20th Mar 2014 09:01
LONDON (Alliance News) - British clothing and accessories retailer Ted Baker PLC Thursday declared a 27% increase in its dividend and reported impressive profit and revenue growth in its recent financial year, driven by a successful online business and strong growth in the UK and overseas.
The retailer reported a 35% increase in its pretax profit and a 26% increase in revenues for the 52 weeks ended January 25, all down to strong trading in the UK, international expansion, and its online business.
Signalling its confidence, it increased its total dividend to 33.7 pence, up from 26.6 pence a year earlier.
For the financial year just ended, said its pretax profit rose to GBP38.9 million, compared with GBP28.9 million a year earlier, after a strong performance right across the business, with revenues increasing to GBP321.9 million, up from GBP254.5 million a year earlier.
During the year Ted Baker said it booked GBP1 million in exceptional costs, smaller than the GBP2.6 million it booked the prior year, including impairment charges in respect of some retail assets and an onerous lease on a store where it is no longer trading.
It said its retail division performed well in a competitive trading environment, delivering an increase in revenue of 25% to GBP259.1 million, up from GBP208.0 million, boosted by a 11% increase in retail space. Gross margin for the division was flat.
Wholesale sales for the group increased by 35% to GBP62.8 million, up from GBP46.5 million a year earlier, boosted by a strong performance from its UK wholesale business, which includes the supply of goods to its licensed stores and export business, and a good performance from its US wholesale business.
"UK/Europe and wholesale were the star performers, but all parts of the business have seen strong growth," said retail analysts at Liberum Capital of Ted Baker's results.
The fashion retailer said its retail business has started the new financial year well, and has seen a good response from its Spring/Summer collections.
"We continue to develop our UK business with store openings planned in Glasgow and London Heathrow Terminal Two and the relocation of our outlet store in York," it said.
The company also said that following the successful launch of its new e-commerce platform, it will continue to develop its e-commerce site to provide more local content to its European customers, including language options specific to key countries.
Ted Baker shares initially opened lower Thursday morning, but have since recovered, still trading 0.1% lower at 2,202.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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