21st Nov 2006 07:01
Theo Fennell PLC21 November 2006 Theo Fennell PLC ("Theo Fennell" or "the Group") Interim Results for the six months ended 30 September 2006 Theo Fennell PLC the international jeweller with a growing UK and overseasrepresentation announces Interim Results for the six months ended 30 September2006. HIGHLIGHTS: • Turnover up 41% at £10.64m (2005: £7.55m)• Like for like Retail sales are up 35%• Pre-tax profit of £336k (2005: loss of £94k)• Earnings per share of 1.41p (2005:loss per share 0.40p)• First half growth generated by significant sales growth across the business• Established initial international base with openings in Hong Kong, Dubai, Dublin and most recently Moscow• Encouraging start to second half trading• Exciting well-received distinctive, design-led product• Group well positioned for the Christmas period Richard Northcott, Chairman commented: "Theo Fennell has made excellent progress with the universal appeal of ourunique design-led product. The Group today is viewed as a distinctive luxuryjewellery brand, competing comfortably against other major international brandsin some of the world's key markets. Our success in the first half highlightsthe overall international potential of the Group. With an established base in anumber of international markets, Theo Fennell has the opportunity to expandfurther, using its design ethos, healthy balance sheet and strong managementteam". 21 November 2006 Theo FennellRichard Northcott [email protected] 020 7591 5031Barbara Snoad [email protected] 020 7591 5021 Pelham Public RelationsJames Henderson [email protected] 020 7743 6673 CHAIRMAN'S STATEMENT Overview Theo Fennell has performed exceptionally strongly in the first half, continuingits rapid expansion and development into a global luxury brand. Sales in thefirst half have increased by 41% fuelled by very strong like for like sales andinternational contributions. These results highlight the success of both Management's strategy in expandingthe brand domestically and internationally and the Group's unique designphilosophy. Theo Fennell is today one of the few global jewellery brands with aneponymous, and critically acclaimed, in house designer. This focus on designdistinguishes us from other global luxury jewellery brands, giving us adistinctive positioning in the global luxury Jewellery market. This uniquepositioning is a major factor in driving sales growth. Financial The Group's strong performance translated into first half profitability with apre-tax profit of £336,226 compared with a loss of £94,880 in the first half of2005. Turnover increased to £10,639,915 (2005: £7,556,537). Earnings per sharewere 1.41p (2005: loss per share 0.40p). The Group has secured improved bank facilities to take advantage of theexpansion opportunities referred to below. Operational Over the first half, the management team has focused on expanding Theo Fennell'srepresentation in major international markets. The Group has now establisheditself in the key markets of Hong Kong, Dubai, Dublin and most recently Moscowperforming ahead of expectations in each country. Our operations in the UK continue to perform well ahead of budget. Trading inthe beginning of the second half is encouraging and we are well positioned forthe Christmas period. In addition we look forward to the exclusive launch of the Theo Fennell scent inHarrods in February 2007. Outlook Theo Fennell has made excellent progress. The Group today is viewed as a luxuryjewellery brand, competing comfortably against other major international brandsin some of the world's key luxury destinations. Our success in the first halfhighlights the overall international potential of the Group. Theo Fennell hasthe base from which to expand further, using its design ethos, healthy balancesheet and strong management team. Richard Northcott Chairman 21 November 2006 Profit and Loss Account (Unaudited)for the six months ended 30 September 2006 Six months Six months Year ended 30 ended 30 ended 31 September September March 2006 2005 2006 £ £ £Turnover 10,639,915 7,556,537 19,433,422Cost of sales (9,548,319 ) (6,903,455 ) (16,924,808 )Gross profit 1,091,596 653,082 2,508,614Administrative expenses (720,040 ) (660,165 ) (1,639,368 )Operating profit / (loss) 371,556 (7,083 ) 869,246Net interest payable (35,330 ) (87,797 ) (136,795 ) Profit / (loss) on ordinary 336,226 (94,880 ) 732,451activities before taxationTax on profit / (loss) on (107,591 ) 30,360 (241,413 )ordinary activitiesProfit / (loss) for the 228,635 (64,520 ) 491,038financial periodBasic earnings per share 1.41 p (0.40 )p 3.04 pDiluted earnings per share 1.28 p (0.40 )p 2.77 p Balance Sheet (Unaudited)as at 30 September 2006 As at 30 As at 30 As at 31 September September March 2006 2005 2006 £ £ £Fixed Assets Tangible assets 790,507 862,400 923,983 Current assets Stocks 9,315,915 8,441,693 8,053,624 Debtors 3,713,509 2,573,717 3,024,332 Cash at bank and in hand 10,537 10,500 12,515 13,039,961 11,025,910 11,090,471 Creditors: amounts falling (6,016,799 ) (4,698,877 ) (4,347,156 )due within one year Net current assets 7,023,162 6,327,033 6,743,315 Total assets less current 7,813,669 7,189,433 7,667,298liabilities Creditors: amounts falling due after one yearConvertible loan note (1,000,000 ) (1,000,000 ) (1,000,000 ) Other (40,504 ) (200,462 ) (122,768 ) Net assets 6,773,165 5,988,971 6,544,530 Capital and reserves Called up share capital 808,892 808,892 808,892Share premium account 3,879,752 3,879,752 3,879,752Profit and loss account 2,084,521 1,300,327 1,855,886 Shareholders' funds 6,773,165 5,988,971 6,544,530 Cash Flow Statement (Unaudited)for the six months ended 30 September 2006 Six months Six months Year ended 30 ended 30 ended 31 September September March 2006 2005 2006 £ £ £ Net cash inflow / (outflow) 14,897 (370,773 ) 985,984from operating activities Returns on investment and servicing of financeNet interest paid (35,106 ) (84,802 ) (142,080 ) Taxation Corporation tax paid - - (1,909 ) Capital expenditure Purchase of fixed assets (52,922 ) (104,045 ) (359,293 ) Net cash (outflow)/inflow before (73,131 ) (559,620 ) 482,702financing Financing Capital element of hire purchase agreements (28,978 (25,652 ) (52,968 )Bank loan (58,090 ) (54,687 ) (111,127 ) (Decrease)/Increase in cash (160,199 ) (639,959 ) 318,607 Notes 1. The financial statements for the period under review have not beenaudited or reviewed by the Company's auditors, Grant Thornton UK LLP, but havebeen reviewed and approved by the Audit Committee. 2. The results for the year ended 31 March 2006 are taken from thestatutory financial statements, which were reported on by the Company's auditorswithout qualification. These have been filed with the Registrar of Companies. 3. Earnings per share and diluted earnings per share. Average marketprice for the six months ended 30 September 2006 was 58.8p (31 March 2006:32.0p) Six months Six months Year ended 30 ended 30 ended 31 September 2006 September March £ 2005 2006 £ £Profit for the financial year 228,635 (64,520) 491,038Effect of convertible loan note 24,500 - 49,000Adjusted profit for dilutive 253,135 (64,520) 540,038earnings per share Weighted average number of 16,177,831 16,177,831 16,177,831ordinary sharesEffect of dilutive share options 220,188 - 12,050Effect of convertible loan note 3,333,333 - 3,333,333Adjusted weighted average number 19,731,352 16,177,831 19,523,214of ordinary shares Earnings per share - basic 1.41p (0.40)p 3.04pEarnings per share - diluted 1.28p (0.40)p 2.77p 4. Cash flow from operating activities: Six months Six months Year ended 30 ended 30 ended 31 September September March 2006 2005 2006 £ £ £ Operating profit / (loss) 371,556 (7,083 869,246 Depreciation charges 186,398 162,896 ) 356,561 Increase in stocks (1,262,291 (469,585 (81,516 Increase in debtors (689,177 ) (292,108 ) (769,748 ) Increase in creditors 1,408,411 ) 235,107 ) 611,441 ) Net cash inflow/(outflow) from 14,897 (370,773 ) 985,984 operating activities 5. A copy of the interim statement will be posted to shareholders and madeavailable 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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