MPH.L Regulatory News (MPH)

12 Sep 2006 07:01

Marchpole Holdings PLC12 September 2006 Marchpole Holdings plc ("Marchpole" or "the Company") Annual General Meeting Statement At Marchpole Holding's Annual General Meeting to be held this morning, thenon-executive Chairman of Marchpole Holdings plc, Christopher Phillips, willgive the following statement and update on current trading. "At the time of the announcement on 28 June 2006 of our results for the yearended 31 March 2006 I was pleased to report continued improvement in thebusiness with increased turnover and operating profit and a strong forward orderbook. In line with our strategy, the Company continues to evolve from asingle-brand, single country business to a diversified, international businesswith a portfolio of brands. We have significantly extended our global reach andnow operate in the UK, Europe, Asia, the US and the Middle East. The current financial year has started well, with deliveries and orders forAutumn/Winter collections at record levels and our Spring/Summer 2007collections for all our brands having been well received and forward order booksbuilding in line with expectations. We are pleased to report that the integration of Moda America, the US licenseefor Emanuel Ungaro which was acquired in March 2006, has been successful andimmediately earnings enhancing. It has provided the Company with an opportunityto expand significantly the business into the USA. Importantly, the Boardbelieves business from Moda will offset the termination of the YSL licence inDecember 2006. Furthermore, not only does it strengthen our relationship withEmanuel Ungaro but it also provides us with the opportunity to re-launch ourwholly-owned brand, Jean Charles de Castelbajac ("JCC"), into America witheffect from Autumn/Winter 2006. Our JCC brand continues to build on progress with expanded reach and increase inlicensing income which has more than doubled since acquisition. In May 2006, wesigned an agreement with global childrenswear retailer OKAIDI Group to develop arange of childrenswear under the JCC brand. This licence provides us with afoothold in the childrenswear market, which we believe is an area that offersconsiderable opportunity for growth. In June we signed a contract with Galleries Lafayette to open a JCC'shop-in-shop' in the landmark Galleries Lafayette department store on BoulevardHausman in Paris. Clothes and accessories from the JCC range have been sold inthe iconic store since July 2006 and current trading is encouraging. In additionan agreement with leading European eyewear retailer Codir SA resulted in thelaunch of a Castelbajac eyewear range. During the last year we also extended our design agreement and increased licenceincome with our Japanese partner, Itochu, for a further six years until 2011which enables us to maximise the potential for the JCC brand in the lucrativeJapanese market. Earlier this month we opened our Japanese flagship store inKobe, to be followed by a Tokyo JCC store in the near future. Good progress has also been made with the Emanuel Ungaro and Ungaro Hommelicences. The growth potential of the Ungaro brand was confirmed with our recentdistribution agreement with Dubai based BTC Group International, for the EmanuelUngaro brand to be sold in the United Arab Emirates. The agreement was a majorbreakthrough into the fast growing Gulf marketplace and further extends theinternational reach of the brand. We continue to work closely with the House ofUngaro and we are confident that revenue from the Ungaro brand will replace thatfrom Yves Saint Laurent in the medium term. Most recently, Marchpole acquired Homebody, the luxury clothing company whichdesigns, manufactures and distributes ladieswear, maternity wear and menswear.It is currently stocked in Selfridges and Harrods as well as top boutiquesacross the UK and by Neiman Marcus in the USA. We intend to build the brandfurther throughout Europe and the US, using our global network of distributionoutlets to accelerate growth. We therefore look forward to the future with confidence. Orders and deliveriesfor Autumn / Winter 2006 remain very strong and our forward order book isbuilding in line with expectations. Marchpole is well placed to capitalise onfuture licensing opportunities and suitable earnings-enhancing acquisitions." In addition to the Chairman's statement, included within the special businessfor approval at the AGM are proposals for a share consolidation and buy-back.The share consolidation is on the basis that every five existing ordinary sharesof 1p each be consolidated and redesignated as one new ordinary share of 5peach. Application will be made to the UK Listing Authority for the new ordinaryshares to be admitted to the Official List and to be admitted to trading on theLondon Stock Exchange and it is expected that dealings in the new ordinaryshares will commence on 18 September 2006. For further information, please contact : Emma Kent / Alexandra WaltonBell Pottinger Corporate & Financial 020 7861 3232 John Harrison, Finance DirectorMarchpole 020 7908 7777 This information is provided by RNS The company news service from the London Stock Exchange