisition: 2017 Inventories 1,856 Total net identified assets acquired 1,856 Goodwill 7,050 Customer relationships 1,178 Trademarks and domain name 3,046 Deferred tax liability (719 ) Total goodwill and identifiable intangible assets acquired 10,555 Net assets acquired 12,411 The trademarks and domain name are amortized over ten years and the customer relationships are amortized over three years. The goodwill is attributable to the Style.com reputation and the expected synergies and efficiencies generated by the business combination. It will not be deductible for tax purposes. There was no cashflow impact with purchase consideration being the issue of shares and there being no cash acquired. Acquisition related costs Acquisition-related costs of $557,000 are included in selling, general and administrative expenses. The results of operations for each of the acquisitions have been included in the Group’s consolidated statements of operations since the respective dates of acquisitions. Actual and pro forma revenue and results of operations for the acquisitions have not been presented because they do not have a material impact to the consolidated revenue and results of operations, either individually or in aggregate. Acquisitions in 2018 There were no business combinations in 2018. |
Segmental and geographical info
Segmental and geographical information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Operating Segments [Abstract] | |
Segmental and geographical information | 6. Segmental and geographical information The Group has identified four operating segments. This assessment is based on information reported to the Group’s Chief Executive for the purpose of assessing segmental performance and resource allocation. These are the Marketplace (which operates the Farfetch.com marketplace website and app), Farfetch Black & White Solutions (a white label website solution for luxury brands), Stores (operation of the Browns luxury boutiques) and Store of the Future (provision of technology solutions to retail outlets). The Marketplace represents over 90% of the Group’s revenue, results and assets. As such the Group has presented only one reportable segment. Geographical information The Group operates a platform that connects retailers and brands, which provide supply, with consumers, who provide demand. Therefore, the Group believes it is relevant to disclose geographical revenue information on both a supply basis, determined by location of the Farfetch contracting entity, and on a demand basis, determined by location of consumer. The Group’s UK revenue, based on location of the Farfetch contracting entity, was $492,495,000 (2017: $335,345,000, 2016: $208,857,000). The Group’s revenue from external customers, based on consumer ship-to location, and information about its segment assets by geographical location are detailed below: 2016 2017 2018 Revenue from external customers Americas 77,608 111,349 175,060 Europe, Middle East and Africa 92,885 156,507 240,662 Asia Pacific 71,623 118,110 186,662 242,116 385,966 602,384 2017 2018 Non-current assets Americas 4,046 6,089 United Kingdom 53,594 118,374 Europe, Middle East and Africa 45,596 21,500 Asia Pacific 7,030 6,020 110,266 151,983 For the year ended December 31, 2018, the Group revised its methodology for determining the geographical location of revenue from being based on customer shipping location to customer billing location. In addition, the Group previously disclosed first-party sales based on the location of the seller. The Group has revised this to being based on the customer billing location which is consistent with third-party based sales. Revenue by geographical location for the year ended December 31, 2016 and 2017 has been revised to reflect this change in methodology. No single customer amounted for more than 10% of Group revenues (2017: none, 2016: none). |
Employees and directors
Employees and directors | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Directors And Employees [Abstract] | |
Employees and directors | 7. Employees and directors 2016 2017 2018 Wages and salaries 60,455 88,164 140,298 Social security costs 9,626 12,783 24,976 Other pension costs 360 898 1,391 Share based payments (equity settled) 17,256 16,667 34,668 Share based payments (cash settled) 1,178 3,807 10,355 Share based payments (employment related taxes) 1,414 1,012 8,796 90,289 123,331 220,484 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
Selling General And Administrative Expense [Abstract] | |
Selling, general and administrative expenses | 8. Selling, general and administrative expenses Included within selling, general and administrative expenses are: 2016 2017 2018 Demand generation expenses 48,381 69,202 97,295 Technology 12,269 31,611 68,224 Depreciation and amortization 6,897 10,980 23,537 Share based payments 19,848 21,486 53,819 |
Finance income and costs
Finance income and costs | 12 Months Ended |
Dec. 31, 2018 | |
Net Finance Cost [Abstract] | |
Finance income and costs | 9. Finance income and costs 2016 2017 2018 Unrealised exchange gains 7,643 - 9,143 Deposit account interest 1,359 2,510 6,859 Other interest income 278 323 4,401 Finance income 9,280 2,833 20,403 Unrealised exchange losses - (18,902 ) - Interest on borrowings (1,473 ) (1,572 ) - Other interest expense (29 ) (1 ) (537 ) Warrants issued (376 ) - Finance costs (1,878 ) (20,475 ) (537 ) Net finance income/ (costs) 7,402 (17,642 ) 19,866 |
Loss Before Tax
Loss Before Tax | 12 Months Ended |
Dec. 31, 2018 | |
Loss Before Tax [Abstract] | |
Loss before tax | 10. Loss before tax Loss before tax items include: Note 2016 2017 2018 Employee benefits 7 90,289 123,331 220,484 Operating leases 12,322 18,162 19,244 Research and development costs expensed 4,972 5,102 12,455 Loss on disposal of non-current assets 261 42 1,028 Depreciation—Property, plant & equipment (note 16) 2,451 3,648 7,338 Amortization—Intangible assets (note 15) 4,446 7,332 16,199 Auditors’ remuneration 411 1,095 2,152 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2018 | |
Major Components Of Tax Expense Income [Abstract] | |
Taxation | 11. a) Income tax expense 2016 2017 2018 Current tax: Corporate tax 182 805 2,208 Prior year adjustments 17 132 (50 ) Total current tax 199 937 2,158 Total deferred tax - (767 ) - Income tax expense 199 170 2,158 b) Reconciliation of income tax expense to tax payable The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profit of the consolidated entities as follows: 2016 2017 2018 Loss before tax (81,260 ) (112,105 ) (153,417 ) Tax at the UK tax rate of 19.00% (2017: 19.25%, 2016: 20.00%) (16,252 ) (21,580 ) (29,149 ) Tax effects of: Impairment of intangible assets 46 - - Sundry temporary differences 268 (599 ) - Sundry permanent differences 1,945 1,965 4,355 Entertaining 272 27 37 Loss utilisation - (85 ) (334 ) Taxes paid overseas and rate difference 42 (144 ) (599 ) Foreign exchange rate differences 306 192 (6 ) Unrecognized deferred tax asset arising from timing differences relating to: Share based payment 2,913 3,722 (4,327 ) Non-current assets 208 463 361 Prior year adjustments 17 132 (50 ) Losses carried forward 10,434 16,077 31,870 Income tax expense 199 170 2,158 The Finance Act 2015 reduced the main rate of UK Corporation Tax, “CT” from 20% to 19% for the 2017 tax year, with the rate set at 19% for the 2018 and 2019 tax years. The Finance Act 2016 has set the CT rate for the 2020 tax year as 17%. Consequently the Group has used a tax rate of 19.00% for the 2018 financial year. There is no income tax relating to the components presented within other comprehensive income. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Loss per share | 12. Loss per share Basic loss per share is computed using the weighted-average number of outstanding shares during the period. Diluted loss per share is computed using the weighted-average number of outstanding shares and excludes all potential shares outstanding during the period, as their inclusion would be anti-dilutive. The Group’s potential shares consist of incremental shares issuable upon the assumed exercise of share options and warrants, and the incremental shares issuable upon the assumed vesting of unvested share awards. The calculation of loss per share is as follows: 2016 2017 2018 In $ thousands, except share and per share data Basic and diluted Loss attributable to owners of the parent (81,414 ) (112,275 ) (155,575 ) Shares used in calculation Weighted-average shares outstanding 188,679,490 223,465,734 264,432,214 Basic and diluted loss per share attributable to owners of the parent (0.43 ) (0.50 ) (0.59 ) Potential dilutive securities that are not included in the diluted per share calculations because they would be anti-dilutive are as follows: 2016 2017 2018 Employee options 5,462 6,675 14,649 Warrants 3,142 3,303 125 Contingently issuable shares - 994 - |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Classes Of Inventories [Abstract] | |
Inventories | 13. Inventories 2017 2018 Finished goods 50,610 60,954 50,610 60,954 The total cost of inventory recognized as an expense in the consolidated profit or loss was $87,416,000 (2017: $55,192,000). The total provision against inventory in order to write down the balance to the net recoverable value was $4,182,000 (2017: $1,162,000). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Receivables [Abstract] | |
Trade and other receivables | 14. 2017 2018 Current Other receivables 5,294 48,285 Sales taxes 5,307 10,352 Prepayments and accrued income 7,394 34,342 Derivative financial assets (note 28) 185 691 18,180 93,670 Non-current Other receivables 9,193 10,458 9,193 10,458 The carrying amount of other receivables approximates their fair value. The maximum credit risk at the balance sheet date is considered to be equivalent to the carrying value of other receivables. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets And Goodwill [Abstract] | |
Intangible assets | 15. Intangible assets Goodwill Brand, trademarks & domain names Customer relationships Development costs Total Cost At December 31, 2016 25,503 3,555 1,030 17,785 47,873 Additions 10,073 3,046 1,178 18,997 33,294 Transfers - 139 - (139 ) - Foreign exchange movements 2,873 549 176 2,294 5,892 At December 31, 2017 38,449 7,289 2,384 38,937 87,059 Additions - - - 50,978 50,978 Transfers - - - 166 166 Foreign exchange movements (2,406 ) (443 ) (145 ) (4,602 ) (7,596 ) At December 31, 2018 36,043 6,846 2,239 85,479 130,607 Accumulated amortization At December 31, 2016 - (689 ) (256 ) (3,985 ) (4,930 ) Amortization for year - (745 ) (272 ) (6,315 ) (7,332 ) Transfers - (67 ) - 67 - Foreign exchange movements - (103 ) (37 ) (616 ) (756 ) At December 31, 2017 - (1,604 ) (565 ) (10,849 ) (13,018 ) Amortization for year - (459 ) (1,057 ) (14,683 ) (16,199 ) Transfers - - - - - Foreign exchange movements - 123 96 1,736 1,955 At December 31, 2018 - (1,940 ) (1,526 ) (23,796 ) (27,262 ) Net book value At December 31, 2017 38,449 5,685 1,819 28,088 74,041 At December 31, 2018 36,043 4,906 713 61,683 103,345 Included within development costs is $205,000 (2017: $666,000) of assets that are under the course of construction. Amortization of this will commence once they have been brought into use. Development costs relate to capitalized development expenses relating to development of internal software and developments of the Farfetch websites. Additions to goodwill, brands, trademarks & domain names and customer relationships in 2017 arose due to business combinations. See note 5. Amortization for all intangible assets is all recorded in selling, general and administrative expenses. Goodwill reflects the amount of consideration in excess of the fair value of net assets of business combinations. The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired. Goodwill has been allocated to the following CGUs. For details regarding additions to goodwill refer to note 5. 2017 2018 CGU* Marketplace 17,916 16,368 Browns – Platform 20,533 19,675 38,449 36,043 * Only two of the Group’s CGUs have goodwill allocated. The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use calculations are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the period. Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money and the risks specific to the CGUs and the group of units. The growth rates are based on industry growth forecasts. The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next five years. The key assumptions for the value in use calculations are the long term growth rate applied to year five onwards and the discount rates. The Group extrapolates the cash flows in the fifth year based on an estimated growth rate of 2% (2017: 2%). This rate does not exceed the average long-term growth rate for the relevant markets. The pre-tax rate used to discount the forecast cash flows ranges from 9.7% to 11.8% (2017: 10.9% to 12.3%). The pre-tax discount rate applied is derived from a market participant’s weighted average cost of capital. The assumptions used in the calculation of the Group’s weighted average cost of capital are benchmarked to externally available data. Management has performed sensitivities on key assumptions and based upon these believe that there are no reasonably possible changes that could create an impairment. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Property, plant and equipment | 16. Property, plant and equipment Leasehold improvements Fixtures and fittings Motor vehicles Computer equipment Totals Cost At December 31, 2016 14,612 2,211 162 4,319 21,304 Additions 7,717 3,230 - 2,000 12,947 Disposals (249 ) (175 ) (39 ) (364 ) (827 ) Transfers - (177 ) - 177 - Foreign exchange movements 1,373 427 19 431 2,250 At December 31, 2017 23,453 5,516 142 6,563 35,674 Additions 16,086 2,083 - 3,318 21,487 Disposals (1,489 ) (211 ) (28 ) (61 ) (1,789 ) Transfers (1,156 ) 889 - 101 (166 ) Foreign exchange movements (1,830 ) (501 ) (5 ) (525 ) (2,861 ) At December 31, 2018 35,064 7,776 109 9,396 52,345 Accumulated depreciation At December 31, 2016 (2,260 ) (971 ) (115 ) (2,163 ) (5,509 ) Depreciation for year (1,674 ) (972 ) (14 ) (988 ) (3,648 ) Disposals 249 171 28 337 785 Transfers (98 ) 61 - 37 - Foreign exchange movements (225 ) (151 ) (11 ) (219 ) (606 ) At December 31, 2017 (4,008 ) (1,862 ) (112 ) (2,996 ) (8,978 ) Depreciation for year (4,091 ) (1,196 ) (14 ) (2,037 ) (7,338 ) Disposals 562 136 28 35 761 Transfers - 11 - (11 ) - Foreign exchange movements 375 129 4 230 738 At December 31, 2018 (7,162 ) (2,782 ) (94 ) (4,779 ) (14,817 ) Net book value At December 31, 2017 19,445 3,654 30 3,567 26,696 At December 31, 2018 27,902 4,994 15 4,617 37,528 Included within leasehold improvements and computer equipment is respectively $6,312,000 and $nil ($6,312,000 and $nil) of assets that are under the course of construction. Depreciation will commence once they have been brought into use. Depreciation for all property, plant and equipment is all recorded in selling, general and administrative expenses. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Associates [Abstract] | |
Investments | 17. Investments Equity investments In 2018 the Group held minor equity interests worth $566,000 (2017: $278,000). Equity investments are carried at fair value. Investments in associates The table below illustrates the summarized financial information of the Group’s investment in Farfetch Finance Limited (“the associate”). The Group holds 25% of issued capital of the associate. The principal activity of the associate is the provision of trade finance and it is incorporated in England & Wales. The associate is accounted for using the equity method. Share of associates net assets At December 31, 2016 23 Share of profit after tax 35 At December 31, 2017 58 Share of profit after tax 28 At December 31, 2018 86 |
Share capital and share premium
Share capital and share premium | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Share capital and share premium | 18. Share capital and share premium Ordinary shares issued and fully paid as at December 31, 2018 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 256,998,920 Class A ordinary shares 0.04 10,280 726,791 783,529 1,520,600 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 299,857,000 11,994 772,300 783,529 1,567,823 During 2018, 67,410,405 shares were issued. All were fully paid and newly issued Class A ordinary shares principally relating to the IPO and concurrent private placement in September 2018 where 41,608,088 Class A ordinary shares were issued. The nominal value of all shares issued is $0.04 each. Transaction costs related to the IPO and recognized directly in equity amount to $11,914,000. Additionally, 14,961,544 shares in respect of warrants and share options were exercised as prior to the IPO and 361,343 share options were exercised following the IPO. In January 2018, there was a series G funding round follow-on where 8,502,500 Class A ordinary shares were issued. Transaction costs recognized directly in equity amount to $36,000. The Browns earn-out was also settled through the issue of 1,976,930 shares in April 2018 which had previously been recognized as a financial liability as the number of shares was variable based on the earn-out mechanism, rather than being a cash-settled liability. Prior to the IPO, the Group was restructured. The merger reserve resulted from the restructuring. Further detail can be found in note 1. Ordinary shares issued and fully paid as at December 31, 2017 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 189,588,515 Class A ordinary shares 0.04 7,584 632,165 - 639,749 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 232,446,595 9,298 677,674 - 686,972 In the year ended December 31, 2017, 36,346,645 shares were issued. All were fully paid. Of these shares, 34,222,510 were newly issued Class A ordinary share from the series G funding round and the remainder 2,124,135 were Class A ordinary shares. The nominal value of all shares issued is $0.04 each. Transaction costs recognized directly in equity amounted to $414,000. Each ordinary share and preferred share shall rank equally for any dividends paid. On a liquidation event the holder of preferred shares will have the priority on the available assets. Each ordinary and class of preferred shares shall rank equally in relation to voting rights. 19. Reserves Other reserves Foreign exchange reserve Warrant reserve Changes in ownership Share based payments Cashflow hedge reserve Merger relief reserve Accumulated losses At December 31, 2015 (6,771 ) 338 (8,666 ) 12,437 - - (128,475 ) Loss for the year - - - - - - (81,414 ) Movement in foreign exchange reserve (27,322 ) - - - - - - Warrants issued - 409 - - - - - Transactions with non-controlling interests 1,222 - - - - - - Share based payments - equity settled - - - 15,339 - - (7,012 ) At December 31, 2016 (32,871 ) 747 (8,666 ) 27,776 - - (216,901 ) Loss for the year - - - - - - (112,275 ) Movement in foreign exchange reserve 33,504 - - - - - - Transactions with non-controlling interests - - - - - 2,161 - Share based payments - equity settled - - - 16,457 - - (1 ) At December 31, 2017 633 747 (8,666 ) 44,233 - 2,161 (329,177 ) Loss for the year - - - - - - (155,575 ) Movement in foreign exchange reserve (24,142 ) - - - - - - Movement in cash flow hedge reserve - - - - 436 - - Share based payments - equity settled - - - 28,563 - - 1,395 At December 31, 2018 (23,509 ) 747 (8,666 ) 72,796 436 2,161 (483,357 ) The foreign exchange reserve represents the cumulative exchange differences on the translation of the Group’s overseas subsidiaries into the Group’s presentational currency. The warrant reserve represents the cumulative expense of the shares to be issued where the Group has issued warrants. The changes in ownership reserve represents transactions with former non-controlling interests of the Group. The share based payment reserve represents the Group’s cumulative equity settled share option expense. On exercise, the cumulative share option expense is reclassified to accumulated losses. The cash flow hedge reserve is used to recognize the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges. The merger relief reserve represents the excess over nominal share capital where there has been share consideration as part of a business combination. Accumulated losses represent the cumulative gains and losses recorded in the statement of operations. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2018 | |
Other Reserves [Abstract] | |
Share capital and share premium | 18. Share capital and share premium Ordinary shares issued and fully paid as at December 31, 2018 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 256,998,920 Class A ordinary shares 0.04 10,280 726,791 783,529 1,520,600 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 299,857,000 11,994 772,300 783,529 1,567,823 During 2018, 67,410,405 shares were issued. All were fully paid and newly issued Class A ordinary shares principally relating to the IPO and concurrent private placement in September 2018 where 41,608,088 Class A ordinary shares were issued. The nominal value of all shares issued is $0.04 each. Transaction costs related to the IPO and recognized directly in equity amount to $11,914,000. Additionally, 14,961,544 shares in respect of warrants and share options were exercised as prior to the IPO and 361,343 share options were exercised following the IPO. In January 2018, there was a series G funding round follow-on where 8,502,500 Class A ordinary shares were issued. Transaction costs recognized directly in equity amount to $36,000. The Browns earn-out was also settled through the issue of 1,976,930 shares in April 2018 which had previously been recognized as a financial liability as the number of shares was variable based on the earn-out mechanism, rather than being a cash-settled liability. Prior to the IPO, the Group was restructured. The merger reserve resulted from the restructuring. Further detail can be found in note 1. Ordinary shares issued and fully paid as at December 31, 2017 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 189,588,515 Class A ordinary shares 0.04 7,584 632,165 - 639,749 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 232,446,595 9,298 677,674 - 686,972 In the year ended December 31, 2017, 36,346,645 shares were issued. All were fully paid. Of these shares, 34,222,510 were newly issued Class A ordinary share from the series G funding round and the remainder 2,124,135 were Class A ordinary shares. The nominal value of all shares issued is $0.04 each. Transaction costs recognized directly in equity amounted to $414,000. Each ordinary share and preferred share shall rank equally for any dividends paid. On a liquidation event the holder of preferred shares will have the priority on the available assets. Each ordinary and class of preferred shares shall rank equally in relation to voting rights. 19. Reserves Other reserves Foreign exchange reserve Warrant reserve Changes in ownership Share based payments Cashflow hedge reserve Merger relief reserve Accumulated losses At December 31, 2015 (6,771 ) 338 (8,666 ) 12,437 - - (128,475 ) Loss for the year - - - - - - (81,414 ) Movement in foreign exchange reserve (27,322 ) - - - - - - Warrants issued - 409 - - - - - Transactions with non-controlling interests 1,222 - - - - - - Share based payments - equity settled - - - 15,339 - - (7,012 ) At December 31, 2016 (32,871 ) 747 (8,666 ) 27,776 - - (216,901 ) Loss for the year - - - - - - (112,275 ) Movement in foreign exchange reserve 33,504 - - - - - - Transactions with non-controlling interests - - - - - 2,161 - Share based payments - equity settled - - - 16,457 - - (1 ) At December 31, 2017 633 747 (8,666 ) 44,233 - 2,161 (329,177 ) Loss for the year - - - - - - (155,575 ) Movement in foreign exchange reserve (24,142 ) - - - - - - Movement in cash flow hedge reserve - - - - 436 - - Share based payments - equity settled - - - 28,563 - - 1,395 At December 31, 2018 (23,509 ) 747 (8,666 ) 72,796 436 2,161 (483,357 ) The foreign exchange reserve represents the cumulative exchange differences on the translation of the Group’s overseas subsidiaries into the Group’s presentational currency. The warrant reserve represents the cumulative expense of the shares to be issued where the Group has issued warrants. The changes in ownership reserve represents transactions with former non-controlling interests of the Group. The share based payment reserve represents the Group’s cumulative equity settled share option expense. On exercise, the cumulative share option expense is reclassified to accumulated losses. The cash flow hedge reserve is used to recognize the effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges. The merger relief reserve represents the excess over nominal share capital where there has been share consideration as part of a business combination. Accumulated losses represent the cumulative gains and losses recorded in the statement of operations. |
Group Information
Group Information | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Group information | 20. Group information At December 31, 2018, the Company’s subsidiaries were as follows: Direct Holdings Company name Country of incorporation % equity interest Principal activities 2017 2018 Farfetch.com Limited Isle of Man 100 100 Holding company Indirect Holdings Company name Country of incorporation % equity interest Principal activities 2017 2018 Farfetch UK Limited England & Wales 100 100 Marketing, providing editorial and merchant services FFBR importacao e exportacao LTDA* Brazil 100 100 Import & Export Agent for Farfetch Farfetch.com Brasil Servicos LTDA** Brazil 100 100 E-commerce, marketing and editorial services Farfetch.com US LLC USA 100 100 E-commerce and marketing Farfetch-Portugal Unipessoal LDA Portugal 100 100 Back office support Farfetch HK Holdings Limited Hong Kong 100 100 Holding Company Browns (South Molton Street) Limited England & Wales 100 100 Retail Farfetch Japan Co Ltd Japan 100 100 E-commerce and marketing LASO.CO.LTD Japan 100 100 E-commerce and marketing Farfetch China (HK Holdings) Limited Hong Kong 100 100 Holding company Farfetch (Shanghai) E-Commerce Co. Ltd China 100 100 E-commerce services Farfetch HK Production Limited Hong Kong 100 100 E-commerce and marketing Farfetch Store of the Future Limited England & Wales 100 100 Dormant Fashion Concierge UK Limited England & Wales 100 100 E-commerce services F&C Fashion Concierge, LDA Portugal 100 100 Dormant Farfetch Black & White Limited England & Wales 100 100 E-commerce services Farfetch International Limited Isle of Man 100 100 Holding company Farfetch México, S.A de C.V*** Mexico 100 100 Back office support Fashion Concierge Powered By Farfetch, LLC USA 100 100 E-commerce services Farfetch India Private Limited**** India 100 100 Back office support Farfetch Middle East FZE UAE 100 100 Back office support Farfetch Italia S.R.L. Italy 100 100 Back office support Farfetch Australia Pty Ltd Australia 100 100 Back office support Farfetch US Holdings, INC USA 100 100 Holding Company Fashion Concierge HK Limited Hong Kong 100 100 E-commerce services Farfetch Finance Limited England & Wales 25 25 Finance Yankee Merger Sub, LLC USA 100 100 Merger Company for acquisition * Owned by Farfetch.com Limited (99.9%) and Farfetch UK Limited (0.1%) ** Owned by Farfetch.com Limited (99.9995%) and Farfetch UK Limited (0.0005%) *** Owned by Farfetch.com Limited (1%) and Farfetch UK Limited (99%) **** Owned by Farfetch.com Limited (0.1%) and Farfetch UK Limited (99.9%) |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2018 | |
Non Controlling Interests [Abstract] | |
Non-controlling interests | 21. Non-controlling interests On January 11, 2017, the Group acquired the remaining 0.1% of FFBR importação e exportação Ltda that it did not already own. The effect of changes in the ownership interest of the Group on the equity attributable to owners of the company during the year and prior year is summarized as follows: 2017 2018 Balance brought forward (1 ) - Transactions with non-controlling interests 1 - Loss attributable to non-controlling interests - - - - |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Current Payables [Abstract] | |
Trade and other payables | 22. Trade and other payables 2017 2018 Trade payables 73,992 96,176 Other payables 713 350 Social security and other taxes 6,646 6,194 Income tax payable 666 1,514 Accruals and deferred revenue 54,727 89,924 136,744 194,158 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Detailed Information About Warrants [Abstract] | |
Disclosure of Warrants | 23. Warrants During 2016, the Group issued warrants, which are linked to the $20m of Promissory notes issued in 2016, which were subsequently repaid in 2017. Date of issue Number of shares Warrant price Expiration date October 3, 2016 122,935 $ 6.15 12 years from issue date August 1, 2016 33,530 $ 6.15 12 years from issue date December 23, 2016 33,530 $ 6.15 12 years from issue date As at December 31, 2018, all warrants above remain unexercised. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [Abstract] | |
Provisions | 24. Provisions Dilapidations provision Share based payments employment taxes provision Total 2017 2018 2017 2018 2017 2018 At January 1 1,834 2,165 2,101 2,977 3,935 5,142 Additional provision in the year 406 1,263 1,012 6,614 1,418 7,877 Transfer from trade and other payables - - - 2,182 - 2,182 Release of provision in the year - (815 ) - - - (815 ) Foreign exchange (75 ) (98 ) (136 ) (826 ) (211 ) (924 ) At December 31 2,165 2,515 2,977 10,947 5,142 13,462 The dilapidations provision reflects the best estimate of the cost to restore leasehold property in line with the Group’s contractual obligations. Based on a detailed analysis the Group has estimated a liability of $2,515,000 (2017: $2,165,000). In estimating the liability the Group has made assumptions which are based on past experience. Assuming the leases are not extended, the Group expects the economic outflows to match the contractual end date of Group leases. The Group leases have an average length of six years with an average of four years remaining. The share based payments employment taxes provision reflects the best estimate of the cost to settle employment related taxes on the Group share based payments based on the most recent share price and the number of share options expected to vest where the Group has an obligation to settle employment related taxes. The Group has estimated a liability of $10,947,000 (2017: $2,977,000).When a share option is exercised, the liability for employment related taxes crystalizes. During 2018, $2,182,000 (2017: $nil) was transferred from provisions to trade and other payables. As at December 31, 2018 none of the amount in trade and other payables had been utilized (2017: $nil). We expect the provision to be fully utilized in 9.54 years (2017: 8.00 years) being the weighted average remaining contracted life of options outstanding at year end. It is likely that this provision will be utilized over a shorter period. However, this is dependent on when the option holder exercises which the Group is not in control of. |
Deferred tax
Deferred tax | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Tax Assets And Liabilities [Abstract] | |
Deferred tax | 25. Deferred tax As a result of the purchase price allocation exercise arising from the acquisition of Style.com a deferred tax liability of $719,000 has been recognized in 2017 as a temporary difference. Refer to note 5. Deferred tax liabilities Note 2017 2018 At January 1 493 1,079 Deferred tax recognized on acquisition 5 719 - Foreign exchange 91 (52 ) Released to profit or loss (224 ) (282 ) At December 31 1,079 745 Deferred tax assets 2017 2018 At January 1 493 1,079 Deferred tax recognized 719 - Foreign exchange 91 (52 ) Released to profit or loss (224 ) (282 ) At December 31 1,079 745 Deferred tax, net At December 31 - - A deferred tax asset has been recognized in 2017 following the acquisition of Style.com (note 5) equal to and to fully offset the deferred tax liability. Deferred tax assets have been offset against deferred tax liabilities because they are in the same jurisdiction. Unrecognized deferred tax assets Unutilized trading tax losses The Group has accumulated unutilized tax losses carried forward as at December 31, 2018 of $382m (2017: $232m). A net deferred tax asset is only recognized where it can be shown that it is probable that future taxable profits will be available against which the Group can utilize the asset. Subject to specific legislation regarding changes in ownership and the nature of trade, trading losses are available to be either carried forward indefinitely or for a significant time period. Local currency 2017 2017 2018 2018 Local ‘m $’m Local ‘m $’m UK trading losses GBP 136 184 259 331 US Net Operating Losses (“NOL”) USD 29 29 34 34 Brazil trading losses BRL 42 13 49 13 Japan trading losses JPY 463 4 274 2 Hong Kong trading losses HKD 16 2 14 2 686 232 630 382 UK trading losses are available to be carried forward indefinitely. Legislation has been introduced with effect from April 1, 2017 whereby losses arising after April 1, 2017 can be set against total profits of the company. The amount of total profits that can be offset by brought forward losses is restricted to the first £5m of profits, and an additional 50% of profits that exceed £5.0m. US Net Operating Losses as at December 31, 2017 ($29m) are available to be carried forward for a period of 20 years. The carry forward NOLs start to expire in different years, the first of which is December 31, 2030. NOLs generated after January 1,2018 ($5m) have an indefinite carry forward period but are subject to an 80% limitation per year. Brazilian, Japanese and Hong Kong trading losses as at December 31, 2018 are available to be carried forward indefinitely but utilization of losses in respect of Brazil and Japan are restricted to 30% and 50% respectively against taxable income in future taxable periods. Unutilized future tax deductions on employee share option gains The Group has an unrecognized gross deferred tax asset of approximately $212m in respect of a future tax deduction on share options that are unexercised as at 31 December 2018 that when exercised will result in a gain and a potential deduction for corporation tax purposes. A net deferred tax asset is only recognized where it can be shown that it is probable that future taxable profits will be available against which the Group can utilize the asset. |
Commitments and guarantees
Commitments and guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Commitments And Guarantees [Abstract] | |
Commitments and guarantees | 26. Commitments and guarantees Consolidated Future minimum lease payments under non-cancellable operating leases as at the year end were: 2017 2018 No later than one year 11,929 15,820 Later than one year not later than three years 20,297 26,599 Later than three year not later than five years 11,251 22,584 Later than five years 22,656 38,031 66,133 103,034 The Group’s operating leases relate to motor vehicles and property leases for the various office, production and retail stores that the Group has. There is no contingent rent (2017: none). Several leases have a right to renew at the end of the lease term. There are no contingent liabilities (2017: none). |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Transactions Between Related Parties [Abstract] | |
Related party disclosures | 27. Related party disclosures Platforme International Limited is a related party of J M F Neves. The Group generated commission of $557,000 (2017: $248,000) from Platforme International Limited. The Group had a $13,000 receivable in 2018 (2017: $70,000 receivable). Total compensation and benefits in kind (excluding share-based payments) to key management personnel amounted to $1,284,000 (2017: $1,200,000). In addition to this, there was share based payment compensation of $7,869,000 (2017: $1,900,000). Conde Nast is a related party by virtue of its shareholding in the Group. The Group incurred marketing expenditure of $346,000 (2017: nil) and had a $19,000 payable in 2018 (2017: nil). Until October 21, 2017, when Fashion Concierge UK Limited was acquired, see note 5, the Group made sales totaling, $110,000 to Fashion Concierge UK Limited. This was a related party of J M F Neves. The acquisition of the business of Style.com (note 5) was a related party transaction because the former owners of Style.com Conde Nast, are also a shareholder of the Group. Jonathan Newhouse, the current chairman and chief executive of Conde Nast International is also a director of Farfetch.com Limited. The Group’s ultimate controlling party is J M F Neves by virtue of holding the majority of voting rights in the Group. |
Financial instruments and finan
Financial instruments and financial risk management | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Financial Instruments [Abstract] | |
Financial instruments and financial risk management | 28. Financial instruments and financial risk management The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns. All debt has been settled in 2017. The capital structure of the Group throughout 2017 consisted of net cash (borrowings disclosed in note 23) and equity of the Group (comprising issued capital, reserves, accumulated losses and non-controlling interests as disclosed in notes 18, 19 and 21). At December 31, 2017 and 31 December 2018, the capital structure consisted solely of equity. The Group is not subject to any externally imposed capital requirements. The Group is exposed to risks which arise from the probability of changes in the fair value of the future cash flows deriving from a financial instrument due to fluctuations in market prices. The Group has identified two principal risks being market risk (foreign exchange) and liquidity risk. Where all relevant criteria are met, hedge accounting is applied to remove the accounting mismatch between the hedging instrument and the hedged item. This will effectively result in recognizing inventory at the fixed foreign currency rate for the hedged purchases. Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed in note 2. Categories of financial instruments Financial assets Amortized cost Amortized cost 2017 2018 Current Other receivables 5,294 48,285 Cash and cash equivalents 384,002 1,044,786 Non-current Other receivables 9,193 10,458 Total 398,489 1,103,529 2017 2018 Foreign currency forwards - held at FVTPL 185 255 Foreign currency forwards - held as cash flow hedges - 436 Derivative financial assets 185 691 Financial liabilities Amortized cost Amortized cost 2017 2018 Trade payables 73,992 96,176 Other payables 713 350 Total 74,705 96,526 Fair value through profit or loss Fair value through profit or loss 2017 2018 Contingent consideration 19,146 - 19,146 - Financial risk management objectives The Group’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets and monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Group seeks to minimize the effects of these risks, where appropriate, by using derivative financial instruments to hedge these risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provide written principles on foreign exchange risk, interest rate risk, credit risk and the use of derivatives. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Market risk The Group’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates (see table below). The Group enters into derivative financial instruments to manage its exposure to foreign currency risk. Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group uses forward currency contracts to hedge its foreign currency risks. Where the criteria for hedge accounting are not met, derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value with movements recorded to the statement of operations. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Where all relevant criteria are met, hedge accounting is applied to minimize earnings volatility. Financial assets/(liabilities) at fair value through profit or loss 2017 2018 2017 2018 Derivative financial asset/(liability) 226 691 (41 ) - Liquidity risk The Group monitors its liquidity risk to maintain a balance between continuity of funding and flexibility. This helps the Group achieve timely fulfilment of its obligations while sustaining the growth of the business. The table below analyses the Group’s financial liabilities into relevant groupings based on the remaining period from the reporting date to the contractual maturity date. Amounts due within 12 months equal their carrying balances, as the impact of discounting is not significant. All derivative financial instruments have a maturity of less than 12 months. Less than one year Less than one year 2017 2018 Trade and other payables 74,705 96,526 Contingent consideration 19,146 - Total 93,851 96,526 More than one year More than one year 2017 2018 Contingent consideration - - Borrowings - - - - Credit risk Credit risk is the risk that financial loss arises from the failure of a customer to meet its obligations under a contract. Due to the nature of operations the Group does not have significant exposure to credit risk. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade and other receivables. The Group applies a loss allowance to trade and other receivables. As at December 31, 2018 all trade and other receivables were considered current being due within 30 days. The expected loss rate the Group applies for trade and other receivables is 0.5%. The expected loss rates are based on the payment profiles of sales over a period of 36 month before 31 December 2018 or 1 January 2018 respectively and the corresponding historical credit losses experienced within this period which were not significant. The historical loss rates are adjusted to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in these factors. The majority of the Group’s cash and cash equivalents balance is held in money market funds which are regulated by securities and market authorities. These consist of AAA rated mutual investment funds which are permitted to diversify portfolio investments through high quality debt securities meeting regulatory mandated requirements. As such, the Group is not exposed to any material credit risk in relation to the cash and cash equivalents balance. Capital risk management The Group’s objective when managing capital is to safeguard the Group’s ability to provide returns for members and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. At December 31, 2018, the Group does not hold any restricted cash (2017: $nil). The Group is not subject to any externally imposed capital requirements. The capital structure is as follows: 2017 2018 Total borrowings - - Less: cash and cash equivalents (384,002 ) (1,044,786 ) Net cash (384,002 ) (1,044,786 ) Total equity 396,903 1,128,431 Total capital 12,901 83,645 The main purpose of the Group’s financial instruments is to finance the Group’s operations. The main risks from the Group’s financial instruments are currency riskand liquidity risk. The Board reviews and agrees policies, which have remained substantially unchanged for the year under review, for managing these risks. Fair value hierarchy Financial instruments carried at fair value are categorized into the below levels, reflecting the significance of the inputs used in estimating the fair values: Level 1: Quoted prices (unadjusted) in active markets for identical instruments; Level 2: Valuation techniques based on observable inputs, other than quoted prices included within level 1, that are observable either directly or indirectly from market data; Level 3: Valuation techniques using significant unobservable inputs, this category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. The Group recognizes the following financial instruments at fair value: • derivative financial instruments, measured using a level 2 valuation method; and • contingent consideration, measured using a level 2 valuation method. The valuation of contingent consideration in 2017 was based upon the share price of the Group, which is deemed to be observable. As there was no quoted price the share price applied was from the most recent, pre-IPO, funding round, being Series G. The Group recognized net losses of $3,313,000 in 2017 when remeasuring the above to their fair values. Financial instruments sensitivity analysis In managing currency risk the Group aims to reduce the impact of short term fluctuations on its earnings. At the end of each reporting year, the effects of hypothetical changes in currency are as follows. Foreign exchange rate sensitivity analysis The table below shows the Group’s sensitivity to United States dollars strengthening/weakening by 10%: Increase/ (decrease) in profit or loss Increase/ (decrease) in profit or loss 2017 2018 10% appreciation of United States dollars 7,576 29,169 10% depreciation of United States dollars (9,260 ) (35,651 ) This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the end of the reporting year. The analysis assumes that all other variables, in particular interest rates, remain constant. |
Share options-equity and cash s
Share options-equity and cash settled | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Share Options Equity And Cash Settled [Abstract] | |
Share options-equity and cash settled | 29. Share options equity and cash settled The Group has four equity settled share option plans (section a) and a cash settled share option plan (section b). a. Equity settled During the year ended December 31, 2018, the Group had four equity settled share based payment plans which are described below. Type of arrangement EMI approved share option plan Unapproved share option plan LTIP 2015 plan LTIP 2018 plan Date of first grant November 1, 2011 July 1, 2011 September 9, 2015 September 20, 2018 Number granted 5,505,600 11,332,835 38,174,980 3,465,915 Contractual life 10 years 10 years 10 years 10 years Vesting conditions Varying tranches of options vesting upon defined years of service Varying tranches of options vesting upon defined years of service Varying tranches of options vesting upon defined years of service with certain awards having non-market conditions Varying tranches of options and Restricted Stock Units (RSU) vesting upon defined years of service Movements on the share options were as follows: 2016 2017 2018 Number of options Number of options Number of options Options at beginning of year 16,611,310 17,522,365 32,307,010 Options granted 6,128,555 15,666,155 18,209,410 Options exercised (2,510,570 ) (198,525 ) (3,032,571 ) Options forfeited (2,706,930 ) (682,985 ) (3,265,035 ) 17,522,365 32,307,010 44,218,814 Options exercisable at end of year 10,214,900 12,551,425 16,830,409 Weighted average exercise prices were as follows: 2016 2017 2018 Options at beginning of year $ 0.76 $ 2.01 $ 4.43 Options granted $ 3.34 $ 7.10 $ 9.84 Options forfeited $ 0.57 $ 6.71 $ 7.31 Options exercised $ 0.08 $ 0.08 $ 2.38 Options at end of year $ 2.01 $ 4.43 $ 6.15 Options exercisable at year end $ 1.08 $ 1.59 $ 2.33 Weighted average remaining contracted life of options outstanding at year end 7.67 years 8.00 years 9.54 years 2016 2017 2018 Number of options Number of options Number of options Exercise price of options outstanding at year end $0.00 to $0.08 6,090,695 5,868,735 4,416,525 $0.09 to $0.56 5,581,825 5,581,825 2,126,540 $0.57 to $3.52 5,002,505 6,302,505 4,595,104 $3.53 to $5.73 847,340 8,589,445 6,257,690 $5.74 to $7.39 - 5,964,500 7,890,495 $7.40 to $20.00 - - 18,932,460 17,522,365 32,307,010 44,218,814 Weighted average fair value of options granted in year $ 2.43 $ 2.41 $ 4.17 Weighted average share price at the date of exercise for options exercised during the year ended December 31, 2018 was $20.00 (2017: $9.42). Inputs in the Black Scholes model for share options granted during the year and prior year were as follows: 2016 2017 2018 Black Scholes model Weighted average share price $ 6.15 $ 9.87 $ 11.83 Weighted average exercise price $ 3.34 $ 7.10 $ 9.84 Average expected volatility 20% 20% 23% Expected life 4 years 4 years 4 years Risk free rate 1.40% 1.85% 2.75% Expected dividends $nil $nil $nil Expected volatility was determined with reference to historical volatility of publicly traded peer companies. The expected life in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and behavioral considerations. The Group recognized total expenses of $34,668,000, $16,667,000 and $17,256,000 related to equity-settled share based payment transactions in 2018, 2017 and 2016 respectively. b. Cash settled Since 2016 the Group issues to certain employees share appreciation rights (“SAR”s) that require the Group to pay the intrinsic value of the SAR to the employee at the date of exercise. The Group has recorded liabilities of $15,342,000 in 2018 ($5,123,000 in 2017) through the grant of 769,000 SARs (2017: 222,696 SARs). The fair value of the SARs is determined by using the Black Scholes model using the same assumptions noted in the above table for the Group’s equity-settled share based payments. The fair value of the liability is then reassessed at each reporting date. Included in the 2018 expense of $10,355,000 (2017: $3,807,000, 2016: $1,178,000), is a revaluation gain of $6,079,000 (2017: gain of $2,071,000). The total intrinsic value at December 31, 2018 was $19,425,000 (2017: $7,362,000) of which $8,722,000 is fully vested (2017: $2,965,000). |
Events after the reporting year
Events after the reporting year | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Nonadjusting Events After Reporting Period [Abstract] | |
Events after the reporting year | 30. Events after the reporting year On January 4, 2019, Farfetch Limited completed the acquisition of 100% of outstanding shares of Stadium Goods, the premier sneaker and streetwear marketplace with total consideration of $240,200,000. The Group expects to benefit from Stadium Goods’ brand, access to supply, and a team which will join the Group, bringing with them a strong passion for, and knowledge of, luxury streetwear. The consideration payable by the Group is in the form of cash and Farfetch Limited shares. The consideration payable was split as $150,200,000 of cash, and 4,641,554 Class A Ordinary Shares with a value of $90,000,000 based on the Farfetch share price at the acquisition date. The transaction will be accounted for as a business combination under IFRS 3. Of the $90,000,000 share consideration, $58,100,000 includes a service condition for certain members of the Stadium Goods management team remaining with the Group over a four-year period. This does not satisfy the IFRS 3 definition of consideration and will be recognized as an expense in the statement of operations over the four-year service period as a share-based payment expense. Therefore, under IFRS 3, the consideration is $182,100,000 consisting of $150,200,000 cash consideration and $31,900,000 share consideration, none of which is contingent on future performance or service conditions. Based on our preliminary purchase price allocation, which we expect to complete in Q1 2019 following finalization of the work, the total accounting consideration of $182,100,000, relates to the following: Net identified liabilities acquired of $8,900,000, comprising $2,400,000 of non-current assets, $(100,000) of net working capital, $800,000 of inventory, and $12,000,000 of provisions for withholding and sales taxes. $221,400,000 is allocated to goodwill and identifiable intangible assets acquired, comprising goodwill of $104,500,000 and the Stadium Goods Brand name of $116,900,000. Finally, there is a deferred tax liability of $30,400,000 in respect of the brand name. Goodwill consists of expected synergies to be achieved by combining the operations of Stadium Goods with the Group, as well as other intangible assets that do not qualify for separate recognition under IFRS 3. Goodwill is not expected to be deductible for tax purposes. In January 2019, the functional currency of Farfetch UK Limited, the Group’s primary trading entity, changed from pound sterling to U.S dollar. This was a result of a gradual change in the primary economic environment in which Farfetch UK Limited operates driven by the growth of consumers where the Group receives U.S. Dollars in settlement. This is combined with an increase in costs influenced by movements in the U.S dollar. The Group’s corporate treasury function continually monitors the Group’s exposure to foreign currencies movements, as described in note 28. Following the gradual change described above, the Group determined that, whilst Farfetch UK Limited is exposed to movements in several key currencies including U.S dollars, euros and pound sterling, on reviewing Farfetch UK Limited’s expected receipts and expenses, U.S dollars had become the dominant currency from January 2019. This has hence triggered a change in functional currency. On February 26, 2019, the Group entered into an Asset Purchase Agreement with Shanghai Yuanmai Trading Co., Ltd. to purchase “Level 1 Access” to the JD.com app, Toplife customer data, certain intellectual property and certain non-current assets for cash consideration of $50 million. The transaction will be accounted for as a business combination under IFRS 3 with the assets acquired constituting a business as defined by IFRS 3. Given the timing of the transaction, the Group is still finalizing the purchase price allocation and expects this to be completed by the end of the first quarter 2019. JD.com is a related party of the Group by virtue of the shareholding it has in the Group. Richard Liu, the founder, Chairman and Chief Executive Officer of JD.com, is a former director of the Board of Farfetch Limited. Dr. Jon Jainwen Liao, the Chief Strategy Officer of JD.com joined the board of Farfetch Limited in February 2019, following the departure of Richard Liu. There have been no other events after the reporting year. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Policies [Abstract] | |
Basis of preparation | 2.1. The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements have been prepared under the historical cost convention unless otherwise stated. The consolidated financial statements are presented in United States dollars (“United States Dollars” or “USD” or “$”). All values are rounded to the nearest thousand dollars, except where indicated. The tables in these notes are shown in USD thousands, except where indicated. The consolidated financial statements provide comparative information in respect of the previous periods. |
Basis of consolidation | 2.2. The consolidated financial statements comprise the financial statements of the Group and its subsidiaries. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee; • Rights arising from other contractual arrangements; and • The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (“OCI”) are attributed to the equity holders of the parent of the Group and to the non-controlling interests. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. |
Business combinations and goodwill | a) Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred measured at acquisition date fair value and the amount of any non-controlling interests in the acquiree. For each business combination, the Group measures the non-controlling interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. Any contingent consideration to be transferred by the Group is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability that is a financial instrument and is measured at fair value with changes in fair value recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests over the net identifiable assets acquired and liabilities assumed which are measured at fair value at the date of acquisition. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (“CGU”) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Annual impairment testing is performed at every reporting date being December 31. Refer to note 2.3 m) for the Group’s policy on the impairment of non-financial assets. |
Investment in associates | b) The Group recognizes an associate when the Group has a significant influence over that entity. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. The Group’s investment in its associate, Farfetch Finance Limited, is accounted for using the equity method. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. |
Current versus non-current classification | c) The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. |
Fair value measurement | d) This section outlines the Group policies applicable to financial instruments that are recognized and measured at fair value in the financial statements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable • Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Revenue recognition | e) Revenue is recognized in accordance with the five-step model under IFRS 15, which was early adopted by the Group on January 1, 2017 on a fully retrospective basis: 1. identifying the contracts with customers; 2. identifying the separate performance obligations; 3. determining the transaction price; 4. allocating the transaction price to the separate performance obligations; and 5. recognizing revenue when each performance obligation is satisfied. Retailing of goods Revenue, where the Group acts as a principal, is recognized when the performance obligation is satisfied which is when the goods are received by the customer. Included within sales of goods is a provision for expected returns, discounts and rebates. Where these are not known, the Group uses historical data and patterns to calculate an estimate. Rendering of services The Group primarily acts as a commercial intermediary between sellers, being the brands and boutiques, and end consumers and earns a commission for this service. For these arrangements, the sellers determine the transaction price of the goods sold on the website, being the purchase price paid by the consumer, with the Group acting as an agent for the sellers and the related revenue is recognized on a net basis. The Group also charges fees to sellers for activities related to providing this service, such as packaging, credit card processing, settlement of duties, and other transaction processing activities. These activities are not considered separate promises to the customer, and the related fees are therefore recognized concurrently with commissions at the time the performance obligation to facilitate the transaction between the seller and end consumer is satisfied, which is when the goods are dispatched to the end consumer by the seller. A provision is made for commissions that would be refunded if the end consumer returns the goods, and the Group uses historical data and patterns to estimate its return provision. There are no significant payment terms with the Group taking payment in full from the consumer’s chosen payment method at the time the goods are dispatched by the seller. The Group also provides delivery services to end consumers, with the Group setting the transaction price, for goods purchased on its platform. For these services, the Group acts as the principal and recognizes as revenue amounts charged to end consumers net of any promotional incentives and discounts. Revenue for these services is recognized on delivery of goods to the end consumer, which represents the point in time at which the Group’s performance obligation is satisfied. No provision for returns is made as delivery revenue is not subject to refund. Promotional incentives, which include basket promo-code discounts, may periodically be offered to end consumers. These are treated as a deduction to revenue. Cash is collected by the Group from the end consumer using payment service providers. Within two months of the transactions, this is remitted to the relevant seller (net of commission and recoveries). Such amounts are presented within trade and other payables, unless the relevant seller is in a net receivable position and is therefore classified within trade and other receivables. |
Current and deferred tax | f) Current tax is the expected tax payable based on the taxable profit for the period, and the tax laws that have been enacted or substantively enacted by the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Current and deferred tax is charged or credited in the statement of operations, except when it relates to items charged or credited directly to equity, in which case the current or deferred tax is also recognized directly in equity. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates and in accordance with laws that are expected to apply in the period/jurisdiction when/where the liability is settled or the asset is realized. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or different taxable entities and where there is an intention to settle the balances on a net basis. |
Foreign currency translation | g) The Group’s consolidated financial statements are presented in United States Dollars. For each entity the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company is United States Dollars. h) Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively). On consolidation, the assets and liabilities of foreign operations are translated into United States Dollars at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at average exchange rates. The exchange differences arising on translation for consolidation are recognized in OCI. |
Property, plant and equipment | i ) Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. All repair and maintenance costs are recognized in profit or loss as incurred. Items of property, plant and equipment are depreciated with an expense recognized in depreciation and amortization expense on a straight-line basis over their useful life. The useful lives of these items are assessed as follows: Leasehold improvements Over the life of the lease Fixtures and fittings Three to ten years Motor vehicles Four to eight years Computer equipment Three to ten years The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. |
Intangible assets | j) Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of operations in the expense category that is consistent with the function of the intangible assets. Other than goodwill, there are no intangible assets with indefinite useful lives. Goodwill is not amortized but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to the relevant CGUs which are tested for impairment annually. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. Refer to note 2.3 m) for the Group’s policy on the impairment of non-financial assets. Research and development costs Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: • The technical feasibility of completing the intangible asset so that the asset will be available for use or sale; • Its intention to complete and its ability and intention to use or sell the asset; • How the asset will generate future economic benefits; • The availability of resources to complete the asset; and • The ability to measure reliably the expenditure during development. Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected future benefit. Amortization is recorded in administrative expenses. Development intangible assets under the course of construction are tested for impairment annually or more frequently if events or changes in circumstance indicate that they might be impaired. Once placed into service the asset is tested for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. Subsequent costs Subsequent costs are only capitalized when there is an increase in the anticipated future economic benefit attributable to the assets in question. All other subsequent costs are recorded in the statement of operations for the year in which they are incurred. Amortization Amortization is charged to depreciation and amortization expense on a straight-line basis over the estimated useful life of the intangible assets, from the time that the assets are available for use. The useful lives of these items are assessed as follows: Development costs Three years Brand, trademarks & domain names Five to ten years Customer relationships Three to five years |
Inventories | k) Inventories are carried at the lower of cost and the net realizable value based on market performance, including the relative ancillary selling costs. The cost of inventories, calculated according to the weighted average cost method for each category of goods, includes purchase costs and costs incurred to bring the inventories to their present location and condition. In order to represent the value of inventories appropriately in the statement of financial position, and to take into account impairment losses due to obsolete materials and slow inventory movement, obsolescence provisions have been directly deducted from the carrying amount of the inventories. |
Financial instruments—initial recognition and subsequent measurement | l) A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets The Groups financial assets comprise cash and cash equivalents, receivables and derivative financial instruments. Derivative financial instruments are comprised of forward exchange contracts, which are measured at fair value through profit or loss, unless they are formally designated and measured as cash flow hedges. Trade receivables are generally accounted for at amortized cost. The Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost. Financial assets through profit or loss are measured initially at fair value with transaction costs taken directly to the consolidated statement of operations. Subsequently, the financial assets are remeasured, and gains and losses are recognized in the consolidated statement of operations. Financial liabilities The Group’s financial liabilities comprise trade and other payables, interest bearing loans and borrowings, contingent consideration and foreign exchange contracts. Trade and other payables are held at amortized cost. All interest bearing loans and borrowings are initially recognized at fair value net of issue costs associated with the borrowing. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate method. Contingent consideration and foreign exchange contracts are measured initially at fair value through profit or loss with transaction costs taken directly to the consolidated statement of operations. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognized in the consolidated statement of operations. Derivatives and hedging activities Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Where the derivative is not designated as a hedge, subsequent changes in the fair value are recognized in profit or loss. Such derivatives are classified as a current asset or liability. The group designates certain derivatives as cash flow hedges to hedge particular risks associated with the cash flows of recognized assets and liabilities and highly probable forecast transactions. At inception of the hedge relationship, the Group documents the economic relationship between hedging instruments and hedged items including whether changes in the cash flows of the hedging instruments are expected to offset changes in the cash flows of hedged items. The Group documents its risk management objective and strategy for undertaking its hedge transactions. Currently the Group has only designated cash flow hedges. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. When a hedging instrument matures, any gains or losses held in the cash flow hedge reserve are recycled to profit or loss. If the a hedge no longer meets the criteria for hedge accounting, or the forecast transaction is no longer likely to occur, the cumulative gain or loss reported in equity is immediately reclassified to profit or loss. |
Impairment of non-financial assets | m) The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. The Group bases its impairment calculation on detailed budgets which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations cover a period of five years. Impairment losses of continuing operations, are recognized in the statement of operations in expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. Goodwill and intangible assets are tested for impairment annually as at December 31 and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. |
Provisions | n) Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Share-based payments | o) Employees (including senior executives) of the Group receive remuneration in the form of share based payments, whereby employees render services as consideration. The consideration is either equity or cash settled depending on the scheme. Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The statement of operations expense or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. No expense is recognized for awards that do not ultimately vest. Cash-settled transactions For cash-settled share-based payments, a liability is recognized for the goods or services acquired, measured initially at the fair value of the liability. At each balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in profit or loss for the year. Employment related taxes Where the Group has an obligation to settle employment related taxes on share based payments received by employees, these are provided for based on the intrinsic value of the vested share options at the end of the reporting period. |
Cash and cash equivalents | p) For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. As of December 31, 2018 the Group’s cash and cash equivalents balance consists of $49,935,000 of cash held in banks (2017: $38,904,000) and $994,851,000 of cash equivalents (2017: $345,098,000). Cash and cash equivalent consists of $739,330,000 money market funds (2017: $274,971,000), $225,209,000 of short-term deposits (2017: $45,415,000) and $30,312,000 held by payment service providers ($24,712,000). The Group has classified amounts held in money market funds as cash equivalents because those funds are short term in nature, highly liquid, readily convertible to known amounts of cash, and subject to an insignificant risk of changes in value. The Group has determined this classification is appropriate because each of these EU-regulated funds are valued on a Constant Net Asset Value basis and have the highest credit rating available. |
Changes in accounting policies and disclosures | 2.4. Amendments to IFRSs that are mandatorily effective for the current year In the year ended December 31, 2018, the Group has applied the below amendments to IFRSs issued by the IASB that are mandatorily effective for an accounting period that began on or after January 1, 2018. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. IFRS 9 Financial Instruments The Group has adopted IFRS 9 for the first time in the current year. The application of the standard has had no material impact on the Group’s consolidated financial statements. Due to the nature of the Group’s financial assets and liabilities there has been no material changes to the Group’s accounting policies as a result of adopting IFRS 9. IFRS 2 (amendments) Classification and Measurement of Share-based Payment Transactions The Group has adopted the amendments to IFRS 2 for the first time in the current year. The amendments address the measurement of cash-settled share-based payments, the classification of share-based payments settled net of tax withholdings, and the accounting for a modification of a share-based payment from cash-settled to equity-settled. The application of these amendments has had no impact on the Group’s consolidated financial statements. New and revised IFRSs in issue but not yet effective At the date of authorization of these financial statements, the Group has not applied the following new and revised IFRSs that have been issued but are not yet effective: IFRS 16 Leases (effective January 1, 2019) IFRS 16 was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value leases. The Group has set up a project team which has reviewed all of the Group’s leasing arrangements over the last year in light of the new lease accounting rules in IFRS 16. The standard will affect primarily the accounting for the Group’s operating leases. The Group does not act as a lessor and therefore no impact is expected in relation to lessor accounting. As at the reporting date, the Group has non-cancellable operating lease commitments of $103,034,000, see note 26. The Group expects to recognize right-of-use assets of approximately $75,908,000 on 1 January 2019, and lease liabilities of $77,385,000 (after adjustments for prepayments and accrued lease payments recognized as at 31 December 2018). The Group will apply the standard from its mandatory adoption date of 1 January 2019. The Group intends to apply the modified retrospective transition approach and will not restate comparative amounts for the year prior to first-time adoption. All right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). |
Intangible assets—development costs | Intangible assets—development costs a) Cost capitalization Amounts capitalized include the total cost of any external products or services and internal labor costs directly attributable to the development of the asset. Management judgment is involved in determining the appropriate internal costs to capitalize and the amounts involved. b) Useful life The useful life is determined by management at the time the asset is brought into its intended use and is regularly reviewed for appropriateness. The useful life represents management’s view of the expected period over which the Group will receive benefits. |
Recognition of a deferred tax asset | Recognition of a deferred tax asset The Group has accumulated significant unutilized trading tax losses (note 25). A deferred tax asset in respect of these losses can only be recognized when it is probable that future taxable profits will be available to utilize these against. No net deferred tax asset has been recognized in respect of these trading losses because there is uncertainty on the timing of future profitability in the near future. The Group reviews this assessment on an annual basis. |
Impairment of non-financial assets | Impairment of non-financial assets Impairment exists when the carrying value of an asset CGU exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow (“DCF”) model. The cash flows are |
Share based payments | Share based payments Estimating the fair value of share options requires the determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. The Group uses the Black Scholes Valuation Model to estimate the fair value of each grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield. These inputs, and the volatility assumption in particular, are considered to be highly complex and subjective. Because the Group’s shares have been publicly traded for a short period of time, it lacks sufficient company-specific historical and implied volatility information for its shares. Therefore, it estimates expected share price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded share price. . |
Inventory provisions | Inventory provisions Inventory is carried at the lower of cost and net realizable value which requires an estimation of the products’ future selling prices. Judgment is required in determining any write-down for slow-moving or obsolete inventory. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Accounting Policies [Abstract] | |
Useful Lives of Property, Plant and Equipment | The useful lives of these items are assessed as follows: Leasehold improvements Over the life of the lease Fixtures and fittings Three to ten years Motor vehicles Four to eight years Computer equipment Three to ten years Leasehold improvements Fixtures and fittings Motor vehicles Computer equipment Totals Cost At December 31, 2016 14,612 2,211 162 4,319 21,304 Additions 7,717 3,230 - 2,000 12,947 Disposals (249 ) (175 ) (39 ) (364 ) (827 ) Transfers - (177 ) - 177 - Foreign exchange movements 1,373 427 19 431 2,250 At December 31, 2017 23,453 5,516 142 6,563 35,674 Additions 16,086 2,083 - 3,318 21,487 Disposals (1,489 ) (211 ) (28 ) (61 ) (1,789 ) Transfers (1,156 ) 889 - 101 (166 ) Foreign exchange movements (1,830 ) (501 ) (5 ) (525 ) (2,861 ) At December 31, 2018 35,064 7,776 109 9,396 52,345 Accumulated depreciation At December 31, 2016 (2,260 ) (971 ) (115 ) (2,163 ) (5,509 ) Depreciation for year (1,674 ) (972 ) (14 ) (988 ) (3,648 ) Disposals 249 171 28 337 785 Transfers (98 ) 61 - 37 - Foreign exchange movements (225 ) (151 ) (11 ) (219 ) (606 ) At December 31, 2017 (4,008 ) (1,862 ) (112 ) (2,996 ) (8,978 ) Depreciation for year (4,091 ) (1,196 ) (14 ) (2,037 ) (7,338 ) Disposals 562 136 28 35 761 Transfers - 11 - (11 ) - Foreign exchange movements 375 129 4 230 738 At December 31, 2018 (7,162 ) (2,782 ) (94 ) (4,779 ) (14,817 ) Net book value At December 31, 2017 19,445 3,654 30 3,567 26,696 At December 31, 2018 27,902 4,994 15 4,617 37,528 |
Estimated Useful Lives of Intangible Assets | Amortization is charged to depreciation and amortization expense on a straight-line basis over the estimated useful life of the intangible assets, from the time that the assets are available for use. The useful lives of these items are assessed as follows: Development costs Three years Brand, trademarks & domain names Five to ten years Customer relationships Three to five years Goodwill Brand, trademarks & domain names Customer relationships Development costs Total Cost At December 31, 2016 25,503 3,555 1,030 17,785 47,873 Additions 10,073 3,046 1,178 18,997 33,294 Transfers - 139 - (139 ) - Foreign exchange movements 2,873 549 176 2,294 5,892 At December 31, 2017 38,449 7,289 2,384 38,937 87,059 Additions - - - 50,978 50,978 Transfers - - - 166 166 Foreign exchange movements (2,406 ) (443 ) (145 ) (4,602 ) (7,596 ) At December 31, 2018 36,043 6,846 2,239 85,479 130,607 Accumulated amortization At December 31, 2016 - (689 ) (256 ) (3,985 ) (4,930 ) Amortization for year - (745 ) (272 ) (6,315 ) (7,332 ) Transfers - (67 ) - 67 - Foreign exchange movements - (103 ) (37 ) (616 ) (756 ) At December 31, 2017 - (1,604 ) (565 ) (10,849 ) (13,018 ) Amortization for year - (459 ) (1,057 ) (14,683 ) (16,199 ) Transfers - - - - - Foreign exchange movements - 123 96 1,736 1,955 At December 31, 2018 - (1,940 ) (1,526 ) (23,796 ) (27,262 ) Net book value At December 31, 2017 38,449 5,685 1,819 28,088 74,041 At December 31, 2018 36,043 4,906 713 61,683 103,345 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Abstract] | |
Summary of Revenue by Type of Good or Service | Revenue by type of good or service 2016 2017 2018 In-store revenue 12,668 15,434 15,595 Platform services revenue 180,937 296,350 488,995 Platform fulfilment revenue 48,511 74,182 97,794 242,116 385,966 602,384 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fashion Concierge UK Limited | |
Disclosure Of Business Combinations [Line Items] | |
Summary of Purchase Consideration | Details of the purchase consideration, the net assets acquired and goodwill are as follows: 2017 Purchase consideration Ordinary shares issued 2,183 Total purchase consideration 2,183 |
Summary of Net cash Inflow Arising on Acquisition | Net cash inflow arising on acquisition 2017 Cash and cash equivalent balances acquired 195 Cash consideration - Net cash inflow 195 |
Summary of Assets and Liabilities Recognized upon Acquisition | The Group recognized the following assets and liabilities upon the Fashion Concierge UK Limited acquisition: 2017 Intangible assets 1 Tangible assets 4 Trade receivables 301 Cash and cash equivalents 195 Trade payables (1,341 ) Total net identified liabilities acquired (840 ) Goodwill 3,023 Total goodwill acquired 3,023 Net assets acquired 2,183 |
Style.com | |
Disclosure Of Business Combinations [Line Items] | |
Summary of Purchase Consideration | Details of the purchase consideration, the assets acquired and goodwill are as follows: 2017 Purchase consideration Ordinary shares issued 12,411 Total purchase consideration 12,411 |
Summary of Assets and Liabilities Recognized upon Acquisition | The Group recognized the following assets and liabilities upon acquisition: 2017 Inventories 1,856 Total net identified assets acquired 1,856 Goodwill 7,050 Customer relationships 1,178 Trademarks and domain name 3,046 Deferred tax liability (719 ) Total goodwill and identifiable intangible assets acquired 10,555 Net assets acquired 12,411 |
Segmental and Geographical In_2
Segmental and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Operating Segments [Abstract] | |
Summary of Revenue from External Customers and Segment Assets | The Group’s revenue from external customers, based on consumer ship-to location, and information about its segment assets by geographical location are detailed below: 2016 2017 2018 Revenue from external customers Americas 77,608 111,349 175,060 Europe, Middle East and Africa 92,885 156,507 240,662 Asia Pacific 71,623 118,110 186,662 242,116 385,966 602,384 2017 2018 Non-current assets Americas 4,046 6,089 United Kingdom 53,594 118,374 Europe, Middle East and Africa 45,596 21,500 Asia Pacific 7,030 6,020 110,266 151,983 |
Employees and directors (Tables
Employees and directors (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Directors And Employees [Abstract] | |
Schedule of Employees and Directors Compensation | 2016 2017 2018 Wages and salaries 60,455 88,164 140,298 Social security costs 9,626 12,783 24,976 Other pension costs 360 898 1,391 Share based payments (equity settled) 17,256 16,667 34,668 Share based payments (cash settled) 1,178 3,807 10,355 Share based payments (employment related taxes) 1,414 1,012 8,796 90,289 123,331 220,484 |
Selling, general and administ_2
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selling General And Administrative Expense [Abstract] | |
Summary of Selling, General and Administrative Expenses | Included within selling, general and administrative expenses are: 2016 2017 2018 Demand generation expenses 48,381 69,202 97,295 Technology 12,269 31,611 68,224 Depreciation and amortization 6,897 10,980 23,537 Share based payments 19,848 21,486 53,819 |
Finance income and costs (Table
Finance income and costs (Table) | 12 Months Ended |
Dec. 31, 2018 | |
Net Finance Cost [Abstract] | |
Summary of Finance Income and Cost | Error extracting Word content |
Loss Before Tax (Tables)
Loss Before Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loss Before Tax [Abstract] | |
Summary of Loss Before Tax | Loss before tax items include: Note 2016 2017 2018 Employee benefits 7 90,289 123,331 220,484 Operating leases 12,322 18,162 19,244 Research and development costs expensed 4,972 5,102 12,455 Loss on disposal of non-current assets 261 42 1,028 Depreciation—Property, plant & equipment (note 16) 2,451 3,648 7,338 Amortization—Intangible assets (note 15) 4,446 7,332 16,199 Auditors’ remuneration 411 1,095 2,152 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Major Components Of Tax Expense Income [Abstract] | |
Summary of Income Tax Expense | a) Income tax expense 2016 2017 2018 Current tax: Corporate tax 182 805 2,208 Prior year adjustments 17 132 (50 ) Total current tax 199 937 2,158 Total deferred tax - (767 ) - Income tax expense 199 170 2,158 |
Summary of Reconciliation of Income Tax Expense to Tax Payable | The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profit of the consolidated entities as follows: 2016 2017 2018 Loss before tax (81,260 ) (112,105 ) (153,417 ) Tax at the UK tax rate of 19.00% (2017: 19.25%, 2016: 20.00%) (16,252 ) (21,580 ) (29,149 ) Tax effects of: Impairment of intangible assets 46 - - Sundry temporary differences 268 (599 ) - Sundry permanent differences 1,945 1,965 4,355 Entertaining 272 27 37 Loss utilisation - (85 ) (334 ) Taxes paid overseas and rate difference 42 (144 ) (599 ) Foreign exchange rate differences 306 192 (6 ) Unrecognized deferred tax asset arising from timing differences relating to: Share based payment 2,913 3,722 (4,327 ) Non-current assets 208 463 361 Prior year adjustments 17 132 (50 ) Losses carried forward 10,434 16,077 31,870 Income tax expense 199 170 2,158 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Loss Per Share | The calculation of loss per share is as follows: 2016 2017 2018 In $ thousands, except share and per share data Basic and diluted Loss attributable to owners of the parent (81,414 ) (112,275 ) (155,575 ) Shares used in calculation Weighted-average shares outstanding 188,679,490 223,465,734 264,432,214 Basic and diluted loss per share attributable to owners of the parent (0.43 ) (0.50 ) (0.59 ) |
Summary of Potential Dilutive Securities Not Included in Diluted Per Share Calculations | Potential dilutive securities that are not included in the diluted per share calculations because they would be anti-dilutive are as follows: 2016 2017 2018 Employee options 5,462 6,675 14,649 Warrants 3,142 3,303 125 Contingently issuable shares - 994 - |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Classes Of Inventories [Abstract] | |
Summary of Inventories | 2017 2018 Finished goods 50,610 60,954 50,610 60,954 |
Trade and Other Receivables (Ta
Trade and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Receivables [Abstract] | |
Summary of Trade and Other Receivables | 2017 2018 Current Other receivables 5,294 48,285 Sales taxes 5,307 10,352 Prepayments and accrued income 7,394 34,342 Derivative financial assets (note 28) 185 691 18,180 93,670 Non-current Other receivables 9,193 10,458 9,193 10,458 The carrying amount of other receivables approximates their fair value. The maximum credit risk at the balance sheet date is considered to be equivalent to the carrying value of other receivables. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets And Goodwill [Abstract] | |
Estimated Useful Lives of Intangible Assets | Amortization is charged to depreciation and amortization expense on a straight-line basis over the estimated useful life of the intangible assets, from the time that the assets are available for use. The useful lives of these items are assessed as follows: Development costs Three years Brand, trademarks & domain names Five to ten years Customer relationships Three to five years Goodwill Brand, trademarks & domain names Customer relationships Development costs Total Cost At December 31, 2016 25,503 3,555 1,030 17,785 47,873 Additions 10,073 3,046 1,178 18,997 33,294 Transfers - 139 - (139 ) - Foreign exchange movements 2,873 549 176 2,294 5,892 At December 31, 2017 38,449 7,289 2,384 38,937 87,059 Additions - - - 50,978 50,978 Transfers - - - 166 166 Foreign exchange movements (2,406 ) (443 ) (145 ) (4,602 ) (7,596 ) At December 31, 2018 36,043 6,846 2,239 85,479 130,607 Accumulated amortization At December 31, 2016 - (689 ) (256 ) (3,985 ) (4,930 ) Amortization for year - (745 ) (272 ) (6,315 ) (7,332 ) Transfers - (67 ) - 67 - Foreign exchange movements - (103 ) (37 ) (616 ) (756 ) At December 31, 2017 - (1,604 ) (565 ) (10,849 ) (13,018 ) Amortization for year - (459 ) (1,057 ) (14,683 ) (16,199 ) Transfers - - - - - Foreign exchange movements - 123 96 1,736 1,955 At December 31, 2018 - (1,940 ) (1,526 ) (23,796 ) (27,262 ) Net book value At December 31, 2017 38,449 5,685 1,819 28,088 74,041 At December 31, 2018 36,043 4,906 713 61,683 103,345 |
Summary of Goodwill by Cash Generating Unit | Goodwill has been allocated to the following CGUs. For details regarding additions to goodwill refer to note 5. 2017 2018 CGU* Marketplace 17,916 16,368 Browns – Platform 20,533 19,675 38,449 36,043 * Only two of the Group’s CGUs have goodwill allocated. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Property Plant And Equipment [Abstract] | |
Useful Lives of Property, Plant and Equipment | The useful lives of these items are assessed as follows: Leasehold improvements Over the life of the lease Fixtures and fittings Three to ten years Motor vehicles Four to eight years Computer equipment Three to ten years Leasehold improvements Fixtures and fittings Motor vehicles Computer equipment Totals Cost At December 31, 2016 14,612 2,211 162 4,319 21,304 Additions 7,717 3,230 - 2,000 12,947 Disposals (249 ) (175 ) (39 ) (364 ) (827 ) Transfers - (177 ) - 177 - Foreign exchange movements 1,373 427 19 431 2,250 At December 31, 2017 23,453 5,516 142 6,563 35,674 Additions 16,086 2,083 - 3,318 21,487 Disposals (1,489 ) (211 ) (28 ) (61 ) (1,789 ) Transfers (1,156 ) 889 - 101 (166 ) Foreign exchange movements (1,830 ) (501 ) (5 ) (525 ) (2,861 ) At December 31, 2018 35,064 7,776 109 9,396 52,345 Accumulated depreciation At December 31, 2016 (2,260 ) (971 ) (115 ) (2,163 ) (5,509 ) Depreciation for year (1,674 ) (972 ) (14 ) (988 ) (3,648 ) Disposals 249 171 28 337 785 Transfers (98 ) 61 - 37 - Foreign exchange movements (225 ) (151 ) (11 ) (219 ) (606 ) At December 31, 2017 (4,008 ) (1,862 ) (112 ) (2,996 ) (8,978 ) Depreciation for year (4,091 ) (1,196 ) (14 ) (2,037 ) (7,338 ) Disposals 562 136 28 35 761 Transfers - 11 - (11 ) - Foreign exchange movements 375 129 4 230 738 At December 31, 2018 (7,162 ) (2,782 ) (94 ) (4,779 ) (14,817 ) Net book value At December 31, 2017 19,445 3,654 30 3,567 26,696 At December 31, 2018 27,902 4,994 15 4,617 37,528 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Associates [Abstract] | |
Summary of Associate Accounted for Using the Equity Method | The table below illustrates the summarized financial information of the Group’s investment in Farfetch Finance Limited (“the associate”). The Group holds 25% of issued capital of the associate. The principal activity of the associate is the provision of trade finance and it is incorporated in England & Wales. The associate is accounted for using the equity method. Share of associates net assets At December 31, 2016 23 Share of profit after tax 35 At December 31, 2017 58 Share of profit after tax 28 At December 31, 2018 86 |
Share capital and share premi_2
Share capital and share premium (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Classes Of Share Capital [Abstract] | |
Summary of Ordinary Shares Issued and Fully Paid | Ordinary shares issued and fully paid as at December 31, 2018 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 256,998,920 Class A ordinary shares 0.04 10,280 726,791 783,529 1,520,600 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 299,857,000 11,994 772,300 783,529 1,567,823 Ordinary shares issued and fully paid as at December 31, 2017 Number of shares Class Par value $ Share capital Share premium Merger reserve Total 189,588,515 Class A ordinary shares 0.04 7,584 632,165 - 639,749 42,858,080 Class B ordinary shares 0.04 1,714 45,509 - 47,223 232,446,595 9,298 677,674 - 686,972 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Reserves [Abstract] | |
Summary of Other Reserves | Other reserves Foreign exchange reserve Warrant reserve Changes in ownership Share based payments Cashflow hedge reserve Merger relief reserve Accumulated losses At December 31, 2015 (6,771 ) 338 (8,666 ) 12,437 - - (128,475 ) Loss for the year - - - - - - (81,414 ) Movement in foreign exchange reserve (27,322 ) - - - - - - Warrants issued - 409 - - - - - Transactions with non-controlling interests 1,222 - - - - - - Share based payments - equity settled - - - 15,339 - - (7,012 ) At December 31, 2016 (32,871 ) 747 (8,666 ) 27,776 - - (216,901 ) Loss for the year - - - - - - (112,275 ) Movement in foreign exchange reserve 33,504 - - - - - - Transactions with non-controlling interests - - - - - 2,161 - Share based payments - equity settled - - - 16,457 - - (1 ) At December 31, 2017 633 747 (8,666 ) 44,233 - 2,161 (329,177 ) Loss for the year - - - - - - (155,575 ) Movement in foreign exchange reserve (24,142 ) - - - - - - Movement in cash flow hedge reserve - - - - 436 - - Share based payments - equity settled - - - 28,563 - - 1,395 At December 31, 2018 (23,509 ) 747 (8,666 ) 72,796 436 2,161 (483,357 ) |
Group Information (Tables)
Group Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Significant Investments In Subsidiaries [Abstract] | |
Summary of Subsidiaries | At December 31, 2018, the Company’s subsidiaries were as follows: Direct Holdings Company name Country of incorporation % equity interest Principal activities 2017 2018 Farfetch.com Limited Isle of Man 100 100 Holding company Indirect Holdings Company name Country of incorporation % equity interest Principal activities 2017 2018 Farfetch UK Limited England & Wales 100 100 Marketing, providing editorial and merchant services FFBR importacao e exportacao LTDA* Brazil 100 100 Import & Export Agent for Farfetch Farfetch.com Brasil Servicos LTDA** Brazil 100 100 E-commerce, marketing and editorial services Farfetch.com US LLC USA 100 100 E-commerce and marketing Farfetch-Portugal Unipessoal LDA Portugal 100 100 Back office support Farfetch HK Holdings Limited Hong Kong 100 100 Holding Company Browns (South Molton Street) Limited England & Wales 100 100 Retail Farfetch Japan Co Ltd Japan 100 100 E-commerce and marketing LASO.CO.LTD Japan 100 100 E-commerce and marketing Farfetch China (HK Holdings) Limited Hong Kong 100 100 Holding company Farfetch (Shanghai) E-Commerce Co. Ltd China 100 100 E-commerce services Farfetch HK Production Limited Hong Kong 100 100 E-commerce and marketing Farfetch Store of the Future Limited England & Wales 100 100 Dormant Fashion Concierge UK Limited England & Wales 100 100 E-commerce services F&C Fashion Concierge, LDA Portugal 100 100 Dormant Farfetch Black & White Limited England & Wales 100 100 E-commerce services Farfetch International Limited Isle of Man 100 100 Holding company Farfetch México, S.A de C.V*** Mexico 100 100 Back office support Fashion Concierge Powered By Farfetch, LLC USA 100 100 E-commerce services Farfetch India Private Limited**** India 100 100 Back office support Farfetch Middle East FZE UAE 100 100 Back office support Farfetch Italia S.R.L. Italy 100 100 Back office support Farfetch Australia Pty Ltd Australia 100 100 Back office support Farfetch US Holdings, INC USA 100 100 Holding Company Fashion Concierge HK Limited Hong Kong 100 100 E-commerce services Farfetch Finance Limited England & Wales 25 25 Finance Yankee Merger Sub, LLC USA 100 100 Merger Company for acquisition * Owned by Farfetch.com Limited (99.9%) and Farfetch UK Limited (0.1%) ** Owned by Farfetch.com Limited (99.9995%) and Farfetch UK Limited (0.0005%) *** Owned by Farfetch.com Limited (1%) and Farfetch UK Limited (99%) **** Owned by Farfetch.com Limited (0.1%) and Farfetch UK Limited (99.9%) |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non Controlling Interests [Abstract] | |
Summary of Effect of Changes in Ownership Interest | The effect of changes in the ownership interest of the Group on the equity attributable to owners of the company during the year and prior year is summarized as follows: 2017 2018 Balance brought forward (1 ) - Transactions with non-controlling interests 1 - Loss attributable to non-controlling interests - - - - |
Trade and Other Payables (Table
Trade and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Trade And Other Current Payables [Abstract] | |
Summary of Trade and Other Payable | 2017 2018 Trade payables 73,992 96,176 Other payables 713 350 Social security and other taxes 6,646 6,194 Income tax payable 666 1,514 Accruals and deferred revenue 54,727 89,924 136,744 194,158 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Detailed Information About Warrants [Abstract] | |
Schedule of Warrants Issued | During 2016, the Group issued warrants, which are linked to the $20m of Promissory notes issued in 2016, which were subsequently repaid in 2017. Date of issue Number of shares Warrant price Expiration date October 3, 2016 122,935 $ 6.15 12 years from issue date August 1, 2016 33,530 $ 6.15 12 years from issue date December 23, 2016 33,530 $ 6.15 12 years from issue date |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions [Abstract] | |
Summary of Provisions | Dilapidations provision Share based payments employment taxes provision Total 2017 2018 2017 2018 2017 2018 At January 1 1,834 2,165 2,101 2,977 3,935 5,142 Additional provision in the year 406 1,263 1,012 6,614 1,418 7,877 Transfer from trade and other payables - - - 2,182 - 2,182 Release of provision in the year - (815 ) - - - (815 ) Foreign exchange (75 ) (98 ) (136 ) (826 ) (211 ) (924 ) At December 31 2,165 2,515 2,977 10,947 5,142 13,462 |
Deferred Tax (Tables)
Deferred Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Tax Assets And Liabilities [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax liabilities Note 2017 2018 At January 1 493 1,079 Deferred tax recognized on acquisition 5 719 - Foreign exchange 91 (52 ) Released to profit or loss (224 ) (282 ) At December 31 1,079 745 Deferred tax assets 2017 2018 At January 1 493 1,079 Deferred tax recognized 719 - Foreign exchange 91 (52 ) Released to profit or loss (224 ) (282 ) At December 31 1,079 745 Deferred tax, net At December 31 - - |
Summary of Trading Losses | Local currency 2017 2017 2018 2018 Local ‘m $’m Local ‘m $’m UK trading losses GBP 136 184 259 331 US Net Operating Losses (“NOL”) USD 29 29 34 34 Brazil trading losses BRL 42 13 49 13 Japan trading losses JPY 463 4 274 2 Hong Kong trading losses HKD 16 2 14 2 686 232 630 382 |
Commitments and guarantees (Tab
Commitments and guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Commitments And Guarantees [Abstract] | |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases | Future minimum lease payments under non-cancellable operating leases as at the year end were: 2017 2018 No later than one year 11,929 15,820 Later than one year not later than three years 20,297 26,599 Later than three year not later than five years 11,251 22,584 Later than five years 22,656 38,031 66,133 103,034 |
Financial Instruments and Fin_2
Financial Instruments and Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Financial Instruments [Abstract] | |
Summary of Categories of Financial Instruments | Details of the significant accounting policies and methods adopted (including the criteria for recognition, the basis of measurement and the bases for recognition of income and expenses) for each class of financial asset, financial liability and equity instrument are disclosed in note 2. Categories of financial instruments Financial assets Amortized cost Amortized cost 2017 2018 Current Other receivables 5,294 48,285 Cash and cash equivalents 384,002 1,044,786 Non-current Other receivables 9,193 10,458 Total 398,489 1,103,529 2017 2018 Foreign currency forwards - held at FVTPL 185 255 Foreign currency forwards - held as cash flow hedges - 436 Derivative financial assets 185 691 Financial liabilities Amortized cost Amortized cost 2017 2018 Trade payables 73,992 96,176 Other payables 713 350 Total 74,705 96,526 Fair value through profit or loss Fair value through profit or loss 2017 2018 Contingent consideration 19,146 - 19,146 - |
Financial Assets/(Liabilities) at Fair Value through Profit or Loss | Financial assets/(liabilities) at fair value through profit or loss 2017 2018 2017 2018 Derivative financial asset/(liability) 226 691 (41 ) - |
Summary of Analyses Group's Financial Liabilities into Groupings of Remaining Period from Reporting Date to Contractual Maturity Date | The table below analyses the Group’s financial liabilities into relevant groupings based on the remaining period from the reporting date to the contractual maturity date. Amounts due within 12 months equal their carrying balances, as the impact of discounting is not significant. All derivative financial instruments have a maturity of less than 12 months. Less than one year Less than one year 2017 2018 Trade and other payables 74,705 96,526 Contingent consideration 19,146 - Total 93,851 96,526 More than one year More than one year 2017 2018 Contingent consideration - - Borrowings - - - - |
Schedule of Capital Structure | The capital structure is as follows: 2017 2018 Total borrowings - - Less: cash and cash equivalents (384,002 ) (1,044,786 ) Net cash (384,002 ) (1,044,786 ) Total equity 396,903 1,128,431 Total capital 12,901 83,645 |
Schedule of Foreign Exchange Rate Sensitivity Analysis | The table below shows the Group’s sensitivity to United States dollars strengthening/weakening by 10%: Increase/ (decrease) in profit or loss Increase/ (decrease) in profit or loss 2017 2018 10% appreciation of United States dollars 7,576 29,169 10% depreciation of United States dollars (9,260 ) (35,651 ) |
Share Options-Equity and Cash_2
Share Options-Equity and Cash Settled (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |
Summary of Equity Settled Share Based Payment Plans | During the year ended December 31, 2018, the Group had four equity settled share based payment plans which are described below. Type of arrangement EMI approved share option plan Unapproved share option plan LTIP 2015 plan LTIP 2018 plan Date of first grant November 1, 2011 July 1, 2011 September 9, 2015 September 20, 2018 Number granted 5,505,600 11,332,835 38,174,980 3,465,915 Contractual life 10 years 10 years 10 years 10 years Vesting conditions Varying tranches of options vesting upon defined years of service Varying tranches of options vesting upon defined years of service Varying tranches of options vesting upon defined years of service with certain awards having non-market conditions Varying tranches of options and Restricted Stock Units (RSU) vesting upon defined years of service |
Summary of Movements on Share Options and Weighted Average Exercise Prices | Movements on the share options were as follows: 2016 2017 2018 Number of options Number of options Number of options Options at beginning of year 16,611,310 17,522,365 32,307,010 Options granted 6,128,555 15,666,155 18,209,410 Options exercised (2,510,570 ) (198,525 ) (3,032,571 ) Options forfeited (2,706,930 ) (682,985 ) (3,265,035 ) 17,522,365 32,307,010 44,218,814 Options exercisable at end of year 10,214,900 12,551,425 16,830,409 Weighted average exercise prices were as follows: 2016 2017 2018 Options at beginning of year $ 0.76 $ 2.01 $ 4.43 Options granted $ 3.34 $ 7.10 $ 9.84 Options forfeited $ 0.57 $ 6.71 $ 7.31 Options exercised $ 0.08 $ 0.08 $ 2.38 Options at end of year $ 2.01 $ 4.43 $ 6.15 Options exercisable at year end $ 1.08 $ 1.59 $ 2.33 Weighted average remaining contracted life of options outstanding at year end 7.67 years 8.00 years 9.54 years |
Summary of Exercise Price of Options Outstanding | 2016 2017 2018 Number of options Number of options Number of options Exercise price of options outstanding at year end $0.00 to $0.08 6,090,695 5,868,735 4,416,525 $0.09 to $0.56 5,581,825 5,581,825 2,126,540 $0.57 to $3.52 5,002,505 6,302,505 4,595,104 $3.53 to $5.73 847,340 8,589,445 6,257,690 $5.74 to $7.39 - 5,964,500 7,890,495 $7.40 to $20.00 - - 18,932,460 17,522,365 32,307,010 44,218,814 Weighted average fair value of options granted in year $ 2.43 $ 2.41 $ 4.17 |
Summary of Inputs in Black Scholes Model for Share Options Granted | Inputs in the Black Scholes model for share options granted during the year and prior year were as follows: 2016 2017 2018 Black Scholes model Weighted average share price $ 6.15 $ 9.87 $ 11.83 Weighted average exercise price $ 3.34 $ 7.10 $ 9.84 Average expected volatility 20% 20% 23% Expected life 4 years 4 years 4 years Risk free rate 1.40% 1.85% 2.75% Expected dividends $nil $nil $nil |
Corporate Information - Additio
Corporate Information - Additional Information (Details) | Sep. 18, 2018$ / sharesshares | Sep. 18, 2018£ / shares | Dec. 31, 2017$ / shares |
Corporate Information [Line Items] | |||
Value of ordinary share | $ 0.04 | ||
Share conversion ratio | 5 | ||
Class A Ordinary Shares and Class B Ordinary Shares | |||
Corporate Information [Line Items] | |||
Value of ordinary share | $ 0.04 | ||
Warrants | |||
Corporate Information [Line Items] | |||
Warrants outstanding | shares | 189,995 | ||
Value of ordinary share | (per share) | $ 0.20 | £ 0.10 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Description Of Expected Impact Of Initial Application Of New Standards Or Interpretations [Abstract] | |||
Promotional incentives remittance period after transactions | 2 months | ||
Intangible assets with indefinite useful lives | $ 0 | ||
Budgets and forecast calculations period | 5 years | ||
Cash | $ 49,935,000 | $ 38,904,000 | |
Cash equivalents | 994,851,000 | 345,098,000 | |
Money market funds | 739,330,000 | 274,971,000 | |
Short-term deposits | 225,209,000 | 45,415,000 | |
Cash and cash equivalent held by payment service providers | 30,312,000 | 24,712,000 | |
Non-cancellable operating lease commitment | 103,034,000 | $ 66,133,000 | |
Right-of-use assets | $ 75,908,000 | ||
Lease liabilities | $ 77,385,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Leasehold Improvements | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | Over the life of the lease |
Fixtures and Fittings | Bottom of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 3 years |
Fixtures and Fittings | Top of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 10 years |
Motor Vehicles | Bottom of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 4 years |
Motor Vehicles | Top of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 8 years |
Computer Equipment | Bottom of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 3 years |
Computer Equipment | Top of Range | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Useful lives of property, plant and equipment | 10 years |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Development Costs | |
Disclosure Of Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Brand, Trademarks & Domain Names | Bottom of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Brand, Trademarks & Domain Names | Top of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 10 years |
Customer Relationships | Bottom of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Customer Relationships | Top of Range | |
Disclosure Of Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Critical Accounting Judgments_2
Critical Accounting Judgments and Key Sources of Estimation Uncertainty - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure Of Accounting Judgments And Estimates [Abstract] | |
Net deferred tax asset recgnaized | $ 0 |
Projected cash flows forecast period | 5 years |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Type of Good or Service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | $ 602,384 | $ 385,966 | $ 242,116 |
In-Store Revenue | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 15,595 | 15,434 | 12,668 |
Platform Services Revenue | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | 488,995 | 296,350 | 180,937 |
Platform Fulfilment Revenue | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue | $ 97,794 | $ 74,182 | $ 48,511 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Platform Services Revenue | Commercial intermediary | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue from performance obligations not satisfied | $ 1,651,000 | $ 1,067,000 | $ 330,000 |
Revenue expected to be recognized term | 90 days | ||
Previously deferred amounts recognized as revenue in the year | $ 1,067,000 | 330,000 | 165,000 |
Platform Services Revenue | Principal | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue expected to be recognized term | 30 days | ||
Previously deferred amounts recognized as revenue in the year | $ 1,135,000 | 741,000 | 0 |
Deferred revenue balance at year end | 2,015,000 | 1,135,000 | 741,000 |
Platform Fulfilment Revenue | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Receivables from contracts with customers | 0 | 0 | 0 |
Platform Fulfilment Revenue | Commercial intermediary | |||
Disclosure Of Disaggregation Of Revenue From Contracts With Customers [Line Items] | |||
Revenue from performance obligations not satisfied | $ 479,000 | 436,000 | 407,000 |
Revenue expected to be recognized term | 90 days | ||
Previously deferred amounts recognized as revenue in the year | $ 436,000 | $ 407,000 | $ 153,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | Oct. 31, 2017 | Jun. 12, 2017 | Dec. 31, 2017 |
Disclosure Of Business Combinations [Line Items] | |||
Shares issued as part of consideration paid | 36,346,645 | ||
Fashion Concierge UK Limited | |||
Disclosure Of Business Combinations [Line Items] | |||
Percentage of voting equity interests acquired | 100.00% | ||
Shares issued as part of consideration paid | 45,000 | ||
Percentage of consideration paid | 100.00% | ||
Fair value of shares issued as part of consideration paid | $ 2,183,000 | ||
Acquisition-related costs | $ 123,000 | ||
Style.com | |||
Disclosure Of Business Combinations [Line Items] | |||
Percentage of voting equity interests acquired | 100.00% | ||
Shares issued as part of consideration paid | 258,265 | ||
Percentage of consideration paid | 100.00% | ||
Fair value of shares issued as part of consideration paid | $ 12,411,000 | ||
Acquisition-related costs | $ 557,000 | ||
Style.com | Trademarks and Domain Name | |||
Disclosure Of Business Combinations [Line Items] | |||
Amortization period of intangible assets | 10 years | ||
Style.com | Customer List | |||
Disclosure Of Business Combinations [Line Items] | |||
Amortization period of intangible assets | 3 years |
Business Combinations - Summary
Business Combinations - Summary of Purchase Consideration, Net Assets Acquired and Goodwill (Details) - USD ($) | Oct. 31, 2017 | Jun. 12, 2017 |
Fashion Concierge UK Limited | ||
Purchase consideration | ||
Ordinary shares issued | $ 2,183,000 | |
Total purchase consideration | $ 2,183,000 | |
Style.com | ||
Purchase consideration | ||
Ordinary shares issued | $ 12,411,000 | |
Total purchase consideration | $ 12,411,000 |
Business Combinations - Summa_2
Business Combinations - Summary of Net cash Inflow Arising on Acquisition (Details) - USD ($) $ in Thousands | Oct. 31, 2017 | Dec. 31, 2017 |
Disclosure Of Business Combinations [Line Items] | ||
Net cash inflow | $ (195) | |
Fashion Concierge UK Limited | ||
Disclosure Of Business Combinations [Line Items] | ||
Cash and cash equivalent balances acquired | $ 195 | |
Net cash inflow | $ 195 |
Business Combinations - Summa_3
Business Combinations - Summary of Assets and Liabilities Recognized upon Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Jun. 12, 2017 |
Disclosure Of Business Combinations [Line Items] | ||||
Goodwill | $ 36,043 | $ 38,449 | ||
Fashion Concierge UK Limited | ||||
Disclosure Of Business Combinations [Line Items] | ||||
Intangible assets | $ 1 | |||
Tangible assets | 4 | |||
Trade receivables | 301 | |||
Cash and cash equivalents | 195 | |||
Trade payables | (1,341) | |||
Total net identified liabilities acquired | (840) | |||
Goodwill | 3,023 | |||
Total goodwill acquired | 3,023 | |||
Net assets acquired | $ 2,183 | |||
Style.com | ||||
Disclosure Of Business Combinations [Line Items] | ||||
Total net identified liabilities acquired | $ 1,856 | |||
Goodwill | 7,050 | |||
Net assets acquired | 12,411 | |||
Inventories | 1,856 | |||
Customer relationships | 1,178 | |||
Trademarks and domain name | 3,046 | |||
Deferred tax liability | (719) | |||
Total goodwill and identifiable intangible assets acquired | $ 10,555 |
Segmental and Geographical In_3
Segmental and Geographical Information - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure Of Operating Segments [Line Items] | |||
Number of operating segments | Segment | 4 | ||
Percentage of revenue | 90.00% | ||
Number of reportable segment | Segment | 1 | ||
Revenue | $ | $ 602,384,000 | $ 385,966,000 | $ 242,116,000 |
United Kingdom | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue | $ | $ 492,495,000 | $ 335,345,000 | $ 208,857,000 |
Segmental and Geographical In_4
Segmental and Geographical Information - Summary of Revenue from External Customers and Segment Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Operating Segments [Line Items] | |||
Revenue from external customers | $ 602,384,000 | $ 385,966,000 | $ 242,116,000 |
Non-current assets | 151,983,000 | 110,266,000 | |
Americas | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue from external customers | 175,060,000 | 111,349,000 | 77,608,000 |
Non-current assets | 6,089,000 | 4,046,000 | |
Europe, Middle East and Africa | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue from external customers | 240,662,000 | 156,507,000 | 92,885,000 |
Non-current assets | 21,500,000 | 45,596,000 | |
Asia Pacific | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue from external customers | 186,662,000 | 118,110,000 | 71,623,000 |
Non-current assets | 6,020,000 | 7,030,000 | |
United Kingdom | |||
Disclosure Of Operating Segments [Line Items] | |||
Revenue from external customers | 492,495,000 | 335,345,000 | $ 208,857,000 |
Non-current assets | $ 118,374,000 | $ 53,594,000 |
Employees and Directors - Sched
Employees and Directors - Schedule of Employees and Directors Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Directors And Employees [Line Items] | |||
Wages and salaries | $ 140,298 | $ 88,164 | $ 60,455 |
Social security costs | 24,976 | 12,783 | 9,626 |
Other pension costs | 1,391 | 898 | 360 |
Share based payments | 53,819 | 21,486 | 19,848 |
Employees and directors benifits expense | 220,484 | 123,331 | 90,289 |
Equity Settled | |||
Disclosure Of Directors And Employees [Line Items] | |||
Share based payments | 34,668 | 16,667 | 17,256 |
Cash Settled | |||
Disclosure Of Directors And Employees [Line Items] | |||
Share based payments (cash settled) | 10,355 | 3,807 | 1,178 |
Employment Related Taxes | |||
Disclosure Of Directors And Employees [Line Items] | |||
Share based payments | $ 8,796 | $ 1,012 | $ 1,414 |
Selling, General and Administ_3
Selling, General and Administrative Expenses - Summary of Selling General and Administrative Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selling General And Administrative Expense [Abstract] | |||
Demand generation expenses | $ 97,295 | $ 69,202 | $ 48,381 |
Technology | 68,224 | 31,611 | 12,269 |
Depreciation and amortization | 23,537 | 10,980 | 6,897 |
Share based payments | $ 53,819 | $ 21,486 | $ 19,848 |
Finance income and costs - Summ
Finance income and costs - Summary of Finance Income and Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Finance Cost [Abstract] | |||
Unrealised exchange gains | $ 9,143 | $ 7,643 | |
Deposit account interest | 6,859 | $ 2,510 | 1,359 |
Other interest income | 4,401 | 323 | 278 |
Finance income | 20,403 | 2,833 | 9,280 |
Unrealised exchange losses | (18,902) | ||
Interest on borrowings | (1,572) | (1,473) | |
Other interest expense | (537) | (1) | (29) |
Warrants issued | (376) | ||
Finance costs | (537) | (20,475) | (1,878) |
Net finance income/ (costs) | $ 19,866 | $ (17,642) | $ 7,402 |
Loss Before Tax - Summary of Lo
Loss Before Tax - Summary of Loss Before Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Before Tax [Abstract] | |||
Employee benefits | $ 220,484 | $ 123,331 | $ 90,289 |
Operating leases | 19,244 | 18,162 | 12,322 |
Research and development costs expensed | 12,455 | 5,102 | 4,972 |
Loss on disposal of non-current assets | 1,028 | 42 | 261 |
Depreciation—Property, plant & equipment | 7,338 | 3,648 | 2,451 |
Amortization—Intangible assets | 16,199 | 7,332 | 4,446 |
Auditors’ remuneration | $ 2,152 | $ 1,095 | $ 411 |
Taxation - Income Tax Expense (
Taxation - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax: | |||
Corporate tax | $ 2,208 | $ 805 | $ 182 |
Prior year adjustments | (50) | 132 | 17 |
Total current tax | 2,158 | 937 | 199 |
Total deferred tax | (767) | ||
Income tax expense | $ 2,158 | $ 170 | $ 199 |
Taxation - Reconciliation of In
Taxation - Reconciliation of Income Tax Expense to Tax Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major Components Of Tax Expense Income [Abstract] | |||
Loss before tax | $ (153,417) | $ (112,105) | $ (81,260) |
Tax at the UK tax rate of 19.00% (2017: 19.25%, 2016: 20.00%) | (29,149) | (21,580) | (16,252) |
Tax effects of: | |||
Impairment of intangible assets | 46 | ||
Sundry temporary differences | (599) | 268 | |
Sundry permanent differences | 4,355 | 1,965 | 1,945 |
Entertaining | 37 | 27 | 272 |
Loss utilisation | (334) | (85) | |
Taxes paid overseas and rate difference | (599) | (144) | 42 |
Foreign exchange rate differences | (6) | 192 | 306 |
Unrecognized deferred tax asset arising from timing differences relating to: | |||
Share based payment | (4,327) | 3,722 | 2,913 |
Non-current assets | 361 | 463 | 208 |
Prior year adjustments | (50) | 132 | 17 |
Losses carried forward | 31,870 | 16,077 | 10,434 |
Income tax expense | $ 2,158 | $ 170 | $ 199 |
Taxation - Reconciliation of _2
Taxation - Reconciliation of Income Tax Expense to Tax Payable (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Major Components Of Tax Expense Income [Abstract] | |||
UK tax rate | 19.00% | 19.25% | 20.00% |
Taxation - Additional Informati
Taxation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 19.00% | 19.25% | 20.00% |
Blended tax rate | 19.00% | ||
Income tax relating to components of other comprehensive income | $ 0 | ||
Tax Year 2017 | Bottom of Range | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 20.00% | ||
Tax Year 2017 | Top of Range | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 19.00% | ||
Tax Year 2018 | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 19.00% | ||
Tax Year 2019 | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 19.00% | ||
Tax Year 2020 | |||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||
UK Corporation tax rate | 17.00% |
Loss Per Share - Summary of Los
Loss Per Share - Summary of Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and diluted | |||
Loss attributable to owners of the parent | $ (155,575) | $ (112,275) | $ (81,414) |
Shares used in calculation | |||
Weighted-average shares outstanding | 264,432,214 | 223,465,734 | 188,679,490 |
Basic and diluted loss per share attributable to owners of the parent | $ (0.59) | $ (0.50) | $ (0.43) |
Loss Per Share - Summary of Pot
Loss Per Share - Summary of Potential Dilutive Securities Not Included in Diluted Per Share Calculations (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Line Items] | |||
Potential dilutive securities that are not included in the diluted per share calculations | 14,649 | 6,675 | 5,462 |
Warrants | |||
Earnings Per Share [Line Items] | |||
Potential dilutive securities that are not included in the diluted per share calculations | 125 | 3,303 | 3,142 |
Contingently Issuable Shares | |||
Earnings Per Share [Line Items] | |||
Potential dilutive securities that are not included in the diluted per share calculations | 994 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Classes Of Inventories [Abstract] | ||
Finished goods | $ 60,954 | $ 50,610 |
Inventories | $ 60,954 | $ 50,610 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Classes Of Inventories [Abstract] | ||
Cost of inventories recognised as expense | $ 87,416,000 | $ 55,192,000 |
Provision for inventory write down | $ 4,182,000 | $ 1,162,000 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current | ||
Other receivables | $ 48,285 | $ 5,294 |
Sales taxes | 10,352 | 5,307 |
Prepayments and accrued income | 34,342 | 7,394 |
Derivative financial assets | 691 | 185 |
Trade and other current receivables | 93,670 | 18,180 |
Non-current | ||
Other receivables | 10,458 | 9,193 |
Trade and other non-current receivables | $ 10,458 | $ 9,193 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | $ 74,041 | |
Ending balance | 103,345 | $ 74,041 |
Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 87,059 | 47,873 |
Additions | 50,978 | 33,294 |
Transfers | 166 | |
Foreign exchange movements | (7,596) | 5,892 |
Ending balance | 130,607 | 87,059 |
Accumulated Amortisation | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | (13,018) | (4,930) |
Amortization for year | (16,199) | (7,332) |
Foreign exchange movements | 1,955 | (756) |
Ending balance | (27,262) | (13,018) |
Goodwill | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 38,449 | |
Ending balance | 36,043 | 38,449 |
Goodwill | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 38,449 | 25,503 |
Additions | 10,073 | |
Foreign exchange movements | (2,406) | 2,873 |
Ending balance | 36,043 | 38,449 |
Brand, Trademarks & Domain Names | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 5,685 | |
Ending balance | 4,906 | 5,685 |
Brand, Trademarks & Domain Names | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 7,289 | 3,555 |
Additions | 3,046 | |
Transfers | 139 | |
Foreign exchange movements | (443) | 549 |
Ending balance | 6,846 | 7,289 |
Brand, Trademarks & Domain Names | Accumulated Amortisation | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | (1,604) | (689) |
Amortization for year | (459) | (745) |
Transfers | (67) | |
Foreign exchange movements | 123 | (103) |
Ending balance | (1,940) | (1,604) |
Customer Relationships | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 1,819 | |
Ending balance | 713 | 1,819 |
Customer Relationships | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 2,384 | 1,030 |
Additions | 1,178 | |
Foreign exchange movements | (145) | 176 |
Ending balance | 2,239 | 2,384 |
Customer Relationships | Accumulated Amortisation | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | (565) | (256) |
Amortization for year | (1,057) | (272) |
Foreign exchange movements | 96 | (37) |
Ending balance | (1,526) | (565) |
Development Costs | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 28,088 | |
Ending balance | 61,683 | 28,088 |
Development Costs | Cost | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | 38,937 | 17,785 |
Additions | 50,978 | 18,997 |
Transfers | 166 | (139) |
Foreign exchange movements | (4,602) | 2,294 |
Ending balance | 85,479 | 38,937 |
Development Costs | Accumulated Amortisation | ||
Disclosure Of Intangible Assets [Line Items] | ||
Beginning balance | (10,849) | (3,985) |
Amortization for year | (14,683) | (6,315) |
Transfers | 67 | |
Foreign exchange movements | 1,736 | (616) |
Ending balance | $ (23,796) | $ (10,849) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Intangible Assets [Line Items] | ||
Growth rate used to extrapolate cash flow projections | 2.00% | 2.00% |
Projected cash flows forecast period | 5 years | |
Bottom of Range | ||
Disclosure Of Intangible Assets [Line Items] | ||
Pre-tax discount rates | 9.70% | 10.90% |
Top of Range | ||
Disclosure Of Intangible Assets [Line Items] | ||
Pre-tax discount rates | 11.80% | 12.30% |
Development Costs | ||
Disclosure Of Intangible Assets [Line Items] | ||
Development costs of assets | $ 205,000 | $ 666,000 |
Intangible Assets - Summary o_2
Intangible Assets - Summary of Goodwill by Cash Generating Unit (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets Other Than Goodwill [Abstract] | ||
Goodwill | $ 36,043 | $ 38,449 |
Marketplace | ||
Intangible Assets Other Than Goodwill [Abstract] | ||
Goodwill | 16,368 | 17,916 |
Browns – Platform | ||
Intangible Assets Other Than Goodwill [Abstract] | ||
Goodwill | $ 19,675 | $ 20,533 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | $ 26,696 | ||
Depreciation for year | (7,338) | $ (3,648) | $ (2,451) |
Ending balance | 37,528 | 26,696 | |
Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 35,674 | 21,304 | |
Additions | 21,487 | 12,947 | |
Disposals | (1,789) | (827) | |
Transfers | (166) | ||
Foreign exchange movements | (2,861) | 2,250 | |
Ending balance | 52,345 | 35,674 | 21,304 |
Accumulated Depreciation | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | (8,978) | (5,509) | |
Depreciation for year | (7,338) | (3,648) | |
Disposals | 761 | 785 | |
Foreign exchange movements | 738 | (606) | |
Ending balance | (14,817) | (8,978) | (5,509) |
Leasehold Improvements | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 19,445 | ||
Ending balance | 27,902 | 19,445 | |
Leasehold Improvements | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 23,453 | 14,612 | |
Additions | 16,086 | 7,717 | |
Disposals | (1,489) | (249) | |
Transfers | (1,156) | ||
Foreign exchange movements | (1,830) | 1,373 | |
Ending balance | 35,064 | 23,453 | 14,612 |
Leasehold Improvements | Accumulated Depreciation | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | (4,008) | (2,260) | |
Depreciation for year | (4,091) | (1,674) | |
Disposals | 562 | 249 | |
Transfers | (98) | ||
Foreign exchange movements | 375 | (225) | |
Ending balance | (7,162) | (4,008) | (2,260) |
Fixtures and Fittings | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 3,654 | ||
Ending balance | 4,994 | 3,654 | |
Fixtures and Fittings | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 5,516 | 2,211 | |
Additions | 2,083 | 3,230 | |
Disposals | (211) | (175) | |
Transfers | 889 | (177) | |
Foreign exchange movements | (501) | 427 | |
Ending balance | 7,776 | 5,516 | 2,211 |
Fixtures and Fittings | Accumulated Depreciation | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | (1,862) | (971) | |
Depreciation for year | (1,196) | (972) | |
Disposals | 136 | 171 | |
Transfers | 11 | 61 | |
Foreign exchange movements | 129 | (151) | |
Ending balance | (2,782) | (1,862) | (971) |
Motor Vehicles | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 30 | ||
Ending balance | 15 | 30 | |
Motor Vehicles | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 142 | 162 | |
Disposals | (28) | (39) | |
Foreign exchange movements | (5) | 19 | |
Ending balance | 109 | 142 | 162 |
Motor Vehicles | Accumulated Depreciation | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | (112) | (115) | |
Depreciation for year | (14) | (14) | |
Disposals | 28 | 28 | |
Foreign exchange movements | 4 | (11) | |
Ending balance | (94) | (112) | (115) |
Computer Equipment | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 3,567 | ||
Ending balance | 4,617 | 3,567 | |
Computer Equipment | Cost | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | 6,563 | 4,319 | |
Additions | 3,318 | 2,000 | |
Disposals | (61) | (364) | |
Transfers | 101 | 177 | |
Foreign exchange movements | (525) | 431 | |
Ending balance | 9,396 | 6,563 | 4,319 |
Computer Equipment | Accumulated Depreciation | |||
Disclosure Of Property Plant And Equipment [Line Items] | |||
Beginning balance | (2,996) | (2,163) | |
Depreciation for year | (2,037) | (988) | |
Disposals | 35 | 337 | |
Transfers | (11) | 37 | |
Foreign exchange movements | 230 | (219) | |
Ending balance | $ (4,779) | $ (2,996) | $ (2,163) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Additional Information (Details) | Dec. 31, 2018USD ($) |
Leasehold Improvements | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Construction in progress | $ 6,312,000 |
Computer Equipment | |
Disclosure Of Property Plant And Equipment [Line Items] | |
Construction in progress | $ 6,312,000 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Significant Investments In Associates [Abstract] | ||
Equity interests acquired | $ 566,000 | $ 278,000 |
Name of associate | Farfetch Finance Limited | |
Proportion of ownership interest in associate | 25.00% | |
Proportion of ownership interest in associate | England & Wales |
Investments - Summary of Associ
Investments - Summary of Associate Accounted for Using the Equity Method (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Significant Investments In Associates [Line Items] | |||
Share of profits of associates | $ 33 | $ 31 | $ 18 |
Associates [member] | |||
Disclosure Of Significant Investments In Associates [Line Items] | |||
Beginning balance | 58 | 23 | |
Share of profits of associates | 28 | 35 | |
Ending balance | $ 86 | $ 58 | $ 23 |
Share Capital and Share Premi_3
Share Capital and Share Premium - Summary of Ordinary Shares Issued and Fully Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Classes Of Share Capital [Line Items] | ||
Number of shares | 299,857,000 | 232,446,595 |
Par value | $ 0.04 | |
Share capital | $ 11,994 | $ 9,298 |
Share premium | 772,300 | 677,674 |
Merger reserve | 783,529 | 0 |
Total | $ 1,567,823 | $ 686,972 |
Class A Ordinary Shares | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
Number of shares | 256,998,920 | 189,588,515 |
Par value | $ 0.04 | $ 0.04 |
Share capital | $ 10,280 | $ 7,584 |
Share premium | 726,791 | 632,165 |
Merger reserve | 783,529 | |
Total | $ 1,520,600 | $ 639,749 |
Class B Ordinary Shares | ||
Disclosure Of Classes Of Share Capital [Line Items] | ||
Number of shares | 42,858,080 | 42,858,080 |
Par value | $ 0.04 | $ 0.04 |
Share capital | $ 1,714 | $ 1,714 |
Share premium | 45,509 | 45,509 |
Total | $ 47,223 | $ 47,223 |
Share Capital and Share Premi_4
Share Capital and Share Premium - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2018USD ($)shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018Option$ / sharesshares | Dec. 31, 2017USD ($)Option$ / sharesshares | Dec. 31, 2016Option | Sep. 30, 2018shares | Apr. 30, 2018shares | |
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||
Numbers of shares issued | 36,346,645 | |||||||
Par value | $ / shares | $ 0.04 | |||||||
Transaction costs recognized directly in equity amount | $ | $ 11,914,000 | $ 414,000 | ||||||
Shares issued in respect of exercise of warrants and share options | 14,961,544 | |||||||
Number of share options exercised following IPO | 361,343 | 3,032,571 | 198,525 | 2,510,570 | ||||
Browns Earn-Out | ||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||
Numbers of shares issued | 1,976,930 | |||||||
Class A Ordinary Shares | ||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||
Numbers of shares issued | 67,410,405 | 67,410,405 | 67,410,405 | 2,124,135 | ||||
Par value | $ / shares | $ 0.04 | $ 0.04 | $ 0.04 | $ 0.04 | ||||
Class A Ordinary Shares | Concurrent Private Placement | ||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||
Numbers of shares issued | 41,608,088 | |||||||
Class A Ordinary Shares | Series G Funding Round | ||||||||
Disclosure Of Classes Of Share Capital [Line Items] | ||||||||
Numbers of shares issued | 8,502,500 | 34,222,510 | ||||||
Transaction costs recognized directly in equity amount | $ | $ 36,000 |
Reserves - Summary of Other Res
Reserves - Summary of Other Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | $ 396,903 | $ 118,916 | $ 69,511 |
Equity holders of the parent | (155,575) | (112,275) | (81,414) |
Warrants issued | 409 | ||
Transactions with non- controlling interests | (12,980) | ||
Share based payment – equity settled | 29,958 | 16,457 | 15,339 |
Ending balance | 1,128,431 | 396,903 | 118,916 |
Foreign Exchange Reserve | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | 633 | (32,871) | (6,771) |
Movement in foreign exchange reserve | (24,142) | 33,504 | (27,322) |
Transactions with non- controlling interests | 1,222 | ||
Ending balance | (23,509) | 633 | (32,871) |
Warrant Reserve | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | 747 | 747 | 338 |
Warrants issued | 409 | ||
Ending balance | 747 | 747 | 747 |
Changes in Ownership | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | (8,666) | (8,666) | (8,666) |
Ending balance | (8,666) | (8,666) | (8,666) |
Share Based Payments | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | 44,233 | 27,776 | 12,437 |
Share based payment – equity settled | 28,563 | 16,457 | 15,339 |
Ending balance | 72,796 | 44,233 | 27,776 |
Cashflow Hedge Reserve | |||
Disclosure Of Other Reserves [Line Items] | |||
Ending balance | 436 | ||
Movement in cash flow hedge reserve | 436 | ||
Merger Relief Reserve | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | 2,161 | ||
Transactions with non- controlling interests | 2,161 | ||
Ending balance | 2,161 | 2,161 | |
Accumulated Losses | |||
Disclosure Of Other Reserves [Line Items] | |||
Beginning balance | (329,177) | (216,901) | (128,475) |
Equity holders of the parent | (155,575) | (112,275) | (81,414) |
Transactions with non- controlling interests | (1) | (7,012) | |
Share based payment – equity settled | 1,395 | (1) | (7,012) |
Ending balance | $ (483,357) | $ (329,177) | $ (216,901) |
Group Information - Summary of
Group Information - Summary of Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Parent | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Isle of Man | |
% equity interest | 100.00% | 100.00% |
Principal activities | Holding company | |
Farfetch UK Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 100.00% | 100.00% |
Principal activities | Marketing, providing editorial and merchant services | |
Farfetch-Portugal Unipessoal LDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Portugal | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
FFBR importacao e exportacao LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Brazil | |
% equity interest | 100.00% | 100.00% |
Principal activities | Import & Export Agent for Farfetch | |
Farfetch HK Holdings Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Hong Kong | |
% equity interest | 100.00% | 100.00% |
Principal activities | Holding Company | |
Farfetch.com Brasil Servicos LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Brazil | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce, marketing and editorial services | |
Browns (South Molton Street) Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 100.00% | 100.00% |
Principal activities | Retail | |
Farfetch.com US LLC | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | USA | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce and marketing | |
Farfetch Japan Co Ltd | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Japan | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce and marketing | |
LASO.CO.LTD | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Japan | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce and marketing | |
Farfetch China (HK Holdings) Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Hong Kong | |
% equity interest | 100.00% | 100.00% |
Principal activities | Holding company | |
Farfetch (Shanghai) E-Commerce Co. Ltd | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | China | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce services | |
Farfetch HK Production Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Hong Kong | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce and marketing | |
Farfetch Store of the Future Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 100.00% | 100.00% |
Principal activities | Dormant | |
Fashion Concierge UK Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce services | |
F&C Fashion Concierge, LDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Portugal | |
% equity interest | 100.00% | 100.00% |
Principal activities | Dormant | |
Farfetch Black & White Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce services | |
Farfetch International Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Isle of Man | |
% equity interest | 100.00% | 100.00% |
Principal activities | Holding company | |
Farfetch México, S.A de C.V | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Mexico | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
Farfetch Finance Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | England & Wales | |
% equity interest | 25.00% | 25.00% |
Principal activities | Finance | |
Fashion Concierge Powered By Farfetch, LLC | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | USA | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce services | |
Farfetch India Private Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | India | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
Farfetch Middle East FZE | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | UAE | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
Farfetch Italia S.R.L. | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Italy | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
Farfetch Australia Pty Ltd | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Australia | |
% equity interest | 100.00% | 100.00% |
Principal activities | Back office support | |
Farfetch US Holdings, INC | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | USA | |
% equity interest | 100.00% | 100.00% |
Principal activities | Holding Company | |
Fashion Concierge HK Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | Hong Kong | |
% equity interest | 100.00% | 100.00% |
Principal activities | E-commerce services | |
Yankee Merger Sub, LLC | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Country of incorporation | USA | |
% equity interest | 100.00% | 100.00% |
Principal activities | Merger Company for acquisition |
Group Information - Summary o_2
Group Information - Summary of Subsidiaries (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
FFBR importacao e exportacao LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% |
Farfetch.com Brasil Servicos LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% |
Farfetch México, S.A de C.V | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% |
Farfetch India Private Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% |
Parent | FFBR importacao e exportacao LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 99.90% | |
Parent | Farfetch.com Brasil Servicos LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 99.9995% | |
Parent | Farfetch México, S.A de C.V | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interests in subsidiary held by non-controlling interests | 1.00% | |
Parent | Farfetch India Private Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 0.10% | |
Farfetch UK Limited | FFBR importacao e exportacao LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interests in subsidiary held by non-controlling interests | 0.10% | |
Farfetch UK Limited | Farfetch.com Brasil Servicos LTDA | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interests in subsidiary held by non-controlling interests | 0.0005% | |
Farfetch UK Limited | Farfetch México, S.A de C.V | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interest in subsidiary | 99.00% | |
Farfetch UK Limited | Farfetch India Private Limited | ||
Disclosure Of Significant Investments In Subsidiaries [Line Items] | ||
Proportion of ownership interests in subsidiary held by non-controlling interests | 99.90% |
Non-controlling interests - Add
Non-controlling interests - Additional Information (Details) | Jan. 11, 2017 |
FFBR importacao e exportacao LTDA | |
Disclosure Of Information About Consolidated Structured Entities [Line Items] | |
Remaining percentage acquired | 0.10% |
Non-controlling interests - Sum
Non-controlling interests - Summary of Effect of Changes in Ownership Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Non Controlling Interests [Abstract] | |||
Balance | $ 0 | $ (1) | |
Transactions with non-controlling interests | 0 | 1 | |
Loss attributable to non-controlling interests | 0 | 0 | $ (45) |
Balance | $ 0 | $ 0 | $ (1) |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trade And Other Payables [Abstract] | ||
Trade payables | $ 96,176 | $ 73,992 |
Other payables | 350 | 713 |
Social security and other taxes | 6,194 | 6,646 |
Income tax payable | 1,514 | 666 |
Accruals and deferred revenue | 89,924 | 54,727 |
Trade and other payables | $ 194,158 | $ 136,744 |
Warrants - Additional Informati
Warrants - Additional Information (Details) $ in Millions | Dec. 31, 2016USD ($) |
Promissory Notes | |
Disclosure Of Detailed Information About Warrants [Line Items] | |
Secured borrowings | $ 20 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Issued (Details) - Triple Point Capital - Promissory Notes | 12 Months Ended |
Dec. 31, 2016£ / sharesshares | |
October 3, 2016 | |
Disclosure Of Detailed Information About Warrants [Line Items] | |
Number of shares | shares | 122,935 |
Warrant price | £ / shares | £ 6.15 |
Expiration date | 12 years from issue date |
August 1, 2016 | |
Disclosure Of Detailed Information About Warrants [Line Items] | |
Number of shares | shares | 33,530 |
Warrant price | £ / shares | £ 6.15 |
Expiration date | 12 years from issue date |
December 23, 2016 | |
Disclosure Of Detailed Information About Warrants [Line Items] | |
Number of shares | shares | 33,530 |
Warrant price | £ / shares | £ 6.15 |
Expiration date | 12 years from issue date |
Provisions - Summary of Provisi
Provisions - Summary of Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Other Provisions [Line Items] | ||
Provisions, Beginning balance | $ 5,142 | $ 3,935 |
Additional provision in the year | 7,877 | 1,418 |
Transfer from trade and other payables | 2,182 | |
Release of provision in the year | (815) | |
Foreign exchange | (924) | (211) |
Provisions, Ending balance | 13,462 | 5,142 |
Dilapidations Provision | ||
Disclosure Of Other Provisions [Line Items] | ||
Provisions, Beginning balance | 2,165 | 1,834 |
Additional provision in the year | 1,263 | 406 |
Release of provision in the year | (815) | |
Foreign exchange | (98) | (75) |
Provisions, Ending balance | 2,515 | 2,165 |
Share Based Payments Employment Taxes Provision | ||
Disclosure Of Other Provisions [Line Items] | ||
Provisions, Beginning balance | 2,977 | 2,101 |
Additional provision in the year | 6,614 | 1,012 |
Transfer from trade and other payables | 2,182 | |
Foreign exchange | (826) | (136) |
Provisions, Ending balance | $ 10,947 | $ 2,977 |
Provisions - Additional Informa
Provisions - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)yr | Dec. 31, 2017USD ($)yr | Dec. 31, 2016USD ($) | |
Disclosure Of Other Provisions [Line Items] | |||
Cost to restore leasehold property liability | $ 2,515,000 | $ 2,165,000 | |
Average term leases | 6 years | ||
Average remaining length of contracts | 4 years | ||
Liabilities from share-based payment transactions | $ 13,462,000 | 5,142,000 | $ 3,935,000 |
Transfer from trade and other payables | 2,182,000 | ||
Trade and other payables | 194,158,000 | 136,744,000 | |
Share Based Payments Employment Taxes Provision | |||
Disclosure Of Other Provisions [Line Items] | |||
Liabilities from share-based payment transactions | 10,947,000 | $ 2,977,000 | $ 2,101,000 |
Transfer from trade and other payables | 2,182,000 | ||
Trade and other payables | $ 0 | ||
Provision Fully Utilized | |||
Disclosure Of Other Provisions [Line Items] | |||
Weighted average remaining contracted life of options outstanding | yr | 9.54 | 8 |
Deferred Tax - Additional Infor
Deferred Tax - Additional Information (Details) £ in Millions | Jan. 02, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) |
Deferred Tax Assets And Liabilities [Line Items] | ||||
Deferred tax recognized on acquisition | $ 719,000 | |||
Accumulated unutilized trading tax losses carried forward | $ 5,000,000 | 232,000,000 | $ 382,000,000 | |
Maximum offset percentage of carry forward operating loss | 80.00% | |||
Unrecognized gross deferred tax asset in future tax deduction on share options | $ 212,000,000 | |||
Americas | ||||
Deferred Tax Assets And Liabilities [Line Items] | ||||
Accumulated unutilized trading tax losses carried forward | $ 29,000,000 | |||
Net operating losses carried forward term | 20 years | |||
Net operating losses carried forward expiration date | Dec. 31, 2030 | |||
Brazil | ||||
Deferred Tax Assets And Liabilities [Line Items] | ||||
Trading losses carried forward utilization restriction percentage | 30.00% | |||
Japan | ||||
Deferred Tax Assets And Liabilities [Line Items] | ||||
Trading losses carried forward utilization restriction percentage | 50.00% | |||
UK Group profits exceeding £5.0m | United Kingdom | ||||
Deferred Tax Assets And Liabilities [Line Items] | ||||
Additional percentage of restricted total profit offset by brought forward losses | 50.00% | |||
Total profit offset by brought forward losses | £ | £ 5 | |||
Style.com | ||||
Deferred Tax Assets And Liabilities [Line Items] | ||||
Deferred tax recognized on acquisition | $ 719,000 |
Deferred Tax - Schedule of Defe
Deferred Tax - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax liabilities | ||
Beginning balance | $ 1,079 | $ 493 |
Deferred tax recognized on acquisition | 719 | |
Foreign exchange | (52) | 91 |
Released to profit or loss | (282) | (224) |
Ending balance | 745 | 1,079 |
Deferred tax assets | ||
Beginning balance | 1,079 | 493 |
Deferred tax recognized on acquisition | 719 | |
Foreign exchange | (52) | 91 |
Released to profit or loss | (282) | (224) |
Ending balance | $ 745 | $ 1,079 |
Deferred Tax - Summary of Tradi
Deferred Tax - Summary of Trading Losses (Details) ¥ in Millions, £ in Millions, R$ in Millions, $ in Millions, $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2018BRL (R$) | Dec. 31, 2018JPY (¥) | Dec. 31, 2018HKD ($) | Jan. 02, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017JPY (¥) | Dec. 31, 2017HKD ($) |
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | $ 382 | $ 5 | $ 232 | ||||||||
United Kingdom | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | 331 | £ 259 | 184 | £ 136 | |||||||
Americas | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | 34 | 29 | |||||||||
Brazil | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | 13 | R$ 49 | 13 | R$ 42 | |||||||
Japan | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | 2 | ¥ 274 | 4 | ¥ 463 | |||||||
Hong Kong | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | 2 | $ 14 | 2 | $ 16 | |||||||
Local | |||||||||||
Disclosure Of Temporary Difference Unused Tax Losses And Unused Tax Credits [Line Items] | |||||||||||
Trading losses | $ 630 | $ 686 |
Commitments and Guarantees - Sc
Commitments and Guarantees - Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Maturity Analysis Of Operating Lease Payments [Line Items] | ||
Minimum lease payments under non-cancellable operating leases | $ 103,034,000 | $ 66,133,000 |
No Later than One Year | ||
Disclosure Of Maturity Analysis Of Operating Lease Payments [Line Items] | ||
Minimum lease payments under non-cancellable operating leases | 15,820,000 | 11,929,000 |
Later than One Year Not Later than Three Years | ||
Disclosure Of Maturity Analysis Of Operating Lease Payments [Line Items] | ||
Minimum lease payments under non-cancellable operating leases | 26,599,000 | 20,297,000 |
Later than Three Year Not Later than Five Years | ||
Disclosure Of Maturity Analysis Of Operating Lease Payments [Line Items] | ||
Minimum lease payments under non-cancellable operating leases | 22,584,000 | 11,251,000 |
Later than Five Years | ||
Disclosure Of Maturity Analysis Of Operating Lease Payments [Line Items] | ||
Minimum lease payments under non-cancellable operating leases | $ 38,031,000 | $ 22,656,000 |
Commitments and Guarantees - Ad
Commitments and Guarantees - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Commitments And Guarantees [Abstract] | ||
Contingent rent | $ 0 | $ 0 |
Contingent liabilities | $ 0 | $ 0 |
Related party disclosures - Add
Related party disclosures - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Total compensation and benefits in kind (excluding share based payments) to key management personnel | $ 1,284,000 | $ 1,200,000 |
Share based payment compensation | 7,869,000 | 1,900,000 |
Platforme International Limited | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Commisson generated | 557,000 | 248,000 |
Receivable | 13,000 | 70,000 |
Conde Nast | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Marketing expenditure | 346,000 | 0 |
Payable to related party | $ 19,000 | 0 |
Fashion Concierge UK Limited | ||
Disclosure Of Transactions Between Related Parties [Line Items] | ||
Total sales | $ 110,000 |
Financial Instruments and Fin_3
Financial Instruments and Financial Risk Management - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)Risk | Dec. 31, 2017USD ($) | |
Disclosure Of Financial Instruments [Line Items] | ||
Number of risk identified | Risk | 2 | |
Description of derivative financial instruments maturity period | All derivative financial instruments have a maturity of less than 12 months. | |
Restricted cash | $ 0 | |
Series G | ||
Disclosure Of Financial Instruments [Line Items] | ||
Net losses recognized | $ 3,313,000 | |
Trade and Other Receivables | ||
Disclosure Of Financial Instruments [Line Items] | ||
Expected credit loss rate | 0.50% |
Financial Instruments and Fin_4
Financial Instruments and Financial Risk Management - Summary of Categories of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Financial Instruments [Line Items] | ||||
Other receivables, current | $ 48,285 | $ 5,294 | ||
Cash and cash equivalents | 1,044,786 | 384,002 | $ 150,032 | $ 72,579 |
Other receivables, noncurrent | 10,458 | 9,193 | ||
Derivative financial assets | 691 | 185 | ||
Trade payables | 96,176 | 73,992 | ||
Other payables | 350 | 713 | ||
Financial liabilities at fair value through profit or loss | 19,146 | |||
Contingent Consideration | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Financial liabilities at fair value through profit or loss | 19,146 | |||
Amortized Cost | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Trade payables | 96,176 | 73,992 | ||
Other payables | 350 | 713 | ||
Total | 96,526 | 74,705 | ||
Foreign Currency Forwards | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Foreign currency forwards - held at FVTPL | 255 | 185 | ||
Foreign currency forwards - held as cash flow hedges | 436 | |||
Amortized Cost | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Other receivables, current | 48,285 | 5,294 | ||
Cash and cash equivalents | 1,044,786 | 384,002 | ||
Other receivables, noncurrent | 10,458 | 9,193 | ||
Total | $ 1,103,529 | $ 398,489 |
Financial Instruments and Fin_5
Financial Instruments and Financial Risk Management - Financial Assets/(Liabilities) at Fair Value through Profit or Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items] | ||
Financial liabilities at fair value through profit or loss | $ 19,146 | |
Foreign Currency Risks | ||
Disclosure Of Risk Management Strategy Related To Hedge Accounting [Line Items] | ||
Financial assets at fair value through profit or loss | $ 691 | 226 |
Financial liabilities at fair value through profit or loss | $ (41) |
Financial Instruments and Fin_6
Financial Instruments and Financial Risk Management - Summary of Analyses Group's Financial Liabilities into Groupings of Remaining Period from Reporting Date to Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Instruments [Line Items] | ||
Trade and other payables | $ 194,158 | $ 136,744 |
Liquidity Risk | Less Than One Year | ||
Disclosure Of Financial Instruments [Line Items] | ||
Trade and other payables | 96,526 | 74,705 |
Contingent consideration | 19,146 | |
Total | 96,526 | 93,851 |
Liquidity Risk | More Than One Year | ||
Disclosure Of Financial Instruments [Line Items] | ||
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Secured borrowings | $ 0 | $ 0 |
Financial Instruments and Fin_7
Financial Instruments and Financial Risk Management - Schedule of Capital Structure (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Financial Instruments [Line Items] | ||||
Less: cash and cash equivalents | $ (1,044,786,000) | $ (384,002,000) | $ (150,032,000) | $ (72,579,000) |
Net cash | (49,935,000) | (38,904,000) | ||
Total equity | 1,128,431,000 | 396,903,000 | $ 118,916,000 | $ 69,511,000 |
Capital Risk Management | ||||
Disclosure Of Financial Instruments [Line Items] | ||||
Less: cash and cash equivalents | (1,044,786,000) | (384,002,000) | ||
Net cash | (1,044,786,000) | (384,002,000) | ||
Total equity | 1,128,431,000 | 396,903,000 | ||
Total capital | $ 83,645,000 | $ 12,901,000 |
Financial Instruments and Fin_8
Financial Instruments and Financial Risk Management - Schedule of Foreign Exchange Rate Sensitivity Analysis (Details) - United States Dollars - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
10% Appreciation | ||
Disclosure Of Financial Instruments [Line Items] | ||
Increase/ (decrease) in profit or loss | $ 29,169 | $ 7,576 |
10% Depreciation | ||
Disclosure Of Financial Instruments [Line Items] | ||
Increase/ (decrease) in profit or loss | $ (35,651) | $ (9,260) |
Share Options-Equity and Cash_3
Share Options-Equity and Cash Settled - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)sharesOptionOptionPlan | Dec. 31, 2017USD ($)sharesOption | Dec. 31, 2016USD ($)Option | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Weighted average share price at the date of exercise options exercised | $ 20 | $ 9.42 | |
Equitty - settled share based payments | 53,819,000 | 21,486,000 | $ 19,848,000 |
Intrinsic value of liabilities from share-based payment transactions | $ 15,342,000 | $ 5,123,000 | |
Options granted | Option | 18,209,410 | 15,666,155 | 6,128,555 |
Equity Settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of share option plans | OptionPlan | 4 | ||
Equitty - settled share based payments | $ 34,668,000 | $ 16,667,000 | $ 17,256,000 |
Cash Settled | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Number of share option plans | OptionPlan | 1 | ||
Cash settled expense | $ 10,355,000 | $ 3,807,000 | 1,178,000 |
Share Appreciation Rights | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Options granted | shares | 769,000 | 222,696 | |
Cash settled expense | $ 10,355,000 | $ 3,807,000 | $ 1,178,000 |
Revaluation gain (loss) | 6,079,000 | 2,071,000 | |
Intrinsic value | 19,425,000 | 7,362,000 | |
Aggregate intrinsic value for options fully vested | $ 8,722,000 | $ 2,965,000 |
Share Options-Equity and Cash_4
Share Options-Equity and Cash Settled - Summary of Equity Based Payment Plans (Details) | 12 Months Ended |
Dec. 31, 2018EquityInstrument | |
EMI Approved Share Option Plan | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Date of first grant | November 1, 2011 |
Number granted | 5,505,600 |
Contractual life | 10 years |
Vesting conditions | Varying tranches of options vesting upon defined years of service |
Unapproved Share Option Plan | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Date of first grant | July 1, 2011 |
Number granted | 11,332,835 |
Contractual life | 10 years |
Vesting conditions | Varying tranches of options vesting upon defined years of service |
LTIP 2015 Plan | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Date of first grant | September 9, 2015 |
Number granted | 38,174,980 |
Contractual life | 10 years |
Vesting conditions | Varying tranches of options vesting upon defined years of service with certain awards having non-market conditions |
LTIP 2018 Plan | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |
Date of first grant | September 20, 2018 |
Number granted | 3,465,915 |
Contractual life | 10 years |
Vesting conditions | Varying tranches of options and Restricted Stock Units (RSU) vesting upon defined years of service |
Share Options-Equity and Cash_5
Share Options-Equity and Cash Settled - Summary of Movements on Share Options and Weighted Average Exercise Prices (Details) | 12 Months Ended | |||||
Dec. 31, 2018Option | Dec. 31, 2018sharesOption | Dec. 31, 2018USD ($)Option | Dec. 31, 2018Option | Dec. 31, 2017USD ($)Option | Dec. 31, 2016USD ($)Option | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | ||||||
Options at beginning of year | Option | 32,307,010 | 17,522,365 | 16,611,310 | |||
Options granted | Option | 18,209,410 | 15,666,155 | 6,128,555 | |||
Options exercised | (361,343) | (3,032,571) | (198,525) | (2,510,570) | ||
Options forfeited | Option | (3,265,035) | (682,985) | (2,706,930) | |||
Options at end of year | Option | 44,218,814 | 32,307,010 | 17,522,365 | |||
Options exercisable at end of year | Option | 16,830,409 | 16,830,409 | 16,830,409 | 16,830,409 | 12,551,425 | 10,214,900 |
Options at beginning of year | $ 4.43 | $ 2.01 | $ 0.76 | |||
Options granted | 9.84 | 7.10 | 3.34 | |||
Options forfeited | 7.31 | 6.71 | 0.57 | |||
Options exercised | 2.38 | 0.08 | 0.08 | |||
Options at end of year | 6.15 | 4.43 | 2.01 | |||
Options exercisable at year end | $ 2.33 | $ 1.59 | $ 1.08 | |||
Weighted average remaining contracted life of options outstanding at year end | 9 years 6 months 14 days | 8 years | 7 years 8 months 1 day |
Share Options-Equity and Cash_6
Share Options-Equity and Cash Settled - Exercise Price of Options Outstanding (Details) | Dec. 31, 2018USD ($)Option | Dec. 31, 2017USD ($)Option | Dec. 31, 2016USD ($)Option | Dec. 31, 2015Option |
Exercise price of options outstanding at year end | ||||
Number of options | 44,218,814 | 32,307,010 | 17,522,365 | 16,611,310 |
Weighted average fair value of options granted in year | $ | $ 4,170 | $ 2,410 | $ 2,430 | |
$0.00 to $0.08 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 4,416,525 | 5,868,735 | 6,090,695 | |
$0.09 to $0.56 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 2,126,540 | 5,581,825 | 5,581,825 | |
$0.57 to $3.52 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 4,595,104 | 6,302,505 | 5,002,505 | |
$3.53 to $5.73 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 6,257,690 | 8,589,445 | 847,340 | |
$5.74 to $7.39 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 7,890,495 | 5,964,500 | ||
$7.40 to $20.00 | ||||
Exercise price of options outstanding at year end | ||||
Number of options | 18,932,460 |
Share Options-Equity and Cash_7
Share Options-Equity and Cash Settled - Exercise Price of Options Outstanding (Parenthetical) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
$0.00 to $0.08 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | $ 0 | $ 0 | $ 0 |
$0.00 to $0.08 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 0.08 | 0.08 | 0.08 |
$0.09 to $0.56 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 0.09 | 0.09 | 0.09 |
$0.09 to $0.56 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 0.56 | 0.56 | 0.56 |
$0.57 to $3.52 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 0.57 | 0.57 | 0.57 |
$0.57 to $3.52 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 3.52 | 3.52 | 3.52 |
$3.53 to $5.73 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 3.53 | 3.53 | 3.53 |
$3.53 to $5.73 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 5.73 | 5.73 | 5.73 |
$5.74 to $7.39 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 5.74 | 5.74 | 5.74 |
$5.74 to $7.39 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 7.39 | 7.39 | 7.39 |
$7.40 to $20.00 | Bottom of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | 7.40 | 7.40 | 7.40 |
$7.40 to $20.00 | Top of Range | |||
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Line Items] | |||
Exercise price of options outstanding at year end | $ 20 | $ 20 | $ 20 |
Share Options-Equity and Cash_8
Share Options-Equity and Cash Settled - Summary of Inputs in Black Scholes Model for Share Options Granted (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)Year | Dec. 31, 2017USD ($)Year | Dec. 31, 2016USD ($)Year | |
Disclosure Of Terms And Conditions Of Sharebased Payment Arrangement [Abstract] | |||
Weighted average share price | $ 11.83 | $ 9.87 | $ 6.15 |
Weighted average exercise price | $ 9.84 | $ 7.10 | $ 3.34 |
Average expected volatility | 23.00% | 20.00% | 20.00% |
Expected life | Year | 4 | 4 | 4 |
Risk free rate | 2.75% | 1.85% | 1.40% |
Events after the reporting ye_2
Events after the reporting year - Additonal Information (Details) - Business Combination | Jan. 04, 2019USD ($)shares | Feb. 26, 2019USD ($) |
Stadium Goods | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Percentage of voting equity interests acquired | 100.00% | |
Date of acquisition | Jan. 4, 2019 | |
Total consideration transferred | $ 240,200,000 | |
Cash transferred | 150,200,000 | |
Ordinary shares issued | 90,000,000 | |
Net identified liabilities acquired | 8,900,000 | |
Non-current assets | 2,400,000 | |
Net working capital | (100,000) | |
Inventories | 800,000 | |
Provisions for withholding taxes | 12,000,000 | |
Intangible assets | 221,400,000 | |
Total goodwill acquired | 104,500,000 | |
Stadium Goods | Brand Name, Stadium Goods | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Total goodwill acquired | 116,900,000 | |
Deferred tax liability | 30,400,000 | |
Stadium Goods | In accordance with IFRS 3 | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Total consideration transferred | 182,100,000 | |
Cash transferred | 150,200,000 | |
Ordinary shares issued | 31,900,000 | |
Stadium Goods | Service Condition for Members of Stadium Goods Management Team | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Ordinary shares issued | $ 58,100,000 | |
Service condition term | 4 years | |
Level 1 Access | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Total consideration transferred | $ 50,000,000 | |
Class A Ordinary Shares | Stadium Goods | ||
Disclosure Of Nonadjusting Events After Reporting Period [Line Items] | ||
Number of ordinary Shares transferred | shares | 4,641,554 |