Final Results
June 11 2001 - 3:00AM
UK Regulatory
RNS Number:9959E
Mulberry Group PLC
11 June 2001
MULBERRY GROUP PLC
11 JUNE 2001
Mulberry Group plc
Preliminary Results for the Year to 31 March 2001
HIGHLIGHTS
- Return to profitability - pre-tax profit #0.3 million;
- The business is expanding in line with expectations;
- Sales remain strong;
- Order books continue to grow (Ladies Ready to Wear up 30%);
- New generation look for Bond St flagship store for Autumn 2001;
- High profile launch of new menswear collection at Pitti Uomo, Italy;
- Expansion into US on track for 2002.
Roger Saul commented
"I am delighted to be back in profit. This has been driven by strong growth
in our core accessory business. Our investment in design and image is
progressing well and this Autumn will see an important next step with a new
marketing campaign and the reopening of our 3 floor flagship store in Bond
Street."
Contacts:
WMC Communications
David Wynne-Morgan/James Chandler 020 7591 3999
Teather & Greenwood Limited
Mark Taylor 020 7426 9000
CHAIRMAN AND CHIEF EXECUTIVE'S REVIEW
I am pleased to report that Mulberry has returned to profit for the year and
that the improved trading performance announced in my interim report in
January, has continued in the second half.
Sales for the year were #25.7 million, compared with #26.4 million in 2000.
Underlying sales increased by #1.8 million when the 1999 sales of home
products, which were licensed in August 1999, are eliminated. Gross profit
for the year increased by #0.4 million with the gross profit margin increasing
from 50.9% to 53.7%. The result for the year is an operating profit of #0.67
million compared to a loss of #0.05 million in 2000. Profit before taxation
was #0.3 million compared to a loss of #0.7 million for the previous year.
Net borrowings reduced by #6.9 million to #0.8 million. As reported in my
interim statement, we completed the share subscription in September 2000,
which has greatly strengthened our balance sheet.
CURRENT TRADING AND OUTLOOK
The latest accessories order book for autumn/winter 2001 continues to show the
pattern of growth achieved over the last two seasons. The first full
collection from the new women's Ready to Wear (RTW) design team will reach the
shops this autumn, with the order book showing strong growth of 30% compared
with the prior year.
For the first seven weeks of the new financial year, sales, on a like for like
basis, in our full price shops in the UK have been running 4% higher than in
2000 despite the reduction in tourists resulting from the Foot and Mouth
epidemic. Demand from our UK customers remains very strong.
STRATEGY
We have re-established robust growth through investment in design, sales and
marketing of accessories which is our core product area. We are confident
that this growth will continue.
Meanwhile, we are continuing to focus our sales and marketing effort on the UK
while putting increased resources into Scandinavia and Northern Europe to
build on our existing business in those markets.
Our investment in RTW management and design continues and we will launch the
first full menswear collection, from the new design team, for spring/summer
2002 at Pitti Uomo, the major menswear exhibition in Florence.
We have undertaken a full review of the brand image and presentation with the
leading design consultancy Four IV and have, with them, completed the design
and styling of the next generation of Mulberry retail stores. The first to be
seen by the general public will be our flagship store in Bond Street which we
have just closed for a comprehensive refit and plan to re-open in late autumn
2001. The cost will be in the region of #2 million. Despite this we expect to
deliver an improved trading performance for the full year.
The investment in the new RTW collections and the refit of Bond Street mark
significant steps forward in our strategy to unlock the value in the Mulberry
brand. Following the completion of Bond Street, the new image will be
implemented in all of our outlets over the next two years.
UNITED STATES
The initial review of the USA has been completed with our US partners.
Locations for the first flagship store in New York are being reviewed. The New
York store will follow the re-opening of Bond Street and is planned for autumn
2002 subject to an appropriate site being found.
HOME
The home license with Kravet has continued successfully and we are
experiencing strong growth in the spring/summer 2001 season.
STAFF
I would like to thank both the Directors and staff who have worked tirelessly
and with good humour through a period of substantial change. Their belief in
the brand and the company's ability to succeed has been essential in
developing and growing the business.
DIVIDEND
The Board is not recommending the payment of a dividend on the ordinary
shares.
Roger Saul
Chairman and Chief Executive
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2001
2001 2000
#'000 #'000
TURNOVER 25,723 26,390
Cost of sales (11,904) (12,945)
--------- ---------
GROSS PROFIT 13,819 13,445
Other operating expenses (net) (13,149) (13,492)
--------- ---------
OPERATING PROFIT/(LOSS) 670 (47)
Group share of profit of associated undertakings 27 16
Finance charges (394) (635)
--------- ---------
Profit/(Loss) on ordinary activities before taxation 303 (666)
Tax on profit/(loss) on ordinary activities (2) (14)
--------- ---------
PROFIT/(LOSS)ON ORDINARY ACTIVITIES AFTER TAXATION 301 (680)
Preference dividends proposed (111) -
--------- ---------
PROFIT/(LOSS) FOR THE YEAR TRANSFERRED TO/(FROM) RESERVES 190 (680)
========= =========
Earnings/(Loss) per share - basic & diluted 0.65p (3.24p)
Dividend per ordinary share Nil pence Nil pence
CONSOLIDATED BALANCE SHEET
31 March 2001
2001 2000
#'000 #'000
FIXED ASSETS 5,091 5,522
CURRENT ASSETS
Stocks 7,378 6,278
Debtors 3,923 3,628
Cash at bank 332 212
--------- ---------
11,633 10,118
CREDITORS: Amounts falling due within one year (4,771) (11,679)
--------- ---------
NET CURRENT ASSETS/(LIABILITIES) 6,862 (1,561)
--------- ---------
TOTAL ASSETS LESS CURRENT LIABILITIES 11,953 3,961
CREDITORS: Amounts falling due after more than one year (1,036) (88)
--------- ---------
NET ASSETS 10,917 3,873
--------- ---------
CAPITAL AND RESERVES
Called-up share capital 2,457 1,299
Reserves 8,460 2,574
--------- ---------
SHAREHOLDERS' FUNDS 10,917 3,873
--------- ---------
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2001
2001 2000
#'000 #'000
Operating profit/(loss) 670 (47)
Depreciation charge 756 845
Loss/(Profit) on sale of tangible fixed assets 15 (14)
(Increase)/Decrease in stocks (1,100) 118
(Increase)/Decrease in debtors (295) 1,233
Increase/(Decrease) in creditors 698 (261)
Effect of foreign exchange rate changes 40 (132)
--------- ---------
NET CASH INFLOW FROM OPERATIONS 784 1,742
Returns on investment and servicing of finance (394) (644)
Taxation (2) (19)
Capital expenditure (328) (117)
Dividends paid - -
--------- ---------
NET CASH INFLOW BEFORE FINANCING 60 962
Financing 4,111 (554)
--------- ---------
INCREASE IN CASH IN THE YEAR 4,171 408
--------- ---------
RECONCILIATION OF NET CASH FLOW TO
MOVEMENT IN NET DEBT
Increase in cash in the year 4,171 408
Cash outflow from decrease in debt
and lease financing 2,743 804
--------- ---------
6,914 1,212
Inception of finance leases (24) (30)
--------- ---------
Movement in net debt 6,890 1,182
NET DEBT, BEGINNING OF YEAR (7,665) (8,847)
--------- ---------
NET DEBT, END OF YEAR (775) (7,665)
--------- ---------
NOTES
1. The financial information set out above does not constitute the
Company's statutory accounts. Statutory accounts for the year ended 31
March 2000 have been filed with the Registrar of Companies. The statutory
accounts for the year ended 31 March 2001 will be filed at Companies House
upon receiving the approval of the Annual General Meeting. The auditors
have reported on the accounts for the year ended 31 March 2000 and their
report was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985.
2. The results contained in this report, which have not been audited have
been prepared using accounting policies consistent with those used in the
preparation of the Annual Report and Accounts for the year ended 31 March
2000.
3. Basic and diluted earnings per ordinary share has been calculated by
dividing the profit/(loss) on ordinary activities after taxation and
dividends on non-equity shares for each financial year by 29,380,490
(2000: 20,975,943) ordinary shares, being the weighted average number of
ordinary shares in issue during the year.
4. Copies of the Annual Report and Accounts will be posted to shareholders.
Further copies can be obtained from Mulberry Group plc's registered office
at Kilver Court, Shepton Mallet, Bath, BA4 5NF.
5. The Annual General Meeting will be held at Mulberry Group plc's
registered office, Kilver Court, Shepton Mallet, Bath, BA4 5NF on 2 August
2001.
Copies of this announcement are available for a period of 14 days from the
date hereof from the Company's registered office, Kilver Court, Shepton
Mallet, Bath, BA4 5NF and from the Company's nominated adviser, Teather &
Greenwood Limited, Beaufort House, 15 St. Botolph Street, London, EC3A 7QR.
END
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