TIDMTED
RNS Number : 7427Z
Ted Baker PLC
21 March 2012
Ted Baker PLC
("Ted Baker", the "Group")
Annual Results for the 52 weeks ended 28 January 2012
Excellent Group performance and investing in strong
foundations for our future
Highlights
2012 2011 Change
Group Revenue GBP215.6m GBP187.7m 14.9%
Profit Before Tax and Exceptional
Costs GBP27.1m GBP24.2m 11.7%
Profit Before Tax GBP24.3m GBP24.2m 0.1%
Adjusted EPS 48.9p 41.5p 17.8%
Basic EPS 42.2p 41.5p 1.7%
Total Dividend 23.4p 20.6p 13.6%
-- Retail sales up 14.1% on a 6.6% increase in average retail square footage
o UK and Europe retail sales up 8.7% to GBP148.6m
o US retail sales up 69.4% to $34.9m
-- New retail stores opened in Manchester, Paris, Hong Kong and San Diego
-- New retail concessions opened in the US, Spain and Portugal
-- Wholesale sales up 18.5% to GBP41.4m
-- Licence income up 8.1% to GBP6.7m
-- Proposed final dividend of 16.25p, making the total dividend 23.4p, an increase of 13.6%
-- First store opened in Tokyo, Japan and first concession
opened in Seoul, Korea since the year end
Commenting, Ray Kelvin CBE, Founder and Chief Executive,
said:
"This has been a very exciting year for the Ted Baker brand. We
have further developed our presence in established markets with new
stores in Europe, the US and Hong Kong and laid strong foundations
to support growth into new markets in 2012 with the recent openings
of our first store in Japan and an opening in Korea as well as
exciting new openings planned in London, Fifth Avenue, New York,
Toronto, Canada and China later this year.
The Group's excellent results for the year, delivered against a
challenging trading backdrop, are testament to the strength of the
Ted Baker brand, our collections and, above all, the energy and
commitment of our team in bringing Ted to the world stage. I would
like to take this opportunity to thank them all for their
Tedication."
Enquiries:
Ted Baker PLC Tel: 020 7796 4133 on 21 March 2012 only
Ray Kelvin CBE, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler Tel: 020 7796 4133
Alex Brennan
Kate Hough
Michael Sandler
www.tedbaker.com
www.tedbakerplc.com
Media images available for download at:
http://www.tedbakerplc.com/ted/en/mediacentre/imagelibrary
Chairman's Statement
The Group has delivered an excellent result against a
challenging back drop. This strong performance resulted in a 14.9%
increase in Group revenue to GBP215.6m (2011: GBP187.7m) and an
11.7% increase to GBP27.1m in profit before tax and exceptional
costs.
The retail division performed well across all markets and
delivered an increase in revenue of 14.1% to GBP174.2m, on an
increase in average square footage of 6.6%. Gross margins were
broadly maintained at 65.2% (2011: 65.5%).
Wholesale sales for the Group increased by 18.5% to GBP41.4m
(2011: GBP35.0m). This reflected a good performance from our UK
wholesale business, which also includes the results of our UK
export business, and the continued growth of our US wholesale
business, which contributed its first full year of trading under
our own management.
Licence income from our territorial and product licences
increased by 8.1% to GBP6.7m (2011: GBP6.2m).
Results
Group revenue for the 52 weeks ended 28 January 2012 rose by
14.9% to GBP215.6m (2011: GBP187.7m). The composite gross margin
has decreased slightly to 61.3% (2011: 61.7%), reflecting a change
in mix between retail and wholesale sales whilst input margins were
largely maintained.
Profit before tax and exceptional costs increased by 11.7% to
GBP27.1m (2011: GBP24.2m) and profit before tax was slightly above
the prior year at GBP24.3m (2011: GBP24.2m).
Adjusted basic earnings per share excluding exceptional costs
increased by 17.8% to 48.9p (2011: 41.5p) and basic earnings per
share increased by 1.7% to 42.2p (2011: 41.5p).
Exceptional costs incurred during the year of GBP2.8m (2011:
nil) are in respect of rent for stores that will not commence
trading until 2012, set up costs in relation to our expansion into
China and a provision for bad and doubtful debts in respect of our
exposure in Greece.
The Group's net cash position at the end of the year was GBP1.8m
(2011: GBP13.5m). The reduction in cash was due to our investment
in inventory and capital expenditure in anticipation of the planned
expansion of the Group in the coming year.
Dividends
The Board is recommending a final dividend of 16.25p per share,
making a total for the year of 23.4p per share (2011: 20.6p per
share), an increase of 13.6% on the prior year. Subject to
approval, the final dividend will be paid on 15 June 2012 to
shareholders on the register on 11 May 2012.
People
I would like to take this opportunity to thank all of my
colleagues around the world. This strong performance is testament
to the dedication and commitment of the Ted Baker team. Their
passion and enthusiasm are key factors in the success and
continuing development of our brand.
Current Trading and Outlook
The Ted Baker brand continues to perform well in an uncertain
trading environment. We are pleased by the initial positive
reaction to our Spring/Summer collections and believe that we are
well placed to deal with the challenges and opportunities ahead. We
are excited by our planned expansion and investment in our
businesses overseas, which include openings on Fifth Avenue, New
York, Toronto, Canada, Tokyo, Japan, Seoul, Korea and Beijing,
China.
Retail
The new financial year has started well in all our markets.
In the US, we have opened a further eight concessions in a
leading department store and plan to open a further eleven
concessions during the year. We will be opening a store on Fifth
Avenue, New York in July. We will be opening our first store in
Toronto, Canada in November.
In Europe, we have opened three concessions through a leading
department store in the Netherlands and we will be opening further
concessions in Eire and Spain during the year.
In the UK, we will be opening a store on the Brompton Road,
London in the middle of the year.
In Asia, we have very recently opened a store in Tokyo, Japan
and our first concession through a leading department store in
Seoul, Korea. We will be opening a store in Beijing, China in the
middle of the year and we continue to seek opportunities for
further stores in Hong Kong.
Wholesale
Trading in our wholesale business has started well and in line
with our expectations. We anticipate further growth in our US
wholesale business and export business in the coming year, with
sales from our UK wholesale business broadly level on last year
given the challenging environment faced by our Trustees. This
should result in single digit growth in our wholesale business in
the coming year.
Licence Income
Our product and territorial licences continue to perform well
and are in line with expectations.
We plan to open stores in Kuala Lumpur and Abu Dhabi during the
coming year with our licence partners in those territories.
Group
The Ted Baker brand continues to perform well in an uncertain
trading environment and we believe we are well placed to deal with
the challenges and opportunities ahead. We continue to ensure that
our costs and commitments are controlled and in line with trends
anticipated for 2012.
We remain focused on our multi-channel distribution strategy and
look forward to the further expansion of 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 12 June
2012.
Robert Breare
Non-Executive Chairman
21 March 2012
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 by Ted Baker;
Accessories; Lingerie and Sleepwear; 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 independent stores 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, the US
and Hong Kong, an e-commerce business based in the UK, primarily
serving the UK and Europe, with a separate site dedicated to the
Americas and an e-commerce business with some of our concession
partners.
The retail division delivered a strong performance with sales up
14.1% to GBP174.2m (2011: GBP152.7m). Average retail square footage
rose by 6.6% over the year to 240,815 sq ft (2011: 225,828 sq ft).
Total retail square footage at 28 January 2012 was 253,635 sq ft
(2011: 229,026 sq ft), an increase of 10.7% on the prior year.
Retail sales per square foot rose 5.7% from GBP648 to GBP685.
Sales through our e-commerce business increased by 42.2% to
GBP9.1m (2011: GBP6.4m). During the period we launched a "Click and
Collect" service in the UK and were pleased with the response from
our customers.
The retail gross margin fell slightly to 65.2% (2011: 65.5%).
Input margins have been largely maintained and the slight reduction
in the gross margin was as a result of increased promotional
activity in the first half of the year and a slight change in mix
between full price and outlet sales.
Retail operating costs increased in line with our expectations
to GBP81.2m (2011: GBP72.6m) and as a percentage of retail sales
fell to 46.6% (2011: 47.6%), primarily driven by our more
established markets, the UK and the US. This combined with the
slight reduction in the retail gross margin resulted in an increase
in retail operating contribution of 18.5% (2011: 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 increased by 18.5% to GBP41.4m (2011:
GBP35.0m) and the gross margin increased to 45.1% (2011: 44.8%).
The increase in sales predominantly reflects a good performance
from our UK wholesale business and continuing growth in both our
wholesale export business and our US wholesale business, which
contributed its first full year of trading under our own
management.
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 8.1% to GBP6.7m (2011: GBP6.2m). We have
seen good performances from our collections with product licence
partner Debenhams, with whom we have an exclusive childrenswear
collection and, B by Ted Baker, an exclusive lingerie and sleepwear
collection, and our licensed footwear partner, Pentland Group. Our
licensed stores in the Middle East and Asia performed well during
the period.
Collections
Ted Baker Womenswear delivered a strong performance with sales
up 20.0% to GBP107.4m (2011: GBP89.5m). Womenswear benefited from a
greater proportion of the space added during the period and as a
result represented 49.8% of total sales (2011: 47.7%).
Ted Baker Menswear performed well with sales increasing by 10.2%
to GBP108.3m (2011: GBP98.2m). Menswear represented 50.2% of total
sales in the period (2011: 52.3%).
GEOGRAPHIC PERFORMANCE
United Kingdom and Europe
Sales in our UK and Europe retail division were up 8.7% to
GBP148.6m (2011: GBP136.7m). This good performance was delivered
despite a subdued start to retail trading at the start of the year
and the unseasonably warm weather experienced in the Autumn.
Average retail square footage rose by 2.8% over the period to
193,389 sq ft (2011: 188,035 sq ft). At 28 January 2012 total
retail square footage was 201,223 sq ft (2011: 187,043 sq ft)
representing an increase of 7.6%. Retail sales per square foot
increased by 4.2% from GBP694 to GBP723.
During the year we opened a store in Manchester, a second store
in Paris, fourteen concessions through a leading department store
in Spain and Portugal and a further concession in Dublin and we
were pleased with their performances during the period. During the
second half of the year we relocated our stores in the Bluewater
shopping centre and Bicester Outlet Village to larger units and
these have performed well.
As part of an ongoing review of our store portfolio we disposed
of our Langley Court and Westbourne Grove, London stores, whilst
our store in the South Terminal of Gatwick was closed as a result
of redevelopment plans for the terminal building. During the year
we took the decision to close our concessions in Italy. At 28
January 2012 we operated 33 stores (2011: 33), 169 concessions
(2011: 165) and 10 outlet stores (2011: 10).
Our e-commerce business performed well during the period with a
significant increase in sales compared to last year.
Sales from our UK wholesale division increased by 15.6% to
GBP35.5m (2011: GBP30.7m) reflecting a good performance from our UK
wholesale business and continued growth in our wholesale export
business.
US
Sales from our US retail division increased by 69.4% to $34.9m
(2011: $20.6m) which, in sterling, resulted in a 62.7% increase to
GBP21.8m (2011: GBP13.4m).
During the year we opened eleven concessions through a leading
department store and are very pleased with their performance.
Towards the end of the year we opened a further store in San Diego
and an outlet store in Wrentham, near Boston, and are pleased with
their performances at this early stage.
Average square footage rose by 24.4% to 42,761 sq ft (2011:
34,368 sq ft) and retail sales per square foot increased 35.1% from
$595 to $804. This partly reflects an improvement in consumer
confidence in this market and partly due to higher sales densities
in the concessions opened during the year. As at 28 January 2012 we
had 14 stores (2011: 13), 11 concessions (2011: nil) and 3 outlet
stores (2011: 2).
Sales from our US wholesale business increased by 45.5% to $9.6m
(2011: $6.6m) reflecting the first full year of trading and an
improved performance under our own management.
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
28 January 2012 we operated a total of 26 stores (2011: 23 stores)
across these territories.
Our licensed stores across the Middle East performed
particularly well during the period and as a result our partners
are seeking further opportunities to expand in the region. As at 28
January 2012 we operated 7 stores across the Middle East (2011: 7
stores).
During the year we opened a further store in Hong Kong and, with
our licence partner in the territory, a concession in Singapore. As
at 28 January 2012 we operated 15 stores across Asia (2011: 13
stores).
In August, we opened our first store in Auckland, New Zealand
through a joint venture with our licence partner in that territory,
Flair Industries Pty Ltd, and we are pleased with its performance.
As at 28 January 2012 we operated 4 stores in Australasia (2011: 3
stores).
Financial Review
Revenue and Gross Margin
Group revenue increased by 14.9% to GBP215.6m (2011: GBP187.7m),
driven by a 14.1% increase in retail sales to GBP174.2m (2011:
GBP152.7m) and an 18.5% increase in wholesale sales to GBP41.4m
(2011: GBP35.0m).
The composite gross margin for the Group was 61.3% (2011:
61.7%). Whilst input margins were broadly maintained, this net
reduction reflects a higher level of promotional activity in our
retail markets in the first half of the year, a change in mix
between retail and wholesale sales, with wholesale representing a
greater proportion of our sales mix than in the comparative period,
and a change in mix between full price and outlet sales.
Operating Expenses Pre-Exceptional Costs
Operating expenses rose by 14.3% to GBP112.0m (2011: GBP97.9m).
Excluding the employee performance related bonus of GBP3.1m (2011:
GBP2.4m), operating expenses rose by 14.0%. Distribution costs
increased in line with our expectations to GBP82.4m (2011:
GBP73.7m) and as a percentage of sales fell to 38.2% (2011: 39.3%),
this was primarily driven by our more established markets, the UK
and the US.
Administration expenses increased by 22.2% to GBP29.6m (2011:
GBP24.3m). Excluding the employee performance related bonus,
administrative expenses rose by 21.4%, reflecting growth in the US
team to support the growth in our retail and wholesale businesses,
growth in other central functions and the continued development of
our distribution and information technology infrastructures to
support our expansion into international markets.
The Group has a net impairment credit of GBP0.4m (2011: nil).
This was the result of the write-back of a previous impairment loss
in relation to the carrying value of retail assets in Eire
(GBP0.8m), offset by impairment losses in respect of the carrying
value of other retail assets (GBP0.4m).
Exceptional costs
The exceptional costs, which include both distribution costs and
administration expenses, incurred during the year of GBP2.8m (2011:
nil) are in respect of rent for stores that will not commence
trading until 2012, set up costs in relation to our expansion into
China and a provision for bad and doubtful debts in respect of our
exposure in Greece.
Profit Before Tax
Profit before tax and exceptional costs increased 11.7% to
GBP27.1m (2011: GBP24.2m) and profit before tax increased by 0.1%
to GBP24.3m (2011: GBP24.2m). This result was after the payment of
an employee performance related bonus of GBP3.1m (2011: GBP2.4m),
Bonus payments in both years were the result of exceeding internal
targets in the financial year.
Finance Income and Expenses
Net interest payable during the year was GBP201,000 (2011:
GBP30,000). This increase reflects higher Group borrowing compared
to the prior year.
The foreign exchange gain during the year of GBP38,000 (2011:
loss of GBP48,000) was due to the retranslation of monetary assets
and liabilities denominated in foreign currencies.
Taxation
The Group tax charge for the year was GBP6.7m (2011: GBP6.9m),
an effective tax rate of 27.6% (2011: 28.7%). This reduction
reflects the fall in the UK corporation tax rate from 1 April 2011.
The Budget on 23 March 2011 announced that the UK corporation tax
rate will fall from 28.0% to 23.0% over a four year period. We
expect to see a future reduction in our effective tax rate in line
with these changes although the rate will be impacted where future
profits arise in overseas jurisdictions with higher tax rates than
the UK.
Cash Flow
Net cash generated from operating activities was GBP11.5m (2011:
GBP18.1m). The decrease on the prior year is principally due to an
increase in working capital.
Total working capital as per the Group balance sheet, which
comprises inventories, trade and other receivables and trade and
other payables increased by GBP12.3m to GBP47.2m (2011: GBP34.9m).
The increase in inventories was in respect of the anticipated
growth of the business and a continued recent trend in respect of
our Spring / Summer collections being receipted into the business
earlier. This, combined with the timing of the Chinese New Year,
which fell before the end of the Group's financial year, resulted
in earlier payment for inventory than the prior year.
Capital expenditure of GBP15.0m (2011: GBP10.0m) 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 GBP3.7m (2011: GBP1.0m) of
expenditure which relates to stores that are due to open in
2012.
Proceeds from the sale of property, plant and equipment of
GBP0.5m (2011: nil) relates to payments received on the disposal of
our Langley Court and Westbourne Grove, London stores.
Shareholder Return
Basic earnings per share increased by 1.7% to 42.2p (2011:
41.5p). Adjusted earnings per share, which exclude exceptional
costs of GBP2.8m, increased by 17.8% to 48.9p (2011: 41.5p).
The proposed final dividend of 16.25p per share will make a
total for the year of 23.4p per share (2011: 20.6p per share), an
increase of 13.6% on the previous year.
Free cash flow per share, which is calculated using the net cash
generated from operating activities, was 26.7p (2011: 41.8p), this
reduction was due to the increase 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 hedged naturally as the
business operates internationally and income is generated in the
local currencies.
At the balance sheet date, the Group had hedged its projected
commitments in respect of the year ending January 2013.
Borrowing Facilities
The Group has a three year committed borrowing facility of
GBP40.0m (2011: GBP20.0m), which is due to expire on 1 March 2015.
The facility is a multi-currency revolving credit facility with The
Royal Bank of Scotland and Barclays. The facility will be used to
the extent necessary to fund capital expenditure to support the
Group's growth strategy.
The facilities contain financial covenants which are believed to
be appropriate in the current economic climate and tested on a
quarterly basis. The Group monitors actual and prospective
compliance with these on a regular basis.
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
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 may occur which All factors affecting these
may affect the global, economic stakeholders are monitored
and financial environment closely on an ongoing basis
in which we operate. These ensuring
events can affect our suppliers, that we are prepared for and can
customers and partners, risking react to changes in the external
an increase in our cost base and environment, allowing us
adversely affecting our revenue to reduce our exposure as early
as possible. The spread of our
business and supply chain also
helps to mitigate these risks
------------------ ---------------------------- --------------------------------- ---------------------------------
Brand and reputational risk The strength of our brand and We carefully consider each new
its reputation are important to opportunity and each wholesale
the business. There is a risk customer and partner with whom
that our brand may be undermined we do business. These are
or damaged by our actions or monitored on an ongoing basis to
those of our partners ensure they remain appropriate
to the brand
------------------ ---------------------------- --------------------------------- ---------------------------------
Fashion and Design As with all fashion brands there The Group maintains a high level
is a risk that our offer will of market awareness and an
not satisfy the needs of our understanding of 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 not reach us on Our supply chain is diversified
time and to specification, there across a number of suppliers in
is a risk of a loss of revenue different regions, reducing
and customer confidence reliance on a small number of
key suppliers. Suppliers are
treated as key business partners
and we work closely with them to
mitigate these risks
------------------ ---------------------------- --------------------------------- ---------------------------------
Cost inflation We may face increases in our Operating costs are monitored
operating costs due to growth in regularly to ensure that any
payroll, property and other cost pressures are quickly
costs, some of which are outside identified
the scope of our control and appropriate action is taken
------------------ ---------------------------- --------------------------------- ---------------------------------
Infrastructure There is a risk of operational The business continuity plan is
problems, including disruption constantly reviewed and updated
to the infrastructure that by the Risk Committee. In
supports addition, business disruption is
our business, which may lead to covered by our insurance
a loss of revenue, data and policies
inventory
---------------------------- --------------------------------- ---------------------------------
Social Responsibility We are committed to operating in Four members of the Executive
a responsible and sustainable Committee have been tasked with
manner as regards our supply overseeing specific areas of
chain, environment and our social responsibility
community. If we fail to operate agenda. The Group has an
in a manner that supports our employee whose sole
philosophy, responsibility is to
this could damage the trust and monitor this agenda and ensure
confidence of our stakeholders our practices fall in line with
it
------------------ ---------------------------- --------------------------------- ---------------------------------
Issue Potential impact Mitigation
---------------------------- ---------------------------- ---------------------------- ----------------------------
Operational Risks - IT security Advances in technology have Commitment of additional
(continued) resulted in more data being specialist resources and
transmitted electronically, the continual upgrading of
posing security equipment
an increased security risk. and software mitigate these
There is also the risks
possibility of
unintentional loss of
controlled
data by authorised users
---------------------------- ---------------------------- ---------------------------- ----------------------------
People The Group's performance is Retention of key talent is
linked to the performance important and we take
of our people and, in active steps to provide
particular, to stability and security
the leadership of key to the key team. We carry
individuals. The loss of a out an annual benchmarking
key individual whether at review to ensure that we
management level provide competitive
or within a specialist remuneration and total
skill set could have a reward packages. We also
detrimental effect on our utilise long-term incentive
operations and, in schemes to retain
some cases, the creative key talent. Employee
vision for the brand engagement through our
culture and environment
strengthen the commitment
of team members and has a
positive impact on our
attrition rate
---------------------------- ---------------------------- ---------------------------- ----------------------------
Regulatory and legal The Group operates within The Group closely monitors
framework many markets globally and changes in the legal and
is subject to regulations regulatory framework within
affecting its the markets
activities in which it operates. We
work closely with
specialists in each market
to ensure compliance
with local laws and
regulations
---------------------------- ---------------------------- ---------------------------- ----------------------------
Financial Risks Currency, interest, credit In the course of its The Group's policies for
and counterparty credit operations, the Group is dealing with these risks
risks exposed to these financial are discussed in detail in
risks which if they the Group's financial
were to arise may have statements.
material financial impacts
of the Group
---------------------------- ---------------------------- ---------------------------- ----------------------------
Group Income Statement
For the 52 weeks ended 28 January 2012
Note 52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
GBP'000 GBP'000
Revenue 2 215,625 187,700
Cost of sales (83,419) (71,923)
Gross profit 132,206 115,777
Distribution costs (82,358) (73,690)
Administrative expenses (29,640) (24,259)
Exceptional costs (2,814) -
Licence income 6,733 6,227
Other operating income 142 77
Operating profit 24,269 24,132
Finance income 4 45 42
Finance expenses 4 (208) (120)
Share of profit of jointly controlled
entity, net of tax 149 174
Profit before tax 3, 5 24,255 24,228
Income tax expense 5 (6,698) (6,948)
-------------- --------------
Profit for the period 17,557 17,280
============== ==============
Earnings per share 7
Basic 42.2p 41.5p
Diluted 40.6p 41.4p
Group Statement of Comprehensive Income
For the 52 weeks ended 28 January 2012
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
GBP'000 GBP'000
Profit for the period 17,557 17,280
--------------- ---------------
Other comprehensive income
Net effective portion of changes in fair value of cash flow hedges (190) 143
Net change in fair value of cash flow hedges transferred to profit or loss 26 (279)
Exchange rate movement (92) 112
--------------- ---------------
Other comprehensive income for the period (256) (24)
Total comprehensive income for the period 17,301 17,256
=============== ===============
Total comprehensive income attributable to:
- Equity shareholders of the parent company 17,301 17,256
- Non-controlling interest - -
--------------- ---------------
Total comprehensive income for the period 17,301 17,256
=============== ===============
Group Statement of Changes in Equity
For the 52 weeks ended 28 January 2012
Share Share Cash Translation Retained Total equity Non-controlling Total
capital premium flow Reserve earnings attributable interest equity
hedging to equity
reserve shareholders
of the
parent
company
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 29 January
2011 2,160 9,137 (148) 236 64,639 76,024 - 76,024
Comprehensive income
for
the period
Profit for the period - - - - 17,557 17,557 - 17,557
Deferred tax
associated
with movement in
hedging
reserve - - 50 - - 50 - 50
Effective portion of
changes
in fair value of cash
flow hedges - - (240) - - (240) - (240)
Net change in fair
value
of cash flow hedges
transferred
to profit or loss - - 26 - - 26 - 26
Exchange rate movement - - - (92) - (92) - (92)
-------- -------- -------- ----------- --------- ------------- --------------- -------
Total comprehensive
income
for the period - - (164) (92) 17,557 17,301 - 17,301
======== ======== ======== =========== ========= ============= =============== =======
Transactions with
owners
recorded directly in
equity
Share options / awards
charge - - - - 446 446 - 446
Movement on current /
deferred tax on share
options / awards - - - - 275 275 - 275
Disposal of own /
treasury
shares - - - - 69 69 - 69
Dividends paid - - - - (8,930) (8,930) - (8,930)
-------- -------- -------- ----------- --------- ------------- --------------- -------
Total transactions
with
owners - - - - (8,140) (8,140) - (8,140)
======== ======== ======== =========== ========= ============= =============== =======
Balance at 28 January
2012 2,160 9,137 (312) 144 74,056 85,185 - 85,185
======== ======== ======== =========== ========= ============= =============== =======
Group Statement of Changes in Equity
For the 52 weeks ended 29 January 2011
Share Share Cash Translation Retained Total equity Non-controlling Total
capital premium flow Reserve earnings attributable interest equity
hedging to equity
reserve shareholders
of the
parent
company
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
======== ======== ======== =========== ========= ============= =============== =======
Company Statement of Changes in Equity
For the 52 weeks ended 28 January 2012
Share capital Share premium Other reserves Retained Total Equity
earnings
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 29 January
2011 2,160 9,137 14,962 15,954 42,213
Profit for the period - - - 14,123 14,123
Transactions with owners
recorded directly in equity
Share options / awards
charge - - - 69 69
Share options / awards
granted to subsidiary
employees - - 377 - 377
Disposal of own / treasury
shares - - - 69 69
Dividends paid - - - (8,930) (8,930)
------------- ------------- -------------- --------- ------------
Total transactions with
owners - - 377 (8,792) (8,415)
============= ============= ============== ========= ============
Balance at 28 January
2012 2,160 9,137 15,339 21,285 47,921
============= ============= ============== ========= ============
For the 52 weeks ended 29 January 2011
Share capital Share premium Other reserves Retained Total Equity
earnings
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 / treasury
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
============= ============= ============== ========= ============
Group and Company Balance Sheet
At 28 January 2012
Note Group Company Group Company
28 January 28 January 29 January 29 January
2012 2012 2011 2011
GBP'000 GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 968 - 997 -
Property, plant and equipment 8 35,680 - 28,368 -
Investments in subsidiary - 17,428 - 17,051
Investment in equity accounted
investee 494 - 345 -
Deferred tax assets 3,418 - 2,470 -
Prepayments 695 - 777 -
----------- ----------- ----------- -----------
41,255 17,428 32,957 17,051
----------- ----------- ----------- -----------
Current assets
Inventories 51,872 - 42,492 -
Trade and other receivables 30,587 30,053 27,384 24,712
Amount due from equity accounted
investee 407 - 286 -
Derivative financial assets 411 - 102 -
Cash and cash equivalents 8,560 444 13,536 464
----------- ----------- ----------- -----------
91,837 30,497 83,800 25,176
----------- ----------- ----------- -----------
Current liabilities
Trade and other payables (35,281) (4) (34,970) (14)
Bank overdraft (6,790) - - -
Income tax payable (3,353) - (3,761) -
Derivative financial liabilities (1,063) - (455) -
----------- ----------- ----------- -----------
(46,487) (4) (39,186) (14)
----------- ----------- ----------- -----------
Non-current liabilities
Deferred tax liabilities (1,420) - (1,547) -
----------- ----------- ----------- -----------
(1,420) - (1,547) -
----------- ----------- ----------- -----------
Net assets 85,185 47,921 76,024 42,213
=========== =========== =========== ===========
Equity
Share capital 2,160 2,160 2,160 2,160
Share premium 9,137 9,137 9,137 9,137
Other reserves (312) 15,339 (148) 14,962
Translation reserve 144 - 236 -
Retained earnings 74,056 21,285 64,639 15,954
----------- ----------- ----------- -----------
Total equity attributable
to equity shareholders of
the parent company 85,185 47,921 76,024 42,213
Non-controlling interest - - - -
----------- ----------- ----------- -----------
Total equity 85,185 47,921 76,024 42,213
=========== =========== =========== ===========
These financial statements were approved by the Board of
Directors on 21 March 2012 and were signed on its behalf by:
L D Page
Director
Group and Company Cash Flow Statement
For the 52 weeks ended 28 January 2012
Group Company Group Company
52 weeks 52 weeks 52 weeks 52 weeks
ended ended ended ended
28 January 28 January 29 January 29 January
2012 2012 2011 2011
GBP'000 GBP'000 GBP'000 GBP'000
Cash generated from operations
Profit for the period 17,557 14,123 17,280 8,060
Adjusted for:
Income tax expense 6,698 - 6,948 -
Depreciation 7,656 - 6,470 -
Net impairment credit (352) - - -
Loss on disposal of property,
plant & equipment 30 - 225 -
Share options / awards charge 446 69 426 69
Net finance losses / (gains) 201 (4) 30 (5)
Net change in derivative
financial assets and liabilities 85 - 138 -
Share of profit in joint
venture (149) - (174) -
Decrease in non-current
prepayments 62 - 61 -
Increase in inventory (9,302) - (9,026) -
Increase in trade and other
receivables (3,720) (5,341) (7,511) (600)
Increase / (decrease) in
trade and other payables 242 (10) 10,140 2
Interest paid (192) - (83) -
Income taxes paid (7,738) - (6,859) -
------------ ------------ ------------ ------------
Net cash generated from
operating activities 11,524 8,837 18,065 7,526
------------ ------------ ------------ ------------
Cash flow from investing
activities
Purchases of property, plant
& equipment (14,993) - (10,036) -
Purchase of non-controlling
entity - - (630) -
Proceeds from sale of property,
plant & equipment 451 - 32 -
Interest received 8 4 38 5
------------ ------------ ------------ ------------
Net cash from investing
activities (14,534) 4 (10,596) 5
------------ ------------ ------------ ------------
Cash flow financing activities
Proceeds from option holders
for exercise of options 69 69 19 19
Dividends paid (8,930) (8,930) (7,575) (7,575)
------------ ------------ ------------ ------------
Net cash from financing
activities (8,861) (8,861) (7,556) (7,556)
------------ ------------ ------------ ------------
Net decrease in cash and
cash equivalents (11,871) (20) (87) (25)
Cash and cash equivalents
at 29 January 2011 / 30
January 2010 13,536 464 13,698 489
Exchange rate movement 105 - (75) -
------------ ------------ ------------ ------------
Net cash and cash equivalents
at 28 January 2012 / 29
January 2011 1,770 444 13,536 464
------------ ------------ ------------ ------------
Cash and cash equivalents
at 28 January 2012 / 29
January 2011 8,560 444 13,536 464
Bank overdraft at 28 January
2012 / 29 January 2011 (6,790) - - -
------------ ------------ ------------ ------------
Net cash and cash equivalents
at 28 January 2012 / 29
January 2011 1,770 444 13,536 464
============ ============ ============ ============
Notes to the Financial Statements
For the 52 weeks ended 28 January 2012
1. Basis of preparation
EU law (IAS Regulation EC 1606/2002) requires that the Group
financial statements, for the 52 weeks ended 28 January 2012, 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 28
January 2012.
The financial information set out above does not constitute the
Group's statutory accounts for the 52 weeks ended 28 January 2012
or 52 weeks ended 29 January 2011. The annual financial information
presented in this annual results announcement for the 52 weeks
ended 28 January 2012 is based on, and is consistent with, that in
the Group's audited financial statements for the 52 weeks ended 28
January 2012, and those financial statements will be delivered
during the second week of May 2012. 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 29 January 2011 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.
Non-GAAP measures
The directors believe that the profit before exceptional items
and adjusted earnings per share measures provide additional useful
information for shareholders on the underlying performance of the
business. These measures are consistent with how underlying
business performance is measured internally.
The exceptional profit before tax measure is not a recognised
profit measure under IFRS and may not be directly comparable with
adjusted profit measures used by other companies.
Exceptional items in the current year include:
-- Significant pre opening costs (including rental and others) for new store openings
-- One-off bad debt provision which is considered unusual and
has materially impacted the results
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 29 January 2011.
There were no revisions to adopted IFRS that became applicable
in the period which had a significant impact on the Group's
financial statements.
Revisions to IFRS not applicable in 2011
Standards and interpretations issued by the IASB are only
applicable if endorsed by the EU. The following may be applicable
in the future:
-- IFRS 9, Financial Instruments, will simplify the
classification of financial assets for measurement purposes, but is
not anticipated to have a significant impact on the financial
statements. If endorsed, this will be effective for 2015.
-- Amendments to IAS 19, Employee Benefits, will require the
financing on post-retirement benefits to be calculated on the net
surplus or deficit using an 'AA' corporate bond rate. This is not
going to impact the Group as there is currently no defined benefit
obligation. This will be effective for 2013.
-- IFRS 11, Joint Arrangements, may result in certain entities
currently classified as joint ventures being classified as joint
operations. This would result in the Group's share of the
individual assets and liabilities of these entities being included
in the financial statements rather than the equity method
accounting adopted under the requirements of IAS 31, Interests in
Joint Ventures. This will not affect the Group's net assets or
profit for the period. This will be effective for 2013.
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 28 January 2012 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 174,185 41,440 - 215,625
Cost of sales (60,667) (22,752) - (83,419)
--------- ---------- --------------- ---------
Gross profit 113,518 18,688 - 132,206
Operating costs (81,207) - - (81,207)
--------- ---------- --------------- ---------
Operating contribution 32,311 18,688 - 50,999
Licence income - - 6,733 6,733
--------- ---------- --------------- ---------
Segment result 32,311 18,688 6,733 57,732
Reconciliation of segment
result to profit before tax
Segment result 32,311 18,688 6,733 57,732
Other operating costs (30,791)
Exceptional costs (2,814)
Other operating income 142
---------
Operating profit 24,269
Net finance expense (163)
Share of profit of jointly controlled entity, net of tax 149
---------
Profit before tax 24,255
=========
Capital expenditure 12,178 159 - 12,337
Unallocated capital expenditure 2,752
---------
Total capital expenditure 15,089
=========
Depreciation 5,460 157 - 5,617
Unallocated depreciation 2,039
---------
Total depreciation 7,656
=========
Segment assets 100,512 23,691 - 124,203
Other assets 8,889
---------
Total assets 133,092
=========
Segment liabilities (33,986) (8,085) - (42,071)
Other liabilities (5,836)
---------
Total liabilities (47,907)
=========
Net assets 85,185
=========
Wholesale sales are shown after the elimination of inter-segment
sales of GBP20,348,000 (2011: GBP14,596,000).
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
Impairment losses - - - -
Other operating costs 27,460 15,668 6,227 49,355
Other operating income (25,300)
---------
Operating profit 77
Net finance expense 24,132
Share of profit of jointly controlled entity, net of tax (78)
---------
Profit before tax 174
=========
24,228
Capital expenditure
Unallocated capital expenditure 6,336 360 - 6,696
---------
Total capital expenditure 2,812
=========
9,508
Depreciation
Unallocated depreciation 4,980 132 - 5,112
---------
Total depreciation 1,358
=========
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
=========
b) Geographical information
UK & Europe US Other Total
GBP'000 GBP'000 GBP'000 GBP'000
52 weeks ended 28 January 2012
Revenue 184,094 27,787 3,744 215,625
Non-current assets* 25,474 9,210 3,153 37,837
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
*Non-current assets exclude deferred tax assets.
c) Revenue by collection
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
------------ --------------- ---------------
GBP'000 GBP'000
Menswear 108,252 98,229
Womenswear 107,373 89,471
--------------- ---------------
215,625 187,700
=============== ===============
3. Profit before tax
Profit before tax is stated after charging: 52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
GBP'000 GBP'000
Depreciation 7,656 6,470
Exceptional costs 2,814 -
Net impairment reversal of property,
plant and equipment* (352) -
Operating lease rentals for leasehold
properties 18,915 15,865
Loss on sale of property, plant & equipment 30 225
The exceptional costs incurred during the year of GBP2,814,000
(2011: GBPnil) are in respect of rent for stores that will not
commence trading until 2012, set up costs in relation to our
expansion into China and provision for bad and doubtful debts in
respect of our exposure in Greece.
* See note 8. Property, plant and equipment for further
information
4. Finance income and expenses
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
GBP'000 GBP'000
Finance income
- Interest receivable 7 35
- Foreign exchange gains 38 7
-------------- --------------
45 42
============== ==============
Finance expenses
- Interest payable (208) (65)
- Foreign exchange losses - (55)
-------------- --------------
(208) (120)
============== ==============
5. Income tax expense
a) The tax charge comprises
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
GBP'000 GBP'000
Current tax 7,155 7,461
Deferred tax (692) (633)
Prior year under provision 235 120
-------------- --------------
6,698 6,948
============== ==============
b) Deferred tax movement by type
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
---------------------------- -------------- --------------
GBP'000 GBP'000
Property, plant & equipment (380) (412)
Share based payments (151) (159)
Overseas (gains) (192) (41)
Inventory (35) (12)
Other 66 (9)
-------------- --------------
(692) (633)
============== ==============
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
28 January 29 January
2012 2011
----------------------------------------- -------------- --------------
GBP'000 GBP'000
Profit before tax 24,255 24,228
Profit multiplied by the standard rate
in the UK - 26.32%, (2011: standard
rate in the UK of 28%) 6,384 6,784
Expenses not deductible for tax purposes 55 191
Overseas losses not recognised 408 133
Current and deferred tax movement on
share awards and options (61) (46)
Prior year under provision 235 120
Effect of rate change on corporation
tax (131) (66)
Difference due to overseas tax rates (192) (168)
Total income tax expense 6,698 6,948
============== ==============
d) Deferred and current tax recognised directly in equity
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
-------------------------------------- -------------- --------------
GBP'000 GBP'000
Deferred tax credit on share awards
and options (275) (298)
Deferred tax associated with movement
in hedging reserve (50) (55)
-------------- --------------
(325) (353)
============== ==============
There was a reduction in the UK corporation tax rate from 28% to
26% with effect from 1 April 2011. There are further proposed
reductions of 1% per annum for the next 3 years such 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 rate substantively enacted at the
balance sheet date, the assets and liabilities have been recognised
at a rate of 25%.
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 a
further GBP114,000.
6. Dividends per share
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
------------------------------------------ -------------- --------------
GBP'000 GBP'000
Final dividend paid for prior year
of 14.3p per ordinary share (2011:
0.5p) 5,953 208
Second interim dividend paid for prior
year of GBPNil per ordinary share (2011:
11.4p) - 4,745
Interim dividend paid of 7.15p per
ordinary share (2011: 6.3p) 2,977 2,622
-------------- --------------
8,930 7,575
============== ==============
A final dividend in respect of 2012 of 16.25p per share,
amounting to a dividend payable of GBP6,766,650, is to be proposed
at the Annual General Meeting on 12 June 2012.
7. Earnings per share
52 weeks ended 52 weeks ended
28 January 29 January
2012 2011
---------------------------------------- -------------- --------------
Number of shares: No. No.
Weighted number of ordinary shares
outstanding 41,637,410 41,622,472
Effect of dilutive options 1,571,313 163,956
Weighted number of ordinary shares
outstanding - diluted 43,208,723 41,786,428
============== ==============
Earnings: GBP'000 GBP'000
Profit for the period basic and diluted 17,557 17,280
Profit for the period adjusted * 20,371 17,280
Basic earnings per share 42.2p 41.5p
Adjusted earnings per share * 48.9p 41.5p
Diluted earnings per share 40.6p 41.4p
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.
* Adjusted profit for the period and adjusted earnings per share
are shown before the exceptional costs of GBP2,814,000 (2011:
GBPnil).
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 29 January 2011 37,657 34,358 126 1,031 73,172
Additions 7,396 4,992 - 2,701 15,089
Disposals (841) (1,989) - - (2,830)
Exchange rate movement 67 (3) - (7) 57
------------- ---------- --------- ------------- -------
At 28 January 2012 44,279 37,358 126 3,725 85,488
Depreciation
At 29 January 2011 18,615 26,078 111 - 44,804
Charge for the year 3,628 4,023 5 - 7,656
Impairment (305) (47) - - (352)
Disposals (706) (1,671) - - (2,377)
Exchange rate movement 50 27 - - 77
------------- ---------- --------- ------------- -------
At 28 January 2012 21,282 28,410 116 - 49,808
------------- ---------- --------- ------------- -------
Net book value
------------- ---------- --------- ------------- -------
At 29 January 2011 19,042 8,280 15 1,031 28,368
============= ========== ========= ============= =======
At 28 January 2012 22,997 8,948 10 3,725 35,680
============= ========== ========= ============= =======
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 GBP1,031,000 (2011: GBP506,000) whilst
additions into this category were GBP3,732,000 (2011:
GBP1,031,000).
The net impairment credit of GBP352,000 relates to the reversal
of an impairment charge of GBP733,000 incurred during the 52 weeks
ended 30 January 2010 in relation to the carrying value of retail
assets in Eire and offset by an impairment charge relating to
retail assets in the year of GBP381,000.
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.
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
40 per cent of the voting shares of the Company.
At the 28 January 2012, the main trading company owed the parent
company GBP30,053,000 (2011: GBP24,710,000). The main trading
company was owed GBP38,987,000 (2011: GBP23,313,000) 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 28 January 2012, the joint venture owed
GBP407,000 to the main trading company (2011: GBP286,000). In the
period, the value of sales made to the joint venture by the Group
was GBP726,000 (2011: GBP565,000).
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
21 March 2012 21 March 2012
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
FR DBGDXUDDBGDG
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