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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Oasis Stores | LSE:OAS | London | Ordinary Share | GB0006550577 | ORD 10P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 0.00 | - |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS No 5834t OASIS STORES PLC 6th April 1998 Contacts: Michael Bennett, Chairman Dominic Lavelle, Finance Director Oasis Stores Plc Tel: 0171 452 1000 Tom Baldock Financial Dynamics Tel: 0171 831 3113 OASIS STORES PLC Preliminary Results Announcement Oasis Stores Plc, the design-led fashion retailer today announces its results for the 53 weeks ended 31st January 1998. Summary: * Sales up 14% to #92.9m (1997: #81.7m). Like-for-like sales flat * Pre-tax profits down 33% to #10.4m (1997: #15.6m) * Earnings per share decreased to 13.12p (1997: 19.51p) * Dividend up 7% to 7.5p (1997: 7.0p) * Total number of outlets increased from 108 to 127; 1 new store opened since year end * Partnership signed with Grattan for launch of Mail Order in Autumn 1998 * Opening of first accessories store in Manchester Commenting on the results, Chairman Michael Bennett said: "1997 was a difficult year for Oasis. Following 5 years of exceptional growth and profitability, we experienced some operational problems which contributed to a lower level of profits than in the previous year. However, these problems have now been dealt with and I am fully confident that the continuing strength of the Oasis brand and the commitment of our management team will return the Company to profitable growth in 1998. Total sales were up 7% and like-for-like sales were down 3% in the first 7 weeks of the current year. These figures compare to a corresponding strong period in 1997 and trading is on an improving trend." CHAIRMAN'S STATEMENT AND FINANCIAL REVIEW Financial Highlights 1997 was undoubtedly a very challenging year for Oasis and this is reflected in the Company's financial performance for the 53 weeks to 31st January 1998. Turnover increased by 14% to #92.9 million (1997: #81.7 million) and retail sales were up 12% to #88.9 million (1997: #79.4 million). However, like-for-like sales were flat overall. Pre-tax profits declined by 33% to #10.4 million (1997: #15.6 million) and earnings per share decreased to 13.12 pence from 19.51 pence. A final dividend of 5.1 pence per share will be paid in June giving a total dividend for the year of 7.5 pence (1997: 7.0 pence), an increase of 7%. This reflects our confidence in the long term prospects for Oasis with its strong brand name and successful format. A total of #8.3 million (1997: #5.9 million) was invested in the period, or #7.8 million on a cash basis. At the year-end the Company had net cash balances of #7.1 million (1997: #13.1 million), representing 29% of net assets. Operational Summary Undoubtedly Oasis' profit performance for the year was a disappointment to us all. Growth has brought with it challenges. Managing change, maintaining flexibility, meeting increased competition and developing leading edge systems, have all imposed some strains. The disappointing result was due to several factors: a slow-down in sales, particularly in the UK, higher markdowns and an increase in distribution and administrative costs. Although retail sales increased by 12%, retail gross profit only grew by 3%, from #44.4 million to #45.7 million. Our retail gross profit rate declined from 56.0% to 51.4%. However, much was achieved during the year to stand us in good stead for the future. We opened 23 new stores in the period, including two relocations into larger premises, and two other stores were closed giving a net increase of 19 in the number of outlets. In the last two years we have opened 50 outlets on a base of 82 in January 1996. Trading square footage at the end of the period was 159,000, or 20% higher than last year (133,000). Average trading square footage was 148,000, or 23% higher than last year. The 23 new stores cost #3.6 million and #1.9 million was spent refurbishing existing stores. Despite signs of overheating in the property market, the new shops and concessions we opened were on terms that allow us to trade profitably. We also opened our first accessory shop and trading so far has been encouraging. We continued our rolling programme of refurbishing the branches and concessions with 21 shops receiving a major investment. Our Buying Department was restructured during the year and this, combined with our new merchandise control and planning systems should significantly improve the performance of this critical department. We also increased our spending on training through new initiatives and although we recognise this is an investment in the future, we plan further growth in this area. The work and investment to ensure the successful launch of our Mail Order partnership with Grattan was completed during the year and we should start to see the benefits from the Autumn onwards. One of our core strengths is the Company culture, which remained strong in spite of the strains of a difficult year. The team spirit, the sharing of the challenges and the dedication to a common cause remained undiminished and everyone made their contribution to the team effort. United Kingdom Like-for-like sales fell by 1%, but overall sales grew by 10%, from #72.8 million to #80.3 million. We opened 16 new stores, comprising 8 new branches, two relocated branches, our first accessory store and 5 new concessions, including our first outlet in Northern Ireland. We closed another branch and a concession, resulting in a net increase in UK outlets of 12, from 93 to 105. Republic of Ireland This market continued its steady growth, with like-for-like sales increasing by 10%, and overall sales up 16% to #5.9 million. One new store opened in the second half, increasing the number of stores to 6. Germany Overall sales grew by 80% to #2.7 million driven by the 6 new concessions which were opened during the period and the 8 new stores which opened during 1996. The weak economy in Germany continued to impact on our trade and the strength of the pound on our results. However, we remain optimistic about the potential of the Oasis brand and format in Germany. Licensees In the period, sales to licensees represented 4.3% of sales, up from 2.8% last year. Sales grew by 76% to #4.0 million from #2.3 million. New store openings totalled 9 in the period, including first stores in Iceland, Portugal, Qatar and 3 in Taiwan. We have also finally found an excellent licensee for Japan. Systems During last year our new EPOS system was introduced and this will undoubtedly improve the speed and quality of the two-way communication with our shops, free up management time and improve service to our customers. By year end 33 branches were using the system. All branches will be linked by the end of August. Our new merchandise control and planning systems were installed in the latter part of the year and although the system requires further development this technology will help us strengthen our competitive edge and prove an invaluable tool in our planning to ensure maximisation of our returns on stock. Expenditure on new computer systems was #2.4 million (1997: #0.6 million), the new EPOS system represented #1.9 million of this amount and other system enhancements cost #0.5 million, mainly on the new merchandising and distribution systems. Outlook For the current year we have acquired 5 new branches and negotiations are in their final stages on a sixth. We will also be opening another four concessions and have plans to open additional accessories stores in the UK. However, in the light of current retail property prices, it should be noted that our policy remains to open stores only on terms that allow us to achieve targeted returns. I believe our trading performance is now on an improving trend. Although sales in the first 7 weeks of the year are down 3% on a like-for-like basis, this compares to a strong period in the previous year and this performance is in line with our expectations. Our shops are looking good and the product is being well received. We have all been strengthened by the difficulties we encountered during 1997 and looking to the future I feel confident in the fundamental strengths of the business. Profit and Loss Account for the 53 weeks ended 31st January 1998 1998 1997 #'000 #'000 Turnover 92,936 81,651 Cost of sales (46,665) (36,828) Gross profit 46,271 44,823 Distribution costs (30,739) (24,900) Administrative expenses (6,828) (5,693) Other operating income 43 95 Operating profit 8,747 14,325 Interest receivable and similar income 1,624 1,308 Interest payable and similar charges (8) (20) Profit on ordinary activities before taxation 10,363 15,613 Taxation (3,479) (5,376) Profit for the financial period 6,884 10,237 Dividend (3,934) (3,672) Retained profit for the financial period 2,950 6,565 1998 1997 pence pence Earnings per share 13.12 19.51 Other than the profit for the period, which was entirely derived from continuing activities, there were no recognised gains or losses during the current and previous period. Balance Sheet as at 31st January 1998 1998 1997 #'000 #'000 Fixed assets Tangible fixed assets 16,818 12,750 Current assets Stocks 9,850 8,093 Debtors 4,870 3,912 Short term deposits and cash 7,130 13,142 21,850 25,147 Creditors Amounts falling due within one year (13,213) (15,407) Net current assets 8,637 9,740 Total assets less current liabilities 25,455 22,490 Creditors Amounts falling due after more than one year (209) (217) Provisions for liabilities and charges (337) (314) Net assets 24,909 21,959 Capital and reserves Called up share capital 5,246 5,246 Profit and loss account 19,663 16,713 Equity shareholders' funds 24,909 21,959 Cash Flow Statement for the period ended 31st January 1998 1998 1997 #'000 #'000 Net cash inflow from operating activities 9,390 16,936 Returns on investments and servicing of finance Interest received 1,625 1,318 Interest paid (10) (20) Net cash inflow from returns on investments and servicing of finance 1,615 1,298 Tax paid (5,612) (4,101) Capital expenditure Purchase of tangible fixed assets (7,795) (5,880) Sale of tangible fixed assets 219 40 Net cash outflow from capital expenditure (7,576) (5,840) Equity dividends paid (3,829) (2,849) (Decrease)/increase in cash (6,012) 5,444 Notes 1. TURNOVER AND PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION Turnover arises from the sales by the Company to third parties net of discounts and value added tax and royalty income received from overseas licensees. 1998 1997 #'000 #'000 Geographical analysis Turnover United Kingdom 80,308 72,786 Ireland 5,891 5,072 Germany 2,719 1,513 Rest of Europe, Middle and Far East 4,018 2,280 92,936 81,651 Turnover by country of destination is not materially different from turnover by country of operation. Turnover arises entirely from fashion retailing and may also be analysed as follows: Turnover: European retailing 88,918 79,371 Overseas licensing 4,018 2,280 92,936 81,651 Net profit before unallocated net expenses: European retailing 15,002 19,524 Overseas licensing 530 399 15,532 19,923 Unallocated net expenses (6,785) (5,598) Operating profit 8,747 14,325 The Company operates principally within the UK; the Directors consider that the level of net assets held overseas is immaterial. 2. CASH FLOW STATEMENT 1998 1997 #'000 #'000 Reconciliation of operating profit to net cash inflow from operating activities Operating profit 8,747 14,325 Depreciation charges 3,943 2,736 Loss on sale of fixed assets 119 96 (Increase) in stocks (1,757) (2,940) Decrease in investments 0 391 (Increase) in debtors (933) (938) (Decrease)/increase in creditors (729) 3,266 Net cash inflow from operating activities 9,390 16,936 3. The Directors recommend that a final dividend of 5.10 per share (1997 - 4.90p), which added to the interim dividend of 2.40 pence (1997 - 2.10p), gives a total dividend payable for the year of 7.50 pence per share (1997 - 7.00p). The final dividend will be paid on 22nd June 1998 to shareholders whose names appear on the Register of Members at the close of business on 15th May 1998. The Seventh Annual General Meeting of Oasis Stores Plc will be held at the offices of SG Securities (London) Ltd, Exchange House, Primrose Street, London EC2A 2DD on Tuesday 2nd June 1998, at 10.00am. Copies of the Annual Report & Accounts will be sent to shareholders in due course and additional copies will be available from the Company's registered office: 13-16 Lakeside, Stanton Harcourt, Witney, Oxon OX8 1SL. 4. FINANCIAL STATEMENTS The financial information for the fifty three weeks ended 31st January, 1998 is unaudited and does not constitute full accounts within the meaning of Section 240 of the Companies Act 1985. The financial information for the fifty two weeks ended 25th January, 1997 has been extracted from the full accounts for that period which have been delivered to the Registrar of Companies and on which the auditors have issued an unqualified audit report. 5. EARNINGS PER SHARE The calculation of earnings per share is based on the profit on ordinary activities after taxation of #6,884,000 (1997 - #10,237,000) and a weighted average of 52,457,175 ordinary shares in issue during the year (1997 - 52,457,175). END FR NFXLDEDAPEFN
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