TIDMTBK
RNS Number : 9921T
Ted Baker PLC
07 October 2010
Ted Baker PLC
Interim Results for the 28 weeks ended 14 August 2010
Highlights
· Strong Group performance
· Retail sales up 17.2% on an 8.2% increase in average retail square footage
o UK and European retail sales up 14.4% to GBP64.2m
o US retail sales up 20.0% to $9.6m
· Retail stores opened in Phoenix and Santa Monica
· Wholesale sales up 6.3%, driven largely by encouraging start to US
wholesale business
· Licence sales up 19.8% to GBP3.0m
+----------+----------+----------+--------+
| | 28 | 28 | Change |
| | weeks | weeks | |
| | ended | ended | |
| | 14 | 15 | |
| | August | August | |
| | 2010 | 2009 | |
+----------+----------+----------+--------+
| Group | GBP88.1m | GBP76.6m | 15.0% |
| Revenue | | | |
+----------+----------+----------+--------+
| Profit | GBP7.5m | GBP6.0m | 24.6% |
| Before | | | |
| Tax | | | |
+----------+----------+----------+--------+
| Basic | 12.9p | 10.4p | 24.0% |
| EPS | | | |
+----------+----------+----------+--------+
| Interim | 6.3p | | 20.0% |
| Dividend | | 5.25p | |
+----------+----------+----------+--------+
Commenting, Ray Kelvin, Founder and Chief Executive, said:
"This is a strong performance for the first half of 2010. We continue to expand
the Ted Baker brand in new and existing territories, whilst maintaining our
focus on design, quality, innovation and attention to detail.
The passion and commitment of the Ted Baker team is a key strength of this
business and I would like to take this opportunity to thank them all for their
ongoing hard work and dedication."
+------------+---------------+
| Enquiries: | |
+------------+---------------+
| | |
+------------+---------------+
| Ted | Tel: |
| Baker | 020 |
| PLC | 7796 |
| | 4133 |
| | on 7 |
| | October |
| | 2010 |
| | only |
+------------+---------------+
| Ray | Tel: |
| Kelvin, | 020 |
| Chief | 7255 |
| Executive | 4800 |
| | thereafter |
+------------+---------------+
| Lindsay | |
| Page, | |
| Finance | |
| Director | |
+------------+---------------+
| | |
+------------+---------------+
| Hudson | Tel: |
| Sandler | 020 7796 4133 |
+------------+---------------+
| Michael | |
| Sandler | |
+------------+---------------+
| Kate | |
| Hough | |
| Alex | |
| Brennan | |
+------------+---------------+
Chairman's Statement
I am pleased to report a strong performance across the Group in the first half
of the year, which resulted in a 15.0% increase in Group revenue to GBP88.1m and
a 24.6% improvement in profit before tax to GBP7.5m
Through our robust multi-channel distribution strategy, we continue to expand
the Ted Baker brand in existing and new international markets. Our retail
division has continued to perform well with sales up 17.2% on an 8.2% increase
in average retail square footage. A good performance in the UK was supported by
improved trading conditions in our overseas markets.
Wholesale sales were up 6.3%, which was largely due to our US wholesale business
and a 2.5% increase in underlying UK wholesale sales. Total UK wholesale sales
were slightly down on the prior year because the comparative period included
sales from wholesale accounts which have transferred to retail concessions.
Licence income from our product and territorial licences increased by 19.8% to
GBP3.0m and included a full contribution in the period from our US product
licences.
Financial Results
Group revenue increased by 15.0% to GBP88.1m (2009: GBP76.6m) for the 28 weeks
ended 14 August 2010 ("the period"). The composite gross margin increased to
61.2% (2009: 59.5%) reflecting buying efficiencies and less promotional activity
in our overseas markets.
Operating expenses increased by 18.3% in the period to GBP49.3m (2009:
GBP41.6m). Distribution costs, which mainly comprise the cost of retail stores,
outlets and concessions, increased by 15.9% to GBP37.1m (2009: GBP32.0m),
reflecting the increase in average retail square footage and an increase in
turnover related property costs. Administrative expenses increased by 26.6% to
GBP12.2m (2009: GBP9.6m). Excluding employee performance related bonus costs of
GBP0.9m (2009: nil), administration expenses increased by 17.2% reflecting
growth in the US team to support our US retail and wholesale businesses and
growth in other central functions to support our expansion into international
markets.
Profit before tax increased by 24.6% to GBP7.5m (2009: GBP6.0m) resulting in
basic earnings per share of 12.9p (2009: 10.4p). The effective tax rate of 29.3%
was in line with our expectations for the full financial year.
Net cash generated from operating activities increased to GBP4.8m (2009:
GBP4.1m). Capital expenditure of GBP4.8m (2009: GBP2.5m) reflected two store
openings compared to one in the comparative period last year and some
refurbishment of existing locations, including a major refurbishment of our
store in Floral Street, London.
Dividends
The Board has declared an interim dividend of 6.3p (2009: 5.25p), representing
an increase of 20.0%, which will be payable on 26 November 2010 to shareholders
on the register at the close of business on 22 October 2010.
Board
On 15 June 2010 we were delighted to announce that Anne Sheinfield was appointed
to the Board as an Independent Non-Executive Director. Anne is a commercial
lawyer with 19 years' post qualification experience in the theatre, TV and music
areas of entertainment. Anne brings with her a wealth of intellectual property
and commercial legal experience and we look forward to her contribution going
forward. After a suitable induction with the Company, it is intended that Anne
will be appointed to the Audit, Nomination and Remuneration Committees.
The Brand
Our strategy is to become a leading global designer 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; 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 ("trustees").
Global Group Performance
Retail
We currently operate stores and concessions across the UK, Europe, US and Hong
Kong. Trading in the UK continued strongly and was well supported by an improved
trend in our overseas markets and an encouraging start in Hong Kong. Retail
sales were up 17.2% to GBP71.9m (2009: GBP61.3m) with average retail square
footage increasing by 8.2% to 219,936 sq.ft (2009: 203,325 sq.ft). Sales per
square foot rose by 6.4% to GBP315 (2009: GBP296). Our e-commerce business
benefited from the further enhancements made to our transactional website last
year, with a significant increase in sales compared to the same period last
year.
The retail gross margin was 65.4% (2009: 63.9%) reflecting buying efficiencies
and less promotional activity in our overseas markets.
Wholesale
Wholesale sales were 6.3% above last year at GBP16.2m (2009: GBP15.3m) with
gross margins of 42.9% (2009: 41.6%). The growth in sales largely reflects the
encouraging start of our US wholesale business with underlying UK wholesale
sales and gross margins in line with expectations and slightly above last year.
Licence Income
We operate two types of licences: territorial licences covering the Middle East,
Asia, Australia and New Zealand; and product licences covering lingerie &
sleepwear, perfume & fragrance, watches, footwear, eyewear, neckwear and
childrenswear.
Licence income for the period increased in line with expectations to GBP3.0m
(2009: GBP2.5m).
We are pleased with the performances from our territorial and product licences.
We have seen continued good performances from our licensed childrenswear
collection, exclusive to Debenhams, with whom we have also launched B by Ted
Baker, a new and exclusive lingerie and sleepwear collection, during the period.
The improvement in licence income was largely due to a full contribution in the
period from our US product licences signed directly with companies who had
previously held product sub-licences with Hartmarx Corporation.
Collections
Ted Baker Womenswear delivered another strong performance in the period with
sales up 17.3% to GBP43.3m (2009: GBP36.9m). Womenswear represented 49.1% of
total sales (2009: 48.2%). Ted Baker Menswear also delivered a strong
performance with sales increasing 12.8% to GBP44.8m (2009: GBP39.7m). Menswear
represented 50.9% of total sales (2009: 51.8%).
Geographic Performance
United Kingdom & Europe
Sales in the period in our UK and Europe retail division were up 14.4% to
GBP64.2m (2009: GBP56.1m). The UK continued to perform well and was supported by
improved trading conditions in the rest of Europe during the period.
Average square footage rose by 6.2% over the period to 185,780 sq.ft (2009:
175,007 sq.ft). At 14 August 2010, total retail square footage was 186,605 sq.ft
(2009: 174,046 sq.ft), representing an increase of 7.2%. Retail sales per square
foot increased 5.4% from GBP314 to GBP331.
At 14 August 2010, we operated 33 stores (2009: 32), 154 concessions (2009: 122)
and 10 outlet stores (2009: 10).
Total UK wholesale sales were slightly down on the prior year at GBP14.9m (2009:
GBP15.3m) because the comparative period included sales from wholesale accounts
which have transferred to retail concessions. Underlying UK wholesale sales were
2.5% above the same period last year and in line with expectations.
US
Trading in the US improved against a difficult period last year, resulting in
sales from our US retail division increasing by 20.0% to $9.6m (2009: $8.0m),
which in sterling was equivalent to sales up 21.1% to GBP6.3m (2009: GBP5.2m).
During the period we opened stores in Phoenix and Santa Monica and consequently
now have 11 stores across the United States (2009: 8) and 2 outlet stores (2009:
2).
Average retail square footage rose 13.0% over the period to 32,006 sq.ft (2009:
28,318 sq.ft). At 14 August 2010 total retail square footage was up 18.4% on
last year at 35,477 sq.ft (2009: 29,953 sq.ft). Retail sales per square foot
rose 7.1% from GBP184 to GBP197.
As previously mentioned, the re-launch of our US wholesale business under our
own management has started well and we are encouraged by the positive reaction
received to date.
Middle East, Asia and Australasia
We continue to develop the Ted Baker brand across the Middle East, Asia and
Australasia. In April we opened a store in the Dubai Marina Mall, Dubai, through
our territorial licensee RSH Limited and are pleased with the performance at
this early stage. Our licence partner in Taiwan, Yun San Corporation, is also
making good progress.
At the start of the period we acquired two stores in Hong Kong from our former
partner in the territory, Li & Fung, although one of these stores was scheduled
to close in May. We are very pleased with the performance of these stores under
our management and, although one store has now closed, we are actively seeking
further opportunities in the territory. Consequently at 14 August 2010 we
operated one store in Hong Kong.
Both of our stores in Melbourne, Australia, which are operated through a joint
venture with our licence partner in that territory, continued to trade well
during the period.
Current Trading and Outlook
Retail
The improving trends seen in the first half of 2010 across both our UK and
overseas markets have continued into the first seven weeks of the second half of
the year.
In Europe we opened seven further concessions in Eire at the end of the period
and are encouraged by early trading. We have also recently opened ten
concessions across Italy with a leading department store group and plan to open
a further store in Paris early next year. We also plan to open a store in the
Trafford Centre, Manchester, early next year.
In the US we plan to open further stores in Chicago and New York later in the
year and will also be launching a US transactional website in October.
In Asia we have been pleased with the strong performance in Hong Kong during the
period and plan to open a further store in Hong Kong early next year. We
continue to explore further opportunities to expand in this region.
Wholesale
Trading in our UK wholesale business has been in line with expectations and we
anticipate that the trend seen in the first half of the year will continue for
the remainder of this year. In the US, our wholesale business continues to
perform well.
Licence Income
Our product and territorial licences continue to perform in line with
expectations. In the second half of the year we will be opening further stores
in Kuwait, Taiwan, Abu Dhabi and Sydney, Australia with our respective partners
in these territories.
Outlook
Whilst we have made a good start to the second half, the Group results for the
full year will, as always, be dependent on trading during the key Christmas
period and, at this stage, we remain cautious given the uncertain economic
environment. Our costs and commitments remain under control and, with our strong
balance sheet, we will continue to invest in the long term development of the
Ted Baker brand.
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.
Condensed Group Income Statement
For the 28 weeks ended 14 August 2010
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | Unaudited | | Unaudited | | Audited |
| | | 28 weeks | | 28 weeks | | |
| | | ended | | ended | | 52 |
| | Note | 14 August | | 15 August | | weeks |
| | | | | | | ended |
| | | 2010 | | 2009 | | 30 |
| | | | | | | January |
| | | | | | | 2010 |
| | | | | | | |
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Revenue | 2 | 88,128 | | 76,621 | | 163,586 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Cost | | (34,165) | | (31,057) | | (63,659) |
| of | | | | | | |
| sales | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Gross | 2 | 53,963 | | 45,564 | | 99,927 |
| profit | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Distribution | | (37,131) | | (32,044) | | (64,573) |
| costs | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Administrative | | | | | | |
| expenses | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| - | | (12,151) | | (9,597) | | (20,395) |
| Other | | | | | | |
| administrative | | | | | | |
| expenses | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| - | 3 | - | | - | | (750) |
| Impairment | | | | | | |
| losses | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Licence | | 2,971 | | 2,479 | | 5,493 |
| income | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Other | | (130) | | (50) | | 80 |
| operating | | | | | | |
| income / | | | | | | |
| (expense) | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Operating | 2 | 7,522 | | 6,352 | | 19,782 |
| profit | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Finance | 4 | 37 | | 3 | | 10 |
| income | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Finance | 4 | (107) | | (347) | | (374) |
| expenses | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Share | | 65 | | 23 | | 86 |
| of | | | | | | |
| profit | | | | | | |
| of | | | | | | |
| jointly | | | | | | |
| controlled | | | | | | |
| entity, | | | | | | |
| net of tax | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Profit | 2 | 7,517 | | 6,031 | | 19,504 |
| before | | | | | | |
| tax | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Income | 7 | (2,202) | | (1,749) | | (5,977) |
| tax | | | | | | |
| expense | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Profit | | 5,315 | | 4,282 | | 13,527 |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Attributable | | | | | | |
| to: | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| - | | 5,355 | | 4,315 | | 13,576 |
| Equity | | | | | | |
| shareholders | | | | | | |
| of the | | | | | | |
| parent | | | | | | |
| company | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| - | | (40) | | (33) | | (49) |
| Non-controlling | | | | | | |
| interest | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Profit | | 5,315 | | 4,282 | | 13,527 |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Earnings | 5 | | | | | |
| per | | | | | | |
| share | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Basic | | 12.9p | | 10.4p | | 32.6p |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Diluted | | 12.8p | | 10.4p | | 32.6p |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
Condensed Group Statement of Comprehensive Income
For the 28 weeks ended 14 August 2010
+-----------------+-----------+--------+-----------+--------+---------+
| | Unaudited | | Unaudited | | Audited |
| | 28 weeks | | 28 weeks | | |
| | ended | | ended | | 52 |
| | 14 August | | 15 August | | weeks |
| | | | | | ended |
| | 2010 | | 2009 | | 30 |
| | | | | | January |
| | | | | | 2010 |
| | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Profit | 5,315 | | 4,282 | | 13,527 |
| for | | | | | |
| the | | | | | |
| period | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Other | | | | | |
| comprehensive | | | | | |
| income | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Net | 228 | | (1,319) | | (1,334) |
| effective | | | | | |
| portion | | | | | |
| of | | | | | |
| changes | | | | | |
| in fair | | | | | |
| value of | | | | | |
| cash flow | | | | | |
| hedges | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Net | (292) | | (835) | | (391) |
| change | | | | | |
| in | | | | | |
| fair | | | | | |
| value | | | | | |
| of | | | | | |
| cash | | | | | |
| flow | | | | | |
| hedges | | | | | |
| transferred | | | | | |
| to profit | | | | | |
| or loss | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Exchange | 276 | | (1,237) | | (1,058) |
| rate | | | | | |
| movement | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Other | 212 | | (3,391) | | (2,783) |
| comprehensive | | | | | |
| income for | | | | | |
| the period, | | | | | |
| net of tax | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Total | 5,527 | | 891 | | 10,744 |
| comprehensive | | | | | |
| income for | | | | | |
| the period | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Total | | | | | |
| comprehensive | | | | | |
| income | | | | | |
| attributable | | | | | |
| to: | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| - | 5,567 | | 924 | | 10,793 |
| Owners | | | | | |
| of the | | | | | |
| parent | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| - | (40) | | (33) | | (49) |
| Non-controlling | | | | | |
| interest | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
| Total | 5,527 | | 891 | | 10,744 |
| comprehensive | | | | | |
| income for | | | | | |
| the period | | | | | |
+-----------------+-----------+--------+-----------+--------+---------+
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 14 August 2010
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | Cash | Translation | | Total | | |
| | | | flow | reserve | Retained | equity | Non-controlling | Total |
| | Share | Share | hedging | | earnings | attributable | interest | equity |
| | capital | premium | reserve | | | to equity | | |
| | | | | | | shareholders | | |
| | | | | | | of the | | |
| | | | | | | parent | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | (12) | 124 | 54,906 | 66,315 | (85) | 66,230 |
| at 30 | | | | | | | | |
| January | | | | | | | | |
| 2010 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Profit | - | - | - | - | 5,355 | 5,355 | (40) | 5,315 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Deferred | - | - | - | - | - | - | - | - |
| tax | | | | | | | | |
| associated | | | | | | | | |
| with | | | | | | | | |
| movement | | | | | | | | |
| in hedging | | | | | | | | |
| reserve | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Effective | - | - | 228 | - | - | 228 | - | 228 |
| portion | | | | | | | | |
| of | | | | | | | | |
| changes | | | | | | | | |
| in fair | | | | | | | | |
| value of | | | | | | | | |
| cash flow | | | | | | | | |
| hedges | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Net | - | - | (292) | - | - | (292) | - | (292) |
| change | | | | | | | | |
| in | | | | | | | | |
| fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| cash | | | | | | | | |
| flow | | | | | | | | |
| hedges | | | | | | | | |
| transferred | | | | | | | | |
| to profit | | | | | | | | |
| or loss | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Exchange | - | - | - | 276 | - | 276 | - | 276 |
| rate | | | | | | | | |
| movement | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | (64) | 276 | 5,355 | 5,567 | (40) | 5,527 |
| comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Transactions | | | | | | | | |
| with owners | | | | | | | | |
| recorded | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Share | - | - | - | - | 228 | 228 | - | 228 |
| options | | | | | | | | |
| / | | | | | | | | |
| awards | | | | | | | | |
| charge | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Movement | - | - | - | - | 7 | 7 | - | 7 |
| on | | | | | | | | |
| current | | | | | | | | |
| / | | | | | | | | |
| deferred | | | | | | | | |
| tax on | | | | | | | | |
| share | | | | | | | | |
| options | | | | | | | | |
| / awards | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Disposal | - | - | - | - | 19 | 19 | - | 19 |
| of own / | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Dividends | - | - | - | - | (4,953) | (4,953) | - | (4,953) |
| paid | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | - | - | (4,699) | (4,699) | - | (4,699) |
| transactions | | | | | | | | |
| with owners | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | (76) | 400 | 55,562 | 67,183 | (125) | 67,058 |
| at 14 | | | | | | | | |
| August | | | | | | | | |
| 2010 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 15 August 2009
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | Cash | Translation | | Total | | |
| | | | flow | reserve | Retained | equity | Non-controlling | Total |
| | Share | Share | hedging | | earnings | attributable | interest | equity |
| | capital | premium | reserve | | | to equity | | |
| | | | | | | shareholders | | |
| | | | | | | of the | | |
| | | | | | | parent | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | 1,713 | 1,182 | 48,010 | 62,202 | (36) | 62,166 |
| at 31 | | | | | | | | |
| January | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Profit | - | - | - | - | 4,315 | 4,315 | (33) | 4,282 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Deferred | - | - | (375) | - | - | (375) | - | (375) |
| tax | | | | | | | | |
| associated | | | | | | | | |
| with | | | | | | | | |
| movement | | | | | | | | |
| in hedging | | | | | | | | |
| reserve | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Effective | | | (944) | | | (944) | | (944) |
| portion | | | | | | | | |
| of | | | | | | | | |
| changes | | | | | | | | |
| in fair | | | | | | | | |
| value of | | | | | | | | |
| cash flow | | | | | | | | |
| hedges | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Net | - | - | (835) | - | - | (835) | - | (835) |
| change | | | | | | | | |
| in | | | | | | | | |
| fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| cash | | | | | | | | |
| flow | | | | | | | | |
| hedges | | | | | | | | |
| transferred | | | | | | | | |
| to profit | | | | | | | | |
| or loss | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Exchange | - | - | - | (1,237) | - | (1,237) | - | (1,237) |
| rate | | | | | | | | |
| movement | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | (2,154) | (1,237) | 4,315 | 924 | (33) | 891 |
| comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Transactions | | | | | | | | |
| with owners | | | | | | | | |
| recorded | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Share | - | - | - | - | 22 | 22 | - | 22 |
| options | | | | | | | | |
| / | | | | | | | | |
| awards | | | | | | | | |
| charge | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Movement | - | - | - | - | (1) | (1) | - | (1) |
| on | | | | | | | | |
| current | | | | | | | | |
| / | | | | | | | | |
| deferred | | | | | | | | |
| tax on | | | | | | | | |
| share | | | | | | | | |
| options | | | | | | | | |
| / awards | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Disposal | - | - | - | - | 43 | 43 | - | 43 |
| of own / | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Dividends | - | - | - | - | (4,743) | (4,743) | - | (4,743) |
| paid | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | - | - | (4,679) | (4,679) | - | (4,679) |
| transactions | | | | | | | | |
| with owners | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | (441) | (55) | 47,646 | 58,447 | (69) | 58,378 |
| at 15 | | | | | | | | |
| August | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
Condensed Group Statement of Changes in Equity - Audited
For the 52 weeks ended 30 January 2010
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | Cash | Translation | | Total | | |
| | | | flow | reserve | Retained | equity | Non-controlling | Total |
| | Share | Share | hedging | | earnings | attributable | interest | equity |
| | capital | premium | reserve | | | to equity | | |
| | | | | | | shareholders | | |
| | | | | | | of the | | |
| | | | | | | parent | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | 1,713 | 1,182 | 48,010 | 62,202 | (36) | 62,166 |
| at 31 | | | | | | | | |
| January | | | | | | | | |
| 2009 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Profit | - | - | - | - | 13,576 | 13,576 | (49) | 13,527 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Deferred | - | - | (375) | - | - | (375) | - | (375) |
| tax | | | | | | | | |
| associated | | | | | | | | |
| with | | | | | | | | |
| movement | | | | | | | | |
| in hedging | | | | | | | | |
| reserve | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Effective | - | - | (959) | - | - | (959) | - | (959) |
| portion | | | | | | | | |
| of | | | | | | | | |
| changes | | | | | | | | |
| in fair | | | | | | | | |
| value of | | | | | | | | |
| cash flow | | | | | | | | |
| hedges | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Net | - | - | (391) | - | - | (391) | - | (391) |
| change | | | | | | | | |
| in | | | | | | | | |
| fair | | | | | | | | |
| value | | | | | | | | |
| of | | | | | | | | |
| cash | | | | | | | | |
| flow | | | | | | | | |
| hedges | | | | | | | | |
| transferred | | | | | | | | |
| to profit | | | | | | | | |
| or loss | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Exchange | - | - | - | (1,058) | - | (1,058) | - | (1,058) |
| rate | | | | | | | | |
| movement | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | (1,725) | (1,058) | 13,576 | 10,793 | (49) | 10,744 |
| comprehensive | | | | | | | | |
| income for | | | | | | | | |
| the period | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Transactions | | | | | | | | |
| with owners | | | | | | | | |
| recorded | | | | | | | | |
| directly in | | | | | | | | |
| equity | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Share | - | - | - | - | 192 | 192 | - | 192 |
| options | | | | | | | | |
| / | | | | | | | | |
| awards | | | | | | | | |
| charge | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Movement | - | - | - | - | 13 | 13 | - | 13 |
| on | | | | | | | | |
| current | | | | | | | | |
| / | | | | | | | | |
| deferred | | | | | | | | |
| tax on | | | | | | | | |
| share | | | | | | | | |
| options | | | | | | | | |
| / awards | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Disposal | - | - | - | - | 43 | 43 | - | 43 |
| of own / | | | | | | | | |
| treasury | | | | | | | | |
| shares | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Dividends | - | - | - | - | (6,928) | (6,928) | - | (6,928) |
| paid | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Total | - | - | - | - | (6,680) | (6,680) | - | (6,680) |
| transactions | | | | | | | | |
| with owners | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
| Balance | 2,160 | 9,137 | (12) | 124 | 54,906 | 66,315 | (85) | 66,230 |
| at 30 | | | | | | | | |
| January | | | | | | | | |
| 2010 | | | | | | | | |
+---------------+---------+---------+---------+-------------+----------+--------------+-----------------+---------+
Condensed Group Balance Sheet
At 14 August 2010
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | Unaudited | | Unaudited | | Audited |
| | Note | 14 August | | 15 August | | 30 |
| | | 2010 | | 2009 | | January |
| | | | | | | 2010 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Non-current | | | | | | |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Intangible | | 601 | | 630 | | 634 |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Property, | | 26,707 | | 26,919 | | 25,508 |
| plant and | | | | | | |
| equipment | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Investments | | 237 | | 121 | | 171 |
| in equity | | | | | | |
| accounted | | | | | | |
| investee | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Deferred | | 1,648 | | 777 | | 1,598 |
| tax | | | | | | |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Prepayments | | 767 | | 866 | | 842 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | 29,960 | | 29,313 | | 28,753 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Current | | | | | | |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Inventories | | 40,117 | | 35,451 | | 33,450 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Trade | | 20,987 | | 18,180 | | 19,698 |
| and | | | | | | |
| other | | | | | | |
| receivables | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Amount | | 307 | | 117 | | 261 |
| due | | | | | | |
| from | | | | | | |
| equity | | | | | | |
| accounted | | | | | | |
| investee | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Derivative | | 343 | | 114 | | 280 |
| financial | | | | | | |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Cash | 9 | 8,905 | | 2,229 | | 13,698 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | 70,659 | | 56,091 | | 67,387 |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Current | | | | | | |
| liabilities | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Trade | | (29,525) | | (22,276) | | (24,779) |
| and | | | | | | |
| other | | | | | | |
| payables | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Bank | 9 | - | | (1,500) | | - |
| overdraft | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Income | | (2,183) | | (1,743) | | (3,511) |
| tax | | | | | | |
| payable | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Derivative | | (549) | | (555) | | (304) |
| financial | | | | | | |
| liabilities | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | (32,257) | | (26,074) | | (28,594) |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Non-current | | | | | | |
| liabilities | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Deferred | | (1,304) | | (952) | | (1,316) |
| tax | | | | | | |
| liabilities | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | (1,304) | | (952) | | (1,316) |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Net | | 67,058 | | 58,378 | | 66,230 |
| assets | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Equity | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Share | | 2,160 | | 2,160 | | 2,160 |
| capital | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Share | | 9,137 | | 9,137 | | 9,137 |
| premium | | | | | | |
| account | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Other | | (76) | | (441) | | (12) |
| reserves | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Translation | | 400 | | (55) | | 124 |
| reserve | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Retained | | 55,562 | | 47,646 | | 54,906 |
| earnings | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Total | | 67,183 | | 58,447 | | 66,315 |
| equity | | | | | | |
| attributable | | | | | | |
| to equity | | | | | | |
| shareholders | | | | | | |
| of the | | | | | | |
| parent | | | | | | |
| company | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Non-controlling | | (125) | | (69) | | (85) |
| interest | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| Total | | 67,058 | | 58,378 | | 66,230 |
| equity | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
| | | | | | | |
+-----------------+--------+-----------+--------+-----------+--------+----------+
Condensed Group Cash Flow Statement
For the 28 weeks ended 14 August 2010
+--------------+--------+-----------+--------+-----------+--------+---------+
| | Note | Unaudited | | Unaudited | | Audited |
| | | 28 weeks | | 28 weeks | | 52 |
| | | ended | | ended | | weeks |
| | | 14 August | | 15 August | | ended |
| | | | | | | 30 |
| | | 2010 | | 2009 | | January |
| | | | | | | 2010 |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Cash | | | | | | |
| generated | | | | | | |
| from | | | | | | |
| operations | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Profit | | 5,315 | | 4,282 | | 13,527 |
| for | | | | | | |
| the | | | | | | |
| period | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Adjusted | | | | | | |
| for: | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Income | | 2,202 | | 1,749 | | 5,977 |
| tax | | | | | | |
| expense | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Depreciation | | 3,384 | | 3,473 | | 6,295 |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Impairment | | - | | - | | 750 |
| losses | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Loss | | 178 | | 71 | | 110 |
| on | | | | | | |
| disposal | | | | | | |
| of | | | | | | |
| property, | | | | | | |
| plant & | | | | | | |
| equipment | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Share | | 228 | | 22 | | 192 |
| option | | | | | | |
| charge | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | 7 | | 88 | | 138 |
| finance | | | | | | |
| gains | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | 118 | | (1,779) | | 1,118 |
| change | | | | | | |
| in | | | | | | |
| derivative | | | | | | |
| financial | | | | | | |
| assets and | | | | | | |
| liabilities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Share | | (65) | | (23) | | (86) |
| of | | | | | | |
| profit | | | | | | |
| in | | | | | | |
| joint | | | | | | |
| venture | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Decrease | | 33 | | 34 | | 64 |
| in non | | | | | | |
| current | | | | | | |
| prepayments | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| (Increase) | | (6,580) | | 864 | | 3,026 |
| / decrease | | | | | | |
| in | | | | | | |
| inventories | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| (Increase) | | (1,238) | | 5,852 | | 1,649 |
| / decrease | | | | | | |
| in trade | | | | | | |
| and other | | | | | | |
| receivables | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Increase | | 4,668 | | (6,755) | | (4,908) |
| / | | | | | | |
| (decrease) | | | | | | |
| in trade | | | | | | |
| and other | | | | | | |
| payables | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Interest | | (42) | | (94) | | (157) |
| paid | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Income | | (3,425) | | (3,731) | | (6,602) |
| taxes | | | | | | |
| paid | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | 4,783 | | 4,053 | | 21,093 |
| cash | | | | | | |
| generated | | | | | | |
| from | | | | | | |
| operating | | | | | | |
| activities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Cash | | | | | | |
| flow | | | | | | |
| from | | | | | | |
| investing | | | | | | |
| activities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Purchases | | (4,790) | | (2,536) | | (4,538) |
| of | | | | | | |
| property, | | | | | | |
| plant & | | | | | | |
| equipment | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Proceeds | | 18 | | - | | - |
| from | | | | | | |
| sale of | | | | | | |
| property, | | | | | | |
| plant & | | | | | | |
| equipment | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Interest | | 33 | | 3 | | 8 |
| received | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | (4,739) | | (2,533) | | (4,530) |
| cash | | | | | | |
| from | | | | | | |
| investing | | | | | | |
| activities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Cash | | | | | | |
| flow | | | | | | |
| from | | | | | | |
| financing | | | | | | |
| activities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Proceeds | 10 | 19 | | 43 | | 43 |
| from | | | | | | |
| option | | | | | | |
| holders | | | | | | |
| for | | | | | | |
| exercise | | | | | | |
| of | | | | | | |
| options | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Dividends | 6 | (4,953) | | (4,743) | | (6,928) |
| paid | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | (4,934) | | (4,700) | | (6,885) |
| cash | | | | | | |
| from | | | | | | |
| financing | | | | | | |
| activities | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Net | | (4,890) | | (3,180) | | 9,678 |
| decrease | | | | | | |
| in cash | | | | | | |
| and cash | | | | | | |
| equivalents | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Cash | | 13,698 | | 4,660 | | 4,660 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
| at 30 | | | | | | |
| January | | | | | | |
| 2010 / 31 | | | | | | |
| January | | | | | | |
| 2009 | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Exchange | | 97 | | (751) | | (640) |
| rate | | | | | | |
| movement | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
| Cash | 9 | 8,905 | | 729 | | 13,698 |
| and | | | | | | |
| cash | | | | | | |
| equivalents | | | | | | |
| at 14 | | | | | | |
| August 2010 | | | | | | |
| / | | | | | | |
| 15 August | | | | | | |
| 2009 / 30 | | | | | | |
| January | | | | | | |
| 2010 | | | | | | |
+--------------+--------+-----------+--------+-----------+--------+---------+
Notes to the Condensed Interim Financial Statements
For the 28 weeks ended 14 August 2010
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 14 August 2010 comprise the Company and its
subsidiaries (together referred to as "the Group").
The Group financial statements as at and for the 52 weeks ended 30 January 2010
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.tedbaker.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 30 January
2010. These interim financial statements were approved by the Board of Directors
on 7 October 2010.
The comparative figures for the 52 weeks ended 30 January 2010 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 30 January 2010, approved
by the Board on the 25 March 2010, 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
2010. The impact of the economic environment in which the Group's businesses
operates 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
Except as noted below, these interim financial statements have been prepared
using the same accounting policies as used in the preparation of the Group's
financial statements for the 52 weeks ended 30 January 2010 and as discussed
therein.
Revised and amended standards and interpretations
The following adopted accounting standards and interpretations, issued by the
International Accounting Standards Board (IASB) or International Financial
Reporting, Interpretations Committee (IFRIC), have been adopted for the first
time by the Group in the current financial year with no significant impact on
its consolidated results or financial position:
· IFRS 3 (revised 2008), Business Combinations;
· Amendment to IAS 27, Consolidated and Separate Financial Statements;
· Amendment to IAS 39, Financial Instruments: Recognition and Measurement:
Eligible Hedged Items;
· Amendment to IAS 2, Share-based Payment: Group Cash-settled Share-based
Payment Transactions;
· Improvements to IFRS's 2009;
· IFRIC 17, Distributions of Non-cash Assets to Owners; and
· IFRIC 18, Transfers of Assets from Customers.
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.
The accounting policies of the reportable segments are the same as described in
note (s) on page 40 of the Group financial statements as at and for the 52 weeks
ended 30 January 2010. Information regarding the results of each reportable
segment is included below. 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.
Segment revenue and segment result
+----------------+----------+-----------+---------+----------+
| Unaudited | Retail | Wholesale | Licence | Total |
| - 28 | | | income | |
| weeks | | | | |
| ended 14 | | | | |
| August | | | | |
| 2010 | | | | |
+----------------+----------+-----------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Revenue | 71,886 | 16,242 | - | 88,128 |
+----------------+----------+-----------+---------+----------+
| Cost | (24,885) | (9,280) | - | (34,165) |
| of | | | | |
| sales | | | | |
+----------------+----------+-----------+---------+----------+
| Gross | 47,001 | 6,962 | - | 53,963 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | (36,585) | - | - | (36,585) |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | 10,416 | 6,962 | - | 17,378 |
| contribution | | | | |
+----------------+----------+-----------+---------+----------+
| Licence | - | - | 2,971 | 2,971 |
| income | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 10,416 | 6,962 | 2,971 | 20,349 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Reconciliation | | | | |
| of segment | | | | |
| result to | | | | |
| profit before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 10,416 | 6,962 | 2,971 | 20,349 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| Impairment | - | - | - | - |
| losses | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (12,697) |
| operating | | | | |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (130) |
| operating | | | | |
| income / | | | | |
| (expense) | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | | | | 7,522 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | (70) |
| finance | | | | |
| expense | | | | |
+----------------+----------+-----------+---------+----------+
| Share | | | | 65 |
| of | | | | |
| profit | | | | |
| of | | | | |
| jointly | | | | |
| controlled | | | | |
| entity, | | | | |
| net of tax | | | | |
+----------------+----------+-----------+---------+----------+
| Profit | | | | 7,517 |
| before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Capital | 3,103 | 219 | - | 3,322 |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 1,355 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 4,677 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Depreciation | 2,639 | 63 | - | 2,702 |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 682 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 3,384 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 76,735 | 18,592 | - | 95,327 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | 5,292 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 100,619 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | (24,531) | (5,543) | - | (30,074) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (3,487) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | (33,561) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | 67,058 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
Wholesale sales are shown after the elimination of inter-company sales of
GBP6,601,000 (15 August 2009: GBP3,623,000, 30 January 2010: GBP7,113,000).
+----------------+----------+-----------+---------+----------+
| Unaudited | Retail | Wholesale | Licence | Total |
| - 28 | | | income | |
| weeks | | | | |
| ended 15 | | | | |
| August | | | | |
| 2009 | | | | |
+----------------+----------+-----------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Revenue | 61,335 | 15,286 | - | 76,621 |
+----------------+----------+-----------+---------+----------+
| Cost | (22,130) | (8,927) | - | (31,057) |
| of | | | | |
| sales | | | | |
+----------------+----------+-----------+---------+----------+
| Gross | 39,205 | 6,359 | - | 45,564 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | (31,582) | - | - | (31,582) |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | 7,623 | 6,359 | - | 13,982 |
| contribution | | | | |
+----------------+----------+-----------+---------+----------+
| Licence | - | - | 2,479 | 2,479 |
| income | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 7,623 | 6,359 | 2,479 | 16,461 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Reconciliation | | | | |
| of segment | | | | |
| result to | | | | |
| profit before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 7,623 | 6,359 | 2,479 | 16,461 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| Impairment | - | - | - | - |
| losses | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (10,059) |
| operating | | | | |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (50) |
| operating | | | | |
| income / | | | | |
| (expense) | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | | | | 6,352 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | (344) |
| finance | | | | |
| expense | | | | |
+----------------+----------+-----------+---------+----------+
| Share | | | | 23 |
| of | | | | |
| profit | | | | |
| of | | | | |
| jointly | | | | |
| controlled | | | | |
| entity, | | | | |
| net of tax | | | | |
+----------------+----------+-----------+---------+----------+
| Profit | | | | 6,031 |
| before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Capital | 2,020 | 68 | - | 2,088 |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 376 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 2,464 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Depreciation | 2,739 | 56 | - | 2,795 |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 679 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 3,474 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 67,636 | 16,753 | - | 84,389 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | 1,015 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 85,404 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | (19,477) | (4,854) | - | (24,331) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (2,695) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | (27,026) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | 58,378 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
+----------------+----------+-----------+---------+----------+
| Audited | Retail | Wholesale | Licence | Total |
| - 52 | | | income | |
| weeks | | | | |
| ended | | | | |
| 30 | | | | |
| January | | | | |
| 2010 | | | | |
+----------------+----------+-----------+---------+----------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Revenue | 136,455 | 27,131 | - | 163,586 |
+----------------+----------+-----------+---------+----------+
| Cost | (47,884) | (15,775) | - | (63,659) |
| of | | | | |
| sales | | | | |
+----------------+----------+-----------+---------+----------+
| Gross | 88,571 | 11,356 | - | 99,927 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | (63,641) | - | - | (63,641) |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | 24,930 | 11,356 | - | 36,286 |
| contribution | | | | |
+----------------+----------+-----------+---------+----------+
| Licence | - | - | 5,493 | 5,493 |
| income | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 24,930 | 11,356 | 5,493 | 41,779 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Reconciliation | | | | |
| of segment | | | | |
| result to | | | | |
| profit before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 24,930 | 11,356 | 5,493 | 41,779 |
| result | | | | |
+----------------+----------+-----------+---------+----------+
| Impairment | (750) | - | - | (750) |
| losses | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (21,327) |
| operating | | | | |
| costs | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | 80 |
| operating | | | | |
| income / | | | | |
| (expense) | | | | |
+----------------+----------+-----------+---------+----------+
| Operating | | | | 19,782 |
| profit | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | (364) |
| finance | | | | |
| expense | | | | |
+----------------+----------+-----------+---------+----------+
| Share | | | | 86 |
| of | | | | |
| profit | | | | |
| of | | | | |
| jointly | | | | |
| controlled | | | | |
| entity, | | | | |
| net of tax | | | | |
+----------------+----------+-----------+---------+----------+
| Profit | | | | 19,504 |
| before | | | | |
| tax | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Capital | 3,844 | 134 | - | 3,978 |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 566 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 4,544 |
| capital | | | | |
| expenditure | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Depreciation | 4,958 | 102 | - | 5,060 |
+----------------+----------+-----------+---------+----------+
| Unallocated | | | | 1,235 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 6,295 |
| depreciation | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | 74,896 | 16,769 | - | 91,665 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | 4,475 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | 96,140 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Segment | (20,923) | (4,160) | - | (25,083) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Other | | | | (4,827) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| Total | | | | (29,910) |
| liabilities | | | | |
+----------------+----------+-----------+---------+----------+
| | | | | |
+----------------+----------+-----------+---------+----------+
| Net | | | | 66,230 |
| assets | | | | |
+----------------+----------+-----------+---------+----------+
3. Impairment losses
No impairment losses were recognised in the current period. Impairment losses of
GBP750,000 were recognised in the Group's consolidated financial statements for
the 52 weeks ended 30 January 2010, that related to cash-generating units 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.
Full details can be found in the Group's consolidated financial statements as at
and for the 52 weeks ended 30 January 2010.
4. Finance income and expenses
+------------+--------+-----------+--------+-----------+--------+---------+
| | | Unaudited | | Unaudited | | Audited |
| | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| | | 28 | | 28 | | 52 |
| | | weeks | | weeks | | weeks |
| | | ended | | ended | | ended |
| | | 14 | | 15 | | 30 |
| | | August | | August | | January |
| | | 2010 | | 2009 | | 2010 |
+------------+--------+-----------+--------+-----------+--------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| Finance | | | | | | |
| income | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| - | | 30 | | 3 | | 10 |
| Interest | | | | | | |
| receivable | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| - | | 7 | | - | | - |
| Foreign | | | | | | |
| exchange | | | | | | |
| gains | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| | | 37 | | 3 | | 10 |
+------------+--------+-----------+--------+-----------+--------+---------+
| Finance | | | | | | |
| expenses | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| - | | (37) | | (91) | | (148) |
| Interest | | | | | | |
| payable | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| - | | (70) | | (256) | | (226) |
| Foreign | | | | | | |
| exchange | | | | | | |
| losses | | | | | | |
+------------+--------+-----------+--------+-----------+--------+---------+
| | | (107) | | (347) | | (374) |
+------------+--------+-----------+--------+-----------+--------+---------+
5. Earnings per share
+-------------+--------+------------+--------+------------+--------+------------+
| | | Unaudited | | Unaudited | | Audited |
| | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| | | 28 | | 28 | | 52 |
| | | weeks | | weeks | | weeks |
| | | ended | | ended | | ended |
| | | 14 | | 15 | | 30 |
| | | August | | August | | January |
| | | 2010 | | 2009 | | 2010 |
+-------------+--------+------------+--------+------------+--------+------------+
| | | No. | | No. | | No. |
+-------------+--------+------------+--------+------------+--------+------------+
| Number | | | | | | |
| of | | | | | | |
| shares: | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Weighted | | 41,621,347 | | 41,613,798 | | 41,613,798 |
| number | | | | | | |
| of | | | | | | |
| ordinary | | | | | | |
| shares | | | | | | |
| outstanding | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Effect | | 255,150 | | 5,946 | | 10,183 |
| of | | | | | | |
| dilutive | | | | | | |
| options | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Weighted | | 41,876,497 | | 41,619,744 | | 41,623,981 |
| number | | | | | | |
| of | | | | | | |
| ordinary | | | | | | |
| shares | | | | | | |
| outstanding | | | | | | |
| - diluted | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Earnings: | | GBP'000 | | GBP'000 | | GBP'000 |
+-------------+--------+------------+--------+------------+--------+------------+
| Profit | | 5,355 | | 4,315 | | 13,576 |
| for | | | | | | |
| the | | | | | | |
| period, | | | | | | |
| basic | | | | | | |
| and | | | | | | |
| diluted | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Basic | | 12.9p | | 10.4p | | 32.6p |
| earnings | | | | | | |
| per | | | | | | |
| share | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
| Diluted | | 12.8p | | 10.4p | | 32.6p |
| earnings | | | | | | |
| per | | | | | | |
| share | | | | | | |
+-------------+--------+------------+--------+------------+--------+------------+
6. Dividends per share
+----------+--------+-----------+--------+-----------+--------+---------+
| | | Unaudited | | Unaudited | | Audited |
+----------+--------+-----------+--------+-----------+--------+---------+
| | | 28 | | 28 | | 52 |
| | | weeks | | weeks | | weeks |
| | | ended | | ended | | ended |
| | | 14 | | 15 | | 30 |
| | | August | | August | | January |
| | | 2010 | | 2009 | | 2010 |
+----------+--------+-----------+--------+-----------+--------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+----------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+----------+--------+-----------+--------+-----------+--------+---------+
| Final | | 208 | | 4,743 | | 4,743 |
| dividend | | | | | | |
| paid for | | | | | | |
| the | | | | | | |
| prior | | | | | | |
| year of | | | | | | |
| 0.5p per | | | | | | |
| ordinary | | | | | | |
| share | | | | | | |
| (2009: | | | | | | |
| 11.4p) | | | | | | |
+----------+--------+-----------+--------+-----------+--------+---------+
| Second | | 4,745 | | - | | - |
| interim | | | | | | |
| dividend | | | | | | |
| paid | | | | | | |
| 2010: | | | | | | |
| 11.4p | | | | | | |
| per | | | | | | |
| ordinary | | | | | | |
| share | | | | | | |
| (2009: | | | | | | |
| GBPNil) | | | | | | |
+----------+--------+-----------+--------+-----------+--------+---------+
| Interim | | - | | - | | 2,185 |
| dividend | | | | | | |
| paid | | | | | | |
| 2010: | | | | | | |
| GBPNil | | | | | | |
| (2009: | | | | | | |
| 5.25p) | | | | | | |
+----------+--------+-----------+--------+-----------+--------+---------+
| | | 4,953 | | 4,743 | | 6,928 |
+----------+--------+-----------+--------+-----------+--------+---------+
| | | | | | | |
+----------+--------+-----------+--------+-----------+--------+---------+
The Board has declared an interim dividend of 6.3p per share (2009: 5.25p)
payable on 26 November 2010 to shareholders on the register at the close of
business on 22 October 2010.
7. Income tax expense
The Group's effective tax rate in respect of continuing operations for the 28
weeks ended 14 August 2010 was 29.3% which is based on the full year forecast
effective rate (28 weeks ended 15 August 2009: 29.0%, 52 weeks ended 30 January
2010: 30.6%).
The factors affecting the tax charge for the Group remain broadly consistent
with the prior period. However, the reduction in the UK corporation tax rate
from 28% to 27% will be reflected in a corresponding reduction in future
effective tax rates for the Group. The impact of a reduction in the rate to 27%
on the underlying effective tax rate for the full-year is not expected to be
significant. The proposed future reduction in the UK corporation tax rate to 24%
will be reflected when the relevant legislation is substantively enacted.
8. Share based payments
Share options and Long Term Incentive Plans "LTIP" awards
Equity settled awards are granted to employees in the form of share options,
share awards or the award of units that can convert to nil-cost options.
Share options are granted at an option price equal to the Company share price at
the grant date, or at a discount of 20% in the case of SAYE share options. No
consideration is payable when share awards or nil-cost options vest. The vesting
period is generally between three and five years and the share options expire
between three and ten years after grant. Share options and awards will also
expire if the employee leaves the Group prior to the exercise or vesting date.
The terms and conditions of the grants made during the 28 weeks ended 14 August
2010 are as follows:
+--------+--------+--------+------------+---------+
| Grant | Type | Number | Vesting | Vesting |
| date | of | of | conditions | period |
| | award | shares | | |
+--------+--------+--------+------------+---------+
| | | | | |
+--------+--------+--------+------------+---------+
| 14 May | Share | 24,973 | None | 100% |
| 2010 | option | | | after |
| | | | | three |
| | | | | years |
+--------+--------+--------+------------+---------+
| 14 May | Share | 17,120 | None | 100% |
| 2010 | option | | | after |
| | | | | five |
| | | | | years |
+--------+--------+--------+------------+---------+
The basis of measuring fair value is consistent with that disclosed in the
consolidated financial statements for the 52 weeks ended 30 January 2010. The
range of inputs into the Black-Scholes model were as follows:
+------------+----------+
| | At 14 |
| | August |
| | 2010 |
+------------+----------+
| | |
+------------+----------+
| Share | 539.0p |
| price | |
+------------+----------+
| Exercise | 432.0p |
| price | |
+------------+----------+
| Risk | 1.49% |
| free | - 2.40% |
| interest | |
| rate | |
+------------+----------+
| Expected | 3 - 5 |
| life of | years |
| options | |
+------------+----------+
| Share | 26.40% |
| price | - 28.60% |
| volatility | |
+------------+----------+
| Dividend | 3.87% |
| yield | |
+------------+----------+
Value Creation Plan
The award of units is made under the Ted Baker 2009 Value Creation Plan ("2009
VCP"). Units have no value at grant, but subject to the satisfaction of earnings
per share, share price and total shareholder return performance targets can
convert and give participants the right to be granted nil-cost options at the
end of the performance.
No awards were made under the 2009 VCP in the 28 weeks ended 14 August 2010.
The charge to the income statement for 28 weeks ended 14 August 2010 for VCP
awards amounted to GBP208,527 (2009: GBPnil). Included in the charge for the
period is an amount in respect of R S Kelvin, who is employed by the Company,
amounting to GBP37,326 (2009: GBPnil).
9. Reconciliation of cash and cash equivalents per balance sheet to the cash
flow statement
+-------------+-----------+--------+-----------+--------+---------+
| | Unaudited | | Unaudited | | Audited |
| | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| | 28 | | 28 | | 52 |
| | weeks | | weeks | | weeks |
| | ended | | ended | | ended |
| | 14 | | 15 | | 30 |
| | August | | August | | January |
| | 2010 | | 2009 | | 2010 |
+-------------+-----------+--------+-----------+--------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 |
| | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| Cash | 8,905 | | 2,229 | | 13,698 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
| per balance | | | | | |
| sheet | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| Bank | - | | (1,500) | | - |
| overdraft | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| Cash | 8,905 | | 729 | | 13,698 |
| and | | | | | |
| cash | | | | | |
| equivalents | | | | | |
| per cash | | | | | |
| flow | | | | | |
| statement | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
| | | | | | |
+-------------+-----------+--------+-----------+--------+---------+
10. Treasury shares
The Company acquired nil treasury shares (2009: nil) and disposed of 5,308
treasury shares for proceeds of GBP19,162 (2009: 13,823 for proceeds of
GBP43,402) in the 28 weeks ended 14 August 2010.
11. Related Parties
The Company has a related party relationship with its directors and executive
officers.
Directors of the Company and their immediate relatives control 41% of the voting
shares of the Company.
At 14 August 2010, the main trading company owed the parent company
GBP19,174,000 (15 August 2009: GBP9,249,000, 30 January 2010: GBP24,108,000).
The main trading company was owed GBP15,321,000 (15 August 2009: GBP11,040,000,
30 January 2010: GBP11,869,000) from the other subsidiaries within the Group.
Transactions between subsidiaries and between the parent and subsidiaries were
priced on an arms length basis.
The Group has a 50% interest in a joint venture. As at 14 August 2010, the joint
venture owed GBP307,000 to the main trading company (15 August 2009: GBP117,000,
30 January 2010: GBP261,000). The value of sales made to the joint venture by
the Group was GBP223,000 in the period to 14 August 2010 (15 August 2009:
GBP115,000, 30 January 2010: GBP364,000).
12. Principal risks and uncertainties
The current unprecedented trading environment has affected, and will continue to
affect, all areas of our business. We also recognise that we will be affected by
the impact this will have on our customers, partners and suppliers.
The Board recognises there are a number of risks and uncertainties that face the
Group. The Board has established a structured approach to identify, assess and
manage these risks and this is regularly monitored and updated by the Risk
Committee. The principal risks and uncertainties are detailed in the Group's
consolidated financial statements as at and for the 52 weeks ended 30 January
2010, which have not changed since that report.
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 24 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 12 of the financial statements
as at, and for, the 52 weeks to 30 January 2010. On 15 June 2010 Anne Sheinfield
was appointed as an independent non-executive director of the company. There
have been no other changes to the directors since that report.
By order of the Board
R S Kelvin
L D Page
Chief Executive
Finance Director
7 October 2010
7 October 2010
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
0TB.
Cautionary statement regarding forward-looking statements
This announcement contains certain forward-looking statements. These
forward-looking statements include matters that are not historical facts or are
statements regarding the Company's intentions, beliefs or current expectations
concerning, among other things, the Company's results of operations, financial
condition, liquidity, prospects, growth, strategies, and the industries in which
the Company operates. Forward-looking statements are based on the information
available to the Directors at the time of preparation of this announcement, and
will not be updated during the year. The Directors can give no assurance that
these expectations will prove to have been correct. Due to inherent
uncertainties, including both economic and business risk factors underlying such
forward looking information, actual results may differ materially from those
expressed or implied by these forward-looking statements.
Independent Review Report on the Condensed Financial Statements to the members
of Ted Baker PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the interim financial statements for the 28 weeks ended 14 August
2010 which comprises the Condensed Group Income Statement, 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 financial statements 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 Services Authority
("the UK FSA"). 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 financial statements are the responsibility of, and have been
approved by, the directors. The directors are responsible for preparing the
interim financial statements in accordance with the DTR of the UK FSA.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with International Financial Reporting Standards as
adopted by the EU. The condensed set of financial statements included in these
interim financial statements have 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 financial statements 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 financial
statements for the 28 weeks ended 14 August 2010 is not prepared, in all
material respects, in accordance with IAS 34 as adopted by the EU and the DTR of
the UK FSA.
Mike Barradell
For and on behalf of KPMG Audit Plc
Chartered Accountants
15 Canada Square
London
E14 5GL
7 October 2010
This information is provided by RNS
The company news service from the London Stock Exchange
END
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