TIDMMUL
RNS Number : 8346P
Mulberry Group PLC
11 June 2015
MULBERRY GROUP PLC ("Mulberry" or the "Group")
PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MARCH 2015
Mulberry Group plc, the English luxury brand, announces its
results for the year ended 31 March 2015.
GODFREY DAVIS, CHAIRMAN, COMMENTED:
"We have seen a positive uplift in sales since November as a
result of the actions we took at the beginning of the year. We have
focused on creating desirable new products across the entire
Mulberry range whilst continuing to invest for the longer term. Our
initiatives to re-engage with our customers have delivered
promising results.
Under the leadership of Thierry Andretta and the creative
direction of Johnny Coca, we look forward to the Mulberry brand
fulfilling its global potential."
THIERRY ANDRETTA, CHIEF EXECUTIVE OFFICER, COMMENTED:
"I am pleased that the strategy we approved as a Board last year
is beginning to bear fruit. We are committed to strengthening our
position in the UK whilst continuing to pursue our international
growth strategy. We are focused upon translating the luxury values
and Britishness of the Mulberry brand to a global audience."
FINANCIAL HIGHLIGHTS
-- Retail sales GBP109.9 million for the year (+1%); up 9% during H2 and down 9% during H1
-- Wholesale down 29% to GBP38.8 million, as expected
-- Total revenue down 9% to GBP148.7 million (2014: GBP163.5 million)
-- Adjusted* profit before tax of GBP4.5 million (2014: GBP17.4
million), ahead of expectations; profit before tax of GBP1.9
million (2014: GBP14.0 million)
-- Loss after tax of GBP1.4 million (2014: profit after tax of GBP8.6 million)
-- Adjusted* basic earnings per share of 2.1p (2014: 19.8p);
Basic loss per share of 2.3p (2014: basic earnings per share of
14.5p)
-- Proposed dividend of 5.0p per share (2014: 5.0p per share)
OPERATING HIGHLIGHTS
-- Positive uplift in Retail sales from November 2014 as a
result of new products and the actions taken at the beginning of H1
to realign the product pricing strategy
-- Roll-out of omni-channel services to full price standalone
stores in the UK. Digital sales up 15% to GBP18.0 million for the
year, accounting for 12% of Group sales (2014: 10%)
-- Opened four new directly-operated international stores and one concession
-- Approximately 50% of handbags now manufactured in the UK
CURRENT TRADING AND OUTLOOK
-- Total Retail sales for the 10 weeks to 6 June were up 17% (like-for-like +15%)
-- A Paris flagship store was opened during April which is trading encouragingly
-- Chief Executive Thierry Andretta joined on 7 April 2015
-- New Creative Director Johnny Coca joins on 8 July 2015
*Adjusted to add back exceptional items as shown in the Group's
Consolidated Income Statement below.
FOR FURTHER DETAILS PLEASE CONTACT:
Bell Pottinger
Daniel de Belder / Joanna Boon 07977 927142 / 020 3772 2499
Mulberry Investor Relations
Allegra Perry 020 7605 6795
Altium
Sam Fuller 020 7484 4037
Barclays
Marcus Jackson / Nicola Tennent 020 3134 8370
BUSINESS REVIEW
Total revenue for the year to 31 March 2015 was GBP148.7
million, down 9% from GBP163.5 million last year, reflecting a
small growth in Retail sales which was offset by a decline in
Wholesale sales. Retail trading improved significantly from
November 2014 following the successful introduction of the Spring
Summer 2015 collection which reflected the realigned product
pricing strategy. The benefit of this initiative has continued into
the new financial year.
Retail
Retail sales were up 9% during H2 and down 9% during H1, overall
increasing by 1% to a total of GBP109.9 million for the year (2014:
GBP109.0 million). Growth during the year was supported by new
store openings whilst like-for-like sales were down 2%.
-- UK Retail sales (excluding digital) were down 7%
(like-for-like -7%) for the year to GBP74.7 million (2014: GBP80.0
million);
-- International Retail sales (excluding digital) were up 28%
(like-for-like +2%) for the year to GBP17.2 million (2014: GBP13.5
million);
-- Digital sales were up 15% to GBP18.0 million for the year,
accounting for 12% of Group sales (2014: 10%); and
-- During the year, four new directly-operated stores were
opened in the USA and Germany, one concession was opened in France
and the Stansted Airport store was temporarily closed due to the
redevelopment of the terminal. There were 70 directly-operated
stores as of 31 March 2015 (2014: 66 stores).
Wholesale
As previously reported, the Wholesale business was down 29% to
GBP38.8 million (2014: GBP54.5 million) and is expected to
stabilise during the current financial year reflecting the natural
lag between the two channels.
The Wholesale network at the year end had a total of 54 partner
stores in Asia, Europe and the Middle East (2014: 56).
Financial
Gross margin was 60.5% for the year to 31 March 2015, down 280
basis points relative to the prior year (2014: 63.3%). This
reflects a positive channel mix effect which was offset by other
factors, including the pricing decisions taken on new product
launches and lower manufacturing margins while the new factory in
Somerset was building up to full capacity and efficiency during
H1.
Operating expenses for the year decreased by GBP1.6 million to
GBP88.6 million (2014: GBP90.2 million). This was primarily a
composite of increased retail costs for new directly-operated
international stores opened during this year and the previous year
of GBP6.7 million, less savings in: 1) turnover-related expenses
(GBP3.7 million), 2) senior management costs (GBP2.4 million), and
3) advertising and promotion costs (GBP1.5 million). In addition,
and as previously reported, operating expenses included a GBP2.7
million non-cash impairment relating to five international stores
(2014: GBP2.7 million relating to two international stores).
On an adjusted basis, profit before tax was GBP4.5 million
(2014: GBP17.4 million), ahead of expectations. Profit before tax
was GBP1.9 million (2014: GBP14.0 million).
The Group incurred a tax charge of GBP3.3 million (2014: GBP5.4
million) which has resulted in a high effective tax rate for the
year which is largely due to tax losses in overseas subsidiaries
which cannot be offset against UK taxable profits.
The Group generated a loss after tax of GBP1.4 million (2014:
profit after tax of GBP8.6 million) resulting in a basic loss per
share for the year of 2.3p (2014 Basic earnings per share: 14.5p).
Adjusted basic earnings per share was 2.1p (2014:19.8p).
Capital and investment expenditure for the period was GBP17.0
million, of which GBP7.3 million related to the acquisition of the
lease rights to the new Paris flagship store, GBP7.9 million
related to new stores and GBP1.0 million to investment in digital
and IT systems.
Inventories have increased to GBP39.4 million from GBP33.8
million at the start of the period due to the lower than planned
sales performance and the higher number of directly-operated
stores. The Group had cash of GBP9.9 million at 31 March 2015
(2014: GBP23.4 million) and no debt.
Dividend
The Board of Mulberry seeks to balance paying dividends to
shareholders with investing in the business. Despite the reduced
profitability of the last two years, the Board remains confident of
the medium term outlook and is recommending the payment of a
dividend on the ordinary shares of 5.0p per ordinary share (2014:
5.0p) which will be paid on 26 November 2015 to shareholders on the
register on 30 October 2015.
BUSINESS MODEL
Mulberry is a vertically integrated luxury brand which was
founded in 1971 in Somerset by a young English entrepreneur, Roger
Saul. The Group designs, develops, manufactures, markets and sells
products under the Mulberry brand name. The Group has 1,300
employees (full-time equivalents), the majority of whom are based
in the UK. The design studio is based in London, where the seasonal
collections are conceived. The two Somerset factories, which are
owned by the Group, employ nearly 700 people and manufacture
approximately 50% of the brand's handbags. The remainder of
production is outsourced to specialist third parties, mainly
outside the UK, with whom the Group has long-standing
relationships.
Mulberry's product offer spans several categories. Leather
accessories account for over 90% of the Group's revenues, within
which bags represent over 70% of revenues. Other important product
categories include small leather goods, shoes, soft accessories and
women's ready-to-wear.
Brand and marketing activities are based in London with the
support of offices in Paris and New York. Mulberry distributes its
products globally via 124 stores in 24 countries (70
directly-operated, 54 partner), the brand's digital site
(mulberry.com) and selected wholesale partners.
Digital has become an important part of the business and is
expected to continue to increase in importance going forward, both
as a revenue channel and as a highly effective means of engaging
with the Group's customers. Mulberry's digital business is managed
in-house, utilising industry-leading software. The brand's
transactional website (mulberry.com) trades in three currencies and
ships to 190 countries, all of which are fulfilled from the UK.
Omni-channel functionality was launched in the UK during the year
and includes in-store digital ordering, in-store collection of
digital orders (Click & Collect) and in-store digital
returns.
Stores remain an integral and important part of the Group's
business model. Mulberry directly operates stores in the UK,
continental Europe and North America. In Scandinavia, Mulberry has
long-standing partners who run 10 stores in those markets. Partners
also run Mulberry stores in Asia (39 stores), the Middle East (4
stores) and continental Europe (1 store). Looking forward, it is
expected that the business model will reflect the significant
changes occurring in the luxury industry with strategically-placed
stores and selective relationships with key wholesale accounts
supporting a comprehensive digital service globally, with all touch
points providing the same customer experience.
STRATEGY
The long term objective is to grow Mulberry as a global luxury
brand and thereby create shareholder value. The main KPI in the
medium term is revenue growth both for the Retail and Wholesale
channels. In relation to Retail, this includes both total and
like-for-like sales growth, the latter being defined as the
year-on-year change in sales from stores which have been trading
both during the current and previous periods.
1. Product:
The price positioning of the Mulberry brand has been clarified
during the year with particular focus on the critical price range
for bags of GBP500-GBP1,000. As a result of the changes made, bags
within this price range for the Spring Summer 2015 collection
represented 66% of the assortment compared to 45% for Spring Summer
2014. The recent improvement in sales momentum suggests that this
is a successful strategy. To date, the focus has been on leather
goods, which account for over 90% of Group sales. Looking forward,
the Group plans to apply the same principles to all product
categories, aligning the price point of shoes and ready-to-wear
collections with bags in order to make those collections more
relevant to the Group's core customers.
2. Brand:
Mulberry will continue to invest in building the brand globally
via a dynamic marketing and communication strategy, engaging with
new and loyal customers as well as continuing to enhance the
understanding of the brand in new and emerging markets. On a
regional basis, marketing activities remain carefully tailored.
The Group aims to connect with its customers via the increased
use of digital and social media. Digital media spend as a
proportion of the total media spend is expected to rise from
approximately 30% to 50% over the medium term.
3. Omni-channel:
The Group will continue to strengthen its position in the UK and
expand internationally through its omni-channel strategy with
well-situated stores complemented by a strong digital presence.
There has been a significant investment in the Mulberry store
network over recent years which has meant that approximately 30% of
the stores are less than three years old. In the short to medium
term, the Group plans to open fewer stores and focus upon improving
the range of omni-channel services to match rapidly evolving
customer buying behaviour. Approximately 50% of the Group's digital
sales are now executed on mobile phones and tablets whilst two
thirds of searches are made using these devices.
4. Operations:
The Group continues to invest in its operational capability to
maintain a high quality, scalable platform for the business.
The second UK factory, which opened during June 2013, is now
operating at full capacity and efficiency. Nearly 50% of handbags
are now manufactured in the UK, which reinforces the authenticity
of the Mulberry brand and, at a practical level, contributes to the
attainment of high quality standards. Looking forward, the Group is
committed to its "Made in England" strategy and intends to maintain
its UK production of handbags close to this 50% level. Since the UK
factories are already approaching full capacity, this is likely to
involve opening further new factories in the UK as the Group's
revenues increase.
The Group has followed a sustained strategy of investing in its
IT platform for many years. This is considered to be vital to the
future growth and evolution of the business. During the year, the
roll-out of a new EPOS system was completed. This project enables
an embedded CRM capability to be activated. This will help the
Group to understand its main customer segments and create an
improved customer experience across all touch points. IT will
continue to play a pivotal role in the evolution of the Group's
omni-channel capabilities.
CURRENT TRADING AND OUTLOOK
Total retail sales for the ten weeks to 6 June 2015 were up 17%
relative to the same period last year (like-for-like retail sales
+15%).
Retail total sales Retail like-for-like sales*
------------------------------------------------ ----------------------------------------------------
This year vs. 26 weeks 26 weeks 52 weeks 10 weeks 26 weeks 26 weeks 52 weeks 10 weeks
last year (%) to to to to to to to to 6-Jun-15
30-Sep-14# 28-Mar-15# 28-Mar-15# 6-Jun-15 30-Sep-14# 28-Mar-15# 28-Mar-15#
UK Retail -16% +1% -7% +13% -17% +3% -7% +17%
International
Retail +20% +34% +28% +22% -2% +6% +2% -4%
Digital +1% +26% +15% +40% +1% +26% +15% +40%
----------- ----------- ----------- --------- ----------- ----------- ----------- -------------
Group Retail
total -9% +9% +1% +17% -13% +7% -2% +15%
----------- ----------- ----------- --------- ----------- ----------- ----------- -------------
* Like-for-like defined as the year-on-year change in sales from
stores which have been trading both during the current and previous
periods
# Previously reported
The Group expects that the Wholesale business will stabilise
during the current financial year supported by the Autumn Winter 15
and Spring Summer 16 order books which are developing
satisfactorily.
The Group intends to continue building on the sales momentum
achieved during the second half of the financial year by ensuring
its ranges reflect the Mulberry brand values of quality, value for
money and innovation. The Group looks forward to the arrival of its
new Creative Director, Johnny Coca, on 8 July and expects his first
collection to reach its stores during June 2016.
After several years of significant investment, the Group plans
to open fewer new stores and will focus on improving productivity
in its existing stores and in its UK factories. The Group is
continuing to enhance the systems which underpin the omni-channel
offering in the UK as well as rolling out the omni-channel services
to key international markets during this financial year.
Operating costs are expected to increase during the current
financial year. This is due to the costs of new stores opened both
this year and last year, rent reviews for the Bond Street flagship
store and Kensington Church Street head office as well as the costs
relating to the new senior management team.
The new flagship store in Paris on Rue Saint-Honoré opened on 24
April 2015 and is trading encouragingly. Our partner has opened a
store in Macau on 7 June 2015.
Two stores have been closed since 31 March 2015. The small store
on Rue Saint-Honoré in Paris was closed to coincide with the
opening of the new flagship with the lease being sold for a cash
consideration of GBP1.5 million. The store on Grant Avenue in San
Francisco was closed and the lease sold for a cash consideration of
GBP2.2 million. A profit has been recorded on each of these
transactions.
Capital expenditure for the year to 31 March 2016 is expected to
be in the region of GBP10.0 million (2015: GBP17.0 million), of
which the majority will be on stores.
The Directors have reviewed the financial projections for the
future in light of current trading and considered the capital
expenditure commitments and expected cash flows compared to
available borrowing facilities. As a consequence, the Directors
have a reasonable expectation that the Group will have sufficient
financial resources to continue its current operations for the
foreseeable future and the Directors have continued to adopt the
going concern basis in preparing the financial statements.
Consolidated income statement
Year ended 31 March 2015
Note 2015 2014
GBP'000 GBP'000
Revenue 148,680 163,456
Cost of sales (58,745) (59,992)
Gross profit 89,935 103,464
Other operating expenses (85,932) (86,806)
Exceptional operating expenses 3 (2,662) (3,388)
------------------------------------ ----- --------- ---------
Operating expenses (88,594) (90,194)
Other operating income 359 447
Operating profit 1,700 13,717
Share of results of associates 190 292
Finance income 17 35
Finance expense (46) (30)
Profit before tax 1,861 14,014
Tax (3,253) (5,412)
(Loss)/profit for the year (1,392) 8,602
========= =========
Attributable to:
Equity holders of the parent (1,392) 8,602
========= =========
Basic (loss)/earnings per share 5 (2.3p) 14.5p
Diluted (loss)/earnings per share 5 (2.3p) 14.3p
Reconciliation of adjusted profit before tax:
Note 2015 2014
GBP'000 GBP'000
Profit before tax 1,861 14,014
Exceptional items:
Impairment relating to retail assets 2,662 2,740
Net non-recurring Director costs - 648
Adjusted profit before tax - non-GAAP
measure 4,523 17,402
========= =========
Adjusted earnings per share - non-GAAP
measure
Adjusted basic earnings per share 5 2.1p 19.8p
Adjusted diluted earnings per share 5 2.1p 19.6p
Consolidated statement of comprehensive income
Year ended 31 March 2015
2015 2014
GBP'000 GBP'000
(Loss)/profit for the year (1,392) 8,602
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translation of
foreign operations (1,084) (981)
Tax impact arising on above exchange differences (137) 545
--------- ---------
Total comprehensive income for the year (2,163) 8,166
========= =========
Attributable to:
Equity holders of the parent (2,613) 8,166
========= =========
Consolidated balance sheet
At 31 March 2015
2015 2014
GBP'000 GBP'000
Non-current assets
Intangible assets 12,713 7,323
Property, plant and equipment 33,289 35,139
Interests in associates 93 64
Deferred tax assets 1,260 770
---------
47,355 43,296
Current assets
Inventories 39,379 33,780
Trade and other receivables 13,260 13,574
Cash and cash equivalents 9,900 23,414
---------
62,539 70,768
Total assets 109,894 114,064
--------- ---------
Current liabilities
Trade and other payables (28,733) (29,423)
Current tax liabilities (2,472) (683)
---------
(31,205) (30,106)
--------- ---------
Total liabilities (31,205) (30,106)
--------- ---------
Net assets 78,689 83,958
========= =========
Equity
Share capital 3,000 3,000
Share premium account 11,961 11,961
Own share reserve (1,601) (1,676)
Capital redemption reserve 154 154
Special reserves 1,467 1,467
Foreign exchange reserve (1,433) (212)
Retained earnings 65,141 69,264
Total equity 78,689 83,958
========= =========
Consolidated statement of changes in equity
Year ended 31 March 2015
Equity attributable to equity holders of the parent
Share Own share Foreign
Share premium reserve Capital Special exchange Retained
Capital account reserve reserve reserve earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April
2013 2,992 11,835 (2,937) 154 1,467 224 64,974 78,709
Total comprehensive
(expense)/income
for the year - - - - - (436) 8,602 8,166
Charge for employee
share-based payments - - - - - - 81 81
Exercise of share
options 8 126 - - - - (1,461) (1,327)
Own shares - - 1,261 - - - - 1,261
Ordinary dividends
paid - - - - - - (2,932) (2,932)
As at 31 March
2014 3,000 11,961 (1,676) 154 1,467 (212) 69,264 83,958
Total comprehensive
expense for the
year - - - - - (1,221) (1,392) (2,613)
Charge for employee
share-based payments - - - - - - 136 136
Exercise of share
options - - - - - - 99 99
Own shares - - 75 - - - - 75
Ordinary dividends
paid - - - - - - (2,966) (2,966)
As at 31 March
2015 3,000 11,961 (1,601) 154 1,467 (1,433) 65,141 78,689
========== ========= ========== ========== ========== ========== =========== ========
Consolidated cash flow statement
Year ended 31 March 2015
2015 2014
GBP'000 GBP'000
Operating profit for the year 1,700 13,717
Adjustments for:
Depreciation and impairment of property,
plant and equipment 10,300 9,870
Amortisation of intangible assets 2,028 1,428
Loss/(profit) on disposal of property,
plant and equipment 8 (13)
Effects of foreign exchange 204 (40)
Share-based payments charge 155 127
Operating cash flows before movements
in working capital 14,395 25,089
(Increase)/decrease in inventories (5,595) 1,931
Decrease in receivables 106 558
Increase/(decrease) in payables 838 (377)
Cash generated from operations 9,744 27,201
Corporation taxes paid (2,103) (7,749)
Interest paid (46) (30)
Net cash inflow from operating activities 7,595 19,422
--------- ---------
Investing activities:
Interest received 17 35
Dividend received from associate - 441
Purchases of property, plant and equipment (10,057) (13,199)
Proceeds from disposal of property, plant
and equipment 157 44
Acquisition of intangible fixed assets (8,130) (3,023)
Net cash used in investing activities (18,013) (15,702)
--------- ---------
Financing activities:
Dividends paid (2,966) (2,932)
Settlement of share awards (130) (493)
Disposal of own shares - 1,261
Net cash used in financing activities (3,096) (2,164)
--------- ---------
Net (decrease)/increase in cash and cash
equivalents (13,514) 1,556
Cash and cash equivalents at beginning
of year 23,414 21,858
Cash and cash equivalents at end of year 9,900 23,414
========= =========
Notes
1. Basis of preparation
The financial information in this announcement, which was
approved by the Board of Directors on 10 June 2015, does not
constitute the Company's statutory accounts for the years ended 31
March 2015 or 2014, but is derived from those accounts.
Statutory accounts for the year ended 31 March 2014 have been
delivered to the Registrar of Companies and those for the year
ended 31 March 2015 have been approved and will be delivered to the
Registrar of Companies following the Company's Annual General
Meeting. The auditors have reported on those accounts, their
reports were unqualified and did not draw attention to any matters
by way of emphasis without qualifying their reports and did not
contain any statement under section 498 (2) or (3) of the Companies
Act 2006.
Whilst the financial information included in this preliminary
announcement has been completed in accordance with International
Financial Reporting Standards (IFRS), this announcement itself does
not contain sufficient information to comply with IFRS.
2. Accounting policies
The Group's financial statements for the year ended 31 March
2015 have been prepared in accordance with the measurement criteria
of the International Financial Reporting Standards (IFRS) as
adopted for use in the European Union.
For the year ended 31 March 2015, the financial year runs for
the 52 weeks to 28 March 2015 (2014: 52 weeks ended 29 March
2014).
During the current year, the following new and revised Standards
and Interpretations have been adopted but have not had an impact on
the Group:
-- IFRS 10: Consolidated financial statements; and
-- IFRS 12: Disclosure of Interests in Other Entities.
At the date of approval of these financial statements, the
following Standards and Interpretations which have not been applied
in these financial statements were in issue but not yet effective
and in some cases had not yet been adopted by the EU:
-- IFRS 9: Financial Instruments;
-- IFRS 15: Revenue from contracts with customers; and
-- Amendments to IAS 16: Property, Plant and Equipment and IAS 38: Intangible assets.
The Directors do not expect that the adoption of the Standards
listed above will have a material impact on the financial
statements of the Group in future periods. Beyond the information
above, it is not practicable to provide a reasonable estimate of
the effect of these Standards until a detailed review has been
completed.
3. Exceptional expenses
The exceptional operating expense for the year represents an
impairment charge of GBP2,662,000 relating to the retail assets of
five international stores. These stores are relatively new and
trading at a loss. They are in developing markets which will
benefit from the new creative direction of the Group and in which
the omni-channel strategy has not yet been rolled out. In view of
the uncertainty over future trading, provision has been made.
The exceptional operating expenses for the prior year
included:
-- An impairment charge of GBP2,740,000 relating to the retail
assets of two international stores; and
-- Net non-recurring Director costs associated with the
settlement agreed with Bruno Guillon following his resignation from
the Company. This included GBP833,000 for compensation and payment
in lieu of notice, GBP107,000 relating to social security costs and
a credit of GBP292,000 from the forfeiture of his share scheme
awards.
4. Dividends
The dividends approved and paid during the year are as
follows:
2015 2014
GBP'000 GBP'000
Dividend for the year ended 31 March 2014 of 5p (2013:
5p) per share paid in September 2014 2,966 2,932
========= =========
Proposed dividend for the year ended 31 March 2015 of 5p
per share (2014: 5p) 2,966 3,000
========= =========
The proposed dividend is subject to approval by shareholders at
the Annual General Meeting and has not been included as a liability
in these financial statements.
5. Earnings per share ('EPS')
2015 2014
pence pence
Basic (loss)/earnings per share (2.3) 14.5
Diluted (loss)/earnings per share (2.3) 14.3
Adjusted basic earnings per share 2.1 19.8
Adjusted diluted earnings per share 2.1 19.6
Earnings per share is calculated based on the following
data:
2015 2014
GBP'000 GBP'000
Profit for the year for basic and diluted
earnings per share (1,392) 8,602
Adjustments to exclude exceptional items:
Impairment relating to retail assets 2,662 2,740
Net non-recurring Director costs - 648
Tax impact of above - (216)
Adjusted profit for the year for basic and
diluted earnings per share 1,270 11,774
========= =========
2015 2014
million million
Weighted average number of ordinary shares for
the purpose of basic EPS 59.3 59.4
Effect of dilutive potential ordinary shares:
share options 0.6 0.9
Weighted average number of ordinary shares for
the purpose of diluted EPS 59.9 60.3
========= =========
The weighted average number of ordinary shares in issue during
the year excludes those held by the Mulberry Group Plc Employee
Share Trust.
6. Asset acquisition
On 20 June 2014, the Group completed an agreement entered into
on 19 November 2013, to purchase 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 opened in
April 2015. The net cash paid was GBP7,325,000. As the business is
not seen to have the inputs, processes and outputs necessary for it
to be treated as a business combination, the transaction has been
accounted for as an asset acquisition resulting in the recognition
of an intangible asset reflecting the inherent value in the
lease.
7. Subsequent events
Subsequent to the year end, and shortly before the opening of
the new Paris flagship store during April 2015, the Group closed
its store at 207 Rue Saint-Honoré, Paris and sold its lease rights.
Similarly, during May 2015 the Group sold the rights to its store
lease on Grant Avenue, San Francisco. A profit was made on both
disposals.
8. Information
Copies of the Annual Report and financial statements will be
posted to shareholders. Further copies can be obtained from
Mulberry Group plc's registered office at The Rookery, Chilcompton,
Bath, Somerset, BA3 4EH. Copies of this announcement are available
for a period of one month from the date hereof from the Company's
registered office, and from the Company's nominated adviser, Altium
Capital Limited, 30 St James's Square, London, SW1Y 4AL.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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