6th Dec 2007 07:01
Theo Fennell PLC06 December 2007 6 December 2007 Theo Fennell PLC ("Theo Fennell" or "the Group") Interim Results for the six months ended 30 September 2007 Theo Fennell PLC the international, luxury jeweller announces Interim Resultsfor the six months ended 30 September 2007. HIGHLIGHTS: • Turnover up 21% at £12.8m (2006: £10.6m)• Pre-tax profit of £434k (2006: £336k) up 29%• Earnings per share of 1.59p (2006: per share 1.41p)• Appointment of Pamela Harper as Chief Executive, one of the luxury goods industry's most experienced operators • Further developing established international base with presences in Kazakhstan, Bahrain and a unique boutique in the Wonder Room, Selfridges Richard Northcott, Chairman commented: "Theo Fennell continues to make excellent progress. Our unique, design-ledjewellery sets the Company apart and allows it to compete comfortably with othermajor international brands. The appointment of Pamela Harper as our Chief Executive is a great coup for thebusiness. She has 28 years luxury goods experience and was instrumental in theturnaround of the Burberry brand, working closely with Rose Marie Bravo. Shejoins us with a wealth of relevant experience and is the ideal person to developTheo Fennell into a major, luxury brand." 6 December 2007 Enquiries:Theo Fennell Plc Tel: 020 7591 5000Richard NorthcottPelham PR Tel: 020 7743 6678James Henderson / Kate CatchpoleSeymour Pierce Limited Tel: 020 7107 8000Mark Percy CHAIRMAN'S STATEMENT Overview The Company experienced a strong first half with sales up 21% on the same periodlast year, increasing turnover to £12.8 million. This is the third year ofsignificant growth which has been achieved due to a high demand for thedesign-led pieces that make Theo Fennell popular yet unique. In addition, theInternational network continues to perform well and above expectations with newpresences in Kazakhstan and Bahrain. Financial The Company's strong performance was upheld with first half profitability up 29%on the same period last year at £434,286 (2006: £336k). Earnings per share were1.59p (2006: 1.41p per share). Operational Management have continued to focus on expanding Theo Fennell's representation ininternational markets. The Company has recently established presences inKazakhstan, Bahrain and a unique boutique in the Wonder Room, Selfridges. Earlier this year, Theo Fennell hosted a major exhibition of its jewellery 'ShowOff' at the Royal Academy of Arts which received critical acclaim and wasattended by international clients, media and opinion formers. A number of newone-off items were designed for the show, together with new collections, whichwill now be distributed through Theo Fennell's International network. Two new collections have been launched in the first half of this year Quiver andAmpoule with Theo Fennell watches being developed for launch in 2008/09. TheTheo Fennell scent has been very successful and is being rolled out Worldwide.The men's fragrance is due to be launched in 2008. The Board We are delighted that Pamela Harper has today joined us as Chief Executive.Pamela has over 28 years experience in the luxury goods industry and wasinstrumental in developing the Burberry brand globally, Hermes' UK presence, andturning around Escada in the UK. We are extremely pleased to have her on boardand look forward to her input and contribution in developing our brand andfurther expanding our International network. On the 11 October, we announced that Barbara Snoad was due to leave the businessat the end of the year following six successful years as Managing Director.Following the appointment of Pamela Harper, Barbara Snoad has now resigned fromthe board with immediate effect. Outlook Theo Fennell continues to progress and sales in the second half are still aheadof last year's record performance albeit at more modest growth levels comparedto the first half of this year. Our immediate focus is the important Christmasperiod and in the New Year we will be reviewing our business plan with the newCEO to accelerate the development of the brand and our International network. Richard Northcott Chairman 6 December 2007 Profit and Loss Account (Unaudited)for the six months ended 30 September 2007 Six months Six months Year ended 30 ended 30 ended 31 September September March 2007 2006 2007 £ £ £ Turnover 12,808,456 10,639,915 25,360,518Cost of sales (11,459,380 ) (9,548,319 ) (21,828,970 )Gross profit 1,349,076 1,091,596 3,531,548Administrative expenses (928,763) (720,040 ) (1,854,190 ) Exceptional administrativeexpenses - - (255,999 )Operating profit 420,313 371,556 1,421,359Net interest receivable / 13,973 (35,330 ) (51,040 )(payable)Profit on ordinary activities 434,286 336,226 1,370,319before taxationTax on profit on ordinary (138,972 ) (107,591 ) 184,638activitiesProfit for the financial 295,314 228,635 1,554,957periodBasic earnings per share 1.59 p 1.41 p 9.57 pDiluted earnings per share 1.45 p 1.28 p 7.81 p Balance Sheet (Unaudited)as at 30 September 2007 As at 30 As at 30 As at 31 September September March 2007 2006 2007 £ £ £ Fixed Assets Tangible assets 734,176 790,507 641,964 Current assets Stocks 10,835,275 9,315,915 9,024,623 Debtors 4,194,371 3,713,509 4,542,854Cash at bank and in hand 11,989 10,537 10,972 15,041,635 13,039,961 13,578,449 Creditors: amounts falling (6,343,179 ) (6,016,799 ) (5,036,722 )due within one year Net current assets 8,698,456 7,023,162 8,541,727 Total assets less current 9,432,632 7,813,669 9,183,691liabilities Creditors: amounts falling due after one year Convertible loan note - ) (1,000,000 ) (400,000 ) Other (256,345 (40,504 ) (9,121 )Net assets 9,176,287 6,773,165 8,774,570 Capital and reserves Called up share capital 930,533 808,892 913,791Share premium account 4,507,857 3,879,752 4,423,850Profit and loss account 3,706,157 2,084,521 3,410,843Share Options Reserve 31,740 - 26,086 Shareholders' funds 9,176,287 6,773,165 8,774,570 Cash Flow Statement (Unaudited)for the six months ended 30 September 2007 Six months Six months Year ended 30 ended 30 ended 31 September September March 2007 2006 2007 £ £ £ Net cash (outflow) / inflow from operating activities (398,179 ) 14,897 642,586 Returns on investment and servicing of financeNet interest received / (paid) 11,060 (35,106 ) (47,905 ) Taxation Corporation tax paid/repayment 140,138 - (211,638 ) Capital expenditure Purchase of fixed assets (282,746 ) (52,922 ) (95,459 ) Equity Issue of Share Options 750 - 75,086 Net cash (outflow)/inflow before (528,977 ) (73,131 ) 362,670financing Financing Capital element of hire purchase agreements (16,043 ) (28,978 ) (46,542 )Bank loan repayments (62,035 ) (58,090 ) (118,365 )Bank loan 350,000 (Decrease)/increase in cash (257,055 ) (160,199 ) 197,763 Notes 1. The financial statements for the period under review have not been audited or reviewed by the Company's auditors, Grant Thornton UK LLP, but have been reviewed and approved by the Audit Committee. 2. The results for the year ended 31 March 2007 are taken from the statutory financial statements, which were reported on by the Company's auditors without qualification. These have been filed with the Registrar of Companies. 3. Earnings per share and diluted earnings per share. Average market price for the six months ended 30 September 2007 was 125p (31 March 2007: 90.0p) Six months Six months Year ended 30 ended 30 ended 31 September September March 2007 2006 2007 £ £ £ Profit for the financial year 295,314 228,635 1,554,957Effect of convertible loan note 10,617 24,500 49,000 Adjusted profit for dilutive 305,931 253,135 1,603,957earnings per share Weighted average number of 18,553,980 16,177,831 16,243,353ordinary sharesEffect of dilutive share options 1,155,834 220,188 966,916Effect of convertible loan note 1,388,888 3,333,333 3,316,893 Adjusted weighted average number 21,098,702 19,731,352 20,527,162of ordinary shares Earnings per share - basic 1.59p 1.41p 9.57pEarnings per share - diluted 1.45p 1.28p 7.81p 4. Cash flow from operating activities: Six months Six months Year ended 30 ended 30 ended 31 September September March 2007 2006 2007 £ £ £ Operating profit 420,313 371,556 1,421,359Depreciation charges 190,534 186,398 377,478Increase in stocks (1,810,652 ) (1,262,291 ) (970,999 )Decrease / (Increase) in 176,719 (689,177 ) (1,518,522 )debtorsIncrease in creditors 624,907 1,408,411 1,333,270 Net cash (outflow)/ inflow (398,179 ) 14,897 642,586from operating activities 5. A copy of the interim statement will be posted to shareholders and made available to the public at the Company's Registered Office, 2b Pond Place, London SW3 6TF for one month from the date thereof. 6. No interim dividend is declared on the ordinary shares. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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