TED.L Regulatory News (TED)

22 Mar 2006 07:02

Ted Baker PLC22 March 2006 22 March 2006 Ted Baker PLC Preliminary Results for the 52 weeks ended 28 January 2006 Highlights • Group revenue up by 11.4% to £117.8m (2005: £105.8m) - Retail sales up 11.7% to £80.1m (2005: £71.7m) - Wholesale sales up 10.8% to £37.8m (2005: £34.1m) • Licence income up 9.4% to £3.5m (2005: £3.2m) • Profit before tax up 12.9% to £18.4m (2005: £16.3m) • Basic earnings per share up 14.2% to 30.6p per share (2005: 26.8p per share) • Proposed final dividend of 8.2p per share, (2005: 7.3p per share) making a total for the year of 12.1p per share, an increase of 12.0% (2005: 10.8p per share) • Continued US expansion with the successful launch of our 'Best in Show' store in Los Angeles in June and our Dallas store in November • First Asian territorial licence signed with the Li & Fung Group of Companies in October for retail distribution of the Ted Baker brand and wholesale distribution of certain collections in Hong Kong, Macau, China, Taiwan and South Korea • Second Asian territorial licence and Middle East licence signed in December with RSH Limited for retail distribution of the Ted Baker brand in Singapore, Malaysia, Thailand, Indonesia, UAE, Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and Lebanon Commenting on the results, Ray Kelvin, Chief Executive, said: "We are pleased to report another year of international success for Ted Bakerdespite a tough domestic retail environment. Design, product quality andattention to detail continue to drive the performance of the brand. Our multi-channel distribution strategy is providing a strong foundation for ourglobal expansion. We are now carefully launching Ted Baker in Asia and theMiddle East through licence agreements and over the next few years thedistribution of our brand will extend to a further sixteen countries. While being cautious of the economic outlook, we remain confident in the longterm strength of the Ted Baker brand." Enquiries:Ted Baker Tel: 020 7796 4133 on 22 March 2006 onlyRay Kelvin, Chief Executive thereafter Tel: 020 7255 4800Lindsay Page, Finance Director Hudson Sandler Tel: 020 7796 4133Sandrine Gallien / Kate Hough Visit Ted's new e-commerce site at www.tedbaker.co.uk Notes to Editors 'No Ordinary Designer Label...' Ted Baker has grown steadily from a single shirtspecialist store in Glasgow to an international brand that distributes throughretail showcases, leading department stores and key independents in Europe, USA,Canada and Australasia. In 2006 distribution will extend to the Middle East andAsia. Using three distinct channels of distribution, retail, wholesale and licensing,allows Ted to pursue a policy of careful brand management and growth byextending the breadth of the collections, controlling distribution channels anddeveloping our presence within key markets especially the United States. Ted's collections include three men's ranges: Global, which consists of limitededition opulent pieces; Endurance, a fusion of traditional tailoring with 21stcentury technology and high performance fabrics; and Men's Mainline which is acombined collection of laid-back denim pieces, casual shirts and contemporarysuiting. Ted Womenswear collection includes tailoring, silk jerseys, directionalknitwear, sophisticated dresses, and appliqued denim pieces. Both the men's andwomen's offer is complimented by their individual accessory collections.TheChildrenswear and Babywear ranges are aptly named Teddy Boy, Teddy Girl, TeddyBaby and are treated as 'small cuts dressed by Ted.' Fragrances, Footwear,Eyewear, Watches and Intimates are designed by Ted and distributed throughlicensees. Renowned for the brand's quirky sense of humour and attention to detail, TedBaker has always had a very clear unswerving focus on quality. Ted createscollections that appeal to a broad range of style conscious men and womenlooking for that certain something a little out of the ordinary. CHAIRMAN'S STATEMENT I am pleased to report strong results despite a marked slowdown in the domesticretail economy. Solid growth in our three divisions, retail, wholesale andlicensing, resulted in both turnover and profits being significantly up on lastyear, reflecting the strength of the brand. Ted Baker continues to make goodprogress in the United States, with new store openings in Los Angeles and Dallasduring the year. Towards the end of the year, we signed three licences to takethe brand into a further sixteen countries across Asia and the Middle East. Iwould like to thank the team at Ted Baker for another successful year for ourbusiness. Results Group turnover increased by 11.4% to £117.8m (2005: £105.8m) for the 52 weeksended 28 January 2006. Operating profit increased by 11.8% to £18.3m (2005:£16.4m) and profit before tax increased by 12.9% to £18.4m (2005: £16.3m). Basicearnings per share increased by 14.2% to 30.6p per share (2005: 26.8p pershare). Dividends The Board is pleased to recommend a final dividend of 8.2p per share (2005: 7.3pper share) making a total for the year of 12.1p per share (2005: 10.8p pershare) an increase of 12.0% on the previous year, which is in line with ourtargeted dividend cover of two and a half times. The final dividend will bepayable on 23 June 2006 to those shareholders on the register on 19 May 2006. Share Buy-back In line with market practice, the Company will seek authority from shareholdersto buy back up to 10% of the ordinary issued share capital of the Company in thenext twelve months. As the exercise of such authority could give rise to anobligation on the part of Ray Kelvin, chief executive of the Company, to make amandatory offer under Rule 9 of The City Code on Takeovers and Mergers, suchauthority will also be conditional on the Panel on Takeovers and Mergersagreeing to grant a dispensation from that obligation. Further details of thiswill be sent out in a letter accompanying the Notice of Meeting. Current Trading The reaction to our Spring Summer 2006 collection has been encouraging withtotal retail sales ahead by 5.3% for the first seven weeks, compared with thesame period last year, even though two stores were closed for refurbishmentduring part of the period. Later phasing of deliveries and difficult market conditions currently beingexperienced by some of our trustees have led to wholesale sales being down 14.6%compared to the same period last year. We will continue our expansion in the United States in May with a store openingin South Coast Plaza, a leading shopping centre located in Costa Mesa,California. While being mindful of the current economic conditions, at this early stage weremain confident of another year of growth and development for our brand. Robert BreareNon-Executive Chairman CHIEF EXECUTIVE'S REVIEW It has been another good year for Ted Baker despite a tough UK retailenvironment. Increased turnover and profit growth demonstrate the resilience ofour multi-channel distribution strategy. The brand performed well thanks to ourkey strengths of design, product quality and attention to detail. During theperiod we continued to build our presence in the United States with thesuccessful openings of two more stores in Los Angeles and Dallas. We are nowlaunching the brand in Asia and the Middle East through licence agreementssigned with two leading partners: The Li & Fung Group and RSH Limited. As aresult over the next few years the distribution of our brand will extend to afurther sixteen countries. Retail Our retail division performed strongly during the year with sales up 11.7% to£80.1m (2005: £71.7m). The average retail square footage rose by 20.5% over theperiod to 137,538 sq. ft. (2005: 114,153 sq. ft.). At 28 January 2006, totalretail square footage was 141,022 sq. ft. (2005: 129,023 sq. ft.) representingan increase of 9.3%. As anticipated, retail sales per square foot decreased from£628 to £582 due to a significant increase in retail space as a result ofrelocations and new openings, which have lower than average trading densities. At 28 January 2006, the retail division consisted of 102 retail locations (2005:96) comprising 19 UK stores (2005: 19), 7 overseas stores (2005: 6), 68concessions (2005: 64) and 8 outlet stores (2005: 7). In the United States, our expansion strategy continued as planned with theopening of a 3,310 sq.ft. 'Best in Show' store in Los Angeles in June and a new3,500 sq.ft. store in November, as part of the expansion to the exclusive NorthPark centre in Dallas. Both stores have received very positive reactions. Wealso expanded the New York store, with additional space dedicated to Womenswearcollections, based around an English Tea Party theme. Other stores in the UnitedStates continued to perform well and in line with our expectations. Miami hasnow been closed and as previously indicated there is no profit impact associatedwith this exit as the assets were fully written off in the previous financialyear. We remain committed to further store openings in the United States as wefind appropriate locations to showcase the brand. Wholesale Our wholesale division performed strongly during the year as wholesale salesrose by 10.8% to £37.8m (2005: £34.1m). Our principal collections, men's andwomen's casualwear, Endurance and Accessories all performed well, withwomenswear in particular recording above average growth. However, childrenswearwas affected by difficult trading conditions during the period. Underlying gross margins were slightly ahead of last year due to buyingefficiencies but this was impacted by a small level of inventory management inthe second half leading to an achieved gross margin of 42.2% (2005: 42.6%),which was slightly below last year. Licence Income Licence income increased by 9.4% to £3.5m (2005: £3.2m). In the US, our wholesale licensee, Hartmarx Corporation, made good progressalthough the minimum guarantee for the period was not exceeded. Tura LP wasappointed by Hartmarx as sub-licensee for eyewear in the US and Canada and theyhave made an excellent start, considerably exceeding our expectations. Ourlicensee in Australia and New Zealand, Flair Menswear Pty Ltd, also made goodprogress and continues to grow this area of the business. Our sunglasses and ophthalmic licensee, Mondottica Ltd, made strong progress andcontinues to increase distribution both in the UK and overseas. Ted BakerSkinwear, our licensed fragrance range, continued to perform well and welaunched Ted Baker Bodywear, a range of bodycare products in the second half ofthe year. The performance of this new range has exceeded our expectations. Ourwatch licensee performed well and was in line with our expectations. Our shoelicensee had a tough year and performed below expectations although the SpringSummer collection has been very well received and we are confident that 2006should see a significant improvement. In October 2005 we signed Ted Baker's first Asian territorial licence with theLi & Fung Group of Companies. The Li & Fung Group operates three distinctivebusinesses: export trading, retail and distribution, in 40 countries and employsover 12,000 people worldwide. The licence covers retail distribution of the TedBaker brand and wholesale distribution of certain collections in Hong Kong,Macau, China, Taiwan and South Korea. The agreement, which is subject to minimumguaranteed royalties and minimum number of store openings runs to 31 December2011, and may be renewed for a further five years subject to specificperformance criteria. In December 2005 we signed a second Asian territorial licence and a Middle Eastlicence with RSH Limited, a company listed on the Singapore Stock Exchange,which covers retail distribution of the Ted Baker brand in Singapore, Malaysia,Thailand, Indonesia, UAE, Saudi Arabia, Bahrain, Qatar, Oman, Kuwait andLebanon. RSH is a leading marketeer, distributor and retailer of sports andfashion brands across Asia and the Middle East, operating 390 stores and 480shop-in-shops in 11 countries. The agreements with RSH Limited are subject tominimum guaranteed royalties and minimum number of store openings. The twolicences will run for six years to 31 December 2011 with a possible renewal fora further 5 years subject to specific performance criteria. Although the financial impact of these licences will not be material in theshort term, they are in line with Ted Baker's strategy to develop its presencein overseas markets in conjunction with key territorial partners. They representsignificant progress in our ongoing strategy for the development of Ted Baker asa global brand. Ray KelvinChief Executive FINANCE DIRECTOR'S REPORT The financial results reflect our continued focus on margin led growth andstrong cash management. Our net margin before taxation increased to 15.6%(2005: 15.4%) and opening cash and cash equivalents of £8.9m improved to closingcash and cash equivalents of £10.1m. Gross Margin Retail gross margins were slightly below last year at 66.1% (2005: 66.8%) andthe wholesale gross margin was slightly down at 42.2% (2005: 42.6%), whichresulted in a decrease in the composite gross margin to 58.4% (2005: 59.0%). Operating Expenses Operating expenses rose by 9.8% to £54.3m (2005: £49.5m). Distribution costs,which include the costs of retail stores, outlets and concessions increased by13.3% to £39.0m (2005: £34.4m), which was below the increase in average retailselling space. Administration expenses increased by 1.7% to £15.3m (2005:£15.1m), reflecting tight cost management. Finance Income and Expenses The net interest charge during the year was below last year at £0.1m (2005:£0.2m) reflecting continued generation of cash from operations. Taxation The tax charge for the year was £5.4m (2005: £4.9m), an effective tax rate of29.6% (2005: 30.1%). The effective rate was lower, due mainly to adjustments inrespect of prior periods. Shareholder Return Basic earnings per share increased by 14.2% to 30.6p per share (2005: 26.8p pershare). Free cash flow per share increased 9.2% from 32.6p to 35.6p and theproposed dividend per share increased by 12.0% from 10.8p to 12.1p. During theyear, we purchased 1,010,000 of our own shares at 410.0p per share, to be heldin treasury, which represented a timely use of our cash resources. Cash Flow and Working Capital Net cash generated from operations was £20.7m (2005: £18.5m) primarilyreflecting increased trading and continued tight cash management. Workingcapital was tightly controlled and increased from £9.6m to £11.2m largely inline with the growth of the business. Stock levels increased by 3.3%, which wasbelow the increase in retail square footage during the year and the growth andphasing of the wholesale business. Capital expenditure was £5.1m (2005: £7.5m) and largely comprised investment innew retail stores and our distribution facility. Net cash outflow from financing was £9.1m (2005: net cash outflow £6.6m) andreflected the purchase of treasury shares during the year (£4.2m) and thepurchase of shares by the Ted Baker Group Employee Benefit Trust (£0.4m). Treasury and Risk Management The principal risks to the Group arise from exchange rate and interest ratefluctuations. The Board reviews and agrees policies for managing these risks ona regular basis. Where appropriate, the Group uses financial instruments tomitigate these risks. All transactions in derivatives, principally forwardforeign exchange contracts, are taken solely to manage these risks. Notransactions of a speculative nature are entered into. The most significant exposure to foreign exchange fluctuations relates topurchases in foreign currencies. The Group's policy is to hedge substantiallyall the risks of such currency fluctuations by using forward contracts takinginto account forecast foreign currency cash inflows. There has been no changesince the year-end to the major financial risks faced by the Group or theGroup's approach to the management of those risks. International Financial Reporting Standards For the year ended 28 January 2006, the Group was required to prepare itsfinancial statements in accordance with International Financial ReportingStandards (IFRS) as adopted by the EU. The adoption of IFRS represents an accounting change only and does not affectthe underlying business or cash flows. Details of the changes may be found onour website, www.tedbaker.com. The most significant change has been in therecognition of a fair value charge for share options, which has resulted in anadditional net charge of £0.5m for the full year. Lindsay PageFinance Director Group Income StatementFor the 52 weeks ended 28 January 2006 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 Note £'000 £'000 Revenue 2 117,832 105,753Cost of sales (48,979) (43,357)Gross profit 68,853 62,396 Distribution costs (39,007) (34,417)Administrative expenses (15,339) (15,089)Other operating income 3,827 3,515 Operating profit 18,334 16,405Finance income 4 129 68Finance expenses 4 (109) (221)Profit before tax 3 18,354 16,252Income tax expense (5,435) (4,884)Profit for the period 12,919 11,368 Attributable to:Equity shareholders of the parent company 12,931 11,347Minority interests (12) 21Profit for the period 12,919 11,368 Earnings per shareBasic 5 30.6p 26.8pDiluted 5 29.7p 26.2p Group Statement of Changes in EquityFor the 52 weeks ended 28 January 2006 Available Hedging Translation for sale reserve reserve Share Share reserve Retained Minority Total capital premium earnings interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 29 January 2,149 6,983 - - (33) 27,771 (40) 36,8302005 Transitional IFRS - - 428 (142) - - - 286adjustmentsBalance at 30 January 2,149 6,983 428 (142) (33) 27,771 (40) 37,1162005 Share option charge - - - - - 612 - 612Deferred tax on share - - - - - 718 - 718optionsChange in fair value - - (252) - - - - (252)Change in hedge - - - 135 - - - 135reserveExchange rate - - - - 45 - - 45movementProfit for the period - - - - - 12,931 (12) 12,919Purchase of own - - - - - (447) - (447)sharesPurchase of shares - - - - - (4,170) - (4,170)held as treasuryMovement in respect - - - - - 271 - 271of own sharesDividends paid - - - - - (4,775) - (4,775)Balance at 28 January 2,149 6,983 176 (7) 12 32,911 (52) 42,1722006 Available Hedging Translation for sale reserve reserve Share Share reserve Retained Minority Total capital premium earnings interest equity £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Balance at 31January 2004 2,131 5,358 - - - 20,086 (61) 27,514 Share option charge - - - - - 605 - 605Deferred tax on share options - - - - - 691 - 691Exchange rate movement - - - - (33) - - (33)Profit for the period - - - - - 11,347 21 11,368Shares issued 18 1,625 - - - (1,093) - 550Movement in respect of own - - - - - 385 - 385sharesDividends paid - - - - - (4,250) - (4,250)Balance at 29 January 2005 2,149 6,983 - - (33) 27,771 (40) 36,830 Group Balance SheetAt 28 January 2006 28 January 2006 29 January 2005 Note £'000 £'000Non-current assets Intangible assets 501 506Property, plant and equipment 18,667 17,346Deferred tax assets 1,543 567Available-for-sale financial assets 176 - 20,887 18,419Current assets Inventories 23,475 22,725Trade and other receivables 11,764 8,762Derivative financial assets 155 -Cash and cash equivalents 7 11,381 9,603 46,775 41,090Current liabilities Trade and other payables (17,507) (15,806)Borrowings 7 (563) -Current tax payable (6,544) (6,123)Derivative financial liabilities (126) - (24,740) (21,929) Non-current liabilitiesBorrowings 7 (750) (750) (750) (750)Total liabilities (25,490) (22,679) Net assets 42,172 36,830 Equity Share capital 2,149 2,149Share premium account 6,983 6,983Other reserves 169 -Retained earnings 32,923 27,738Total equity attributable to equity shareholders of the 42,224 36,870parent companyMinority interests (52) (40)Total equity 42,172 36,830 Group Cash Flow StatementFor the 52 weeks ended 28 January 2006 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 Note £'000 £'000Cash generated from operations Profit for the period 12,919 11,368Adjusted for:Income tax expense 5,435 4,884Depreciation 3,820 3,451Loss on disposal of property, plant & equipment 23 152Impairment losses - 381Share option charge 612 605Net finance gains 35 153Changes in hedge reserves (7) -Increase in inventories (595) (5,457)Increase in trade and other receivables (3,534) (1,554)Increase in trade and other payables 2,030 4,552Cash generated from operations 20,738 18,535 Interest paid (125) (231)Income taxes paid (5,480) (4,344)Net cash generated from operating activities 15,133 13,960 Cash flow from investing activities Purchases of property, plant & equipment (5,059) (7,527)Proceeds from sale of property, plant & equipment 13 (39)Interest received 63 59Net cash from investing activities (4,983) (7,507) Cash flow from financing activities Proceeds from issue of ordinary shares - 550Purchase of own shares (4,617) -Shares vested 271 385Loan repayment - (4,000)Increase in borrowings - 750Dividends paid (4,775) (4,250)Net cash from financing activities (9,121) (6,565) Net increase/(decrease) in cash and cash equivalents 1,029 (112) Cash and cash equivalents at 29 January 2005 8,853 5,811Loan repayment - 4,000Increase in borrowings - (750)Exchange rate movement 186 (96)Cash and cash equivalents at 28 January 2006 7 10,068 8,853 Notes 1) Basis of preparation EU law (IAS Regulation EC 1606/2002) requires that the Group financialstatements of the Group, for the 52 weeks ended 28 January 2006, are prepared inaccordance with International Financial Reporting Standards (IFRSs) adopted foruse in the EU ("adopted IFRSs"). This financial information has been prepared on the basis of the recognition andmeasurement requirements of adopted IFRSs as at 28 January 2006. As allowed by IFRS 1 'First-time adoption of IFRS,' the Group adopted IAS 32 'Financial instruments: disclosure and presentation' and IAS 39 'Financialinstruments: recognition and measurement', prospectively from 30 January 2005.Therefore until 29 January 2005, the Group continued to hedge account forforecast foreign transactions and commodity exposures in accordance with UKGAAP, and hence the comparative financial statements exclude the impact of thesestandards. The financial information set out above does not constitute the Group'sstatutory accounts for the 52 weeks ended 28 January 2006 or 29 January 2005.Statutory accounts for 2005, which were prepared under UK GAAP, have beendelivered to the registrar of companies. The auditors have reported on thoseaccounts; their reports were i) unqualified and, ii) did not contain statementsunder section 237 (2) or (3) of the Companies Act 1985. The statutory accountsfor 2006, prepared under accounting standards adopted by the EU, will bedelivered in due course. A full list of the UK GAAP accounting policies is provided in the Group'sfinancial statements for the year ended 29 January 2005. A reconciliation oftotal equity and retained profit from UK GAAP to International FinancialReporting Standards ("IFRS") for the comparative periods is available on theCompany's website, www.tedbaker.com, together with narrative describing the keydifferences applicable to the Group. 2) Segment information The revenue and profit before taxation are attributable to the Group's principalactivities, the design and contracted manufacture of high quality fashionclothing and related accessories for wholesale and retail customers. a) Analysis of revenue by brand 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 £'000 £'000 Menswear 66,403 57,137Womenswear 45,920 41,492Other 5,509 7,124 117,832 105,753 b) Primary reporting format - divisional segments 52 weeks ended 28 January 2006 Retail Wholesale Total £'000 £'000 £'000 Revenue 80,055 37,777 117,832Cost of sales (27,136) (21,843) (48,979)Gross profit 52,919 15,934 68,853Operating costs (44,081) (10,265) (54,346)Operating contribution 8,838 5,669 14,507Other operating income 3,827Operating profit 18,334Net finance income 20Profit before taxation 18,354 Total assets 47,816 19,846 67,662Total liabilities (17,308) (8,182) (25,490) 30,508 11,664 42,172 Capital expenditure 4,692 403 5,095Depreciation 3,518 302 3,820 52 weeks ended 29 January 2005 Retail Wholesale Total £'000 £'000 £'000 Revenue 71,669 34,084 105,753Cost of sales (23,795) (19,562) (43,357)Gross profit 47,874 14,522 62,396Operating costs (39,977) (9,529) (49,506)Operating contribution 7,897 4,993 12,890Other operating income 3,515Operating profit 16,405Net finance expenses (153)Profit before taxation 16,252 Total assets 43,274 16,235 59,509Total liabilities (15,376) (7,303) (22,679) 27,898 8,932 36,830 Capital expenditure 6,996 503 7,499Depreciation 3,220 231 3,451 Wholesale sales are shown after the elimination of inter-company sales of£3,732,000 (2005: £2,567,000). Included within retail are impairment costs of£Nil (2005: £381,000). C) Secondary reporting format - geographical segments 52 weeks ended 28 January 2006 United Kingdom Other Total £'000 £'000 £'000 Revenue 109,494 8,338 117,832Cost of sales (45,582) (3,397) (48,979)Gross profit 63,912 4,941 68,853Operating costs (48,813) (5,533) (54,346)Operating contribution 15,099 (592) 14,507Other operating income 3,827Operating profit 18,334Net finance income 20Profit before taxation 18,354 Total assets 56,878 10,784 67,662Total liabilities (24,371) (1,119) (25,490) 32,507 9,665 42,172 Capital expenditure 3,106 1,989 5,095Depreciation 3,329 491 3,820 52 weeks ended 29 January 2005 United Kingdom Other Total £'000 £'000 £'000 Revenue 101,188 4,565 105,753Cost of sales (41,603) (1,754) (43,357)Gross profit 59,585 2,811 62,396Operating costs (46,137) (3,369) (49,506)Operating contribution 13,448 (558) 12,890Other operating income 3,515Operating profit 16,405Net finance expenses (153)Profit before taxation 16,252 Total assets 53,321 6,188 59,509Total liabilities (21,434) (1,245) (22,679) 31,887 4,943 36,830 Capital expenditure 6,375 1,124 7,499Depreciation 3,113 338 3,451 United Kingdom sales are shown after the elimination of inter-company sales of£3,732,000 (2005: £2,567,000). Included within Other are impairment costs of£Nil (2005: £381,000). Other includes sales arising mainly in the United States. Revenue by destinationis not materially different from revenue by geographic origin. 3) Profit before taxation 52 weeks ended 28 52 weeks ended 29 January January 2006 2005Profit before taxation is stated after charging: £'000 £'000 Depreciation and amounts written off owned tangible property, plant and 3,820 3,451equipmentImpairment of property, plant and equipment - 381Operating lease rentals 7,927 7,060Auditors' remuneration for group audit services 45 33Auditors' remuneration for group non-audit services 52 9Auditors' remuneration for parent company audit services 6 6Auditors' remuneration for parent company non-audit services - -Loss on disposal of property, plant & equipment 23 152 Amounts payable to KPMG Audit Plc in respect of non-audit services relate toreview work associated with the interim statement and IFRS convergence. 4) Finance income and expenses 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 £'000 £'000Finance income - Interest receivable 74 68- Net foreign exchange transaction gains 55 - 129 68Finance expenses - Interest payable (109) (221)- Net foreign exchange transaction losses - - (109) (221) 5) Earnings per share 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 No NoNumber of shares:Weighted number of ordinary shares outstanding 42,236,880 42,375,426Effect of dilutive options 1,216,443 991,840Weighted number of ordinary shares outstanding - diluted 43,453,323 43,367,266 £'000 £'000Earnings:Profit for the period basic and diluted 12,919 11,368 Basic earnings per share 30.6p 26.8pDiluted earnings per share 29.7p 26.2p Own shares held by the Ted Baker Group Employee Benefit Trust, the Ted Baker1998 Employee Benefit Trust and treasury shares have been eliminated from theweighted average number of ordinary shares. Dividend income received by theCompany as a result of holding these own shares has been eliminated from theprofit after income tax expense and minority interests. The options exercisedduring the year and long-term incentive scheme awards distributed were of sharesheld by the Trusts. Diluted earnings per share have been calculated using additional ordinary sharesof 5p each available under the 1997 Unapproved Share Option Scheme, the 1997Executive Share Option Scheme and the Ted Baker Performance Share Plan. There were no share related events after the balance sheet date that may affectearnings per share. 6) Dividends per share 52 weeks ended 28 52 weeks ended 29 January 2006 January 2005 £'000 £'000 Final dividend paid for prior year of 7.3p per ordinary share (2005: 6.4p) 3,138 2,746Interim dividend paid of 3.9p per ordinary share (2005: 3.5p) 1,637 1,504 4,775 4,250 A dividend in respect of 2006 of 8.2p per share, amounting to a total dividendof £3,442,000, is to be proposed at the Annual General Meeting on 13 June 2006. 7) Reconciliation of cash and cash equivalents per balance sheet to cashflow statement 52 weeks ended 28 52 weeks ended 29 January January 2006 2005 £'000 £'000 Cash and cash equivalents per Balance sheet 11,381 9,603Current borrowings (563) -Non-current borrowings (750) (750)Cash and cash equivalents per Cash flow statement 10,068 8,853 This information is provided by RNS The company news service from the London Stock Exchange