RNS Number:1581R
Marchpole Holdings PLC
22 October 2003
EMBARGOED UNTIL 07:00
22 October 2003
MARCHPOLE HOLDINGS PLC
"Strong Interim Performance"
Marchpole Holdings plc, which designs, produces and sells high quality clothing
and accessories for the YSL and Boateng brands, today announces its interim
results for the 6 months to 26 September 2003.
Key Points:
* Profit before tax of #804,000 (2002 - loss of #1,003,000)
* Sales increased to #7,963,000 (2002 - #6,062,000)
* Earnings per share for the period of 0.5 pence per share (2002 - loss
per share of 0.6p)
* Autumn Winter 2003 order book stands at over #10 million of which 60%
has already been delivered to customers.
* Spring Summer 2004 order book is currently at over #9 million, a 35%
increase over Spring Summer 2003.
Chief Executive, Greg Tufnell, commented, "I am delighted with these interim
results. The strength of our current order book and this strong first half
performance gives us confidence in the future and for the continuation of the
improvement in shareholder value.
"We continue to drive the strategy of growing existing brands such as YSL, as
well as investing in and developing new brands such as Boateng".
For further information please contact:
Marchpole: 020 7908 7777
Greg Tufnell, Chief Executive
Justin Hampshire, Finance Director
Buchanan Communications: 020 7466 5000
Tim Thompson / Nicola Cronk
Shore Capital: 020 7408 4090
Alex Borrelli
Marchpole Holdings plc
Interim Results for the 6 months to 26 September 2003
Chairman's Statement
"Strong Interim Performance"
I am pleased to present the interim results of Marchpole Holdings plc for the 6
months to 26 September 2003.
Results
The group has returned a profit before tax of #804,000 compared with a loss of
#1,003,000 for the first half of the previous year. This performance is ahead of
our expectations and has been achieved on sales of #7,963,000 against #6,062,000
in 2002, an increase half year on half year of #1,901,000. Earnings per share
for the period are 0.5 pence per share which compares with a loss per share of
0.6 pence for the same period last year.
Sales for the period are up 31%. The YSL brand is performing well, benefiting
from improvements in product range, sourcing, quality, distribution and customer
service. The Boateng brand has been successfully launched during the course of
this half year and, committed to our brand development strategy, we have
invested over #400,000 to date. In its first season this brand has achieved a
high quality distribution profile, and has been well received by customers.
This strong profile has also been reflected in the second season with the Spring
Summer 2004 forward order book increasing by over 50%.
Overhead efficiencies continue with good control over distribution and
administration costs, with the overhead as a percentage of turnover improving
from 49% to 31%.
Having firmly established stability and control of the key elements of the
business, the executive management continue to drive the strategy of growing
existing brands such as YSL as well as investing in and developing new brands
such as Boateng.
Outlook
The Autumn Winter 2003 order book currently stands at over #10 million of which
60% has already been delivered to customers. The Spring Summer order book is
currently over #9 million, which represents growth of 35% over the forward
orders at the same time last year for Spring Summer 2003. We expect to commence
delivery to customers in the first few months of 2004.
With these results the group is well set to continue with its strategy of
developing new brands, and the board is currently in discussion with several
third parties to advance opportunities.
We are very pleased with the performance of the group during the first half,
having exceeded the profit made for the full year to March 2003. We are
confident that the strength of this first half performance together with our
current order books will result in a good performance for the year as a whole,
continuing our objective of rebuilding shareholder value.
New board appointments
The Board is pleased to announce that two new directors are shortly to be
appointed. Michael Morris rejoins the board as an executive director.
Michael will be part of the Executive Team which is responsible for sales and
day to day operations, as well as continuing with his responsibilities for
sourcing and developing new brands.
Ray Harris joins the board as a non-executive director. Ray qualified as a
Chartered Accountant in 1961 and has recently retired from Gerald Edelman where
he was a partner for 14 years.
Capital reduction approval
On 15 October 2003 the High Court approved the proposed share capital reduction.
This approval now enables the Company to make a dividend payment when
practicable.
On behalf of the Board and shareholders I would like to thank the staff of
Marchpole, our suppliers and customers for their continued support.
Christopher Phillips
Chairman
Group profit and loss account
For the 6 months ended 26 September 2003
6 months to 6 months to Year ended
Notes 26 September 2003 27 September 2002 31 March 2003
#'000 #'000 #'000
(Unaudited) (Unaudited) (Audited)
Turnover 2 7,963 6,062 15,991
Cost of sales 4 (4,606) (4,036) (9,489)
Gross profit 3,357 2,026 6,502
Distribution costs 4 (806) (848) (1,853)
Administrative expenses 4 (1,652) (2,115) (3,807)
Operating profit/(loss) 899 (937) 842
Net interest payable (95) (66) (125)
Profit/(loss) on ordinary 2 804 (1,003) 717
activities before taxation
Taxation on profit/(loss) on 3 (160) 244 79
ordinary activities
Profit/(loss) on ordinary 644 (759) 796
activities after taxation
Retained earnings/(deficit) 644 (759) 796
Earnings/(loss) per share basic 6 0.5p (0.6)p 0.6p
and diluted
Group balance sheet
At 26 September 2003
As at As at As at
Notes 26 September 2003 27 September 2002 31 March 2003
#'000 #'000 #'000
(Unaudited) (Unaudited) (Audited)
Fixed assets
Tangible assets 94 97 97
Current assets
Stock 1,465 1,121 1,124
Debtors 4,210 2,481 4,299
Cash at bank and in hand 614 1,252 121
6,289 4,854 5,544
Creditors: amounts falling due (3,710) (4,378) (3,579)
within one year
Net current assets 2,579 476 1,965
Total assets less current 2,673 573 2,062
liabilities
Creditors: amounts falling due (92) (200) (125)
after more than one year
Net assets 2,581 373 1,937
Capital and reserves
Share capital 8 23,901 23,901 23,901
Share premium 15,626 15,626 15,626
Merger reserve (38,584) (38,584) (38,584)
Profit and loss account 1,638 (570) 994
Total shareholders' funds - 2,581 373 1,937
equity interests
Group statement of cash flows
For the 6 months ended 26 September 2003
6 months to 6 months to Year to
26 September 2003 27 September 2002 31 March 2003
#'000 #'000 #'000
(Unaudited) (Unaudited) (Audited)
Cash inflow/(outflow) from operating
activities
Operating profit/(loss) 899 (937) 842
Depreciation 36 45 86
(Profit)/loss on sale of fixed assets - (10) (1)
Foreign exchange movement - 5 9
(Increase)/decrease in stocks (341) 481 478
(Increase)/decrease in debtors 89 (404) (2,297)
Increase/(decrease) in creditors 92 1,078 15
Net cash inflow/(outflow) from 775 258 (868)
operating activities
Returns on investments and servicing of
finance
Interest received - 1 -
Interest and facility fees paid (95) (61) (124)
Interest element of hire purchase and - - (1)
finance lease rental
(95) (60) (125)
Taxation - - 80
Capital expenditure and financial
investment
Payments to acquire tangible fixed - - (39)
assets
Proceeds from sale of tangible fixed - 4,754 4,743
assets
- 4,754 4,704
Cash inflow before financing 680 4,952 3,791
Financing
Capital element of hire purchase and (33) (36) (36)
finance lease rentals
New loans - 650 1,000
Repayment of loans (154) - (325)
Issue of new share capital - 50 50
(187) 664 689
Increase in cash in the period (note 7) 493 5,616 4,480
Notes to the interim statement
At 26 September 2003
1. Basis of preparation
The interim statement has been prepared on the basis of the accounting policies
set out in the Group's statutory accounts for the year ended 31 March 2003
The financial information presented in this interim statement does not
constitute full financial information within the meaning of Section 240 of the
Companies Act 1985. The Group profit and loss account for the year ended 31
March 2003 and the Group balance sheet at that date have been extracted from the
statutory accounts for the period, which received an unqualified audit report,
and have been delivered to the Registrar of Companies.
2. Turnover and profit on ordinary activities before taxation
Turnover and profit on ordinary activities before taxation are wholly
attributable to the Group's principal activity and arose substantially in the
United Kingdom.
3. Taxation
A provision for corporation tax has been made using the rate of 30% on profit
before taxation. The taxation for the period to 26 September 2003 also reflects
any under or over provisions for prior periods.
4. Reclassification of costs
For consistency, some reclassifications of costs have been made between cost of
sales, distribution costs and administrative expenses for the 6 months to 27
September 2002. These reclassifications do not have any effect on the retained
earnings of the Company.
5. Interim dividend
No interim dividend is proposed to be paid in respect of the period to 26
September 2003. (No dividend was paid in the period ended 27 September 2002).
6. Earnings per share
Earnings per share for the period has been calculated based on the profit
attributable to shareholders of #644,000 (2002 - #759,000 loss) and the weighted
average number of ordinary shares in issue throughout the period of 120,454,569.
7. Reconciliation of net funds/(debt)
6 months to 6 months to Year to
26 September 2003 27 September 2002 31 March 2003
#'000 #'000 #'000
(Unaudited) (Unaudited) (Audited)
Net debt at beginning of the period (554) (4,395) (4,395)
Increase/(decrease) in cash 493 5,616 4,480
Foreign exchange movement - (5) -
Capital element of hire purchase and - 36 36
finance lease rentals
New loans (33) (650) (1,000)
Loan repayments 154 - 325
Net funds/(debt) at end of the period 60 602 (554)
Cash at bank and in hand 614 1,252 121
Bank overdraft - - -
1,252 121
Hire purchase and finance leases - - -
Loans (554) (650) (675)
60 602 (554)
8. Proforma shareholders' funds
Following court approval of the share capital reduction in Marchpole Holdings
plc on 15 October 2003, the shareholders' funds of the group would now be
presented in the balance sheet as follows:
As at As at
26 September 2003 26 September 2003
#'000 #'000
(Unaudited) Pro-forma
Capital and reserves
Share capital 23,901 1,205
Share premium 15,626 1,556
Merger reserve (38,584) (1,818)
Profit and loss account 1,638 1,638
Total shareholders' funds - equity interests 2,581 2,581
Copies of the interim statement will be mailed to the shareholders during the
week commencing 27 October 2003, and can be obtained from the Company's
registered office, 19-20 Berners Street, London W1T 3LW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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