21st Mar 2007 07:03
Ted Baker PLC21 March 2007 21 March 2007 Ted Baker PLC Preliminary Results for the 52 weeks ended 27 January 2007 Highlights • Strong performance of the brand in the UK and the US, particularly in retail. • Development across Middle East and Asia commenced with the opening of six licensed stores in Dubai (2), Singapore, Bangkok, Jakarta and Hong Kong. • Strong growth in licence income, up 14.3%. • Proposed final dividend up 25.6% to 10.3p per share (2006: 8.2p per share), making a total for the year of 14.6p per share (2006: 12.1p per share), an increase of 20.7%. 2007 2006 ChangeGroup Revenue £125.6m £117.8m +6.6%Profit Before Tax £20.0m £18.4m +9.2%Basic EPS 33.9p 30.6p +10.8%Proposed Final Dividend 10.3p 8.2p +25.6%Cash Balance £13.5m £10.1m +34.2% Commenting on the results, Ray Kelvin, Chief Executive, said: "As Ted Baker continues its global expansion we are pleased to report yetanother year of success for the brand. Quintessentially British, Ted Baker'shigh product quality and attention to detail continues to drive the growth ofthe Group. We pride ourselves on our unique culture, which is inherent in allour products and operations, both in the UK and internationally. We commenced the development of Ted Baker in Middle East and Asia through ourlicence agreements, while considering further opportunities for new stores inboth the UK and the US. We remain confident in the long term strength of theGroup and look forward to the year with confidence." Enquiries: Ted Baker Tel: 020 7796 4133 on 21 March 2007 onlyRay Kelvin, Chief Executive thereafter Tel: 020 7255 4800Lindsay Page, Finance Director Hudson Sandler Tel: 020 7796 4133Sandrine Gallien / Kate Hough Visit Ted's new e-commerce site at www.tedbaker.com Notes to Editors 'No Ordinary Designer Label...' Ted Baker has grown steadily from a single shirtspecialist store in Glasgow to an international brand that distributes throughretail showcases, leading department stores and key independents in Europe, USA,Canada, the Middle East, Asia and Australasia. Using three distinct channels of distribution, retail, wholesale and licensing,allows Ted to pursue a policy of careful brand management and growth byextending the breadth of the collections, controlling distribution channels anddeveloping our presence within key markets. Ted's collections include three men's ranges: Global, which consists of limitededition opulent pieces; Endurance, a fusion of traditional tailoring with 21stcentury technology and high performance fabrics; and Men's Mainline which is acombined collection of laid-back denim pieces, casual shirts and contemporarysuiting. Ted's Womenswear collection includes tailoring, silk jerseys,directional knitwear, sophisticated dresses, and appliqued denim pieces. Boththe men's and women's offer is complimented by individual accessory collections.The Childrenswear and Babywear ranges are aptly named Teddy Boy, Teddy Girl andTeddy Baby and are treated as 'small cuts dressed by Ted.' Fragrances, Footwear,Eyewear, Watches and Intimates are designed by Ted and distributed throughlicensees. Renowned for the brand's quirky sense of humour and attention to detail, TedBaker has always had a very clear unswerving focus on quality. Ted createscollections that appeal to a broad range of style conscious men and womenlooking for that certain something a little out of the ordinary. CHAIRMAN'S STATEMENT I am pleased to report another year of strong results for Ted Baker. Growth,both in the UK and internationally was supported by our continued multi-channeldistribution strategy. The year saw a particularly strong performance in theretail and licence divisions with retail sales increasing by 11.4% and licenceincome increasing by 14.3%. Wholesale sales fell by 3.5% reflecting thedifficult market conditions experienced by some of our wholesale trustees. I would like to take this opportunity to thank the team at Ted Baker for itshard work during the year. The passion, commitment and dedication of our teamscontinue to drive the business forward in what is an exciting period for theGroup. Results Group revenue increased by 6.6% to £125.6m (2006: £117.8m) for the 52 weeksended 27 January 2007. Operating profit increased by 9.4% to £20.0m (2006:£18.3m) and profit before tax increased by 9.2% to £20.0m (2006: £18.4m). Basicearnings per share increased by 10.8% to 33.9p per share (2006: 30.6p pershare). Dividends The Board is pleased to recommend a final dividend of 10.3p per share (2006:8.2p per share) making a total for the year of 14.6p per share (2006: 12.1p pershare) an increase of 20.7% on the previous year. The directors feel it isappropriate to recommend a more progressive dividend policy to reflect thestrong cash generation of the business. The final dividend will be payable on 22June 2007 to those shareholders on the register on 18 May 2007. 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 2007 collection has been encouraging withtotal retail sales ahead by 12.1% for the first seven weeks, compared with thesame period last year. Retail square footage was some 7.8% higher at the startof the current financial year compared to last year. We plan to open stores inGatwick North and Brighton this year and expect retail square footage toincrease by some 10,000 square feet in total. Our retail licensees have opened athird store in Dubai and one in Kuala Lumpur, Malaysia since the end of theyear. Wholesale sales were 11.2% ahead of the same period last year. Whilst thisimprovement is encouraging, it is against a weak comparative and we anticipatethat conditions will remain difficult for some of our wholesale customers. Wehave also taken action in respect of certain customers where their profile is nolonger appropriate for our brand. As a result, we expect wholesale sales to beslightly below the level achieved last year. We have made an encouraging start to the current year and the Ted Baker brand isin excellent health. At this early stage we remain confident of another year ofgrowth and development. Robert Breare Non-Executive Chairman Chief Executive's Review INTRODUCTION I am delighted to report another year of strong growth for the Group. Thebrand's performance in the UK has once again been strong and Ted Baker continuesto develop its global presence. During the year we opened a store in SouthernCalifornia and our licence partners opened six stores in Dubai (2), Singapore,Bangkok, Jakarta and Hong Kong. Quality, design and attention to detail are key strengths of the Ted Baker brandand we remain focused on these areas. These strengths are not only seen in ourproducts but are evident across our stores and working environments and underpinour culture. We continue to maintain close control of our brand as we expandinternationally. GLOBAL GROUP PERFORMANCE Retail The retail division performed strongly during the year with sales growth up11.4% to £89.2m (2006: £80.1m). Average retail square footage rose by 7.5% overthe period to 147,861 sq.ft. (2006: 137,538 sq.ft.). At 27 January 2007, totalretail square footage was 152,937 sq.ft. (2006: 141,022 sq.ft.), representing anincrease of 8.4%. Retail sales per square foot increased from £582 to £603 asour newer space and overseas stores continue to mature. Wholesale In the interim statement we reported that some of our trustees had experienceddifficult market conditions, which would impact on our wholesale performance forthe year. Wholesale sales for the year were £36.5m (2006: £37.8m), representinga decline of 3.5%. This outturn was better than anticipated at the half year dueto an improved performance in the second half. Licence income Ted Baker operates two types of licences: territorial licences covering NorthAmerica, the Middle East, Asia, Australia and New Zealand; and product licencescovering lingerie, eyewear, perfume & fragrance, watches and footwear. Licence income for the year was up 14.3% to £4.0m (2006: £3.5m) and we wereparticularly pleased with the performances of our perfume and fragrancelicensees and of our footwear licencee who both delivered above average growth. Our other product and territorial licensees continue to perform in line with ourexpectations. Collections Ted Baker Menswear enjoyed good growth in the period with sales up 7.5% to£71.4m (2006: £66.4m). Menswear represented 56.8% of total sales (2006: 56.4%). Ted Baker Womenswear enjoyed good growth in the period with sales up 6.6% to£48.9m (2006: £45.9m). Womenswear represented 39.0% of total sales (2006:39.0%). Sales of other collections, comprising Childrenswear and Footwear were £5.3m(2006: £5.5m) and these collections represented 4.2% of our total sales (2006:4.6%). UNITED KINGDOM & EUROPE Our UK & Europe retail division performed strongly during the year with sales up9.2% to £80.0m (2006: £73.2m). Average square footage rose by 5.1% over the period to 125,333 (2006: 119,304).At 27 January 2007, total retail square footage was 128,481 (2006: 120,461)representing an increase of 6.7%. Retail sales per square foot increased from£614 to £638. In November 2006, we opened a store in Bath on Milsom Street, a premier streetin the City centre. Situated in a 2,100 sq ft listed building, the store housesboth the Ted Baker menswear and womenswear collections. We also opened 12 newconcessions during the year in leading department stores. At 27 January 2007, we operated 21 stores (2006: 20), 78 concessions (2006: 68)and 8 outlet stores (2006: 8). In November 2006, Ted Baker's new website went live. Our new transactionalwebsite has undergone a complete redesign, offering our customers a moreuser-friendly interface with a wider product range. The site offers the largestrange of Ted Baker collections and customer reaction has been positive. We haveseen a significant increase in activity compared to the previous site. US Our US retail division performed strongly during the year with sales up 35.2% to£9.2m (2006: £6.8m). We continue to develop our presence in the United Statesand in May 2006 opened our second largest US store in Southern California'sluxury shopping destination, South Coast Plaza. We now have 7 stores across theUnited States and will continue to review suitable opportunities to open furtherstores as they arise. Average square footage rose by 23.5% over the period to 22,528 (2006: 18,234).At 27 January 2007, total retail square footage was 24,456 (2006: 20,561)representing an increase of 18.9%. Retail sales per square foot increased from£374 to £409. Our US wholesale licensee, Hartmarx Corporation continues to make progress.During the year, a sub-licence was granted to Swank Inc for mens small leathergoods and jewellery and progress to date has been encouraging. MIDDLE EAST AND ASIA In the second quarter of 2005, we signed territorial licence agreements with RSHLimited and Li and Fung Group of Companies to develop our brand across theMiddle East and Asia. Our expansion in these territories has commenced with the opening of sixlicensed stores in Dubai (2), Singapore, Bangkok, Jakarta and Hong Kong. Theinitial reaction from customers has been promising and expansion will continueat a similar level in the current year. Although the financial impact of these new stores is not material in the year,they represent significant progress in our global expansion. The stores weredesigned by our in-house design teams and we have been closely involved in thevisual merchandising of the stores and the training of the retail teams toensure these new stores effectively reflect the culture and ethos of the brand. Ray Kelvin Chief Executive Finance Director's Report We continue to focus on margin led growth and strong cash management. Our netmargin before taxation increased to 16.0% (2006: 15.6%) and opening cash andcash equivalents of £10.1m improved to closing cash and cash equivalents of£13.5m. Gross Margin Retail gross margins were slightly below last year at 65.0% (2006: 66.1%). Aspreviously reported in the interim statement the margins in the first half were1.6% below last year. In the second half, the retail margin was 65.7% against66.1% reflecting a higher proportion of sales being generated in the UnitedStates. The wholesale gross margin was slightly up at 42.9% (2006: 42.2%). Thecomposite gross margin improved to 58.6% (2006: 58.4%) mainly reflecting achange in mix towards a higher proportion of retail sales. Operating Expenses Operating expenses rose by 6.8% to £58.0m (2006: £54.3m). Distribution costs,which include the costs of retail stores, outlets and concessions increased by6.1% to £41.4m (2006: £39.0m), which was below the increase in average retailselling space. Administration expenses increased by 8.5% to £16.6m (2006:£15.3m), largely reflecting the growth in the business activity and our supportof the retail business in the Middle East and Asia. Finance Income and Expenses The net interest income during the year was above last year at £0.1m (2006: nil)reflecting continued generation of cash from operations. This was offset by asmall foreign exchange loss compared to a gain in the prior year as a result ofthe weakening dollar. Taxation The tax charge for the year was £5.6m (2006: £5.4m), an effective tax rate of28.1% (2006: 29.6%). The effective rate was lower, due to a deferred taxadjustment on the recognition of tax losses in overseas subsidiaries. Ourunderlying effective rate was 30.9%. Cash Flow and Working Capital Net cash generated from operations was £13.9m (2006: £15.1m) primarilyreflecting higher working capital requirements. Inventory levels increased by £4.7m or 18.5% largely reflecting the plannedgrowth in the business for the current year. As expected, due to a disappointingwholesale performance, inventory levels also include a slightly higher level ofprior season stock. We have made appropriate provisions for this stock whichwill be dealt with through the usual channels. Capital expenditure was £5.0m (2006: £5.1m) and largely comprised investment innew retail stores and our second distribution facility. Shareholder Return Basic earnings per share increased by 10.8% to 33.9p per share (2006: 30.6p pershare) and the proposed dividend per share increased by 25.6% from 8.2p to10.3p. Free cash flow per share reduced by 8.4% from 35.6p to 32.6p, primarilyreflecting higher inventory levels at the year-end. Treasury and Risk Management The principal risks to the Group arise from exchange rate and interest ratefluctuations. The Board reviews and agrees policies for managing these risks ona regular basis. Where appropriate, the Group uses financial instruments tomitigate these risks. All transactions in derivatives, principally forwardforeign exchange contracts, are taken solely to manage these risks. Notransactions of a speculative nature are entered into. The most significant exposure to foreign exchange fluctuations relates topurchases in foreign currencies. The Group's policy is to hedge substantiallyall the risks of such currency fluctuations by using forward contracts takinginto account forecast foreign currency cash inflows and outflows. There has beenno change since the year-end to the major financial risks faced by the Group orthe Group's approach to the management of those risks. Lindsay Page Finance Director Group Income Statement For the 52 weeks ended 27 January 2007 Note 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000 Revenue 2 125,648 117,832Cost of sales (51,986) (48,979) ----------- -----------Gross profit 73,662 68,853 Distributioncosts (41,404) (39,007)Administrativeexpenses (16,645) (15,339)Otheroperatingincome 4,436 3,827 ----------- -----------Operatingprofit 20,049 18,334Finance income 4 192 129Financeexpenses 4 (191) (109) ----------- -----------Profit beforetax 3 20,050 18,354Income taxexpense (5,634) (5,435) ----------- -----------Profit for theperiod 14,416 12,919 =========== =========== Attributable to:Equityshareholdersof the parentcompany 14,421 12,931Minorityinterests (5) (12) ----------- -----------Profit for theperiod 14,416 12,919 =========== =========== Earnings per shareBasic 5 33.9p 30.6pDiluted 5 33.6p 29.7p DividendsPaid in period (£'000) 6 5,335 4,775Paid in period (pence per share) 6 12.5 11.2Proposed (£'000) 6 4,394 3,525Proposed (Pence per share) 6 10.3 8.2 The Income Statement relates to continuing operations Group Statement of Changes in EquityFor the 52 weeks ended 27 January 2007 Share Share Available Hedging Translation Retained Total Minority Total capital premium for reserve reserve earnings equity interest equity sale attributable reserve to equity 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 - 332Movement on current/deferred tax on share options - - - - - (23) (23) - (23)Change in fair value - - (176) - - - (176) - (176)Change in hedge reserve - - - (83) - - (83) - (83)Exchange rate movement - - - - (505) - (505) - (505)Profit for the period - - - - - 14,421 14,421 (5) 14,416Shares issued 11 1,045 - - - - 1,056 - 1,056Movement in respect of treasury shares - - - - - 2,469 2,469 - 2,469Movement in respect of own shares - - - - - (3,977) (3,977) - (3,977)Disposal of own shares - - - - - 935 935 - 935Dividends paid - - - - - (5,335) (5,335) - (5,335) ------- --------- --------- --------- ----------- --------- ------------- -------- -------Balance at 27 January 2007 2,160 8,028 - (90) (493) 41,733 51,338 (57) 51,281 ======= ========= ========= ========= =========== ========= ============= ======== ======= Group Statement of Changes in EquityFor the 52 weeks ended 28 January 2006 Share Share Available Hedging Translation Retained Total Minority Total capital premium for sale reserve reserve earnings equity interest equity reserve attributable to equity shareholders of the parent £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 30 January 2005 2,149 6,983 428 (142) (33) 27,771 37,156 (40) 37,116 Share option charge - - - - - 612 612 - 612Deferred tax on share options - - - - - 718 718 - 718Change in fair value - - (252) - - - (252) - (252)Change in hedge reserve - - - 135 - - 135 - 135Exchange rate movement - - - - 45 - 45 - 45Profit for the period - - - - - 12,931 12,931 (12) 12,919Purchase of own shares - - - - - (447) (447) - (447)Purchase of shares held as treasury - - - - - (4,170) (4,170) - (4,170)Movement in respect of own shares - - - - - 271 271 - 271Dividends paid - - - - - (4,775) (4,775) - (4,775) -------- --------- ---------- --------- ------------ ---------- ------------- -------- --------Balance at 28 January 2006 2,149 6,983 176 (7) 12 32,911 42,224 (52) 42,172 ======== ========= ========== ========= ============ ========== ============= ======== ======== Group Balance Sheet At 27 January 2007 Note 27 January 2007 28 January 2006 £'000 £'000Non-current assets Intangible assets 482 501Property, plant and equipment 19,209 18,667Deferred tax assets 525 1,543Available-for-sale financial assets - 176 ----------- ----------- 20,216 20,887Current assets Inventories 27,825 23,475Trade and other receivables 11,843 11,764Derivative financial assets 216 155Cash and cash equivalents 7 13,513 11,381 ----------- ----------- 53,397 46,775Current liabilities Trade and other payables (16,714) (17,507)Borrowings 7 - (563)Current tax payable (5,268) (6,544)Derivative financial liabilities (307) (126) ----------- ----------- (22,289) (24,740) Non-current liabilitiesDeferred tax liabilities (43) -Borrowings 7 - (750) ----------- ----------- (43) (750) ----------- -----------Total liabilities (22,332) (25,490) ----------- -----------Net assets 51,281 42,172 =========== =========== Equity Share capital 2,160 2,149Share premium account 8,028 6,983Other reserves (90) 169Retained earnings 41,240 32,923 ----------- -----------Total equity attributable to equityshareholders of the parent company 51,338 42,224Minority interests (57) (52) ----------- -----------Total equity 51,281 42,172 =========== =========== Group Cash Flow Statement For the 52 weeks ended 27 January 2007 Note 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000Cash generated from operations Profit for theperiod 14,416 12,919Adjusted for:Income taxexpense 5,634 5,435Depreciation 3,981 3,820Loss ondisposal ofproperty, plant& equipment 63 23Share optioncharge 332 612Net finance(losses) /gains (125) 35Changes inhedge reserves (83) (7)Increase ininventories (4,714) (595)Decrease /(increase) intrade and otherreceivables 903 (3,534)(Decrease) /increase intrade and otherpayables (554) 2,030 ----------- -----------Cash generatedfrom operations 19,853 20,738 Interest paid (64) (125)Income taxespaid (5,873) (5,480) ----------- -----------Net cashgenerated fromoperatingactivities 13,916 15,133 Cash flow from investing activities Purchases ofproperty, plant& equipment (4,970) (5,059)Proceeds fromsale ofproperty, plant& equipment 26 13Interestreceived 164 63 ----------- -----------Net cash frominvestingactivities (4,780) (4,983) Cash flow from financing activities Proceeds fromissue ofordinary shares 1,056 -Purchase of ownshares (3,438) (4,617)Sale of ownshares 5,907 -Shares vested (3,042) 271Loan repayment (750) -Dividends paid (5,335) (4,775) ----------- -----------Net cash fromfinancingactivities (5,602) (9,121) ----------- -----------Net increase incash and cashequivalents 3,534 1,029 Cash and cashequivalents at28 January 2006 10,068 8,853Loan repayment 750 -Exchange ratemovement (839) 186 ----------- -----------Cash and cashequivalents at27 January 2007 7 13,513 10,068 =========== =========== 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 27 January 2007, 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 27 January 2007. The financial information set out above does not constitute the Group'sstatutory accounts for the 52 weeks ended 27 January 2007 or 28 January 2006.The annual financial information presented in this preliminary announcement forthe 52 weeks ended 27 January 2007 is based on, and is consistent with, that inthe Group's audited financial statements for the 52 weeks ended 27 January 2007,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 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000 Menswear 71,359 66,403Womenswear 48,947 45,920Other 5,342 5,509 ----------- ----------- 125,648 117,832 =========== =========== b) Primary reporting format - divisional segments 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 9,960 5,653 15,613incomeOther operating income 4,436 -----------Operating profit 20,049Net finance income 1 -----------Profit before taxation 20,050Income tax expense (5,634) -----------Profit for the period 14,416 =========== Total assets 53,095 20,518 73,613Total liabilities (15,852) (6,480) (22,332) ----------- ----------- ----------- 37,243 14,038 51,281 ----------- ----------- ----------- Capital expenditure 4,603 318 4,921Depreciation 3,724 257 3,981 52 weeks ended 28 January 2006 Retail Wholesale Total £'000 £'000 £'000 Revenue 80,055 37,777 117,832Cost of sales (27,136) (21,843) (48,979) ----------- ----------- -----------Gross profit 52,919 15,934 68,853Operating costs (44,081) (10,265) (54,346) ----------- ----------- -----------Operating profit before other operating 8,838 5,669 14,507incomeOther operating income 3,827 -----------Operating profit 18,334Net finance expenses 20 -----------Profit before taxation 18,354Income tax expense (5,435) -----------Profit for the period 12,919 =========== Total assets 47,816 19,846 67,662Total liabilities (17,308) (8,182) (25,490) ----------- ----------- ----------- 30,508 11,664 42,172 ----------- ----------- ----------- Capital expenditure 4,692 403 5,095Depreciation 3,518 302 3,820 Wholesale sales are shown after the elimination of inter-company sales of£2,801,000 (2006: £3,732,000). C) Secondary reporting format - geographical segments by origin 52 weeks ended 27 January 2007 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 15,470 143 15,613operating incomeOther operating income 4,436 -----------Operating profit 20,049Net finance income 1 -----------Profit before taxation 20,050 Income tax expense (5,634) -----------Profit for the period 14,416 =========== Total assets 62,284 11,329 73,613Total liabilities (21,151) (1,181) (22,332) ----------- ----------- ----------- 41,133 10,148 51,281 ----------- ----------- ----------- Capital expenditure 4,019 902 4,921Depreciation 3,285 696 3,981 52 weeks ended 28 January 2006 United Kingdom Other Total £'000 £'000 £'000 Revenue 109,494 8,338 117,832Cost of sales (45,582) (3,397) (48,979) ----------- ----------- -----------Gross profit 63,912 4,941 68,853Operating costs (48,813) (5,533) (54,346) ----------- ----------- -----------Operating profit before other 15,099 (592) 14,507operating incomeOther operating income 3,827 -----------Operating profit 18,334Net finance expenses 20 -----------Profit before taxation 18,354Income tax expense (5,435) -----------Profit for the period 12,919 =========== Total assets 56,878 10,784 67,662Total liabilities (24,371) (1,119) (25,490) ----------- ----------- ----------- 32,507 9,665 42,172 ----------- ----------- ----------- Capital expenditure 3,106 1,989 5,095Depreciation 3,329 491 3,820 United Kingdom sales are shown after the elimination of inter-company sales of£2,801,000 (2006: £3,732,000). Other includes sales arising mainly in the United States. Revenue by destinationis not materially different from revenue by geographic origin. 3) Profit before taxation Profit before taxation is stated after charging: 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000 Depreciation 3,981 3,820Operating leaserentals 9,238 7,927Fees payable to thecompany's auditor forthe audit of thecompany'ssubsidiaries, pursuantto legislation 48 45Fees payable to thecompany's auditor forreview work associatedwith IFRS convergence - 40Fees payable to thecompany's auditor forthe audit of thecompany's annualaccounts 6 6Fees payable to thecompany's auditor forother servicessupplied pursuant tolegislation 16 12Other servicesprovided 35 -Loss on disposal ofproperty, plant &equipment 63 23 4) Finance income and expenses 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000Finance income - Interest receivable 192 74 - Net foreign exchange transaction gains - 55 ----------- ----------- 192 129Finance expenses - Interest payable (67) (109) - Net foreign exchange transaction losses (124) - ----------- ----------- (191) (109) 5) Earnings per share 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 No. No.Number of shares:Weighted number ofordinary sharesoutstanding 42,594,516 42,236,880Effect of dilutiveoptions 320,881 1,216,443 ----------- -----------Weighted number ofordinary sharesoutstanding - diluted 42,915,397 43,453,323 £'000 £'000Earnings:Profit for the periodbasic and diluted 14,421 12,931 Basic earnings pershare 33.9p 30.6pDiluted earnings pershare 33.6p 29.7p 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. Dividend income received by theCompany as a result of holding these own shares has been eliminated from theprofit after income tax expense and minority interests. The options exercisedduring the year and long-term incentive scheme awards distributed were of sharesheld by the 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 January 2007 28 January 2006 £'000 £'000 Final dividend paid forprior year of 8.2p perordinary share (2006: 7.3p) 3,501 3,138Interim dividend paid of4.3p per ordinary share(2006: 3.9p) 1,834 1,637 ----------- ----------- 5,335 4,775 =========== =========== A final dividend in respect of 2007 of 10.3p per share, amounting to a dividendpayable of £4,393,752 is to be proposed at the Annual General Meeting on 12 June2007. 7) Reconciliation of cash and cash equivalents per balance sheet to cashflow statement 52 weeks ended 52 weeks ended 27 January 28 January 2007 2006 £'000 £'000 Cash and cash equivalents perbalance sheet 13,513 11,381Current borrowings - (563)Non-current borrowings - (750) ----------- -----------Cash and cash equivalents percash flow statement 13,513 10,068 =========== =========== This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TED.L