Ted Baker PLC Update on profit expectation for Year 18/19 (2068R)

TIDMTED

RNS Number : 2068R

Ted Baker PLC

27 February 2019

27 February 2019

Ted Baker Plc

("Ted Baker" or the "Group")

Update on profit expectation for the year ended 26 January 2019

Ted Baker, the global lifestyle brand, updates on profit expectations for the financial year ended 26 January 2019 ("Year 18/19"). Profit before tax is now expected to be in the region of GBP63m; this is before previously announced costs associated with the ongoing independent external investigation, exceptional costs relating to the previously announced debtor balances owed by House of Fraser and the acquisition of No Ordinary Shoes Limited and No Ordinary Shoes USA LLC and other non-cash impairments relating to retail assets. The net borrowing position for Year 18/19 remains in line with prior expectations.

Pre-tax profit for the Year 18/19 has been adversely affected by three non-cash impacts:

1. Foreign exchange movements in the final week of the financial year, primarily GBP/USD and GBP/EUR, have resulted in a mark-to-market profit impact of approximately GBP2.5m relating to the translation of inter-company balances;

2. As previously reported, we have upgraded our systems and made process enhancements during the year. These systems upgrades have allowed us to identify additional product costs of approximately GBP2.5m that arose during the second half of Year 18/19. We are confident the systems upgrade now provides robust controls to prevent a recurrence; and

3. The recent systems and warehousing transitions in Asia and the US, as well as a more prudent view on aged stock, have resulted in an unanticipated write-down in the value of inventory of approximately GBP5m. Ted Baker remains fully committed to driving improvements in the net working capital to sales ratio and will provide an update at the full-year results presentation.

Ted Baker will announce its full year results on 21 March 2019.

This announcement contains inside information.

 
 Ted Baker                               Tel: +44 (0) 20 
                                               7255 4800 
 Lindsay Page, Acting CEO 
  Charles Anderson, Finance Director 
  Phil Clark, Commercial Director 
 
 Hudson Sandler                          Tel: +44 (0) 20 
                                               7796 4133 
 Alex Brennan / Hattie O'Reilly / Nick 
  Moore 
 

Cautionary statement regarding forward-looking statements

This announcement contains certain forward-looking statements. These forward-looking statements include matters that are not historical facts or are statements regarding the Group's intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies, and the industries in which the Group operates.

Forward-looking statements are based on the information available to the Directors at the time of preparation of this announcement, and will not be updated during the year. The Directors can give no assurance that these expectations will prove to have been correct. Due to inherent uncertainties, including both economic and business risk factors underlying such forward-looking information, actual results may differ materially from those expressed or implied by these forward-looking statements.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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February 27, 2019 02:01 ET (07:01 GMT)