Ted Baker thrives on international expansion

20th Mar 2014 07:08

- Revenue and PBT up 26.5 and 26.7 per cent- Total dividend up 26.7 per cent- 'Continues to perform well' in current trading Second half sales growth slowed and margins were slightly compressed for fashion retailer Ted Baker, but annual results were still just ahead of forecasts thanks to powerful overseas growth.Profits before tax and exceptional costs rose 26.7% against extremely strong comparatives to £40m on revenues ahead 26.5% to £321.9m. Adjusted earnings per share climbed 22.3% to 69p, with the total dividend lifted 26.7% to 33.7p.An proportional increase in wholesale sales and margins, due to a greater proportion of sales to the company's territorial licence partners, dragged the composite gross margin from 62.4% to 61.7%. Looking at the results geographically, UK sales were up 20.3%, with the refreshed website in November helping online sales jump 51%, while a year of significant expansion in North America led to increased sales of 38.1% with nine new concessions opened. Middle East, Asia and Australasia saw the strongest growth, with stores and concessions opened in China and Japan helping to generate a 59.7% jump in retail sales.Capital expenditure was £1.8m lower then the previous year, but remained relatively high at £18.1m as the FTSE 250 group invested in store opening and refurbishments, concessions and outlets, investment in business wide systems to support our future growth and a new e-commerce platform for the UK site.In the current year capital expenditure will increase further, with investment planned in new store openings in UK, Europe and Panama, along with new IT systems that will add some extra costs, with capex anticipated to reach £25m.Current trading sees the brand "continuing to perform well in a competitive trading environment", the company said.OH