Replacement Annual Results

 20 March 2014

The following amendment has been made to the 'Annual Results' announcement released on 20 March 2014 at 07:00 under RNS No. 7426C.

One change has been made to the Group Income Statement table; in regards to the Revenue figure for the 52 weeks ended 26 January 2013.

All other details remain unchanged.

Ted Baker PLC

("Ted Baker", the "Group")

Annual Results for the 52 weeks ended 25 January 2014

Highlights:

· Group revenue up 26.5% to £321.9m

· Retail sales up 24.6% to £259.1m

o UK and Europe retail sales up 20.3% to £198.6m

o US and Canada retail sales up 38.1% to £50.7m

o E-commerce sales up 55.7% to £23.2m

· Wholesale sales up 35.0% to £62.8m

· Licence income up 18.4% to £8.9m

· Proposed final dividend of 24.2p bringing total dividend to 33.7p an increase of 26.7%

· Successful launch of new e-commerce platform for the UK site in November 2013

Ray Kelvin CBE, Founder and Chief Executive, said:

"This has been another excellent year during which we have continued to build Ted Baker as a global lifestyle brand. We have further developed our presence internationally and invested in markets where we see long term growth opportunities whilst remaining unwavering in our focus on quality, design and attention to detail that underpins everything we do.

We have continued to invest in the business to support our growth, including the successful launch in November of our new e-commerce platform that provides opportunities for future growth and multi-channel developments.

I would like to take this opportunity to thank the Ted Baker team across the world. Our continued strong performance in what remains a competitive market and the ongoing development of the brand on the world stage would not have been possible without their hard work, skill and Tedication during the year."

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 362 stores and concessions worldwide, comprising of 181 in the UK, 70 in Europe, 63 in North America, 43 in the Middle East and Asia and 5 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; and Watches, all of which are underpinned by an unwavering emphasis on design, product quality and attention to detail.

Chairman's Statement

I am pleased to report that the Group has delivered a strong performance across all channels during the 52 weeks to 25 January 2014 ("the period"), resulting in a 26.5% increase in Group revenue to £321.9m (2013: £254.5m) and a 26.7% increase in profit before tax and exceptional costs to £40.0m (2013: £31.5m).

The retail division performed very well in what remained a competitive trading environment, delivering an increase in revenue of 24.6% to £259.1m (2013: £208.0m), on an increase in average square footage of 10.7%. Gross margins were largely in line with last year at 66.1% (2013: 66.2%). Performance in our established territories was strong and we continue to invest in newer markets where we see long term opportunities for the brand.

Wholesale sales for the Group increased by 35.0% to £62.8m (2013: £46.5m), which reflects a strong performance from our UK wholesale business, which includes the supply of goods to our licensed stores and our export business, and a very good performance from our US wholesale business.

Licence income from our territorial and product licences increased by 18.4% to £8.9m (2013: £7.5m).

We continue to focus on the long term development of Ted Baker as a global lifestyle brand. We developed our presence in both new and existing markets and have further invested in people and infrastructure to support our long term growth opportunities. This included the development of a new e-commerce platform, which was successfully launched in November 2013 and is a key part of our growth strategy. I am also pleased to announce that we have recently agreed with Microsoft to deploy and support Microsoft Dynamics AX business systems globally across the Group. These new systems will enable us to enhance the efficiency of the business, streamline our operations and provide a solid platform as we continue to grow and develop our business globally.

Results

Group revenue for the period rose by 26.5% to £321.9m (2013: £254.5m). The composite gross margin decreased to 61.7% (2013: 62.4%), reflecting an increase in wholesale sales as a proportion of total sales and a decrease in the wholesale margin. This decrease in wholesale margin was a result of a greater proportion of sales to our territorial licence partners, which carry a lower margin and a slight reduction in the underlying wholesale margin due to product mix in the first half of the year.

Profit before tax and exceptional costs increased by 26.7% to £40.0m (2013: £31.5m) and profit before tax increased by 34.6% to £38.9m (2013: £28.9m).

Exceptional costs incurred during the year of £1.0m (2013: £2.6m) include £0.7m of impairment charges in respect of some retail assets and £0.3m due to an onerous lease on a store where we are no longer trading.

Adjusted basic earnings per share, which exclude exceptional costs, increased by 22.3% to 69.0p (2013: 56.4p) and basic earnings per share increased by 30.5% to 67.2p (2013: 51.5p).

The Group's net borrowing position at the end of the year was £8.8m (2013: £10.0m). This reflected the on-going significant investment in capital expenditure during the year, increased inventory to support future growth and the earlier receipt of inventory into the business at the year-end to meet demand.

Dividends

The Board is recommending a final dividend of 24.2p per share (2013:18.7p), making a total for the year of 33.7p per share (2013: 26.6p per share), an increase of 26.7% on the prior year. Subject to approval by shareholders at the Annual General Meeting to be held on 10 June 2014, the final dividend will be paid on 20 June 2014 to shareholders on the register on 9 May 2014.

Financial Reporting

This year's annual report incorporates a number of new features in line with the revised UK Corporate Governance Code. These include the Board's confirmation that the report presents a fair, balanced and understandable assessment of the Group's position and prospects, and an enhanced audit report.

People

This strong performance is testament to the skill, passion and commitment of the Ted Baker team and I would like to take this opportunity to thank all of my colleagues around the world for their hard work.

On 9 January 2014, we were delighted to announce the appointment of Andrew Jennings to the Board as an independent Non-Executive Director, effective from 1 February 2014. Andrew brings a wealth of international retail experience gained over 40 years at some of the world's most respected high-end department stores. His experience will be invaluable and we are very much looking forward to his contribution as the brand grows and develops. Andrew has recently been appointed to the Audit Committee and will join the Nomination and Remuneration Committees after a suitable period of induction, in accordance with the provisions of the UK Corporate Governance Code applying to larger companies.

It is with great sadness that I have to report that Robert Breare, a colleague and former Non-Executive Chairman, passed away in July. During his 11 year tenure, Robert combined his entrepreneurial insight with an infectious enthusiasm for the business to make a major contribution to the Group during a significant period of global development. The Group acknowledges his contribution with gratitude and he is sadly missed by his colleagues.

Current Trading and Outlook

Ted Baker continues to perform well in a competitive trading environment and we remain focused on the long term development of the brand globally. Further openings are planned across all of our markets. In our newer markets, where we are investing for the longer term, we are also focussed on enhancing brand awareness.

We continue to invest in people and infrastructure to support the future growth of Ted Baker. The Group is well positioned to deal with the challenges and opportunities ahead, particularly during the implementation of the new Microsoft Dynamics AX business systems across the Group to support our future growth. We anticipate that the roll out of these systems will commence at the start of 2015 and whilst there will be an element of additional costs whilst we run down our existing systems, we will continue to ensure that our costs and commitments are controlled. Capital expenditure in the current year is anticipated to be higher than last year at £25m, in part due to the investment in new systems across the business.

Retail

Our retail business has started the new financial year well, and we are encouraged by the reaction to our Spring/Summer collections. We continue to develop our UK business with store openings planned in Glasgow and London Heathrow Terminal Two and the relocation of our outlet store in York. Following the successful launch of our new e-commerce platform, we will further develop our e-commerce site to provide a more relevant customer experience and advance the local content provided to our European customers, including language options specific to key countries.

In continental Europe, we have recently opened further concessions in France and the Netherlands with further openings planned in Spain. We will also be opening a store in Marseilles in May and an outlet store in Paris in March.

In the US, our growth continues with the opening of three new stores as well as further concessions through a leading department store. Following the successful UK launch, our US e-commerce site will also undergo migration to the new platform in the year ahead; delivering improved design, performance and personalised content that creates a more relevant customer experience.

In Asia, following a year of significant expansion, we remain focused on building brand awareness in these markets where we remain in the relatively early stages of development. We have very recently opened a concession through a leading department store in Tokyo, Japan.

Wholesale

Our wholesale business is delivering a good performance that is in line with our expectations. We anticipate further growth across all of our wholesale businesses, which should result in low double digit growth in sales in the coming year.

Licence Income

Our product and territorial licences continue to perform well and are in line with our expectations.

Our licensed partners recently opened stores in Dubai and Egypt with further openings planned in Saudi Arabia, Abu Dhabi, Taiwan and Thailand during the year.

I am pleased to announce a new agreement with a licence partner in Central America, who plans to open one new store in Panama during the year.

Group

The Group continues to perform well and we remain focused on the long term development of the Ted Baker brand. We are pleased with the achievements we have made this year and look forward to another year of progress across all markets and channels.

We intend to make our next interim management statement, covering trading since the start of the financial year in mid June 2014.

David Bernstein

Non-Executive Chairman

20 March 2014

Strategic Report

Business Model and Strategy

Ted Baker is a global lifestyle brand that operates through three main distribution channels: retail, which includes e-commerce; wholesale; and licensing, which includes territorial and product licences.

The brand has grown steadily from its origins as a single shirt specialist store in Glasgow to the global lifestyle brand it is today. We distribute through our own and licensed retail outlets, leading department stores and selected independent stores in Europe, North America, the Middle East, Asia and Australasia.

We offer 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; and Watches.

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

· considered expansion of the Ted Baker collections. We review our collections continually to ensure we anticipate and 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; 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 overseas 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 skill of our teams, licence partners and wholesale customers ("trustees").

Key Performance Indicators

We review the on-going performance of the business using key performance indicators for each of our distribution channels. Performance measures for our retail business include total sales, average and closing square foot, sales per square foot and gross retail margins. Wholesale performance measures include total sales and gross wholesale margins, and licence income is measured through year on year revenue growth.

Business Review

GLOBAL GROUP PERFORMANCE

Retail

We operate stores and concessions across the UK, continental Europe, North America and Asia and an e-commerce business based in the UK, primarily serving the UK and Europe, with a separate transactional website dedicated to the Americas and e-commerce businesses with some of our concession partners.

The retail division delivered a strong performance with sales up 24.6% to £259.1m (2013: £208.0m). Average retail square footage rose by 10.7% over the year to 303,951 sq ft (2013: 274,531 sq ft). Total retail square footage at 25 January 2014 was 316,648 sq ft (2013: 294,329 sq ft), an increase of 7.6% on the prior year. Retail sales per square foot rose 11.0% from £703 to £780.

Sales through our e-commerce business increased by 55.7% to £23.2m (2013: £14.9m). In November 2013, we launched a new e-commerce platform for our UK site, providing increased personalisation, local content for our overseas customers and opportunities for future growth and multi-channel developments.

The retail gross margins were largely in line with last year at 66.1% (2013: 66.2%).

Retail operating costs increased in line with our expectations to £122.2m (2013: £100.1m) and as a percentage of retail sales decreased to 47.1% (2013: 48.1%). This resulted in an increase in retail operating contribution to 18.9% (2013: 18.1%) of sales, following significant expansion and store openings in the previous year.

Wholesale

We currently operate a wholesale business in the UK serving countries across the world, particularly in Europe and a wholesale business in the US.

Group wholesale sales increased by 35.0% to £62.8m (2013: £46.5m), reflecting a strong performance from our UK wholesale business, which includes the supply of goods to our licensed stores and our export business and a very good performance from our US wholesale business.  Gross margins declined to 43.4% (2013: 45.2%), which was the result of a greater proportion of wholesale sales to our licensed stores, which carry a lower margin and a slight reduction in the underlying wholesale margin due to the product mix in the first half of the year.

Licence income

We operate both territorial and product licences. Our territorial licences cover the Middle East, Asia, and Australasia, through which we operate licenced retail stores and, in some territories, wholesale operations. Our product licences cover lingerie & sleepwear, fragrance, watches, footwear, eyewear, suiting, neckwear, skinwear, and childrenswear.

Licence income was up 18.4% to £8.9m (2013: £7.5m). We have seen particularly good performances from our footwear collection with our licenced partner, Pentland Group and our suiting business in North America with licence partner Jack Victor. Our licensed stores in the Middle East and Asia performed well during the period.

Collections

Ted Baker Womenswear delivered a very good performance with sales up 30.5% to £178.9m (2013: £137.1m). Womenswear benefited from a greater proportion of new space added during the period and as a result represented 55.6% of total sales (2013: 53.9%).

Ted Baker Menswear performed well with sales increasing by 21.9% to £143.0m (2013: £117.4m). Menswear represented 44.4% of total sales in the period (2013: 46.1 %).

GEOGRAPHIC PERFORMANCE

United Kingdom and Europe

Sales in our UK and Europe retail division were up 20.3% to £198.6m (2013: £165.1m). This strong performance was delivered in what remained a competitive trading environment.

Average retail square footage rose by 4.1% over the period to 212,745 sq ft (2013: 204,331 sq ft). At 25 January 2014 total retail square footage was 218,622 sq ft (2013: 210,768 sq ft) representing an increase of 3.7%. Retail sales per square foot increased by 13.0% from £738 to £834.

During the year, we opened a new store in Gatwick South, further concessions with leading department stores in France, Spain, Germany and the Netherlands and an outlet store in Belgium. We are pleased with their performances and positive about growth in these markets.

Our first two stores in Turkey were opened with a licence partner during the year and we are encouraged by their performance.

At 25 January 2014, we operated 35 stores (2013: 35), 203 concessions (2013: 183), 11 outlet stores (2013: 10) and 2 stores through a licence partner (2013: nil).

Our e-commerce business performed very well during the period with sales increasing by 51.0% to £21.6m (2013: £14.3m), with the UK site benefiting from the launch of a new platform in November 2013.

Sales from our UK wholesale division increased by 32.5% to £51.8m (2013: £39.1m) reflecting a good performance from our UK wholesale business and continued growth in our wholesale export business.

US and Canada

Sales from our US and Canadian retail division increased by 38.1% to £50.7m (2013: £36.7m), which includes sales from our US e-commerce business which is in its early stage of development.

Following a year of significant expansion, we have continued to develop the brand in this market through the opening of nine concessions in the US with a leading department store and an outlet store in Toronto, Canada. We are pleased with our performance as the brand gains increasing traction and recognition and are positive about the impact of our store on Fifth Avenue, New York in raising brand awareness and supporting the development of Ted Baker both in the US and indeed globally.

Average square footage rose by 21.8% to 72,326 sq ft (2013: 59,384 sq ft) and retail sales per square foot increased 13.2% from £607 to £687. This reflects both higher sales densities in the concessions opened during the year and an improvement in brand awareness in this market. As at 25 January 2014, we had 16 stores (2013: 16), 42 concessions (2013: 33) and 5 outlet stores (2013: 4).

Sales from our US wholesale business increased by 46.7% to £11.0m (2013: £7.5m) reflecting the continued growth of our business.

Middle East, Asia and Australasia

We are developing the Ted Baker brand across the Middle East, Asia, and Australasia. As at 25 January 2014, we, together with our licence partners, operated a total of 40 (2013: 31) stores, 7 concessions (2013: 4) and 1 outlet (2013: nil) across these territories.

In Asia, we are investing in newer markets to support the long term growth of the business. Sales from our retail division increased 59.7% to £9.9m (2013: £6.2m).

Average retail square footage rose by 74.6% to 18,880 sq ft (2013:10,816 sq ft), whilst retail sales per square foot decreased 8.2% from £572 to £525 reflecting the opening of new space.

In China we opened two further stores in Shanghai and three concessions through leading department stores. We also opened an outlet store in Shanghai. In Japan we opened our first concession in Tokyo through a leading department store and closed one concession in South Korea. As at 25 January 2014, we operated 7 stores (2013: 5 stores), 7 concessions (2013: 4) and 1 outlet (2013: nil) across Asia. We are encouraged by reactions to the brand and whilst we remain in the relatively early stages of development, we are positive about the long term opportunities in this territory.

We operate with licence partners across Asia and the Middle East. During the period, our Asia licence partners opened concessions in Indonesia and Singapore, and three stores were closed. Our licensed stores across the Middle East performed very well with openings in Lebanon, Kuwait, Abu Dhabi and Dubai during the period and one closure in Dubai. As at 25 January 2014, our licence partners operated 28 stores and concessions across the Middle East and Asia (2013: 22).

The joint venture with our Australasian licence partner continues to perform well and in March 2013 we opened a new store with our partner in Adelaide, Australia. As at 25 January 2014, we operated 5 stores in Australasia (2013: 4 stores).

Financial Review

Revenue and Gross Margin

Group revenue increased by 26.5% to £321.9m (2013: £254.5m), driven by a 24.6% increase in retail sales to £259.1m (2013: £208.0m) and a 35.0% increase in wholesale sales to £62.8m (2013: £46.5m).

The composite gross margin for the Group decreased to 61.7% (2013: 62.4%), reflecting an increase in the proportion of total sales attributable to our wholesale business. While retail margins were in line, wholesale margins were lower due to a greater proportion of wholesale sales to our territorial licence partners, which carry a lower margin, and to a slight reduction in the underlying wholesale margin due to the product mix in the first half of the year.

Operating Expenses Pre-Exceptional Costs

Distribution costs increased in line with our expectations to £123.2m (2013: £101.4m) and as a percentage of sales decreased to 38.3% (2013: 39.8%).

Administration expenses increased by 31.5% to £43.4m (2013: £33.0m). Excluding the employee performance related bonus of £3.9m (2013: £nil), administration expenses rose by 19.7% due to our growth in central functions, both in the UK and overseas and the continued deployment of our distribution and information technology infrastructures to support our growth.

Exceptional costs

The exceptional costs incurred during the year of £1.0m (2013: £2.6m) includes £0.7m of impairment charges in respect of a retail store in the Meatpacking district, New York and a retail store in Paris, both locations of which have failed to deliver on their potential. The balance of £0.3m relates to an onerous lease for our retail store in Liverpool, where we are no longer trading following the expansion of our Liverpool One Store in Merseyside.

The prior year figure included £1.6m of rental costs for our stores on Fifth Avenue, New York and in Tokyo, Japan for the periods before they commenced trading. The balance of £1.0m included an impairment charge of £0.8m in respect of some retail assets, notably a retail development in the UK that failed to deliver on its potential and the remaining £0.2m was primarily set up costs incurred for our expansion into China.

Profit Before Tax

Profit before tax and exceptional costs increased by 26.7% to £40.0m (2013: £31.5m) and profit before tax increased by 34.6% to £38.9m (2013: £28.9m).

Finance Income and Expenses

Net interest payable during the year was £1,133,000 (2013: £612,000). This increase reflects higher Group borrowing compared to the prior year as a result of the on-going significant investment in capital expenditure and increased working capital to support the Group's expansion.

The net foreign exchange gain during the year of £137,000 (2013: loss of £178,000) was due to the retranslation of monetary assets and liabilities denominated in foreign currencies.

Taxation

The Group tax charge for the year was £10.1m (2013: £7.3m), an effective tax rate of 25.9% (2012: 25.3%).This effective tax rate is higher than the UK tax rate for the period of 23.16% largely 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 2013, the UK corporation tax rate fell from 24% to 23% and will fall to 21% from 1 April 2014. A further reduction to 20% (from 1 April 2015) has been substantively enacted and therefore our closing deferred tax assets and liabilities have been re-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.

Cash Flow

The net increase in cash and cash equivalents was £1.7m (2013: £11.9m decrease). An increase in net cash generated from operating activities of £14.1m (2013: £6.2m) was offset by an increase in financing and investing activities.

Total Group working capital, which comprises inventories, trade and other receivables and trade and other payables, increased by £8.9m to £69.9m (2013: £61.0m), principally as a result of an increase in year-end inventory levels reflecting the underlying growth of our business and the earlier phasing of deliveries into the business to ensure smooth transition to the Spring/Summer season across all our markets following strong trading.

Group capital expenditure amounted to £18.1m (2013: £19.8m) and reflected the opening and refurbishment of stores, concessions and outlets, investment in business wide systems to support our future growth and a new e-commerce platform for the UK site.

Post balance sheet events

In February 2014, we mutually terminated an agreement with a licence partner earlier than anticipated. Under the terms of our licence agreement we received ‎a payment of £2.7m for compensation of royalties that would be due to us had the agreement continued to its original completion date. In line with accounting standards this will be accounted for in the 2014/15 financial statements as exceptional income.

Shareholder Return

Basic earnings per share increased by 30.5% to 67.2p (2013: 51.5p). Adjusted earnings per share, which exclude exceptional costs of £1.0m (2013: £2.6m), increased by 22.3% to 69.0p (2013: 56.4p)

The proposed final dividend of 24.2p per share will make a total for the year of 33.7p per share (2013: 26.6p per share), an increase of 26.7% on the previous year.

Free cash flow per share, which is calculated using the net cash generated from operating activities, was 73.1p (2013: 41.0p) and reflected an increase in cash generated from operating activities.

Currency Management

The most significant exposure to foreign exchange fluctuation relates to purchases made in foreign currencies, principally the US Dollar and the Euro.

A proportion of the Group's purchases are hedged in accordance with the Group's risk management policy, typically 12 months in advance. The balance of purchases is hedged naturally as the business operates internationally and income is generated in the local currencies.

At the balance sheet date, the Group had hedged its projected commitments in respect of the year ending January 2015.

Borrowing Facilities

In July 2013, the Group increased its three year committed borrowing facility to £50.0m (2013: £40.0m). The facility is a multi-currency revolving credit facility with The Royal Bank of Scotland and Barclays which is due to expire on 1 March 2015. The increase is a function of the growth in our business and is necessary to fund capital expenditure to support the Group's long term strategy. The Group is in discussions with The Royal Bank of Scotland and Barclays to arrange the renewal of the facility from 1 March 2015 and is confident that this will be agreed.

The facilities contain appropriate financial covenants and are tested on a quarterly basis. The Group monitors actual and prospective compliance with these on a regular basis.

Cautionary statement regarding forward-looking statements

This document contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, the Company's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Company operates. Forward-looking statements are based on the information available to the directors at the time of preparation of this document, and will not be updated during the year. The directors can give no assurance that these expectations will prove to be correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.

Principal Risks and Uncertainties

The Board recognises there are a number of risks and uncertainties that face the Group. The Board, with the help of the chief executive, the finance director and subsidiary directors (the "Executive Committee"), has established a structured approach to identify, assess and manage these risks and this is regularly monitored and updated by the Risk Committee. Although not exhaustive, the following list highlights some of the principal risks which are not shown in order of importance:

Group Income Statement

For the 52 weeks ended 25 January 2014

Group Statement of Comprehensive Income

For the 52 weeks ended 25 January 2014

Group Statement of Changes in Equity

For the 52 weeks ended 25 January 2014

Group Statement of Changes in Equity

For the 52 weeks ended 26 January 2013

Company Statement of Changes in Equity

For the 52 weeks ended 25 January 2014

For the 52 weeks ended 26 January 2013

Group and Company Balance Sheet

At 25 January 2014

These financial statements were approved by the Board of Directors on 20 March 2014 and were signed on its behalf by:

L D Page

Director

Group and Company Cash Flow Statement

For the 52 weeks ended 25 January 2014

Notes to the Financial Statements

1. Basis of preparation

EU law (IAS Regulation EC 1606/2002) requires that the Group financial statements, for the 52 weeks ended 25 January 2014 are prepared in accordance with International Financial Reporting Standards (IFRSs) adopted for use in the EU ("adopted IFRSs").

This financial information has been prepared on the basis of the recognition and measurement requirements of adopted IFRSs as at 25 January 2014.

The financial information set out above does not constitute the Group's statutory accounts for the 52 weeks ended 25 January 2014 or 52 weeks ended 26 January 2013. The annual financial information presented in this annual results announcement for the 52 weeks ended 25 January 2014 is based on, and is consistent with, that in the Group's audited financial statements for the 52 weeks ended 25 January 2014, and those financial statements will be delivered in May 2014. The auditor's report on those financial statements is unqualified and does not contain any statement under Section 498 (2) or (3) of the Companies Act 2006.

Statutory accounts for 26 January 2013 have been delivered to the registrar of companies. The auditors' have reported on those accounts; their reports were i) unqualified and, ii) did not contain statements under Section 498 (2) or (3) of the Companies Act 2006.

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out on pages 3 to 10. The financial position of the Group, its cash flows, liquidity position and borrowing facilities are described in the Chairman's Statement on pages 3 to 5. In addition the financial statements includes the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to credit risk and liquidity risk.

The company meets its day-to-day working capital requirements through an overdraft facility which is due for renewal on 1 March 2015. The company will open renewal negotiations with the bank in due course and has, at this stage, not sought any written commitment that the facility will be renewed. However, the company has held discussion with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that renewal may not be forthcoming on acceptable terms.

The Group's forecasts and projections, taking into account reasonably possible changes in trading performance, show that the Group has sufficient financial resources. As a consequence the Directors have a reasonable expectation that the Company and the Group are well placed to manage their business risks and to continue in operational existence for the foreseeable future, despite the current uncertain global economic outlook. Accordingly, the Directors continue to adopt the going concern basis in preparing the consolidated financial statements.

Non-GAAP performance measures

The directors believe that the profit before exceptional items and 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 items in the current year include:

· An impairment charge in respect of two retail stores; one in the New York's Meatpacking district, and one in Paris.

· An onerous lease in relation to a retail store in Liverpool we are no longer trading due to store relocation. This space will be sub-let until expiry of the lease.

Significant accounting policies

Except as described below, the accounting policies applied by the Group in this annual results announcement are the same as those applied by the Group in its consolidated financial statements for the 52 weeks ended 26 January 2013.

There were no revisions to adopted IFRS that became applicable in the period which had a significant impact on the Group's financial statements.

The Group does not consider that any other standards, amendments or interpretations issued by the IASB, but not yet applicable, will have a significant impact on the financial statements in future years.

2. Segment information

The Group has three reportable segments; retail, wholesale and licence income.

For each of the three segments, the Group's chief operating decision maker (the "Board") reviews internal management reports on a four weekly basis.

Information regarding the results of each reportable segment is included below. Performance for the retail segment is measured based on operating contribution, whereas performance of the wholesale segment is measured based on gross profit and performance of the licence segment is measured based on royalty income, as included in the internal management reports that are reviewed by the Board.

Segment results are used to measure performance as management believes that such information is the most relevant in evaluating the performance of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm's length basis.

a) Segment revenue and segment result

Wholesale sales are shown after the elimination of inter-company sales of £38,397,000 (2013: £28,714,000).

b) Geographical information

*Non-current assets exclude deferred tax assets.

c) Revenue by collection

3. Profit before tax

The exceptional costs incurred during the year of £1.0m (2013: £2.6m) 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, both locations of which have failed to deliver on their potential. The balance of £0.3m relates to an onerous lease for one of our Liverpool based stores, where we have ceased trading following the expansion of our Liverpool One store in Merseyside.

The exceptional costs incurred during the 52 weeks to 26 January 2013 were in respect of £1.6m rent paid in advance for stores that did not commence trading until the first half of the period. The balance of £1.0m includes an impairment charge of £0.8m in respect of some retail assets, notably a retail development in the UK that failed to deliver on its potential. The remaining £0.2m related primarily to set up costs incurred for our expansion into China.

4. Finance income and expenses

5. Income tax expense

a) The tax charge comprises

b) Deferred tax movement by type

c) Factors affecting the tax charge for the period

The tax assessed for the period is higher than the tax calculated at domestic rates applicable to profits in the respective countries. The differences are explained below.

d) Deferred and current tax recognised directly in equity

There was a reduction in the UK corporation tax rate from 24% to 23% with effect from 1 April 2013. There are further announced reductions such that the headline rate will decrease to 20% by 1 April 2015.

As the deferred tax assets and liabilities should be recognised based on the corporation tax rate substantively enacted at the balance sheet date, the assets and liabilities on UK operations have been recognised at a rate of 20%. Those assets and liabilities arising on foreign operations have been recognised at the applicable overseas tax rates.

6. Dividends per share

A final dividend in respect of 2014 of 24.2p per share, amounting to a dividend payable of £10,563,081, is to be proposed at the Annual General Meeting on 10 June 2014.

7. Earnings per share

Own shares held by the Ted Baker Group Employee Benefit Trust, the Ted Baker 1998 Employee Benefit Trust and treasury shares have been eliminated from the weighted average number of ordinary shares. The options exercised during the year, and conditional share awards distributed, if they vest, are covered by shares held either in treasury or by these Trusts.

Diluted earnings per share have been calculated using additional ordinary shares of 5p each available under the 1997 Unapproved Share Option Scheme, the 1997 Executive Share Option Scheme, the Ted Baker Performance Share Plan and the Ted Baker Plc Long Term Incentive Plan 2013.

There were no share related events after the balance sheet date that may affect earnings per share.

* Adjusted profit for the period and adjusted earnings per share are shown before the exceptional costs (net of tax) of £775,000 (2013: £2,038,000).

8. Intangible assets

The key money brought forward relates to the right to lease stores that have a guaranteed residual value. The guaranteed value arises because the next tenants based on current market conditions are required to pay these amounts to the Group. Due to the nature of this, the assets are considered recoverable and therefore not amortised. The current market rate rents, for both stores included within the intangible assets, continue to be above the rent under the lease terms and hence no decline in values is foreseen.

The additions during the year relate to IT systems for the new e-commerce platform for the UK site, ready for use in November 2013 and for the Microsoft Dynamics AX systems which will be implemented across the group. The e-commerce costs are being amortised over 4 years from November 2013, when the new platform was ready for use. The Microsoft systems project remains in its development phase, therefore no amortisation has been charged during the year. Amortisation on this asset will commence when these systems are ready for use.

9. Property, plant and equipment