RNS Number:4371Q
Ted Baker PLC
02 October 2003
2 October 2003
Ted Baker plc
Interim Results for the 28 weeks to 9 August 2003
Highlights
* Group turnover up 31.7% to #41.9m (2002: #31.8m)
* Retail sales up 26.0% to #27.1m (2002: #21.5m)
* Wholesale sales up 43.6% to #14.8m (2002: #10.3m) driven by a strong
performance across all collections and earlier phasing of deliveries
compared to last year
* Continued progression of licence income, up 21.4% at #1.1m (2002: #0.9m)
* Profit before tax increased by 53.5% to #4.6m (2002: #3.0m)
* Basic earnings per share up 48.1% at 7.7p (2002: 5.2p)
* Interim dividend up 10.3% to 3.2p per share (2002: 2.9p per share)
Commenting, Ray Kelvin, Chief Executive, said:
"I am pleased to report strong growth in both sales and profits for Ted Baker in
the first half of the year. This reflects an excellent performance across all
areas of the business and underpins the success of our strategy of developing
the appeal of Ted Baker as a global brand. While current trading is strong and
we are confident of a positive outcome for the year, the second part of the
year, including the Christmas period, remains key to our overall performance."
Enquiries:
Ted Baker plc Tel: 020 7796 4133 on 2 October 2003 only
Ray Kelvin, Chief Executive Tel: 020 7255 4800 thereafter
Lindsay Page, Finance Director
Hudson Sandler Tel:020 7796 4133
Piers Hooper
Noemie de Andia
Sandrine Boussard
Visit Ted's award winning e-commerce site at www.tedbaker.co.uk and click on '
Visit Ted's World' to be taken to our investor relations website.
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charge from www.vismedia.co.uk.
CHAIRMAN'S STATEMENT
I am pleased to report strong growth in both sales and profits for Ted Baker in
the first half of the year. This performance underpins the success of our
strategy of developing Ted Baker as a global brand through the expansion of our
collections and the careful management of our three distribution channels,
retail, wholesale and licensing and reflects the personality of the Ted Baker
brand and the high quality of our teams throughout the business. Ted Baker
continues to pursue a policy of careful brand management and growth by extending
the breadth of our collections, expanding our three distinct distribution
channels and developing our presence in key overseas markets, especially the
United States.
FINANCIAL RESULTS
Group turnover increased by 31.7% to #41.9m (2002: #31.8m) in the 28 weeks to 9
August 2003, driven by growth in both the retail and wholesale businesses.
Operating profit increased by 48.1% to #4.8m (2002: #3.3m).
The retail gross margin was in line with last year while the wholesale gross
margin was slightly lower due to a change in the sales mix. The change in sales
mix between retail and wholesale and the lower wholesale gross margin has
resulted in a slight decrease in the composite gross margin to 57.4% (2002:
58.3%).
Profit before tax for the period improved by 53.5% to #4.6m (2002: #3.0m). Basic
earnings per share increased by 48.1% to 7.7p (2002: 5.2p).
DIVIDENDS
The Board has declared an increased interim dividend of 3.2p per share (2002:
2.9p) payable on 29 November 2003 to shareholders on the register at the close
of business on 7 November 2003.
RETAIL
The retail division had a very strong first half reflecting increased trading
space, the appeal of our collections, the quality of our retail teams, the high
service levels they provide and the continued appeal of our store environment.
Retail sales were up 26.0% to #27.1m (2002: #21.5m) with strong growth in all
collections. Retail gross margins remain strong and were in line with last
year's performance at 65.7% (2002: 65.7%).
We continue to transform our store portfolio to reflect the breadth of our
collections. In May 2003 we relocated our King's Road store from a 1,200 sq ft
store to a 2,300 sq ft store in the new Duke of York's Square development and
are pleased with its performance to date. During the period we opened one outlet
store in Bicester and five concessions in leading department stores, bringing
the total number of retail locations to 77.
We remain encouraged by the performance of our overseas stores, especially in
the United States, which remains our primary strategic focus in the overseas
market.
Average retail square footage increased by 37.6% to 93,991 sq ft (2002: 68,317
sq ft). Sales per square foot were #289 (2002: #315). Excluding overseas stores
that generate a lower yield than our UK stores and Floral Street, where we
anticipated a lower than average yield, sales per square foot were #329 (2002:
#315).
WHOLESALE
The wholesale division remains a key distribution channel for the Ted Baker
brand and we continue to expand the ranges distributed through this channel. The
wholesale division performed very strongly over the period with wholesale sales
up by 43.6 % to #14.8m (2002: #10.3m). This positive result reflects the
continued success of all of our collections, notably Endurance and
childrenswear, as well as the earlier phasing of deliveries compared to the same
period last year. We estimate that the earlier phasing of Autumn / Winter stock
contributed an additional #1.8m of sales in the first half compared to last
year.
Gross margins were 42.1% (2002: 42.9%), reflecting changes in the wholesale mix.
Underlying margins by collection were increased or maintained.
LICENCE INCOME
Developing our licence income remains a key element of our brand management
strategy. We continue to work in close partnership with our licence partners to
create exceptional collections of accessories, fragrance and footwear, and
increase the global reach of our brand. We are pleased with the growth of our
licence income which increased by 21.4% to #1.1m (2002: #0.9m) over the period.
Our key US wholesale licence continues to make encouraging progress despite a
difficult economic and political backdrop.
We are now seeing the benefits of moving our footwear business to a shoe
specialist licence partner as wholesale footwear sales are running at twice the
level achieved in the same period last year.
We are pleased with the continued growth of our Skinwear licence which was
partly driven by the new "M" for men and "W" for women fragrances launched last
Autumn.
COLLECTIONS
Sales of Ted Baker Menswear in the period increased by 30.2% and Womenswear also
enjoyed a strong performance with sales increasing by 22.1%. Womenswear
represented 41.1% of our total sales (2002: 44.4%). Sales of other collections,
comprising Childrenswear, Homeware and Footwear, were #3.5m (2002: #1.5m). Other
collections now represent 8.4% of sales (2002: 4.6%).
CURRENT TRADING AND PROSPECTS
Trading has continued to be strong since the end of the first half. In the seven
weeks to 27 September 2003, retail sales were 21.1% ahead of the same period
last year and we are pleased with the initial reaction to our winter
collections. Wholesale sales were also 36.6% ahead of last year, reflecting the
continuing earlier phasing of deliveries. We expect the positive impact of the
earlier phasing of wholesale deliveries in the first half to be corrected in the
second half.
We anticipate a higher composite gross margin in the second half resulting in
full year composite gross margins being in line with last year.
Since the period end we have continued to manage our store portfolio to reflect
the expansion of the brand. At the beginning of September we closed our two
stores in Manchester (Triangle and King Street) and relocated to a larger store
in the Shambles, off Exchange Square in Manchester. The Shambles store is our
second largest store to date and hosts the full range of Ted Baker collections
in an exciting store environment. Initial trading since opening has been
exceptionally encouraging. We also expect to open a further nine concessions in
leading department stores in the second half.
We continue to expand our collections and reinforce our brand positioning with
the launch of the Global Collection in Autumn 2003. This limited edition
collection is the most exclusive and fashionable Ted Baker collection to date
and we are pleased with the initial reaction from our customers. The Global
collection is a men only collection which is available at selected Ted Baker
stores, Selfridges and Harvey Nichols, London.
While current trading is strong and we are confident of a positive outcome for
the year, the second half of the year, including the Christmas period, remains
key to our overall performance.
Robert Breare
2 October 2003
Consolidated Profit and Loss Account
for the 28 weeks ended 9 August 2003
unaudited unaudited audited
28 weeks 28 weeks 52 weeks
ended ended ended
9 August 10 August 25 January
2003 2002 2003
#'000 #'000 #'000
Note
Turnover 41,899 31,819 70,188
Cost of sales (17,862) (13,268) (28,252)
---------- ---------- ----------
Gross profit 24,037 18,551 41,936
Distribution costs (14,528) (11,251) (23,644)
Administration expenses (5,921) (4,948) (9,102)
Impairment of fixed assets - - (1,551)
Other operating income 1,226 898 2,271
---------- ---------- ----------
Operating profit 4,814 3,250 9,910
Net interest payable (173) (226) (425)
---------- ---------- ----------
Profit on ordinary activities 4,641 3,024 9,485
before taxation
Tax on profit on ordinary activities (1,478) (915) (3,033)
---------- ---------- ----------
Profit on ordinary activities 3,163 2,109 6,452
after taxation
Minority interests - equity 18 29 104
Dividends paid and proposed (1,338) (1,196) (3,600)
---------- ---------- ----------
Retained profit for the period 1,843 942 2,956
========== ========== ==========
Basic earnings per share 2 7.7p 5.2p 15.9p
Adjusted basic earnings per share - - 18.6p
Diluted basic earnings per share 2 7.5p 5.1p 15.6p
Consolidated Balance Sheet
as at 9 August 2003
unaudited unaudited audited
9 August 10 August 25 January
2003 2002 2003
#'000 #'000 #'000
Note
Fixed assets
Tangible assets 16,166 13,240 15,375
Investments 993 414 349
-------- -------- --------
17,159 13,654 15,724
-------- -------- --------
Current assets
Stock 16,729 13,384 13,937
Debtors 9,582 7,239 6,975
Cash at bank and in hand 2,602 1,788 2,778
-------- -------- --------
28,913 22,411 23,690
Creditors : amounts falling due within (20,734) (14,770) (16,456)
one year
-------- -------- --------
Net current assets 8,179 7,641 7,234
-------- -------- --------
Total assets less current liabilities 25,338 21,295 22,958
Creditors : amounts falling due after (4,000) (4,000) (4,000)
more than one year
Provisions for liabilities and charges (219) (430) (123)
-------- -------- --------
Net assets 21,119 16,865 18,835
-------- -------- --------
Capital and reserves
Called up share capital 3 2,090 2,072 2,072
Share premium 3 2,339 1,412 1,412
Profit and loss account 3 16,769 13,369 15,411
-------- -------- --------
Equity shareholders' funds 21,198 16,853 18,895
Minority interests - equity 3 (79) 12 (60)
-------- -------- --------
Total capital and reserves 21,119 16,865 18,835
======== ======== ========
Consolidated Cash Flow Statement
for the 28 weeks ended 9 August 2003
unaudited unaudited audited
28 weeks 28 weeks 52 weeks
ended ended Ended
9 August 10 August 25 January
2003 2002 2003
#'000 #'000 #'000
Note
Net cash inflow from operating activities 4a 1,826 735 13,632
Returns on investments and servicing of
finance
Interest received 3 50 55
Interest paid (154) (248) (502)
Taxation (1,855) (1,259) (3,215)
Capital expenditure 4d (2,459) (1,920) (7,949)
Equity dividends paid (2,404) (2,111) (3,313)
---------- ---------- ----------
Cash outflow before financing (5,043) (4,753) (1,292)
Shares issued 472 225 225
Purchase of shares (693) - -
---------- ---------- ----------
Decrease in cash (5,264) (4,528) (1,067)
========== ========== ==========
Notes to the Interim Financial Statements
1. Basis of preparation
The consolidated interim financial statements have been prepared under the
historical cost convention and in accordance with applicable accounting
standards. The accounting policies are consistent with those set out in the
financial statements of Ted Baker plc for the 52 weeks ended 25 January
2003.
The financial information in this report does not constitute statutory
accounts and does not comprise the group's financial statements for the 52
weeks ended 25 January 2003. The financial statements for Ted Baker plc for
the 52 weeks ended 25 January 2003 have been delivered to the Registrar of
Companies. The auditors' report on these financial statements was
unqualified and did not include a statement under Section 237 (2) or (3) of
the Companies Act 1985.
2. Earnings per share
Earnings per share for the 28 weeks ended 9 August 2003, the 28 weeks ended
10 August 2002 and the 52 weeks ended 25 January 2003 have been calculated
on profit on ordinary activities after taxation and on the weighted average
number of ordinary shares outstanding, being 41,148,386 ordinary shares for
the 28 weeks ended 9 August 2003, 40,981,573 shares for the 28 weeks ended
10 August 2002 and 40,994,540 shares for the 52 weeks ended 25 January
2003. Own shares held by employee benefit trusts have been eliminated from
the weighted number of ordinary shares and dividend income arising from
these holdings has been eliminated from the profit on ordinary activities
after taxation and minority interests.
Diluted earnings per share are based on a weighted average number of shares
of 42,178,686 for the 28 weeks ended 9 August 2003, 41,810,907 for the 28
weeks ended 10 August 2002 and 41,883,574 for the 52 weeks ended 25 January
2003.
3. Capital and reserves
Share Share Profit and loss Minority
capital premium account interests
#'000 #'000 #'000 #'000
At 25 January 2003 2,072 1,412 15,411 (60)
Retained profit for the period - - 1,843 (18)
Shares issued 18 927 (473) -
Exchange rate movement - - (12) (1)
---------- ---------- ---------- ----------
At 9 August 2003 2,090 2,339 16,769 (79)
========== ========== ========== ==========
4. Notes to the Consolidated Cashflow Statement
for the 28 weeks ended 9 August 2003
unaudited unaudited audited
28 weeks 28 weeks 52 weeks
ended ended ended
9 August 10 August 25 January
2003 2002 2003
#'000 #'000 #'000
a) Reconciliation of operating profit to net
cash inflow from operating activities
Operating profit 4,814 3,250 9,910
Impairment of fixed assets - - 1,551
Depreciation charges 1,751 1,554 3,093
Loss on sale of tangible fixed assets 6 9 9
Decrease in own shares 49 - 97
Increase in stock (2,782) (1,074) (1,654)
Increase in debtors (2,710) (2,195) (1,135)
Increase / (decrease) in creditors 698 (809) 1,761
---------- ---------- ----------
1,826 735 13,632
========== ========== ==========
b) Analysis of movements in cash
during the year
Balance at beginning of the period (1,222) (125) (125)
Net cash outflow (5,264) (4,528) (1,067)
Exchange difference 11 (12) (30)
---------- ---------- ----------
Balance at end of period (6,475) (4,665) (1,222)
========== ========== ==========
c) Analysis of the balance of cash as shown
in the balance sheet
Cash at bank and in hand 2,602 1,788 2,778
Bank overdraft (5,077) (2,453) -
Debt due after more than one year (4,000) (4,000) (4,000)
---------- ---------- ----------
(6,475) (4,665) (1,222)
========== ========== ==========
d) Capital expenditure
Payments to acquire tangible fixed assets (2,492) (1,952) (7,949)
Receipts from sale of tangible fixed assets 33 - -
Sale of own shares - 32 -
---------- ---------- ----------
(2,459) (1,920) (7,949)
========== ========== ==========
5. Interim Report
This interim report will be sent by post to all registered shareholders.
Copies will be available to the public from the Company Secretary at the
registered office: Ted Baker plc, The Ugly Brown Building, 6a St Pancras
Way, London NW1 OTB.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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