TIDMTED
RNS Number : 2319T
Ted Baker PLC
02 October 2014
Ted Baker Plc
("Ted Baker", the "Group")
Interim Results Announcement for the 28 weeks ended 9 August
2014
'Continued strong performance across all channels'
28 weeks 28 weeks
ended ended
Highlights 9 August 10 August
2014 2013 Change
Group Revenue GBP182.2m GBP155.2m 17.4%
Profit Before Tax and Exceptional Items GBP14.4m GBP11.6m 24.2%
Profit Before Tax GBP15.6m GBP11.6m 33.8%
Adjusted Basic EPS* 24.2p 20.2p 19.8%
Basic EPS 26.1p 20.2p 29.2%
Interim Dividend 11.3p 9.5p 18.9%
*Adjusted EPS is shown before exceptional items (net of tax)
-- Retail sales including e-commerce up 14.8% to GBP140.0m on a
9.9% increase in average square footage
-- UK and European retail sales up 15.1% to GBP105.4m
-- US and Canada retail sales up 13.8% to GBP28.9m
-- Asia retail sales up 16.0% to GBP5.8m
-- E-commerce sales up 48.9% to GBP14.0m
-- Planned expansion continued with:
-- Two new stores in the UK, and a new store and outlet in France
-- A new store and outlet in the US
-- Further concessions with leading department stores across the US, Europe and Asia
-- Licensee store openings in Dubai, Egypt, Saudi Arabia and Australia
-- Wholesale sales up 26.8% to GBP42.1m
-- Licence income up 37.1% to GBP5.5m
Commenting, Ray Kelvin CBE, Founder and Chief Executive,
said:
"Ted Baker has continued to deliver a strong performance across
its global markets and distribution channels during the first half
of the year. We have successfully opened new space in our
international markets, with further planned for the second half of
the year in line with our strategy to focus on expansion
opportunities that are appropriate for our brand.
The strength of our brand is testament to the passion and
dedication of our team and has enabled us to attract customers both
in the UK and overseas who recognise our unwavering focus on
quality, design and attention to detail. Whilst our results for the
full year will be dependent on the more weighted second half, we
continue to look forward with confidence as we further develop Ted
Baker as a leading global lifestyle brand."
Enquiries:
Ted Baker Plc Tel: 020 7796 4133 on 2 October 2014 only
Ray Kelvin CBE, Founder and Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Chief Operating Officer and Group Finance Director
Hudson Sandler Tel: 020 7796 4133
Alex Brennan
Michael Sandler
Julia Cooke
www.tedbaker.com
www.tedbakerPlc.com
Media images available for download at:
http://www.tedbakerPlc.com/ted/en/mediacentre/imagelibrary
Notes to Editors
Ted Baker Plc - "No Ordinary Designer Label"
Ted Baker is a leading global lifestyle brand distributing
across five continents through its three main distribution
channels: retail (including e-commerce), wholesale and
licensing.
Ted Baker has 381 stores and concessions worldwide, comprising
of 183 in the UK, 77 in Europe, 67 in the US and Canada, 47 in the
Middle East and Asia and 7 in Australasia.
Ted Baker offers 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; Watches;
Jewellery; and Audio, all of which are underpinned by an unwavering
emphasis on design, product quality and attention to detail.
Development of the brand
Our strategy is to develop as a leading global lifestyle brand,
based on three main elements:
-- considered expansion of our 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
(including e-commerce); 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 existing and new
international 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.
Chairman's Statement
I am pleased to announce a strong performance in the first half
of the year, during which the Ted Baker brand has continued to
develop across territories and distribution channels. This has
resulted in a 17.4% increase in Group revenue to GBP182.2m and a
33.8% improvement in profit before tax to GBP15.6m. Profit before
tax and exceptional items increased 24.2% to GBP14.4m.
The retail division performed well, with sales up 14.8% (18.0%
in constant currency) on a 9.9% increase in average retail square
footage. Performance was strong across all established territories
and we continue to invest in our newer markets for the long term
development of the brand. During the first half of the year, we
have continued our expansion with openings across all territories.
We successfully migrated our US e-commerce site onto our new
platform in July, following the launch of the UK site last year,
and we are pleased with performance at this early stage.
Wholesale sales increased 26.8% to GBP42.1m (29.1% in constant
currency), which reflects a very good performance from our UK
wholesale business, which includes the supply of goods to our
licensed stores and our export business, and a strong performance
from our US wholesale business.
Licence income increased by 37.1% to GBP5.5m as both our product
and territorial licences continued to perform well. During the
period our licence partners opened stores in Dubai, Egypt and Saudi
Arabia and our joint venture partner in Australasia opened two new
stores.
We continue to invest in our infrastructure and people and are
working closely with Microsoft on the implementation of Microsoft
Dynamics AX business systems globally across the Group to support
our long term growth strategy. We are pleased with our progress to
date and remain on course to commence the roll out early next
year.We are confident of the opportunities that these systems will
create to improve the efficiency of our business.
Financial Results
Group revenue increased by 17.4% to GBP182.2m (2013: GBP155.2m)
for the 28 weeks ended 9 August 2014 (the "period"). The composite
gross margin fell to 58.5% (2013: 59.7%), partly a result of a
change in sales mix between wholesale and retail sales and partly
due to a slight decrease in the retail and wholesale margins.
Operating expenses increased in line with expectations by 15.6%
in the period to GBP97.2m (2013: GBP84.1m), which is reflective of
our investment in people and infrastructure to support our long
term growth. Distribution costs, which largely comprise the cost of
retail stores, outlets and concessions increased by 13.2% to
GBP70.2m (2013: GBP62.0m) and as a percentage of retail sales
decreased to 50.2% (2013: 50.9%).
Administrative expenses including the performance related bonus
provision increased by 21.5% to GBP26.6m (2013: GBP21.9m) due to
the growth of our central operations and the continued investment
in our information technology infrastructure to support our
international expansion. Excluding the employee performance related
bonus provision of GBP1.4m (2013: GBP0.9m), administrative expenses
increased by 20.0% to GBP25.2m (2013: 21.0m).
Exceptional costs in the period of GBP2.6m (2013: GBPnil) relate
to a legal dispute with a previous insurer, details of which have
been previously disclosed. We are required by accounting standards
to recognise a provision for our legal and professional costs
incurred in respect of the case so far, the judgment of which is
due in the second half of the current financial year.
Exceptional income in the period of GBP3.7m (2013: GBPnil)
relates to the early termination of a licence partner agreement. As
previously communicated, in February 2014, we came to a mutual
agreement with one of our licence partners to terminate our licence
agreement earlier than anticipated due to a variation in that
licence partner's long-term strategy. We received a payment of
GBP3.7m for compensation of royalties that would be due to us had
the agreement continued to its original completion date.
Profit before tax and exceptional items increased by 24.2% to
GBP14.4m (2013: GBP11.6m) and profit before tax increased by 33.8%
to GBP15.6m (2013: GBP11.6m). Adjusted basic earnings per share
excluding exceptional items increased by 19.8% to 24.2p (2013:
20.2p) whilst basic earnings per share increased by 29.2% to 26.1p
(2013: 20.2p).
Net interest payable during the period was GBP0.6m (2013:
GBP0.5m). This increase reflects higher Group borrowing compared to
the prior period due to increased capital expenditure and working
capital. The net foreign exchange loss during the period of GBP0.1m
(2013: loss of GBP0.6m) was due to the retranslation of monetary
assets and liabilities denominated in foreign currencies.
The effective tax rate of 26.6% (2013 full year effective rate:
25.9%) is higher than the UK corporation tax rate. Whilst
benefiting from the reduction in the UK corporation tax rate, this
has been more than offset by higher overseas tax rates and the
non-recognition of losses in some overseas territories during their
development phase.
The net decrease in cash and cash equivalents of GBP23.8m (2013:
GBP19.3m) primarily reflected an increase in working capital and
further capital expenditure to support our long term
development.
Total working capital, which comprises inventories, trade and
other receivables and trade and other payables, increased by
GBP12.4m to GBP87.7m (2013: GBP75.3m). This was mainly driven by an
increase in inventories of GBP16.1m to GBP91.9m (2013: GBP75.8m)
reflecting the growth of our business, stock on hand for our
wholesale customers and licence partners and some earlier phasing
of stock deliveries between the first and second half of the
year.
Capital expenditure of GBP13.8m (2013: GBP8.1m) reflected the
opening and refurbishment of stores and concessions in both new and
existing markets. It also reflected our continued investment in
Microsoft Dynamics AX systems across the business to support our
growth, and we are on course to commence roll out early next year.
We expect full year capital expenditure to be in line with previous
guidance of GBP25m, subject to the timing of planned openings in
the early stages of next year.
Borrowing Facilities
During the period, the Group was in discussions with the Royal
Bank of Scotland and Barclays to arrange the renewal of its
multi-currency revolving credit facility, due to expire on 1 March
2015. A new agreement was signed on 29 September 2014, increasing
the Group's committed borrowing facility from GBP50m to GBP65m for
the 3.5 years to March 2018. The new borrowing is on similar terms
and contains similar covenants to the previous facility.
Dividends
The Board has declared an interim dividend of 11.3p (2013:
9.5p), representing an increase of 18.9%, which will be payable on
21 November 2014 to shareholders on the register at the close of
business on 17 October 2014.
People
I would like to take this opportunity to thank all of my
colleagues across the world for their continued hard work. This
strong performance is testament to our talented teams, whose
commitment and passion is key to our success as we continue to grow
the business and develop Ted Baker as a global lifestyle brand.
Global Group Performance
Retail
We operate stores and concessions across the UK, Europe, the US,
Canada and Asia and an e-commerce business based in the UK,
primarily serving the UK and Europe, with a separate US site
dedicated to the Americas. We also have e-commerce business with
some of our concession partners.
Retail sales, including e-commerce, were up 14.8% to GBP140.0m
(2013: GBP122.0m) (18.0% in constant currency) with average retail
square footage increasing by 9.9% to 326,403 sq.ft (2013: 297,011
sq.ft). Retail sales per square foot increased 1.8% to GBP386
(2013: GBP379) (5.3% in constant currency), benefiting from a good
performance in new space opened in the second half of last
year.
Our e-commerce business delivered another period of strong
growth with a 48.9% increase in sales to GBP14.0m (2013: GBP9.4m),
driven by growth across all areas of our e-commerce business. Our
UK site has benefited from the launch of our new platform last
year, providing a more relevant customer experience through
improved design, performance and personalised content. This was
followed by the successful migration of our US site in July, and we
are pleased with performance at this early stage.
The retail gross margin reduced slightly to 64.0% (2013: 64.7%),
largely reflecting an increase in our outlet sales as a proportion
of total sales.
Retail operating costs increased in line with our expectations
to GBP70.1m (2013: GBP61.5m), and as a percentage of retail sales
reduced to 50.0% (2013: 50.4%).
Wholesale
We operate a wholesale business in the UK, which serves
countries across the world, particularly in Europe and includes the
supply of goods to our licensed stores. We also operate a wholesale
business in the US.
Group wholesale sales were 26.8% above the same period last year
at GBP42.1m (2013: GBP33.2m) (29.1% in constant currency) with a
gross margin of 40.5% (2013: 41.5%), reflecting a very good
performance from our UK business and a strong performance from our
US business. Our US business benefited from additional new business
in the second half of last year and accordingly, we do not expect
this level of growth in the second half of the year.
The fall in wholesale margin was largely due to a proportionate
increase in sales to our licensed stores, which carry a lower
margin.
Licence Income
We operate both territorial and product licences. Our
territorial licences cover the Middle East, Asia and Australasia,
where our partners operate licensed retail stores and in some
territories, wholesale operations. Our product licences cover
lingerie and sleepwear, fragrance and skinwear, watches, footwear,
eyewear, men's suits, neckwear, jewellery, childrenswear, homeware,
luggage and audio.
Licence income was up 37.1% to GBP5.5m (2013: GBP4.0m) with both
territorial and product licences performing well. Notably there
were good performances from our product licensees in footwear,
eyewear, neckwear, skinwear and lingerie. In June we launched with
a licence partner, Ted Baker Audio, which has been very positively
received. Our licensed stores in the Middle East, operated by our
territorial partner, RSH Limited, also performed particularly well
during the period with further openings planned as a result.
Collections
Ted Baker Womenswear performed very well with sales up 19.2% to
GBP106.9m (2013: GBP89.7m), benefiting from a greater share of
space added during the period. Ted Baker Menswear also delivered a
very good performance with sales increasing 15.0% to GBP75.3m
(2013: GBP65.5m). We are very pleased with the positive reactions
to the collections both in the UK and internationally.
Womenswear represented 58.7% of total sales (2013: 57.8%) during
the period and Menswear represented 41.3% of total sales (2013:
42.2%), which is broadly representative of the division in retail
selling space.
Geographic Performance
United Kingdom & Europe
Sales in the period in the UK and Europe increased 16.7% to
GBP139.7m (2013: GBP119.7m) (17.4% in constant currency).
Sales in the retail division were up 15.1% to GBP105.4m (2013:
GBP91.6m) (15.6% in constant currency), reflecting a good
performance in our established UK market and a very good
performance in Europe where we continue to expand. During the
period we opened two new stores in the UK, in Glasgow and Heathrow
Terminal 2, a new store in Marseille, France, an outlet in Paris,
France and further concessions with leading department stores in
France, Spain and the Netherlands.
Average square footage rose by 7.6% over the period to 225,662
sq.ft (2013: 209,653 sq.ft), driven largely by growth in Europe. As
at 9 August 2014, total retail square footage was 229,092 sq.ft
(2013: 211,594 sq.ft), representing an increase of 8.3%. Retail
sales per square foot increased by 4.1% from GBP394 to GBP410 (5.1%
constant currency) reflecting the strength of our collections both
in the UK and Europe.
As at 9 August 2014, we operated 39 stores (2013: 34), including
2 licence stores (2013: nil), 209 concessions (2013: 193) and 12
outlet stores (2013: 11).
Sales from our UK wholesale business increased by 21.6% to
GBP34.3m (2013: GBP28.2m) reflecting a good performance from our UK
wholesale business and continued growth in our wholesale export
business.
US & Canada
We are very pleased with our progress across retail and
wholesale in the US and Canada with sales increasing 19.3% to
GBP36.4m (2013: GBP30.5m) (31.3% in constant currency). Both our
retail and wholesale channels performed very well and we are
confident that the Ted Baker brand is continuing to gain traction
and recognition in this territory.
Sales from our retail division increased by 13.8% to GBP28.9m
(2013: GBP25.4m) (25.2% in constant currency). During the period we
continued our expansion in the US with a new store in Philadelphia,
an outlet in Desert Hills, California and two further concessions
through a leading department store. We also successfully migrated
our US e-commerce site onto our new platform in July this year, and
we are very pleased with the improved design and performance.
Average square footage rose 13.5% over the period to 79,138
sq.ft (2012: 69,703 sq.ft). At 9 August 2014, total retail square
footage was up 10.2% on last year at 81,433 sq.ft (2013: 73,877
sq.ft). Retail sales per square foot in constant currency increased
7.8% reflecting positive reactions to our collections, however,
adjusted for currency movements fell 2.2% to GBP350 (2013:
GBP358).
As at 9 August 2014, we operated 44 concessions across the US
and Canada (2013: 37), 17 stores (2013: 16) and 6 outlet stores
(2013: 5).
Sales from our US wholesale business increased by 47.1% to
GBP7.5m (2013: GBP5.1m) (62.1% in constant currency), reflecting
the growth of this business and increased brand recognition in this
territory. This growth reflected momentum from new business gained
in the second half of last year, which will annualise in the second
half of this year. As a result, we do not expect this level of
growth to be achieved in the second half of the year.
Middle East, Asia & Australasia
We continue to develop the Ted Baker brand across the Middle
East, Asia and Australasia through our retail and licensing
channels. We work closely with our territorial partners to ensure
the visual merchandising of the licensed stores and training of the
teams is reflective of the Ted Baker culture.
Retail sales in Asia increased 16.0% to GBP5.8m (2013: GBP5.0m)
(26.0% in constant currency), with average square footage up 22.4%
to 21,603 sq.ft (2013: 17,655 sq.ft). We are still in the early
stages of development in this territory and continue to invest in
infrastructure and people to build brand awareness and support our
future growth.
During the period we closed two concessions in Japan and South
Korea and opened one new concession in Japan. As at 9 August 2014,
we operated 22 stores (2013: 22), 15 of which are through a licence
partner (2013: 15), 1 outlet (2013:1) and 7 concessions (2013: 5)
across Asia.
Our licensed stores across the Middle East continued to perform
very well. During the period we opened a new store in Dubai and in
Egypt and our first two stores in Saudi Arabia with our licence
partner in this territory, RSH Limited. As a result, as at 9 August
2014, we operated a total of 17 stores across the Middle East
(2013: 12).
During the period, we opened two new stores in Brisbane and
Melbourne, Australia through a joint venture with our Australasian
licence partner, Flair Industries Pty Ltd. As at 9 August 2014, we
operated 7 stores in Australasia (2013: 5 stores).
Current Trading and Outlook
Retail
The second half has started well for the Group, with a good
performance from our Autumn/Winter collections despite unusually
warm weather in September. We have continued our international
expansion in the US with a new store in Las Vegas and two
concessions with a leading department store. We have also opened
further concessions across Europe in France and Spain.
We will continue to develop our presence in the US and Canada
during the second half of the year with plans to open two new
stores in Miami and Toronto and further concessions in the US.
In the UK and Europe, we plan to open a store in Heathrow
Terminal 4 and further concessions in Spain, Portugal and the
Netherlands.
Wholesale
The strong performance in our wholesale business has been
positively impacted by additional new business in the US during the
second half of last year. As a result, we anticipate full year
growth of around 18% for our wholesale business.
Licence Income
Our product and territorial licences continue to perform well
with further store openings planned in Turkey, Abu Dhabi and Saudi
Arabia. In September, we opened our first store in Panama with a
new licence partner and performance at this early stage has been
encouraging.
Outlook
The Group continues to perform well and we are pleased with the
reactions to our Autumn/Winter collections.
We remain focused on the long term development of the Ted Baker
brand and continue to invest in infrastructure and people to
support the future growth of our business in new and existing
markets.
Whilst we have made a strong start to the financial year, our
results for the full year will, as always, be dependent on the more
weighted second half trading period.
We intend to make our next interim management statement,
covering the period since the start of the second half of the
financial year, in mid-November.
David Bernstein CBE
Non-Executive Chairman
02 October 2014
Condensed Group Income Statement
For the 28 weeks ended 9 August 2014
Unaudited 28 weeks Unaudited 28 weeks Audited
ended ended 52 weeks ended
9 August 10 August 25 January
Note 2014 2013 2014
GBP'000 GBP'000 GBP'000
Revenue 2 182,172 155,208 321,921
Cost of sales 2 (75,540) (62,541) (123,451)
------------------- ------------------- ----------------
Gross profit 2 106,632 92,667 198,470
Distribution costs (70,234) (62,046) (123,211)
Administrative expenses (26,610) (21,905) (43,381)
Exceptional income 3 3,669 - -
Exceptional costs 3 (2,556) - (1,046)
Licence income 5,496 4,010 8,888
Other operating (expense)/income (362) (115) (132)
Operating profit 2 16,035 12,611 39,588
Finance income 4 69 27 316
Finance expenses 4 (749) (1,124) (1,312)
Share of profit of jointly controlled
entity, net of tax 197 108 331
Profit before tax 2 15,552 11,622 38,923
Profit before tax and exceptional items 14,439 11,622 39,969
Exceptional income 3 3,669 - -
Exceptional costs 3 (2,556) - (1,046)
---------------------------------------- ------- ------------------- ------------------- ----------------
Income tax expense 7 (4,137) (3,008) (10,071)
------------------- ------------------- ----------------
Profit for the period 11,415 8,614 28,852
------------------- ------------------- ----------------
Earnings per share 5
Basic 26.1p 20.2p 67.2p
Diluted 25.8p 19.6p 66.3p
Condensed Group Statement of Comprehensive Income
For the 28 weeks ended 9 August 2014
Unaudited 28 weeks Unaudited 28 weeks Audited
ended ended 52 weeks ended
9 August 10 August 25 January
2014 2013 2014
GBP'000 GBP'000 GBP'000
Profit for the period 11,415 8,614 28,852
------------------- ------------------- ----------------
Other comprehensive (loss) / income
Items that may be reclassified subsequently to the income
statement:
Net effective portion of changes in fair value of cash
flow hedges (1,228) (101) (2,486)
Net change in fair value of cash flow hedges transferred
to profit or loss 1,797 (169) 545
Exchange rate movement (708) (763) (3,276)
------------------- ------------------- ----------------
Other comprehensive loss for the period, net of tax (139) (1,033) (5,217)
Total comprehensive income for the period 11,276 7,581 23,635
------------------- ------------------- ----------------
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 9 August 2014
Total equity
attributable
Cash flow to equity
Share premium hedging Translation Retained shareholders
Share capital account reserve reserve earnings of the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 25
January 2014 2,194 9,139 (1,850) (2,980) 105,561 112,064
Comprehensive
income for the
period
Profit for the
period - - - - 11,415 11,415
Deferred tax
associated
with movement
in hedging
reserve - - (142) - - (142)
Effective
portion of
changes in
fair value of
cash flow
hedges - - (1,086) - - (1,086)
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - 1,797 - - 1,797
Exchange rate
movement - - - (708) - (708)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income for the
period - - 569 (708) 11,415 11,276
--------------- --------------- --------------- --------------- --------------- ---------------
Transactions
with owners
recorded
directly in
equity
Increase in
issued share
capital 1 144 - - - 145
Share options /
awards charge - - - - 580 580
Movement on
current /
deferred tax
on share
options /
awards - - - - (233) (233)
Dividends paid - - - - (10,566) (10,566)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
transactions
with owners 1 144 - - (10,219) (10,074)
--------------- --------------- --------------- --------------- --------------- ---------------
Balance at 9
August 2014 2,195 9,283 (1,281) (3,688) 106,757 113,266
--------------- --------------- --------------- --------------- --------------- ---------------
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 10 August 2013
Total equity
attributable
Cash flow to equity
Share premium hedging Translation Retained shareholders
Share capital account reserve reserve earnings of the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 26
January 2013 2,160 9,137 91 296 87,209 98,893
Comprehensive
income for the
period
Profit for the
period - - - - 8,614 8,614
Deferred tax
associated
with movement
in hedging
reserve - - 74 - - 74
Current tax
associated
with movements
in foreign
exchange - - - 318 - 318
Effective
portion of
changes in
fair value of
cash flow
hedges - - (129) - - (129)
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - (215) - - (215)
Exchange rate
movement - - - (1,081) - (1,081)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income for the
period - - (270) (763) 8,614 7,581
--------------- --------------- --------------- --------------- --------------- ---------------
Transactions
with owners
recorded
directly in
equity
Share options /
awards charge - - - - 140 140
Movement on
current /
deferred tax on
share options /
awards - - - - - -
Disposal of own
/ treasury
shares - - - - 71 71
Dividends paid - - - - (7,965) (7,965)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
transactions
with owners - - - - (7,754) (7,754)
--------------- --------------- --------------- --------------- --------------- ---------------
Balance at 10
August 2013 2,160 9,137 (179) (467) 88,069 98,720
--------------- --------------- --------------- --------------- --------------- ---------------
Condensed Group Statement of Changes in Equity - Audited
For the 52 weeks ended 25 January 2014
Total equity
attributable
Cash flow to equity
Share premium hedging Translation Retained shareholders
Share capital account reserve reserve earnings of the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 26
January 2013 2,160 9,137 91 296 87,209 98,893
Comprehensive
income for the
period
Profit for the
period - - - - 28,852 28,852
Deferred tax
associated
with movement
in hedging
reserve - - 490 - - 490
Current tax on
foreign
currency
translation - - - 1,115 - 1,115
Effective
portion of
changes in
fair value of
cash flow
hedges - - (2,976) - - (2,976)
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - 545 - - 545
Exchange rate
movement - - - (4,391) - (4,391)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income for the
period - - (1,941) (3,276) 28,852 23,365
--------------- --------------- --------------- --------------- --------------- ---------------
Transactions
with owners
recorded
directly in
equity
Increase in
issued share
capital 34 2 - - (34) 2
Share options /
awards charge - - - - 606 606
Movement on
current /
deferred tax
on share
options /
awards - - - - 967 967
Disposal of own
/ treasury
shares - - - - 71 71
Dividends paid - - - - (12,110) (12,110)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
transactions
with owners 34 2 - - (10,500) (10,464)
--------------- --------------- --------------- --------------- --------------- ---------------
Balance at 25
January 2014 2,194 9,139 (1,850) (2,980) 105,561 112,064
--------------- --------------- --------------- --------------- --------------- ---------------
Condensed Group Balance Sheet
At 9 August 2014
Unaudited Unaudited Audited
Note 9 August 2014 10 August 2013 25 January 2014
GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 10,563 3,322 6,080
Property, plant and equipment 46,978 45,737 45,083
Investments in equity accounted investee 1,221 801 1,024
Deferred tax assets 4,055 6,094 4,450
Prepayments 536 620 564
--------------- ---------------- -----------------
63,353 56,574 57,201
--------------- ---------------- -----------------
Current assets
Inventories 91,914 75,821 80,432
Trade and other receivables 36,929 33,372 34,793
Amount due from equity accounted investee 505 477 164
Derivative financial assets 230 920 499
Cash and cash equivalents 9 10,887 10,069 28,521
--------------- ---------------- -----------------
140,465 120,659 144,409
--------------- ---------------- -----------------
Current liabilities
Trade and other payables (41,095) (33,867) (45,289)
Bank overdraft 9 (44,213) (40,024) (37,282)
Income tax payable (2,822) (1,177) (3,857)
Derivative financial liabilities (2,422) (1,193) (3,118)
--------------- ---------------- -----------------
(90,552) (76,261) (89,546)
--------------- ---------------- -----------------
Non-current liabilities
Deferred tax liabilities - (2,252) -
--------------- ---------------- -----------------
- (2,252) -
--------------- ---------------- -----------------
Net assets 113,266 98,720 112,064
--------------- ---------------- -----------------
Equity
Share capital 2,195 2,160 2,194
Share premium account 9,283 9,137 9,139
Other reserves (1,281) (179) (1,850)
Translation reserve (3,688) (467) (2,980)
Retained earnings 106,757 88,069 105,561
--------------- ---------------- -----------------
Total equity 113,266 98,720 112,064
--------------- ---------------- -----------------
Condensed Group Cash Flow Statement
For the 28 weeks ended 9 August 2014
Note Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 52 weeks ended
9 August 10 August 25 January
2014 2013 2014
GBP'000 GBP'000 GBP'000
Cash generated from operations
Profit for the period 11,415 8,614 28,852
Adjusted for:
Income tax expense 4,137 3,008 10,071
Depreciation 6,413 5,615 10,889
Loss on disposal of property, plant & equipment 385 108 308
Net impairment credit - - 725
Share options / awards charge 580 140 606
Net finance losses 680 1,097 996
Net change in derivative financial assets and liabilities 284 204 463
Share of profit in joint venture (197) (108) (331)
Decrease in non-current prepayments 39 64 91
Increase in inventories (10,920) (7,937) (12,215)
Increase in trade and other receivables (2,952) (993) (3,787)
(Decrease) / increase in trade and other payables (3,672) (6,893) 4,780
Interest paid (735) (499) (1,169)
Income taxes paid (5,181) (5,751) (8,470)
---------------- ---------------- ----------------
Net cash generated from operating activities 276 (3,331) 31,809
---------------- ---------------- ----------------
Cash flow from investing activities
Purchases of property, plant & equipment & intangibles (13,805) (8,105) (18,082)
Proceeds from sale of property, plant & equipment 176 1 73
Interest received - 1 (43)
---------------- ---------------- ----------------
Net cash from investing activities (13,629) (8,103) (18,052)
---------------- ---------------- ----------------
Cash flow from financing activities
Proceeds from option holders for exercise of options - 71 71
Dividends paid (10,566) (7,965) (12,110)
Proceeds from issue of shares 145 - 2
---------------- ---------------- ----------------
Net cash from financing activities (10,421) (7,984) (12,037)
---------------- ---------------- ----------------
Net decrease in cash and cash equivalents (23,774) (19,328) (1,720)
Cash and cash equivalents at the beginning of the period (8,761) (10,039) (10,039)
Exchange rate movement (791) (588) (442)
Net cash and cash equivalents at the end of the period (33,326) (29,955) (8,761)
Cash and cash equivalents at the end of the period 10,887 10,069 28,521
Bank overdraft at the end of the period (44,213) (40,024) (37,282)
Net cash and cash equivalents at the end of the period (33,326) (29,955) (8,761)
Notes to the Condensed Interim Financial Statements
For the 28 weeks ended 9 August 2014
1. Basis of preparation
a. Reporting entity
Ted Baker Plc is a company domiciled in the United Kingdom. The
condensed interim financial statements ("interim financial
statements") of Ted Baker Plc as at, and for the 28 weeks ended, 9
August 2014 comprise the Company and its subsidiaries (together
referred to as the "Group").
The Group financial statements as at, and for the 52 weeks
ended, 25 January 2014 are available upon request from the
Company's registered office at Ted Baker Plc, The Ugly Brown
Building, 6a St. Pancras Way, London NW1 0TB or at
www.tedbakerPlc.com.
b. Statement of compliance
These interim financial statements have been prepared in
accordance with "IAS 34 Interim Financial Reporting" as adopted by
the EU and the requirements of the Disclosures and Transparency
Rules. They do not include all of the information required for full
annual financial statements and should be read in conjunction with
the Group financial statements as at, and for the 52 weeks ended,
25 January 2014. These interim financial statements were approved
by the Board of Directors on 2 October 2014.
The comparative figures for the 52 weeks ended 25 January 2014
are not the Company's statutory accounts for that financial year.
Those accounts have been reported on by the Company's auditors and
delivered to the registrar of companies. The report of the auditors
was (i) unqualified; (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis
without qualifying their report; and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
These sections address whether proper accounting records have been
kept, whether the Company's accounts are in agreement with these
records and whether the auditors have obtained all the information
and explanations necessary for the purposes of the audit.
The financial information in this document is unaudited, but has
been reviewed by the auditors in accordance with the Auditing
Practices Board guidance on Review of Interim Financial
Information.
c. Going concern
The Group financial statements for the 52 weeks ended 25 January
2014, approved by the Board on 21 March 2014, included information
on the business environment in which the Group operates, including
the factors that are likely to impact the future prospects of the
Group, together with the principal risks and uncertainties that the
Group faces. In addition, the notes to the consolidated financial
statements set out the Group's objectives, policies and processes
for managing its financial and capital risk and its exposures to
credit, market and liquidity risk. Many of the risks and
uncertainties reported are such that their potential to impact the
Group's operations are inherent and remain valid as regards to
their potential impact during the second half of 2014. The impact
of the economic environment in which the Group's businesses operate
is considered in the Chairman's Statement.
The Directors have prepared trading and cash flow forecasts for
a period of one year from the date of approval of these interim
financial statements. The Directors have a reasonable expectation
that the Group has adequate cash headroom and expects to meet all
banking covenant requirements. Accordingly, they continue to adopt
a going concern basis in preparing the financial statements of the
Group.
d. Significant accounting policies
The accounting policies adopted in these interim financial
statements are consistent with those followed in the preparation of
the Group's annual financial statements for the 52 weeks ended 25
January 2014. Adoption of amendments to published standards and
interpretations effective for the Group for the half year ended 9
August 2014 have had no significant impact on the financial
position and performance of the Group.
2. Segment information
Segment revenue and segment result
Unaudited - 28 weeks ended 9 August 2014 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 140,040 42,132 - 182,172
Cost of sales (50,475) (25,065) - (75,540)
--------- ---------- --------------- ---------
Gross profit 89,565 17,067 - 106,632
Operating costs (70,065) - - (70,065)
--------- ---------- --------------- ---------
Operating contribution 19,500 17,067 - 36,567
Licence income - - 5,496 5,496
--------- ---------- --------------- ---------
Segment result 19,500 17,067 5,496 42,063
Reconciliation of segment result to profit before tax
Segment result 19,500 17,067 5,496 42,063
Other operating costs (26,956)
Exceptional income 3,669
Exceptional costs (2,556)
Other operating expense (185)
Operating profit 16,035
Net finance expense (680)
Share of profit of jointly controlled entity, net of tax 197
---------
Profit before tax 15,552
---------
Capital expenditure 8,306 41 - 8,347
Unallocated capital expenditure 5,363
---------
Total capital expenditure 13,710
---------
Depreciation 5,305 98 - 5,403
Unallocated depreciation 1,010
---------
Total depreciation 6,413
---------
Segment assets 150,662 43,309 - 193,971
Other assets 9,847
---------
Total assets 203,818
---------
Segment liabilities (65,578) (19,730) - (85,308)
Other liabilities (5,244)
---------
Total liabilities (90,552)
---------
Net assets 113,266
---------
Unaudited - 28 weeks ended 10 August 2013 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 121,974 33,234 - 155,208
Cost of sales (43,107) (19,434) - (62,541)
--------- ---------- --------------- ---------
Gross profit 78,867 13,800 - 92,667
Operating costs (61,506) - - (61,506)
--------- ---------- --------------- ---------
Operating contribution 17,361 13,800 - 31,161
Licence income - - 4,010 4,010
--------- ---------- --------------- ---------
Segment result 17,361 13,800 4,010 35,171
Reconciliation of segment result to profit before tax
Segment result 17,361 13,800 4,010 35,171
Other operating costs (22,445)
Other operating expense (115)
---------
Operating profit 12,611
Net finance expense (1,097)
Share of profit of jointly controlled entity, net of tax 108
---------
Profit before tax 11,622
---------
Capital expenditure 6,286 136 - 6,422
Unallocated capital expenditure 1,675
---------
Total capital expenditure 8,097
---------
Depreciation 4,338 71 - 4,409
Unallocated depreciation 1,206
---------
Total depreciation 5,615
---------
Segment assets 130,898 33,566 - 164,464
Other assets 12,769
---------
Total assets 177,233
---------
Segment liabilities (58,069) (15,822) - (73,891)
Other liabilities (4,622)
---------
Total liabilities (78,513)
---------
Net assets 98,720
---------
Audited - 52 weeks ended 25 January 2014 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 259,143 62,778 321,921
Cost of sales (87,909) (35,542) - (123,451)
----------------------- ---------- --------------- ----------
Gross profit 171,234 27,236 - 198,470
Operating costs (122,176) - - (122,176)
----------------------- ---------- --------------- ----------
Operating contribution 49,058 27,236 - 76,294
Licence income - - 8,888 8,888
----------------------- ---------- --------------- ----------
Segment result 49,058 27,236 8,888 85,182
Reconciliation of segment result to profit before
tax
Segment result 49,058 27,236 8,888 85,182
Other operating costs (44,416)
Exceptional costs (1,046)
Other operating expense (132)
----------
Operating profit 39,588
Net finance expense (996)
Share of profit of jointly controlled entity, net
of tax 331
----------
Profit before tax 38,923
----------
Capital expenditure 13,009 281 - 13,290
Unallocated capital expenditure 4,578
----------
Total capital expenditure 17,868
----------
Depreciation 8,433 183 - 8,616
Unallocated depreciation 2,273
----------
Total Depreciation 10,889
----------
Segment assets 153,844 37,803 - 191,647
Other assets 9,963
----------
Total assets 201,610
----------
Segment liabilities (66,469) (16,102) - (82,571)
Other liabilities (6,975)
----------
Total liabilities (89,546)
----------
Net assets 112,064
----------
3. Exceptional Income and Expenses
The directors believe that the profit before exceptional items
and the 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 income for the period of GBP3.7m (10 August 2013:
GBPnil, 25 January 2014: GBPnil) is in relation to the early
termination of a licence partner agreement. In February 2014 we
came to a mutual agreement with one of our licence partners to
terminate our licence agreement earlier than anticipated due to a
variation in that licence partner's long-term strategy following a
change in senior management. The Company has recognised minimum
royalty income in line with the terms of the original agreement in
the 28 week period ended 9 August 2014 up to the point where work
with the licence partner was complete. In addition we received a
payment of GBP3.7 million for compensation of royalties that would
be due to us had the agreement continued to its original completion
date. Given the quantum of the amounts involved and the unusual
nature of the early termination of the agreement the compensation
payment has been included as exceptional income in the period.
Exceptional costs for the period of GBP2.6m (10 August 2013:
GBPnil, 25 January 2014: GBP1.0m) relate to a legal dispute with a
previous insurer. The Group is pursuing a claim against a previous
insurer for loss of profit arising from the theft of inventory from
its warehouse from 2004 to 2008. Whilst the directors remain
confident, no contingent asset has been recognised at the balance
sheet date in respect of any compensation for loss of profit or
recovery of costs that may be awarded to the Company. This is on
the basis that accounting standards require the directors to be
virtually certain of the outcome, and final judgment and any award
of costs is pending from the Courts. Accordingly an amount of
GBP2.6 million has been charged as exceptional costs during the
period which relates to the Company's legal and professional costs
incurred in respect of the case.
Exceptional costs incurred for the 52 weeks ended 25 January
2014 include GBP0.7m of impairment charges in respect of the retail
assets of a store in the Meatpacking District, New York, and a
store in Paris. The balance of GBP0.3m related to an onerous lease
for one of our Liverpool based stores, where we had ceased trading
following the expansion of our Liverpool One store in
Merseyside.
4. Finance income and expenses
Unaudited Unaudited Audited
28 weeks ended 9 August 2014 28 weeks ended 10 August 2013 52 weeks
ended 25 January 2014
GBP'000 GBP'000 GBP'000
Finance income
- Interest receivable 15 2 146
- Foreign exchange gains 54 25 170
----------------------------- ------------------------------ -----------------------
69 27 316
----------------------------- ------------------------------ -----------------------
Finance expenses
- Interest payable (595) (511) (1,279)
- Foreign exchange losses (154) (613) (33)
----------------------------- ------------------------------ -----------------------
(749) (1,124) (1,312)
----------------------------- ------------------------------ -----------------------
5. Earnings per share
Unaudited Unaudited Audited
28 weeks ended 9 August 28 weeks ended 10 August 52 weeks ended 25 January
2014 2013 2014
Number of shares: No. No. No.
Weighted number of ordinary
shares outstanding 43,669,783 42,632,866 42,960,023
Effect of dilutive options 632,677 1,334,699 537,103
---------------------------- ---------------------------- ----------------------------
Weighted number of ordinary
shares outstanding -
diluted 44,302,460 43,967,565 43,497,126
---------------------------- ---------------------------- ----------------------------
Earnings: GBP'000 GBP'000 GBP'000
Profit for the period,
basic and diluted 11,415 8,614 28,852
Profit for the period
adjusted * 10,573 8,614 29,627
Basic earnings per share 26.1p 20.2p 67.2p
Adjusted earnings per share
* 24.2p 20.2p 69.0p
Diluted earnings per share 25.8p 19.6p 66.3p
* Adjusted profit for the period and adjusted earnings per share
are shown before exceptional items (net of tax) of GBP842,000 (28
weeks ended 10 August 2013: GBPnil, 52 weeks ended 25 January 2014:
GBP775,000).
6. Dividends per share
Unaudited Unaudited Audited
28 weeks ended 9 August 28 weeks ended 10 August 52 weeks ended 25 January
2014 2013 2014
GBP'000 GBP'000 GBP'000
Final dividend paid for the
prior year of 24.2p per
ordinary share (2013:
18.7p) 10,566 7,965 7,965
Interim dividend paid 2014:
Nil (2013: Nil) - - 4,145
---------------------------- ---------------------------- ----------------------------
10,566 7,965 12,110
---------------------------- ---------------------------- ----------------------------
The Board has declared an interim dividend of 11.3p per share
(2013: 9.5p) payable on 21 November 2014 to shareholders on the
register at 17 October 2014.
7. Income tax expense
The Group's full year forecast effective tax rate in respect of
continuing operations for the 28 weeks ended 9 August 2014 is 26.6%
(28 weeks ended 10 August 2013: 25.9%, 52 weeks ended 25 January
2014: 25.9%).
This effective tax rate is higher than the UK tax rate due to
higher overseas tax rates and the non-recognition of losses in
overseas territories where the businesses are still in their
development phase. On 1 April 2014 the UK corporation tax rate fell
from 23% to 21%. A further reduction to 20% (from 1 April 2015) has
been substantively enacted and therefore our closing UK deferred
tax assets and liabilities have been measured at this rate.
Our future effective tax rate is expected to be higher than the
UK tax rate as a result of overseas profits arising in
jurisdictions with higher tax rates than the UK.
8. Share based payments
Sharesave Scheme
Share options are granted at an option price equal to 80 per
cent. of the Company share price at the grant date. The share
options vest and are exercisable either three or five years after
the date of grant, and they expire six months after the end of the
vesting period. The options will also expire if the employee leaves
the Group prior to the exercise or vesting date.
The charge to the income statement for the 28 weeks ended 9
August 2014 in respect of Sharesave scheme options amounted to
GBP63,815 (2013: GBP43,669).
The terms and conditions of the SAYE grants made during the 28
weeks ended 9 August 2014 are as follows:
Grant date Type of award Number of shares Vesting conditions Vesting period
20 May 2014 SAYE Share Options 42,849 None 100% after 3 years
20 May 2014 SAYE Share Options 8,229 None 100% after 5 years
The basis of measuring fair value is consistent with that
disclosed in the consolidated financial statements for the 52 weeks
ended 25 January 2014. The range of inputs into the Black-Scholes
model was as follows:
Share price 2,000.0p
Exercise price 1,600.0p
Risk free interest rate 1.48-2.01%
Expected life of options 3-5 years
Share price volatility 30.0-31.0%
Dividend yield 1.72%
Long Term Incentive Plan
Share awards are made in the form of nil-cost options under the
Ted Baker Plc Long Term Incentive Plan 2013 ("LTIP 2013"), which
was approved by the shareholders at the general meeting held on 20
June 2013. A second award of options was granted under the LTIP
2013 on 1 May 2014. The options will be exercisable three years
after the date of grant subject to the satisfaction of profit
before tax per share and share price performance targets, each
measured over a three year period.The profit before tax per share
target is calibrated so that the percentage of awards that vestsis
linked to the level of profit growth achieved.
The terms and conditions of the LTIP 2013 awards made during the
28 weeks ended 9 August 2014 are as follows:
Grant date Type of award Number of shares Vesting conditions Vesting period
1 May 2014 LTIP 2013 254,141 Profit Up to 100% after 3
before tax years
per share
growth of
10-15% per
annum and
10% share
price
growth
over the
vesting
period
The charge to the income statement for the 28 weeks ended 9
August 2014 for LTIP 2013 awards amounted to GBP515,920 (2013:
GBP96,561). Included in the charge for the period is an amount in
respect of R S Kelvin, who is employed by the Company, amounting to
GBP66,230 (2013: GBP14,077).
The Monte-Carlo valuation methodology has been used as the basis
of measuring fair value of the LTIP 2013. The range of inputs into
the Monte-Carlo model was as follows:
Share price at grant 1,849.0p
Share price at grant (based on 6 month average) for share price performance condition 2,103.0p
Risk free interest rate 1.18%
Expected life of options 3 years
Share price volatility 29.0%
Dividend yield 1.82%
Value Creation Plan
No further awards were made under the Ted Baker 2009 Value
Creation Plan ("2009 VCP") in the 28 weeks ended 9 August 2014 or
the 28 weeks ended 10 August 2013 and no amounts charged to the
income statement in either period. As at 9 August 2014 there
remained 202,382 2009 VCP options unexercised.
9. Reconciliation of cash and cash equivalents per balance sheet to the cash flow statement
Unaudited Unaudited
28 weeks 28 weeks
ended 9 August 2014 ended 10 August 2013
GBP'000 GBP'000
Cash and cash equivalents per balance sheet 10,887 10,069
Bank overdraft per balance sheet (44,213) (40,024)
--------------------- ----------------------
Cash and cash equivalents per cash flow statement (33,326) (29,955)
--------------------- ----------------------
During the period the Group was in discussions with The Royal
Bank of Scotland and Barclays to arrange the renewal of its
multi-currency revolving credit facility, due to expire 1 March
2015. A new agreement was signed on 29 September 2014 whereby the
Group increased its committed borrowing facility from GBP50m to
GBP65m for 3.5 years to March 2018. The existing borrowing facility
was repaid on 29 September 2014 and the Group commenced borrowing
under the new facility on the same day. The new facility is on
similar terms to the previous facility and contains similar
covenants appropriate to the Group which will be tested on a
quarterly basis.
10. Intangible assets
Intangible asset additions during the period include GBP4.0m (25
January 2014: GBP2.7m) in relation to the Microsoft Dynamics AX
systems which will be implemented across the group and GBP0.9m (25
January 2014: GBP2.6m) relating to IT systems for the new
e-commerce platform for both the UK and US site.
11. Treasury shares
The Company acquired nil Treasury shares (2013: nil) and
disposed of 29,113 treasury shares in satisfaction of the Company's
share option schemes for the proceeds of GBPnil (2013: 229,097 for
proceeds of GBP71,340) in the 28 weeks ended 9 August 2014.
12. Related Parties
The Company has a related party relationship with its directors
and executive officers.
Directors of the company and their immediate relatives control
35.8% (2013:36%) of the voting shares of the Company.
At 9 August 2014, the main trading company owed the parent
company GBP25,370,000 (10 August 2013: GBP23,183,000). The main
trading company was owed GBP28,009,000 (10 August 2013:
GBP62,634,000) from other subsidiaries within the Group.
Transactions between subsidiaries and between the parent and
subsidiaries were priced on an arm's length basis.
The Group has a 50% interest in a joint venture company in
Australia which is also the parent company of a subsidiary joint
venture in New Zealand. As at 9 August 2014, the joint venture owed
GBP505,000 to the main trading company (10 August 2013:
GBP477,000). The value of sales made to the joint venture by the
Group in the period was GBP1,319,000 (10 August 2013:
GBP811,000).
13. Principal risks and uncertainties
Strategic Risks Operational Risks
* Significant external events affecting our supply * Failure in our supply chain affecting our ability to
chain, customers, partners affecting our revenue deliver our offer to customers and/or partners
and/or cost base
* Cost inflation affecting our operating costs
* Reputational risk to our brand as a result of our
actions or those of our partners
* Risk that our offer will not satisfy the needs of our * Operational problems affecting the internal
customers infrastructure of our business
* Failure to operate in a sustainable and responsible
manner
* IT security breach and loss of controlled data
Financial Risks
* Loss of key individuals
* Failure of counterparties
* Currency, interest and credit risks * Non-compliance with applicable legislations and
regulations
* Financial covenants under credit facilities
* Poorly managed implementation or take up of new
systems, leading to business disruptions
Responsibility statement of the directors in respect of the
interim financial statements
The directors confirm that to the best of their knowledge:
-- the condensed financial statements have been prepared in
accordance with IAS 34, Interim Financial Reporting as adopted by
the EU;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first 28 weeks of the financial year and their impact on the
condensed financial statements, and a description of the principal
risks and uncertainties for the remaining 25 weeks of the financial
year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first 28
weeks of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
The directors of Ted Baker Plc are listed on page 25 of the
financial statements as at, and for, the 52 weeks to 25 January
2014. A list of current directors is maintained on the Ted Baker
Plc website, at: www.tedbakerPlc.com
By order of the Board
R S Kelvin L D Page
Chief Executive Finance Director
02 October 2014 02 October 2014
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements.
These forward-looking statements include matters that are not
historical facts or are statements regarding the Group's
intentions, beliefs or current expectations concerning, among other
things, the Group's results of operations, financial condition,
liquidity, prospects, growth, strategies, and the industries in
which the Group operates. Forward-looking statements are based on
the information available to the Directors at the time of
preparation of this announcement, and will not be updated during
the year. The Directors can give no assurance that these
expectations will prove to have been correct. Due to inherent
uncertainties, including both economic and business risk factors
underlying such forward looking information, actual results may
differ materially from those expressed or implied by these
forward-looking statements.
INDEPENDENT REVIEW REPORT TO TED BAKER Plc
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the interim results announcement for the
28 weeks ended 9 August 2014 which comprises the Condensed Group
Income Statement, the Condensed Group Statement of Comprehensive
Income, the Condensed Group Statement of changes in equity, the
Condensed Group Balance Sheet, the Condensed Group Cash flow
statement and the related explanatory notes. We have read the other
information contained in the interim results announcement and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
This report is made solely to the company in accordance with the
terms of our engagement to assist the company in meeting the
requirements of the Disclosure and Transparency Rules ("the DTR")
of the UK's Financial Conduct Authority ("the UK FCA"). Our review
has been undertaken so that we might state to the company those
matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company
for our review work, for this report, or for the conclusions we
have reached.
Directors' responsibilities
The interim results announcement is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the interim results announcement in accordance with
the DTR of the UK FCA.
The annual financial statements of the group are prepared in
accordance with IFRSs as adopted by the EU. The condensed set of
financial statements included in this interim results announcement
has been prepared in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the interim results
announcement based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the interim results announcement for the 28 weeks ended 9 August
2014 is not prepared, in all material respects, in accordance with
IAS 34 as adopted by the EU and the DTR of the UK FCA.
Robert Brent
for and on behalf of KPMG LLP
Chartered Accountants
15 Canada Square
London
E14 5GL
02 October 2014
This information is provided by RNS
The company news service from the London Stock Exchange
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