18th Mar 2008 07:02
Ted Baker PLC18 March 2008 Ted Baker PLC Preliminary Results for the 52 weeks ended 26 January 2008 Highlights • Strong international growth of the Ted Baker brand through multi-channel distribution strategy • Excellent performance from our retail division with sales up 15.5% • Launch of first standalone Womenswear store in Langley Court, Covent Garden • New retail stores opened in Dublin, Gatwick North, Brighton and Aventura Mall Florida • Further expansion in Middle East and Asia with 7 further licensed stores opened • Licence income up 32.5%, including first year of contribution from retail licence agreements • Opening of first store in Melbourne, Australia 2008 2007 Change Group Revenue £142.2m £125.6m + 13.2% Profit Before Tax £22.1m £20.1m + 10.0% Basic EPS 36.1p 33.9p + 6.5% Proposed Final Dividend 11.4p 10.3p +10.7%Cash Balance £13.1m £13.5m - 3.0% Commenting, Ray Kelvin, Founder and Chief Executive, said: "I am delighted to report yet another year of success for Ted Baker as wecontinue the careful international expansion of the brand. The reaction to our Spring Summer 2008 collection has been encouraging withretail sales ahead 16.1% on the same period last year. We believe that the strength of our brand and our robust business model mean weare well placed to navigate the current uncertain economic outlook. At thisearly stage, we look forward to another year of growth and development of theTed Baker brand." Enquiries: Ted Baker PLC Tel: 020 7796 4133 on 18 March 2008 onlyRay Kelvin, Chief Executive Tel: 020 7255 4800 thereafterLindsay Page, Finance Director Hudson Sandler Tel: 020 7796 4133Sandrine Gallien / Kate Hough CHAIRMAN'S STATEMENT I am delighted to report another successful year for Ted Baker. Through ourproven multi-channel distribution strategy we carefully continue to expand ourbusiness both in the UK and internationally. Our retail and licence divisions have once again delivered an excellentperformance with retail sales increasing by 15.5% and licence income increasingby 32.5%. Wholesale sales rose by 7.5%, which was ahead of our expectations and we havebeen pleased by growth in certain areas of our wholesale business. However,market conditions still provide challenges for some of our wholesale customersand we continue to monitor the profile of our wholesale customers to ensure itremains appropriate for our brand. I would like to take this opportunity to thank all the team at Ted Baker fortheir hard work, passion and dedication during the year. Results Group revenue increased by 13.2% to £142.2m (2007: £125.6m) for the 52 weeksended 26 January 2008. Operating profit increased by 10.4% to £22.1m (2007:£20.0m) and profit before tax increased by 10.0% to £22.1m (2007: £20.1m). Basicearnings per share increased by 6.5% to 36.1p per share (2007: 33.9p per share). Dividends The Board is pleased to recommend a final dividend of 11.4p per share (2007:10.3p per share) making a total for the year of 16.4p per share (2007: 14.6p pershare) an increase of 12.3% on the previous year. This reflects our moreprogressive dividend policy as previously announced. The final dividend will bepayable on 20 June 2008 to those shareholders on the register on 16 May 2008. Share Buy-back In line with market practice, the Company will seek to renew the authority fromshareholders to buy back up to 10% of the ordinary issued share capital of theCompany in the next twelve months. As the exercise of such authority could giverise to an obligation on the part of Ray Kelvin, Founder and Chief Executive ofthe Company, to make a mandatory offer under Rule 9 of The City Code onTakeovers and Mergers, such authority will also be conditional on the Panel onTakeovers and Mergers agreeing to grant a dispensation from that obligation.Further details of this will be sent out in a letter accompanying the Notice ofMeeting. Current Trading and Outlook The reaction to our Spring Summer 2008 collection has been encouraging withtotal retail sales ahead by 16.1% for the first seven weeks, compared with thesame period last year. Retail square footage was some 9.9% higher during thisperiod compared to last year. This performance has benefited from three storeswhich were closed for refurbishment last year being open for the seven weekperiod this year. We plan to open seven stores this year and expect retail square footage toincrease by some 30,000 square feet in total by the end of the year. New storelocations will include Heathrow Terminal 5, Cheapside in the City of London,Belfast, Cambridge, Bristol and White City, London. We will also open a store inSouth Molton Street, London featuring our Langley Court Womenswear collection. Wholesale sales were 21.6% below the same period last year for the first sevenweeks, in part due to the phasing of deliveries. We anticipate that conditionswill remain challenging for some of our wholesale customers and we will continueto take action in respect of those customers who are no longer appropriate forour brand. As a result, we expect wholesale sales for 2008 to be below the levelachieved for the period to 26 January 2008. We have made a satisfactory start to the year and consider that the strength ofour brand and our robust business model mean we are well placed to navigate thecurrent uncertain economic outlook. At this early stage, we look forward to another year of growth and developmentof the Ted Baker brand. Robert BreareNon-Executive Chairman BUSINESS REVIEW OUR BUSINESS Ted Baker is a leading designer brand that operates through three maindistribution channels: retail; wholesale; and licensing. We offer a wide rangeof collections including: Menswear; Womenswear; Global; Phormal; Endurance;Accessories; Lingerie and Underwear; Childrenswear; Fragrance and Skinwear;Footwear; Eyewear and Watches. The brand has grown steadily from its origins as a single shirt specialist storein Glasgow to the global business it is today. We distribute through our own andlicensed retail outlets, leading department stores and selected independents inEurope, the US and the Middle East and Asia. Our strategy is to become a leading global designer brand, based on three mainelements: • considered expansion of the Ted Baker collections. We review ourcollections continually to ensure we react to trends and meet our customersexpectations. In addition, we look for opportunities to extend the breadth ofcollections and enhance our offer; • controlled distribution through three main channels: retail;wholesale; and licensing. We consider each new opportunity to ensure it is rightfor the brand and will deliver margin led growth; and • carefully managed development of overseas markets. We continue tomanage growth in existing territories while considering new territories forexpansion. Underlying our strategy is an emphasis on design, product quality and attentionto detail, which is delivered by the passion, commitment and dedication of ourteams, licence partners and wholesale customers (trustees). GLOBAL GROUP PERFORMANCE Retail The retail division performed very strongly during the year with sales growth up15.5% to £103.0m (2007: £89.2m). Average retail square footage rose by 5.8% overthe period to 156,428 sq.ft. (2007: 147,861 sq.ft.). At 26 January 2008, totalretail square footage was 166,761 sq.ft. (2007: 152,937 sq.ft.), representing anincrease of 9.0%. As newer space and overseas stores continue to mature, retailsales per square foot increased by 9.1% from £603 to £658. Wholesale Wholesale sales for the year were 7.5% ahead of last year at £39.2m (2007:£36.5m), which exceeded our expectations. Whilst we have seen a reduction in wholesale sales to some traditional customersand the transfer of some wholesale accounts to retail concessions has continued,other areas of our wholesale business have performed well. Conditions remaindifficult for some of our wholesale customers and we have continued to takeaction in respect of those who are no longer appropriate for our brand. The reduction was offset by the growth in products supplied to our licencepartners, albeit at lower margins. Licence income Ted Baker operates two types of licences: territorial licences covering NorthAmerica, the Middle East, Asia, Australia and New Zealand; and product licencescovering perfume & fragrance, watches, footwear, eyewear, childrenswear,lingerie and branded mobile phones. Licence income for the year was up 32.5% to £5.3m (2007: £4.0m) including afirst full year from the retail licence agreements signed in 2006 with RSHLimited and Li and Fung Group of Companies. Our other territorial licences havecontinued to perform in line with our expectations. Good performances were delivered across our product licences with our perfumeand fragrance license delivering particularly strong growth. Product licence income for the period included a contribution from ourcollaboration with The Carphone Warehouse Group to launch two Ted Baker brandedmobile phones and a contribution from our new licensed childrenswear collectionexclusive to Debenhams called Baker by Ted Baker, which complements our wellestablished premium Childrenswear collection and we have been particularlypleased with progress to date. We also signed a global watch licence (excluding the UK) with the Advanced WatchCompany Limited which trades as the Geneva Watch Group ("Geneva"). Geneva willalso acquire the rights to the UK on expiry of our existing licence with ZeonLimited. Geneva is one of the largest designers, manufacturers and marketers ofwatches in the world and we are delighted with their commitment to develop theTed Baker watch business globally. The licence, which runs for an initial termof five years is subject to minimum guarantees and may be renewed for a furtherfive years subject to achieving certain sales targets. We would like to thank the team at Zeon for their hard work and dedication inestablishing the Ted Baker watch brand in the UK. Collections Ted Baker Menswear enjoyed good growth in the period with sales up 11.1% to£79.3m (2007: £71.4m). Menswear represented 55.8% of total sales (2007: 56.4%). Ted Baker Womenswear enjoyed excellent growth in the period with sales up 16.8%to £57.2m (2007: £48.9m). Womenswear represented 40.2% of total sales (2007:39.6%) reflecting the growing strength of our Womenswear collections. Sales of other collections, comprising Childrenswear and Footwear were up 7.4%at £5.7m (2007: £5.3m) and these collections represented 4.0% of our total sales(2007: 4.0%). GEOGRAPHIC PERFORMANCE United Kingdom and Europe Our UK and Europe retail division delivered a strong performance for the yearwith sales up 16.7% to £93.3m (2007: £80.0m). Average square footage rose by 4.6% over the period to 131,085 sq ft (2007:125,333 sq ft). At 26 January 2008, total retail square footage was 138,838 sqft (2007: 128,481 sq ft) representing an increase of 8.1%. Retail sales persquare foot increased from £638 to £712. During the year we were delighted to announce the opening of a new store inDublin on Grafton Street which has traded ahead of our expectations. We alsoopened stores in Brighton and Gatwick North and have been pleased by theirperformance to date. We were also delighted to announce the launch of our standalone store dedicatedpurely to Womenswear in Langley Court, Covent Garden. As well as our Womenswearcollections, the store houses an exclusive range of new premium, limited editionWomenswear products called the Langley Collection, as well as lingerie, footwearand accessories, showcasing the breadth and depth of our growing Womenswearcollection. We have been pleased with the performance of the store and willcontinue to assess opportunities to open further standalone Womenswear stores,as and when appropriate. At 26 January 2008 we operated 24 stores (2007: 21), 85 concessions (2007: 78)and 10 outlet stores (2007: 8). US Our US retail division has delivered a strong performance for the period. Salesincreased by 13.8% to $19.5m against $17.1m last year which in sterling wasequivalent to sales up 5.6% to £9.7m (2007: £9.2m). During the period we were delighted to announce the opening of a store inAventura Mall, Florida. We now have 8 stores across the United States and willcontinue to review suitable opportunities to further our presence here, as andwhen they arise. Average square footage rose by 9.9% over the period to 24,764 sq ft (2007:22,528 sq ft). At 26 January 2008, total retail square footage was 26,423 sq ft(2007: 24,456 sq ft). Retail sales per square foot increased from $760 to $787. Hartmarx Corporation, our US wholesale licencee, continues to make progress indeveloping our brand in North America. Middle East , Asia and Australasia We have continued with the careful expansion of the Ted Baker brand across theMiddle East and Asia through our territorial licence partners RSH Limited and Liand Fung Group of Companies. We work closely with them to ensure that thevisual merchandising of the stores and the training of the teams reflect the TedBaker ethos and culture. During the period we opened a further 7 stores through these licence partners,in Dubai, Malyasia (3), Taiwan, Singapore and Hong Kong and three concessions inTaiwan (2) and Thailand. At the year end the total number of stores andconcessions in these territories was 17. In October 2007 we were also pleased to announce the opening of our first storein Melbourne Australia, through a joint venture with our licence partner in theterritory and we have been pleased with its performance to date. FINANCIAL REVIEW Gross Margin Retail gross margins were in line with last year at 64.9% (2007: 65.0%). Thewholesale gross margin was down at 40.3% (2007: 42.9%), largely as a result ofincreased sales to our licence partners in the Middle East and Asia at lowerthan average margins. The composite gross margin was 58.1% (2007: 58.6%) mainlyreflecting the reduction in the wholesale margin. Operating Expenses Operating expenses rose by 14.0% to £66.2m (2007: £58.0m). Distribution costs,which include the costs of retail stores, outlets and concessions increased by16.7% to £48.3m (2007: £41.4m), which was above the 5.8% increase in averageretail selling space due to continued investment in our distribution centres,store refurbishments, higher turnover rents due to performance and above averageincreases in rates. Administration expenses increased by 7.2% to £17.8m (2007:£16.6m), reflecting the increased activity of our business and expansion in theUK, Middle East and Asia. Finance Income and Expenses The net interest payable during the year of £0.2m, against net interestreceivable in the prior year (2007: £0.1m), reflected the effect of purchase ofown shares and increased capital expenditure on cash resources. Taxation The tax charge for the year was £6.8m (2007: £5.6m), an effective tax rate of30.9% (2007: 28.1%). The effective rate was higher than last year as the 2007rate reflected a deferred tax adjustment on the recognition of tax losses inoverseas subsidiaries. Excluding this, our underlying effective rate in 2007 was30.9 %. Cash Flow and Working Capital We continued to focus on strong cash management and net cash generated fromoperations was £19.5m (2007: £13.9m), which reflected a small increase inworking capital requirements and lower tax payable during the year. Inventory levels increased by £1.5m or 5.4% which was below the growth of thebusiness during the year. Capital expenditure was £8.8m (2007: £4.9m) and largely comprised investment innew retail stores. Some £1.9m of capital expenditure related to stores that willopen in the early part of 2008. Shareholder Return Basic earnings per share increased by 6.5% to 36.1p per share (2007: 33.9p pershare), which is lower than the increase in profit before tax due to the effectof a higher tax charge in 2008. Excluding the impact of these, basic earningsper share would show an underlying increase of 10.7%. The proposed final dividend per share has increased by 10.7% from 10.3p to11.4p. Free cash flow per share, which is calculated using the net cashgenerated from operating activities and interest received, increased by 39.3%from 32.6p to 45.4p primarily reflecting the higher cash generated fromoperating activities. Group Income StatementFor the 52 weeks ended 26 January 2008 52 weeks ended 26 52 weeks ended 27 January January 2008 2007 Note £'000 £'000 Revenue 2 142,231 125,648Cost of sales (59,560) (51,986)Gross profit 82,671 73,662 Distribution costs (48,320) (41,404)Administrative expenses (17,844) (16,645)Other operating income 5,635 4,436 Operating profit 22,142 20,049Finance income 4 292 192Finance expenses 4 (387) (191)Share of profit of jointly controlled entity, net of tax 10 -Profit before tax 3 22,057 20,050Income tax expense (6,815) (5,634)Profit for the period 15,242 14,416 Attributable to:Equity shareholders of the parent company 15,196 14,421Minority interests 46 (5)Profit for the period 15,242 14,416 Earnings per shareBasic 5 36.1p 33.9pDiluted 5 35.9p 33.6p The Income Statement relates to continuing operations Group Statement of Changes in EquityFor the 52 weeks ended 26 January 2008 Share Share Available Cash flow Translation Retained Total equity Minority Total capital premium for sale hedging reserve earnings attributable interest equity reserve reserve to equity shareholders of the parent £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 27 January 2007(restated) 2,160 9,052 - (90) (493) 40,709 51,338 (57) 51,281 Share option charge - - - - - 234 234 - 234 Movement on current/deferred tax onshare options - - - - - (80) (80) - (80) Effective portion ofchanges in fair value of cashflow hedges - - - 590 - - 590 - 590 Net change in fair value ofcash flow hedges transferred toprofit or loss - - - (249) - - (249) - (249) Exchange rate movement - - - - (27) - (27) - (27) Income and expenserecogniseddirectly inequity - - - 341 (27) 154 468 - 468 Profit for the period - - - - - 15,196 15,196 46 15,242 Own shares acquired - - - - - (4,936) (4,936) - (4,936) Transfer of treasury sharesfrom PLC toEmployee BenefitTrust - 85 - - - - 85 - 85 Disposal of own / treasuryshares - - - - - (7) (7) - (7) Dividends paid - - - - - (6,421) (6,421) - (6,421) Balance at 26 January 2008 2,160 9,137 - 251 (520) 44,695 55,723 (11) 55,712 Group Statement of Changes in EquityFor the 52 weeks ended 27 January 2007 Restated Share Share Available Cash flow Translation Retained Total equity Minority Total capital premium* for sale hedging reserve earnings* attributable interest equity reserve reserve (Restated) to equity (Restated) shareholders of the parent £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 28 January 2006 2,149 6,983 176 (7) 12 32,911 42,224 (52) 42,172 Share option charge - - - - - 332 332 - 332 Movement on current/deferredtax on share options - - - - - (23) (23) - (23) Net change in fair value ofavailable forsale financialassets - - (176) - - - (176) - (176) Effective portion ofchanges in fairvalue of cashflow hedges - - - (78) - - (78) - (78) Net change in fair value ofcash flow hedgestransferred toprofit or loss - - - (5) - - (5) - (5) Exchange rate movement - - - - (505) - (505) - (505) Income and expenserecogniseddirectly inequity - - (176) (83) (505) 309 (455) - (455) Profit for the period - - - - - 14,421 14,421 (5) 14,416 Shares issued 11 1,045 - - - - 1,056 - 1,056 Own shares acquired(restated)* - - - - - (3,438) (3,438) - (3,438) Transfer of treasury sharesfrom PLC to Employee BenefitTrust (restated)* - 1,024 - - - - 1,024 - 1,024 Disposal of own / treasuryshares(restated)* - - - - - 1,841 1,841 - 1,841 Dividends paid - - - - - (5,335) (5,335) - (5,335) Balance at 27 January 2007(restated) 2,160 9,052 - (90) (493) 40,709 51,338 (57) 51,281 * For further details see note 8 Group Balance Sheet At 26 January 2008 Restated* 26 January 2008 27 January 2007 Note £'000 £'000Non-current assets Intangible assets 543 482Property, plant and equipment 23,061 19,209Investments in equity accounted investee 10 -Deferred tax assets 336 525Prepayments 849 - 24,799 20,216Current assets Inventories 29,315 27,825Trade and other receivables 14,128 11,843Amount due from equity accounted investee 178 -Derivative financial assets 603 216Cash and cash equivalents 7 13,105 13,513 57,329 53,397Current liabilities Trade and other payables* (21,777) (20,274)*Income tax payable* (3,418) (1,708)*Derivative financial liabilities (378) (307) (25,573) (22,289) Non-current liabilitiesDeferred tax liabilities (843) (43) (843) (43)Total liabilities (26,416) (22,332) Net assets 55,712 51,281 Equity Share capital 2,160 2,160Share premium account* 9,137 9,052*Other reserves 251 (90)Translation Reserve (520) (493)Retained earnings* 44,695 40,709*Total equity attributable to equity shareholders of the 55,723 51,338parent companyMinority interests (11) (57)Total equity 55,712 51,281 * For further details see note 8. These reclassifications did not result in achange in shareholders funds or net assets at 27 January 2007. Group Cash Flow StatementFor the 52 weeks ended 26 January 2008 Restated* 52 weeks ended 26 52 weeks ended 28 January January 2008 2007 Note £'000 £'000 Profit for the period 15,242 14,416Adjusted for:Income tax expense 6,815 5,634Depreciation 4,807 3,981Loss on disposal of property, plant & equipment 184 63Share option charge 234 332Net finance gains / (losses) 217 (125)Net change in cash flow hedges 341 (83)Share of profit in joint venture (10) -Increase in inventories (1,449) (4,714)Increase in non-current prepayments (789) -(Increase) / decrease in trade and other receivables (3,050) 903Increase / (decrease) in trade and other payables 1,324 (554)Interest paid (344) (64)Income taxes paid (4,068) (5,873)Net cash generated from operating activities 19,454 13,916 Cash flow from investing activities Purchases of property, plant & equipment (8,709) (4,970)Proceeds from sale of property, plant & equipment - 26Interest received 171 164Net cash from investing activities (8,538) (4,780) Cash flow from financing activities Own shares acquired (4,936) (3,438)Proceeds from option holders for exercise of options* 78 3,921*Loan repayment - (750)Dividends paid (6,421) (5,335)Net cash from financing activities (11,279) (5,602) Net increase in cash and cash equivalents (363) 3,534 Cash and cash equivalents at 27 January 2007 / 28 January 13,513 10,818*2006*Exchange rate movement (45) (839)Cash and cash equivalents at 26 January 2008 / 27 January 7 13,105 13,5132007 * For further details see note 8. These restatements did not result in a changein the 'net cash movement' for the period disclosed in the cash flow statementof 27 January 2007. Notes 1) Basis of preparation EU law (IAS Regulation EC 1606/2002) requires that the Group financialstatements of the Group, for the 52 weeks ended 26 January 2008, are prepared inaccordance with International Financial Reporting Standards (IFRSs) adopted foruse in the EU ("adopted IFRSs"). This financial information has been prepared on the basis of the recognition andmeasurement requirements of adopted IFRSs as at 26 January 2008. The financial information set out above does not constitute the Group'sstatutory accounts for the 52 weeks ended 26 January 2008 or 27 January 2007.The annual financial information presented in this preliminary announcement forthe 52 weeks ended 26 January 2008 is based on, and is consistent with, that inthe Group's audited financial statements for the 52 weeks ended 26 January 2008,and those financial statements will be delivered in due course. The auditor'sreport on those financial statements is unqualified and does not contain anystatement under Section 237 of the Companies Act 1985. Statutory accounts for 2006 have been delivered to the registrar of companies.The auditors have reported on those accounts; their reports were i) unqualifiedand, ii) did not contain statements under section 237 (2) or (3) of theCompanies Act 1985. 2) Segment information The revenue and profit before taxation are attributable to the Group's principalactivities, the design and contracted manufacture of high quality fashionclothing and related accessories for wholesale and retail customers. a) Analysis of revenue by brand 52 weeks ended 26 52 weeks ended 27 January January 2008 2007 £'000 £'000 Menswear 79,312 71,359Womenswear 57,181 48,947Other 5,738 5,342 142,231 125,648 b) Primary reporting format - divisional segments 52 weeks ended 26 January 2008 Retail Wholesale Total £'000 £'000 £'000 Revenue 103,036 39,195 142,231Cost of sales (36,168) (23,392) (59,560)Gross profit 66,868 15,803 82,671Operating costs (55,841) (10,323) (66,164)Operating profit before other operating income 11,027 5,480 16,507Other operating income 5,635Operating profit 22,142Operating profit attributable to joint venture 10Net finance income (95)Profit before taxation 22,057Income tax expense (6,815)Profit for the period 15,242 Segment Assets 60,581 21,023 81,604Investment in Equity Accounted investee 10Amounts due from Equity Accounted investee 178Deferred tax assets 336Total assets 82,128 Segment Liabilities (16,050) (6,105) (22,155)Deferred tax liabilities and income tax payable (4,261)Total liabilities (26,416)Net Assets 55,712 Capital expenditure 8,375 460 8,835Depreciation 4,579 228 4,807 Restated* Restated*52 weeks ended 27 January 2007 Retail Wholesale Total £'000 £'000 £'000 Revenue 89,187 36,461 125,648Cost of sales (31,173) (20,813) (51,986)Gross profit 58,014 15,648 73,662Operating costs (48,054) (9,995) (58,049)Operating profit before other operating income 9,960 5,653 15,613Other operating income 4,436Operating profit 20,049Net finance expenses 1Profit before taxation 20,050Income tax expense (5,634)Profit for the period 14,416 Segment assets* 52,722* 20,366* 73,088Deferred tax assets* 525*Total assets 73,613 Segment liabilities* (14,609)* (5,972)* (20,581)Deferred tax liabilities and income tax payable* (1,751)*Total liabilities (22,332) Net Assets 51,281 Capital expenditure 4,603 318 4,921Depreciation 3,724 257 3,981 Wholesale sales are shown after the elimination of inter-company sales of£4,855,000 (2007: £2,801,000). * In accordance with IAS14, "segmental reporting", segmental assets andliabilities do not include current and deferred tax balances. Prior yearbalances have been restated accordingly. c) Secondary reporting format - geographical segments by origin 52 weeks ended 26 January 2008 United Kingdom Other Total £'000 £'000 £'000 Revenue 127,901 14,330 142,231Cost of sales (53,638) (5,922) (59,560)Gross profit 74,263 8,408 82,671Operating costs (58,558) (7,606) (66,164)Operating profit before other operating income 15,705 802 16,507Other operating income 5,635Operating profit 22,142Net finance income (95)Operating profit attributable to joint venture 10Profit before taxation 22,057 Income tax expense (6,815)Profit for the period 15,242 Segment Assets 67,553 14,051 81,604Investment in Equity Accounted investee 10Amounts due from Equity Accounted investee 178Deferred tax assets 336Total assets 82,128 Segment Liabilities (20,335) (1,820) (22,155)Deferred tax liabilities and income tax payable (4,261)Total liabilities (26,416)Net Assets 55,712 Capital expenditure 6,589 2,246 8,835Depreciation 4,083 724 4,807 52 weeks ended 27 January 2007 Restated* Restated* United Kingdom Other Total £'000 £'000 £'000 Revenue 114,293 11,355 125,648Cost of sales (47,387) (4,599) (51,986)Gross profit 66,906 6,756 73,662Operating costs (51,436) (6,613) (58,049)Operating profit before other operating income 15,470 143 15,613Other operating income 4,436Operating profit 20,049Net finance expenses 1Profit before taxation 20,050Income tax expense (5,634)Profit for the period 14,416 Segment assets* 62,284* 10,804* 73,088Deferred tax assets* 525*Total assets 73,613 Segment liabilities* (19,509)* (1,072)* (20,581)Deferred tax liabilities and income tax payable* (1,751)*Total liabilities (22,332) Net Assets 51,281 Capital expenditure 4,019 902 4,921Depreciation 3,285 696 3,981 * In accordance with IAS14, "segmental reporting", segmental assets andliabilities do not include current and deferred tax balances. Prior yearbalances have been restated accordingly. United Kingdom sales are shown after the elimination of inter-company sales of£4,855,000 (2007: £2,801,000). Other includes sales arising mainly in the United States. Revenue by destinationis not materially different from revenue by geographic origin. 3) Profit before taxation 52 weeks ended 26 52 weeks ended 27 January January 2008 2007Profit before taxation is stated after charging: £'000 £'000 Depreciation 4,807 3,981Operating lease rentals 10,132 9,238Fees payable to the company's auditor for the audit of the company's annual 6 6accountsFees payable to the company's auditor for the audit of the company's 67 48subsidiaries, pursuant to legislationFees payable to the company's auditor for other services supplied pursuant to 17 16legislationOther services provided 1 35Loss on disposal of property, plant & equipment 184 63 4) Finance income and expenses 52 weeks ended 26 52 weeks ended 27 January January 2008 2007 £'000 £'000Finance income - Interest receivable 170 192- Net foreign exchange transaction gains 122 - 292 192Finance expenses - Interest payable (387) (67)- Net foreign exchange transaction losses - (124) (387) (191) 5) Earnings per share 52 weeks ended 26 52 weeks ended 27 January January 2008 2007 No. No.Number of shares:Weighted number of ordinary shares outstanding 42,066,481 42,594,516Effect of dilutive options 254,711 320,881Weighted number of ordinary shares outstanding - diluted 42,321,192 42,915,397 Earnings:Profit for the period basic and diluted - £'000 15,196 14,421 Basic earnings per share 36.1p 33.9pDiluted earnings per share 35.9p 33.6p Own shares held by the Ted Baker Group Employee Benefit Trust, the Ted Baker1998 Employee Benefit Trust and treasury shares have been eliminated from theweighted average number of ordinary shares. The options exercised during theyear and long-term incentive scheme awards distributed were of shares held bythe Trusts. Diluted earnings per share have been calculated using additional ordinary sharesof 5p each available under the 1997 Unapproved Share Option Scheme, the 1997Executive Share Option Scheme and the Ted Baker Performance Share Plan. There were no share related events after the balance sheet date that may affectearnings per share. 6) Dividends per share 52 weeks ended 52 weeks ended 27 26 January 2008 January 2007 £'000 £'000 Final dividend paid for prior year of 10.3p per ordinary share (2006: 8.2p) 4,322 3,501Interim dividend paid of 5.0p per ordinary share (2007: 4.3p) 2,099 1,834 6,421 5,335 A final dividend in respect of 2008 of 11.4p per share, amounting to £4,784,244is to be proposed at the Annual General Meeting on 10 June 2008. 7) Reconciliation of cash and cash equivalents per balance sheet to cashflow statement 52 weeks ended 52 weeks ended 27 26 January January 2008 2007 £'000 £'000 Cash and cash equivalents per balance sheet / cash flow statement 13,105 13,513 8) Prior year restatements Group statement of changes in equity The following presentational changes have been made within the 2008 Groupstatement of changes in equity, 2007 comparatives have been restatedaccordingly. Amounts previously shown as 'movements in respect of treasuryshares', 'movements in respect of own shares' and 'disposal of own shares' havebeen reclassified under the following 3 lines: • Own shares acquired, • Transfer of treasury shares from Ted Baker PLC to the Employee Benefit Trust ("EBT") and; • Disposal of own shares Section 162F of the Companies Act 1985 requires amounts received for treasuryshares that are in excess of the cost to be recognised as share premium.Although the amounts received by the group on the sale of these shares insatisfaction of share options exercised in the year ended 27 January 2007 wereless than the original cost of the treasury shares, the transfer of sharesbetween Ted Baker Plc and the Employee Benefit Trust was at an amount greaterthan the original cost and therefore resulted in share premium arising. Anamount of £1,024,000 has therefore been reclassified from retained earings toshare premium. These reclassifications did not result in a change in shareholders funds at 27January 2007. Group balance sheet The presentation of the Group balance sheet within the 2007/2008 financialstatements is consistent with the one presented in the 2006/2007 financialstatements except where noted below. Prior year comparatives have been restatedaccordingly: • An amount of £3,560,000 in respect of 'other taxes and socialsecurity' has been reclassified from 'income tax payable' to 'trade and otherpayables' for the year ended 27 January 2007 in accordance with IAS 1. • An amount of £1,024,000 has been reclassified from 'retained earnings'to 'share premium account' for the year ended 27 January 2007 as explainedabove. These reclassifications did not result in a change to either net assets orshareholders funds at 27 January 2007. Group cash flow statement The presentation of the Group cash flow statement within the 2007/2008 financialstatements is consistent with the one presented in th 2006/2007 financialstatements except where noted below. Prior year comparatives have been restatedaccordingly: • Amounts previously shown as 'proceeds from issue of ordinary shares' 'sale of own shares', 'shares vested and disposal of own shares' have beenreclassified as 'proceeds from option holders for exercise of options' and 'increase in inter-company balances' in accordance is IAS 7. • An amount of £750,000 previously separately presented as 'loanrepayment' in the movement of cash and cash equivalents between the year ended28 January 2006 and 27 January 2007 has now been aggregated with the broughtforward balance as this amount was the opening balance of long term borrowingsat 27 January 2007 and was incorrectly netted off against cash and cashequivalents. The restatements above did not result in a change in the "net cash movement" forthe period as disclosed in the cash flow statement of 27 January 2007. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TED.L