Last year was one of heavy international investment for Ted Baker (TED). From its humble beginnings as a shirt specialist in Glasgow, Ted Baker has grown into a global upmarket clothing retailer and to expand further, it spent £19.8m opening and refurbishing stores around the world, bringing the total number of stores from 260 to 310.
Stores were opened in London, New York, Hong Kong and Canada, and concessions in South Korea, Germany, Holland, Ireland and Spain. This led to higher borrowing, and as a result Ted went from net cash of £1.8m to net debt of £10m.
Meanwhile, sales growth continued to rise and so did profits. On an underlying basis - excluding £2.6m of exceptional costs mainly due to pre-launch rents - group pre-tax profits rose by 16.5 per cent to £31.5m. Retail sales jumped 19.4 per cent to £208m, while wholesale revenue grew 12.2 per cent to £46.5m. Online also contributed, with sales up 63.7 per cent to £14.9m. Gross margins improved, but distribution costs rose by 23 per cent to £101.4m and now account for 40 per cent of sales.
Panmure Gordon expects 2014 pre-tax profit of £36.7m, giving EPS of 63.4p.
| TED BAKER (TED) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,308p | MARKET VALUE: | £557m | |
| TOUCH: | 1,300-1315p | 12-MONTH HIGH: | 1,354p | LOW: 748p |
| DIVIDEND YIELD: | 2.0% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 232p | NET DEBT: | 10% | |
| Year to 26 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 153 | 17.8 | 29.6 | 16.7 |
| 2010 | 164 | 19.5 | 32.6 | 17.2 |
| 2011 | 188 | 24.2 | 41.5 | 20.6 |
| 2012 | 216 | 24.3 | 42.2 | 23.4 |
| 2013 | 254 | 28.9 | 51.5 | 26.6 |
| % change | +18 | +19 | +22 | +14 |
Ex-div: 8 May Payment: 14 Jun | ||||
