BRDH Burani

RNS Number:7426E
Burani Designer Holding N.V.
28 September 2007



28 September 2007



             RESULTS ANNOUNCEMENT FOR SIX MONTHS ENDED 30 JUNE 2007



Burani Designer Holding N.V. (LSE AIM: BRDH), a company offering Italian
lifestyle products and services to customers world-wide, announces a 20.5%
increase in revenues net of extraordinary items for the first half 2007.





*           Consolidated revenues of Euro382 million compared to Euro361.6 million for
first half of 2006 which was strongly influenced by the capital gain  realised
on the IPO of Antichi Pellettieri.  Revenue growth, net of extraordinary items,
of 20.5%;

*         EBITDA of Euro60.2 million vs. Euro87.9 million for the first half 2006;
EBITDA growth, net of extraordinary items, of 19.8%;

*         EBIT of Euro47.9 million vs. Euro75.2 million for the first half 2006; EBIT
growth, net of extraordinary items, of 31.2%;

*         Pre-tax income equal to Euro34.6 million vs. Euro63.9 million for the first
half of 2006; pre-tax income growth, net of extraordinary items, of 41.6%;

*           Net financial position amounted to Euro91.9 million, an improvement
compared to the net financial position at December 31st 2006, benefiting from
the June 2007 IPO and reflecting a debt/equity ratio of 0.18.



The consolidated financial statements include only two months of financial
results for the companies acquired during the period (Arcte, Crisfer,
Eurocosmesi).



Highlights





*       BDH Group set up to operate in complementary segments of the Italian
lifestyle market



*       BDH established three strategic operating divisions to complement the
operations of  Mariella Burani  Fashion Group (MBFG) including:



-          Beachwear / Underwear with the acquisition of Arcte and Crisfer

-          Perfumes / Skin Care with the acquisition of Eurocosmesi, and

-          Italian Fine Foods with the acquisition of Granulati Italia (July
2007)





*       MBFG continued to expand its Leather goods and Fashion Jewellery
divisions, both characterised by increasingly attractive growth rates and
margins:



-          Three jewellery businesses acquired - Rosato, Valente and Calgaro

-          Joint venture agreement reached with DAMAS, a leading international
jewellery retailer

-          Licensing agreement entered into with  Aquascutum and Gherardini



*       Strategic development initiatives actively pursued by the newly
established  divisions,  including:



-          New licenses for the production and distribution of renowned third
party brands

-          Domestic and international expansion of Transvital skin care products

-          Retail network development, including the inauguration of a Fisico
flagship store in Milan, Via Montenapoleone.





*       Successful listing on London's AIM market raising Euro130m; offer 3x
oversubscribed.  Proceeds will be used to finance the expansion of the BDH Group
through selective acquisitions.





Kevin Tempestini, Chief Executive Officer, commented:



"A solid platform has been laid down during the first half of this year for the
development of a diversified accessible luxury Group offering Italian lifestyle
products and services to customers world-wide.  The first half  financial
accounts are encouraging, notwithstanding the fact that they incorporate one
time costs related to the IPO, and only two months of operating results of the
newly acquired companies.  First half results are indicative of the direction
this Group will take and the dynamic pace at which our strategies will be
implemented to create value for our shareholders. Current trading is buoyant and
I am confident that we will meet full year expectations."



BDH's 2007 Interim report is available on the Company's website www.buranidh.com



Enquiries:


Burani Designer Holding N.V

Investor Relations & Strategic Development                            Corporate Communications
Carol Brumer                                                          Daniela Zari
Tel: +39-(0)2-76420111                                                Tel: +39-(0)2-76015354
Fax: +39-(0)2-781480                                                  Fax: +39-(0)2)76009545
e-mail: cbrumer@mariellaburani.com                                    e-mail: dzari@mariellaburani.com


Citigate Dewe Rogerson                                                Tel: +44 207 638 9571
Kate Delahunty/Lindsay Noton

www.buranidh.com



NOTES TO EDITORS



The BDH Group offers a complementary range of Italian lifestyle products and
services to an international customer base.  BDH operates in the fashion
apparel, leather goods and fashion jewellery businesses through its majority
owned subsidiary, Mariella Burani Fashion Group S.p.A. (MBFG), and beachwear,
underwear and cosmetics through subsidiaries Arcte, Crisfer and Eurocosmesi. BDH
recently extended the group's reach into the internationally acclaimed Italian
fine foods business through its acquisition of a controlling interest in
Granulati Italia SpA.  BDH's business model focuses on the acquisition and
integration of quality "Italian lifestyle" businesses to create operating
divisions able to benefit from scale and synergies between BDH Group companies.
BDH intends to extend this business model, successfully implemented by MBFG over
the past seven years, to a select range of distinct, yet complementary, segments
within the accessible luxury goods market.




BUSINESS REVIEW



The Group has entered the beachwear, underwear and cosmetics segments through
its recently acquired operating subsidiaries Arcte, Crisfer and Eurocosmesi. The
Group plans to develop its beachwear, underwear and cosmetics operations by
utilising the business model applied by the Burani Family in the development of
MBFG and Antichi Pellettieri. In particular, management expects to expand each
of the new acquisition's distribution network with a particular focus on
emerging markets.

The key operating divisions are reviewed below.

Apparel, Leather and Jewellery (MBFG)



During the first half of the year BDH's subsidiary Mariella Burani Fashion Group
continued to expand its Leather Goods and Fashion Jewellery divisions, both
characterised by higher growth rates and margins.

Key events during the period include:



*         Joint Venture with DAMAS Jewellery, a leading international jewellery
retailer, for the acquisition and development of complementary jewellery
businesses. DAMAS Jewellery will provide logistics, distribution and marketing
support to the Group's brands thanks to its extensive experience and
well-established presence in emerging markets world-wide;



*         Antichi Pellettieri and Francesco Biasia signed a multi-year licensing
agreement with Aquascutum, a renowned British brand synonymous with British
luxury, to produce and distribute Aquascutum handbag, accessory, and footwear
collections world-wide;



*         Mariella Burani Fashion Group sold its Multibrand Retail division,
which comprised 100% of the equity of Revedi Spa, Revedi Sa, Bernie's AG and Don
Gil GmbH to Abacus Invest, a private equity fund operating in the apparel
industry;



*         MBFG opened a total of 18 boutiques in the first half of 2007,
including 6 Directly Operated     Stores (DOS) and 12 franchising stores.  The
retail network of MBFG at June 30, 2007 includes 223 mono-brand boutiques (78
DOS & 145 franchisees).



Beachwear / Underwear division:



This division was set up following the acquisitions of Arcte and Crisfer.

Key events during the period include:



*         New license agreements signed for the creation, production and
international distribution of two international brands for beachwear and
underwear collections;



*         Focus on the Group's own brand portfolio with increased investment in
communications and  advertising campaigns;



*         Further extension of the Fisico brand with the launch of the Jogging
Couture "JC" collection



*         Flagship boutique for Fisico inaugurated in Milan.



Perfumes / Skin Care division:



This division was set up following the acquisition of Eurocosmesi.

Key events during the period include:



*         Launches of Transvital Hydra All Around Body Cream and Smoother and
Transvital White Light skin care lines;



*         Extension of existing licenses with the introduction of new perfume
collections for Canali, Byblos and Mila Schon;



*         International market expansion with the introduction of Transvital
lines in Hong Kong, Turkey and Moscow.





FINANCIAL REVIEW



Consolidated revenues for the first half 2007 increased to Euro382 million compared
to Euro361.6 million for the same period of 2006.

Net revenue growth was driven by the strong performance of:

*         Leather goods division (Antichi Pellettieri) with realised revenue
growth of 23.2% during the first half 2007;

*         Emerging luxury markets growth of 41.4% during the first half driven
by Eastern Europe (38.2%) and Russia (53.8%);

*         The Italian market driven by the collections of Biasia, Braccialini e
Baldinini;

and as a result of the first time consolidation of the Fashion Jewellery
division, net of the impact of the sale of the knitwear division and the
Multibrand Retail division.

The new acquisitions (Arcte, Crisfer, Eurocosmesi) have been consolidated only
for two months.

EBITDA reached Euro60.2 million vs. Euro87.9 million for the first half 2006; net of
extraordinary income and costs of Antichi Pellettieri IPO, the EBITDA growth is
19.8%. Improved EBITDA margins are primarily attributable to operating leverage
and economies of scale in the Leather goods division, further rationalisation in
the Apparel division, and an improved sales mix for the BDH Group.

EBIT equal to Euro47.9 million vs. Euro75.2 million for the first half 2006; EBIT
growth, net of extraordinary items, is 31.2%.

Net financial position amounted to Euro91.9 million, an improvement compared to the
net financial position at December 31st 2006 benefiting from the June 2007 IPO
and reflecting a debt/equity ratio of 0.18.



CURRENT TRADING AND OUTLOOK

Braccialini, subsidiary of Antichi Pellettieri, acquired Dadorosa Srl, on July,
2007.  Dadorosa holds the world-wide license for the production and distribution
of handbags and accessories of the renowned Italian brand Gherardini. The
company manages 3 monobrand boutiques in Milan, Rome and Florence.

In July 2007, BDH established its Italian Fine Foods division with the
acquisition of 51% controlling interest in Granulati Italia SpA, a leading
manufacturer and distributor of high quality instant products for fine foods
based in Bergamo, Italy.  The acquisition is the first step in the Group's
strategy to extend its reach into the internationally acclaimed Italian fine
foods business.

BDH purchased 233,887 ordinary shares in the Company between the dates of 7
August 2007 and 3 September 2007 at an average price of Euro 7.59. All of the
purchased shares are being held in treasury to satisfy awards to executive
directors and certain employees of the Company under the BDH Free Shares Plan as
described in the Admission Document dated 15 June 2007.  The total number of
Ordinary Shares over which awards have been granted under the BDH Free Shares
Plan is 372,155.

505,735 shares of MBFG were acquired from 13 August 2007 to 21 September 2007
for a total consideration of Euro11.8 million, taking advantage of recent
weaknesses which have affected the financial markets.

Trading since the period end has been buoyant.  The current year is expected to
reflect further growth as a function of the positive results of the Autumn/
Winter 2007-2008 sales campaigns, new product introductions, the further
expansion of our retail network, and further strategic acquisitions. The Board
is confident of meeting full year market expectations.



Disclaimer



This Statement contains certain forward-looking statements that are subject to
risk factors and uncertainties associated with the fashion industry. Whilst the
Group believes the expectation reflected herein to be reasonably in light of the
information available to it at this time, the actual outcome may be materially
different owing to factors either beyond the Group's control or otherwise within
the Group's control but where, for example, the Group decides on a change of
plan or strategy. Accordingly, no reliance may be placed on the figures
contained in such forward looking statements. These half year figures and the
figures contained in this press release have not been subject to an audit by the
external auditors of the Company.



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related to RESULTS ANNOUNCEMENT FOR SIX MONTHS ENDED 30 JUNE 2007: 

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