Interim results

Ted Baker Plc

("Ted Baker", the "Group")

Interim Results Announcement for the 28 weeks ended 9 August 2014

'Continued strong performance across all channels'

*Adjusted EPS is shown before exceptional items (net of tax)

· Retail sales including e-commerce up 14.8% to £140.0m on a 9.9% increase in average square footage

· UK and European retail sales up 15.1% to £105.4m

· US and Canada retail sales up 13.8% to £28.9m

· Asia retail sales up 16.0% to £5.8m

· E-commerce sales up 48.9% to £14.0m

· Planned expansion continued with:

· Two new stores in the UK, and a new store and outlet in France

· A new store and outlet in the US

· Further concessions with leading department stores across the US, Europe and Asia

· Licensee store openings in Dubai, Egypt, Saudi Arabia and Australia

· Wholesale sales up 26.8% to £42.1m

· Licence income up 37.1% to £5.5m

Commenting, Ray Kelvin CBE, Founder and Chief Executive, said:

"Ted Baker has continued to deliver a strong performance across its global markets and distribution channels during the first half of the year. We have successfully opened new space in our international markets, with further planned for the second half of the year in line with our strategy to focus on expansion opportunities that are appropriate for our brand.

The strength of our brand is testament to the passion and dedication of our team and has enabled us to attract customers both in the UK and overseas who recognise our unwavering focus on quality, design and attention to detail. Whilst our results for the full year will be dependent on the more weighted second half, we continue to look forward with confidence as we further develop Ted Baker as a leading global lifestyle brand."

www.tedbaker.com

www.tedbakerPlc.com

Media images available for download at:

http://www.tedbakerPlc.com/ted/en/mediacentre/imagelibrary

Notes to Editors

Ted Baker Plc - "No Ordinary Designer Label"

Ted Baker is a leading global lifestyle brand distributing across five continents through its three main distribution channels: retail (including e-commerce), wholesale and licensing.

Ted Baker has 381 stores and concessions worldwide, comprising of 183 in the UK, 77 in Europe, 67 in the US and Canada, 47 in the Middle East and Asia and 7 in Australasia.

Ted Baker offers a wide range of collections including: Menswear; Womenswear; Global; Phormal; Endurance; Born by Ted Baker; Accessories; Lingerie and Sleepwear; Childrenswear; Fragrance and Skinwear; Footwear; Neckwear; Eyewear; Watches; Jewellery; and Audio, all of which are underpinned by an unwavering emphasis on design, product quality and attention to detail.

Development of the brand

Our strategy is to develop as a leading global lifestyle brand, based on three main elements:

· considered expansion of our collections. We review our collections continually to ensure we react to trends and meet our customers' expectations. In addition, we look for opportunities to extend the breadth of collections and enhance our offer;

· controlled distribution through three main channels: retail (including e-commerce); wholesale, and licensing. We consider each new opportunity to ensure it is right for the brand and will deliver margin led growth; and

· carefully managed development of existing and new international markets. We continue to manage growth in existing territories while considering new territories for expansion.

Underlying our strategy is an emphasis on design, product quality and attention to detail, which is delivered by the passion, commitment and dedication of our teams, licence partners and wholesale customers.

Chairman's Statement

I am pleased to announce a strong performance in the first half of the year, during which the Ted Baker brand has continued to develop across territories and distribution channels. This has resulted in a 17.4% increase in Group revenue to £182.2m and a 33.8% improvement in profit before tax to £15.6m. Profit before tax and exceptional items increased 24.2% to £14.4m.

The retail division performed well, with sales up 14.8% (18.0% in constant currency) on a 9.9% increase in average retail square footage. Performance was strong across all established territories and we continue to invest in our newer markets for the long term development of the brand. During the first half of the year, we have continued our expansion with openings across all territories. We successfully migrated our US e-commerce site onto our new platform in July, following the launch of the UK site last year, and we are pleased with performance at this early stage.

Wholesale sales increased 26.8% to £42.1m (29.1% in constant currency), which reflects a very good performance from our UK wholesale business, which includes the supply of goods to our licensed stores and our export business, and a strong performance from our US wholesale business.

Licence income increased by 37.1% to £5.5m as both our product and territorial licences continued to perform well. During the period our licence partners opened stores in Dubai, Egypt and Saudi Arabia and our joint venture partner in Australasia opened two new stores.

We continue to invest in our infrastructure and people and are working closely with Microsoft on the implementation of Microsoft Dynamics AX business systems globally across the Group to support our long term growth strategy. We are pleased with our progress to date and remain on course to commence the roll out early next year.We are confident of the opportunities that these systems will create to improve the efficiency of our business.

Financial Results

Group revenue increased by 17.4% to £182.2m (2013: £155.2m) for the 28 weeks ended 9 August 2014 (the "period"). The composite gross margin fell to 58.5% (2013: 59.7%), partly a result of a change in sales mix between wholesale and retail sales and partly due to a slight decrease in the retail and wholesale margins.

Operating expenses increased in line with expectations by 15.6% in the period to £97.2m (2013: £84.1m), which is reflective of our investment in people and infrastructure to support our long term growth. Distribution costs, which largely comprise the cost of retail stores, outlets and concessions increased by 13.2% to £70.2m (2013: £62.0m) and as a percentage of retail sales decreased to 50.2% (2013: 50.9%).

Administrative expenses including the performance related bonus provision increased by 21.5% to £26.6m (2013: £21.9m) due to the growth of our central operations and the continued investment in our information technology infrastructure to support our international expansion. Excluding the employee performance related bonus provision of £1.4m (2013: £0.9m), administrative expenses increased by 20.0% to £25.2m (2013: 21.0m).

Exceptional costs in the period of £2.6m (2013: £nil) relate to a legal dispute with a previous insurer, details of which have been previously disclosed. We are required by accounting standards to recognise a provision for our legal and professional costs incurred in respect of the case so far, the judgment of which is due in the second half of the current financial year.

Exceptional income in the period of £3.7m (2013: £nil) relates to the early termination of a licence partner agreement. As previously communicated, in February 2014, we came to a mutual agreement with one of our licence partners to terminate our licence agreement earlier than anticipated due to a variation in that licence partner's long-term strategy. We received a payment of £3.7m for compensation of royalties that would be due to us had the agreement continued to its original completion date.

Profit before tax and exceptional items increased by 24.2% to £14.4m (2013: £11.6m) and profit before tax increased by 33.8% to £15.6m (2013: £11.6m). Adjusted basic earnings per share excluding exceptional items increased by 19.8% to 24.2p (2013: 20.2p) whilst basic earnings per share increased by 29.2% to 26.1p (2013: 20.2p).

Net interest payable during the period was £0.6m (2013: £0.5m). This increase reflects higher Group borrowing compared to the prior period due to increased capital expenditure and working capital. The net foreign exchange loss during the period of £0.1m (2013: loss of £0.6m) was due to the retranslation of monetary assets and liabilities denominated in foreign currencies.

The effective tax rate of 26.6% (2013 full year effective rate: 25.9%) is higher than the UK corporation tax rate. Whilst benefiting from the reduction in the UK corporation tax rate, this has been more than offset by higher overseas tax rates and the non-recognition of losses in some overseas territories during their development phase.

The net decrease in cash and cash equivalents of £23.8m (2013: £19.3m) primarily reflected an increase in working capital and further capital expenditure to support our long term development.

Total working capital, which comprises inventories, trade and other receivables and trade and other payables, increased by £12.4m to £87.7m (2013: £75.3m). This was mainly driven by an increase in inventories of £16.1m to £91.9m (2013: £75.8m) reflecting the growth of our business, stock on hand for our wholesale customers and licence partners and some earlier phasing of stock deliveries between the first and second half of the year.

Capital expenditure of £13.8m (2013: £8.1m) reflected the opening and refurbishment of stores and concessions in both new and existing markets. It also reflected our continued investment in Microsoft Dynamics AX systems across the business to support our growth, and we are on course to commence roll out early next year. We expect full year capital expenditure to be in line with previous guidance of £25m, subject to the timing of planned openings in the early stages of next year.

Borrowing Facilities

During the period, the Group was in discussions with the Royal Bank of Scotland and Barclays to arrange the renewal of its multi-currency revolving credit facility, due to expire on 1 March 2015. A new agreement was signed on 29 September 2014, increasing the Group's committed borrowing facility from £50m to £65m for the 3.5 years to March 2018. The new borrowing is on similar terms and contains similar covenants to the previous facility.

Dividends

The Board has declared an interim dividend of 11.3p (2013: 9.5p), representing an increase of 18.9%, which will be payable on 21 November 2014 to shareholders on the register at the close of business on 17 October 2014.

People

I would like to take this opportunity to thank all of my colleagues across the world for their continued hard work. This strong performance is testament to our talented teams, whose commitment and passion is key to our success as we continue to grow the business and develop Ted Baker as a global lifestyle brand.

Global Group Performance

Retail

We operate stores and concessions across the UK, Europe, the US, Canada and Asia and an e-commerce business based in the UK, primarily serving the UK and Europe, with a separate US site dedicated to the Americas. We also have e-commerce business with some of our concession partners.

Retail sales, including e-commerce, were up 14.8% to £140.0m (2013: £122.0m) (18.0% in constant currency) with average retail square footage increasing by 9.9% to 326,403 sq.ft (2013: 297,011 sq.ft). Retail sales per square foot increased 1.8% to £386 (2013: £379) (5.3% in constant currency), benefiting from a good performance in new space opened in the second half of last year.

Our e-commerce business delivered another period of strong growth with a 48.9% increase in sales to £14.0m (2013: £9.4m), driven by growth across all areas of our e-commerce business. Our UK site has benefited from the launch of our new platform last year, providing a more relevant customer experience through improved design, performance and personalised content. This was followed by the successful migration of our US site in July, and we are pleased with performance at this early stage.

The retail gross margin reduced slightly to 64.0% (2013: 64.7%), largely reflecting an increase in our outlet sales as a proportion of total sales.

Retail operating costs increased in line with our expectations to £70.1m (2013: £61.5m), and as a percentage of retail sales reduced to 50.0% (2013: 50.4%).

Wholesale

We operate a wholesale business in the UK, which serves countries across the world, particularly in Europe and includes the supply of goods to our licensed stores. We also operate a wholesale business in the US.

Group wholesale sales were 26.8% above the same period last year at £42.1m (2013: £33.2m) (29.1% in constant currency) with a gross margin of 40.5% (2013: 41.5%), reflecting a very good performance from our UK business and a strong performance from our US business. Our US business benefited from additional new business in the second half of last year and accordingly, we do not expect this level of growth in the second half of the year.

The fall in wholesale margin was largely due to a proportionate increase in sales to our licensed stores, which carry a lower margin.

Licence Income

We operate both territorial and product licences. Our territorial licences cover the Middle East, Asia and Australasia, where our partners operate licensed retail stores and in some territories, wholesale operations. Our product licences cover lingerie and sleepwear, fragrance and skinwear, watches, footwear, eyewear, men's suits, neckwear, jewellery, childrenswear, homeware, luggage and audio.

Licence income was up 37.1% to £5.5m (2013: £4.0m) with both territorial and product licences performing well. Notably there were good performances from our product licensees in footwear, eyewear, neckwear, skinwear and lingerie. In June we launched with a licence partner, Ted Baker Audio, which has been very positively received. Our licensed stores in the Middle East, operated by our territorial partner, RSH Limited, also performed particularly well during the period with further openings planned as a result.

Collections

Ted Baker Womenswear performed very well with sales up 19.2% to £106.9m (2013: £89.7m), benefiting from a greater share of space added during the period. Ted Baker Menswear also delivered a very good performance with sales increasing 15.0% to £75.3m (2013: £65.5m). We are very pleased with the positive reactions to the collections both in the UK and internationally.

Womenswear represented 58.7% of total sales (2013: 57.8%) during the period and Menswear represented 41.3% of total sales (2013: 42.2%), which is broadly representative of the division in retail selling space.

Geographic Performance

United Kingdom & Europe

Sales in the period in the UK and Europe increased 16.7% to £139.7m (2013: £119.7m) (17.4% in constant currency).

Sales in the retail division were up 15.1% to £105.4m (2013: £91.6m) (15.6% in constant currency), reflecting a good performance in our established UK market and a very good performance in Europe where we continue to expand. During the period we opened two new stores in the UK, in Glasgow and Heathrow Terminal 2, a new store in Marseille, France, an outlet in Paris, France and further concessions with leading department stores in France, Spain and the Netherlands.

Average square footage rose by 7.6% over the period to 225,662 sq.ft (2013: 209,653 sq.ft), driven largely by growth in Europe. As at 9 August 2014, total retail square footage was 229,092 sq.ft (2013: 211,594 sq.ft), representing an increase of 8.3%. Retail sales per square foot increased by 4.1% from £394 to £410 (5.1% constant currency) reflecting the strength of our collections both in the UK and Europe.

As at 9 August 2014, we operated 39 stores (2013: 34), including 2 licence stores (2013: nil), 209 concessions (2013: 193) and 12 outlet stores (2013: 11).

Sales from our UK wholesale business increased by 21.6% to £34.3m (2013: £28.2m) reflecting a good performance from our UK wholesale business and continued growth in our wholesale export business.

US & Canada

We are very pleased with our progress across retail and wholesale in the US and Canada with sales increasing 19.3% to £36.4m (2013: £30.5m) (31.3% in constant currency). Both our retail and wholesale channels performed very well and we are confident that the Ted Baker brand is continuing to gain traction and recognition in this territory.

Sales from our retail division increased by 13.8% to £28.9m (2013: £25.4m) (25.2% in constant currency). During the period we continued our expansion in the US with a new store in Philadelphia, an outlet in Desert Hills, California and two further concessions through a leading department store. We also successfully migrated our US e-commerce site onto our new platform in July this year, and we are very pleased with the improved design and performance.

Average square footage rose 13.5% over the period to 79,138 sq.ft (2012: 69,703 sq.ft). At 9 August 2014, total retail square footage was up 10.2% on last year at 81,433 sq.ft (2013: 73,877 sq.ft). Retail sales per square foot in constant currency increased 7.8% reflecting positive reactions to our collections, however, adjusted for currency movements fell 2.2% to £350 (2013: £358).

As at 9 August 2014, we operated 44 concessions across the US and Canada (2013: 37), 17 stores (2013: 16) and 6 outlet stores (2013: 5).

Sales from our US wholesale business increased by 47.1% to £7.5m (2013: £5.1m) (62.1% in constant currency), reflecting the growth of this business and increased brand recognition in this territory. This growth reflected momentum from new business gained in the second half of last year, which will annualise in the second half of this year. As a result, we do not expect this level of growth to be achieved in the second half of the year.

Middle East, Asia & Australasia

We continue to develop the Ted Baker brand across the Middle East, Asia and Australasia through our retail and licensing channels. We work closely with our territorial partners to ensure the visual merchandising of the licensed stores and training of the teams is reflective of the Ted Baker culture.

Retail sales in Asia increased 16.0% to £5.8m (2013: £5.0m) (26.0% in constant currency), with average square footage up 22.4% to 21,603 sq.ft (2013: 17,655 sq.ft). We are still in the early stages of development in this territory and continue to invest in infrastructure and people to build brand awareness and support our future growth.

During the period we closed two concessions in Japan and South Korea and opened one new concession in Japan. As at 9 August 2014, we operated 22 stores (2013: 22), 15 of which are through a licence partner (2013: 15), 1 outlet (2013:1) and 7 concessions (2013: 5) across Asia.

Our licensed stores across the Middle East continued to perform very well. During the period we opened a new store in Dubai and in Egypt and our first two stores in Saudi Arabia with our licence partner in this territory, RSH Limited. As a result, as at 9 August 2014, we operated a total of 17 stores across the Middle East (2013: 12).

During the period, we opened two new stores in Brisbane and Melbourne, Australia through a joint venture with our Australasian licence partner, Flair Industries Pty Ltd. As at 9 August 2014, we operated 7 stores in Australasia (2013: 5 stores).

Current Trading and Outlook

Retail

The second half has started well for the Group, with a good performance from our Autumn/Winter collections despite unusually warm weather in September. We have continued our international expansion in the US with a new store in Las Vegas and two concessions with a leading department store. We have also opened further concessions across Europe in France and Spain.

We will continue to develop our presence in the US and Canada during the second half of the year with plans to open two new stores in Miami and Toronto and further concessions in the US.

In the UK and Europe, we plan to open a store in Heathrow Terminal 4 and further concessions in Spain, Portugal and the Netherlands.

Wholesale

The strong performance in our wholesale business has been positively impacted by additional new business in the US during the second half of last year. As a result, we anticipate full year growth of around 18% for our wholesale business.

Licence Income

Our product and territorial licences continue to perform well with further store openings planned in Turkey, Abu Dhabi and Saudi Arabia. In September, we opened our first store in Panama with a new licence partner and performance at this early stage has been encouraging.

Outlook

The Group continues to perform well and we are pleased with the reactions to our Autumn/Winter collections.

We remain focused on the long term development of the Ted Baker brand and continue to invest in infrastructure and people to support the future growth of our business in new and existing markets.

Whilst we have made a strong start to the financial year, our results for the full year will, as always, be dependent on the more weighted second half trading period.

We intend to make our next interim management statement, covering the period since the start of the second half of the financial year, in mid-November.

David Bernstein CBE

Non-Executive Chairman

02 October 2014

Condensed Group Income Statement

For the 28 weeks ended 9 August 2014

Condensed Group Statement of Comprehensive Income

For the 28 weeks ended 9 August 2014

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 9 August 2014

Condensed Group Statement of Changes in Equity - Unaudited

For the 28 weeks ended 10 August 2013

Condensed Group Statement of Changes in Equity - Audited

For the 52 weeks ended 25 January 2014

Condensed Group Balance Sheet

At 9 August 2014

Condensed Group Cash Flow Statement

For the 28 weeks ended 9 August 2014

Notes to the Condensed Interim Financial Statements

For the 28 weeks ended 9 August 2014

1. Basis of preparation

a. Reporting entity

Ted Baker Plc is a company domiciled in the United Kingdom. The condensed interim financial statements ("interim financial statements") of Ted Baker Plc as at, and for the 28 weeks ended, 9 August 2014 comprise the Company and its subsidiaries (together referred to as the "Group").

The Group financial statements as at, and for the 52 weeks ended, 25 January 2014 are available upon request from the Company's registered office at Ted Baker Plc, The Ugly Brown Building, 6a St. Pancras Way, London NW1 0TB or at www.tedbakerPlc.com.

b. Statement of compliance

These interim financial statements have been prepared in accordance with "IAS 34 Interim Financial Reporting" as adopted by the EU and the requirements of the Disclosures and Transparency Rules. They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group financial statements as at, and for the 52 weeks ended, 25 January 2014. These interim financial statements were approved by the Board of Directors on 2 October 2014.

The comparative figures for the 52 weeks ended 25 January 2014 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. These sections address whether proper accounting records have been kept, whether the Company's accounts are in agreement with these records and whether the auditors have obtained all the information and explanations necessary for the purposes of the audit.

The financial information in this document is unaudited, but has been reviewed by the auditors in accordance with the Auditing Practices Board guidance on Review of Interim Financial Information.

c. Going concern

The Group financial statements for the 52 weeks ended 25 January 2014, approved by the Board on 21 March 2014, included information on the business environment in which the Group operates, including the factors that are likely to impact the future prospects of the Group, together with the principal risks and uncertainties that the Group faces. In addition, the notes to the consolidated financial statements set out the Group's objectives, policies and processes for managing its financial and capital risk and its exposures to credit, market and liquidity risk. Many of the risks and uncertainties reported are such that their potential to impact the Group's operations are inherent and remain valid as regards to their potential impact during the second half of 2014. The impact of the economic environment in which the Group's businesses operate is considered in the Chairman's Statement.

The Directors have prepared trading and cash flow forecasts for a period of one year from the date of approval of these interim financial statements. The Directors have a reasonable expectation that the Group has adequate cash headroom and expects to meet all banking covenant requirements. Accordingly, they continue to adopt a going concern basis in preparing the financial statements of the Group.

d. Significant accounting policies

The accounting policies adopted in these interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the 52 weeks ended 25 January 2014. Adoption of amendments to published standards and interpretations effective for the Group for the half year ended 9 August 2014 have had no significant impact on the financial position and performance of the Group.

2. Segment information

Segment revenue and segment result

3. Exceptional Income and Expenses

The directors believe that the profit before exceptional items and the adjusted earnings per share measures provide additional useful information for shareholders on the underlying performance of the business. These measures are consistent with how underlying business performance is measured internally.

The exceptional profit before tax measure is not a recognised profit measure under IFRS and may not be directly comparable with adjusted profit measures used by other companies.

Exceptional income for the period of £3.7m (10 August 2013: £nil, 25 January 2014: £nil) is in relation to the early termination of a licence partner agreement. In February 2014 we came to a mutual agreement with one of our licence partners to terminate our licence agreement earlier than anticipated due to a variation in that licence partner's long-term strategy following a change in senior management. The Company has recognised minimum royalty income in line with the terms of the original agreement in the 28 week period ended 9 August 2014 up to the point where work with the licence partner was complete. In addition we received a payment of £3.7 million for compensation of royalties that would be due to us had the agreement continued to its original completion date. Given the quantum of the amounts involved and the unusual nature of the early termination of the agreement the compensation payment has been included as exceptional income in the period.

Exceptional costs for the period of £2.6m (10 August 2013: £nil, 25 January 2014: £1.0m) relate to a legal dispute with a previous insurer. The Group is pursuing a claim against a previous insurer for loss of profit arising from the theft of inventory from its warehouse from 2004 to 2008. Whilst the directors remain confident, no contingent asset has been recognised at the balance sheet date in respect of any compensation for loss of profit or recovery of costs that may be awarded to the Company. This is on the basis that accounting standards require the directors to be virtually certain of the outcome, and final judgment and any award of costs is pending from the Courts. Accordingly an amount of £2.6 million has been charged as exceptional costs during the period which relates to the Company's legal and professional costs incurred in respect of the case.

Exceptional costs incurred for the 52 weeks ended 25 January 2014 include £0.7m of impairment charges in respect of the retail assets of a store in the Meatpacking District, New York, and a store in Paris. The balance of £0.3m related to an onerous lease for one of our Liverpool based stores, where we had ceased trading following the expansion of our Liverpool One store in Merseyside.

4. Finance income and expenses

5. Earnings per share

* Adjusted profit for the period and adjusted earnings per share are shown before exceptional items (net of tax) of £842,000 (28 weeks ended 10 August 2013: £nil, 52 weeks ended 25 January 2014: £775,000).

6. Dividends per share

The Board has declared an interim dividend of 11.3p per share (2013: 9.5p) payable on 21 November 2014 to shareholders on the register at 17 October 2014.

7. Income tax expense

The Group's full year forecast effective tax rate in respect of continuing operations for the 28 weeks ended 9 August 2014 is 26.6% (28 weeks ended 10 August 2013: 25.9%, 52 weeks ended 25 January 2014: 25.9%).

This effective tax rate is higher than the UK tax rate due to higher overseas tax rates and the non-recognition of losses in overseas territories where the businesses are still in their development phase. On 1 April 2014 the UK corporation tax rate fell from 23% to 21%. A further reduction to 20% (from 1 April 2015) has been substantively enacted and therefore our closing UK deferred tax assets and liabilities have been measured at this rate.

Our future effective tax rate is expected to be higher than the UK tax rate as a result of overseas profits arising in jurisdictions with higher tax rates than the UK.

8. Share based payments

Sharesave Scheme

Share options are granted at an option price equal to 80 per cent. of the Company share price at the grant date. The share options vest and are exercisable either three or five years after the date of grant, and they expire six months after the end of the vesting period. The options will also expire if the employee leaves the Group prior to the exercise or vesting date.

The charge to the income statement for the 28 weeks ended 9 August 2014 in respect of Sharesave scheme options amounted to £63,815 (2013: £43,669).

The terms and conditions of the SAYE grants made during the 28 weeks ended 9 August 2014 are as follows:

The basis of measuring fair value is consistent with that disclosed in the consolidated financial statements for the 52 weeks ended 25 January 2014. The range of inputs into the Black-Scholes model was as follows:

Long Term Incentive Plan

Share awards are made in the form of nil-cost options under the Ted Baker Plc Long Term Incentive Plan 2013 ("LTIP 2013"), which was approved by the shareholders at the general meeting held on 20 June 2013. A second award of options was granted under the LTIP 2013 on 1 May 2014. The options will be exercisable three years after the date of grant subject to the satisfaction of profit before tax per share and share price performance targets, each measured over a three year period.The profit before tax per share target is calibrated so that the percentage of awards that vestsis linked to the level of profit growth achieved.

The terms and conditions of the LTIP 2013 awards made during the 28 weeks ended 9 August 2014 are as follows: