TIDMTED
RNS Number : 3068B
Ted Baker PLC
06 October 2015
Ted Baker Plc
("Ted Baker", the "Group")
Interim Results Announcement for the 28 weeks ended 15 August
2015
'Continued strong performance across all channels'
28 weeks 28 weeks
ended ended
Highlights 15 August 9 August
2015 2014 Change
Group Revenue GBP226.8m GBP182.2m 24.5%
Profit Before Tax and Exceptional Items GBP17.8m GBP14.4m 23.4%
Profit Before Tax GBP17.8m GBP15.6m 14.6%
Adjusted Basic EPS* 29.8p 24.2p 23.1%
Basic EPS 29.8p 26.1p 14.2%
Interim Dividend 13.2p 11.3p 16.8%
*Adjusted EPS is shown before exceptional items (net of tax)
-- Retail sales including e-commerce up 20.1% to GBP168.2m on a
6.6% increase in average square footage
-- UK and Europe retail sales up 14.7% to GBP120.9m
-- North America retail sales up 37.4% to GBP39.7m
-- Asia retail sales up 31.0% to GBP7.6m
-- E-commerce sales up 63.6% to GBP22.9m
-- Planned expansion continued with:
-- A new store in each of the UK, Canada and Hong Kong and one new outlet in South Korea
-- Further concessions with leading department stores across the UK and Europe, the US and Asia
-- Licensee store openings in Azerbaijan, Dubai, Qatar, Saudi Arabia, Taiwan and Thailand
-- Wholesale sales up 39.1% to GBP58.6m
-- Licence income up 16.7% to GBP6.4m
Commenting, Ray Kelvin CBE, Founder and Chief Executive,
said:
"This strong performance across all channels and territories is
testament to the growing strength of Ted Baker as a leading global
lifestyle brand. Through the passion of our team, supported by
on-going and careful investment in the brand, we continue to
attract customers both in the UK and overseas, who recognise our
unwavering focus on quality, design and attention to detail. I
would like to take this opportunity to thank all of the teams
across the world for their hard work and commitment."
Enquiries:
Ted Baker Plc Tel: 020 7796 4133
Ray Kelvin CBE, Founder and Chief Executive
Lindsay Page, Chief Operating Officer and Group Finance Director
Charles Anderson, Company Secretary
Hudson Sandler Tel: 020 7796 4133
Alex Brennan
Michael Sandler
Jessica Reid
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 416 stores, concessions and outlets worldwide
comprising: 184 in the UK; 86 in continental Europe; 79 in North
America; 60 in the Middle East and Asia; and 7 in Australasia.
Ted Baker offers a wide range of collections including:
Menswear; Womenswear; Global; Phormal; Endurance; Accessories;
Lingerie and Sleepwear; Childrenswear; Fragrance and Skinwear;
Footwear; Neckwear; Eyewear; Watches; Jewellery; Luggage; Audio;
and Homeware, all of which are underpinned by an unwavering
emphasis on design, product quality and attention to detail.
Development of the Brand
Our strategy is to develop as a leading global lifestyle brand,
based on three main elements:
-- considered expansion of our collections. We review our
collections continually to ensure we 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
(including e-commerce), 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 existing and new
international 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 dedication of our teams, licence partners and
wholesale customers.
Chairman's Statement
I am pleased to report a strong performance for the first half
of the year across all channels and established territories as we
continue the global development of the Ted Baker brand. This
resulted in a 24.5% increase in Group revenue for the 28 weeks
ended 15 August 2015 (the "period") to GBP226.8m (2014: GBP182.2m)
(23.3% in constant currency) and a 23.4% increase in profit before
tax and exceptional items to GBP17.8m (2014: GBP14.4m).
The retail division performed well, with sales up 20.1% to
GBP168.2m (19.4% in constant currency) on a 6.6% increase in
average retail square footage. Trading across our established
markets was strong and investment continues to develop brand
awareness in newer markets. Geographic expansion continued in line
with plans with openings across all territories. Our e-commerce
business has performed very well and we are encouraged by the
contributions following the launch of the Canadian website in
November 2014 and of the Australian website in June 2015.
Wholesale sales increased by 39.1% to GBP58.6m (36.2% in
constant currency), with a strong performance from both our UK and
North American businesses. In North America in particular, sales
benefited from a strong start to the season and changes to buying
patterns, which have brought forward some Autumn / Winter
orders.
Licence income increased by 16.7% to GBP6.4m as both our product
and territorial licences continued to perform well. During the
period our licence partners opened stores in Azerbaijan, Dubai,
Qatar and Saudi Arabia in the Middle East, and Taiwan and Thailand
in Asia.
We continue to invest in our people and infrastructure to
support the long term development of the Ted Baker brand globally.
The first two phases of the Microsoft Dynamics AX system were
launched successfully in the period and implementation across the
Group is in line with our plans. We are confident this will create
new opportunities to improve the efficiency of the business and
streamline our operations.
Financial Results
Group revenue increased by 24.5% to GBP226.8m (2014: GBP182.2m)
for the 28 weeks ended 15 August 2015. The composite gross margin
fell to 57.6% (2014: 58.5%), partly a result of a change in sales
mix between wholesale and retail sales and partly due to a decrease
in the wholesale margin arising from a higher proportion of sales
to our licensed stores.
Distribution costs, which largely comprise the cost of retail
stores, outlets and concessions, increased by 20.4% to GBP84.6m
(2014: GBP70.2m). As a percentage of sales they decreased to 37.3%
(2014: 38.6%).
Administrative expenses before exceptional costs, including the
performance related bonus provision, increased by 26.7% to GBP33.7m
(2014: GBP26.6m) due to the growth of our central operations and
the continued investment in our infrastructure to support our
international expansion. Excluding the employee performance related
bonus provision of GBP1.4m (2014: GBP1.4m), administrative expenses
before exceptional costs increased by 28.2% to GBP32.3m (2014:
25.2m) and as a percentage of sales increased to 14.2% (2014:
13.8%). This reflects the dual systems running costs incurred
during the implementation of Microsoft Dynamics AX, and our
investment in digital innovation which is central to our global
brand strategy.
There were no amounts recognised as exceptional costs or income
during the period. Exceptional costs in the 28 weeks ended 9 August
2014 of GBP2.6m related to a legal dispute with a previous insurer.
Full provision for all costs incurred and judged payable by the
Company was made in the accounts for the 53 weeks ended 31 January
2015. Exceptional income of GBP3.7m in the 28 weeks ended 9 August
2014 related to the early termination of a licence partner
agreement.
Profit before tax and exceptional items increased by 23.4% to
GBP17.8m (2014: 14.4m). Profit before tax increased by 14.6% to
GBP17.8m (2014: GBP15.6m). Adjusted basic earnings per share,
excluding exceptional items, increased by 23.1% to 29.8p (2014:
24.2p) whilst basic earnings per share increased by 14.2% to 29.8p
(2014: 26.1p).
Net interest payable during the period was GBP0.6m (2014:
GBP0.6m). The net foreign exchange loss during the period of
GBP0.7m (2014: loss of GBP0.1m) was due to the translation of
monetary assets and liabilities denominated in foreign
currencies.
The effective tax rate of 26.5% (2015 full year effective rate:
26.5%) is higher than the UK corporation tax rate. Whilst
benefiting from the reduction in the UK corporation tax rate from
21% to 20% from 1 April 2015, this has been more than offset by
higher overseas tax rates and the non-recognition of losses in some
overseas territories where the businesses are still in their
development phase.
The net decrease in cash and cash equivalents of GBP34.7m (2014:
GBP23.8m) primarily reflected an increase in working capital and
further capital expenditure to support our long term
development.
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Total working capital, which comprises inventories, trade and
other receivables and trade and other payables, increased by
GBP26.6m to GBP114.3m (2014: GBP87.7m). This was mainly driven by
an increase in inventories of GBP23.1m to GBP115.0m (2014:
GBP91.9m) reflecting the growth of our business, stock on hand for
our wholesale customers and licence partners, and some earlier
phasing of stock deliveries between the first and second half of
the year.
Capital expenditure of GBP17.7m (2014: GBP13.8m) comprises the
costs of opening and refurbishing stores and concessions in both
new and existing markets. It also reflects the on-going investment
in the Microsoft Dynamics AX systems across the business to support
our growth. We expect full year capital expenditure to be in line
with previous guidance of GBP31.0m, subject to the timing of
planned openings in the early stages of next year.
Borrowing Facilities
During the period, the Group agreed an extension of its
multi-currency revolving credit facility with the Royal Bank of
Scotland and Barclays. A new agreement was signed on 15 July 2015
which increased the Group's committed borrowing facility from
GBP65m to GBP85m.
This increased facility provides the resources to fund the
planned capital expenditure to support the Group's long term growth
strategy. The new borrowing facility is on similar terms and
contains similar covenants to the previous facility.
Dividends
The Board has declared an interim dividend of 13.2p (2014:
11.3p), representing an increase of 16.8%, which will be payable on
20 November 2015 to shareholders on the register at the close of
business on 16 October 2015.
People
The strong performance in the period is testament to our
talented teams across the world, whose commitment and passion are
key to our success. I would like to take this opportunity to thank
all of my colleagues for their continued hard work as we continue
to grow the business and develop Ted Baker as a global lifestyle
brand.
Global Group Performance
28 weeks 28 weeks Variance Constant
ended ended currency
15 August 9 August variance
2015 2014
----------- ------------------------- ----------- ---------- --------- ----------
Group Revenue GBP226.8m GBP182.2m 24.5% 23.3%
----------- ------------------------- ----------- ---------- --------- ----------
Gross Margin 57.6% 58.5% (0.9) -
------------------------------------- ----------- ---------- --------- ----------
Operating contribution* 8.3% 8.2% 0.1 -
------------------------------------- ----------- ---------- --------- ----------
Profit before
tax and exceptional
items as a % of
revenue 7.9% 7.9% - -
------------------------------------- ----------- ---------- --------- ----------
Retail Revenue GBP168.2m GBP140.0m 20.1% 19.4%
----------- ------------------------- ----------- ---------- --------- ----------
Gross Margin 64.0% 64.0% - -
------------------------------------- ----------- ---------- --------- ----------
Average square
footage** 347,793 326,403 6.6% -
------------------------------------- ----------- ---------- --------- ----------
Closing square
footage** 355,324 331,524 7.2% -
------------------------------------- ----------- ---------- --------- ----------
Sales per square
foot*** GBP418 GBP386 8.3% 7.6%
------------------------------------- ----------- ---------- --------- ----------
Wholesale Revenue GBP58.6m GBP42.1m 39.1% 36.2%
----------- ------------------------- ----------- ---------- --------- ----------
Gross margin 39.2% 40.5% (1.3) -
------------------------------------- ----------- ---------- --------- ----------
Licence Revenue GBP6.4m GBP5.5m 16.7% -
income
----------- ------------------------- ----------- ---------- --------- ----------
*Operating contribution is defined as operating profit before
exceptional items as a percentage of revenue.
**Excludes licensed partner stores
*** Excludes e-commerce sales
Retail
We operate stores and concessions across the UK, Europe, North
America and Asia and an e-commerce business based in the UK,
primarily serving the UK and Europe, with separate US and Canadian
sites dedicated to North America and a separate site serving
Australia. We also have e-commerce businesses with some of our
concession partners.
Retail sales were up 20.1% to GBP168.2m (2014: GBP140.0m) (19.4%
in constant currency) with average retail square footage increasing
by 6.6% to 347,793 sq ft (2014: 326,403 sq ft). Retail sales per
square foot increased 8.3% to GBP418 (2014: GBP386) (7.6% in
constant currency).
Our e-commerce business delivered another period of very strong
growth with a 63.6% increase in sales to GBP22.9m (2014: GBP14.0m).
Sales have benefited from improved website design with easy to use
navigation which is also optimised for mobile use. Additionally,
the Canadian website launched in November 2014 and the Australian
site launched in June 2015 have delivered encouraging performances
so far.
The retail gross margin remained constant at 64.0% (2014:
64.0%), despite an increase in our outlet sales as a proportion of
total sales.
Retail operating costs increased in line with our expectations
to GBP83.6m (2014: GBP70.1m), and as a percentage of retail sales
reduced slightly to 49.7% (2014: 50.0%).
Wholesale
We operate a wholesale business in the UK serving countries
across the world, particularly in Europe, as well as supplying
goods to our licensed stores. In addition, we operate a wholesale
business in North America.
Wholesale sales were 39.1% above the same period last year at
GBP58.6m (2014: GBP42.1m) (36.2% in constant currency) reflecting a
strong performance from our UK and North American businesses. Our
North American business benefited from changes to buying patterns,
which have brought forward some orders. Accordingly, we do not
expect this level of growth to continue in the second half of this
year.
The wholesale gross margin fell to 39.2% (2014: 40.5%). This was
largely due to a proportionate increase in sales to our licensed
stores, which carry a lower margin.
Licence Income
We operate both territorial and product licences. Our
territorial licences cover selected countries in Europe, North
America, the Middle East, Asia and Australasia, where our partners
operate licensed retail stores and, in some territories, wholesale
operations. Our product licences cover: audio; bicycles;
childrenswear; eyewear; footwear; fragrance and skinwear; gifting
and stationery; homeware; jewellery; lingerie and sleepwear;
luggage; men's suits; neckwear; tiles; and watches.
Licence income was up 16.7% to GBP6.4m (2014: GBP5.5m) with both
product and territorial licences performing well. We saw good
performances from our product licensees, in particular
childrenswear, eyewear, footwear and suiting. Our newly launched
bedding and crockery ranges have also been well received. Our
licensed stores in Saudi Arabia performed particularly well during
the period with further openings planned as a result.
Collections
Ted Baker Womenswear performed well with sales up 22.5% to
GBP130.9m (2014: GBP106.9m). Ted Baker Menswear delivered a very
good performance with sales increasing 27.4% to GBP95.9m (2014:
GBP75.3m). We are very pleased with the positive reactions to the
collections both in the UK and internationally.
Womenswear represented 57.7% of total sales (2014: 58.7%) during
the period and Menswear represented 42.3% of total sales (2014:
41.3%), which is broadly representative of the division in retail
selling space.
Geographic Performance
United Kingdom & Europe
28 weeks 28 weeks Variance Constant
ended ended currency
15 August 9 August variance
2015 2014
------------------- ----------- ---------- --------- ----------
Retail Revenue* GBP120.9m GBP105.4m 14.7% 17.0%
------------------- ----------- ---------- --------- ----------
Average square
footage* 233,435 225,662 3.4% -
------------------- ----------- ---------- --------- ----------
Closing square
footage* 235,633 229,092 2.9% -
------------------- ----------- ---------- --------- ----------
Sales per square
foot** GBP432 GBP410 5.4% 7.8%
------------------- ----------- ---------- --------- ----------
Wholesale revenue GBP43.9m GBP34.3m 28.0% 28.0%
------------------- ----------- ---------- --------- ----------
*Excludes licence partner stores
** Excludes e-commerce sales
Retail sales in the period in the UK and Europe increased 14.7%
to GBP120.9m (2014: GBP105.4m) (17.0% in constant currency)
reflecting a strong performance in our established UK market and a
very good performance in continental Europe where we continue to
expand.
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During the period, we opened a store dedicated to showcasing our
licensed product range, Ted Baker & Moore, in Spitalfields
London and closed one store. We opened further concessions with
premium department stores in the UK, France, Germany and the
Netherlands. We are pleased with their performances and remain
positive about growth opportunities for the brand in these
markets.
As at 15 August 2015, we operated 37 own stores (2014: 37), 3
partner stores (2014: 2), 218 concessions (2014: 209) and 12
outlets (2014: 12).
Our e-commerce business performed very well during the period
with sales increasing by 56.3% to GBP20.0m (2014: GBP12.8m)
reflecting continuing growth in the UK and the benefit of the
improved website design.
Sales from our UK wholesale business increased 28.0% to GBP43.9m
(2014: GBP34.3m). This strong performance reflects the supply of
product to our licensed stores, and continued growth in our
wholesale export business.
North America
28 weeks 28 weeks Variance Constant
ended ended currency
15 August 9 August variance
2015 2014
------------------------- ----------- ---------- --------- ----------
Retail Revenue* GBP39.7m GBP28.9m 37.4% 27.3%
------------------------- ----------- ---------- --------- ----------
Average square footage* 89,405 79,138 13.0% -
------------------------- ----------- ---------- --------- ----------
Closing square footage* 92,585 81,433 13.7% -
------------------------- ----------- ---------- --------- ----------
Sales per square
foot** GBP412 GBP350 17.7% 9.2%
------------------------- ----------- ---------- --------- ----------
Wholesale revenue GBP14.6m GBP7.5m 94.7% 79.3%
------------------------- ----------- ---------- --------- ----------
*Excludes licence partner stores
** Excludes e-commerce sales
We are very pleased with our progress across retail and
wholesale in North America. Both channels performed very well and
we are confident that the Ted Baker brand is continuing to gain
traction and recognition in this territory.
Sales from our retail division increased by 37.4% to GBP39.7m
(2014: GBP28.9m) (27.3% in constant currency). During the period,
expansion continued in Canada, with a new store in Vancouver, and
further concessions through a leading department store in the
US.
As at 15 August 2015, we operated 21 own stores (2014: 17), 1
partner store (2014: nil), 51 concessions (2014: 44) and 6 outlets
(2014: 6).
Our e-commerce business delivered a strong performance with
sales increasing 140.9% (119.8% constant currency). This reflects
the benefit of the new website design and increased online sales
through a concession partner. The Canadian website, launched in
November 2014, has also delivered an encouraging performance so
far.
Sales from our North American wholesale business increased by
94.7% to GBP14.6m (2014: GBP7.5m) (79.3% in constant currency),
reflecting the increased growth and brand recognition in this
territory. This business also benefited from changes to buying
patterns, which have brought forward some orders. Accordingly, we
do not expect this level of growth to continue in the second half
of this year.
Middle East, Asia & Australasia
28 weeks 28 weeks Variance Constant
ended ended currency
15 August 9 August variance
2015 2014
------------------------ ----------- ---------- --------- ----------
Retail Revenue GBP7.6m GBP5.8m 31.0% 24.2%
------------------------ ----------- ---------- --------- ----------
Average square footage 24,953 21,603 15.5% -
------------------------ ----------- ---------- --------- ----------
Closing square footage 27,106 20,999 29.1% -
------------------------ ----------- ---------- --------- ----------
Sales per square
foot GBP306 GBP267 14.6% 7.5%
------------------------ ----------- ---------- --------- ----------
Wholesale revenue GBP0.1m GBP0.3m (66.7%) (69.7%)
------------------------ ----------- ---------- --------- ----------
We continue to develop the Ted Baker brand across the Middle
East, Asia and Australasia through our retail and licensing
channels. We work closely with our territorial partners to ensure
the visual merchandising of the licensed stores and training of the
teams is reflective of the Ted Baker culture.
As has been widely reported, the trading environment in China
and Hong Kong continues to be challenging. We are in the early
stages of investment and remain positive about the long term
opportunities to develop the brand in this territory. Retail sales
in Asia increased 31.0% to GBP7.6m (2014: GBP5.8m) (24.2% in
constant currency). During the period, we opened our first street
level store in Hong Kong in Causeway Bay, our first outlet in South
Korea and a concession in China.
As at 15 August 2015, we operated 8 own stores in Asia (2014:
7), 18 partner stores (2014: 2), 8 concessions (2014: 7) and 3
outlets (2014: 1).
Our licensed stores across the Middle East and Asia continue to
perform well. In the Middle East, our licence partners opened a new
store in Azerbaijan, Dubai, Qatar, two stores in Saudi Arabia and
closed one store in Dubai. In Asia, we opened new partner stores in
Taiwan and Singapore. As at 15 August 2015, we operated a total of
23 partner stores (2014:17).
The joint venture with our Australian licence partner, Flair
Industries Pty Ltd, continues to perform well. As at 15 August
2015, we operated 7 stores in Australasia (2014: 7 stores).
Current Trading and Outlook
Retail
Sales in August were adversely impacted by a number of external
factors, however, trading in September has been broadly in line
with our expectations and our collections for the Autumn / Winter
season have been well received.
In the UK and Europe, we have opened a store in Amsterdam and
have also opened further concessions in Ireland and Spain. We plan
to open our first outlet in Barcelona and further concessions in
France, Germany, the Netherlands and Spain later this year.
In North America, we have continued our expansion with two new
outlets opening in California and a store in Toronto. We remain
focused on developing our presence further in this market with
plans to open stores in Hawaii, Malibu and two stores in Los
Angeles, two new outlets in Florida and new concessions in
Hawaii.
Wholesale
The strong performance in our wholesale business in the first
half of the year benefited from a change in buying patterns in
North America, which has brought forward some orders. As a result,
we anticipate full year growth of around 25% for our wholesale
business.
Licence Income
Our product and territorial licences continue to perform well
with store openings planned in Dubai, Saudi Arabia, Singapore and
Taiwan. We plan to open our first concessions in Mexico with a new
licence partner along with two new outlets in Australia with our
licence partner.
Outlook
The Group continues to perform well and we remain focused on the
long term development of the Ted Baker brand. We continue to invest
in infrastructure and people to support the future growth of our
business in new and existing markets.
Whilst we have made a strong start to the financial year, our
results for the full year will, as always, be dependent on the more
weighted second half trading period.
We intend to make our next interim management statement,
covering the period since the start of the second half of the
financial year, in mid-November.
David Bernstein CBE
Non-Executive Chairman
06 October 2015
Condensed Group Income Statement
For the 28 weeks ended 15 August 2015
Unaudited 28 weeks Unaudited Audited
ended 28 weeks 53 weeks ended
15 August ended 31 January
2015 9 August 2015
2014
Note GBP'000 GBP'000 GBP'000
Revenue 2 226,755 182,172 387,564
Cost of sales 2 (96,148) (75,540) (152,359)
------------------- ---------- ----------------
Gross profit 2 130,607 106,632 235,205
Distribution costs (84,568) (70,234) (144,584)
Administrative expenses (33,727) (29,166) (56,373)
---------------------------------------------------- ----- ------------------- ---------- ----------------
Administrative expenses before exceptional cost (33,727) (26,610) (51,034)
Exceptional costs 3 - (2,556) (5,339)
--------------------------------------------------- ----- ------------------- ---------- ----------------
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Licence income 6,413 5,496 11,665
Other operating income 83 3,307 3,846
---------------------------------------------------- ----- ------------------- ---------- ----------------
Other operating income/ (expense) before
exceptional income 83 (362) (812)
Exceptional income 3 - 3,669 4,658
--------------------------------------------------- ----- ------------------- ---------- ----------------
Operating profit 2 18,808 16,035 49,759
Finance income 4 22 69 108
Finance expenses 4 (1,338) (749) (1,621)
Share of profit of jointly controlled entity, net
of tax 323 197 525
Profit before tax 2 17,815 15,552 48,771
Profit before tax and exceptional items 17,815 14,439 49,452
Exceptional income 3 - 3,669 4,658
Exceptional costs 3 - (2,556) (5,339)
---------------------------------------------------- ----- ------------------- ---------- ----------------
Income tax expense 7 (4,721) (4,137) (12,921)
------------------- ---------- ----------------
Profit for the period 13,094 11,415 35,850
------------------- ---------- ----------------
Earnings per share 5
Basic 29.8p 26.1p 82.0p
Diluted 29.4p 25.8p 81.0p
Condensed Group Statement of Comprehensive Income
For the 28 weeks ended 15 August 2015
Unaudited 28 weeks Unaudited 28 weeks Audited
ended ended 53 weeks ended
15 August 9 August 31 January
2015 2014 2015
GBP'000 GBP'000 GBP'000
Profit for the period 13,094 11,415 35,850
------------------- ------------------- ----------------
Other comprehensive (loss) / income
Items that may be reclassified subsequently to the income
statement:
Net effective portion of changes in fair value of cash
flow hedges (1,886) (1,228) 1,328
Net change in fair value of cash flow hedges transferred
to profit or loss (92) 1,797 1,890
Exchange rate movement (818) (708) 2,692
------------------- ------------------- ----------------
Other comprehensive loss for the period, net of tax (2,796) (139) 5,910
Total comprehensive income for the period 10,298 11,276 41,760
------------------- ------------------- ----------------
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 15 August 2015
Total equity
attributable
Cash flow to equity
hedging Translation Retained shareholders
Share capital Share premium reserve reserve earnings of the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 31
January 2015 2,196 9,331 1,368 (288) 127,967 140,574
Comprehensive
income for the
period
Profit for the
period - - - - 13,094 13,094
Exchange
differences on
translation of
foreign
operations - - - (1,120) - (1,120)
Current tax on
foreign
currency
translation - - - 302 - 302
Effective
portion of
changes in
fair value of
cash flow
hedges - - (2,382) - - (2,382)
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - (92) - - (92)
Deferred tax
associated
with movement
in hedging
reserve - - 496 - - 496
--------------- --------------- --------------- --------------- --------------- ---------------
Total
comprehensive
income for the
period - - (1,978) (818) 13,094 10,298
--------------- --------------- --------------- --------------- --------------- ---------------
Transactions
with owners
recorded
directly in
equity
Increase in
issued share
capital 2 259 - - - 261
Share based
payments
charges - - - - 1,026 1,026
Movement on
current and
deferred tax
on share based
payments - - - - 1,715 1,715
Dividends paid - - - - (12,739) (12,739)
--------------- --------------- --------------- --------------- --------------- ---------------
Total
transactions
with owners 2 259 - - (9,998) (9,737)
--------------- --------------- --------------- --------------- --------------- ---------------
Balance at 15
August 2015 2,198 9,590 (610) (1,106) 131,063 141,135
--------------- --------------- --------------- --------------- --------------- ---------------
Condensed Group Statement of Changes in Equity - Unaudited
For the 28 weeks ended 9 August 2014
Total equity
attributable
Cash flow to equity
hedging Translation Retained shareholders
Share capital Share premium reserve reserve earnings of the parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 25
January 2014 2,194 9,139 (1,850) (2,980) 105,561 112,064
Comprehensive
income for the
period
Profit for the
period - - - - 11,415 11,415
Deferred tax
associated
with movement
in hedging
reserve - - (142) - - (142)
Effective
portion of
changes in
fair value of
cash flow
hedges - - (1,086) - - (1,086)
Net change in
fair value of
cash flow
hedges
transferred to
profit or loss - - 1,797 - - 1,797
Exchange rate
movement - - - (708) - (708)
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-------------- -------------- --------------- ---------------- ---------------- ---------------
Total
comprehensive
income for the
period - - 569 (708) 11,415 11,276
-------------- -------------- --------------- ---------------- ---------------- ---------------
Transactions
with owners
recorded
directly in
equity
Increase in
issued share
capital 1 144 - - - 145
Share based
payments
charges - - - - 580 580
Movement on
current /
deferred tax
on share
options /
awards - - - - (233) (233)
Dividends paid - - - - (10,566) (10,566)
-------------- -------------- --------------- ---------------- ---------------- ---------------
Total
transactions
with owners 1 144 - - (10,219) (10,074)
-------------- -------------- --------------- ---------------- ---------------- ---------------
Balance at 9
August 2014 2,195 9,283 (1,281) (3,688) 106,757 113,266
-------------- -------------- --------------- ---------------- ---------------- ---------------
Condensed Group Statement of Changes in Equity - Audited
For the 53 weeks ended 31 January 2015
Share Share Cash Translation Retained Total
capital Premium flow Reserve earnings equity
hedging attributable
reserve to equity
shareholders
of the
parent
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 25 January
2014 2,194 9,139 (1,850) (2,980) 105,561 112,064
Comprehensive income
for the period
Profit for the
period 35,850 35,850
Exchange differences
on translation
of foreign operations - - - 3,475 - 3,475
Current tax on
foreign currency
translation - - - (783) - (783)
Effective portion
of changes in fair
value of cash flow
hedges - - 2,132 - - 2,132
Net change in fair
value of cash flow
hedges transferred
to profit or loss - - 1,890 - - 1,890
Deferred tax associated
with movement in
hedging reserve - - (804) - - (804)
Total comprehensive
income for the
period - - 3,218 2,692 35,850 41,760
========= ========= ========= ============ ========== ==============
Transactions with
owners recorded
directly in equity
Increase in issued
share capital 2 192 - - - 194
Share based payments
charges - - - - 1,390 1,390
Movement on current
and deferred tax
on share based
payments - - - - 672 672
Dividends paid - - - - (15,506) (15,506)
--------- --------- --------- ------------ ---------- --------------
Total transactions
with owners 2 192 - - (13,444) (13,250)
========= ========= ========= ============ ========== ==============
Balance at 31 January
2015 2,196 9,331 1,368 (288) 127,967 140,574
========= ========= ========= ============ ========== ==============
Condensed Group Balance Sheet
At 15 August 2015
Unaudited Unaudited Audited
15 August 2015 9 August 2014 31 January 2015
Note GBP'000 GBP'000 GBP'000
Non-current assets
Intangible assets 10 15,447 10,563 12,855
Property, plant and equipment 11 58,222 46,978 51,804
Investments in equity accounted investee 1,613 1,221 1, 290
Deferred tax assets 6,967 4,055 5,659
Prepayments 412 536 461
---------------- --------------- -----------------
82,661 63,353 72,069
---------------- --------------- -----------------
Current assets
Inventories 115,048 91,914 111,114
Trade and other receivables 43,861 36,929 36,873
Amount due from equity accounted investee 694 505 679
Derivative financial assets 1,118 230 3,547
Cash and cash equivalents 9 14,354 10,887 7,380
---------------- --------------- -----------------
175,075 140,465 159,593
---------------- --------------- -----------------
Current liabilities
Trade and other payables (44,611) (41,095) (57,046)
Bank overdraft 9 (68,770) (44,213) (26,204)
Income tax payable (1,977) (2,822) (7,202)
Derivative financial liabilities (1,243) (2,422) (636)
---------------- --------------- -----------------
(116,601) (90,552) (91,088)
---------------- --------------- -----------------
Net assets 141,135 113,266 140,574
---------------- --------------- -----------------
Equity
Share capital 2,198 2,195 2,196
Share premium 9,590 9,283 9,331
Other reserves (610) (1,281) 1,368
Translation reserve (1,106) (3,688) (288)
Retained earnings 131,063 106,757 127,967
---------------- --------------- -----------------
Total equity 141,135 113,266 140,574
---------------- --------------- -----------------
Condensed Group Cash Flow Statement
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For the 28 weeks ended 15 August 2015
Unaudited Unaudited Audited
28 weeks ended 28 weeks ended 53 weeks ended
15 August 9 August 31 January
2015 2014 2015
GBP'000 GBP'000 GBP'000
Cash generated from operations
Profit for the period 13,094 11,415 35,850
Adjusted for:
Income tax expense 4,721 4,137 12,921
Depreciation and amortisation 7,764 6,413 12,536
Loss on disposal of property, plant & equipment - 385 462
Share based payments charges 1,026 580 1,390
Net finance expenses 1,316 680 1,513
Net change in derivative financial assets and liabilities 337 284 (1,507)
Share of profit in joint venture (323) (197) (525)
Decrease in non-current prepayments 28 39 71
Increase in inventories (4,899) (10,920) (29,131)
Increase in trade and other receivables (5,706) (2,952) (1,815)
(Decrease) / increase in trade and other payables (12,048) (3,672) 11,653
Interest paid (640) (735) (1,594)
Income taxes paid (8,978) (5,181) (11,419)
---------------- ---------------- ----------------
Net cash generated from operating activities (4,308) 276 30,405
---------------- ---------------- ----------------
Cash flow from investing activities
Purchases of property, plant & equipment & intangibles (17,908) (13,805) (25,476)
Proceeds from sale of property, plant & equipment - 176 5
Interest received - - 1
Dividends received from joint venture - - 259
---------------- ---------------- ----------------
Net cash from investing activities (17,908) (13,629) (25,211)
---------------- ---------------- ----------------
Cash flow from financing activities
Dividends paid (12,739) (10,566) (15,506)
Proceeds from issue of shares 261 145 194
---------------- ---------------- ----------------
Net cash from financing activities (12,478) (10,421) (15,312)
---------------- ---------------- ----------------
Net decrease in cash and cash equivalents (34,694) (23,774) (10,118)
Cash and cash equivalents at the beginning of the period (18,824) (8,761) (8,761)
Exchange rate movement (898) (791) 55
---------------- ---------------- ----------------
Net cash and cash equivalents at the end of the period (54,416) (33,326) (18,824)
---------------- ---------------- ----------------
Cash and cash equivalents at the end of the period 14,354 10,887 7,380
Bank overdraft at the end of the period (68,770) (44,213) (26,204)
---------------- ---------------- ----------------
Net cash and cash equivalents at the end of the period (54,416) (33,326) (18,824)
Notes to the Condensed Interim Financial Statements
For the 28 weeks ended 15 August 2015
1. Basis of preparation
a. Reporting entity
Ted Baker Plc is a company domiciled in the United Kingdom. The
condensed interim financial statements ("interim financial
statements") of Ted Baker Plc as at, and for the 28 weeks ended, 15
August 2015 comprise the Company and its subsidiaries (together
referred to as the "Group").
The Group financial statements as at, and for the 53 weeks
ended, 31 January 2015 are available upon request from the
Company's registered office at Ted Baker Plc, The Ugly Brown
Building, 6a St. Pancras Way, London NW1 0TB or at
www.tedbakerplc.com.
b. Statement of compliance
These interim financial statements have been prepared in
accordance with "IAS 34 Interim Financial Reporting" as adopted by
the EU and the requirements of the Disclosures and Transparency
Rules. They do not include all of the information required for full
annual financial statements and should be read in conjunction with
the Group financial statements as at, and for the 53 weeks ended,
31 January 2015. These interim financial statements were approved
by the Board of Directors on 6 October 2015.
The comparative figures for the 53 weeks ended 31 January 2015
are not the Company's statutory accounts for that financial year.
Those accounts have been reported on by the Company's auditors and
delivered to the registrar of companies. The report of the auditors
was (i) unqualified; (ii) did not include a reference to any
matters to which the auditors drew attention by way of emphasis
without qualifying their report; and (iii) did not contain a
statement under section 498(2) or (3) of the Companies Act 2006.
These sections address whether proper accounting records have been
kept, whether the Company's accounts are in agreement with these
records and whether the auditors have obtained all the information
and explanations necessary for the purposes of the audit.
The financial information in this document is unaudited, but has
been reviewed by the auditors in accordance with the Auditing
Practices Board guidance on Review of Interim Financial
Information.
c. Going concern
The Group financial statements for the 53 weeks ended 31 January
2015, approved by the Board on 19 March 2015, included information
on the business environment in which the Group operates, including
the factors that are likely to impact the future prospects of the
Group, together with the principal risks and uncertainties that the
Group faces. In addition, the notes to the consolidated financial
statements set out the Group's objectives, policies and processes
for managing its financial and capital risk and its exposures to
credit, market and liquidity risk. Many of the risks and
uncertainties reported are such that their potential to impact the
Group's operations are inherent and remain valid as regards to
their potential impact during the second half of the financial year
ending 30 January 2016. The impact of the economic environment in
which the Group's businesses operate is considered in the
Chairman's Statement.
The directors have prepared trading and cash flow forecasts for
a period of one year from the date of approval of these interim
financial statements. The directors have a reasonable expectation
that the Group has adequate cash headroom and expects to meet all
banking covenant requirements. Accordingly, they continue to adopt
a going concern basis in preparing the financial statements of the
Group.
d. Significant accounting policies
The accounting policies adopted in these interim financial
statements are consistent with those followed in the preparation of
the Group's annual financial statements for the 53 weeks ended 31
January 2015. Adoption of amendments to published standards and
interpretations effective for the Group for the half year ended 15
August 2015 have had no significant impact on the financial
position and performance of the Group.
2. Segment information
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Segment revenue and segment result
Unaudited - 28 weeks ended 15 August 2015 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 168,167 58,588 - 226,755
Cost of sales (60,505) (35,643) - (96,148)
--------- ---------- --------------- ---------
Gross profit 107,662 22,945 - 130,607
Operating costs (83,604) - - (83,604)
--------- ---------- --------------- ---------
Operating contribution 24,058 22,945 - 47,003
Licence income - - 6,413 6,413
--------- ---------- --------------- ---------
Segment result 24,058 22,945 6,413 53,416
Reconciliation of segment result to profit before tax
Segment result 24,058 22,945 6,413 53,416
Other operating costs - - - (34,691)
Other operating income - - - 83
Operating profit - - - 18,808
Net finance expense - - - (1,316)
Share of profit of jointly controlled entity, net of tax - - - 323
---------
Profit before tax - - - 17,815
---------
Capital expenditure 8,773 661 - 9,434
Unallocated capital expenditure - - - 8,293
---------
Total capital expenditure - - - 17,727
---------
Depreciation and amortisation 6,157 160 - 6,317
Unallocated depreciation and amortisation - - - 1,447
---------
Total depreciation and amortisation - - - 7,764
---------
Unaudited - 28 weeks ended 9 August 2014 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 140,040 42,132 - 182,172
Cost of sales (50,475) (25,065) - (75,540)
--------- ---------- --------------- ---------
Gross profit 89,565 17,067 - 106,632
Operating costs (70,065) - - (70,065)
--------- ---------- --------------- ---------
Operating contribution 19,500 17,067 - 36,567
Licence income - - 5,496 5,496
--------- ---------- --------------- ---------
Segment result 19,500 17,067 5,496 42,063
Reconciliation of segment result to profit before tax
Segment result 19,500 17,067 5,496 42,063
Other operating costs - - - (26,956)
Exceptional income - - - 3,669
Exceptional costs - - - (2,556)
Other operating expense - - - (185)
---------
Operating profit - - - 16,035
Net finance expense - - - (680)
Share of profit of jointly controlled entity, net of tax - - - 197
---------
Profit before tax - - - 15,552
---------
Capital expenditure 8,306 41 - 8,347
Unallocated capital expenditure - - - 5,363
---------
Total capital expenditure - - - 13,710
---------
Depreciation and amortisation 5,305 98 - 5,403
Unallocated depreciation and amortisation - - - 1,010
---------
Total depreciation and amortisation - - - 6,413
---------
Audited - 53 weeks ended 31 January 2015 Retail Wholesale Licence income Total
GBP'000 GBP'000 GBP'000 GBP'000
Revenue 306,914 80,650 - 387,564
Cost of sales (105,940) (46,419) - (152,359)
---------- ---------- --------------- ----------
Gross profit 200,974 34,231 - 235,205
Operating costs (143,484) - - (143,484)
---------- ---------- --------------- ----------
Operating contribution 57,490 34,231 - 91,721
Licence income - - 11,665 11,665
---------- ---------- --------------- ----------
Segment result 57,490 34,231 11,665 103,386
Reconciliation of segment result to profit before tax
Segment result 57,490 34,231 11,665 103,386
Other operating costs - - - (52,134)
Exceptional costs - - - (5,339)
Exceptional income - - - 4,658
Other operating expense - - - (812)
----------
Operating profit - - - 49,759
Net finance expense - - - (1,513)
Share of profit of jointly controlled entity, net of tax - - - 525
----------
Profit before tax - - - 48,771
==========
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Capital expenditure 16,550 42 - 16,592
Unallocated capital expenditure - - - 9,112
----------
Total capital expenditure - - - 25,704
==========
Depreciation and amortisation 10,392 116 - 10,508
Unallocated depreciation and amortisation - - - 2,028
----------
Total depreciation and amortisation - - - 12,536
==========
3. Exceptional income and expenses
The directors believe that the profit before exceptional items
and the 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.
There were no amounts recognised as exceptional costs or income
during the 28 weeks ended 15 August 2015.
Exceptional costs in the 28 weeks ended 9 August 2014 of GBP2.6m
related to a legal dispute with a previous insurer. Full provision
for all costs incurred and judged payable by the Company was made
in the accounts for the 53 weeks ended 31 January 2015.
Exceptional income in the 28 weeks ended 9 August 2014 of
GBP3.7m related to the early termination of a licence partner
agreement, details of which have previously been disclosed.
Exceptional costs incurred for the 53 weeks ended 31 January
2015 include GBP5.3m relating to the legal dispute with a previous
insurer.
Exceptional income for the 53 weeks ended 31 January 2015
comprises GBP3.7m from the early termination agreement of a licence
partner agreement and GBP1.0m from the settlement of an
intellectual property dispute.
4. Finance income and expenses
Unaudited Unaudited Audited
28 weeks ended 15 August 2015 28 weeks ended 9 August 53
2014 weeks ended
31 January 2015
GBP'000 GBP'000 GBP'000
Finance income
- Interest receivable 13 15 7
- Foreign exchange gains 9 54 101
------------------------------ ------------------------ -----------------
22 69 108
------------------------------ ------------------------ -----------------
Finance expenses
- Interest payable (640) (595) (1,184)
- Foreign exchange losses (698) (154) (437)
------------------------------ ------------------------ -----------------
(1,338) (749) (1,621)
------------------------------ ------------------------ -----------------
5. Earnings per share
Unaudited Unaudited Audited
28 28 53
weeks ended 15 August weeks ended 9 August weeks ended
2015 2014 31 January 2015
Number of shares: No. No. No.
Weighted number of ordinary shares
outstanding 43,934,613 43,669,783 43,703,369
Effect of dilutive options 656,613 632,677 542,027
----------------------- ---------------------- -----------------
Weighted number of ordinary shares
outstanding - diluted 44,591,226 44,302,460 44,245,396
----------------------- ---------------------- -----------------
Earnings: GBP'000 GBP'000 GBP'000
Profit for the period, basic and diluted 13,094 11,415 35,850
Profit for the period adjusted * 13,094 10,573 36,372
Basic earnings per share 29.8p 26.1p 82.0p
Adjusted earnings per share * 29.8p 24.2p 83.2p
Diluted earnings per share 29.4p 25.8p 81.0p
Adjusted diluted earnings per share* 29.4p 23.9p 82.2p
* Adjusted profit for the period and adjusted earnings per share
are shown before exceptional items (net of tax) of GBPnil (28 weeks
ended 9 August 2014: net income of GBP842,000, 53 weeks ended 31
January 2015: net costs of GBP522,000).
6. Dividends per share
Unaudited Unaudited Audited
28 weeks ended 15 August 28 weeks ended 9 August 53 weeks ended 31 January
2015 2014 2015
GBP'000 GBP'000 GBP'000
Final dividend paid for the
prior year of 29.0p per
ordinary share (2014:
24.2p) 12,739 10,566 10,566
Interim dividend paid 2015:
Nil (2014: Nil) - - 4,940
-------------------------- -------------------------- --------------------------
12,739 10,566 15,506
-------------------------- -------------------------- --------------------------
The Board has declared an interim dividend of 13.2p per share
(2014: 11.3p) payable on 20 November 2015 to shareholders on the
register at 16 October 2015.
7. Income tax expense
The Group's full year forecast effective tax rate in respect of
continuing operations for the 28 weeks ended 15 August 2015 is
26.5% (28 weeks ended 9 August 2014: 26.6%, 53 weeks ended 31
January 2015: 26.5%).
This effective tax rate is higher than the UK tax rate 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 2015 the UK corporation tax rate fell
from 21% to 20%.
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.
8. Share based payments
Long Term Incentive Plan
Share awards are made in the form of nil-cost options under the
Ted Baker Plc Long Term Incentive Plan 2013 ("LTIP 2013"), which
was approved by the shareholders at the general meeting held on 20
June 2013. A third award of options was granted under the LTIP 2013
on 30 April 2015. The options will be exercisable three years after
the date of grant subject to the satisfaction of profit before tax
per share and share price performance targets, each measured over a
three year period. The profit before tax per share target is
calibrated so that the percentage of awards that vests is linked to
the level of profit growth achieved.
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The terms and conditions of the LTIP 2013 awards made during the
28 weeks ended 15 August 2015 are as follows:
Grant date Type of award Number of shares Vesting conditions Vesting period
30 April 2015 LTIP 2013 192,860 Profit Up to 100% after 3
before tax years
per share
growth of
10-15% per
annum and
10% share
price
growth
over the
vesting
period
The charge to the income statement for the 28 weeks ended 15
August 2015 for LTIP 2013 awards amounted to GBP912,154 (2014:
GBP515,920). Included in the charge for the period is an amount in
respect of R S Kelvin, who is employed by the Company, amounting to
GBP125,501 (2014: GBP66,230).
The Monte-Carlo valuation methodology has been used as the basis
of measuring fair value of awards made under the LTIP 2013. The
range of inputs into the Monte-Carlo model was as follows:
Share price at grant 1,705.0p - 2,855.0p
Share price at grant (based on 6 month average) for share price performance condition 1,318.0p - 2,385.0p
Risk free interest rate 0.73% - 1.18%
Expected life of options 3 years
Share price volatility 29.0%
Dividend yield 1.41% - 1.82%
9. Reconciliation of cash and cash equivalents per balance sheet to the cash flow statement
Unaudited Unaudited Audited
28 weeks 28 weeks 53 weeks ended 31 January 2015
ended 15 August 2015 ended
9 August
2014
GBP'000 GBP'000 GBP'000
Cash and cash equivalents per balance
sheet 14,354 10,887 7,380
Bank overdraft per balance sheet (68,770) (44,213) (26,204)
---------------------- ---------- -------------------------------
Cash and cash equivalents per cash flow
statement (54,416) (33,326) (18,824)
---------------------- ---------- -------------------------------
During the period, the Group agreed an extension of its
multi-currency revolving credit facility with the Royal Bank of
Scotland and Barclays. A new agreement was signed on 15 July 2015,
increasing the Group's committed borrowing facility from GBP65m to
GBP85m for 3.5 years to March 2018. The new borrowing is on similar
terms and contains similar covenants to the previous facility which
are appropriate to the Group and will be tested on a quarterly
basis.
10. Intangible assets
Intangible asset additions during the period include GBP3.1m (9
August 2014: GBP4.9m, 31 January 2015: GBP7.7m) in relation to the
Microsoft Dynamics AX systems, and to e-commerce platforms for both
the UK and US sites.
11. Property, plant and equipment
Property, plant and equipment asset additions during the period
include GBP14.6m (9 August 2014: GBP8.8m, 31 January 2015:
GBP18.0m) in relation to stores opened and refurbishment.
12. Related parties
The Company has a related party relationship with its executive
and non-executive directors.
Directors of the company and their immediate relatives control
35.6% (2014: 35.8%) of the voting shares of the Company.
At 15 August 2015, the main trading company owed the parent
company GBP25,736,000 (9 August 2014: GBP25,370,000). The main
trading company was owed GBP47,932,000 (9 August 2014:
GBP28,009,000) from other subsidiaries within the Group.
Transactions between subsidiaries and between the parent and
subsidiaries were priced on an arm's length basis.
The Group has a 50% interest in a joint venture company in
Australia which is also the parent company of a subsidiary joint
venture in New Zealand. As at 15 August 2015, the joint venture
owed GBP694,000 to the main trading company (9 August 2014:
GBP505,000). The value of sales made to the joint venture by the
Group in the period was GBP1,427,000 (9 August 2014:
GBP1,319,000).
13. Principal risks and uncertainties
The principal risks and uncertainties affecting the Group were
identified as part of the Group Strategic Report, set out on pages
16 and 17 of the Ted Baker Annual Report and Accounts for the year
ended 31 January 2015, a copy of which is available on the website
at www.tedbakerplc.com.
The Group have established a structured approach to identify,
assess and manage these risks and this is regularly monitored and
updated by the Risk Committee. The following list highlights some
of the principal risks, which are unchanged from year end and
remain relevant for the second half of the financial year:
Strategic Risks Operational Risks
* Significant external events affecting our supply * Failure in our supply chain affecting our ability to
chain, customers, partners affecting our revenue deliver our offer to customers and/or partners
and/or cost base
* Cost inflation affecting our operating costs
* Reputational risk to our brand as a result of our
actions or those of our partners
* Risk that our offer will not satisfy the needs of our * Operational problems affecting the internal
customers infrastructure of our business
* Failure to operate in a sustainable and responsible
manner
* IT security breach and loss of controlled data
Financial Risks
* Loss of key individuals
* Failure of counterparties
* Currency, interest and credit risks * Non-compliance with applicable legislations and
regulations
* Financial covenants under credit facilities
* Poorly managed implementation or take up of new
systems, leading to business disruptions
Responsibility statement of the directors in respect of the
interim financial statements
The directors confirm that to the best of their knowledge:
-- the condensed financial statements have been prepared in
accordance with IAS 34, Interim Financial Reporting as adopted by
the EU;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first 28 weeks of the financial year and their impact on the
condensed financial statements, and a description of the principal
risks and uncertainties for the remaining 24 weeks of the financial
year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first 28
weeks of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
The directors of Ted Baker Plc are listed on page 32 of the
financial statements as at, and for, the 53 weeks to 31 January
2015. A list of current directors is maintained on the Ted Baker
Plc website, at: www.tedbakerplc.com
By order of the Board
R S Kelvin CBE L D Page
Founder and Chief Executive Chief Operating Office and Group Finance Director
06 October 2015 06 October 2015
Cautionary statement regarding forward-looking statements
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