Oasis Stores PLC - Final Results
07 April 1999 - 5:31PM
UK Regulatory
RNS No 2619k
OASIS STORES PLC
7 April 1999
Contacts:
Oasis Stores Plc Michael Bennett
0171 452 1000 Dominic Lavelle
Financial Dynamics Tom Baldock
0171 831 3113
OASIS STORES PLC
Preliminary Results Announcement
For the 52 weeks ended 30th January, 1999
Oasis Stores Plc, the women's fashion retailer, today announces preliminary
results for the 52 weeks ended 30th January, 1999.
Highlights:
- Turnover increased by 20% to #111.8m (1998: #92.9m)
- Oasis like-for-like sales up by 9%
- Operating profit up 33% to #11.7m (1998: #8.8m)
- Profit before tax increased by 25% to #13.0m (1998: #10.4m)
- Earnings per share up 27% to 16.71p per share (1998:13.12p)
- Total dividend for the year up 10% to 8.25 pence (1998: 7.5 pence)
- Total number of Oasis outlets increased from 127 to 137
- New store look very positively received by customers; to be introduced
across all outlets during 1999
- Development of Coast brand progressing to plan
- Oasis storecard launched in October
Commenting on the results, Chairman Michael Bennett said:
"The current year has started well, with Oasis like-for-like sales up 6% and
total sales up 17% for the first 8 weeks.
The style, value and quality of our product continues to attract a growing
customer base.
I am delighted with the results and I am particularly pleased to see further
growth during the first 8 weeks of the new financial year.
The new store look has been very positively received by our customers and
this is reflected in much stronger than anticipated sales in the four stores
that have the look. I am looking forward to the company building on the
successful start we have made to the current year."
CHAIRMAN'S STATEMENT
AND FINANCIAL SUMMARY
Introduction
I am pleased to report that the confidence I expressed last year in the
strength of the Oasis brand has been justified by an improved performance for
the year to January 1999.
Overall sales growth was strong, although it was undoubtedly impacted by much-
publicised pre-Christmas discounting among other fashion retailers in the
crucial trading month of December. Turnover increased by 20% to #111.8m
(1998: #92.9m) including a 17% increase in Oasis retail sales to #104.0m
(1998: #88.9m). Oasis like-for-like sales increased by 9%.
Operating profit was up 33% to #11.7m (1998: #8.8m) and pre-tax profit
increased by 25% from #10.4m to #13.0m. Earnings per share grew by 27% from
13.12p to 16.71p per share.
Capital expenditure totalled #10.2m during the period (1998: #8.3m), with
#1.8m invested in Coast and #8.4m in Oasis. The new Oasis stores cost #2.9m
and #2.1m was spent refurbishing existing stores. Expenditure on major
computer systems was #1.9m (1998: #2.4m) and the cost of the extension to the
Distribution Centre at Stanton Harcourt was #1.0m.
The year-end cash position was #3.8m (1998: #7.1m). Stock levels rose in line
with our expectation to #14.9m, up on the half year position by #0.3m.
Operating Summary
Oasis
We opened 12 new stores in the period and two stores were closed giving a net
addition of 10 in the number of outlets, increasing the total number to 137.
Trading square footage at the end of the period was 10% higher at 175,000
(1998: 159,000 sq.ft). Average trading square footage was 11% higher at
165,000. Average sales per square foot stood at #630 (1998: #600).
Gross margins grew from 51.4% to 51.8%. Distribution costs were #35.8m, an
increase on last year of 17%, in line with growth in sales. Net
administration costs were #6.8m, unchanged from last year.
Three new stores have opened since the year-end, including 2 branches at
Bluewater and one relocation. Nine other, more spacious, new stores are
planned for the remainder of the year, including four further relocations
into larger trading space.
We have developed an improved look for our outlets that enhances the shop
environment and added new services to improve our customers' shopping
experience. The Oasis storecard, for example, has proved particularly
successful, its high take up enabling us to achieve greater penetration of
our customer base.
We plan to fully refit 4 existing stores and all new outlets with the
enhanced look and will be introducing the new logo and design elements across
all other outlets, packaging and point of sale material throughout this year.
Research shows that the new format is being well received by our customers
and initial sales confirm this.
United Kingdom and Republic of Ireland
On a 52-week basis, UK like-for-like sales increased by 8% and overall sales
grew by 17% to #92.3m. We opened 11 new stores, comprising 6 new branches,
including our first branch in Northern Ireland and 5 new concessions. We
closed one concession, resulting in a net increase in UK outlets of 10, from
105 to 115. Ireland continued to grow strongly, with overall sales up 38% to
#8.0m on a 52-week basis. One new store opened in the second half, increasing
the number of stores to 7.
Overseas
On a 52 week basis, overall sales to Germany grew by 42% to #3.7m. No new
stores were opened during the period. The concession in Neuss was closed
early in the period, reducing the number of stores to 15.
Our licensed overseas operations continued to increase their contribution.
Four new franchise stores were opened, including 2 in Taiwan our first in
Norway and a flagship store in Kuwait, increasing the total number of stores
to 25. Income in the period was #0.8m, including #0.2m from our mail order
agreement. We have also successfully launched a sourcing office in Hong
Kong, and feel confident it will make a growing contribution to our
competitiveness.
This year our first Japanese branch opens in Tokyo and an additional branch
will open in Lisbon, Portugal.
Accessories
On 16th March, 1999, we opened a second Accessories outlet in Bluewater to
add to our existing store in Manchester, and we plan to open further stores
during this year. In addition we will be introducing the Accessories format
within several of our larger stores, each of which will increase square
footage dedicated to accessories.
Mail Order
We have continued our involvement with Grattan in mail order. Sales have
shown encouraging growth and we are considering currently how this side of
the business can be developed further.
Coast
In line with our expectations, Coast produced a small operating loss on sales
of #3.7m. When the business was acquired in April 1998 it had one branch and
28 concessions. During the period, four further stores and three concessions
were opened and 9 concessions were closed, reducing the number of stores to
27. One new store has already opened since the year-end, at Bluewater, and a
further 2 openings are planned this year.
Much hard work has gone into the brand and we are concentrating our efforts
this year on widening the product mix, improving the quality of our portfolio
of outlets by opening and closing outlets as appropriate, strengthening the
team and eliminating losses.
Management Changes
During the year Jane Woolf, Buying Director was appointed to the main board
in recognition of her major contribution to Oasis' development. In addition,
we have recently appointed a Retail Director and a Marketing Director.
Dividend
The board is proposing a final dividend of 5.6 pence per share (1998: 5.1
pence) which will be paid on 23rd July, 1999. This brings the total dividend
per share to 8.25 pence (1998: 7.5 pence), an increase of 10%.
Outlook
The current year has started positively, with like-for-like sales in the
first 8 weeks of the year ahead by 6% and total sales up by 17%.
The new store look, branch openings, the introduction of fragrances, our
first licensing agreement for Oasis watches, and the further development and
expansion of Coast provide us with many opportunities to increase our sales
and profitability.
Last year's much improved performance gives me confidence that we will build
on our progress to date.
Profit and Loss Account for the 52 weeks ended 30th January, 1999
1999 1998
#m #m
Turnover 111.8 92.9
Cost of sales (55.3) (46.6)
Gross profit 56.5 46.3
Distribution costs (37.6) (30.7)
Administrative expenses (7.2) (6.8)
Other operating income 0.0 0.0
Operating profit 11.7 8.8
Interest receivable and
similar income 1.3 1.6
Interest payable and
similar charges (0.0) (0.0)
Profit on ordinary activities
before taxation 13.0 10.4
Taxation (4.2) (3.5)
Profit for the financial period 8.8 6.9
and profit on ordinary
activities after taxation
Dividend (4.4) (3.9)
Retained profit for the period 4.4 3.0
1999 1998
pence pence
Earnings per share - basic 16.71 13.12
Other than the profit for the period, which was entirely derived from
continuing activities, there were no recognised gains or losses during the
current and previous period.
Historical cost profits are identical to those profits disclosed above.
Balance Sheet as at 30th January, 1999
1999 1998
#m #m
Fixed Assets
Intangible fixed assets - goodwill 0.2 -
Tangible fixed assets 21.4 16.8
Total 21.6 16.8
Current assets
Stocks 14.9 9.9
Debtors 5.3 4.8
Investments 0.9 -
Short term deposits and cash 3.8 7.1
24.9 21.8
Creditors
Amounts falling due
within one year (16.5) (13.2)
Net current assets 8.4 8.6
Total assets less
current liabilities 30.0 25.4
Creditors
Amounts falling due after (0.2) (0.2)
more than one year
Provisions for liabilities
and charges (0.5) (0.3)
Net Assets 29.3 24.9
Capital and reserves
Called up share capital 5.2 5.2
Profit and loss account 24.1 19.7
Equity shareholders' funds 29.3 24.9
Cash Flow Statement
For the period ended 30th January, 1999
1999 1998
#m #m
Net cash inflow from operating 13.7 9.4
activities
Returns on investments and servicing
of finance
Interest received 1.3 1.6
Interest paid (0.0) (0.0)
Net cash inflow from returns
on investments and servicing
of finance 1.3 1.6
Tax paid (3.5) (5.6)
Capital expenditure and financial
investments
Purchase of fixed assets (10.2) (7.8)
Sale of tangible fixed assets 0.4 0.2
Purchase of current asset investment (0.9) -
Net cash outflow from
capital expenditure and financial (10.7) (7.6)
investments
Equity dividends paid in the period (4.1) (3.8)
Decrease in cash (3.3) (6.0)
NOTES TO THE ACCOUNTS
1. TURNOVER AND OPERATING PROFIT
Turnover arises from the sales by the Company to third parties, net of
discounts and value added tax, and royalty income received from overseas
licensees.
1999 1999 1998
#m #m #m
GEOGRAPHICAL ANALYSIS TURNOVER
United Kingdom
- Oasis retail 92.3 80.3
- Oasis mail order 0.2
- Coast retail 3.7
- Total 96.2
Ireland - Oasis retail 8.0 5.9
Germany - Oasis retail 3.7 2.7
Rest of Europe, Middle 3.9 4.0
and Far East - overseas licensing 111.8 92.9
Turnover by country of destination is not materially different from turnover
by country of operation. Turnover arises entirely from fashion retailing and
may also be analysed as follows:
Turnover
European retailing
- Oasis retail 104.0 88.9
- Oasis mail order 0.2
- Coast retail 3.7
- Total 107.9
Overseas licensing 3.9 4.0
111.8 92.9
Operating profit before unallocated
net expenses:
European retailing 18.3 15.0
Overseas licensing 0.6 0.6
18.9 15.6
Unallocated net expenses (7.2) (6.8)
Operating profit 11.7 8.8
1999 1998
#m #m
RECONCILIATION OF OPERATING
PROFIT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
Operating profit 11.7 8.8
Depreciation charges 4.7 3.9
Loss on sale of fixed assets 0.3 0.1
(Increase) in stocks (5.0) (1.8)
(Increase) in debtors (1.2) (0.9)
Increase/(decrease) in creditors 3.2 (0.7)
Net cash inflow from operating 13.7 9.4
activities
The Directors recommend a final dividend of 5.60 pence per share (1998:
5.10p) which added to the interim dividend of 2.65 pence (1998: 2.40p, gives
a total dividend payable for the year of 8.25 pence per share (1998: 7.50p).
The final dividend will be paid on 23rd July, 1999 to shareholders whose
names appear on the Register of Members at the close of business on 18th
June, 1999. The Annual General Meeting of Oasis Stores Plc will be held at
the offices of SG Securities (London) Ltd, Exchange House, Primrose Street,
London EC2A 2DD on 8th June, 1999 at 11.00am.
Copies of the Annual Report & Accounts will be sent to shareholders in due
course and additional copies will be available from the Company's registered
office: 13-16 Lakeside, Stanton Harcourt, Witney, Oxon, OX8 1SL.
Earnings per share
The calculation of basic earnings per share is based on the profit on
ordinary activities after taxation of #8,765,000 (1998: #6,884,000) and a
weighted average of 52,457,175 ordinary shares in issue during the year
(1998: 52,457,175).
Financial Statements
The financial information for the fifty-two weeks ended 30th January, 1999 is
unaudited and does not constitute full accounts within the meaning of Section
240 of the Companies act 1985. The financial information for the fifty three
weeks ended 31st January, 1998 has been extracted from the full accounts for
that period which have been delivered to the Registrar of Companies and on
which the auditors have issued an unqualified audit report.
END
FR NFXLXEEXNEEN
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