Actif appoints new non-executive director
Michael Conitzer has been appointed non-executive director of the board of British retail group Actif, according to a media report. He was appointed on behalf of Hatzioannou Holdings, which holds a 10.6 percent stake in Actif.
With over 35 years experience in the apparel sector, Conitzer is currently chief executive of the sportswear retailer King's Road Sporting.
Meanwhile, Actif has predicted further losses for this year's full-year trading, prompted by weak demand in both retail and wholesale products. The company did, however, say that it had received some positive reactions to its range enhancements.
21 December 2005
Actif Group Plc reports a year on year increase in turnover of 73 per cent.
ACTIF GROUP PLC PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JULY 2001
Operational Summary
· Turnover up 73% to £24.4 million (2000: £14.1 million)
· Pre-tax loss £1.98m resulting largely from the costs associated with the launch
and subsequent closure of the Joe Boxer brand in the UK
· Gross margin increased from 36.2% to 41.2% due to the increased proportion
of retail business
· Major cost reduction programme completed
· Mark Evans, new Chief Executive, appointed 1st August 2001
· Stabilisation of trading in second half - particularly as a result of improving
contribution from core ELLE brand
· Two prime ELLE stores and 14 ELLE concessions opened
· ELLE licence re-aligned to strengthen retail rights in UK and relinquish non-core
products and territories
· Post year end like-for-like retail revenues ahead of comparable period last
year and wholesale like-for-like revenues in line with budget
David Brock, Chairman of Actif Group, commented:
"The Board has taken significant steps to improve our performance in the short
and longer term. I am pleased to report a stabilisation of the trading performance
in the second half and since the year-end sales have been in line with expectations.
While it has been a difficult year for the Group we believe that we are well
placed to exploit the potential of the ELLE brand and restore profitability
to our core business."
November 2001 ACTIF GROUP PLC ("ACTIF" OR THE "COMPANY") PRELIMINARY RESULTS FOR THE YEAR ENDED 31 JULY 2001 CHAIRMAN'S STATEMENT
This has been a disappointing year for the Group, having recorded a pre-tax loss of £1.98 million and is the result of a number of contributing factors, the most important of which has been the cost associated with the launch and subsequent closure of the Joe Boxer brand in the UK. Of the pre-tax loss for the period £1.19 million is attributable to the Joe Boxer operation which has now been terminated.
Lower than expected sales from our core ELLE brand, as a result of the prevailing difficult market conditions in the first half of the year as well as a disappointing reaction to our Spring/Summer range, also had a negative impact.
In the second half of the year the Board has taken significant steps to improve our performance in the short and longer term. We now have a new Chief Executive, Mark Evans, who joined on 1st August 2001 and he has already made a substantial contribution to the business. We have undertaken an extensive review of the cost base and have completed a major cost reduction programme, which will significantly reduce central overheads going forward.
Additionally we have extended and amended our licence agreement with ELLE to operate retail for a further two years while strengthening our retail rights in the UK. I am pleased to report that we have seen a stabilisation of the trading performance in the second half of the year, with an operating profit before exceptional items of £193,000 in comparison to the operating loss before exceptional items in the first half of £757,000.
Financial Performance
Group turnover for the period increased by 73% to £24.4 million (2000: £14.1
million) reflecting the increase in the number of stores and concessions. Composite
gross margin has increased from 36.2% to 41.2% as a result of the retail business
accounting for a greater proportion of sales than in the prior period. The Group
operating loss of £1.1 million includes an operating loss of £523,000 incurred
by the Joe Boxer business, which has been discontinued. The loss before tax
of £1.98 million includes exceptional items amounting to £1.2 million. These
are in respect of the termination of the Joe Boxer operation (£662,000), the
launch costs of the Joe Boxer brand (£341,000) and the permanent impairment
loss on a leasehold property (£200,000).
We have continued to make substantial investment in the future development of the business. Capital expenditure during the year amounted to £1.55 million for the ELLE business, of which £1.2 million was incurred on the development of new ELLE retail selling space.
Retail Business
Retail turnover for the period increased from £3.8 million to £14.1 million,
reflecting a year in which several new stores and concessions were opened and
a full year's turnover from the stores which opened in the prior year. On a
like for like basis retail sales are up 8%, although comparatives are available
for less than half of the annual turnover due to the immature nature of parts
of the business.
The retail gross margin has decreased from 56.2% last year to 53.4%. This is explained by the Joe Boxer retail gross margin for the year, which was only 27.5% due to the clearance of excess stocks. If the effect of this is discounted, then gross margin increased from 56.2% to 57.0%. During the year the Company has opened two further ELLE prime stores in Southampton and Milton Keynes bringing the total number of prime stores to six. The Company also opened 14 department store concessions during the period, of which 12 are within House of Fraser. At the end of the period the Group had increased its ELLE retail selling space to 46,500 square feet compared to 32,000 square feet at the end of last year.
Wholesale Business
In the UK, ELLE wholesale sales declined by 15% to £4.9 million (2000: £5.8
million). However this was in line with expectations following the conversion
of a number of wholesale customers, including House of Fraser, to retail concessions
at the beginning of the financial year. Export sales during the year increased
by 18% to £3.0 million (2000: £2.5 million). In addition, our Ted Baker agency
sales increased by 24% to £2.4 million, albeit at a lower margin. Wholesale
margins, excluding Ted Baker agency sales, have reduced from 32.5% to 29.8%.
This is attributable to the discounted sale of excess retail stocks to wholesale
customers in order to protect the retail margin.
Board Changes
On 5 March 2001 Peter Roberts resigned as Non-executive Chairman to pursue other
business interests. I was pleased to accept the role as Non-executive Chairman,
having been with the Group since January 2000 as a Non-executive Director. On
30 April 2001 Martin Parker resigned from the Board to take early retirement,
having held the position of Retail Managing Director. Martin Lent resigned as
Chief Executive on 31 July 2001 to continue his other business interests and
was succeeded by Mark Evans on 1 August 2001. I am delighted to welcome Mark
to the Board and believe that his proven management skills will contribute to
building a successful team and driving growth.
Our people
On behalf of the Board I would particularly like to thank our people, who have
responded so well to the demanding conditions experienced in the year. They
have faced up to these challenges and continued to provide a level of service
which is valued by our customers.
Current Trading and Prospects Since
the year end, revenues from our ELLE retail business have continued to increase
with like for like sales for the first quarter ahead of the comparable period
last year. ELLE wholesale sales are in line with budget for the first quarter
of the year.
As part of the ELLE licence amendment that I have referred to previously, the Group has agreed to relinquish certain non-core product categories and territories and retail rights for the rest of Europe. I believe that this realignment will allow the Group to concentrate its financial and design resources on fewer products and territories, thus improving the focus and commerciality of the product.
Whilst it has been a difficult year for the Group we believe that the realignment of our ELLE licence will enable us to focus more effectively on the key profit drivers of the business. This, together with the cost reduction programme that we have already implemented, means that we are well placed to exploit the potential of the ELLE brand and to restore profitability to our core business.