Mulberry Group PLC Half Yearly Report -4-

The Group has considerable financial resources together with a customer base split across different geographic areas and between directly operated stores, partner stores and wholesale accounts. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current facilities. In addition, during June 2014, the Group arranged a GBP7.5 million revolving credit facility to provide additional headroom in available funds. This facility will be in place for a period of two years from the date of first draw down. The first draw down was made in October 2014. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the uncertain economic outlook.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the half year results.

   4.          Taxation

The tax credit/(charge) is calculated by applying the forecast full year effective tax rate to the interim loss.

   5.          Dividend 
 
                                             Six months   Six months     Year ended 
                                           30 Sept 2014      30 Sept    31 Mar 2014 
                                                GBP'000         2013        GBP'000 
                                                             GBP'000 
 
 Dividend of 5p per ordinary 
  share (2013: 5p) paid during 
  the period relating to the previous 
  year's results                                  2,966        2,932          2,932 
                                         ==============  ===========  ============= 
 
   6.          Earnings per share ('EPS') 
 
                                        Six months   Six months     Year ended 
                                      30 Sept 2014      30 Sept    31 Mar 2014 
                                                           2013 
 
 Basic (loss)/earnings per share            (0.7p)         8.7p          14.5p 
 Diluted (loss)/earnings per 
  share                                     (0.7p)         8.6p          14.3p

Earnings per share is calculated based on the following data:

 
 
                                        Six months   Six months     Year ended 
                                      30 Sept 2014      30 Sept    31 Mar 2014 
                                           GBP'000         2013        GBP'000 
                                                        GBP'000 
 
 (Loss)/profit for the period 
  for basic and diluted earnings 
  per share                                  (410)        5,077          8,602 
                                    ==============  ===========  ============= 
 
 
                                         30 Sept 2014    30 Sept   31 Mar 2014 
                                              Million       2013       Million 
                                                         Million 
 
 Weighted average number of ordinary 
  shares for the purpose of basic 
  EPS                                            59.3       58.6          59.4 
 Effect of dilutive potential 
  ordinary shares: share options                  0.6        0.3           0.8 
 
 Weighted average number of ordinary 
  shares for the purpose of diluted 
  EPS                                            59.9       58.9          60.2 
                                        =============  =========  ============ 
 
   7.          Acquisitions

On 20 June 2014, the Company completed an agreement entered into on 19 November 2013, to purchase all of the shares of KJ Saint Honoré SA, a company registered in France. This company owns the rights to a lease for a store on Rue Saint-Honoré Paris where a flagship store is due to open during April 2015. This was accounted for as an acquisition under IFRS 3 'Business Combinations'. The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out in the table below:

 
                                 Fair value 
                                    GBP'000 
 
 Trade and other receivables            134 
 Cash                                    12 
 Trade and other payables             (311) 
 
 Total identifiable assets            (165) 
 
 Goodwill                             7,448 
 
 Total cash consideration             7,283 
                                ===========

The goodwill relates to the underlying value inherent in the lease held by KJ Saint Honoré SA. This will be carried forward in the balance sheet and subject to annual impairment review.

The acquisition costs which are included in administrative expenses amounted to GBP50,000 in the current period and GBP25,000 in the prior year.

The acquisition of the entity added GBP111,000 of operating expenses to the Group for the period to 30 September 2014. If the acquisition had occurred at the start of the period it would have added GBP222,000 of operating expenses.

The investing section of the consolidated cash flow statement for the period to 30 September 2014 includes GBP7,271,000 relating to the acquisition (being cash paid of GBP7,283,000 less cash in the subsidiary at the date of acquisition of GBP12,000).

This information is provided by RNS

The company news service from the London Stock Exchange

END

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