RNS Number:0019C
Ted Baker PLC
03 October 2002
3 October 2002
Ted Baker PLC
Interim Results for the 28 weeks to 10 August 2002
Highlights
* Turnover up 14.6% to #31.8m (2001: #27.8m)
* Profit before tax increased by 19.2% to #3.0m (2001: #2.5m)
* Basic earnings per share up 23.8% at 5.2p (2001: 4.2p)
* Interim dividend up 7.4% to 2.9p per share (2001: 2.7p per share)
* Expansion of the New York store from 1,000 sq ft to 5,000 sq ft
* Development of a 7,500 sq ft store in Covent Garden to accommodate all of
our collections
Commenting, Ray Kelvin, Chief Executive, said:
"I am pleased to announce another strong trading performance for Ted Baker in
the first half of this financial year. These results reflect our policy of
careful brand management and organic development both in the UK and in the USA.
We are excited with our new store in Covent Garden which we expect to open
before Christmas and will showcase the full range of the brand for the first
time in a very special environment"
Enquiries:
Ted Baker Tel: 020 7796 4133 on Thursday 3 October 2002
Ray Kelvin, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler 020 7796 4133
Piers Hooper / Noemie de Andia
Print resolution images are available for the media to view and download free of
charge from www.vismedia.co.uk.
CHAIRMAN'S STATEMENT
I am pleased to announce another strong trading performance for Ted Baker in the
first half of this financial year. These results underline once more the success
of our policy of careful brand management and the strength of our business
across our three distinct distribution channels, retail, wholesale and
licensing. Our collections have performed well over the period, demonstrating
the strength and appeal of the Ted Baker brand. Our strategy has enabled us to
continue to extend our ranges, launch new collections and expand our
distribution channels. We are also pleased to announce that we have secured a
7,500 sq ft store in Covent Garden which will enable us to present for the first
time all of our collections in one exciting retail environment.
FINANCIAL HIGHLIGHTS
Turnover increased by 14.6% to #31.8m (2001: #27.8m) in the 28 weeks to 10
August 2002, driven by growth in both the retail and wholesale businesses.
Operating profit was #3.3m compared to #2.8m for the same period last year, an
increase of 15.1%
Underlying retail and wholesale gross margins were both ahead of last year
resulting in an increased composite gross margin of 58.3% (2001: 55.7%). This
increase reflects continuing buying efficiencies, an increase in retail sales as
a proportion of total sales and a change in the wholesale sales mix.
Profit before tax for the period improved by 19.2% to #3.0m (2001: #2.5m). Basic
earnings per share increased by 23.8% to 5.2p (2001: 4.2p).
DIVIDENDS
The Board has declared an increased interim dividend of 2.9p per share (2001:
2.7p) payable on 29 November 2002 to shareholders on the register at the close
of business on 1 November 2002.
RETAIL
The retail division, comprising nineteen stores, five outlet stores and thirty
nine concessions, performed well over the period reflecting the success of our
collections and the appeal of our unique store environment. Retail sales were up
15.9% to #21.5m (2001: #18.6m) with strong growth in all collections. Retail
gross margins were 65.7% (2001: 64.6%) reflecting continued buying efficiencies.
Average retail square footage increased by 19.1% to 68,317 sq ft (2001: 57,384
sq ft). Sales per square foot were #315 (2001: #324), reflecting a continued
investment in larger stores and concessions which have below average sales per
square foot.
During the period we opened five concessions and one store at Heathrow Terminal
4, bringing the total number of UK stores to eighteen. Improvement in our
current store portfolio continued with the refurbishment of the Liverpool store,
which reopened in March 2002. The New York store, located in SoHo, was also
refurbished and expanded from 1,000 sq ft to 5,000 sq ft through the acquisition
of an adjacent store. The store has traded well since reopening in June 2002 and
provides a showcase for all of our collections, supporting our licensing
strategy in the American market.
WHOLESALE
The wholesale division made further progress demonstrating the strength and
appeal of the Ted Baker brand. Wholesale sales were up by 11.9% to #10.3m (2001:
#9.2m) and up by 22.2% after allowing for the transfer of the footwear business
to a licensee. The Ted Baker brand recorded strong growth across all collections
with notable performances by the Childrenswear, Accessories and Jean
collections. Gross margins were 42.9% (2001: 37.9%), reflecting improved buying
efficiencies and changes in the wholesale mix, including the transfer of the
footwear business.
The number of trustees, or wholesale outlets, for the principal collections in
the UK increased by 11% to 635 (2001: 572). Average sales per outlet increased
by 21.3% to #14,179 (2001: #11,685).
LICENCE INCOME
Licence income increased by 28.2% to #0.9m (2001: #0.7m) over the period, driven
by continued development of our core licence ranges and contributions for the
first time from the footwear and watch licences.
Our US licensee continued to make encouraging progress during the period despite
a difficult economic and political backdrop. Ted Baker Menswear was rolled out
from 8 to 21 Bloomingdales ahead of schedule reflecting a good customer
response. Sub-licences for formal shirts and for ties have been signed and will
increase our presence in leading department stores.
We successfully transferred our wholesale footwear business and our new licensee
has made a very encouraging start. Our exciting new watch collections for men
and women have also been very well received. Ted Baker Skinwear, our licensed
fragrance range, has continued to prove popular with our customers and we have
expanded the Ted Baker Eyewear collection with the introduction of an ophthalmic
range.
COLLECTIONS
Sales of Ted Baker Menswear in the period increased by 17.0% and Womenswear also
enjoyed a strong performance as sales increased by 17.7%. Womenswear now
represents 44.4% of our total sales (2001: 43.2%). Sales of other collections,
comprising Childrenswear, Homeware and Footwear, were #1.5m (2001: #1.9m), an
increase of 13.2%, after adjusting for the transfer of the wholesale footwear
business. Other collections now represent 4.6% of sales (2001: 6.8%)
CURRENT TRADING AND PROSPECTS
In the seven weeks to 29 September 2002 since the period end, retail sales were
3.5% ahead of the same period last year. Although sales for the seven weeks have
been disappointing, we believe this has mainly been due to the effect of the
unseasonably warm weather on the early sales of the Autumn/Winter collection and
the last two weeks have seen the trend improve. We are particularly excited that
we expect to open a new store in Covent Garden before Christmas which will
provide a special environment in which to showcase all of our collections.
Wholesale sales were in line with the same period last year reflecting earlier
phasing of deliveries of certain collections last year.
We anticipate the improved margins for both retail and wholesale will continue
in the second half of the year.
We opened our first French store in Paris on 20 September. Located in the heart
of Le Marais, the initial reaction to the store has exceeded our expectations
and our autumn collections have been very well received.
Following the success of our New York store, we are progressing our expansion in
the USA with stores in San Jose (California) and Merrick Park (Miami, Florida),
which are expected to open before the end of the financial year.
The Endurance range has continued to be well received and we have recently
launched the Mark II version of the Endurance suit which will feature in the
forthcoming computer game, 'The Getaway', from Sony. We have also launched a new
after shave for men 'M' and perfume for women 'W' which have been very well
received.
The final outcome for the year will as usual depend on the Christmas period but
we remain confident in our ability to achieve continued growth for the benefit
of our shareholders as we pursue our careful expansion programme of the Ted
Baker brand.
Robert Breare
3 October 2002
Consolidated Profit and Loss Account
for the 28 weeks ended 10 August 2002
unaudited 28 unaudited 28 audited 52
weeks weeks weeks
ended ended ended
10 August 2002 11 August 2001 26 January
#'000 #'000 2002
#'000
Note
Turnover 31,819 27,767 62,095
Cost of sales (13,268) (12,288) (27,166)
---------- ---------- ----------
Gross profit 18,551 15,479 34,929
Distribution costs (11,251) (8,752) (18,423)
Administration expenses (4,948) (4,740) (8,277)
Other operating income 898 837 1,726
---------- ---------- ----------
Operating profit 3,250 2,824 9,955
Net interest payable (226) (287) (519)
---------- ---------- ----------
Profit on ordinary activities 3,024 2,537 9,436
before taxation
Tax on profit on ordinary activities (915) (800) (2,942)
---------- ---------- ----------
Profit on ordinary activities 2,109 1,737 6,494
after taxation
Minority interests 29 (2) 21
Dividends (1,196) (1,103) (3,220)
---------- ---------- ----------
Retained profit for the period 942 632 3,295
====== ====== ======
Basic earnings per share 2 5.2p 4.2p 15.9p
Diluted earnings per share 2 5.1p 4.1p 15.5p
Consolidated Balance Sheet
as at 10 August 2002
unaudited 10 unaudited 11 audited 26
August 2002 August 2001 January 2002
Note #'000 #'000 #'000
Restated
Fixed assets
Tangible assets 13,240 12,489 12,167
Investments - own shares 414 482 446
-------- -------- --------
13,654 12,971 12,613
-------- -------- --------
Current assets
Stock 13,384 15,024 12,318
Debtors 7,239 6,451 5,711
Cash at bank and in hand 1,788 479 3,875
-------- -------- --------
22,411 21,954 21,904
Creditors : amounts falling due within 1 (15,200) (21,872) (14,794)
year
-------- -------- --------
Net current assets 7,211 82 7,110
-------- -------- --------
Total assets less current liabilities 20,865 13,053 19,723
Creditors : amounts falling due after (4,000) - (4,000)
more than 1 year
-------- -------- --------
Net assets 16,865 13,053 15,723
-------- -------- --------
Capital and reserves
Called up share capital 3 2,072 2,063 2,064
Other reserve 3 1,412 910 978
Profit and loss account 3 13,369 10,015 12,638
-------- -------- --------
Equity shareholders' funds 16,853 12,988 15,680
Minority interests 3 12 65 43
-------- -------- --------
16,865 13,053 15,723
======== ======== ========
The group has adopted Financial Reporting Standard 19 on deferred taxation and
consequently the comparative balance sheet has been restated to reflect a prior
year adjustment for the deferred tax liability of #456,000 arising from timing
differences on capital allowances.
Consolidated Cash Flow Statement
for the 28 weeks ended 10 August 2002
unaudited 28 unaudited 28 audited 52
weeks weeks weeks
ended ended ended
10 August 11 August 26 January
2002 2001 2002
#'000 #'000 #'000
Note
Net cash inflow / (outflow) from 4a 735 (1,116) 12,250
operating activities
Returns on investments and servicing of
finance
Interest received 50 19 62
Interest paid (248) (306) (579)
Taxation (1,259) (850) (2,737)
Capital expenditure 4d (1,920) (1,814) (2,651)
Equity dividends paid (2,111) (1,898) (3,012)
---------- ---------- ----------
Cash (outflow) / inflow before financing (4,753) (5,965) 3,333
Shares issued 225 - 30
Debt due after more than one year - - 4,000
---------- ---------- ----------
(Decrease) / increase in cash (4,528) (5,965) 7,363
========== ========== ==========
Notes to the Interim Financial Statements
1. Basis of preparation
The consolidated interim financial statements have been prepared under the
historical cost convention and in accordance with applicable accounting
standards. The accounting policies are consistent with those set out in the
financial statements of Ted Baker PLC for the 52 weeks ended 26 January 2002.
The financial information in this report does not constitute statutory accounts
and does not comprise the group's financial statements for the 52 weeks ended 26
January 2002. The financial statements for Ted Baker PLC for the 52 weeks ended
26 January 2002 have been delivered to the Registrar of Companies. The auditors'
report on these financial statements was unqualified and did not include a
statement under Section 237 (2) or (3) of the Companies Act 1985.
2. Earnings per share
Earnings per share for the 28 weeks ended 10 August 2002, the 28 weeks ended 11
August 2001 and the 52 weeks ended 26 January 2002 have been calculated on
profit on ordinary activities after taxation and on the weighted average number
of ordinary shares outstanding, being 40,981,573 ordinary shares for the 28
weeks ended 10 August 2002, 40,720,156 shares for the 28 weeks ended 11 August
2001 and 40,762,651 shares for the 52 weeks ended 26 January 2002. Own shares
held by employee benefit trusts have been eliminated from the weighted number of
ordinary shares and dividend income arising from these holdings has been
eliminated from the profit on ordinary activities after taxation and minority
interests.
Diluted earnings per share are based on a weighted average number of shares of
41,810,907 for the 28 weeks ended 10 August 2002, 41,758,186 for the 28 weeks
ended 11 August 2001 and 41,799,346 for the 52 weeks ended 26 January 2002.
3. Capital and reserves
Share capital Other reserves Profit and Minority
loss account interests
#'000 #'000 #'000 #'000
At 26 January 2002 2,064 978 12,638 43
Retained profit for the period - - 942 (29)
Shares issued 8 434 (217) -
Exchange rate movement - - 6 (2)
---------- ---------- ---------- ----------
At 10 August 2002 2,072 1,412 13,369 12
====== ====== ====== ======
4. Notes to the Consolidated Cashflow Statement
for the 28 weeks ended 10 August 2002
28 weeks ended 28 weeks ended 52 weeks ended
10 August 2002 11 August 2001 26 January 2002
#'000 #'000 #'000
a) Reconciliation of operating profit to net
cash inflow / (outflow) from
operating activities
Operating profit 3,250 2,824 9,955
Depreciation charges 1,554 1,122 2,319
Loss / (profit) on sale of tangible fixed assets 9 (2) (2)
(Increase) / decrease in stock (1,074) (2,369) 338
(Increase) / decrease in debtors (2,195) (616) 121
Decrease in creditors (809) (2,075) (481)
---------- ---------- ----------
735 (1,116) 12,250
========== ========== ==========
b) Analysis of movements in cash
during the year
Balance at beginning of the period (125) (3,491) (3,491)
Net cash (outflow) / inflow (4,528) (5,965) 7,363
Exchange difference (12) 3 3
Debt due after more than one year - - (4,000)
---------- ---------- ----------
Balance at end of period (4,665) (9,453) (125)
========== ========== ==========
c) Analysis of the balance of cash as shown
in the balance sheet
Cash at bank and in hand 1,788 479 3,875
Bank overdraft (2,453) (9,932) -
Debt due after more than one year (4,000) - (4,000)
---------- ---------- ----------
(4,665) (9,453) (125)
========== ========== ==========
d) Capital expenditure
Payments to acquire tangible fixed assets (1,952) (1,826) (2,741)
Receipts from sale of tangible fixed assets - 6 42
Sale of own shares 32 6 48
---------- ---------- ----------
(1,920) (1,814) (2,651)
========== ========== ==========
5. 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
OTB.
This information is provided by RNS
The company news service from the London Stock Exchange
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