MPH.L Regulatory News (MPH)

8 Aug 2007 07:00

Marchpole Holdings PLC08 August 2007 MARCHPOLE HOLDINGS PLC ("Marchpole", "the Company" or "the Group") Interim Management Statement Marchpole Holdings plc (LSE: MPH), the fast growing fashion brand management group,has today published its first Interim Management statement as required by the revised Listing Authority disclosure rules. The statement relates to the first 13 weeks of the new financial year, representing the period 1 April to 1 July 2007. The Board continues to believe, as reported on 28 June 2007, that the Group is well placed to withstand the termination of the YSL licence. For the purposes of this statement it is meaningless to draw comparisons withthe same period last year because of the changes in the composition of theGroup, notably the end of the YSL licence and the acquisitions of Homebody andGreenmark. Sales of Emanuel Ungaro and Ungaro Homme in Europe, including the UK, areencouraging and in line with expectations, and we remain confident that theUngaro brand will prove to be an adequate replacement for YSL. Orders for thefirst line, Emanuel Ungaro, have received a significant boost from thesuccessful Paris fashion show held on 29 June and will be further augmented bythe opening of three new flagship stores in Bucharest, Azerbaijan and Colombiain Spring 2008. On a like for like basis sales of Jean Charles de Castelbajac have increased byfive per cent and royalty income has more than doubled reflecting the newlicence agreements put in place over the last year. During the period a newdistribution agreement has been signed for Japan with Coronet, a member of theItochu Group and a new partnership entered into with Lee Cooper, one of theworld's original denim companies. These will enhance earnings in 2008/2009. Boateng sales and orders have grown from last year when performance was blightedby legal disputes and market confusion over the continuation of the licence. Asreported previously this dispute was settled in Marchpole's favour by the Courtof Appeal in December 2006. Greenmark has been successfully integrated into the Marchpole business model andis performing ahead of expectations. The retail environment in North America continues to be difficult and sales byModa America are lower than for the same 13 week period last year. On thepositive side margins have improved as a result of Marchpole's sourcingcapabilities. Our balance sheet remains strong following the improvements made during the yearto 31 March 2007. There have been no significant changes in the financialposition of the Group since the publication of the Annual Report for the yearended 31 March 2007. The resignation of John Harrison as Group Finance Director was announced on 26July 2007. A replacement is being sought and John will remain with the Groupuntil that process has been completed. For further information please contact: Marchpole Holdings plc:Michael Morris 020 7908 7777Executive Deputy Chairman Bell Pottinger:David Rydell/Emma Kent/Amy Rajendran 020 7861 3232 Note to Editors: - Marchpole Holdings plc ("Marchpole") is an international brandmanagement group that designs, produces and sells clothing and accessories forten globally recognised fashion labels. It operates in all of the world's mainmarkets - UK, mainland Europe, Middle East, Asia and the USA - Its respected brands include Boateng, Emmanuel Ungaro, Ungaro Homme,Jean Charles de Castelbajac ("JCC"), Jean Charles de Castelbajac / Rossignol,Jean Charles de Castelbajac/Okaidi, Jean Charles de Castelbajac / New Era, JCDC/Lee Cooper and Homebody and Homemummy - Marchpole is renowned for its integrated approach to brandmanagement, taking a brand from concept to design studio to the customerinterface. - The Group has grown considerably in the past four years, from alicensee with one core licence (YSL menswear) - to today's internationalbusiness that manages its brands across a multitude of clothing lines andaccessories - Marchpole's acquisition (March 2006) of Moda America - the USlicensee for leading designer Emanuel Ungaro - provided further growthopportunities in the UK and America and strengthened the Company's relationshipwith Ungaro - The acquisition also enabled the Company to launch the Ungaro brand,already established by Marchpole in Europe and Asia, into the US, Canada andSouth America. The acquisition has also enabled the Company to re-launch JCCinto America. - In March 2007 Marchpole acquired 100% of Greenmark Limited, animporter and wholesaler of ladies shoes who currently supply in excess of 2.5million pairs of shoes per annum. This information is provided by RNS The company news service from the London Stock Exchange