RNS Number:1169F
Ted Baker PLC
04 October 2007
4 October 2007
Ted Baker PLC
Interim Results for the 28 weeks ended 11 August 2007
Highlights
* Further growth driven by the strength of the Ted Baker brand and
multi-channel distribution strategy
* Profit before tax unchanged but slightly ahead of our expectations due to
shift in profit phasing from first half to second half
* Strong performance across the retail division - sales up 15.1% to #45.4m
* Wholesale sales down 4.1% to #20.8m as previously anticipated
* Strong growth in licence income, up 27.8% to #2.3m
* Initial response to our Autumn/Winter collections has been very positive.
Retail sales for the first seven weeks were 12.5% ahead of the same period
last year
28 weeks ended 11 28 weeks ended 12 Growth 52 weeks ended 27 January 07
August 07 August 06
Group Revenue #66.2m #61.1m 8.3% #125.6m
Profit Before Tax #7.0m #7.0m 0.7% #20.0m
Basic EPS 11.5p 11.4p 0.9% 33.9p
Interim Dividend 5.0p 4.3p 16.3% 14.6p
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"I am delighted to report another excellent performance for the Group as Ted
Baker's attention to detail and high product quality continues to drive the
growth of the brand.
The initial response to our Autumn/Winter collections has been very positive and
we remain dedicated to the careful international expansion of the brand, through
our multi-channel distribution strategy.
The Board is confident in the outcome for 2007 and looks forward to the future
with confidence."
Enquiries:
Ted Baker PLC Tel: 020 7796 4133 on 4 October 2007 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
Renowned for his quirky sense of humour and close attention to detail, Ted Baker
has grown steadily since his beginnings as a shirt specialist in Glasgow back in
1988. In fact, today Ted Baker is a global lifestyle brand that distributes
through its own retail outlets, leading department stores and key independents
throughout Europe, USA, Middle East and Asia. Or as the man himself prefers to
put it, 'No Ordinary Designer Label.'
Using three distinct channels of distribution - retail, wholesale and licensing
- Ted's pursued a policy of considered brand management by: extending the
breadth of his collections; controlling distribution channels; and developing
his presence within key markets. An approach that's seen his offering and reach
expand considerably without the essence of the brand being diluted.
His menswear collections blend the finest traditions of English tailoring with
contemporary styling. What's more from the limited edition Global range to
Endurance - a fusion of traditional tailoring with 21st century technology and
high performance fabrics - and his mainline collection, featuring denim, casual
shirts, contemporary suiting, underwear and accessories, he offers something for
every occasion.
Elegant and feminine, Ted's womenswear collections are equally as impressive.
Spanning dresses, tailoring, jersey, denim, directional knitwear and
accessories, they offer a complete Ted to toe look. The youngest members of
society haven't been forgotten either. Ted's childrenswear features an array of
everyday and occasion wear for discerning girls and boys from newborn to sixteen
year olds.
Expanding his offering even further, fragrances, footwear, eyewear, watches and
lingerie are developed and distributed through licencees - under Ted's watchful
eye of course. A diffusion childrenswear collection and mobile phone range are
amongst his latest brand licensing projects.
Visit Ted's new e-commerce site at www.tedbaker.com
CHAIRMAN'S STATEMENT
I am pleased to report another good trading period for the Group. Growth has
once again been driven by the strength of our brand and by our multi-channel
distribution strategy.
As announced in our interim management statement, above average growth in our
retail and licence divisions, together with challenges for our wholesale
division have resulted in a change in profit phasing from the first half to the
second half of the financial year.
Our retail and licence divisions have performed strongly with retail sales
increasing by 15.1% and licence income increasing by 27.8%. As expected, our
wholesale business was below last year, down 4.1%. Whilst market conditions have
affected some of our wholesale customers, many areas of our wholesale business
have performed well. As a result, profit before tax for the Group was in line
with last year and has slightly exceeded our expectations.
FINANCIAL RESULTS
Group revenue increased by 8.3% to #66.2m (2006: #61.1m) for the 28 weeks ended
11 August 2007 and the composite gross margin was broadly in line with last year
at 56.6%.
Operating expenses rose by 11.6% to #32.7m (2006: #29.3m). Distribution costs,
which include the cost of retail stores, outlets and concessions increased by
14.3% to #23.6m (2006: #20.6m). As a proportion of retail turnover, distribution
costs remained in line with the previous year. Administrative expenses increased
by 5.2% to #9.2m (2006: #8.7m).
Operating profit was up 1.8% at #7.1m (2006: #7.0m). Profit before tax for the
period was unchanged at #7.0m (2006: #7.0m). Basic earnings per share increased
by 0.9% to 11.5p (2006: 11.4p).
We recorded a net cash decrease in the period of #16.4m (2006: #3.0m). Financing
activities were #8.8m higher than last year reflecting an increased dividend and
the purchase of own shares (#4.9m), whilst the comparative figure included
proceeds from the sale of own shares. An additional #1.9m of capital
expenditure due to new store openings and refurbishment and increased working
capital of #4.3m compared to last year was offset by lower income taxes paid.
The increase in working capital reflected growth in the level of the business
and the timing of payments and receipts which will unwind by the year-end.
DIVIDENDS
The Board has declared an increased interim dividend of 5.0p per share (2006:
4.3p) payable on the 30 November 2007 to shareholders on the register at the
close of business on 2 November 2007. This reflects our more progressive
dividend policy as announced in our preliminary statement.
GLOBAL GROUP PERFORMANCE
We continue to focus on the careful global expansion of the Ted Baker brand
through our multi-channel distribution strategy.
Quality, design and attention to detail are the key strengths of the brand and
we remain focused on these areas. These strengths underpin Ted Baker's culture
and are evident across our products, stores and working environments and we
continue to maintain close control of our brand as we expand.
RETAIL
The retail division delivered a particularly strong performance with sales up
15.1% to #45.4m (2006: #39.4m). The retail gross margin was 64.9% compared to
64.3% for the same period last year.
Average retail square footage increased by 6.4% to 152,249 sq.ft. (2006: 143,076
sq.ft.) as we expanded our retail space both in the UK and overseas. Sales per
square foot increased by 8.0% to #298 (2006: #276) reflecting a positive
reaction to our Spring/Summer collections as well as the increasing maturity of
our newer space and overseas stores.
WHOLESALE
Wholesale sales were 4.1% below last year at #20.8m (2006: #21.7m). This was
affected by the challenging conditions faced by some of our trustees in certain
product categories, the transfer of some wholesale trustee accounts to retail
concessions and the action we have taken in respect of certain wholesale
customers who were no longer appropriate for our brand.
The reduction in wholesale sales was mitigated by the growth in products
supplied to our licence partners, albeit, at lower margins.
Although gross margins were lower at 38.4% (2006: 42.3%), reflecting the
increased sales to our retail licence partners in the Middle East and Asia,
underlying gross margins on sales to trustees were broadly in line with the
previous year.
We continue to monitor the profile of our wholesale customers to ensure that it
remains appropriate to our brand.
LICENCE INCOME
Ted Baker operates two types of licences: territorial licences covering North
America, the Middle East, Asia, Australia and New Zealand; and product licences
covering, eyewear, perfume & fragrance, watches, lingerie and footwear.
Licence income for the period was up 27.8% to #2.3m (2006: #1.8m) and we are
particularly pleased with the performances of our sunglasses and ophthalmic
licencee and our perfume and fragrance licencee, both of whom delivered strong
growth.
Licence income in the period includes a contribution from the retail licence
agreements signed in 2006 with RSH Limited and Li and Fung Group of Companies.
COLLECTIONS
Ted Baker Menswear enjoyed good growth for the period with sales up 7.0% to
#36.4m (2006: #34.0m). Menswear represented 55.0% of sales (2006: 55.7%).
Ted Baker Womenswear delivered a strong performance with sales up 10.7% to
#26.9m (2006: #24.3m) and represented 40.6% of our total sales (2006: 39.8%).
Sales of other collections comprising Childrenswear and Footwear were
encouraging at #2.9m (2006: #2.8m). These collections represented 4.4% of our
total sales (2006: 4.5%).
UNITED KINGDOM & EUROPE
Our UK & Europe retail division performed strongly in the period with sales up
15.8% to #40.6m (2006: #35.1m).
Average square footage rose by 6.0% over the period to 127,793 sq.ft. (2006:
120,548 sq.ft.). At 11 August 2007, total retail square footage was 128,069
sq.ft. (2006: 119,956 sq.ft.), representing an increase of 6.8%. Retail sales
per square foot increased 9.3% from #291 to #318.
In April we were delighted to announce the launch of a standalone womenswear
store in Langley Court, Covent Garden. We have been pleased with the performance
of the store and will continue to assess opportunities to open further
standalone womenswear stores, as and when appropriate. During the period we also
opened a store in Gatwick North and two concessions in leading department
stores.
At 11 August 2007, we operated 22 stores (2006: 20), 77 concessions (2006: 69)
and 8 outlet stores (2006: 8).
US
Our US retail division has again performed strongly in the period. Sales
increased by 20.9% to $9.6m against $7.9m last year, which in Sterling was
equivalent to sales up 10.1% to #4.8m (2006: #4.4m) reflecting the weakness of
the dollar in this period. We now have seven stores across the United States and
continue to develop the business and consider further opportunities for
expansion.
Average square footage rose by 8.6% over the period to 24,456 sq.ft. (2006:
22,528 sq.ft.). At 11 August 2007, total retail square footage was in line with
last year at 24,456 sq.ft.
MIDDLE EAST & ASIA
We continue to develop our brand across the Middle East and Asia through our
territorial licence agreements with RSH Limited and Li and Fung Group of
Companies.
During the period we opened four stores, in Dubai, Malaysia, Taiwan and
Singapore, bringing the total number of stores opened in the Middle East and
Asia to 10 since October 2006.
The stores are designed by our in-house design teams and we work closely with
our partners to manage the visual merchandising of the stores and the training
of the teams to ensure the stores reflect the Ted Baker ethos and culture.
CURRENT TRADING AND OUTLOOK
We are pleased to report that we have received a very positive reaction from our
customers to our new Autumn/Winter collections.
Retail
In the seven weeks to 29 September 2007 retail sales were 12.5% ahead of the
same period last year. Average retail square footage increased by 6.0% over the
same period.
Since the period-end, we have opened a store in Dublin and performance to date
has been excellent. We also opened our first store in Melbourne, Australia
through a joint venture with our licence partner in the territory and the
initial reaction has been encouraging.
We plan to open stores in the second half of the financial year in Brighton (UK)
and Aventura Mall, Florida (US).
Wholesale
In the seven weeks to 29 September 2007, wholesale sales were 5.3% below the
same period last year. We anticipate an improvement in the second half and
expect wholesale sales for the full year to be slightly below last year.
Licence Income
Our retail licencees in the Middle East and Asia have also opened three new
stores in Taiwan, Hong Kong and Malaysia and further licenced stores are planned
in the second half of the financial year.
We have launched a licenced childrenswear collection exclusive to Debenhams
called Baker by Ted Baker in 69 Debenhams stores in the UK and Ireland and we
are extremely pleased with progress to date. This launch complements our well
established premium mainline childrenswear collection already available at
selected Ted Baker stores.
I am delighted to announce that we are collaborating with The Carphone Warehouse
Group ("CWG") to launch two Ted Baker branded mobile phones next month. The
first phone is designed in conjunction with Samsung Electronics, the second with
High Tech Computer Corporation. This is a natural extension of the Ted Baker
brand as mobile phones are increasingly becoming fashion accessories, to which
we can add our unique creative flair. The phones will be available exclusively
through CWG's store network in the UK and Europe and through CWG's websites.
While as always, the Group results for the full year will be dependent on
trading in the second half of the financial year, the Board remains confident in
the outcome for 2007 and looks forward to the future with confidence.
Group Income Statement
For the 28 weeks ended 11 August 2007
Unaudited 28 Unaudited 28 Audited
weeks weeks 52 weeks
ended ended ended
11 August 12 August 27 January
Note 2007 2006 2007
#'000 #'000 #'000
Revenue 2 66,210 61,126 125,648
Cost of sales (28,741) (26,598) (51,986)
Gross profit 2 37,469 34,528 73,662
Distribution costs (23,565) (20,619) (41,404)
Administrative expenses (9,169) (8,714) (16,645)
Other operating income 2,375 1,790 4,436
Operating profit 2 7,110 6,985 20,049
Finance income 2, 3 66 73 192
Finance expenses 2, 3 (161) (95) (191)
Profit before tax 2 7,015 6,963 20,050
Income tax expense 6 (2,174) (2,158) (5,634)
Profit for the period 4,841 4,805 14,416
Attributable to:
Equity shareholders of the parent company 4,838 4,831 14,421
Minority interests 3 (26) (5)
Profit for the period 4,841 4,805 14,416
Earnings per share 4
Basic 11.5p 11.4p 33.9p
Diluted 11.4p 11.3p 33.6p
Dividends 5
Paid in period 4,322 3,501 5,335
Paid in period (pence per share) 10.3 8.2 12.5
Proposed 2,108 1,834 4,394
Proposed (pence per share) 5.0 4.3 10.3
Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 11 August 2007
Total Equity
attributable
to equity
Available shareholders
Share Share for sale Hedging Translation Retained of the parent Minority Total
capital premium reserve reserve reserve earnings company Interests equity
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 27 January
2007 2,160 8,028 - (90) (493) 41,733 51,338 (57) 51,281
Share option charge - - - - - 138 138 - 138
Movement of current/
deferred tax on share
options - - - - - 2 2 - 2
Purchase of own shares
for cancellation (net
of sale of own shares) - - - - - (4,082) (4,082) - (4,082)
Amounts from hedge
reserve recycled to
the income statement - - - 398 - - 398 - 398
Effective portion of
changes in fair value
of cash flow hedges - - - (1,138) - - (1,138) - (1,138)
Exchange rate movement - - - - (146) - (146) - (146)
Profit for the period - - - - - 4,838 4,838 3 4,841
Movement in respect of
own shares - - - - - (776) (776) - (776)
Dividends paid - - - - - (4,322) (4,322) - (4,322)
Balance at 11 August
2007 2,160 8,028 - (830) (639) 37,531 46,250 (54) 46,196
Total Equity
attributable
to equity
Available shareholders
Share Share for sale Hedging Translation Retained of the parent Minority Total
capital premium reserve reserve reserve earnings company Interests equity
#'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000
Balance at 28
January 2006 2,149 6,983 176 (7) 12 32,911 42,224 (52) 42,172
Share option
credit - - - - - (8) (8) - (8)
Movement of
current/deferred
tax on share
options - - - - - (181) (181) - (181)
Change in fair
value - - (176) - - - (176) - (176)
Amounts from
hedge reserve
recycled to the
income statement - - - 104 - - 104 - 104
Effective
portion of
changes in fair
value of cash
flow hedges - - - (334) - - (334) - (334)
Exchange rate
movement - - - - (303) - (303) - (303)
Profit for the
period - - - - - 4,831 4,831 (26) 4,805
Shares issued 11 1,045 - - - - 1,056 - 1,056
Movement in
respect of own
shares - - - - - (3,977) (3,977) - (3,977)
Purchase of own
shares for
cancellation
(net of sale of
own shares) - - - - - 5,155 5,155 - 5,155
Disposal of own
shares - - - - - 935 935 - 935
Dividends paid - - - - - (3,501) (3,501) - (3,501)
Balance at 12
August 2006 2,160 8,028 - (237) (291) 36,165 45,825 (78) 45,747
Group Balance Sheet
At 11 August 2007
Note Unaudited Unaudited Audited
11 August 2007 12 August 2006 27 January 2007
#'000 #'000 #'000
Non-current assets
Intangible assets 496 493 482
Property, plant and equipment 21,056 18,771 19,209
Deferred tax assets 481 - 525
22,033 19,264 20,216
Current assets
Inventories 29,660 26,986 27,825
Trade and other receivables 17,899 14,944 11,843
Derivative financial assets - 7 216
Cash and cash equivalents 8 5,780 6,801 13,513
53,339 48,738 53,397
Current liabilities
Trade and other payables (15,020) (18,362) (16,714)
Bank overdraft 8 (8,889) (282) -
Current tax payable (3,543) (3,067) (5,268)
Derivative financial liabilities (890) (266) (307)
(28,342) (21,977) (22,289)
Non-current liabilities
Deferred tax liabilities (834) (278) (43)
(834) (278) (43)
Total liabilities (29,176) (22,255) (22,332)
Net assets 46,196 45,747 51,281
Equity
Share capital 2,160 2,160 2,160
Share premium account 8,028 8,028 8,028
Other reserves (1,469) (528) (583)
Retained earnings 37,531 36,165 41,733
Total equity attributable to equity 46,250 45,825 51,338
shareholders of the parent company
Minority interests (54) (78) (57)
Total equity 46,196 45,747 51,281
Group Cash Flow Statement
For the 28 weeks ended 11 August 2007
Note Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 52 weeks ended
11 August 12 August 27 January
2007 2006 2007
#'000 #'000 #'000
Profit for the period 4,841 4,805 14,416
Adjusted for:
Income tax expense 2,174 2,158 5,634
Depreciation 2,492 2,185 3,981
Loss on disposal of property, plant & equipment 83 44 63
Share option charge / (credit) 138 (8) 332
Net finance gains / (losses) 72 (63) (125)
Change in hedge reserve (740) (230) (83)
Increase in inventories (1,934) (3,745) (4,714)
(Increase) / decrease in trade and other receivables (5,603) (2,370) 903
(Decrease) / increase in trade and other payables (2,689) 167 (554)
Cash generated from operations (1,166) 2,943 19,853
Interest paid (74) (12) (64)
Income taxes paid (1,556) (3,112) (5,873)
Net cash generated from operating activities (2,796) (181) 13,916
Cash flow from investing activities
Purchases of property, plant & equipment (4,480) (2,588) (4,970)
Proceeds from sale of property, plant & equipment - - 26
Interest received 85 58 164
Net cash from investing activities (4,395) (2,530) (4,780)
Cash flow from financing activities
Proceeds from issue of ordinary shares - 1,056 1,056
Purchase of own shares 10 (4,936) (752) (3,438)
Sale of own shares 854 5,907 5,907
Shares vested (776) (3,042) (3,042)
Loan repayment - - (750)
Dividends paid 5 (4,322) (3,501) (5,335)
Net cash from financing activities (9,180) (332) (5,602)
Net (decrease) / increase in cash and cash (16,371) (3,043) 3,534
equivalents
Cash and cash equivalents at 27 January 2007 13,513 10,068 10,068
Loan repayment - - 750
Exchange rate movement (251) (506) (839)
Cash and cash equivalents at 11 August 2007 8 (3,109) 6,519 13,513
Notes to the Interim Financial Statements
For the 28 weeks ended 11 August 2007
1. Basis of preparation
a. Reporting entity
Ted Baker PLC is a company domiciled in the United Kingdom. The condensed
half-yearly financial statements of the Group as at and for the 28 weeks ended
11 August 2007 comprise the Group and its subsidiaries (together referred to as
the "Group").
The group financial statements as at and for the 52 weeks ended 27 January 2007
are available upon request from the Company's registered office at Ted Baker
PLC, The Ugly Brown Building, 6a St Pancras Way, London NW1 0TB or at
www.tedbaker.com.
b. Statement of compliance
These condensed group half-yearly financial statements have been prepared in
accordance with "IAS 34 Interim Financial Reporting" as adopted by the EU and
the requirements of the Disclosures and Transparency Rules. They do not include
all of the information required for full annual financial statements and should
be read in conjunction with the group financial statements as at and for the 52
weeks ended 27 January 2007. These condensed group half-yearly financial
statements were approved by the Board of Directors on 4 October 2007.
The comparative figures for the 52 weeks ended 27 January 2007 are not the
Company's statutory accounts for that financial year. Those accounts have been
reported on by the Company's auditors and delivered to the registrar of
companies. The report of the auditors was (i) unqualified; (ii) did not include
a reference to any matters to which the auditors drew attention by way of
emphasis without qualifying their report; and (iii) did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.
The results for each half year have not been audited but have been reviewed by
the auditors in accordance with the Auditing Practices Board guidance on Review
of Interim Financial Information.
c. Significant accounting policies
The accounting policies applied by the Group in these condensed group
half-yearly financial statements are the same as those applied by the Group in
its group financial statements for the 52 weeks ended 27 January 2007 except
that "IFRS 7 Financial Instruments: Disclosures" has been adopted in the current
year.
2. Segment information
28 weeks ended 11 August 2007 - Unaudited Retail Wholesale Total
#'000 #'000 #'000
Revenue 45,421 20,789 66,210
Cost of sales (15,945) (12,796) (28,741)
Gross profit 29,476 7,993 37,469
Operating costs (27,031) (5,703) (32,734)
Operating contribution 2,445 2,290 4,735
Other operating income 2,375
Operating profit 7,110
Net finance expenses (95)
Profit before tax 7,015
Total assets 51,864 23,508 75,372
Total liabilities (20,015) (9,161) (29,176)
31,849 14,347 46,196
Capital expenditure 4,188 294 4,482
Depreciation 2,328 164 2,492
28 weeks ended 12 August 2006 - Unaudited Retail Wholesale Total
#'000 #'000 #'000
Revenue 39,448 21,678 61,126
Cost of sales (14,089) (12,509) (26,598)
Gross profit 25,359 9,169 34,528
Operating costs (23,566) (5,767) (29,333)
Operating contribution 1,793 3,402 5,195
Other operating income 1,790
Operating profit 6,985
Net finance expenses (22)
Profit before tax 6,963
Total assets 44,484 23,518 68,002
Total liabilities (14,362) (7,893) (22,255)
30,122 15,625 45,747
Capital expenditure 2,345 203 2,548
Depreciation 2,011 174 2,185
52 weeks ended 27 January 2007 - Audited Retail Wholesale Total
#'000 #'000 #'000
Revenue 89,187 36,461 125,648
Cost of sales (31,173) (20,813) (51,986)
Gross profit 58,014 15,648 73,662
Operating costs (48,054) (9,995) (58,049)
Operating contribution 9,960 5,653 15,613
Other operating income 4,436
Operating profit 20,049
Net finance income 1
Profit before tax 20,050
Total assets 53,095 20,518 73,613
Total liabilities (15,852) (6,480) (22,332)
37,243 14,038 51,281
Capital expenditure 4,603 318 4,921
Depreciation 3,724 257 3,981
3. Finance income and expenses
Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 52 weeks ended
11 August 2007 12 August 2006 27 January 2007
#'000 #'000 #'000
Finance income
- Interest receivable 66 73 192
66 73 192
Finance expenses
- Interest payable (138) (10) (67)
- Exchange rate movement (23) (85) (124)
(161) (95) (191)
4. Earnings per share
Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 52 weeks ended
11 August 2007 12 August 2006 27 January 2007
No. No. No.
Number of shares:
Weighted number of ordinary shares outstanding 42,151,897 42,451,893 42,594,516
Effect of dilutive options 269,329 223,064 320,881
Weighted number of ordinary shares outstanding
- diluted 42,421,226 42,674,957 42,915,397
Earnings: #'000 #'000 #'000
Profit for the period, basic and diluted 4,838 4,831 14,421
Basic earnings per share 11.5p 11.4p 33.9p
Diluted earnings per share 11.4p 11.3p 33.6p
5. Dividends per share
Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 52 weeks ended 27
11 August 2007 12 August 2006 January 2007
#'000 #'000 #'000
Final dividend paid for the prior year of 10.3p 4,322 3,501 3,501
per ordinary share (2006: 8.2p)
Interim dividend paid 2007: #Nil (2006: #Nil) - - 1,834
4,322 3,501 5,335
The Board has declared an interim dividend of 5.0p per share (2006: 4.3p)
payable on the 30 November 2007 to shareholders on the register at the close of
business on 2 November 2007.
6. Income tax expense
The Group's consolidated effective tax rate in respect of continuing operations
for the 28 weeks ended 11 August 2007 was 31.0%, which is consistent with the
rate for the 28 weeks ended 12 August 2006 (52 weeks ended 27 January 2007:
28.1%).
The lower rate for the 52 weeks ended 27 January 2007 was due to a deferred tax
adjustment on the recognition of tax losses in overseas subsidiaries. The
underlying effective rate was 30.9%.
The reduction in the UK rate of income tax from 30% to 28% enacted in the 2007
Finance Act is due to become effective in April 2008. The impact of this is not
considered to be significant for the effective Group rate for the 28 weeks ended
11 August 2007.
7. Share based payments
Equity settled awards are granted to employees in the form of share options or
share awards. Share options are granted at an option price equal to the Company
share price at the grant date, or at a discount of up to 20% in the case of SAYE
share options. No consideration is payable when share awards vest. The vesting
period is generally between three and five years and share options expire
between seven and ten years after grant. Awards will also expire if the employee
leaves the Group prior to the vesting date.
The terms and conditions of the grant made during the 28 weeks ended 11 August
2007 are as follows:
Grant date Type of award Number of shares Vesting conditions Vesting period
23 March 2007 Share award 139,515 Growth in earnings per 50% after three years
share over three and the balance one year
accounting periods later
The range of inputs into the Black-Scholes model were as follows:
At 11 August 2007
Share price 611.50p
Exercise price 0
Risk free interest rate 5.29%
Expected life of awards 3-4 Years
Share price volatility 20.9% - 22.5%
Dividend yield 2.96%
The basis of measuring fair value is consistent with that disclosed in the
consolidated financial statements for the 52 weeks ended 27 January 2007.
8. Reconciliation of cash and cash equivalents per balance sheet to the
cash flow statement
Unaudited Unaudited Audited
28 weeks 28 weeks 52 weeks ended
ended 11 August ended 12 August 27 January
2007 2006 2007
#'000 #'000 #'000
Cash and cash equivalents per balance sheet 5,780 6,801 13,513
Bank overdraft (8,889) (282) -
Cash and cash equivalents per cash flow (3,109) 6,519 13,513
statement
9. 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.
10. Share capital
The Company acquired 830,807 treasury shares (2006: 150,000) and disposed of
149,205 treasury shares (2006: 1,160,000) in the 28 weeks ended 11 August 2007.
11. Related Parties
The Company has a related party relationship with its directors and executive
officers.
Directors of the Company and their immediate relatives control 40.1 per cent of
the voting shares of the Company.
At 11 August 2007, the main trading company owed the parent company #7,815,000
(12 August 2006: #9,202,000, 27 January 2007: #9,757,000). The main trading
company was owed #12,012,000 (12 August 2006: #9,626,000, 27 January 2007:
#10,779,000) from the other subsidiaries within the Group.
Transactions between subsidiaries were priced on an arms length basis.
Responsibility statement of the directors in respect of the half-yearly
financial report
We, the directors of the Company, confirm that to the best of our knowledge:
(a) The condensed set of financial statements has been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the EU;
(b) The interim management report includes a fair review of the information
required by DTR 4.2.7R, being an indication of important events that have
occurred during the first 28 weeks of the financial year and their impact on the
condensed set of financial statements and a description of the principal risks
and uncertainties for the remaining 24 weeks of the year; and
(c) The interim management report includes a fair review of the information
required by DTR 4.2.8R, being disclosure of related party transactions and
changes therein since the last annual report.
By order of the Board
R S Kelvin L D Page
Chief Executive Finance Director
4 October 2007 4 October 2007
Independent Review Report to Ted Baker PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the 28 weeks ended 11 August
2007 which comprises the Group Income Statement, the Group Statement of Changes
in Equity, the Group Balance Sheet, the Group Cash Flow Statement and the
related explanatory notes. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Disclosure
and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("
the UK FSA"). Our review has been undertaken so that we might state to the
company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company for our review work, for
this report, or for the conclusions we have reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the
EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an
audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the 28 weeks ended 11 August 2007 is not prepared, in all material
respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK
FSA.
KPMG Audit Plc
Chartered Accountants
8 Salisbury Square
London
EC4Y 8BB
4 October 2007
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UUGPAUUPMPUW
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