LONDON, Sept. 5 /PRNewswire-FirstCall/ -- Signet Group plc (LSE and
NYSE: SIG), the world's largest speciality retail jeweller, today
announces its unaudited half year results for 26 weeks ended 4
August 2007. Group profit before tax: $109.0m up 3.2% Group like
for like sales: up 3.2% Group sales: $1,601.8m up 9.2% Earnings per
share: 4.1c up 5.1% Interim dividend per share: 0.96c up 7.5%1 (1)
Sterling increase, see note 9 for translation assumption.
Operational Highlights: -- US: - Continued to significantly
outperform $62 billion jewellery sector - 2.7% increase in like for
like sales - Jared to begin national network television advertising
for Christmas 2007 - Space increase of about 10% expected in
2007/08 - c.$200 million investment in fixed and working capital
anticipated for new stores -- UK: - 4.6% increase in like for like
sales - Strong performance by watch category - c.$25 million
capital expenditure on stores anticipated in 2007/08 Terry Burman,
Group Chief Executive, commented: "Against the background of a
challenging retail environment in their respective markets, both
divisions performed well. The US division continued to gain market
share, demonstrated by an increase of 7.6% in sales. The UK
business outperformed the retail market with a like for like sales
increase of 4.6%. Reflecting the wider economic environment, the
trading outlook on both sides of the Atlantic remains uncertain and
the important Christmas period will, as usual, significantly
influence the outcome for the full year. Both businesses continue
to manage costs tightly while implementing proven strategies to
strengthen further their competitive positions." Enquiries: Terry
Burman, Group Chief Executive +44 (0) 20 7317 9700 Walker Boyd,
Group Finance Director +44 (0) 20 7317 9700 Susan Gilchrist,
Brunswick +44 (0) 20 7404 5959 Pamela Small, Brunswick +44 (0) 20
7404 5959 Signet operated 1,925 speciality retail jewellery stores
at 4 August 2007; these included 1,350 stores in the US, where the
Group trades as "Kay Jewelers", "Jared The Galleria Of Jewelry" and
under a number of regional names. At that date Signet operated 575
stores in the UK, where the Group trades as "H.Samuel", "Ernest
Jones" and "Leslie Davis". Further information on Signet is
available at http://www.signetgroupplc.com/. See also
http://www.kay.com/, http://www.jared.com/,
http://www.hsamuel.co.uk/ and http://www.ernestjones.co.uk/.
Interim Management Report These results are presented in US dollars
following the change in the functional currency of the Company and
the move to reporting in US dollars which took effect from 5
February 2007. GROUP In the 26 weeks to 4 August 2007 Group profit
before tax rose by 3.2% to $109.0 million (H1 2006/07: $105.6
million) and 3.8% at constant exchange rates (see note 10). Like
for like sales were up by 3.2% and total sales by 9.2% to $1,601.8
million (H1 2006/07: $1,467.2 million). At constant exchange rates
the increase in total sales was 6.7% (see note 9). The average US
dollar exchange rate for the period was 1 pound Sterling/$1.99 (H1
2006/07: 1 pound/$1.81). Operating profit rose by 4.1% to $116.9
million (H1 2006/07: $112.3 million), and 5.3% at constant exchange
rates (see note 10). Operating margin was 7.3% (H1 2006/07: 7.7%).
Earnings per share advanced by 5.1% to 4.1c (H1 2006/07: 3.9c); the
tax rate being 36.5% (H1 2006/07: 35.6%). The Board has approved an
interim dividend of 0.96c per ordinary share (H1 2006/07: 0.4434p),
an increase of 7.5% at the exchange rate on 3 September 2007 (See
note 10 for details of payment in sterling). Outlook Reflecting the
wider economic environment, the trading outlook on both sides of
the Atlantic remains uncertain and the important Christmas period
will, as usual, significantly influence the outcome for the full
year. Both businesses continue to manage costs tightly while
implementing proven strategies to strengthen further their
competitive positions. OPERATING REVIEW US Division (circa 75% of
Group sales) The US business again significantly outperformed the
$62 billion jewellery sector and gained further market share. In a
more challenging retail environment like for like sales were up
2.7% and total sales rose by 7.6% to $1,216.9 million (H1 2006/07:
$1,131.1 million). The underlying growth in like for like sales is
estimated to have been 2.0% after adjusting for the impact of
weather disruption over Valentine's Day and the benefit from the
timing of a promotional event at the beginning of the year.
Operating profit was little changed at $126.3 million (H1 2006/07:
$125.1 million). As anticipated the gross margin rate was a little
lower than last year due to commodity cost increases and changes in
the sales mix which benefited like for like sales. Operating margin
was 10.4% (H1 2006/07: 11.1%). The bad debt charge at 2.8% of total
sales (H1 2006/07: 2.4%) was comfortably within the tight range of
the past ten years. While the bridal market has proven to be
resilient, the sales performance over Valentine's Day was disrupted
by adverse weather and Mother's Day was disappointing. White gold
jewellery continued to perform well, as did Journey and Circle
ranges in the necklace category and loose diamonds. The average
unit selling price in both the mall formats and Jared rose by about
5% as a result of selective price increases and mix changes. There
will be a further increase in Kay advertising expenditure over the
important Christmas period. Jared will begin to use national
network television advertising for Christmas 2007, rather than
purchase airtime on a local market basis. The annual marketing to
sales ratio is planned to be maintained at a broadly similar level
to that of last year. The continued focus on staff training,
further supply chain improvements, merchandising initiatives,
increased marketing expenditure and the in-house credit operation
means the business is well positioned to compete. Consistent with
the Group's five year $1 billion investment programme, it is
expected that in 2007/08 US net new store space will increase by
about 10%. Capital expenditure in new and existing stores is
planned to be circa $105 million. Investment in working capital,
that is inventory and receivables, associated with space growth of
some $135 million is anticipated. The change in store numbers by
format, together with the long term potential for each is set out
below: 3 February Expected net Long term 2007 openings 2007/08
potential Kay Mall 772 14 850+ Off-mall 52 43 500+ Outlet centres 5
6 50-100 Metropolitan 3 - 30+ Kay total 832 63 1,430+ Regional
brands 341 16 c.700 Jared 135 19 c.300 Total 1,308 98 2,430+ UK
Division (circa 25% of Group sales) Total sales increased by 4.2%
at constant exchange rates (see note 10) to $384.9 million (H1
2006/07: $336.1 million). Like for like sales were up by 4.6%
(H.Samuel +3.2% and Ernest Jones +6.3%). Operating loss for the
period was $0.6 million (H1 2006/07: $6.2 million loss), the normal
seasonal deficit being largely eliminated despite a slight fall in
gross margin. Tight control of costs and inventory was maintained.
The watch category performed particularly well and diamond
participation in the division increased further. The focus on
enhancing customer service continues and staff training remains a
priority. In partnership with a bank, a branded in-store credit
card is being introduced in both H.Samuel and Ernest Jones for the
Christmas season. 32 stores are expected to be refurbished or
relocated this year. An enhanced format is being used in H.Samuel
and a range of design improvements are being tested in Ernest
Jones. Five new stores are planned to be opened. Total store
capital expenditure is anticipated to be some $25 million. At the
year end, 352 H.Samuel (3 February 2007: 375) and 204 Ernest Jones
(3 February 2007: 206) stores are anticipated to be operating.
Group central costs, financing items and taxation Group central
costs were $8.8 million (H1 2006/07: $6.6 million), up $1.5 million
at constant exchange rates (see note 10) largely reflecting foreign
exchange items and higher professional fees. Financing costs rose
to $7.9 million (H1 2006/07: $6.7 million), the increase being
primarily due to the share buy back programme announced in 2006/07.
The tax charge was $39.8 million (H1 2006/07: $37.6 million). Net
debt Net debt at 4 August 2007 was $354.8 million (29 July 2006:
$229.0 million). Group gearing (that is the ratio of net debt to
shareholders' funds) at 4 August 2007 was 20.8% (29 July 2006:
14.7%). The seasonal increase in net debt since the start of the
financial year has been larger than normal due to the completion of
the 2006/07 share repurchase programme and faster vendor payments
reflecting overall advantageous changes in terms (H1 2007/08: up
$121.6 million; H1 2006/07: up $54.5 million). Additional store
investment, predominantly in the US, will result in fixed capital
expenditure in the current year of about $170 million (2006/07:
$124.4 million). Risk factors, seasonality and related party
transactions The principal risk factors are set out on pages 39 to
45 of the Group's Annual Report & Accounts for the 53 weeks
ended 3 February 2007, a copy of which is available in electronic
form on the Group's website http://www.signetgroupplc.com/. In the
view of the directors there has been no material change in these
factors in respect of the remaining six months of the financial
year. The Group's business is highly seasonal with a very
significant proportion of its sales and operating profit generated
during its fourth quarter, which includes the Christmas season. The
Group expects to continue to experience a seasonal fluctuation in
sales and profit. There have been no additional related party
transactions to those disclosed on page 105 of the Group's Annual
Report & Accounts for the 53 weeks ended 3 February 2007. There
will be an analysts' meeting today at 2.00 p.m. BST (9.00 a.m.
EDT). For all interested parties there will be a simultaneous audio
and video webcast available on the Signet Group website
(http://www.signetgroupplc.com/) and a live telephone conference
call. The details for the conference call are: European dial-in:
+44 (0)20 7806 1950 European 48 hr. replay: +44 (0)20 7806 1970
Access code: 3797548# US dial-in: +1 718 354 1387 US 48 hr. replay:
+1 718 354 1112 Access code: 3797548# An on-demand webcast of the
presentation is expected to be available from close of business
today at http://www.signetgroupplc.com/ and on the Thomson CCBN
platform. The half year report will be posted to shareholders on or
around 12 September 2007. Copies of the half year report may be
obtained from the Company Secretary, 15 Golden Square, London W1F
9JG or downloaded as a pdf file from http://www.signetgroupplc.com/
. Investor Relations Programme Third Quarter Sales The third
quarter sales for the 13 weeks ending 3 November 2007 are expected
to be announced on Thursday 8 November 2007 at 12.30 p.m. GMT. Las
Vegas Store Tour, 29 November 2007 It is intended to host a tour of
a Jared and a Kay store in Las Vegas, Nevada on the morning of
Thursday, November 29, 2007 for professional investors. The tour
will be hosted by Mark Light, Signet US CEO and Tim Jackson,
Investor Relations Director. Cautionary Statements The Directors
owe their duties to shareholders of Signet as a whole and undertake
no duty of care to individual shareholders, other shareholders or
potential investors and the Company shall not be subject to any
civil liability to persons resulting from reliance, by that person
or another, on information contained in this interim management
report unless a person discharging managerial responsibilities
within the Company knew such information was untrue or misleading
and was published in bad faith or recklessly, or involved the
dishonest concealment of material facts. Also the Company desires
to take advantage of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995 with
respect to the forward-looking statements about its financial
performance and objectives in this Half Year Report. These
statements, based upon management's beliefs as well as on
assumptions made by and data currently available to management,
appear in a number of places throughout this release and include
statements regarding, among other things, our results of operation,
financial condition, liquidity, prospects, growth, strategies and
the industry in which the Group operates. Our use of the words
"expects," "intends," "anticipates," "estimates," "may,"
"forecast," "objective," "plan" or "target," and other similar
expressions are intended to identify forward- looking statements.
These forward-looking statements are not guarantees of future
performance and are subject to a number of risks and uncertainties,
including but not limited to general economic conditions, the
merchandising, pricing and inventory policies followed by the
Group, the reputation of the Group, the level of competition in the
jewellery sector, the price and availability of diamonds, gold and
other precious metals, seasonality of the Group's business and
financial market risk. For a discussion of these and other risks
and uncertainties which could cause actual results to differ
materially, see the "Risk and Other Factors" section of the
Company's 2006/07 Annual Report on Form 20-F filed with the U.S.
Securities and Exchange Commission on May 4, 2007 and other filings
made by the Company with the Commission. Actual results may differ
materially from those anticipated in such forward-looking
statements even if experience or future changes make it clear that
any projected results expressed or implied therein may not be
realised. The Company undertakes no obligation to update or revise
any forward-looking statements to reflect subsequent events or
circumstances. SIGNET GROUP plc Condensed consolidated income
statement (unaudited) for the 26 weeks ended 4 August 2007 13 weeks
13 weeks 26 weeks 26 weeks 53 weeks ended ended ended ended ended 4
August 29 July 4 August 29 July 3 February 2007 2006 2007 2006 2007
Notes $m $m $m $m $m Sales 2,10 787.4 732.9 1,601.8 1,467.2 3,559.2
Cost of sales (713.1) (665.9) (1,465.5) (1,333.2)(3,092.4) Gross
profit 74.3 67.0 136.3 134.0 466.8 Administrative expenses (37.5)
(34.4) (72.8) (68.2) (142.1) Other operating income 26.1 23.4 53.4
46.5 91.5 Operating profit 2,10 62.9 56.0 116.9 112.3 416.2 Finance
income 3 2.7 5.5 6.1 7.6 18.8 Finance expense 3 (7.4) (9.6) (14.0)
(14.3) (34.2) Profit before tax 10 58.2 51.9 109.0 105.6 400.8
Taxation 4 (21.5) (18.3) (39.8) (37.6) (134.8) Profit for the
financial period 36.7 33.6 69.2 68.0 266.0 Earnings per share -
basic 6 2.2c 1.9c 4.1c 3.9c 15.4c - diluted 2.1c 1.9c 4.0c 3.9c
15.3c Earnings per ADS - basic 6 21.5c 19.2c 40.6c 39.0c 154.0c -
diluted 21.4c 19.2c 40.4c 39.0c 153.4c All of the above relate to
continuing activities. Condensed consolidated balance sheet
(unaudited) at 4 August 2007 4 August 29 July 3 February 2007 2006
2007 Notes $m $m $m Assets Non-current assets Intangible assets
50.4 42.8 46.3 Property, plant and equipment 491.0 463.9 484.8
Other receivables 34.1 28.6 29.2 Retirement benefit asset 6.5 - 3.7
Deferred tax assets 29.0 31.2 29.0 611.0 566.5 593.0 Current assets
Inventories 1,366.3 1,227.2 1,350.6 Trade and other receivables
801.8 707.2 869.1 Cash and cash equivalents 51.8 421.1 152.3
2,219.9 2,355.5 2,372.0 Total assets 2,830.9 2,922.0 2,965.0
Liabilities Current liabilities Borrowings due in less than one
year (26.6) (270.1) (5.5) Trade and other payables (314.3) (340.9)
(392.4) Deferred income (102.5) (92.1) (122.7) Current tax (81.3)
(48.2) (101.7) (524.7) (751.3) (622.3) Non-current liabilities
Borrowings due in more than one year (380.0) (380.0) (380.0) Other
payables (79.2) (68.3) (74.7) Deferred income (134.6) (120.7)
(132.0) Provisions (10.2) (10.8) (10.0) Retirement benefit
obligation - (28.3) - (604.0) (608.1) (596.7) Total liabilities
(1,128.7) (1,359.4) (1,219.0) Net assets 1,702.2 1,562.6 1,746.0
Equity Capital and reserves attributable to equity shareholders
Called up share capital 7 15.4 14.3 14.0 Share premium 8 138.4
128.4 134.7 Other reserves 8 235.2 234.8 235.1 Retained earnings 8
1,313.2 1,185.1 1,362.2 Total equity 1,702.2 1,562.6 1,746.0
Condensed consolidated cash flow statement (unaudited) for the 26
weeks ended 4 August 2007 13 weeks 13 weeks 26 weeks 26 weeks 53
weeks ended ended ended ended ended 4 29 4 29 3 August July August
July February 2007 2006 2007 2006 2007 $m $m $m $m $m Cash flows
from operating activities: Profit before tax 58.2 51.9 109.0 105.6
400.8 Adjustments for: Finance income (2.7) (5.5) (6.1) (7.6)
(18.8) Finance expense 7.4 9.6 14.0 14.3 34.2 Depreciation of
property, plant and equipment 25.8 22.3 49.8 44.0 92.1 Amortisation
of intangible assets 1.1 0.6 2.3 1.1 2.4 Other non-cash movements
2.9 1.7 3.5 3.1 4.5 Loss on disposal of property, plant and
equipment - - - - 0.8 Operating cash flows before movement in
working capital 92.7 80.6 172.5 160.5 516.0 Decrease/(increase) in
inventories 43.6 18.2 (5.4) (10.5) (118.1) (Increase)/decrease in
trade and other receivables (13.3) (12.7) 59.7 52.1 (101.5)
(Decrease)/increase in payables and deferred income (13.1) (5.7)
(81.2) (41.1) 46.1 Cash generated from operations 109.9 80.4 145.6
161.0 342.5 Interest paid (13.1) (5.3) (13.6) (10.0) (31.4)
Taxation paid (35.8) (28.2) (75.3) (78.6) (130.1) Net cash from
operating activities 61.0 46.9 56.7 72.4 181.0 Investing
activities: Interest received 0.6 4.9 4.0 6.7 16.9 Purchase of
property, plant and equipment (27.8) (26.0) (51.9) (50.9) (116.9)
Purchase of intangible assets (2.0) (1.9) (6.2) (3.1) (7.5)
Proceeds from sale of property, plant and equipment - - - - 4.5
Cash flows from investing activities (29.2) (23.0) (54.1) (47.3)
(103.0) Financing activities: Dividends paid (107.6) (90.7) (107.6)
(90.7) (108.7) Proceeds from issue of shares 2.3 1.9 5.5 4.0 7.7
Purchase of own shares - (5.6) (29.0) (5.6) (63.4)
Increase/(decrease) in short-term borrowings 15.5 (48.3) 22.0 (7.7)
7.0 Repayment of long-term borrowings - - - - (251.0) Receipt of
new long-term borrowings - 380.0 - 380.0 380.0 Cash flows from
financing activities (89.8) 237.3 (109.1) 280.0 (28.4)
Reconciliation of movement in cash and cash equivalents: Cash and
cash equivalents at beginning of period 105.0 140.3 152.3 92.9 92.9
(Decrease)/increase in cash and cash equivalents (58.0) 261.2
(106.5) 305.1 49.6 Exchange adjustments 4.8 19.6 6.0 23.1 9.8
Closing cash and cash equivalents 51.8 421.1 51.8 421.1 152.3
Reconciliation of cash flows to movement in net debt:(1) Net debt
at beginning of period (286.2) (169.5) (233.2) (174.5) (174.5)
(Decrease)/increase in cash and cash equivalents (58.0) 261.2
(106.5) 305.1 49.6 (Increase)/decrease in borrowings (15.5) (331.7)
(22.0) (372.3) 136.0 Exchange adjustments 4.9 11.0 6.9 12.7 27.7
Closing net debt (354.8) (229.0) (354.8) (229.0) (233.2) (1) Net
debt represents cash and cash equivalents less borrowings due in
less than one year and borrowings due in more than one year.
Condensed consolidated statement of recognised income and expense
(unaudited) for the 26 weeks ended 4 August 2007 13 weeks 13 weeks
26 weeks 26 weeks 53 weeks ended ended ended ended ended 4 29 4 29
3 August July August July February 2007 2006 2007 2006 2007 $m $m
$m $m $m Exchange differences on translation of foreign operations
13.5 12.0 18.8 27.0 57.3 Effective portion of changes in value of
cash flow hedges (8.4) 1.4 (5.1) 3.1 1.7 Actuarial gain on
retirement benefit scheme - - - - 30.5 Tax on items recognised in
equity 2.5 - 2.0 - (10.3) Net income recognised directly in equity
7.6 13.4 15.7 30.1 79.2 Transfer to initial carrying value of
inventory from cash flow hedges (0.1) (0.7) (1.7) (2.2) 1.5 Profit
for the financial period 36.7 33.6 69.2 68.0 266.0 Total recognised
income and expense attributable to shareholders 44.2 46.3 83.2 95.9
346.7 Notes to the condensed consolidated financial statements
(unaudited) for the 26 weeks ended 4 August 2007 1. Basis of
preparation These results are presented in US dollars following the
change in the functional currency of the Company and the move to
reporting in US dollars with effect from 5 February 2007. This
condensed set of financial statements has been prepared in
accordance with the requirements of IAS 34 'Interim Financial
Reporting' as adopted by the EU. As required by the Disclosure and
Transparency Rules ("the DTR") of the UK's Financial Services
Authority ("the UK FSA"), the condensed set of financial statements
has been prepared applying the accounting policies and presentation
that were applied in the preparation of the Company's published
consolidated financial statements for the 53 week period ended 3
February 2007, which are prepared in accordance with IFRS as
adopted by the EU. These interim financial statements are unaudited
and do not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The comparative figures for
the 53 weeks ended 3 February 2007 are not the Company's statutory
accounts for that period. Those accounts have been reported on by
the Company's auditors and have been delivered to the Registrar of
Companies. The report of the auditors was (i) unqualified, (ii) did
not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and
(iii) did not contain a statement under section 237(2) or (3) of
the Companies Act 1985. 2. Segment information 13 weeks 13 weeks 26
weeks 26 weeks 53 weeks ended ended ended ended ended 4 29 4 29 3
August July August July February 2007 2006 2007 2006 2007 $m $m $m
$m $m Sales by origin and destination UK, Channel Islands &
Republic of Ireland 202.8 176.3 384.9 336.1 907.1 US 584.6 556.6
1,216.9 1,131.1 2,652.1 787.4 732.9 1,601.8 1,467.2 3,559.2
Operating (loss)/profit UK, Channel Islands & Republic of
Ireland - Trading 1.3 (3.4) (0.6) (6.2) 103.4 - Group central costs
(4.8) (3.0) (8.8) (6.6) (13.9) (3.5) (6.4) (9.4) (12.8) 89.5 US
66.4 62.4 126.3 125.1 326.7 62.9 56.0 116.9 112.3 416.2 The Group's
results derive from one business segment - the retailing of
jewellery, watches and associated services. 3. Net financing costs
13 weeks 13 weeks 26 weeks 26 weeks 53 weeks ended ended ended
ended ended 4 29 4 29 3 August July August July February 2007 2006
2007 2006 2007 $m $m $m $m $m Interest receivable 1.6 5.0 4.0 6.7
16.6 Defined benefit pension scheme: - expected return on scheme
assets 4.4 3.7 8.6 7.0 14.8 - interest on pension liabilities (3.3)
(3.2) (6.5) (6.1) (12.6) Finance income 2.7 5.5 6.1 7.6 18.8
Finance expense (7.4) (9.6) (14.0) (14.3) (34.2) (4.7) (4.1) (7.9)
(6.7) (15.4) Notes to the condensed consolidated financial
statements (unaudited) for the 26 weeks ended 4 August 2007 4.
Taxation The net taxation charges in the income statements for the
13 weeks and 26 weeks ended 4 August 2007 have been based on the
anticipated effective taxation rate for the 52 weeks ending 2
February 2008. 5. Translation differences The exchange rates used
for the translation of UK pound sterling transactions and balances
in these interim statements are as follows: 4 August 29 July 3
February 2007 2006 2007 Income statement (average rate) 1.99 1.81
1.88 Balance sheet (closing rate) 2.04 1.86 1.97 The effect of
restating the balance sheet at 29 July 2006 to the exchange rates
ruling at 4 August 2007 would be to decrease net debt by $15.2
million to $(213.8) million. Restating the income statement would
decrease the pre-tax profit for the 26 weeks ended 29 July 2006 by
$(0.6) million to $105.0 million. 6. Earnings per share 13 weeks 13
weeks 26 weeks 26 weeks 53 weeks ended ended ended ended ended 4 29
4 29 3 August July August July February 2007 2006 2007 2006 2007 $m
$m $m $m $m Profit attributable to shareholders 36.7 33.6 69.2 68.0
266.0 Weighted average number of shares in issue (million) 1,702.4
1,740.3 1,703.0 1,739.8 1,727.6 Dilutive effect of share options
(million) 7.7 1.7 9.4 2.4 6.8 Diluted weighted average number of
shares (million) 1,710.1 1,742.0 1,712.4 1,742.2 1,734.4 Earnings
per share - basic 2.2c 1.9c 4.1c 3.9c 15.4c - diluted 2.1c 1.9c
4.0c 3.9c 15.3c Earnings per ADS - basic 21.5c 19.2c 40.6c 39.0c
154.0c - diluted 21.4c 19.2c 40.4c 39.0c 153.4c Notes to the
condensed consolidated financial statements (unaudited) for the 26
weeks ended 4 August 2007 7. Share capital 4 August 29 July 3
February 2007 2006 2007 $m $m $m Authorised: 5,929,874,019 ordinary
shares of 0.5p each - 48.6 48.6 5,929,874,019 ordinary shares of
0.9c each 53.4 - - 50,000 deferred shares of 1 pound each 0.1 - -
Number of shares $m Allotted, called up and fully paid: Ordinary
shares of 0.5p each: At 3 February 2007 1,713,553,809 14.0 Change
in functional currency - 1.4 Capital reduction on 5 February 2007
(1,713,553,809) (15.4) nil nil Ordinary shares of 0.9c each: Issued
on 5 February 2007 1,713,553,809 15.4 Share buyback (12,205,000)
(0.1) Shares issued on exercise of share options 3,991,095 - At 4
August 2007 total allotted, called up and fully paid 1,705,339,904
15.3 Deferred shares of 1 pound each on issue and at 4 August 2007
50,000 0.1 Total share capital 1,705,389,904 15.4 On 5 February
2007, the Company redenominated its share capital into US dollars
by way of a reduction in capital and subsequent issue and allotment
of new US dollar ordinary shares, which had been approved by
shareholders on 12 December 2006 and received Court approval on 31
January 2007. The nominal value of each US dollar denominated
ordinary share is 0.9 cent and shareholders received one new US
dollar denominated ordinary share for each sterling ordinary share
held. The new shares have the same rights and restrictions as the
previously issued ordinary shares and the existing share
certificates remain valid. Additionally, to comply with the
Companies Act 1985, 50,000 pounds of share capital is required to
be denominated in pounds sterling, to which end 50,000 deferred
shares of 1 pound each were allotted and issued and credited to the
Company Secretary of the Company on 5 February 2007. These shares
have limited and deferred rights. Notes to the condensed
consolidated financial statements (unaudited) for the 26 weeks
ended 4 August 2007 8. Share premium and reserves 26 weeks ended 4
August 2007 Other reserves Retained earnings Share Capital Special
Purchase Trans- Retained pre- redemp- re- of own Hedging lation re-
mium tion serves shares reserve reserve serves Total $m $m $m $m $m
$m $m $m Balance at 3 February 2007 134.7 0.3 234.8 (13.3) 5.1 10.1
1,360.3 1,732.0 Change in functional currency (1.4) - - - - - -
(1.4) 133.3 0.3 234.8 (13.3) 5.1 10.1 1,360.3 1,730.6 Recognised
income and expense: - profit for the financial period - - - - - -
69.2 69.2 - cashflow hedges (net) - - - - (4.8) - - (4.8) -
translation differences - - - - - 18.8 - 18.8 Dividends - - - - - -
(107.6) (107.6) Equity-settled transactions - - - - - - 4.0 4.0
Share options exercised 5.1 - - 1.9 - - (1.5) 5.5 Purchase of own
shares - 0.1 - - - - (29.0) (28.9) Balance at 4 August 2007 138.4
0.4 234.8 (11.4) 0.3 28.9 1,295.4 1,686.8 26 weeks ended 29 July
2006 Other reserves Retained earnings Share Capital Special
Purchase Trans- Retained pre- redemp- re- of own Hedging lation re-
mium tion serves shares reserve reserve serves Total $m $m $m $m $m
$m $m $m Balance at 28 January 2006 124.8 - 234.8 (15.4) 2.8 (47.2)
1,241.5 1,541.3 Recognised income and expense: - profit for the
financial period - - - - - - 68.0 68.0 - cashflow hedges (net) - -
- - 0.9 - - 0.9 - translation differences - - - - - 27.0 - 27.0
Dividends - - - - - - (90.7) (90.7) Equity-settled transactions - -
- - - - 3.4 3.4 Share options exercised 3.6 - - 0.4 - - - 4.0
Purchase of own shares - - - - - - (5.6) (5.6) Balance at 29 July
2006 128.4 - 234.8 (15.0) 3.7 (20.2) 1,216.6 1,548.3 53 weeks ended
3 February 2007 Other reserves Retained earnings Share Capital
Special Purchase Trans- Retained pre- redemp- re- of own Hedging
lation re- mium tion serves shares reserve reserve serves Total $m
$m $m $m $m $m $m $m Balance at 28 January 2006 124.8 - 234.8
(15.4) 2.8 (47.2) 1,241.5 1,541.3 Recognised income and expense: -
profit for the financial period - - - - - - 266.0 266.0 - cashflow
hedges (net) - - - - 2.3 - - 2.3 - translation differences - - - -
- 57.3 - 57.3 - actuarial gain - - - - - - 21.1 21.1 Dividends - -
- - - - (108.7) (108.7) Equity-settled transactions - - - - - - 8.1
8.1 Share options exercised 8.6 - - 2.1 - - (3.0) 7.7 Purchase of
own shares - 0.3 - - - - (63.4) (63.1) Shares issued to ESOTs 1.3 -
- - - - (1.3) - Balance at 3 February 2007 134.7 0.3 234.8 (13.3)
5.1 10.1 1,360.3 1,732.0 Notes to the condensed consolidated
financial statements (unaudited) for the 26 weeks ended 4 August
2007 9. Dividend The increase in dividend per share is derived
using the US dollar to pound sterling rate from Reuters at 4.00pm
on 3 September 2007. A dividend of 0.96 cent per share will be paid
on 9 November 2007 to shareholders on the register of members at
the close of business on 28 September 2007. The US dollar to pound
sterling rate used to convert the 0.96 cent dividend per share for
payment to shareholders who elect to receive a pound sterling
dividend will be the rate as derived from Reuters at 4.00pm on the
record date of 28 September 2007. Shareholders wishing to change
the currency in which they receive the dividend should contact the
Company's registrars. 10. Impact of constant exchange rates The
Group has historically used constant exchange rates to compare
period-to-period changes in certain financial data. This is
referred to as 'at constant exchange rates' throughout this
release. The Group considers this a useful measure for analysing
and explaining changes and trends in the Group's results. The
impact of the re-calculation of sales, operating profit, profit
before tax and net debt at constant exchange rates, including a
reconciliation to the Group's GAAP results, is analysed below. 26
weeks ended 4 August 2007 26 26 Impact At Growth weeks weeks Growth
of constant at ended ended at exchange exchange constant 4 29
actual rate rates exchange August July exchange move (non- rates
2007 2006 rates ment GAAP)(non-GAAP) $m $m % $m $m % Sales by
origin and destination UK, Channel Islands & Republic of
Ireland 384.9 336.1 14.5 33.4 369.5 4.2 US 1,216.9 1,131.1 7.6 -
1,131.1 7.6 1,601.8 1,467.2 9.2 33.4 1,500.6 6.7 Operating (loss)/
profit UK, Channel Islands & Republic of Ireland - Trading
(0.6) (6.2) n/a (0.6) (6.8) n/a - Group central costs (8.8) (6.6)
n/a (0.7) (7.3) n/a (9.4) (12.8) n/a (1.3) (14.1) n/a US 126.3
125.1 1.0 - 125.1 1.0 116.9 112.3 4.1 (1.3) 111.0 5.3 Profit before
tax 109.0 105.6 3.2 (0.6) 105.0 3.8 At 4 August 2007 Impact of
exchange At constant 4 August 29 July rate exchange rates 2007 2006
movement (non-GAAP) $m $m $m $m Net debt (354.8) (229.0) 15.2
(213.8) Responsibility statement of the directors in respect of the
half year report We confirm that to the best of our knowledge: --
the condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by
the EU; -- the interim management report includes a fair review of
the information required by: (a) DTR 4.2.7R of the Disclosure and
Transparency Rules, being an indication of important events that
have occurred during the first six months of the financial year and
their impact on the condensed set of financial statements; and a
description of the principal risks and uncertainties for the
remaining six months of the year; and (b) DTR 4.2.8R of the
Disclosure and Transparency Rules, being related party transactions
that have taken place in the first six months of the current
financial year and that have materially affected the financial
position or performance of the entity during that period; and any
changes in the related party transactions described in the last
annual report that could do so. Terry Burman Group Chief Executive
Walker Boyd Group Finance Director 5 September 2007 Independent
review report by KPMG Audit Plc to Signet Group plc Introduction We
have been instructed by the Company to review the condensed set of
financial statements in the half year report for the 26 weeks ended
4 August 2007 which comprises the condensed consolidated income
statement, the condensed consolidated balance sheet, the condensed
consolidated cash flow statement, the condensed consolidated
statement of recognised income and expense and the related
explanatory notes. We have read the other information contained in
the half year report and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements. This
report is made solely to the Company in accordance with the terms
of our engagement to assist the Company in meeting the requirements
of the Disclosure and Transparency Rules ("the DTR") of the UK's
Financial Services Authority ("the UK FSA"). Our review has been
undertaken so that we might state to the Company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company for our
review work, for this report, or for the conclusions we have
reached. Directors' responsibilities The half year report is the
responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the half year report in
accordance with the DTR of the UK FSA. As disclosed in note 1, the
annual financial statements of the Company are prepared in
accordance with IFRS as adopted by the EU. The condensed set of
financial statements included in this half year report has been
prepared in accordance with IAS 34 'Interim Financial Reporting' as
adopted by the EU. Our responsibility Our responsibility is to
express to the Company a conclusion on the condensed set of
financial statements in the half year report based on our review.
Review work performed We conducted our review in accordance with
guidance contained in Bulletin 1999/4 'Review of interim financial
information' issued by the Auditing Practices Board for use in the
UK. A review consists principally of making enquiries of management
and applying analytical procedures to the interim financial
information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have
been consistently applied unless otherwise disclosed. A review
excludes audit procedures such as tests of controls and
verification of assets, liabilities and transactions. It is
substantially less in scope than an audit performed in accordance
with International Standards on Auditing (UK and Ireland) and
therefore provides a lower level of assurance than an audit.
Accordingly, we do not express an audit opinion on the interim
financial information. Review conclusion On the basis of our review
we are not aware of any material modifications that should be made
to the condensed set of financial statements in the half year
report as presented for the 26 weeks ended 4 August 2007. KPMG
Audit Plc Chartered Accountants London UK 5 September 2007
DATASOURCE: Signet Group plc CONTACT: Terry Burman, Group Chief
Executive, +44 (0) 20 7317 9700; Walker Boyd, Group Finance
Director, +44 (0) 20 7317 9700; Susan Gilchrist, Brunswick, +44 (0)
20 7404 5959; Pamela Small, Brunswick, +44 (0) 20 7404 5959 Web
site: http://www.signetgroupplc.com/
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