TIDMTED
RNS Number : 5247D
Ted Baker PLC
24 March 2011
24 March 2011
Ted Baker PLC
Annual results for the 52 weeks ended 29 January 2011
Strong Group performance reflecting strength of the brand and
growing international reach
Highlights
-- Retail sales up 11.9% on a 7.4% increase in average retail
square footage
-- New retail stores opened in Scottsdale, Santa Monica, New
York and Chicago
-- Wholesale sales up 28.9%, largely reflecting the encouraging
start to our US wholesale business
-- Underlying licence income up 6.4%
-- Proposed final dividend of 14.3p, making the total dividend
20.6p, an increase of 20.1%
2011 2010 Change
------------------- --------------- --------------- ------------
Group Revenue GBP187.7m GBP163.6m 14.7%
------------------- --------------- --------------- ------------
Profit Before Tax GBP24.2m GBP19.5m 24.2%
------------------- --------------- --------------- ------------
Basic EPS 41.5p 32.6p 27.3%
------------------- --------------- --------------- ------------
Total Dividend 20.6p 17.15p 20.1%
------------------- --------------- --------------- ------------
Cash Balance GBP13.5m GBP13.7m (1.2%)
------------------- --------------- --------------- ------------
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"The Group's excellent performance is testament to the strength
of the Ted Baker brand, with design, quality and attention to
detail at the heart of everything we do. We have continued
carefully to expand the brand internationally and, supported by our
strong balance sheet, will build on this momentum in 2011, with new
store openings in the first half of the year including Paris, Hong
Kong and Manchester.
We have been pleased by the customer response to our
Spring/Summer collections, both in the UK and internationally.
Whilst the economic outlook for 2011 is uncertain, we have
demonstrated in previous years our ability to trade through more
difficult times and are confident that we are well placed to
continue to do so.
On behalf of the Board I would like to thank all the team at Ted
Baker, without whom this strong performance would not have been
possible."
Enquiries:
Ted Baker PLC Tel: 020 7796 4133 on 24 March 2011
only
Ray Kelvin, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler Tel: 020 7796 4133
Michael Sandler / Kate Hough / Alex
Brennan
Chairman's Statement
I am delighted to report a strong performance across the Group,
which resulted in a 14.7% increase in Group revenue to GBP187.7m
and a 24.2% increase in profit before tax to GBP24.2m. This result
reflects the strength of the Ted Baker brand and collections and
the growing international reach of our multi-channel distribution
strategy.
The retail division delivered an increase in revenue of 11.9% to
GBP152.7m on a 7.4% increase in average retail square footage.
Trading in the UK was good and we were particularly pleased by the
strong improvement in trading in our overseas markets.
Wholesale sales for the Group increased by 28.9% to GBP35.0m.
This was driven by the re-launch of our US wholesale business,
under our own management, and a good performance in our UK
wholesale business, which included growth in our wholesale export
business.
Licence income from our product and territorial licences
increased by 13.4% to GBP6.2m and included a full contribution in
the year from our US product licences.
Results
Group revenue for the 52 weeks ended 29 January 2011 increased
by 14.7% to GBP187.7m (2010: GBP163.6m). The composite gross margin
increased to 61.7% (2010: 61.1%) reflecting buying efficiencies and
less promotional activity in our overseas markets.
Profit before tax increased by 24.2% to GBP24.2m (2010:
GBP19.5m) and by 19.6% excluding the impairment charge of GBP0.8m
in the previous year. Basic earnings per share increased by 27.3%
to 41.5p (2010: 32.6p).
The Group has a strong balance sheet and continues to maintain
its focus on cash management. Net cash generated from operating
activities during the year was GBP18.1m (2010: GBP21.1m).
Dividends
The Board is recommending a final dividend of 14.3p per share,
making a total for the year of 20.6p per share (2010: 17.15p per
share), an increase of 20.1% on the prior year. Subject to approval
the final dividend will be paid on 17 June 2011 to shareholders on
the register on 13 May 2011.
People
This strong performance is testament to the dedication and
commitment of the Ted Baker team. The passion and enthusiasm of our
teams around the world is a key factor in our success and
continuing development. On behalf of the Board, I would like to
thank all of my colleagues for their contribution during the
year.
On 15 June 2010 we were delighted to announce the appointment to
the Board of Anne Sheinfield as an Independent Non-Executive
Director. Anne is a commercial lawyer with 20 years' post
qualification experience in the theatre, TV and music areas of
entertainment. Anne brings with her a wealth of intellectual
property and commercial legal experience.
Current Trading and Outlook
We anticipate that 2011 will be a challenging year given the
economic outlook, but are pleased by the positive reaction to our
Spring/Summer collections. There has been much discussion on the
pressures on consumer spending, but we believe that we are well
positioned to meet these challenges due to the strength of the Ted
Baker brand and collections. We continue to manage the risks
arising from exchange rate fluctuations and rising input prices in
order to minimise the impact on our business.
Retail
Following a strong post-Christmas sale period, we entered the
new season with a clean stock position. Although retail trading at
the start of the new financial year was subdued, recent trends are
more encouraging.
We opened a further store in Hong Kong in February and will be
opening a second store in Paris and a store in the Trafford Centre,
Manchester in March. We plan to open concessions through leading
department stores in the US, Spain and Portugal during the first
half of the financial year.
Wholesale
Trading in our UK wholesale business has started well and
forward order commitments are in line with our expectations.
In the US, our wholesale business continues to perform well and
we will continue to develop and grow this business.
Licence Income
Our product and territorial licences continue to perform in line
with our expectations. We plan to open a store in Auckland, New
Zealand with our joint venture partner in the second half of the
financial year. Our other territorial licence partners in the
Middle East and Asia continue to seek further opportunities to
expand the Ted Baker brand in those territories.
Group
The Ted Baker brand continues to perform well in an uncertain
trading environment and we believe that we are well placed to deal
with the challenges ahead. We continue to ensure that our costs and
commitments are controlled and in line with the trends anticipated
for 2011.
We remain focused on our multi-channel distribution strategy
and, with our strong balance sheet, will continue to expand the Ted
Baker brand in existing and new international markets.
We intend to make our next interim management statement,
covering trading since the start of the financial year, on 14 June
2011.
Robert Breare
Non-Executive Chairman
24 March 2011
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; Born; Accessories; Lingerie
and Underwear; Childrenswear; Fragrance and Skinwear; Footwear;
Neckwear; 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, the
Middle East, Asia and Australasia.
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
We operate stores and concessions across the UK, Europe, US and
Hong Kong and an on-line business based in the UK, primarily
serving the UK and Europe, with a separate site dedicated to the
Americas.
The retail division delivered a strong performance with sales up
11.9% to GBP152.7m (2010: GBP136.5m). Average retail square footage
rose by 7.4% over the year to 225,828 sq ft (2010: 210,238 sq ft).
Total retail square footage at 29 January 2011 was 229,026 sq ft
(2010: 217,733 sq ft), representing an increase of 5.2% on the
prior year. Retail sales per square foot rose 2.5% from GBP632 to
GBP648.
The retail gross margin was 65.5% (2010: 64.9%). This increase
was driven by buying efficiencies and less promotional activity in
our overseas markets during the year.
Retail operating costs were in line with our expectations. The
increase in these costs above the increase in average selling space
is a result of the new space added towards the end of the year that
will mature over time. This, combined with the improvement in sales
and gross margin, resulted in a slight reduction in retail
operating contribution from 18.3% to 18.0%.
Wholesale
We currently operate a wholesale business in the UK serving 15
countries across Europe and a wholesale business in the US.
Group wholesale sales rose by 28.9% to GBP35.0m (2010: GBP27.1m)
and the gross margin increased to 44.8% (2010: 41.9%) reflecting
buying efficiencies and the mix of product sales. The growth in
sales largely reflects the encouraging start to our US wholesale
business and a good performance from our UK wholesale business,
which includes our growing wholesale export business.
Licence income
We operate both territorial and product licences. Our
territorial licences cover the Middle East, Asia and Australasia,
through which we operate licenced retail stores and, in some
territories, wholesale operations. Our product licences cover
lingerie & sleepwear, perfume & fragrance, watches,
footwear, eyewear, neckwear and childrenswear.
Licence income was up 13.4% to GBP6.2m (2010: GBP5.5m).
Excluding the effect of our US product licences, underlying licence
income increased by 6.4%. We are pleased with the performances from
our territorial and product licences during the period. We have
seen continued good performances from our collections with product
licence partner, Debenhams, with whom we have an exclusive
childrenswear collection and, B by Ted Baker, a new and exclusive
lingerie & sleepwear collection.
Our US product licences included a full contribution in the
period from our US product licences signed directly with companies
who had previously held product sub-licences with Hartmarx
Corporation.
Collections
A good performance from Ted Baker Menswear was reflected by an
increase in sales of 11.1% to GBP98.2m (2010: GBP88.4m). Menswear
represented 52.3% of total sales (2010: 54.0%).
Ted Baker Womenswear delivered another strong performance with
sales up 19.0% to GBP89.5m (2010: GBP75.2m). Womenswear represented
47.7% of total sales (2010: 46.0%).
GEOGRAPHIC PERFORMANCE
United Kingdom and Europe
Sales in our UK and Europe retail division were up 8.2% to
GBP136.7m (2010: GBP126.4m). A good performance in the UK was
supported by improved trading conditions in Europe.
Average square footage rose by 4.1% over the period to 188,035
sq ft (2010: 180,606 sq ft). At 29 January 2011, total retail
square footage was 187,043 sq ft (2010: 186,024 sq ft) representing
an increase of 0.5%. Retail sales per square foot increased 2.1%
from GBP680 to GBP694.
During the year we opened seven further concessions in Eire, ten
concessions across Italy and one further concession in the UK,
offset by three concession closures in the UK and one in Eire. At
29 January 2011 we operated 33 stores (2010: 33), 165 concessions
(2010: 151) and 10 outlet stores (2010:10).
Our e-commerce business benefited from the further enhancements
made to our transactional website in the prior year, with a
significant increase in the sales compared to last year.
Sales in our UK wholesale division were up 13.1% to GBP30.7m
(2010: GBP27.1m). This performance recognises growth in our
wholesale export business and a strong performance from our UK
wholesale business given that the comparative period included sales
from wholesale accounts which have transferred to retail
concessions.
US
Sales from our US retail division increased by 29.6%, against a
difficult comparative period, to $20.6m (2010: $15.9m), which, in
sterling resulted in a 33.0% increase to GBP13.4m (2010:
GBP10.1m).
We have taken advantage of the challenging conditions presented
in the US to expand our business and opened four further stores
during the year in Scottsdale, Santa Monica, New York and Chicago.
Average square footage rose by 16.0% to 34,368 sq ft (2010: 29,632
sq ft) and retail sales per square foot increased 11.0% from $536
to $595. As at 29 January 2011 we now have 13 stores (2010: 9) and
2 outlets (2010: 2).
Towards the end of the year we launched our US transactional
website and are pleased with its progress at this early stage.
As previously mentioned, we re-launched our US wholesale
business under our own management during the year. This business
traded well with total sales reaching $6.6m (2010: nil).
Middle East, Asia and Australasia
We continue to develop the Ted Baker brand across the Middle
East, Asia and Australasia working closely with our partners in
those territories to ensure the visual merchandising of the stores
and the training of the teams reflect the Ted Baker culture. As at
29 January 2011 we operated a total of 23 stores (2010: 20 stores)
across these territories.
We opened stores in the Dubai Marina Mall, Dubai, and the Abu
Dhabi Marina Mall, Abu Dhabi during the year through our licence
partner, RSH Limited. We opened a store in November in the 360
Degree Mall, Kuwait, with our licence partner in that territory,
Al-Mutawa and Al-Khatib Retail Company, and are encouraged by early
trading. As at 29 January 2011 we operated 7 stores across the
Middle East (2010: 4 stores).
Our licence partner in Taiwan, Yun San, continued to make good
progress and opened a concession in the Hanshin Arena Shopping
Plaza in October.
At the start of the year we acquired two stores in Hong Kong
from our former licence partner in the territory, Li & Fung,
although one of these stores was scheduled to close in May. We are
very pleased with the performance of these stores under our own
management and as previously mentioned have now opened a further
store in Hong Kong. We are also actively seeking further
opportunities in the territory.
Including the closure of our store in Kuala Lumpur, Malaysia, as
at 29 January 2011 we operated a total of 13 stores across Asia
(2010: 14 stores).
In October we opened a store in the Pitt Street Mall, Sydney,
Australia. This is our third store in Australia through a joint
venture with our licence partner in that territory, Flair
Industries Pty Ltd. Our existing stores continue to make good
progress but the Sydney store has performed below our expectations
to date as the redevelopment of the mall has not yet been
completed. As at 29 January 2011 we operated 3 stores in
Australasia (2010: 2).
Financial Review
Revenue and Gross Margin
Group revenue increased by 14.7% to GBP187.7m (2010: GBP163.6m),
driven by an 11.9% increase in retail sales to GBP152.7m (2010:
GBP136.5m) and a 28.9% increase in wholesale sales to GBP35.0m
(2010: GBP27.1m).
The composite gross margin for the Group was 61.7% (2010:
61.1%), this net increase reflects buying efficiencies, which
benefited both our wholesale and retail businesses, and the
reduction in promotional activity throughout the year in our
overseas retail markets. The improvement in the composite gross
margin was partially offset by wholesale sales representing a
greater proportion of our sales mix than in the comparative period.
The retail gross margin increased to 65.5% (2010: 64.9%) and the
wholesale gross margin increased to 44.8% (2010: 41.9%).
Operating Expenses
Operating expenses rose by 14.3% to GBP97.9m (2010: GBP85.7m).
Excluding employee performance related bonus costs of GBP2.4m
(2010: GBP1.9m), underlying operating expenses rose by 14.1%.
Distribution costs, which include the costs of retail stores,
outlets and concessions, increased by 14.1% to GBP73.7m (2010:
GBP64.6m). The increase in these costs above the increase in
average selling space reflects the addition of new space towards
the end of the year that will mature over time. Administration
expenses increased by 18.9% to GBP24.3m (2010: GBP20.4m). Excluding
employee performance related bonus, administration expenses rose by
18.5% reflecting growth in the US team to support our US retail and
wholesale businesses and growth in other central functions to
support our expansion into international markets.
Profit Before Tax
Profit before tax grew by 24.2% to GBP24.2m (2010: GBP19.5m).
This result was after the payment of an employee performance
related bonus of GBP2.4m (2010: GBP1.9m). Bonus payments in both
years were as a result of over achievement of internal targets in
the financial year.
Impairment Losses
The Group incurred no impairment losses in the year (2010:
GBP0.8m). The impairment loss in the prior year related to the
carrying value of retail assets in Eire. This accounting charge had
no cash flow effect on the Group.
Finance Income and Expenses
Net interest payable during the year of GBP30,000 (2010:
GBP138,000). The reduction reflects the higher Group cash position
for the majority of the year compared to last year.
The foreign exchange loss during the year of GBP48,000 (2010:
GBP226,000) was due to the retranslation of monetary assets and
liabilities denominated in foreign currencies.
Taxation
The Group tax charge for the year was GBP6.9m (2010: GBP6.0m),
an effective tax rate of 28.7% (2010: 30.6%). The prior year rate
excluding impairment was 29.5%. The Emergency Budget, announced on
22 June 2010, announced that the UK corporation tax rate will fall
from 28.0% to 24.0% over a four year period. As a result we expect
to see a future reduction in our effective rate in line with these
changes.
Cash Flow
Net cash generated from operating activities was GBP18.1m (2010:
GBP21.1m). The decrease on the prior year is principally due to an
increase in working capital as opposed to a decrease in the prior
year, offset by increased profit.
Total working capital as per the Group balance sheet, which
comprises inventories, trade and other receivables and trade and
other payables increased by GBP6.5m to GBP34.9m (2010: GBP28.4m).
The movement in working capital as per the Group cash flow
statement is lower due to translation differences. The timing of
the Chinese New Year, which fell closer to the end of our financial
year, resulted in stock being receipted earlier into the business,
leading to an increase in inventories and trade payables. The
increase in inventories also reflects the below average levels at
the prior year end and the anticipated growth of our business in
the coming year. The increase in trade receivables reflected the
growth in the number of retail concessions and growth in our US
wholesale business.
Capital expenditure of GBP10.0m (2010: GBP4.5m) reflected the
opening and refurbishment of stores, concessions and outlets and
the continued investment in the infrastructure of the business.
Included within this figure is GBP1.0m (2010: GBP0.5m) of
expenditure which relates to stores that are due to open in
2011.
The purchase of the non-controlling entity of GBP0.6m (2010:
nil) relates to the purchase of the remaining shares in our joint
venture, Ted Baker (New York) Inc, that were held by a third party.
We now own 100.0% of this subsidiary (2010: 66.0%).
Shareholder Return
Basic earnings per share increased by 27.3% to 41.5p (2010:
32.6p).
The proposed final dividend of 14.3p per share will make a total
for the year of 20.6p per share (2010: 17.15p per share), an
increase of 20.1% on the previous year.
Free cash flow per share, which is calculated using the net cash
generated from operating activities, was 41.8p (2010: 48.8p), this
reduction was due to the change in working capital.
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 income is generated in the
local currency.
At the balance sheet date, the Group had hedged its projected
commitments in respect of the year ending January 2012.
Borrowing Facilities
The Group has borrowing facilities of GBP20.0m (2010: GBP15.0m)
available to it. The facilities comprise an unsecured committed
facility of GBP3.0m and a revolving advance facility of GBP7.0m
with the Royal Bank of Scotland PLC and an uncommitted, unsecured
multi-option facility of GBP10.0m with Barclays Bank PLC.
The borrowing facilities held with The Royal Bank of Scotland
PLC are made up by a GBP3.0m multi-currency facility and a GBP7.0m
revolving credit facility. The facility held with Barclays Bank PLC
is an uncommitted, unsecured multi-option facility of GBP10.0m. All
facilities expire on 5 February 2012. The Group will seek to renew
its facilities prior to these renewal dates. Based on current
forecasts the Group does not envisage any difficulties with the
renewal of these facilities.
At the balance sheet date, the borrowing facilities were
unutilised.
Principal Risks and Uncertainties
The Board recognises there are a number of risks and
uncertainties that face the Group. The Board, with the help of the
executive committee, that comprises the chief executive, the
finance director and subsidiary directors (the "Executive
Committee"), has established a structured approach to identify,
assess and manage these risks and this is regularly monitored and
updated by the Risk Committee. Although not exhaustive, the
following list highlights some of the principal risks which are not
shown in order of importance:
Issue Potential impact Mitigation
------------------ ------------------ ------------------ ------------------
Strategic Risks External events External events All factors
may occur which affecting these
may affect the stakeholders are
global, economic monitored closely
and financial on an ongoing
environment in basis ensuring
which we operate. that we are
These events can prepared for and
affect our can react to
suppliers, changes in the
customers and external
partners, risking environment,
an increase in allowing us to
our cost base and reduce our
adversely exposure as early
affecting our as possible. The
revenue spread of our
business and
supply chain also
helps to mitigate
these risks
------------------ ------------------ ------------------ ------------------
Brand and The strength of We carefully
reputational our brand and its consider each new
risk reputation are opportunity and
important to the each wholesale
business. There customer and
is a risk that partner with whom
our brand may be we do business.
undermined or These are
damaged by our monitored on an
actions or those ongoing basis to
of our partners ensure they
remain
appropriate to
the brand
------------------ ------------------ ------------------ ------------------
Fashion and As with all The Group
Design fashion brands maintains a high
there is a risk level of market
that our offer awareness and an
will not satisfy understanding of
the needs of our consumer trends
customers and fashion to
ensure that we
remain able to
respond to
changes in
consumer
preference
------------------ ------------------ ------------------ ------------------
Operational Risks Supply chain If garments do Our supply chain
not reach us on is diversified
time and to across a number
specification, of suppliers in
there is a risk different
of a loss of regions, reducing
revenue and reliance on a
customer small number of
confidence key suppliers.
Suppliers are
treated as key
business partners
and we work
closely with them
to mitigate these
risks
------------------ ------------------ ------------------ ------------------
Cost inflation We may face Operating costs
increases in our are monitored
operating costs regularly to
due to growth in ensure that any
payroll, property cost pressures
and other costs, are quickly
some of which are identified and
outside the scope appropriate
of our control action is taken
------------------ ------------------ ------------------ ------------------
Infrastructure There is a risk The business
of operational continuity plan
problems, is constantly
including reviewed and
disruption to the updated by the
infrastructure Risk Committee.
that supports our In addition,
business, which business
may lead to a disruption is
loss of revenue, covered by our
data and insurance
inventory policies
------------------ ------------------ ------------------
Social We are committed Four members of
Responsibility to operating in a the Executive
responsible and Committee have
sustainable been tasked with
manner as regards overseeing
our supply chain, specific areas of
environment and our social
community. If we responsibility
fail to operate agenda. The Group
in a manner that has an employee
supports our whose sole
philosophy, this responsibility is
could damage the to monitor this
trust and agenda and ensure
confidence of our our practices
stakeholders fall in line with
it
------------------ ------------------ ------------------ ------------------
Issue Potential impact Mitigation
------------------ ------------------ ------------------ ------------------
Operational Risks IT security Advances in Commitment of
- (continued) technology have additional
resulted in more specialist
data being resources and the
transmitted continual
electronically, upgrading of
posing an security
increased equipment and
security risk. software mitigate
There is also the these risks
possibility of
unintentional
loss of
controlled data
by authorised
users
------------------ ------------------ ------------------ ------------------
People The Group's Retention of key
performance is talent is
linked to the important and we
performance of take active steps
our people and, to provide
in particular, to stability and
the leadership security to the
from key key team. We
individuals. The carry out an
loss of a key annual
individual benchmarking
whether at review to ensure
management level that we provide
or within a competitive
specialist skill remuneration and
set could have a total reward
detrimental packages. We also
affect on our utilise long-term
operations and, incentive schemes
in some cases, to retain key
the creative talent. Employee
vision for the engagement
brand through our
culture and
environment
strengthen the
commitment of
team members and
has a positive
impact on our
attrition rate
------------------ ------------------ ------------------ ------------------
Regulatory and The Group The Group closely
legal framework operates within monitors changes
many markets in the legal and
globally and is regulatory
subject to framework within
regulations the markets in
affecting its which it
activities operates. We work
closely with
specialists in
each market to
ensure compliance
with local laws
and regulations
------------------ ------------------ ------------------ ------------------
Financial Risks Currency, In the course of The Group's
interest, credit its operations, policies for
and counterparty the Group is dealing with
credit risks exposed to these these risks are
financial risks discussed in
which if they detail in note 22
were to arise may of the Group's
have material financial
financial impacts statements.
of the Group
------------------ ------------------ ------------------ ------------------
Group Income Statement
For the 52 weeks ended 29 January 2011
52 weeks ended 52 weeks ended
29 January 30 January
Note 2011 2010
GBP'000 GBP'000
Revenue 2 187,700 163,586
Cost of sales (71,923) (63,659)
Gross profit 115,777 99,927
Distribution costs (73,690) (64,573)
-------------------------------------- ---- -------------- --------------
Administrative expenses
- Other administrative expenses (24,259) (20,395)
- Impairment losses - (750)
-------------------------------------- ---- -------------- --------------
Licence income 6,227 5,493
Other operating income 77 80
Operating profit 24,132 19,782
Finance income 4 42 10
Finance expenses 4 (120) (374)
Share of profit of jointly controlled
entity, net of tax 174 86
Profit before tax 3.5 24,228 19,504
Income tax expense 5 (6,948) (5,977)
-------------- --------------
Profit for the period 17,280 13,527
============== ==============
Attributable to:
Equity shareholders of the parent
company 17,280 13,576
Non-controlling interest - (49)
-------------- --------------
Profit for the period 17,280 13,527
============== ==============
Earnings per share 7
Basic 41.5p 32.6p
Diluted 41.4p 32.6p
Group Statement of Comprehensive Income
For the 52 weeks ended 29 January 2011
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
GBP'000 GBP'000
Profit for the period 17,280 13,527
--------------- ---------------
Other comprehensive income
Net effective portion of changes in fair
value of cash flow hedges 143 (1,334)
Net change in fair value of cash flow
hedges transferred to profit or loss (279) (391)
Exchange rate movement 112 (1,058)
--------------- ---------------
Other comprehensive income for the period (24) (2,783)
Total comprehensive income for the period 17,256 10,744
=============== ===============
Total comprehensive income attributable to:
- Equity shareholders of the parent company 17,256 10,793
- Non-controlling interest - (49)
--------------- ---------------
Total comprehensive income for the period 17,256 10,744
=============== ===============
Group Statement of Changes in Equity
For the 52 weeks ended 29 January 2011
Total equity
attributable
to equity
Cash shareholders
flow of the
Share Share hedging Translation Retained parent Non-controlling Total
capital premium reserve Reserve earnings company interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30
January 2010 2,160 9,137 (12) 124 54,906 66,315 (85) 66,230
Comprehensive
income for the
period
Profit for the
period - - - - 17,280 17,280 - 17,280
Deferred tax
associated with
movement in
hedging
reserve - - 55 - - 55 - 55
Effective
portion of
changes in fair
value of cash
flow hedges - - 88 - - 88 - 88
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - (279) - - (279) - (279)
Exchange rate
movement - - - 112 - 112 - 112
------- ------- ------- ----------- -------- ------------ --------------- -------
Total
comprehensive
income for the
period - - (136) 112 17,280 17,256 - 17,256
======= ======= ======= =========== ======== ============ =============== =======
Transactions
with owners
recorded
directly in
equity
Share options /
awards charge - - - - 426 426 - 426
Movement on
current /
deferred tax on
share options /
awards - - - - 298 298 - 298
Purchase of
non-controlling
interest - - - - (715) (715) 85 (630)
Disposal of own
/ treasury
shares - - - - 19 19 - 19
Dividends paid - - - - (7,575) (7,575) - (7,575)
------- ------- ------- ----------- -------- ------------ --------------- -------
Total
transactions
with owners - - - - (7,547) (7,547) 85 (7,462)
======= ======= ======= =========== ======== ============ =============== =======
Balance at 29
January 2011 2,160 9,137 (148) 236 64,639 76,024 - 76,024
======= ======= ======= =========== ======== ============ =============== =======
Group Statement of Changes in Equity
For the 52 weeks ended 30 January 2010
Total equity
attributable
to equity
Cash shareholders
flow of the
Share Share hedging Translation Retained parent Non-controlling Total
capital premium reserve Reserve earnings company interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
January 2009 2,160 9,137 1,713 1,182 48,010 62,202 (36) 62,166
Comprehensive
income for the
period
Profit for the
period - - - - 13,576 13,576 (49) 13,527
Deferred tax
associated
with movement
in hedging
reserve - - (375) - - (375) - (375)
Effective
portion of
changes in
fair value of
cash flow
hedges - - (959) - - (959) - (959)
Net change in
fair value of
cash flow
hedges
transferred
to profit or
loss - - (391) - - (391) - (391)
Exchange rate
movement - - - (1,058) - (1,058) - (1,058)
------- ------- ------- ----------- -------- ------------ --------------- -------
Total
comprehensive
income for
the period - - (1,725) (1,058) 13,576 10,793 (49) 10,744
======= ======= ======= =========== ======== ============ =============== =======
Transactions
with owners
recorded
directly in
equity
Share options
/ awards
charge - - - - 192 192 - 192
Movement on
current /
deferred tax
on share
options /
awards - - - - 13 13 - 13
Disposal of
own /
treasury
shares - - - - 43 43 - 43
Dividends paid - - - - (6,928) (6,928) - (6,928)
------- ------- ------- ----------- -------- ------------ --------------- -------
Total
transactions
with owners - - - - (6,680) (6,680) - (6,680)
======= ======= ======= =========== ======== ============ =============== =======
Balance at 30
January 2010 2,160 9,137 (12) 124 54,906 66,315 (85) 66,230
======= ======= ======= =========== ======== ============ =============== =======
Company Statement of Changes in Equity
For the 52 weeks ended 29 January 2011
Share Share Other Retained
capital premium reserves earnings Total Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30
January
2010 2,160 9,137 14,605 15,381 41,283
Profit for
the period - - - 8,060 8,060
Transactions
with owners
recorded
directly in
equity
Share options
/ awards
charge - - - 69 69
Share options
/ awards
granted to
subsidiary
employees - - 357 - 357
Disposal of
own shares - - - 19 19
Dividends
paid - - - (7,575) (7,575)
----------- ------------ ----------- --------- ------------
Total
transactions
with owners - - 357 (7,487) (7,130)
=========== ============ =========== ========= ============
Balance at 29
January
2011 2,160 9,137 14,962 15,954 42,213
=========== ============ =========== ========= ============
For the 52 weeks ended 30 January 2010
Share Share Other Retained
capital premium reserves earnings Total Equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
January
2009 2,160 9,137 14,445 453 26,195
Profit for
the period - - - 21,781 21,781
Transactions
with owners
recorded
directly in
equity
Share options
/ awards
charge - - - 32 32
Share options
/ awards
granted to
subsidiary
employees - - 160 - 160
Disposal of
own shares - - - 43 43
Dividends
paid - - - (6,928) (6,928)
----------- ------------ ----------- --------- ------------
Total
transactions
with owners - - 160 (6,853) (6,693)
=========== ============ =========== ========= ============
Balance at 30
January
2010 2,160 9,137 14,605 15,381 41,283
=========== ============ =========== ========= ============
Group and Company Balance Sheet
At 29 January 2011
Group Company Group Company
29 January 29 January 30 January 30 January
Note 2011 2011 2010 2010
==================== ==== =========== =========== =========== ===========
GBP'000 GBP'000 GBP'000 GBP'000
==================== ==== =========== =========== =========== ===========
Non-current assets
==================== ==== =========== =========== =========== ===========
Intangible assets 997 - 634 -
==================== ==== =========== =========== =========== ===========
Property, plant and
equipment 8 28,368 - 25,508 -
==================== ==== =========== =========== =========== ===========
Investments in
subsidiary - 17,051 - 16,694
==================== ==== =========== =========== =========== ===========
Investment in equity
accounted investee 345 - 171 -
==================== ==== =========== =========== =========== ===========
Deferred tax assets 2,470 - 1,598 -
==================== ==== =========== =========== =========== ===========
Prepayments 777 - 842 -
==================== ==== ----------- ----------- ----------- -----------
32,957 17,051 28,753 16,694
==================== ==== ----------- ----------- ----------- -----------
Current assets
==================== ==== =========== =========== =========== ===========
Inventories 42,492 - 33,450 -
==================== ==== =========== =========== =========== ===========
Trade and other
receivables 27,384 24,712 19,698 24,112
==================== ==== =========== =========== =========== ===========
Amount due from
equity accounted
investee 286 - 261 -
==================== ==== =========== =========== =========== ===========
Derivative financial
assets 102 - 280 -
==================== ==== =========== =========== =========== ===========
Cash and cash
equivalents 13,536 464 13,698 489
==================== ==== ----------- ----------- ----------- -----------
83,800 25,176 67,387 24,601
==================== ==== ----------- ----------- ----------- -----------
Current liabilities
==================== ==== =========== =========== =========== ===========
Trade and other
payables (34,970) (14) (24,779) (12)
==================== ==== =========== =========== =========== ===========
Income tax payable (3,761) - (3,511) -
==================== ==== =========== =========== =========== ===========
Derivative financial
liabilities (455) - (304) -
==================== ==== ----------- ----------- ----------- -----------
(39,186) (14) (28,594) (12)
==================== ==== ----------- ----------- ----------- -----------
Non-current
liabilities
==================== ==== =========== =========== =========== ===========
Deferred tax
liabilities (1,547) - (1,316) -
==================== ==== ----------- ----------- ----------- -----------
(1,547) - (1,316) -
==================== ==== ----------- ----------- ----------- -----------
Net assets 76,024 42,213 66,230 41,283
==================== ==== =========== =========== =========== ===========
Equity
==================== ==== =========== =========== =========== ===========
Share capital 2,160 2,160 2,160 2,160
==================== ==== =========== =========== =========== ===========
Share premium 9,137 9,137 9,137 9,137
==================== ==== =========== =========== =========== ===========
Other reserves (148) 14,962 (12) 14,605
==================== ==== =========== =========== =========== ===========
Translation reserve 236 - 124 -
==================== ==== =========== =========== =========== ===========
Retained earnings 64,639 15,954 54,906 15,381
==================== ==== ----------- ----------- ----------- -----------
Total equity
attributable to
equity shareholders
of the parent
company 76,024 42,213 66,315 41,283
==================== ==== =========== =========== =========== ===========
Non-controlling
interest - - (85) -
==================== ==== ----------- ----------- ----------- -----------
Total equity 76,024 42,213 66,230 41,283
==================== ==== =========== =========== =========== ===========
These financial statements were approved by the Board of
Directors on 24 March 2011 and were signed on its behalf by:
L D Page
Director
Group and Company Cash Flow Statement
For the 52 weeks ended 29 January 2011
Group Company Group Company
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
29 January 29 January 30 January 30 January
2011 2011 2010 2010
GBP'000 GBP'000 GBP'000 GBP'000
Cash generated from
operations
Profit for the period 17,280 8,060 13,527 21,781
Adjusted for:
Income tax expense 6,948 - 5,977 -
Depreciation 6,470 - 6,295 -
Impairment losses - - 750 -
Loss on disposal of
property, plant &
equipment 225 - 110 -
Share options /
awards charge 426 69 192 32
Net finance losses /
(gains) 30 (5) 138 (3)
Net change in
derivative financial
assets and
liabilities 138 - 1,118 -
Share of profit in
joint venture (174) - (86) -
Decrease in
non-current
prepayments 61 - 64 -
(Increase) / decrease
in inventory (9,026) - 3,026 -
(Increase) / decrease
in trade and other
receivables (7,511) (600) 1,649 (14,960)
Increase / (decrease)
in trade and other
payables 10,140 2 (4,908) 10
Interest paid (83) - (157) -
Income taxes paid (6,859) - (6,602) -
------------ ------------ ------------ ------------
Net cash generated
from operating
activities 18,065 7,526 21,093 6,860
------------ ------------ ------------ ------------
Cash flow from
investing activities
Purchases of
property, plant &
equipment (10,036) - (4,538) -
Purchase of
non-controlling
entity (630) - - -
Proceeds from sale of
property, plant &
equipment 32 - - -
Interest received 38 5 8 3
------------ ------------ ------------ ------------
Net cash from
investing
activities (10,596) 5 (4,530) 3
------------ ------------ ------------ ------------
Cash flow financing
activities
Own shares acquired - - - -
Proceeds from option
holders for exercise
of options 19 19 43 43
Dividends paid (7,575) (7,575) (6,928) (6,928)
------------ ------------ ------------ ------------
Net cash from
financing
activities (7,556) (7,556) (6,885) (6,885)
------------ ------------ ------------ ------------
Net (decrease) /
increase in cash and
cash equivalents (87) (25) 9,678 (22)
Cash and cash
equivalents at 30
January 2010 / 31
January 2009 13,698 489 4,660 511
Exchange rate
movement (75) - (640) -
------------ ------------ ------------ ------------
Cash and cash
equivalents at 29
January 2011 / 30
January 2010 13,536 464 13,698 489
============ ============ ============ ============
Notes to the Financial Statements
For the 52 weeks ended 29 January 2011
1. Basis of preparation
EU law (IAS Regulation EC 1606/2002) requires that the Group
financial statements, for the 52 weeks ended 29 January 2011, 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 29
January 2011.
The financial information set out above does not constitute the
Group's statutory accounts for the 52 weeks ended 29 January 2011
or 52 weeks ended 30 January 2010. The annual financial information
presented in this annual results announcement for the 52 weeks
ended 29 January 2011 is based on, and is consistent with, that in
the Group's audited financial statements for the 52 weeks ended 29
January 2011, and those financial statements will be delivered
during the second week of May 2011. The auditor's report on those
financial statements is unqualified and does not contain any
statement under Section 498 (2) or (3) of the Companies Act
2006.
Statutory accounts for 30 January 2010 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 498 (2) or (3) of the Companies
Act 2006.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Business Review on pages 4 to 6. The financial
position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the Chairman's Statement on
pages 2 and 3. In addition the Group's financial statements include
the Group's objectives, policies and processes for managing its
capital; its financial risk management objectives; details of its
financial instruments and hedging activities; and its exposures to
credit risk and liquidity risk.
The Group's forecasts and projections, taking into account
reasonably possible changes in trading performance, show that the
Group has sufficient financial resources. As a consequence the
Directors have a reasonable expectation that the Company and the
Group are well placed to manage their business risks and to
continue in operational existence for the foreseeable future,
despite the current uncertain global economic outlook. Accordingly,
the Directors continue to adopt the going concern basis in
preparing the consolidated financial statements.
Significant accounting policies
Except as described below, the accounting policies applied by
the Group in this annual results announcement are the same as those
applied by the Group in its consolidated financial statements for
the 52 weeks ended 30 January 2010.
The following adopted accounting standards and interpretations,
issued by the International Accounting Standards Board (IASB) or
International Financial Reporting, Interpretations Committee
(IFRIC), have been adopted for the first time by the Group in the
current financial year with no significant impact on its
consolidated results or financial position:
-- IFRS 3 (revised 2008), Business Combinations;
-- Amendment to IAS 27, Consolidated and Separate Financial
Statements;
-- Amendment to IAS 39, Financial Instruments: Recognition and
Measurement: Eligible Hedged Items;
-- Amendment to IAS 2, Share-based Payment: Group Cash-settled
Share-based Payment Transactions;
-- Improvements to IFRS's 2009;
-- IFRIC 17, Distributions of Non-cash Assets to Owners; and
-- IFRIC 18, Transfers of Assets from Customers.
The Group does not consider that any other standards, amendments
or interpretations issued by the IASB, but not yet applicable, will
have significant impact on the financial statements.
2. Segment information
The Group has three reportable segments; retail, wholesale and
licence income.
For each of the three segments, the Group's chief operating
decision maker (the "Board") reviews internal management reports on
a four weekly basis.
Performance for the retail segment is measured based on
operating contribution, whereas performance of the wholesale
segment is measured based on gross profit and performance of the
licence segment is measured based on royalty income, as included in
the internal management reports that are reviewed by the Board.
Segment results are used to measure performance as management
believes that such information is the most relevant in evaluating
the performance of certain segments relative to other entities that
operate within these industries. Inter-segment pricing is
determined on an arm's length basis.
a) Segment revenue and segment result
52 weeks ended 29 January
2011 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 152,724 34,976 - 187,700
Cost of sales (52,615) (19,308) - (71,923)
--------- ---------- --------------- ---------
Gross profit 100,109 15,668 - 115,777
Operating costs (72,649) - - (72,649)
--------- ---------- --------------- ---------
Operating contribution 27,460 15,668 - 43,128
Licence income - - 6,227 6,227
--------- ---------- --------------- ---------
Segment result 27,460 15,668 6,227 49,355
Reconciliation of segment
result to profit before
tax
Segment result 27,460 15,668 6,227 49,355
Other operating costs (25,300)
Other operating income 77
---------
Operating profit 24,132
Net finance expense (78)
Share of profit of jointly
controlled entity, net of
tax 174
---------
Profit before tax 24,228
=========
Capital expenditure 6,336 360 - 6,696
Unallocated capital
expenditure 2,812
---------
Total capital expenditure 9,508
=========
Depreciation 4,980 132 - 5,112
Unallocated depreciation 1,358
---------
Total depreciation 6,470
=========
Segment assets 86,784 22,946 - 109,730
Other assets 7,027
---------
Total assets 116,757
=========
Segment liabilities (28,824) (6,601) - (35,425)
Other liabilities (5,308)
---------
Total liabilities (40,733)
=========
Net assets 76,024
=========
Wholesale sales are shown after the elimination of inter-segment
sales of GBP14,596,000 (2010: GBP7,113,000).
52 weeks ended 30 January
2010 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 136,455 27,131 - 163,586
Cost of sales (47,884) (15,775) - (63,659)
--------- ---------- --------------- ---------
Gross profit 88,571 11,356 - 99,927
Operating costs (63,641) - - (63,641)
--------- ---------- --------------- ---------
Operating contribution 24,930 11,356 - 36,286
Licence income - - 5,493 5,493
--------- ---------- --------------- ---------
Segment result 24,930 11,356 5,493 41,779
Reconciliation of segment
result to profit before
tax
Segment result 24,930 11,356 5,493 41,779
Impairment losses (750) - - (750)
Other operating costs (21,327)
Other operating income 80
---------
Operating profit 19,782
Net finance expense (364)
Share of profit of jointly
controlled entity, net of
tax 86
---------
Profit before tax 19,504
=========
Capital expenditure 3,844 134 - 3,978
Unallocated capital
expenditure 566
---------
Total capital expenditure 4,544
=========
Depreciation 4,958 102 - 5,060
Unallocated depreciation 1,235
---------
Total depreciation 6,295
=========
Segment assets 74,896 16,769 - 91,665
Other assets 4,475
---------
Total assets 96,140
=========
Segment liabilities (20,923) (4,160) - (25,083)
Other liabilities (4,827)
---------
Total liabilities (29,910)
=========
Net assets 66,230
=========
b) Geographical information
UK & Europe US Other Total
GBP'000 GBP'000 GBP'000 GBP'000
52 weeks ended 29 January 2011
Revenue 167,422 17,678 2,600 187,700
Non-current assets* 23,431 6,922 134 30,487
52 weeks ended 30 January 2010
Revenue 153,527 10,059 - 163,586
Non-current assets* 22,885 4,270 - 27,155
*Non-current assets exclude deferred tax assets.
c) Revenue by collection
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
------------ --------------- ---------------
GBP'000 GBP'000
Menswear 98,229 88,376
Womenswear 89,471 75,210
--------------- ---------------
187,700 163,586
=============== ===============
3. Profit before tax
52 weeks ended 52 weeks ended
29 January 30 January
Profit before tax is stated after charging: 2011 2010
GBP'000 GBP'000
Depreciation 6,470 6,295
Impairment losses - 750
Operating lease rentals for leasehold
properties 15,865 15,510
Fees payable to the Company's auditor
for the audit of the
Company's annual accounts 9 9
Fees payable to the Company's auditor
and associates for the
audit of the Company's subsidiaries,
pursuant to legislation 76 76
Fees payable to the Company's auditor
for other services
supplied, pursuant to legislation 20 20
Other services provided by the Company's
auditor 20 3
Loss on sale of property, plant & equipment 225 110
4. Finance income and expenses
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
GBP'000 GBP'000
Finance income
- Interest receivable 35 10
- Foreign exchange gains 7 -
-------------- --------------
42 10
============== ==============
Finance expenses
- Interest payable (65) (148)
- Foreign exchange losses (55) (226)
-------------- --------------
(120) (374)
============== ==============
5. Income tax expense
a) The tax charge comprises
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
GBP'000 GBP'000
Current tax 7,461 6,336
Deferred tax (633) (521)
Prior year under provision 120 162
-------------- --------------
6,948 5,977
============== ==============
b) Deferred tax movement by type
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
---------------------------- -------------- --------------
GBP'000 GBP'000
Property, plant & equipment (412) (396)
Share based payments (159) (6)
Overseas (gains) (41) (111)
Inventory (12) (43)
Other (9) 35
-------------- --------------
(633) (521)
============== ==============
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.
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
------------------------------------------ -------------- --------------
GBP'000 GBP'000
Profit before tax 24,228 19,504
Profit multiplied by the standard rate
in the UK - 28%, (2010: standard rate
in the UK of 28%) 6,784 5,461
Expenses not deductible for tax purposes 191 427
Overseas losses not previously recognised 133 42
Current and deferred tax movement on
share awards and options (46) 49
Prior year under provision 120 162
Effect of rate change on corporation
tax (66) -
Difference due to overseas tax rates (168) (164)
Total income tax expense 6,948 5,977
============== ==============
d) Deferred and current tax recognised directly in equity
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
-------------------------------------- -------------- --------------
GBP'000 GBP'000
Deferred tax credit on share awards
and options (298) (13)
Deferred tax associated with movement
in hedging reserve (55) -
-------------- --------------
(353) (13)
============== ==============
The Chancellor announced in the Budget on 23 March 2011 that the
decrease in the UK corporation tax rate for large companies will be
increased such that there will be a 2% reduction in the headline
rate from 28% to 26% with effect from 1 April 2011. The proposed 1%
per annum reductions in the headline rate for the next 4 years
remains such that it is proposed that the headline rate will
decrease to 23% by 1 April 2014.
As the deferred tax assets and liabilities should be recognised
based on the corporation tax rates substantively enacted at the
balance sheet date, the 27% rate remains appropriate for the
current year.
Accordingly, in 2010, GBP66,000 has been credited to the income
statement. Had the further tax rate changes been substantively
enacted before the balance sheet date, it would have had the effect
of reducing the net deferred tax liability to UK operations by
GBP171,000.
6. Dividends per share
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
------------------------------------------- -------------- --------------
GBP'000 GBP'000
Final dividend paid for prior year
of 0.5p per ordinary share (2010: 11.4p) 208 4,743
Second interim dividend paid for prior
year of 11.4p per ordinary share (2010:
GBPNil) 4,745 -
Interim dividend paid of 6.3p per ordinary
share (2010: 5.25p) 2,622 2,185
-------------- --------------
7,575 6,928
============== ==============
A final dividend in respect of 2011 of 14.3p per share,
amounting to a dividend payable of GBP5,952,201, is to be proposed
at the Annual General Meeting on 14 June 2011.
7. Earnings per share
52 weeks ended 52 weeks ended
29 January 30 January
2011 2010
---------------------------------------- -------------- --------------
Number of shares: No. No.
Weighted number of ordinary shares
outstanding 41,622,472 41,613,798
Effect of dilutive options 163,956 10,183
Weighted number of ordinary shares
outstanding - diluted 41,786,428 41,623,981
============== ==============
Earnings: GBP'000 GBP'000
Profit for the period basic and diluted 17,280 13,576
Basic earnings per share 41.5 32.6
Diluted earnings per share 41.4 32.6
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 conditional
share awards distributed, if they vest, are covered by shares held
either in treasury or by these 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, the
Ted Baker Performance Share Plan and the Ted Baker 2009 VCP.
There were no share related events after the balance sheet date
that may affect earnings per share.
8. Property, plant and equipment
Fixtures,
fittings Assets
Leasehold & office Motor under
Improvements equipment vehicles construction Total
---------------- ------------- ---------- --------- ------------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 30 January
2010 33,485 29,974 170 506 64,135
Additions 4,380 4,603 - 525 9,508
Disposals (279) (249) (45) - (573)
Exchange rate
movement 71 30 1 - 102
------------- ---------- --------- ------------- -------
At 29 January
2011 37,657 34,358 126 1,031 73,172
Depreciation
At 30 January
2010 15,926 22,562 139 - 38,627
Charge for the
year 2,785 3,679 6 - 6,470
Disposals (105) (178) (35) - (318)
Exchange rate
movement 9 15 1 - 25
------------- ---------- --------- ------------- -------
At 29 January
2011 18,615 26,078 111 - 44,804
------------- ---------- --------- ------------- -------
Net book value
------------- ---------- --------- ------------- -------
At 30 January
2010 17,559 7,412 31 506 25,508
============= ========== ========= ============= =======
At 29 January
2011 19,042 8,280 15 1,031 28,368
============= ========== ========= ============= =======
Additions included within the assets under construction category
are stated net of transfers to other property, plant and equipment
categories. Transfers from the assets under construction category
in the period amounted to GBP506,000 (2010: GBP203,000) whilst
additions into this category were GBP1,031,000 (2010:
GBP506,000).
Impairment losses recognised in the year were GBPnil (2010:
GBP750,000). The impairment losses in the prior year were as a
result of a review of the carrying value of the portfolio of store
assets.
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 estimates 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 rate used to calculate value in use is
derived from the Group's weighted average cost of capital.
The impairment losses relate to stores whose recoverable amounts
(value in use) did not exceed the asset carrying values. In all
cases, impairment losses arose due to stores performing below
projected trading levels.
Fixtures,
fittings
Leasehold & office Motor Assets under
Improvements equipment vehicles construction Total
---------------- ------------- ---------- --------- ------------- -------
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 31 January
2009 32,188 29,021 165 203 61,577
Additions 2,043 2,186 12 303 4,544
Disposals (14) (815) - - (829)
Exchange rate
movement (732) (418) (7) - (1,157)
------------- ---------- --------- ------------- -------
At 30 January
2010 33,485 29,974 170 506 64,135
Depreciation
At 31 January
2009 13,019 19,734 123 - 32,876
Charge for the
year 2,508 3,768 19 - 6,295
Impairment
losses 680 70 - - 750
Disposals (8) (711) - - (719)
Exchange rate
movement (273) (299) (3) - (575)
------------- ---------- --------- ------------- -------
At 30 January
2010 15,926 22,562 139 - 38,627
------------- ---------- --------- ------------- -------
Net book value
------------- ---------- --------- ------------- -------
At 31 January
2009 19,169 9,287 42 203 28,701
============= ========== ========= ============= =======
At 30 January
2010 17,559 7,412 31 506 25,508
============= ========== ========= ============= =======
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 29 January 2011, the main trading company owed the parent
company GBP24,710,000 (2010: GBP24,108,000). The main trading
company was owed GBP23,313,000 (2010: GBP11,869,000) 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 with Flair
Industries Pty Ltd. As at 29 January 2011, the joint venture owed
GBP286,000 to the main trading company (2010: GBP261,000). In the
period, the value of sales made to the joint venture by the Group
was GBP565,000 (2010: GBP364,000).
The Group considers the Board of executive directors as key
management. Further details are provided in the Remuneration Report
in the Group's financial statements.
Responsibility statement of the directors in respect of the
Annual Results
We, the directors of the Company, confirm that to the best of
our knowledge:
(a) 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
(b) pursuant to Chapter 4 of the Disclosure and Transparency
Rules, the Group's annual results 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.
On behalf of the Board
R S Kelvin L D Page
Chief Executive Finance Director
24 March 2011 24 March 2011
Cautionary statement regarding forward-looking statements
This document 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 document, and will not be updated during the year. The
directors can give no assurance that these expectations will prove
to be 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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