TIDMTBK
RNS Number : 4229P
Ted Baker PLC
25 March 2009
25 March 2009
Ted Baker PLC
Annual results for the 53 weeks ended 31 January 2009
Highlights
* Creditable performance from the Ted Baker brand in a very challenging market
* Retail sales up 14.8%
* New retail stores opened in Westfield London including a Ted Baker Pashion
store, South Molton Street London, Heathrow Terminal 5, City of London, Bristol,
Liverpool, Cambridge and Belfast
* Good performance from the Licence division with underlying Licence income up
9.2%
+-----------------------+----------------+----------------+--------------------+
| | 2009 | 2008 | Change |
| | | | |
+-----------------------+----------------+----------------+--------------------+
| Group Revenue | GBP152.7m | GBP142.2m | +7.3% |
| | | | |
+-----------------------+----------------+----------------+--------------------+
| Profit Before Tax and | GBP19.6m | GBP22.1m | -11.4% |
| Impairment* | | | |
+-----------------------+----------------+----------------+--------------------+
| Basic EPS excluding | 33.8p | 36.1p | -6.4% |
| Impairment | | | |
+-----------------------+----------------+----------------+--------------------+
| Profit Before Tax | GBP17.8m | GBP22.1m | -19.5% |
| | | | |
+-----------------------+----------------+----------------+--------------------+
| Basic EPS | 29.6p | 36.1p | -18.0% |
| | | | |
+-----------------------+----------------+----------------+--------------------+
| Proposed Final | 11.4p | 11.4p | - |
| Dividend | | | |
+-----------------------+----------------+----------------+--------------------+
| Cash Balance | GBP4.7m | GBP13.1m | -64.4% |
| | | | |
+-----------------------+----------------+----------------+--------------------+
* Excluding impairment losses of GBP1.8m
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"I am pleased to report that the Group has delivered a good result for the year
in a very challenging environment. This creditable performance can be attributed
to the passion and commitment of our team, the strength of the Ted Baker brand,
our quality and attention to detail and the resilience of our multi-channel
distribution strategy.
The economic climate remains uncertain and our expectations for the year ahead
reflect this. However, we believe the Group is well placed to weather this
difficult environment. We have a strong balance sheet and will continue to
invest in the development of the Ted Baker brand worldwide and take advantage of
opportunities that may arise."
+------------+---------------+
| Enquiries: | |
+------------+---------------+
| | |
+------------+---------------+
| Ted | Tel: |
| Baker | 020 |
| PLC | 7796 |
| | 4133 |
| | on 25 |
| | March |
| | 2009 |
| | only |
+------------+---------------+
| Ray | Tel: |
| Kelvin, | 020 |
| Chief | 7255 |
| Executive | 4800 |
| | thereafter |
+------------+---------------+
| Lindsay | |
| Page, | |
| Finance | |
| Director | |
+------------+---------------+
| | |
+------------+---------------+
| Hudson | Tel: |
| Sandler | 020 7796 4133 |
+------------+---------------+
| Michael | |
| Sandler | |
| / Kate | |
| Hough | |
+------------+---------------+
CHAIRMAN'S STATEMENT
The Group has delivered a good result in a very challenging market. During the
year our trading environment has come under significant and increasing
pressures, particularly in the second half of the financial year. Our creditable
performance can be attributed to the strength of the Ted Baker brand, our
quality and attention to detail and the resilience of our multi-channel
distribution strategy.
Our retail division delivered sales growth of 14.8% to GBP118.2m, on a 18.8%
increase in average retail square footage, as we continued to increase our
presence across the United Kingdom. Our licence division also saw further growth
with licence income up 3.8% to GBP5.5m.
As anticipated, wholesale sales were 12.2% down for the year. The underlying
business of the division continued to perform well, although, the overall result
was offset by the transfer of some wholesale accounts to retail concessions and
the ongoing actions taken in respect of those customers who are no longer
appropriate for our brand.
Results
Group revenue rose by 7.3% to GBP152.7m (2008: GBP142.2m) for the 53 weeks ended
31 January 2009. Profit before tax and impairment fell by 11.4% to GBP19.6m
(2008: GBP22.1m) and profit before tax fell by 19.5% to GBP17.8m (2008:
GBP22.1m).
Basic earnings per share before impairment fell by 6.4% to 33.8p (2008: 36.1p)
and basic earnings per share fell by 18.0% to 29.6p (2008: 36.1p).
The Group has a strong balance sheet and continues to maintain its focus on cash
management. Net cash generated from operations during the period was GBP11.1m
(2008: GBP19.5m).
Dividends
The Board is recommending a final dividend of 11.4p per share (2008: 11.4p per
share) making a total for the year of 16.65p per share (2008: 16.4p per share)
an increase of 1.5% on the previous year. The final dividend will be payable on
19 June 2009 to those shareholders on the register on 15 May 2009.
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.
People
This good result in a challenging environment would not have been possible
without our dedicated and committed team. The enthusiasm of our teams around
the world and their passion for our brand is a key factor in our continued
development. On behalf of the Board, I would like to thank everyone at Ted
Baker for their continuing efforts and hard work during the year.
On 25 February 2009 we were delighted to announce the appointment of Ron Stewart
as an independent non-executive director. Prior to his retirement in 2003, Ron
was Deputy Managing Director Corporate Banking (London) of The Royal Bank of
Scotland PLC and has over 39 years of banking experience. On behalf of my
colleagues, I would like to welcome Ron to the Board and we look forward to his
contribution in the future.
Current Trading and Outlook
Group
The economic climate remains uncertain and our expectations for the current
financial year reflect this.In line with market expectations, results for the
year ending January 2010 will be below the level achieved in the year
ended January 2009. We have taken action to ensure our costs and commitments
remain controlled and in line with the trends we anticipate for 2009. We believe
that we are well prepared to deal with the challenges that lie ahead.
The Group is financially strong and will continue to invest in the development
of the Ted Baker brand worldwide and take advantage of opportunities that may
arise.
Retail
Trading for the year to date is slightly ahead of our expectations. We continue
to experience difficult trading conditions in our overseas markets, offset by a
better than anticipated performance in the UK. Following a strong sale period we
entered the new season with a clean stock position and our Spring / Summer
collections have been well received by our customers.
Wholesale
We also expect our wholesale business to be affected by the current economic
environment. Our wholesale customers are generally cautious in their outlook for
the year and this is being reflected in their overall forward order commitments.
Wholesale sales will also be affected by further transfers to the retail
division, our decision to focus the childrenswear business on licenced product
and the closure of certain accounts no longer appropriate for our brand. As a
result, we anticipate a further fall in wholesale sales in the current year at
least equivalent to that experienced in the prior year.
Licence Income
Our licencees generally continue to report good progress and perform in line
with our expectations, with the exception of our licence partner for North
America, Hartmarx Corporation, who filed for protection under Chapter 11 of the
US Bankruptcy Code.
We intend to make our next interim management statement, covering trading since
the start of the financial year, towards the end of May 2009.
Robert Breare
Non-Executive Chairman
25 March 2009
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
Sales across the retail division rose by 14.8% to GBP118.2m (2008: GBP103.0m).
This good performance was delivered in challenging trading conditions across all
territories. Average retail square footage rose by 18.8% over the period to
185,102 sq ft (2008: 155,849 sq ft). At 31 January 2009, total retail square
footage was 202,206 sq ft (2008: 165,261 sq ft), representing an increase of
22.4% on the prior year. Despite the tough market backdrop we saw only a 3.7%
fall in retail sales per sq ft from GBP651 to GBP627.
The retail gross margin was 63.2% (2008: 64.9%) with an underlying input margin
slightly ahead of last year, diluted by the effect of three outlet stores that
were not open for a full year in the comparable period and a higher level of
promotional activity, necessary given the competitive environment in the second
half of the financial year.
Wholesale
As anticipated, wholesale sales were 12.2% below last year, at GBP34.4m (2008:
GBP39.2m). We estimate that around 70% of this decline arose from actions taken
in respect of customers who are no longer appropriate to the brand. Sales were
also affected by the transfer of some wholesale accounts to retail concessions.
Wholesale gross margins were 42.5% (2008: 40.3%) principally as a result of an
improvement in the underlying input margin due to buying efficiencies.
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 and
lingerie.
Licence income for the year was up 3.8% to GBP5.5m (2008: GBP5.3m) and included
a first full year of contribution from our licensed childrenswear collection
exclusive to Debenhams which continues to perform well. With the exception of
Hartmarx Corporation, our licence partner for North America (see below), all our
other territorial and product licencees have also performed well.
On 23 January 2009, Hartmarx Corporation filed for protection under Chapter 11
of the US Bankruptcy Code. As a result of this we have not recognised the unpaid
royalty income for the period October 2008 to the end of the financial year. At
the date of this announcement the outcome remains uncertain, although we do not
expect it to have a material financial effect on our business.
Our territorial and product licencees, excluding Hartmarx Corporation, were 9.2%
ahead of last year.
During the year we signed a new watch licence for all territories, with the
Advanced Watch Company Limited, trading as the Geneva Watch Company, following
the expiry of the licence with Zeon in November.
Collections
Ted Baker Menswear sales were up 6.9% to GBP84.8m (2008: GBP79.3m). Menswear
represented 55.5% of total sales (2008: 55.8%).
Ted Baker Womenswear sales were up 10.8% to GBP63.3m (2008: GBP57.2m),
reflecting the growing strength of our Womenswear collections supported by our
two standalone stores dedicated purely to Womenswear.Womenswear represented
41.5% of total sales (2008: 40.2%).
Sales of other collections, comprising Childrenswear and Footwear, were GBP4.5m
(2008: GBP5.7m). These collections represented 3.0% of our total sales (2008:
4.0%). Having reviewed our Childrenswear business we have taken the decision to
focus on the Baker by Ted Baker collections at Debenhams and will not be
operating a designer childrenswear business for the foreseeable future.
GEOGRAPHIC PERFORMANCE
United Kingdom and Europe
Our UK and Europe retail division delivered a good performance for the year with
sales up 15.5% to GBP107.8m (2008: GBP93.3m).
Average square footage rose by 20.1% over the period to 157,393 sq ft
(2008: 131,085 sq ft). At 31 January 2009, total retail square footage was
174,148 sq ft (2008: 138,838 sq ft) representing an increase of 25.4%. Retail
sales per square foot decreased from GBP700 to GBP671.
New store openings during the period included 'Ted Baker and Friends', our first
store in the City of London, Ted Baker Pashion located in the White City luxury
village and our second standalone store dedicated purely to Womenswear in South
Molton Street London. Further store openings included Bristol, Cambridge,
Liverpool One, a mainline store in White City, Heathrow Terminal 5 and Belfast.
Also during the period, we opened 24 womenswear concessions in John Lewis.
At 31 January 2009 we operated 32 stores (2008: 23), 124 concessions (2008: 85)
and 10 outlet stores (2008: 10).
Our e-commerce business continues to develop positively and we plan to make
further enhancements to our transactional website site in 2009.
US
Our US retail division has delivered a disappointing performance for the period
in a difficult trading environment. Sales decreased by 2.6% to $19.0m (2008:
$19.5m) but in sterling due to the strengthening of the US Dollar, sales
increased by 8.2% to GBP10.5m (2008: GBP9.7m).
Average square footage rose by 11.9% over the period to 27,709 sq ft (2008:
24,764 sq ft) as a result of the opening of a new Outlet in Las Vegas. Retail
sales per square foot decreased from $787 to $686.
As at 31 January 2009 we operated 8 stores (2008: 8) and 1 outlet store (2008:
0).
Middle East, Asia and Australasia
Through our territorial licence partners Li and Fung Group of Companies and RSH
Limited, we continue to expand carefully the Ted Baker brand across the Middle
East and Asia and we were pleased to announce a further opening in the Dubai
Mall during the year. We saw strong growth in the stores during the year as a
whole, although the deteriorating economic climate began to have a negative
effect on performance towards the end of the year.
The total number of stores and concessions in these territories is now 18 and
we work closely with our partners in these territories to ensure the visual
merchandising of the stores and the training of the teams reflect the Ted Baker
ethos and culture.
Our store in Melbourne Australia, which is operated through a joint venture with
our licence partner in the territory, completed a good first full year of
trading. Our licencee continues to make progress in developing the brand across
the territory.
FINANCIAL REVIEW
Gross Margin
The composite gross margin for the Group was 58.5% (2008: 58.1%), largely as a
result of retail representing a greater proportion of our sales mix, albeit at a
slightly lower gross margin than last year.
The composite gross margin in the United Kingdom increased to 59.1% (2008:
58.1%), whilst the composite gross margin in other territories fell to 54.2%
(2008: 58.7%). The latter result was principally due to the full year impact of
two new outlet stores.
Operating Expenses
Operating expenses rose by 14.8% to GBP75.9m (2008: GBP66.2m). Distribution
costs, which include the costs of retail stores, outlets and concessions
increased by 17.4% to GBP56.7m (2008: GBP48.3m), which was below the 18.8%
increase in average retail selling space due to tight cost management and
certain variable costs moving in line with turnover. Administration expenses
increased by 7.6% to GBP19.2m (2008: GBP17.8m), reflecting the increased
activity of our business.
Other Operating Income
Our territorial licence partner covering North America, Hartmarx Corporation,
filed for protection under Chapter 11 of the US Bankruptcy Code on 23 January
2009. We are monitoring the situation, the outcome of which remains unclear at
the date of this announcement. We have not recognised the unpaid royalty income
for the period October 2008 to the end of the financial year, although excluding
this, we do not anticipate a material financial impact on our business.
Profit Before Tax
Profit before tax and impairment fell by 11.4% to GBP19.6m (2008: GBP22.1m).
This result was after the loss of royalty income in respect of Hartmarx
Corporation, although, this was offset by the foreign exchange gain (see below).
Impairment Losses
The Group incurred a GBP1.8m impairment loss in relation to the carrying value
of a number of retail assets. This accounting charge has no cash flow effect on
the Group.
Finance Income and Expenses
Net interest payable during the year of GBP0.2m was in line with the prior year
(2008: GBP0.2m) and reflected the seasonality of the Group's cashflow.
The foreign exchange gain during the year of GBP0.7m (2008: GBP0.1m) was
principally due to the effect of the strengthening of both the US Dollar and the
Euro on the retranslation of monetary assets and liabilities denominated in
foreign currencies.
Taxation
The Group tax charge for the year was GBP5.2m (2008: GBP6.8m), an effective tax
rate of 29.3% (2008: 30.9%).
The lower effective rate was primarily due to the reduction in UK taxation from
30% to 28% in April 2008. Otherwise, drivers affecting the tax charge for the
Group remain broadly consistent with the prior period and we expect our
effective rate to remain at around 29%.
Working Capital
Total working capital at the balance sheet date, which comprises inventories,
trade and other receivables and trade and other payables increased by GBP6.3m to
GBP28.0m (2008: GBP21.7m). The majority of this increase relates to a one off
contractual change in payment terms. In addition, the strengthening of the US
Dollar and the Euro has increased the sterling value of the working capital.
Cash Flow
Net cash generated from operating activities was GBP11.1m (2008: GBP19.5m). The
decrease on the prior year was principally down to the movement in working
capital as described above, but also reflected the lower profit in the period.
The movement in working capital as per the Group cash flow statement is higher
due to the inclusion of the movement in derivative financial assets and
significant translation differences at the year end.
Capital expenditure of GBP11.8m (2008: GBP8.7m) primarily reflected the opening
of stores, concessions and outlets as demonstrated by the increase in retail
square footage. This expenditure also included some refurbishment of existing
locations.
During the period we acquired 500,000 own shares at a cost of GBP2.0m (2008:
GBP4.9m) to be held in treasury.
Shareholder Return
Basic earnings per share before impairment fell by 6.4% from 36.1p to 33.8p,
which is lower than the decrease in profit before tax due to the effect of the
reduction in UK taxation.
The proposed final dividend per share is unchanged from the prior year at 11.4p
per share. Free cash flow per share, which is calculated using the net cash
generated from activities, was 26.0p (2008: 45.4p).
Currency Management
The most significant exposure to foreign exchange fluctuation relates to
purchases made in foreign currencies, principally the US Dollar and the Euro.
A proportion of the Group's purchases are hedged in accordance with the Group's
risk management policy, typically 12 months in advance. The balance of purchases
is naturally hedged as the business operates internationally and our income is
generated in their currencies.
At the balance sheet date, the Group had hedged its projected commitments in
respect of the year ending January 2010.
Borrowing Facilities
Borrowing facilities of GBP22.5m (2008: GBP13.0m) were available to the Group at
31 January 2009.
During the period the Group renewed its banking facilities with The Royal Bank
of Scotland PLC, which comprised an unsecured committed facility of GBP12.5m.
The Group also negotiated a GBP10.0m uncommitted, unsecured multi-option
facility with Barclays Bank PLC.
At the balance sheet date, the borrowing facilities were unutilised.
Principal Risks and Uncertainties
The current unprecedented trading environment has affected, and will continue to
affect, all areas of our business. We also recognise that we will be affected by
the impact this will have on our customers, partners and suppliers. The Board
has taken, and will continue to take, the necessary actions to recognise and
deal with these challenges.
In September 2008, having considered the anticipated outlook for the remainder
of 2008, the Board took actions to reduce costs and commitments in line with the
trends envisaged for 2009. This activity covered all areas of our business and
we believe that we are prepared to deal with the challenges that lie ahead.
There are a number of risks and uncertainties that face the Group, which are
monitored by the Risk Committee. Although not exhaustive, the following list
highlights some of the main issues:
* as with all fashion brands, our teams are constantly striving to ensure that our
offer is fashionable;
* we rely on our teams, trustees and partners to protect our brand and ensure that
it is presented in an appropriate way. This risk is minimised by careful
consideration of each new opportunity and each partner with whom we do business;
* global, economic and financial factors affecting our suppliers, customers and
partners;
* we may face increases in our operating costs due to growth in payroll, property
and other costs, some of which may be outside the scope of our control;
* the risks arising from exchange rate and interest rate fluctuations, although
these are minimised through the use of financial instruments;
* the strength of the financial sector, including credit insurance, impacting on
the ability of the Group to operate effectively and efficiently. This risk is
minimised by broadening our exposure to a number of different financial
institutions;
* operational problems including disruption to the infrastructure that supports
our business; and
* we recognise the importance of our teams within the business and have put in
place a structure that minimises reliance on key individuals.
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements. These
forward-looking statements include matters that are not historical facts or are
statements regarding the Company's intentions, beliefs or current expectations
concerning, among other things, the Company's results of operations, financial
condition, liquidity, prospects, growth, strategies, and the industries in which
the Company operates. Forward-looking statements are based on the information
available to the Directors at the time of preparation of this announcement, and
will not be updated during the year. The Directors can give no assurance that
these expectations will prove to have been correct. Due to inherent
uncertainties, including both economic and business risk factors underlying such
forward looking information, actual results may differ materially from those
expressed or implied by these forward-looking statements.
Group Income Statement
For the 53 weeks ended 31 January 2009
+----------------+--------+--------+----------+----------------------------------------+--------+
| | Note | | 53 | 52 weeks ended |
| | | | weeks | 26 January |
| | | | ended | 2008 |
| | | | 31 | |
| | | | January | |
| | | | 2009 | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | GBP'000 | GBP'000 |
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Revenue | 2 | | 152,661 | 142,231 |
+----------------+--------+--------+----------+-------------------------------------------------+
| Cost | | | (63,295) | (59,560) |
| of | | | | |
| sales | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Gross | | | 89,366 | 82,671 |
| profit | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Distribution | | | (56,744) | (48,320) |
| costs | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Administrative | | | | |
| expenses | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| - | | | (19,204) | (17,844) |
| Other | | | | |
| administrative | | | | |
| expenses | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| - | 8 | | (1,786) | - |
| Impairment | | | | |
| losses | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Other | | | 5,529 | 5,635 |
| operating | | | | |
| income | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Operating | | | 17,161 | 22,142 |
| profit | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Finance | 4 | | 837 | 292 |
| income | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Finance | 4 | | (307) | (387) |
| expenses | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Share | | | 75 | 10 |
| of | | | | |
| profit | | | | |
| of | | | | |
| jointly | | | | |
| controlled | | | | |
| entity, | | | | |
| net of tax | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Profit | 3 | | 17,766 | 22,057 |
| before | | | | |
| tax | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Income | 5 | | (5,198) | (6,815) |
| tax | | | | |
| expense | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Profit | | | 12,568 | 15,242 |
| for | | | | |
| the | | | | |
| period | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Attributable | | | | |
| to: | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Equity | | | 12,593 | 15,196 |
| shareholders | | | | |
| of the | | | | |
| parent | | | | |
| company | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Minority | | | (25) | 46 |
| interests | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Profit | | | 12,568 | 15,242 |
| for | | | | |
| the | | | | |
| period | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Earnings | 6 | | | |
| per | | | | |
| share | | | | |
+----------------+--------+--------+----------+-------------------------------------------------+
| Basic | | | 29.6p | 36.1p |
+----------------+--------+--------+----------+-------------------------------------------------+
| Diluted | | | 29.6p | 35.9p |
+----------------+--------+--------+----------+-------------------------------------------------+
| | | | |
+----------------+--------+--------+----------+----------------------------------------+--------+
The income statement relates to continuing operations
Group Statement of Changes in Equity
For the 53 weeks ended 31 January 2009
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | Share | Share | Cash | Translation | Retained | Total | Minority | Total |
| | capital | premium | flow | reserve | earnings | equity | interests | equity |
| | | account | hedging | | | attributable | | |
| | | | reserve | | | to equity | | |
| | | | | | | shareholders | | |
| | | | | | | of the | | |
| | | | | | | parent | | |
| | | | | | | company | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Balance | 2,160 | 9,137 | 251 | (520) | 44,695 | 55,723 | (11) | 55,712 |
| at 26 | | | | | | | | |
| January | | | | | | | | |
| 2008 | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Share | - | - | - | - | (301) | (301) | - | (301) |
| option | | | | | | | | |
| credit | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Movement | - | - | - | - | (44) | (44) | - | (44) |
| on | | | | | | | | |
| current / | | | | | | | | |
| deferred | | | | | | | | |
| tax on | | | | | | | | |
| share | | | | | | | | |
| options | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Deferred | - | - | 375 | - | - | 375 | - | 375 |
| tax | | | | | | | | |
| associated | | | | | | | | |
| with | | | | | | | | |
| movement | | | | | | | | |
| in hedging | | | | | | | | |
| reserve | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Effective | - | - | 3,396 | - | - | 3,396 | - | 3,396 |
| portion | | | | | | | | |
| of | | | | | | | | |
| changes | | | | | | | | |
| in fair | | | | | | | | |
| value of | | | | | | | | |
| cash flow | | | | | | | | |
| hedges | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Net | - | - | (2,309) | - | - | (2,309) | - | (2,309) |
| change | | | | | | | | |
| in | | | | | | | | |
| fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| cash | | | | | | | | |
| flow | | | | | | | | |
| hedges | | | | | | | | |
| transferred | | | | | | | | |
| to profit | | | | | | | | |
| or loss | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Exchange | - | - | - | 1,702 | - | 1,702 | - | 1,702 |
| rate | | | | | | | | |
| movement | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Income | - | - | 1,462 | 1,702 | (345) | 2,819 | - | 2,819 |
| and | | | | | | | | |
| expense | | | | | | | | |
| recognised | | | | | | | | |
| directly | | | | | | | | |
| in equity | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Profit | - | - | - | - | 12,593 | 12,593 | (25) | 12,568 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Own | - | - | - | - | (2,014) | (2,014) | - | (2,014) |
| shares | | | | | | | | |
| acquired | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Disposal | - | - | - | - | 64 | 64 | - | 64 |
| of | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Dividends | - | - | - | - | (6,983) | (6,983) | - | (6,983) |
| paid | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Total | - | - | 1,462 | 1,702 | 3,315 | 6,479 | (25) | 6,454 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expense | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Balance | 2,160 | 9,137 | 1,713 | 1,182 | 48,010 | 62,202 | (36) | 62,166 |
| at 31 | | | | | | | | |
| January | | | | | | | | |
| 2009 | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
For the 52 weeks ended 26 January 2008
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | Share | Share | Cash | Translation | Retained | Total | Minority | Total |
| | capital | premium | flow | reserve | earnings | equity | interests | equity |
| | | account | hedging | | | attributable | | |
| | | | reserve | | | to equity | | |
| | | | | | | shareholders | | |
| | | | | | | of the | | |
| | | | | | | parent | | |
| | | | | | | company | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Balance | 2,160 | 9,052 | (90) | (493) | 40,709 | 51,338 | (57) | 51,281 |
| at 27 | | | | | | | | |
| January | | | | | | | | |
| 2007 | | | | | | | | |
| (restated) | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Share | - | - | - | - | 234 | 234 | - | 234 |
| option | | | | | | | | |
| charge | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Movement | - | - | - | - | (80) | (80) | - | (80) |
| on | | | | | | | | |
| current/ | | | | | | | | |
| deferred | | | | | | | | |
| tax on | | | | | | | | |
| share | | | | | | | | |
| options | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Effective | - | - | 590 | - | - | 590 | - | 590 |
| portion | | | | | | | | |
| of | | | | | | | | |
| changes | | | | | | | | |
| in fair | | | | | | | | |
| value of | | | | | | | | |
| cash flow | | | | | | | | |
| hedges | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Net | - | - | (249) | - | - | (249) | - | (249) |
| change | | | | | | | | |
| in | | | | | | | | |
| fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| cash | | | | | | | | |
| flow | | | | | | | | |
| hedges | | | | | | | | |
| transferred | | | | | | | | |
| to profit | | | | | | | | |
| or loss | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Exchange | - | - | - | (27) | - | (27) | - | (27) |
| rate | | | | | | | | |
| movement | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Income | - | - | 341 | (27) | 154 | 468 | - | 468 |
| and | | | | | | | | |
| expense | | | | | | | | |
| recognised | | | | | | | | |
| directly | | | | | | | | |
| in equity | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Profit | - | - | - | - | 15,196 | 15,196 | 46 | 15,242 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Own | - | - | - | - | (4,936) | (4,936) | - | (4,936) |
| shares | | | | | | | | |
| acquired | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Transfer | - | 85 | - | - | - | 85 | - | 85 |
| of | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
| from PLC | | | | | | | | |
| to | | | | | | | | |
| Employee | | | | | | | | |
| Benefit | | | | | | | | |
| Trust | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Disposal | - | - | - | - | (7) | (7) | - | (7) |
| of own / | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Dividends | - | - | - | - | (6,421) | (6,421) | - | (6,421) |
| paid | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Total | - | 85 | 341 | (27) | 3,986 | 4,385 | 46 | 4,431 |
| recognised | | | | | | | | |
| income and | | | | | | | | |
| expense | | | | | | | | |
| for the | | | | | | | | |
| period | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
| Balance | 2,160 | 9,137 | 251 | (520) | 44,695 | 55,723 | (11) | 55,712 |
| at 26 | | | | | | | | |
| January | | | | | | | | |
| 2008 | | | | | | | | |
+-------------+---------+---------+---------+-------------+----------+--------------+-----------+---------+
Group Balance Sheet
At 31 January 2009
+--------------+--------+----------+--------+----------+
| | Note | 31 | | 26 |
| | | January | | January |
| | | 2009 | | 2008 |
| | | | | |
+--------------+--------+----------+--------+----------+
| | | GBP'000 | | GBP'000 |
+--------------+--------+----------+--------+----------+
| Non-current | | | | |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| Intangible | | 673 | | 543 |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| Property, | 8 | 28,701 | | 23,061 |
| plant and | | | | |
| equipment | | | | |
+--------------+--------+----------+--------+----------+
| Investments | | 85 | | 10 |
| in equity | | | | |
| accounted | | | | |
| investee | | | | |
+--------------+--------+----------+--------+----------+
| Deferred | | 904 | | 336 |
| tax | | | | |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| Prepayments | | 961 | | 849 |
+--------------+--------+----------+--------+----------+
| | | 31,324 | | 24,799 |
+--------------+--------+----------+--------+----------+
| Current | | | | |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| Inventories | | 37,315 | | 29,315 |
+--------------+--------+----------+--------+----------+
| Trade | | 20,466 | | 14,128 |
| and | | | | |
| other | | | | |
| receivables | | | | |
+--------------+--------+----------+--------+----------+
| Amount | | 139 | | 178 |
| due | | | | |
| from | | | | |
| equity | | | | |
| accounted | | | | |
| investee | | | | |
+--------------+--------+----------+--------+----------+
| Derivative | | 2,444 | | 603 |
| financial | | | | |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| Cash | | 4,660 | | 13,105 |
| and | | | | |
| cash | | | | |
| equivalents | | | | |
+--------------+--------+----------+--------+----------+
| | | 65,024 | | 57,329 |
+--------------+--------+----------+--------+----------+
| Current | | | | |
| liabilities | | | | |
+--------------+--------+----------+--------+----------+
| Trade | | (29,806) | | (21,777) |
| and | | | | |
| other | | | | |
| payables | | | | |
+--------------+--------+----------+--------+----------+
| Income | | (3,801) | | (3,418) |
| tax | | | | |
| payable | | | | |
+--------------+--------+----------+--------+----------+
| Derivative | | - | | (378) |
| financial | | | | |
| liabilities | | | | |
+--------------+--------+----------+--------+----------+
| | | (33,607) | | (25,573) |
+--------------+--------+----------+--------+----------+
| | | | | |
+--------------+--------+----------+--------+----------+
| Non-current | | | | |
| liabilities | | | | |
+--------------+--------+----------+--------+----------+
| Deferred | | (575) | | (843) |
| tax | | | | |
| liabilities | | | | |
+--------------+--------+----------+--------+----------+
| | | (575) | | (843) |
+--------------+--------+----------+--------+----------+
| | | | | |
+--------------+--------+----------+--------+----------+
| Net | | 62,166 | | 55,712 |
| assets | | | | |
+--------------+--------+----------+--------+----------+
| | | | | |
+--------------+--------+----------+--------+----------+
| Equity | | | | |
+--------------+--------+----------+--------+----------+
| Share | | 2,160 | | 2,160 |
| capital | | | | |
+--------------+--------+----------+--------+----------+
| Share | | 9,137 | | 9,137 |
| premium | | | | |
| account | | | | |
+--------------+--------+----------+--------+----------+
| Other | | 1,713 | | 251 |
| reserves | | | | |
+--------------+--------+----------+--------+----------+
| Translation | | 1,182 | | (520) |
| reserve | | | | |
+--------------+--------+----------+--------+----------+
| Retained | | 48,010 | | 44,695 |
| earnings | | | | |
+--------------+--------+----------+--------+----------+
| Total | | 62,202 | | 55,723 |
| equity | | | | |
| attributable | | | | |
| to equity | | | | |
| shareholders | | | | |
| of the | | | | |
| parent | | | | |
| company | | | | |
+--------------+--------+----------+--------+----------+
| Minority | | (36) | | (11) |
| interests | | | | |
+--------------+--------+----------+--------+----------+
| Total | | 62,166 | | 55,712 |
| equity | | | | |
+--------------+--------+----------+--------+----------+
Group Cash Flow Statement
For the 53 weeks ended 31 January 2009
+--------------+----------+----------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+--------------+----------+----------+
| | GBP'000 | GBP'000 |
+--------------+----------+----------+
| Cash | | |
| generated | | |
| from | | |
| operations | | |
+--------------+----------+----------+
| Profit | 12,568 | 15,242 |
| for | | |
| the | | |
| period | | |
+--------------+----------+----------+
| Adjusted | | |
| for: | | |
+--------------+----------+----------+
| Income | 5,198 | 6,815 |
| tax | | |
| expense | | |
+--------------+----------+----------+
| Depreciation | 5,990 | 4,807 |
+--------------+----------+----------+
| Impairment | 1,786 | - |
| losses | | |
+--------------+----------+----------+
| Loss | 106 | 184 |
| on | | |
| disposal | | |
| of | | |
| property, | | |
| plant & | | |
| equipment | | |
+--------------+----------+----------+
| Share | (301) | 234 |
| option | | |
| (credit) | | |
| / charge | | |
+--------------+----------+----------+
| Net | 161 | 217 |
| finance | | |
| gains / | | |
| (losses) | | |
+--------------+----------+----------+
| Net | 1,087 | 341 |
| change | | |
| in | | |
| cash | | |
| flow | | |
| hedges | | |
+--------------+----------+----------+
| Share | (75) | (10) |
| of | | |
| profit | | |
| in | | |
| joint | | |
| venture | | |
+--------------+----------+----------+
| Decrease | 80 | (789) |
| / | | |
| (increase) | | |
| in | | |
| non-current | | |
| prepayments | | |
+--------------+----------+----------+
| Increase | (5,923) | (1,449) |
| in | | |
| inventories | | |
+--------------+----------+----------+
| Increase | (11,159) | (3,050) |
| in trade | | |
| and | | |
| other | | |
| receivables | | |
+--------------+----------+----------+
| Increase | 6,967 | 1,324 |
| in trade | | |
| and | | |
| other | | |
| payables | | |
+--------------+----------+----------+
| Interest | (330) | (344) |
| paid | | |
+--------------+----------+----------+
| Income | (5,052) | (4,068) |
| taxes | | |
| paid | | |
+--------------+----------+----------+
| Net | 11,103 | 19,454 |
| cash | | |
| generated | | |
| from | | |
| operating | | |
| activities | | |
+--------------+----------+----------+
| | | |
+--------------+----------+----------+
| Cash | | |
| flow | | |
| from | | |
| investing | | |
| activities | | |
+--------------+----------+----------+
| Purchases | (11,828) | (8,709) |
| of | | |
| property, | | |
| plant & | | |
| equipment | | |
+--------------+----------+----------+
| Proceeds | 14 | - |
| from | | |
| sale of | | |
| property, | | |
| plant & | | |
| equipment | | |
+--------------+----------+----------+
| Interest | 149 | 171 |
| received | | |
+--------------+----------+----------+
| Net | (11,665) | (8,538) |
| cash | | |
| from | | |
| investing | | |
| activities | | |
+--------------+----------+----------+
| | | |
+--------------+----------+----------+
| Cash | | |
| flow | | |
| from | | |
| financing | | |
| activities | | |
+--------------+----------+----------+
| Own | (2,014) | (4,936) |
| shares | | |
| acquired | | |
+--------------+----------+----------+
| Proceeds | 64 | 78 |
| from | | |
| option | | |
| holders | | |
| for | | |
| exercise | | |
| of | | |
| options | | |
+--------------+----------+----------+
| Dividends | (6,983) | (6,421) |
| paid | | |
+--------------+----------+----------+
| Net | (8,933) | (11,279) |
| cash | | |
| from | | |
| financing | | |
| activities | | |
+--------------+----------+----------+
| | | |
+--------------+----------+----------+
| Net | (9,495) | (363) |
| decrease | | |
| in cash | | |
| and cash | | |
| equivalents | | |
+--------------+----------+----------+
| | | |
+--------------+----------+----------+
| | | |
+--------------+----------+----------+
| Cash | 13,105 | 13,513 |
| and | | |
| cash | | |
| equivalents | | |
| at 26 | | |
| January | | |
| 2008 / 27 | | |
| January | | |
| 2007 | | |
+--------------+----------+----------+
| Exchange | 1,050 | (45) |
| rate | | |
| movement | | |
+--------------+----------+----------+
| Cash | 4,660 | 13,105 |
| and | | |
| cash | | |
| equivalents | | |
| at 31 | | |
| January | | |
| 2009 / 26 | | |
| January | | |
| 2008 | | |
+--------------+----------+----------+
Notes
1)Basis of preparation
EU law (IAS Regulation EC 1606/2002) requires that the Group financial
statements, for the 53 weeks ended 31 January 2009, 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 31 January 2009.
The financial information set out above does not constitute the Group's
statutory accounts for the 53 weeks ended 31 January 2009 or 26 January 2008.
The annual financial information presented in this annual results announcement
for the 53 weeks ended 31 January 2009 is based on, and is consistent with, that
in the Group's audited financial statements for the 53 weeks ended 31 January
2009, and those financial statements will be delivered during the second week of
May 2009. 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 2007 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 tax 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
+------------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+------------+---------+---------+
| | GBP'000 | GBP'000 |
+------------+---------+---------+
| | | |
+------------+---------+---------+
| Menswear | 84,775 | 79,312 |
+------------+---------+---------+
| Womenswear | 63,342 | 57,181 |
+------------+---------+---------+
| Other | 4,544 | 5,738 |
+------------+---------+---------+
| | 152,661 | 142,231 |
+------------+---------+---------+
b) Primary reporting format - divisional segments
+--------------+----------+-----------+----------+
| 53 | Retail | Wholesale | Total |
| weeks | | | |
| ended | | | |
| 31 | | | |
| January | | | |
| 2009 | | | |
+--------------+----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Revenue | 118,237 | 34,424 | 152,661 |
+--------------+----------+-----------+----------+
| Cost | (43,505) | (19,790) | (63,295) |
| of | | | |
| sales | | | |
+--------------+----------+-----------+----------+
| Gross | 74,732 | 14,634 | 89,366 |
| profit | | | |
+--------------+----------+-----------+----------+
| Operating | (66,152) | (9,796) | (75,948) |
| costs | | | |
+--------------+----------+-----------+----------+
| Impairment | (1,786) | - | (1,786) |
| losses | | | |
+--------------+----------+-----------+----------+
| Operating | 6,794 | 4,838 | 11,632 |
| profit | | | |
| before | | | |
| other | | | |
| operating | | | |
| income | | | |
+--------------+----------+-----------+----------+
| Other | | | 5,529 |
| operating | | | |
| income | | | |
+--------------+----------+-----------+----------+
| Operating | | | 17,161 |
| profit | | | |
+--------------+----------+-----------+----------+
| Net | | | 530 |
| finance | | | |
| income | | | |
+--------------+----------+-----------+----------+
| Share | | | 75 |
| of | | | |
| profit | | | |
| of | | | |
| jointly | | | |
| controlled | | | |
| entity, | | | |
| net of | | | |
| tax | | | |
+--------------+----------+-----------+----------+
| Profit | | | 17,766 |
| before | | | |
| tax | | | |
+--------------+----------+-----------+----------+
| Income | | | (5,198) |
| tax | | | |
| expense | | | |
+--------------+----------+-----------+----------+
| Profit | | | 12,568 |
| for | | | |
| the | | | |
| period | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Segment | 75,566 | 19,654 | 95,220 |
| assets | | | |
+--------------+----------+-----------+----------+
| Investment | | | 85 |
| in equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+-----------+----------+
| Amounts | | | 139 |
| due | | | |
| from | | | |
| equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+-----------+----------+
| Deferred | | | 904 |
| tax | | | |
| assets | | | |
+--------------+----------+-----------+----------+
| Total | | | 96,348 |
| assets | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Segment | (23,085) | (6,721) | (29,806) |
| liabilities | | | |
+--------------+----------+-----------+----------+
| Deferred | | | (4,376) |
| tax | | | |
| liabilities | | | |
| and income | | | |
| tax payable | | | |
+--------------+----------+-----------+----------+
| Total | | | (34,182) |
| liabilities | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Net | | | 62,166 |
| assets | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Capital | 11,748 | 378 | 12,126 |
| expenditure | | | |
+--------------+----------+-----------+----------+
| Depreciation | 5,803 | 187 | 5,990 |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| 52 | Retail | Wholesale | Total |
| weeks | | | |
| ended | | | |
| 26 | | | |
| January | | | |
| 2008 | | | |
+--------------+----------+-----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Revenue | 103,036 | 39,195 | 142,231 |
+--------------+----------+-----------+----------+
| Cost | (36,168) | (23,392) | (59,560) |
| of | | | |
| sales | | | |
+--------------+----------+-----------+----------+
| Gross | 66,868 | 15,803 | 82,671 |
| profit | | | |
+--------------+----------+-----------+----------+
| Operating | (55,841) | (10,323) | (66,164) |
| costs | | | |
+--------------+----------+-----------+----------+
| Operating | 11,027 | 5,480 | 16,507 |
| profit | | | |
| before | | | |
| other | | | |
| operating | | | |
| income | | | |
+--------------+----------+-----------+----------+
| Other | | | 5,635 |
| operating | | | |
| income | | | |
+--------------+----------+-----------+----------+
| Operating | | | 22,142 |
| profit | | | |
+--------------+----------+-----------+----------+
| Net | | | (95) |
| finance | | | |
| expense | | | |
+--------------+----------+-----------+----------+
| Share | | | 10 |
| of | | | |
| profit of | | | |
| jointly | | | |
| controlled | | | |
| entity, | | | |
| net of tax | | | |
+--------------+----------+-----------+----------+
| Profit | | | 22,057 |
| before | | | |
| tax | | | |
+--------------+----------+-----------+----------+
| Income | | | (6,815) |
| tax | | | |
| expense | | | |
+--------------+----------+-----------+----------+
| Profit | | | 15,242 |
| for | | | |
| the | | | |
| period | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Segment | 60,581 | 21,023 | 81,604 |
| assets | | | |
+--------------+----------+-----------+----------+
| Investment | | | 10 |
| in equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+-----------+----------+
| Amounts | | | 178 |
| due | | | |
| from | | | |
| equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+-----------+----------+
| Deferred | | | 336 |
| tax | | | |
| assets | | | |
+--------------+----------+-----------+----------+
| Total | | | 82,128 |
| assets | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Segment | (16,050) | (6,105) | (22,155) |
| liabilities | | | |
+--------------+----------+-----------+----------+
| Deferred | | | (4,261) |
| tax | | | |
| liabilities | | | |
| and income | | | |
| tax payable | | | |
+--------------+----------+-----------+----------+
| Total | | | (26,416) |
| liabilities | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Net | | | 55,712 |
| assets | | | |
+--------------+----------+-----------+----------+
| | | | |
+--------------+----------+-----------+----------+
| Capital | 8,375 | 460 | 8,835 |
| expenditure | | | |
+--------------+----------+-----------+----------+
| Depreciation | 4,579 | 228 | 4,807 |
+--------------+----------+-----------+----------+
Wholesale sales are shown after the elimination of inter-company sales of
GBP7,846,000 (2008: GBP4,855,000). The majority of other operating income
relates to the Licence income for both 2009 and 2008.
* In accordance with IAS14, "segmental reporting", segmental assets and
liabilities do not include current and deferred tax balances.
c) Secondary reporting format - geographical segments by origin
+--------------+----------+----------+----------+
| 53 | United | Other | Total |
| weeks | Kingdom | | |
| ended | | | |
| 31 | | | |
| January | | | |
| 2009 | | | |
+--------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Revenue | 135,186 | 17,475 | 152,661 |
+--------------+----------+----------+----------+
| Cost | (55,289) | (8,006) | (63,295) |
| of | | | |
| sales | | | |
+--------------+----------+----------+----------+
| Gross | 79,897 | 9,469 | 89,366 |
| profit | | | |
+--------------+----------+----------+----------+
| Operating | (65,553) | (10,395) | (75,948) |
| costs | | | |
+--------------+----------+----------+----------+
| Impairment | (1,312) | (474) | (1,786) |
| losses | | | |
+--------------+----------+----------+----------+
| Operating | 13,032 | (1,400) | 11,632 |
| profit | | | |
| before | | | |
| other | | | |
| operating | | | |
| income | | | |
+--------------+----------+----------+----------+
| Other | | | 5,529 |
| operating | | | |
| income | | | |
+--------------+----------+----------+----------+
| Operating | | | 17,161 |
| profit | | | |
+--------------+----------+----------+----------+
| Net | | | 530 |
| finance | | | |
| income | | | |
+--------------+----------+----------+----------+
| Share | | | 75 |
| of | | | |
| profit | | | |
| of | | | |
| jointly | | | |
| controlled | | | |
| entity, | | | |
| net of tax | | | |
+--------------+----------+----------+----------+
| Profit | | | 17,766 |
| before | | | |
| tax | | | |
+--------------+----------+----------+----------+
| Income | | | (5,198) |
| tax | | | |
| expense | | | |
+--------------+----------+----------+----------+
| Profit | | | 12,568 |
| for | | | |
| the | | | |
| period | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Segment | 77,130 | 18,090 | 95,220 |
| assets | | | |
+--------------+----------+----------+----------+
| Investment | | | 85 |
| in equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+----------+----------+
| Amounts | | | 139 |
| due | | | |
| from | | | |
| equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+----------+----------+
| Deferred | | | 904 |
| tax | | | |
| assets | | | |
+--------------+----------+----------+----------+
| Total | | | 96,348 |
| assets | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Segment | (27,439) | (2,367) | (29,806) |
| liabilities | | | |
+--------------+----------+----------+----------+
| Deferred | | | (4,376) |
| tax | | | |
| liabilities | | | |
| and income | | | |
| tax payable | | | |
+--------------+----------+----------+----------+
| Total | | | (34,182) |
| liabilities | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Net | | | 62,166 |
| assets | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Capital | 10,945 | 1,181 | 12,126 |
| expenditure | | | |
+--------------+----------+----------+----------+
| Depreciation | 5,031 | 959 | 5,990 |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| 52 | United | Other | Total |
| weeks | Kingdom | | |
| ended | | | |
| 26 | | | |
| January | | | |
| 2008 | | | |
+--------------+----------+----------+----------+
| | GBP'000 | GBP'000 | GBP'000 |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Revenue | 127,901 | 14,330 | 142,231 |
+--------------+----------+----------+----------+
| Cost | (53,638) | (5,922) | (59,560) |
| of | | | |
| sales | | | |
+--------------+----------+----------+----------+
| Gross | 74,263 | 8,408 | 82,671 |
| profit | | | |
+--------------+----------+----------+----------+
| Operating | (58,558) | (7,606) | (66,164) |
| costs | | | |
+--------------+----------+----------+----------+
| Operating | 15,705 | 802 | 16,507 |
| profit | | | |
| before | | | |
| other | | | |
| operating | | | |
| income | | | |
+--------------+----------+----------+----------+
| Other | | | 5,635 |
| operating | | | |
| income | | | |
+--------------+----------+----------+----------+
| Operating | | | 22,142 |
| profit | | | |
+--------------+----------+----------+----------+
| Net | | | (95) |
| finance | | | |
| income | | | |
+--------------+----------+----------+----------+
| Share | | | 10 |
| of | | | |
| profit of | | | |
| jointly | | | |
| controlled | | | |
| entity, | | | |
| net of tax | | | |
+--------------+----------+----------+----------+
| Profit | | | 22,057 |
| before | | | |
| tax | | | |
+--------------+----------+----------+----------+
| Income | | | (6,815) |
| tax | | | |
| expense | | | |
+--------------+----------+----------+----------+
| Profit | | | 15,242 |
| for | | | |
| the | | | |
| period | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Segment | 67,553 | 14,051 | 81,604 |
| assets | | | |
+--------------+----------+----------+----------+
| Investment | | | 10 |
| in equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+----------+----------+
| Amounts | | | 178 |
| due | | | |
| from | | | |
| equity | | | |
| accounted | | | |
| investee | | | |
+--------------+----------+----------+----------+
| Deferred | | | 336 |
| tax | | | |
| assets | | | |
+--------------+----------+----------+----------+
| Total | | | 82,128 |
| assets | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Segment | (20,335) | (1,820) | (22,155) |
| liabilities | | | |
+--------------+----------+----------+----------+
| Deferred | | | (4,261) |
| tax | | | |
| liabilities | | | |
| and income | | | |
| tax payable | | | |
+--------------+----------+----------+----------+
| Total | | | (26,416) |
| liabilities | | | |
+--------------+----------+----------+----------+
| | | | |
+--------------+----------+----------+----------+
| Net | | | 55,712 |
| assets | | | |
+--------------+----------+----------+----------+
| Capital | 6,589 | 2,246 | 8,835 |
| expenditure | | | |
+--------------+----------+----------+----------+
| Depreciation | 4,083 | 724 | 4,807 |
+--------------+----------+----------+----------+
United Kingdom sales are shown after the elimination of inter-company sales of
GBP7,846,000 (2008: GBP4,855,000).
Other includes sales arising mainly in the United States and Eire. Revenue by
destination is not materially different from revenue by geographic origin.
* In accordance with IAS14, "segmental reporting", segmental assets and
liabilities do not include current and deferred tax balances.
3) Profit before taxation
+---------------+---------+---------+
| Profit | 53 | 52 |
| before | weeks | weeks |
| taxation | ended | ended |
| is | 31 | 26 |
| stated | January | January |
| after | 2009 | 2008 |
| charging: | | |
+---------------+---------+---------+
| | GBP'000 | GBP'000 |
+---------------+---------+---------+
| | | |
+---------------+---------+---------+
| Depreciation | 5,990 | 4,807 |
| | | |
+---------------+---------+---------+
| Impairment | 1,786 | - |
| losses | | |
+---------------+---------+---------+
| Operating | 12,299 | 10,132 |
| lease | | |
| rentals | | |
+---------------+---------+---------+
| Fees | 7 | 6 |
| payable | | |
| to the | | |
| Company's | | |
| auditor | | |
| for the | | |
| audit of | | |
| the | | |
| Company's | | |
| annual | | |
| accounts | | |
+---------------+---------+---------+
| Fees | 75 | 67 |
| payable | | |
| to the | | |
| Company's | | |
| auditor | | |
| for the | | |
| audit of | | |
| the | | |
| Company's | | |
| subsidiaries, | | |
| pursuant to | | |
| legislation | | |
+---------------+---------+---------+
| Fees | 18 | 17 |
| payable | | |
| to the | | |
| Company's | | |
| auditor | | |
| for other | | |
| services | | |
| supplied | | |
| pursuant | | |
| to | | |
| legislation | | |
+---------------+---------+---------+
| Other | - | 1 |
| services | | |
| provided | | |
| by the | | |
| Company's | | |
| auditor | | |
+---------------+---------+---------+
| Loss | 106 | 184 |
| on | | |
| disposal | | |
| of | | |
| property, | | |
| plant & | | |
| equipment | | |
+---------------+---------+---------+
4) Finance income and expenses
+------------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+------------+---------+---------+
| | GBP'000 | GBP'000 |
+------------+---------+---------+
| Finance | | |
| income | | |
+------------+---------+---------+
| - | 146 | 170 |
| Interest | | |
| receivable | | |
+------------+---------+---------+
| - | 691 | 122 |
| Foreign | | |
| exchange | | |
| gains | | |
+------------+---------+---------+
| | 837 | 292 |
+------------+---------+---------+
| Finance | | |
| expenses | | |
+------------+---------+---------+
| - | (307) | (387) |
| Interest | | |
| payable | | |
+------------+---------+---------+
5) Income tax expense
a) The tax charge comprises
+-----------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+-----------+---------+---------+
| | GBP'000 | GBP'000 |
+-----------+---------+---------+
| Current | 5,591 | 6,912 |
| tax | | |
+-----------+---------+---------+
| Deferred | (156) | 39 |
| tax | | |
+-----------+---------+---------+
| Prior | (237) | (136) |
| year | | |
| over | | |
| provision | | |
+-----------+---------+---------+
| | 5,198 | 6,815 |
+-----------+---------+---------+
b) Deferred tax movement by type
+-----------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+-----------+---------+---------+
| | GBP'000 | GBP'000 |
+-----------+---------+---------+
| Property, | (261) | (189) |
| plant & | | |
| equipment | | |
+-----------+---------+---------+
| Share | 224 | 88 |
| based | | |
| payments | | |
+-----------+---------+---------+
| Overseas | (378) | 418 |
| losses | | |
+-----------+---------+---------+
| Inventory | (7) | (160) |
+-----------+---------+---------+
| Other | 266 | (118) |
+-----------+---------+---------+
| | (156) | 39 |
+-----------+---------+---------+
c) Factors affecting the tax charge for the period
The tax assessed for the period is higher than the tax calculated at domestic
rates applicable to profits in the respective countries. The differences are
explained below.
+--------------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+--------------+---------+---------+
| | GBP'000 | GBP'000 |
+--------------+---------+---------+
| Profit | 17,766 | 22,057 |
| before | | |
| tax | | |
+--------------+---------+---------+
| | | |
+--------------+---------+---------+
| Profit | 5,033 | 6,617 |
| multiplied | | |
| by a | | |
| weighted | | |
| average | | |
| rate - | | |
| 28.33%, | | |
| (2008: | | |
| 30%) | | |
+--------------+---------+---------+
| | | |
+--------------+---------+---------+
| Expenses | 397 | 430 |
| not | | |
| deductible | | |
| for tax | | |
| purposes | | |
+--------------+---------+---------+
| Overseas | 34 | - |
| losses | | |
| not | | |
| recognised | | |
+--------------+---------+---------+
| Statutory | (3) | 2 |
| deductions | | |
| for share | | |
| options | | |
+--------------+---------+---------+
| Prior | (108) | (894) |
| year | | |
| corporation | | |
| tax items | | |
+--------------+---------+---------+
| Prior | (129) | 758 |
| year | | |
| deferred | | |
| tax | | |
| items | | |
+--------------+---------+---------+
| Effect | - | (63) |
| of | | |
| rate | | |
| change | | |
| on | | |
| deferred | | |
| tax | | |
+--------------+---------+---------+
| Effect | 5 | - |
| of | | |
| rate | | |
| change | | |
| on | | |
| corporation | | |
| tax | | |
+--------------+---------+---------+
| Difference | (31) | 22 |
| due to | | |
| overseas | | |
| tax rates | | |
+--------------+---------+---------+
| Utilisation | - | (57) |
| of | | |
| previously | | |
| unrecognised | | |
| tax losses | | |
+--------------+---------+---------+
| Total | 5,198 | 6,815 |
| income | | |
| tax | | |
| expense | | |
+--------------+---------+---------+
The UK current tax rate reduced from 30% to 28% with effect from 1 April 2008.
In line with this change, the rate applied to UK current tax provisions is an
effective rate of 28.33%.
d) Deferred and current tax recognised directly in equity
+----------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+----------+---------+---------+
| | GBP'000 | GBP'000 |
| | | |
+----------+---------+---------+
| Deferred | (49) | (192) |
| tax | | |
| credit | | |
| on share | | |
| options | | |
+----------+---------+---------+
| Current | 5 | 112 |
| tax on | | |
| share | | |
| options | | |
+----------+---------+---------+
| | (44) | (80) |
+----------+---------+---------+
6) Earnings per share
+-------------+------------+------------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+-------------+------------+------------+
| | No. | No. |
+-------------+------------+------------+
| Number | | |
| of | | |
| shares: | | |
+-------------+------------+------------+
| Weighted | 42,563,397 | 42,066,481 |
| number | | |
| of | | |
| ordinary | | |
| shares | | |
| outstanding | | |
+-------------+------------+------------+
| Effect | 7,904 | 254,711 |
| of | | |
| dilutive | | |
| options | | |
+-------------+------------+------------+
| Weighted | 42,571,301 | 42,321,192 |
| number | | |
| of | | |
| ordinary | | |
| shares | | |
| outstanding | | |
| - diluted | | |
+-------------+------------+------------+
| | | |
+-------------+------------+------------+
| Earnings: | | |
+-------------+------------+------------+
| Profit | 12,593 | 15,196 |
| for | | |
| the | | |
| period | | |
| basic | | |
| and | | |
| diluted | | |
| - | | |
| GBP'000 | | |
+-------------+------------+------------+
| | | |
+-------------+------------+------------+
| Basic | 29.6p | 36.1p |
| earnings | | |
| per | | |
| share | | |
+-------------+------------+------------+
| Diluted | 29.6p | 35.9p |
| earnings | | |
| per | | |
| share | | |
+-------------+------------+------------+
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 covered by 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.
7) Dividends per share
+----------+---------+---------+
| | 53 | 52 |
| | weeks | weeks |
| | ended | ended |
| | 31 | 26 |
| | January | January |
| | 2009 | 2008 |
+----------+---------+---------+
| | GBP'000 | GBP'000 |
+----------+---------+---------+
| | | |
+----------+---------+---------+
| Final | 4,799 | 4,322 |
| dividend | | |
| paid for | | |
| prior | | |
| year of | | |
| 11.4p | | |
| per | | |
| ordinary | | |
| share | | |
| (2008: | | |
| 10.3p) | | |
+----------+---------+---------+
| Interim | 2,184 | 2,099 |
| dividend | | |
| paid of | | |
| 5.25p | | |
| per | | |
| ordinary | | |
| share | | |
| (2008: | | |
| 5.0p) | | |
+----------+---------+---------+
| | 6,983 | 6,421 |
+----------+---------+---------+
A final dividend in respect of 2009 of 11.4p per share, amounting to
GBP4,742,930 is to be proposed at the Annual General Meeting on 16 June 2009.
8) Property, plant and equipment
+--------------+--------------+-----------+----------+--------------+---------+
| | Leasehold | Fixtures, | Motor | Assets | Total |
| | Improvements | fittings | vehicles | under | |
| | | & office | | construction | |
| | | equipment | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+--------------+--------------+-----------+----------+--------------+---------+
| Cost | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 26 | 22,029 | 23,341 | 139 | 1,912 | 47,421 |
| January | | | | | |
| 2008 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Additions | 8,888 | 4,933 | 14 | (1,709) | 12,126 |
+--------------+--------------+-----------+----------+--------------+---------+
| Disposals | (500) | (166) | - | - | (666) |
+--------------+--------------+-----------+----------+--------------+---------+
| Exchange | 1,771 | 913 | 12 | - | 2,696 |
| rate | | | | | |
| movement | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 31 | 32,188 | 29,021 | 165 | 203 | 61,577 |
| January | | | | | |
| 2009 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Depreciation | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 26 | 9,035 | 15,240 | 85 | - | 24,360 |
| January | | | | | |
| 2008 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Charge | 2,290 | 3,670 | 30 | - | 5,990 |
| for | | | | | |
| the | | | | | |
| year | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Impairment | 1,599 | 187 | - | - | 1,786 |
| losses | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Disposals | (363) | (96) | - | - | (459) |
+--------------+--------------+-----------+----------+--------------+---------+
| Exchange | 458 | 733 | 8 | - | 1,199 |
| rate | | | | | |
| movement | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 31 | 13,019 | 19,734 | 123 | - | 32,876 |
| January | | | | | |
| 2009 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| Net | | | | | |
| book | | | | | |
| value | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 26 | 12,994 | 8,101 | 54 | 1,912 | 23,061 |
| January | | | | | |
| 2008 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
| At 31 | 19,169 | 9,287 | 42 | 203 | 28,701 |
| January | | | | | |
| 2009 | | | | | |
+--------------+--------------+-----------+----------+--------------+---------+
Impairment of property, plant and equipment
The Group has determined that for the purposes of impairment testing, each store
and outlet is a cash-generating unit. Cash-generating units are tested for
impairment if there are indications of impairment at the Balance Sheet date.
Recoverable amounts for cash-generating units are based on value in use, which
is calculated from cash flow projections using data from the Group's latest
internal forecasts, the results of which are reviewed by the Board. The key
assumptions for the value in use calculations are those regarding discount
rates, growth rates and expected changes in margins. Management estimate
discount rates using pre-tax rates that reflect the current market assessment of
the time value of money and the risks specific to the cash-generating units.
Changes in selling prices and direct costs are based on past experience and
expectations of future changes in the market.
The pre-tax discount rates used to calculate value in use is derived from the
Group's weighted average cost of capital.
The impairment loss recognised in the year of GBP1,786,000 (2008: GBPnil) is a
result of a review of the carrying value of the store portfolio assets.
The impairment losses relate to stores whose recoverable amounts (value in use)
do not exceed the asset carrying values. In all cases, impairment losses arise
due to stores performing below forecasted trading levels.
9) Related parties
The Company has a related party relationship with its directors and executive
officers.
Directors of the Company and their immediate relatives control 41 per cent of
the voting shares of the Company.
At the 31 January 2009, the main trading company owed the parent company
GBP9,149,000 (2008: GBP8,710,000). The main trading company was owed
GBP10,873,000 (2008: GBP12,921,000) from the other subsidiaries within the
Group.
Transactions between subsidiaries were priced on an arms length basis.
The Group has a 50% interest in a joint venture. As at 31 January 2009, the
joint venture owed GBP139,000 to the main trading company (2008: GBP178,000). In
the period the value of sales made to the joint venture by the Group was
GBP280,000 (2008: GBP252,000).
The Group considers the Board of executive directors as key management. Further
details are provided in the Remuneration Report.
Responsibility statement of the directors in respect of the annual financial
report
We, the directors of the Company, confirm that to the best of our knowledge:
* The financial statements, prepared in accordance with International Financial
Reporting Standards as adopted by the EU, give a true and fair view of the
assets, liabilities, financial position and profit for the Group and the
undertakings included in the consolidation taken as a whole; and
* Pursuant to Chapter 4 of the Disclosure and Transparency Rules, the Group's
annual report contains a fair review of the development and performance of the
business and the position of the Group, and the undertakings included in the
consolidation taken as a whole, together with a description of the principal
risks and uncertainties that they face.
The contents of this announcement, including the responsibility statement above,
have been extracted from the annual report and accounts for the period ended 31
January 2009 which can be found at www.tedbaker.com and will be despatched to
shareholders during the second week of May 2009. Accordingly the responsibility
statement makes reference to the financial statements of the Company and the
Group and to the relevant narratives appearing in that annual report and
accounts rather than the contents of this announcement.
On behalf of the board
+----------------------------------------------------------------------+-----------------+
| Ray Kelvin | Lindsay Page |
+----------------------------------------------------------------------+-----------------+
| Chief Executive | Financial |
| | Director |
+----------------------------------------------------------------------+-----------------+
| | |
+----------------------------------------------------------------------+-----------------+
| 25 March 2009 | 25 March 2009 |
+----------------------------------------------------------------------+-----------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR CKQKQDBKBFNB
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