RNS Number:9851J
Ted Baker PLC
05 October 2006
5 October 2006
Ted Baker PLC
Interim Results for the 28 weeks ended 12 August 2006
Highlights
* Group revenue up 6.9% to #61.1m (2005: #57.2m)
* Retail sales up 10.4% to #39.4m (2005: #35.7m)
* Wholesale sales up 1.1% to #21.7m (2005: #21.5m)
* Licence income in line at #1.8m (2005: #1.8m)
* Profit before tax increased by 11.3% to #7.0m (2005: #6.3m)
* Basic earnings per share up 14.0% at 11.4p (2005: 10.0p)
* Interim dividend up 10.3% to 4.3p per share (2005: 3.9p per share)
* Continued expansion in the US, with the successful launch in May of our
second largest US store in Southern California's luxury shopping
destination, South Coast Plaza.
* Asian expansion progressing with the opening of the first store in Hong
Kong on 4 October 2006.
* Five further openings scheduled in Dubai (2), Singapore, Bangkok and
Jakarta during the second half of the year.
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"I am pleased to announce positive results for the last 28 weeks. At Ted Baker
we continue to focus on our key strengths of design, product quality, attention
to detail and great service. We are encouraged by the positive reactions from
our customers to the autumn/winter 2006 collections.
We continue with our planned expansion of the brand into the US, the Far East
and Asia and I am pleased to announce the opening of the first store in Hong
Kong yesterday.
The second half of the year has started well and we are confident of a positive
outcome for the year."
Enquiries:
Ted Baker PLC Tel: 020 7796 4133 on 5 October 2006 only
Ray Kelvin, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler Tel: 020 7796 4133
Sandrine Gallien
Kate Hough
Notes to Editors
'No Ordinary Designer Label...' Ted Baker has grown steadily from a single shirt
specialist store in Glasgow to an international brand that distributes through
retail showcases, leading department stores and key independents in Europe, USA,
Canada and Australasia. In October 2005, a territorial licence agreement was
signed with Li & Fung Group of companies, for retail and wholesale distribution
in Hong Kong, Macau, China, Taiwan and South Korea. In December 2005 a second
territorial licence agreement was signed with RSH Limited, for retail
distribution of the Ted Baker brand in Singapore, Malayasia, Thailand,
Indonesia, UAE, Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and Lebanon.
Using three distinct channels of distribution, retail, wholesale and licensing,
allows Ted to pursue a policy of careful brand management and growth by
extending the breadth of the collections, controlling distribution channels and
developing the Ted Baker presence within key markets.
Ted's collections include three men's ranges: Global, which consists of limited
edition opulent pieces; Endurance, a fusion of traditional tailoring with 21st
century technology and high performance fabrics; and Mainline which is a
combined collection of laid-back denim pieces, casual shirts and contemporary
suiting. Ted's Womenswear collection includes tailoring, silk jerseys,
directional knitwear, sophisticated dresses, and appliqued denim pieces. Both
the men's and women's collections are complemented by their individual accessory
collections. The Childrenswear and Babywear ranges are aptly named Teddy Boy,
Teddy Girl, Teddy Baby and are treated as 'small cuts dressed by Ted.'
Fragrances, Footwear, Eyewear, Watches and Intimates are designed by Ted and
distributed through licensees.
Renowned for the brand's quirky sense of humour and attention to detail, Ted
Baker has always had a very clear unswerving focus on quality. Ted creates
collections that appeal to a broad range of style conscious men and women
looking for that certain something a little out of the ordinary.
For further information please visit www.tedbaker.co.uk
CHAIRMAN'S STATEMENT
I am pleased to report a positive first half performance for the Ted Baker
brand, in all of our territories. Both revenue and profits are up on last year,
reflecting the continuing appeal of our innovative collections. During the
period we continued to build our presence in the United States with the
successful opening of our new store in Southern California. The first licensed
store has opened in Hong Kong on 4 October 2006 with further openings in Dubai,
Singapore, Bangkok and Jakarta to follow in the second half.
FINANCIAL RESULTS
Group revenue increased by 6.9% to #61.1m (2005: #57.2m) in the 28 weeks ended
12 August 2006 with a particularly strong performance in the retail business.
The composite gross margin was 56.5% compared to 57.0% for the first half of
2005 reflecting a slightly increased wholesale margin and a lower achieved
retail gross margin.
Distribution costs, which include the costs of retail stores, concessions and
outlets increased by 4.6% to #20.6m (2005: #19.7m) which was below the increase
in average retail selling space of 8.6%. Administration expenses reduced by 0.5%
to #8.7m (2005: #8.8m) reflecting continued tight cost management.
Operating profit was up 12.6% at #7.0m (2005: #6.2m). Profit before tax
increased by 11.3% for the period to #7.0m (2005: #6.3m). Basic earnings per
share increased by 14.0% to 11.4p (2005: 10.0p)
DIVIDENDS
The Board has declared an increased interim dividend of 4.3p per share (2005:
3.9p) payable on the 24 November 2006 to shareholders on the register at the
close of business on 3 November 2006.
RETAIL
Retail sales were up 10.4% to #39.4m (2005: #35.7m). The retail gross margin was
64.3% compared to 65.9% for the same period last year, which was due to a higher
proportion of our sales being generated in the United States, the opening of a
further outlet store and a strong end of season sale. Underlying margins were
unchanged.
Average retail square footage increased by 8.6% to 143,076 sq.ft. (2005: 131,769
sq.ft.) as we expanded our retail space both in the UK and overseas. Sales per
square foot increased by 1.8% to #276 (2005: #271).
Ted Baker has continued its retail expansion in the United States with the
opening of our second largest US store in Southern California's premier luxury
shopping destination, South Coast Plaza in May and we are pleased with its
performance to date. The 3,895 sq ft store houses Ted's full range of men's and
women's collections, including Global, Endurance, Men's Mainline and Womenswear.
Our other stores in the United States continue to trade well.
WHOLESALE
The wholesale division has performed well given the difficult market conditions
that we reported at the time of the preliminary statement. Sales were ahead 1.1%
to #21.7m (2005: #21.5m) although this reflects in part earlier phasing of
autumn/winter deliveries. Without this earlier phasing, we estimate that first
half sales would have been approximately 6.0% down on the previous year. Gross
margins were slightly above last year at 42.3% (2005: 42.1%).
LICENCE INCOME
Our licence income was in line with last year at #1.8m (2005: #1.8m). We are
pleased with the growth in our skincare and fragrances licence as well as our
shoe and watch licences. Our other licences continue to perform well in
accordance with our expectations.
Licence income continues to be significantly weighted towards the second half of
the financial year and we anticipate that the outcome for the full year will be
ahead of last year.
COLLECTIONS
Ted Baker Menswear have enjoyed good growth in the period with sales up 5.6% to
#34.0m (2005: #32.2m). Menswear represented 55.7% of sales (2005: 56.3%).
Womenswear sales increased by 11.7% to #24.3m (2005: #21.8m) and represented
39.8% of our total sales (2005: 38.1%).
Sales of other collections, comprising Childrenswear and Footwear were #2.8m
(2005: #3.2m) and these collections represented 4.5% of our total sales (2005:
5.6%).
We recently launched our new MKIII Endurance suit, which combines high
performance fabrics, traditional tailoring and hidden detailing, and the initial
response has been encouraging.
CURRENT TRADING AND PROSPECTS
In the seven weeks to 30 September 2006 we are pleased to report that retail
sales were 14.7% ahead of the same period last year. Wholesale sales were 6.8%
below the same period last year reflecting some earlier phasing of deliveries
into the first half compared to last year. We expect wholesale sales for the
full year to be below last year due to the difficult market conditions facing
some of our trustees.
Ted Baker is focused on delivering the high quality brand that our customers
expect and we have been particularly pleased with the positive reaction to our
2006 autumn/winter collections.
We continue to focus on the planned expansion of our distribution both in the UK
and overseas as we develop Ted Baker into a global brand.
In the UK, four concessions have been opened since the half year and a further
three concessions and a store in Bath are due to open before the year end.
I am delighted to announce that our retail licensee opened the first store in
Hong Kong yesterday and the early reaction from customers has been promising.
Five further openings in the Far East and Middle East are planned this year.
As always, the Christmas period remains key to our overall performance and the
Board remains confident of a successful outcome for the full year.
Robert Breare
5 October 2006
Group Income Statement
For the 28 weeks ended 12 August 2006
28 weeks ended 28 weeks ended 52 weeks ended
12 August 13 August 28 January
Note 2006 2005 2006
#'000 #'000 #'000
Revenue 61,126 57,182 117,832
Cost of sales (26,598) (24,603) (48,979)
___________ _________ _________
Gross profit 34,528 32,579 68,853
Distribution costs (20,619) (19,704) (39,007)
Administrative expenses (8,714) (8,757) (15,339)
Other operating income 1,790 2,088 3,827
___________ _________ _________
Operating profit 6,985 6,206 18,334
Finance income 2 73 99 129
Finance expenses 2 (95) (48) (109)
___________ _________ _________
Profit before tax 6,963 6,257 18,354
Income tax expense (2,158) (2,002) (5,435)
___________ _________ _________
Profit for the period 4,805 4,255 12,919
___________ _________ _________
Attributable to:
Equity shareholders of the parent company 4,831 4,263 12,931
Minority interests (26) (8) (12)
___________ _________ _________
Profit for the period 4,805 4,255 12,919
___________ _________ _________
Earnings per share
Basic 3 11.4p 10.0p 30.6p
Diluted 3 11.3p 9.7p 29.7p
Group Statement of Changes in Equity
For the 28 weeks ended 12 August 2006
Available
Share Share for sale Hedging Translation Retained Minority Total
capital premium reserve reserve reserve earnings Interests equity
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 28 January 2006 2,149 6,983 176 (7) 12 32,911 (52) 42,172
Share option credit - - - - - (8) - (8)
Movement of current/deferred - - - - - (181) - (181)
tax on share options
Change in fair value - - (176) - - - - (176)
Change in hedge reserve - - - (230) - - - (230)
Exchange rate movement - - - - (303) - - (303)
Profit for the period - - - - - 4,831 (26) 4,805
Shares issued 11 1,045 - - - - - 1,056
Movement in respect of own shares - - - - - (3,977) - (3,977)
Movement in respect of - - - - - 5,155 - 5,155
treasury shares
Disposal of own shares - - - - - 935 - 935
Dividends paid - - - - - (3,501) - (3,501)
_______________________________________________________________________________________
Balance at 12 August 2006 2,160 8,028 - (237) (291) 36,165 (78) 45,747
_______________________________________________________________________________________
Available
Share Share for sale Hedging Translation Retained Minority Total
capital premium reserve reserve reserve interests earnings equity
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 29 January 2005 2,149 6,983 - - - 27,738 (40) 36,830
Share option charge - - - - - 337 - 337
Deferred tax on share options - - - - - 222 - 222
Change in fair value - - 362 - - - - 362
Change in hedge reserve - - - 51 - - - 51
Exchange rate movement - - - - 26 - - 26
Profit for the period - - - - - 4,263 (8) 4,255
Shares issued - - - - - (218) - (218)
Shares vested - - - - - 41 - 41
Dividends paid - - - - - (3,138) - (3,138)
_______________________________________________________________________________________
Balance at 13 August 2005 2,149 6,983 362 51 26 29,245 (48) 38,768
_______________________________________________________________________________________
Group Balance Sheet
At 12 August 2006
Note 12 August 2006 13 August 2005 28 January 2006
#'000 #'000 #'000
Non-current assets
Intangible assets 493 501 501
Property, plant and equipment 18,771 18,021 18,667
Deferred tax assets - 889 1,543
Available-for-sale financial assets - 362 176
_______________________________________________________________________________________
19,264 19,773 20,887
Current assets
Inventories 26,986 24,887 23,475
Trade and other receivables 14,944 12,925 11,764
Derivative financial assets 7 118 155
Cash and cash equivalents 5 6,801 4,954 11,381
_______________________________________________________________________________________
48,738 42,884 46,775
Current liabilities
Trade and other payables (18,362) (18,023) (17,507)
Borrowings 5 (282) (1,308) (563)
Current tax payable (3,067) (3,722) (6,544)
Derivative financial liabilities (266) (86) (126)
_______________________________________________________________________________________
(21,977) (23,139) (24,740)
Non-current liabilities
Borrowings 5 - (750) (750)
Deferred tax liabilities (278) - -
_______________________________________________________________________________________
(278) (750) (750)
_______________________________________________________________________________________
Total liabilities (22,255) (23,889) (25,490)
_______________________________________________________________________________________
Net assets 45,747 38,768 42,172
_______________________________________________________________________________________
Equity
Share capital 2,160 2,149 2,149
Share premium account 8,028 6,983 6,983
Other reserves (237) 413 169
_______________________________________________________________________________________
Retained earnings 35,874 29,271 32,923
Total equity attributable to equity 45,825 38,816 42,224
shareholders of the parent company
Minority interests (78) (48) (52)
_______________________________________________________________________________________
Total equity 45,747 38,768 42,172
_______________________________________________________________________________________
Group Cash Flow Statement
For the 28 weeks ended 12 August 2006
Note 28 weeks ended 28 weeks ended 52 weeks ended
12 August 13 August 28 January
2006 2005 2006
#'000 #'000 #'000
Cash generated from operations
Profit for the period 4,805 4,255 12,919
Adjusted for:
Income tax expense 2,158 2,002 5,435
Depreciation 2,185 2,041 3,820
Loss on disposal of property, plant & equipment 44 2 23
Share option (credits) / charge (8) 337 612
Net finance (losses) / gains (63) 2 35
Change in hedge reserve (230) 51 (7)
Increase in inventories (3,745) (2,076) (595)
Increase in trade and other receivables (2,370) (4,489) (3,534)
Increase in trade and other payables 167 428 2,030
___________ _________ _________
Cash generated from operations 2,943 2,553 20,738
Interest paid (12) (38) (125)
Income taxes paid (3,112) (2,674) (5,480)
___________ _________ _________
Net cash flow from operating activities (181) (159) 15,133
Cash flow from investing activities
Purchases of property, plant & equipment (2,588) (2,675) (5,059)
Proceeds from sale of property, plant & equipment - 35 13
Interest received 58 43 63
___________ _________ _________
Net cash flow from investing activities (2,530) (2,597) (4,983)
Cash flow from financing activities
Proceeds from issue of ordinary shares 1,056 - -
Purchase of own shares (752) (447) (4,617)
Sale of own shares 5,907 - -
Shares vested (3,042) 229 271
Dividends paid 4 (3,501) (3,138) (4,775)
___________ _________ _________
Net cash flow from financing activities (332) (3,356) (9,121)
___________ _________ _________
Net (decrease) / increase in cash and cash
equivalents (3,043) (6,112) 1,029
Cash and cash equivalents at 28 January 2006 10,068 8,853 8,853
Non cash movements - 42 -
Exchange rate movement (506) 113 186
___________ _________ _________
Cash and cash equivalents at 12 August 2006 5 6,519 2,896 10,068
___________ _________ _________
Notes to the Interim Financial Statements
For the 28 weeks ended 12 August 2006
1. Basis of preparation
These financial statements have been prepared on the basis of the recognition
and measurement requirements of IFRS applied in the financial statements at 28
January 2006 and those standards that have been endorsed and will be applied at
27 January 2007.
The results for each half-year are unaudited. The comparative figures for the 52
weeks ended 28 January 2006 have been abridged from the Group's financial
statements for that year, which have been delivered to the Registrar of
Companies. The auditors have reported on those financial statements; their
report was unqualified and did not contain statements under section 237 (2) or
(3) of the Companies Act 1985.
2. Finance income and expenses
28 weeks ended 28 weeks ended 52 weeks ended
12 August 2006 13 August 2005 28 January 2006
#'000 #'000 #'000
Finance income
- Interest receivable 73 46 74
- Exchange rate movement - 53 55
___________ _________ _________
73 99 129
___________ _________ _________
Finance expenses
- Interest payable (10) (48) (109)
- Exchange rate movement (85) - -
___________ _________ _________
(95) (48) (109)
___________ _________ _________
3. Earnings per share
28 weeks ended 28 weeks ended 52 weeks ended
12 August 2006 13 August 2005 28 January 2006
No. No. No.
Number of shares:
Weighted number of ordinary shares outstanding 42,451,893 42,504,123 42,236,880
Effect of dilutive options 223,064 1,159,850 1,216,443
___________ _________ _________
Weighted number of ordinary shares outstanding - diluted 42,674,957 43,663,973 43,453,323
___________ _________ _________
Earnings: #'000 #'000 #'000
Profit for the period, basic and diluted 4,831 4,263 12,931
Basic earnings per share 11.4p 10.0p 30.6p
Diluted earnings per share 11.3p 9.7p 29.7p
4. Dividends per share
28 weeks ended 28 weeks ended 52 weeks ended 28
12 August 2006 13 August 2005 January 2006
#'000 #'000 #'000
Final dividend paid for the prior year of 8.2p
per ordinary share (2005: 7.3p) 3,501 3,138 3,138
Interim dividend paid 2006: #Nil (2005: 3.9p) - - 1,637
___________ _________ _________
3,501 3,138 4,775
___________ _________ _________
The Board has declared an interim dividend of 4.3p per share (2005: 3.9p)
payable on the 24 November 2006 to shareholders on the register at the close of
business on 3 November 2006.
5. Reconciliation of cash and cash equivalents per balance sheet to cash
flow statement
28 weeks ended 28 weeks ended 52 weeks ended
12 August 2006 13 August 2005 28 January 2006
#'000 #'000 #'000
Cash and cash equivalents per balance sheet 6,801 4,954 11,381
Current borrowings (282) (1,308) (563)
Non-current borrowings - (750) (750)
___________ _________ _________
Cash and cash equivalents per cash flow statement 6,519 2,896 10,068
___________ _________ _________
6. Interim report
This interim report will be sent by post to all registered shareholders. Copies
will be available to the public from the Company Secretary at the registered
office: Ted Baker PLC, The Ugly Brown Building, 6a St Pancras Way, London NW1
0TB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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