RNS Number:3166Q
Ted Baker PLC
18 March 2008
Ted Baker PLC
Preliminary Results for the 52 weeks ended 26 January 2008
Highlights
* Strong international growth of the Ted Baker brand through
multi-channel distribution strategy
* Excellent performance from our retail division with sales up 15.5%
* Launch of first standalone Womenswear store in Langley Court, Covent
Garden
* New retail stores opened in Dublin, Gatwick North, Brighton and
Aventura Mall Florida
* Further expansion in Middle East and Asia with 7 further licensed
stores opened
* Licence income up 32.5%, including first year of contribution from
retail licence agreements
* Opening of first store in Melbourne, Australia
2008 2007 Change
Group Revenue �142.2m �125.6m + 13.2%
Profit Before Tax �22.1m �20.1m + 10.0%
Basic EPS 36.1p 33.9p + 6.5%
Proposed Final Dividend 11.4p 10.3p +10.7%
Cash Balance �13.1m �13.5m - 3.0%
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"I am delighted to report yet another year of success for Ted Baker as we
continue the careful international expansion of the brand.
The reaction to our Spring Summer 2008 collection has been encouraging with
retail sales ahead 16.1% on the same period last year.
We believe that the strength of our brand and our robust business model mean we
are well placed to navigate the current uncertain economic outlook. At this
early stage, we look forward to another year of growth and development of the
Ted Baker brand."
Enquiries:
Ted Baker PLC Tel: 020 7796 4133 on 18 March 2008 only
Ray Kelvin, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler Tel: 020 7796 4133
Sandrine Gallien / Kate Hough
CHAIRMAN'S STATEMENT
I am delighted to report another successful year for Ted Baker. Through our
proven multi-channel distribution strategy we carefully continue to expand our
business both in the UK and internationally.
Our retail and licence divisions have once again delivered an excellent
performance with retail sales increasing by 15.5% and licence income increasing
by 32.5%.
Wholesale sales rose by 7.5%, which was ahead of our expectations and we have
been pleased by growth in certain areas of our wholesale business. However,
market conditions still provide challenges for some of our wholesale customers
and we continue to monitor the profile of our wholesale customers to ensure it
remains appropriate for our brand.
I would like to take this opportunity to thank all the team at Ted Baker for
their hard work, passion and dedication during the year.
Results
Group revenue increased by 13.2% to �142.2m (2007: �125.6m) for the 52 weeks
ended 26 January 2008. Operating profit increased by 10.4% to �22.1m (2007:
�20.0m) and profit before tax increased by 10.0% to �22.1m (2007: �20.1m). Basic
earnings per share increased by 6.5% to 36.1p per share (2007: 33.9p per share).
Dividends
The Board is pleased to recommend a final dividend of 11.4p per share (2007:
10.3p per share) making a total for the year of 16.4p per share (2007: 14.6p per
share) an increase of 12.3% on the previous year. This reflects our more
progressive dividend policy as previously announced. The final dividend will be
payable on 20 June 2008 to those shareholders on the register on 16 May 2008.
Share Buy-back
In line with market practice, the Company will seek to renew the authority from
shareholders to buy back up to 10% of the ordinary issued share capital of the
Company in the next twelve months. As the exercise of such authority could give
rise to an obligation on the part of Ray Kelvin, Founder and Chief Executive of
the Company, to make a mandatory offer under Rule 9 of The City Code on
Takeovers and Mergers, such authority will also be conditional on the Panel on
Takeovers and Mergers agreeing to grant a dispensation from that obligation.
Further details of this will be sent out in a letter accompanying the Notice of
Meeting.
Current Trading and Outlook
The reaction to our Spring Summer 2008 collection has been encouraging with
total retail sales ahead by 16.1% for the first seven weeks, compared with the
same period last year. Retail square footage was some 9.9% higher during this
period compared to last year. This performance has benefited from three stores
which were closed for refurbishment last year being open for the seven week
period this year.
We plan to open seven stores this year and expect retail square footage to
increase by some 30,000 square feet in total by the end of the year. New store
locations will include Heathrow Terminal 5, Cheapside in the City of London,
Belfast, Cambridge, Bristol and White City, London. We will also open a store in
South Molton Street, London featuring our Langley Court Womenswear collection.
Wholesale sales were 21.6% below the same period last year for the first seven
weeks, in part due to the phasing of deliveries. We anticipate that conditions
will remain challenging for some of our wholesale customers and we will continue
to take action in respect of those customers who are no longer appropriate for
our brand. As a result, we expect wholesale sales for 2008 to be below the level
achieved for the period to 26 January 2008.
We have made a satisfactory start to the year and consider that the strength of
our brand and our robust business model mean we are well placed to navigate the
current uncertain economic outlook.
At this early stage, we look forward to another year of growth and development
of the Ted Baker brand.
Robert Breare
Non-Executive Chairman
BUSINESS REVIEW
OUR BUSINESS
Ted Baker is a leading designer brand that operates through three main
distribution channels: retail; wholesale; and licensing. We offer a wide range
of collections including: Menswear; Womenswear; Global; Phormal; Endurance;
Accessories; Lingerie and Underwear; Childrenswear; Fragrance and Skinwear;
Footwear; Eyewear and Watches.
The brand has grown steadily from its origins as a single shirt specialist store
in Glasgow to the global business it is today. We distribute through our own and
licensed retail outlets, leading department stores and selected independents in
Europe, the US and the Middle East and Asia.
Our strategy is to become a leading global designer brand, based on three main
elements:
* considered expansion of the Ted Baker collections. We review our
collections continually to ensure we react to trends and meet our customers
expectations. In addition, we look for opportunities to extend the breadth of
collections and enhance our offer;
* controlled distribution through three main channels: retail;
wholesale; and licensing. We consider each new opportunity to ensure it is right
for the brand and will deliver margin led growth; and
* carefully managed development of overseas markets. We continue to
manage growth in existing territories while considering new territories for
expansion.
Underlying our strategy is an emphasis on design, product quality and attention
to detail, which is delivered by the passion, commitment and dedication of our
teams, licence partners and wholesale customers (trustees).
GLOBAL GROUP PERFORMANCE
Retail
The retail division performed very strongly during the year with sales growth up
15.5% to �103.0m (2007: �89.2m). Average retail square footage rose by 5.8% over
the period to 156,428 sq.ft. (2007: 147,861 sq.ft.). At 26 January 2008, total
retail square footage was 166,761 sq.ft. (2007: 152,937 sq.ft.), representing an
increase of 9.0%. As newer space and overseas stores continue to mature, retail
sales per square foot increased by 9.1% from �603 to �658.
Wholesale
Wholesale sales for the year were 7.5% ahead of last year at �39.2m (2007:
�36.5m), which exceeded our expectations.
Whilst we have seen a reduction in wholesale sales to some traditional customers
and the transfer of some wholesale accounts to retail concessions has continued,
other areas of our wholesale business have performed well. Conditions remain
difficult for some of our wholesale customers and we have continued to take
action in respect of those who are no longer appropriate for our brand.
The reduction was offset by the growth in products supplied to our licence
partners, albeit at lower margins.
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 perfume & fragrance, watches, footwear, eyewear, childrenswear,
lingerie and branded mobile phones.
Licence income for the year was up 32.5% to �5.3m (2007: �4.0m) including a
first full year from the retail licence agreements signed in 2006 with RSH
Limited and Li and Fung Group of Companies. Our other territorial licences have
continued to perform in line with our expectations.
Good performances were delivered across our product licences with our perfume
and fragrance license delivering particularly strong growth.
Product licence income for the period included a contribution from our
collaboration with The Carphone Warehouse Group to launch two Ted Baker branded
mobile phones and a contribution from our new licensed childrenswear collection
exclusive to Debenhams called Baker by Ted Baker, which complements our well
established premium Childrenswear collection and we have been particularly
pleased with progress to date.
We also signed a global watch licence (excluding the UK) with the Advanced Watch
Company Limited which trades as the Geneva Watch Group ("Geneva"). Geneva will
also acquire the rights to the UK on expiry of our existing licence with Zeon
Limited. Geneva is one of the largest designers, manufacturers and marketers of
watches in the world and we are delighted with their commitment to develop the
Ted Baker watch business globally. The licence, which runs for an initial term
of five years is subject to minimum guarantees and may be renewed for a further
five years subject to achieving certain sales targets.
We would like to thank the team at Zeon for their hard work and dedication in
establishing the Ted Baker watch brand in the UK.
Collections
Ted Baker Menswear enjoyed good growth in the period with sales up 11.1% to
�79.3m (2007: �71.4m). Menswear represented 55.8% of total sales (2007: 56.4%).
Ted Baker Womenswear enjoyed excellent growth in the period with sales up 16.8%
to �57.2m (2007: �48.9m). Womenswear represented 40.2% of total sales (2007:
39.6%) reflecting the growing strength of our Womenswear collections.
Sales of other collections, comprising Childrenswear and Footwear were up 7.4%
at �5.7m (2007: �5.3m) and these collections represented 4.0% of our total sales
(2007: 4.0%).
GEOGRAPHIC PERFORMANCE
United Kingdom and Europe
Our UK and Europe retail division delivered a strong performance for the year
with sales up 16.7% to �93.3m (2007: �80.0m).
Average square footage rose by 4.6% over the period to 131,085 sq ft (2007:
125,333 sq ft). At 26 January 2008, total retail square footage was 138,838 sq
ft (2007: 128,481 sq ft) representing an increase of 8.1%. Retail sales per
square foot increased from �638 to �712.
During the year we were delighted to announce the opening of a new store in
Dublin on Grafton Street which has traded ahead of our expectations. We also
opened stores in Brighton and Gatwick North and have been pleased by their
performance to date.
We were also delighted to announce the launch of our standalone store dedicated
purely to Womenswear in Langley Court, Covent Garden. As well as our Womenswear
collections, the store houses an exclusive range of new premium, limited edition
Womenswear products called the Langley Collection, as well as lingerie, footwear
and accessories, showcasing the breadth and depth of our growing Womenswear
collection. 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.
At 26 January 2008 we operated 24 stores (2007: 21), 85 concessions (2007: 78)
and 10 outlet stores (2007: 8).
US
Our US retail division has delivered a strong performance for the period. Sales
increased by 13.8% to $19.5m against $17.1m last year which in sterling was
equivalent to sales up 5.6% to �9.7m (2007: �9.2m).
During the period we were delighted to announce the opening of a store in
Aventura Mall, Florida. We now have 8 stores across the United States and will
continue to review suitable opportunities to further our presence here, as and
when they arise.
Average square footage rose by 9.9% over the period to 24,764 sq ft (2007:
22,528 sq ft). At 26 January 2008, total retail square footage was 26,423 sq ft
(2007: 24,456 sq ft). Retail sales per square foot increased from $760 to $787.
Hartmarx Corporation, our US wholesale licencee, continues to make progress in
developing our brand in North America.
Middle East , Asia and Australasia
We have continued with the careful expansion of the Ted Baker brand across the
Middle East and Asia through our territorial licence partners RSH Limited and Li
and Fung Group of Companies. We work closely with them to ensure that the
visual merchandising of the stores and the training of the teams reflect the Ted
Baker ethos and culture.
During the period we opened a further 7 stores through these licence partners,
in Dubai, Malyasia (3), Taiwan, Singapore and Hong Kong and three concessions in
Taiwan (2) and Thailand. At the year end the total number of stores and
concessions in these territories was 17.
In October 2007 we were also pleased to announce the opening of our first store
in Melbourne Australia, through a joint venture with our licence partner in the
territory and we have been pleased with its performance to date.
FINANCIAL REVIEW
Gross Margin
Retail gross margins were in line with last year at 64.9% (2007: 65.0%). The
wholesale gross margin was down at 40.3% (2007: 42.9%), largely as a result of
increased sales to our licence partners in the Middle East and Asia at lower
than average margins. The composite gross margin was 58.1% (2007: 58.6%) mainly
reflecting the reduction in the wholesale margin.
Operating Expenses
Operating expenses rose by 14.0% to �66.2m (2007: �58.0m). Distribution costs,
which include the costs of retail stores, outlets and concessions increased by
16.7% to �48.3m (2007: �41.4m), which was above the 5.8% increase in average
retail selling space due to continued investment in our distribution centres,
store refurbishments, higher turnover rents due to performance and above average
increases in rates. Administration expenses increased by 7.2% to �17.8m (2007:
�16.6m), reflecting the increased activity of our business and expansion in the
UK, Middle East and Asia.
Finance Income and Expenses
The net interest payable during the year of �0.2m, against net interest
receivable in the prior year (2007: �0.1m), reflected the effect of purchase of
own shares and increased capital expenditure on cash resources.
Taxation
The tax charge for the year was �6.8m (2007: �5.6m), an effective tax rate of
30.9% (2007: 28.1%). The effective rate was higher than last year as the 2007
rate reflected a deferred tax adjustment on the recognition of tax losses in
overseas subsidiaries. Excluding this, our underlying effective rate in 2007 was
30.9 %.
Cash Flow and Working Capital
We continued to focus on strong cash management and net cash generated from
operations was �19.5m (2007: �13.9m), which reflected a small increase in
working capital requirements and lower tax payable during the year.
Inventory levels increased by �1.5m or 5.4% which was below the growth of the
business during the year.
Capital expenditure was �8.8m (2007: �4.9m) and largely comprised investment in
new retail stores. Some �1.9m of capital expenditure related to stores that will
open in the early part of 2008.
Shareholder Return
Basic earnings per share increased by 6.5% to 36.1p per share (2007: 33.9p per
share), which is lower than the increase in profit before tax due to the effect
of a higher tax charge in 2008. Excluding the impact of these, basic earnings
per share would show an underlying increase of 10.7%.
The proposed final dividend per share has increased by 10.7% from 10.3p to
11.4p. Free cash flow per share, which is calculated using the net cash
generated from operating activities and interest received, increased by 39.3%
from 32.6p to 45.4p primarily reflecting the higher cash generated from
operating activities.
Group Income Statement
For the 52 weeks ended 26 January 2008
52 weeks ended 26 52 weeks ended 27
January January
2008 2007
Note
�'000 �'000
Revenue 2 142,231 125,648
Cost of sales (59,560) (51,986)
Gross profit 82,671 73,662
Distribution costs (48,320) (41,404)
Administrative expenses (17,844) (16,645)
Other operating income 5,635 4,436
Operating profit 22,142 20,049
Finance income 4 292 192
Finance expenses 4 (387) (191)
Share of profit of jointly controlled entity, net of tax 10 -
Profit before tax 3 22,057 20,050
Income tax expense (6,815) (5,634)
Profit for the period 15,242 14,416
Attributable to:
Equity shareholders of the parent company 15,196 14,421
Minority interests 46 (5)
Profit for the period 15,242 14,416
Earnings per share
Basic 5 36.1p 33.9p
Diluted 5 35.9p 33.6p
The Income Statement relates to continuing operations
Group Statement of Changes in Equity
For the 52 weeks ended 26 January 2008
Share Share Available Cash flow Translation Retained Total equity Minority Total
capital premium for sale hedging reserve earnings attributable interest equity
reserve reserve to equity
shareholders
of the parent
�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000
Balance at 27
January 2007
(restated) 2,160 9,052 - (90) (493) 40,709 51,338 (57) 51,281
Share option
charge - - - - - 234 234 - 234
Movement on
current/
deferred tax on
share options - - - - - (80) (80) - (80)
Effective
portion of
changes in fair
value of cash
flow hedges - - - 590 - - 590 - 590
Net change in
fair value of
cash flow hedges
transferred to
profit or loss - - - (249) - - (249) - (249)
Exchange rate
movement - - - - (27) - (27) - (27)
Income and
expense
recognised
directly in
equity - - - 341 (27) 154 468 - 468
Profit for the
period - - - - - 15,196 15,196 46 15,242
Own shares
acquired - - - - - (4,936) (4,936) - (4,936)
Transfer of
treasury shares
from PLC to
Employee Benefit
Trust - 85 - - - - 85 - 85
Disposal of own
/ treasury
shares - - - - - (7) (7) - (7)
Dividends paid - - - - - (6,421) (6,421) - (6,421)
Balance at 26
January 2008 2,160 9,137 - 251 (520) 44,695 55,723 (11) 55,712
Group Statement of Changes in Equity
For the 52 weeks ended 27 January 2007
Restated Share Share Available Cash flow Translation Retained Total equity Minority Total
capital premium* for sale hedging reserve earnings* attributable interest equity
reserve reserve (Restated) to equity
(Restated) shareholders
of the parent
�'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
charge - - - - - 332 332 - 332
Movement on
current/deferred
tax on share
options - - - - - (23) (23) - (23)
Net change in
fair value of
available for
sale financial
assets - - (176) - - - (176) - (176)
Effective
portion of
changes in fair
value of cash
flow hedges - - - (78) - - (78) - (78)
Net change in
fair value of
cash flow hedges
transferred to
profit or loss - - - (5) - - (5) - (5)
Exchange rate
movement - - - - (505) - (505) - (505)
Income and
expense
recognised
directly in
equity - - (176) (83) (505) 309 (455) - (455)
Profit for the
period - - - - - 14,421 14,421 (5) 14,416
Shares issued 11 1,045 - - - - 1,056 - 1,056
Own shares
acquired
(restated)* - - - - - (3,438) (3,438) - (3,438)
Transfer of
treasury shares
from PLC to
Employee Benefit
Trust (restated)* - 1,024 - - - - 1,024 - 1,024
Disposal of own
/ treasury
shares
(restated)* - - - - - 1,841 1,841 - 1,841
Dividends paid - - - - - (5,335) (5,335) - (5,335)
Balance at 27
January 2007
(restated) 2,160 9,052 - (90) (493) 40,709 51,338 (57) 51,281
* For further details see note 8
Group Balance Sheet
At 26 January 2008
Restated*
26 January 2008 27 January 2007
Note
�'000 �'000
Non-current assets
Intangible assets 543 482
Property, plant and equipment 23,061 19,209
Investments in equity accounted investee 10 -
Deferred tax assets 336 525
Prepayments 849 -
24,799 20,216
Current assets
Inventories 29,315 27,825
Trade and other receivables 14,128 11,843
Amount due from equity accounted investee 178 -
Derivative financial assets 603 216
Cash and cash equivalents 7 13,105 13,513
57,329 53,397
Current liabilities
Trade and other payables* (21,777) (20,274)*
Income tax payable* (3,418) (1,708)*
Derivative financial liabilities (378) (307)
(25,573) (22,289)
Non-current liabilities
Deferred tax liabilities (843) (43)
(843) (43)
Total liabilities (26,416) (22,332)
Net assets 55,712 51,281
Equity
Share capital 2,160 2,160
Share premium account* 9,137 9,052*
Other reserves 251 (90)
Translation Reserve (520) (493)
Retained earnings* 44,695 40,709*
Total equity attributable to equity shareholders of the 55,723 51,338
parent company
Minority interests (11) (57)
Total equity 55,712 51,281
* For further details see note 8. These reclassifications did not result in a
change in shareholders funds or net assets at 27 January 2007.
Group Cash Flow Statement
For the 52 weeks ended 26 January 2008
Restated*
52 weeks ended 26 52 weeks ended 28
January January
2008 2007
Note
�'000 �'000
Profit for the period 15,242 14,416
Adjusted for:
Income tax expense 6,815 5,634
Depreciation 4,807 3,981
Loss on disposal of property, plant & equipment 184 63
Share option charge 234 332
Net finance gains / (losses) 217 (125)
Net change in cash flow hedges 341 (83)
Share of profit in joint venture (10) -
Increase in inventories (1,449) (4,714)
Increase in non-current prepayments (789) -
(Increase) / decrease in trade and other receivables (3,050) 903
Increase / (decrease) in trade and other payables 1,324 (554)
Interest paid (344) (64)
Income taxes paid (4,068) (5,873)
Net cash generated from operating activities 19,454 13,916
Cash flow from investing activities
Purchases of property, plant & equipment (8,709) (4,970)
Proceeds from sale of property, plant & equipment - 26
Interest received 171 164
Net cash from investing activities (8,538) (4,780)
Cash flow from financing activities
Own shares acquired (4,936) (3,438)
Proceeds from option holders for exercise of options* 78 3,921*
Loan repayment - (750)
Dividends paid (6,421) (5,335)
Net cash from financing activities (11,279) (5,602)
Net increase in cash and cash equivalents (363) 3,534
Cash and cash equivalents at 27 January 2007 / 28 January 13,513 10,818*
2006*
Exchange rate movement (45) (839)
Cash and cash equivalents at 26 January 2008 / 27 January 7 13,105 13,513
2007
* For further details see note 8. These restatements did not result in a change
in the 'net cash movement' for the period disclosed in the cash flow statement
of 27 January 2007.
Notes
1) Basis of preparation
EU law (IAS Regulation EC 1606/2002) requires that the Group financial
statements of the Group, for the 52 weeks ended 26 January 2008, are prepared in
accordance with International Financial Reporting Standards (IFRSs) adopted for
use in the EU ("adopted IFRSs").
This financial information has been prepared on the basis of the recognition and
measurement requirements of adopted IFRSs as at 26 January 2008.
The financial information set out above does not constitute the Group's
statutory accounts for the 52 weeks ended 26 January 2008 or 27 January 2007.
The annual financial information presented in this preliminary announcement for
the 52 weeks ended 26 January 2008 is based on, and is consistent with, that in
the Group's audited financial statements for the 52 weeks ended 26 January 2008,
and those financial statements will be delivered in due course. The auditor's
report on those financial statements is unqualified and does not contain any
statement under Section 237 of the Companies Act 1985.
Statutory accounts for 2006 have been delivered to the registrar of companies.
The auditors have reported on those accounts; their reports were i) unqualified
and, ii) did not contain statements under section 237 (2) or (3) of the
Companies Act 1985.
2) Segment information
The revenue and profit before taxation are attributable to the Group's principal
activities, the design and contracted manufacture of high quality fashion
clothing and related accessories for wholesale and retail customers.
a) Analysis of revenue by brand
52 weeks ended 26 52 weeks ended 27
January January
2008 2007
�'000 �'000
Menswear 79,312 71,359
Womenswear 57,181 48,947
Other 5,738 5,342
142,231 125,648
b) Primary reporting format - divisional segments
52 weeks ended 26 January 2008 Retail Wholesale Total
�'000 �'000 �'000
Revenue 103,036 39,195 142,231
Cost of sales (36,168) (23,392) (59,560)
Gross profit 66,868 15,803 82,671
Operating costs (55,841) (10,323) (66,164)
Operating profit before other operating income 11,027 5,480 16,507
Other operating income 5,635
Operating profit 22,142
Operating profit attributable to joint venture 10
Net finance income (95)
Profit before taxation 22,057
Income tax expense (6,815)
Profit for the period 15,242
Segment Assets 60,581 21,023 81,604
Investment in Equity Accounted investee 10
Amounts due from Equity Accounted investee 178
Deferred tax assets 336
Total assets 82,128
Segment Liabilities (16,050) (6,105) (22,155)
Deferred tax liabilities and income tax payable (4,261)
Total liabilities (26,416)
Net Assets 55,712
Capital expenditure 8,375 460 8,835
Depreciation 4,579 228 4,807
Restated* Restated*
52 weeks ended 27 January 2007 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 profit before other operating income 9,960 5,653 15,613
Other operating income 4,436
Operating profit 20,049
Net finance expenses 1
Profit before taxation 20,050
Income tax expense (5,634)
Profit for the period 14,416
Segment assets* 52,722* 20,366* 73,088
Deferred tax assets* 525*
Total assets 73,613
Segment liabilities* (14,609)* (5,972)* (20,581)
Deferred tax liabilities and income tax payable* (1,751)*
Total liabilities (22,332)
Net Assets 51,281
Capital expenditure 4,603 318 4,921
Depreciation 3,724 257 3,981
Wholesale sales are shown after the elimination of inter-company sales of
�4,855,000 (2007: �2,801,000).
* In accordance with IAS14, "segmental reporting", segmental assets and
liabilities do not include current and deferred tax balances. Prior year
balances have been restated accordingly.
c) Secondary reporting format - geographical segments by origin
52 weeks ended 26 January 2008
United Kingdom Other Total
�'000 �'000 �'000
Revenue 127,901 14,330 142,231
Cost of sales (53,638) (5,922) (59,560)
Gross profit 74,263 8,408 82,671
Operating costs (58,558) (7,606) (66,164)
Operating profit before other operating income 15,705 802 16,507
Other operating income 5,635
Operating profit 22,142
Net finance income (95)
Operating profit attributable to joint venture 10
Profit before taxation 22,057
Income tax expense (6,815)
Profit for the period 15,242
Segment Assets 67,553 14,051 81,604
Investment in Equity Accounted investee 10
Amounts due from Equity Accounted investee 178
Deferred tax assets 336
Total assets 82,128
Segment Liabilities (20,335) (1,820) (22,155)
Deferred tax liabilities and income tax payable (4,261)
Total liabilities (26,416)
Net Assets 55,712
Capital expenditure 6,589 2,246 8,835
Depreciation 4,083 724 4,807
52 weeks ended 27 January 2007 Restated* Restated*
United Kingdom Other Total
�'000 �'000 �'000
Revenue 114,293 11,355 125,648
Cost of sales (47,387) (4,599) (51,986)
Gross profit 66,906 6,756 73,662
Operating costs (51,436) (6,613) (58,049)
Operating profit before other operating income 15,470 143 15,613
Other operating income 4,436
Operating profit 20,049
Net finance expenses 1
Profit before taxation 20,050
Income tax expense (5,634)
Profit for the period 14,416
Segment assets* 62,284* 10,804* 73,088
Deferred tax assets* 525*
Total assets 73,613
Segment liabilities* (19,509)* (1,072)* (20,581)
Deferred tax liabilities and income tax payable* (1,751)*
Total liabilities (22,332)
Net Assets 51,281
Capital expenditure 4,019 902 4,921
Depreciation 3,285 696 3,981
* In accordance with IAS14, "segmental reporting", segmental assets and
liabilities do not include current and deferred tax balances. Prior year
balances have been restated accordingly.
United Kingdom sales are shown after the elimination of inter-company sales of
�4,855,000 (2007: �2,801,000).
Other includes sales arising mainly in the United States. Revenue by destination
is not materially different from revenue by geographic origin.
3) Profit before taxation
52 weeks ended 26 52 weeks ended 27
January January
2008 2007
Profit before taxation is stated after charging:
�'000 �'000
Depreciation 4,807 3,981
Operating lease rentals 10,132 9,238
Fees payable to the company's auditor for the audit of the company's annual 6 6
accounts
Fees payable to the company's auditor for the audit of the company's 67 48
subsidiaries, pursuant to legislation
Fees payable to the company's auditor for other services supplied pursuant to 17 16
legislation
Other services provided 1 35
Loss on disposal of property, plant & equipment 184 63
4) Finance income and expenses
52 weeks ended 26 52 weeks ended 27
January January
2008 2007
�'000 �'000
Finance income
- Interest receivable 170 192
- Net foreign exchange transaction gains 122 -
292 192
Finance expenses
- Interest payable (387) (67)
- Net foreign exchange transaction losses - (124)
(387) (191)
5) Earnings per share
52 weeks ended 26 52 weeks ended 27
January January
2008 2007
No. No.
Number of shares:
Weighted number of ordinary shares outstanding 42,066,481 42,594,516
Effect of dilutive options 254,711 320,881
Weighted number of ordinary shares outstanding - diluted 42,321,192 42,915,397
Earnings:
Profit for the period basic and diluted - �'000 15,196 14,421
Basic earnings per share 36.1p 33.9p
Diluted earnings per share 35.9p 33.6p
Own shares held by the Ted Baker Group Employee Benefit Trust, the Ted Baker
1998 Employee Benefit Trust and treasury shares have been eliminated from the
weighted average number of ordinary shares. The options exercised during the
year and long-term incentive scheme awards distributed were of shares held by
the Trusts.
Diluted earnings per share have been calculated using additional ordinary shares
of 5p each available under the 1997 Unapproved Share Option Scheme, the 1997
Executive Share Option Scheme and the Ted Baker Performance Share Plan.
There were no share related events after the balance sheet date that may affect
earnings per share.
6) Dividends per share
52 weeks ended 52 weeks ended 27
26 January 2008 January 2007
�'000 �'000
Final dividend paid for prior year of 10.3p per ordinary share (2006: 8.2p) 4,322 3,501
Interim dividend paid of 5.0p per ordinary share (2007: 4.3p) 2,099 1,834
6,421 5,335
A final dividend in respect of 2008 of 11.4p per share, amounting to �4,784,244
is to be proposed at the Annual General Meeting on 10 June 2008.
7) Reconciliation of cash and cash equivalents per balance sheet to cash
flow statement
52 weeks ended 52 weeks ended 27
26 January January
2008 2007
�'000 �'000
Cash and cash equivalents per balance sheet / cash flow statement 13,105 13,513
8) Prior year restatements
Group statement of changes in equity
The following presentational changes have been made within the 2008 Group
statement of changes in equity, 2007 comparatives have been restated
accordingly. Amounts previously shown as 'movements in respect of treasury
shares', 'movements in respect of own shares' and 'disposal of own shares' have
been reclassified under the following 3 lines:
* Own shares acquired,
* Transfer of treasury shares from Ted Baker PLC to the Employee Benefit
Trust ("EBT") and;
* Disposal of own shares
Section 162F of the Companies Act 1985 requires amounts received for treasury
shares that are in excess of the cost to be recognised as share premium.
Although the amounts received by the group on the sale of these shares in
satisfaction of share options exercised in the year ended 27 January 2007 were
less than the original cost of the treasury shares, the transfer of shares
between Ted Baker Plc and the Employee Benefit Trust was at an amount greater
than the original cost and therefore resulted in share premium arising. An
amount of �1,024,000 has therefore been reclassified from retained earings to
share premium.
These reclassifications did not result in a change in shareholders funds at 27
January 2007.
Group balance sheet
The presentation of the Group balance sheet within the 2007/2008 financial
statements is consistent with the one presented in the 2006/2007 financial
statements except where noted below. Prior year comparatives have been restated
accordingly:
* An amount of �3,560,000 in respect of 'other taxes and social
security' has been reclassified from 'income tax payable' to 'trade and other
payables' for the year ended 27 January 2007 in accordance with IAS 1.
* An amount of �1,024,000 has been reclassified from 'retained earnings'
to 'share premium account' for the year ended 27 January 2007 as explained
above.
These reclassifications did not result in a change to either net assets or
shareholders funds at 27 January 2007.
Group cash flow statement
The presentation of the Group cash flow statement within the 2007/2008 financial
statements is consistent with the one presented in th 2006/2007 financial
statements except where noted below. Prior year comparatives have been restated
accordingly:
* Amounts previously shown as 'proceeds from issue of ordinary shares' '
sale of own shares', 'shares vested and disposal of own shares' have been
reclassified as 'proceeds from option holders for exercise of options' and '
increase in inter-company balances' in accordance is IAS 7.
* An amount of �750,000 previously separately presented as 'loan
repayment' in the movement of cash and cash equivalents between the year ended
28 January 2006 and 27 January 2007 has now been aggregated with the brought
forward balance as this amount was the opening balance of long term borrowings
at 27 January 2007 and was incorrectly netted off against cash and cash
equivalents.
The restatements above did not result in a change in the "net cash movement" for
the period as disclosed in the cash flow statement of 27 January 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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