annual report 2005 - Pumpkin Patch investor relations

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id culture managing director’s report our year 2005 was an exciting year for Pumpkin Patch with continued sales and earnings growth in all areas of our business. We have continued to use the strength of the Pumpkin Patch brand to drive improved performance in existing markets while identifying new markets which will be fruitful in future years. our results Group operating revenue increased 27.3%. Sales growth was seen in all segments especially Australia, the United Kingdom, and our wholesale accounts. $300,000 $250,000 27% NZ$ ’000 $200,000 $150,000 17% 11% 14% $100,000 $50,000 0 2001 2002 2003 2004 2005 Pumpkin Patch was able to develop its core Australasian market increasing revenue and enhancing margins. Net Profit After Tax (before non-recurring items) was $25.4m up 63.5% on the 2004 financial year. Since 2001 we have had a compound average growth rate in EBIT of 52.1%. We continue to benefit from economies of scale and new store openings. Australia retail 2005 $000 2004 $000 Turnover AUD 141,387 120,400 17.4% Turnover NZD 157,496 138,449 13.8% EBIT 29,021 22,935 26.5% 18.4% 16.6% Stores Pumpkin Patch 74 64 6 Urban Angel 1 - 75 64
The highlight in Australia was our strong sales growth up 17.4% (in AUD) on 2004. This reflects the full sales impact of 10 new stores in 2004 and part trading of the 11 stores opening in 2005. The full effect of the new 2005 stores will not be seen until 2006. Our focus as always was to increase the performance of existing stores while ensuring that the standards for our new stores were in keeping with our high service expectations. This strategy paid off with strong improvements in earnings while reducing inventory holdings and seeing the benefit of the economies of scale in an expanding store network. Despite a less than favourable Australian dollar exchange rate we managed to increase our EBIT $6.1m to a creditable 18.4% of sales. Australia continues to offer opportunities to open stores in areas that currently have no or little Pumpkin Patch presence. We have identified possible store locations that could continue to be opened at the current rate of 8 to 10 stores per year for the next 3 years. We continue to be confident as market leader in fashion childrenswear that we have brand integrity and a range that will weather most economic environments. New Zealand retail 2005 $000 2004 $000 Turnover NZD 57,844 45,763 26.4% EBIT 10,591 9,150 15.7% 18.3% 20.0% Stores Pumpkin Patch 31 27 Urban Angel 14 14 45 41 New Zealand sales grew 26.4% to $57.8m. This resulted mainly from the effect of a full years trading from 14 Urban Angel stores (the re-branded HBK stores purchased in May 2004) and new store openings. Excluding the Urban Angel stores, turnover from Pumpkin Patch stores was up 15.8% on 2004. Earnings increased 15.7% on 2004 to $10.6m. The reduction in earnings as a percentage of sales to18.3% reflected the full years trading of the Urban Angel stores which trade at a lower earnings percentage than Pumpkin Patch stores. The re-branding of the old format HBK stores to the new format Urban Angel stores was completed in the year, the full benefits of this will not be seen until late in the 2006/2007 years. During the year 4 stores were opened, taking total store numbers to 45. We are expecting to open 1 new Pumpkin Patch and 2 new outlet stores in the 2006 financial year. 7
Page 1 and 2: annual report 2005
Page 4 and 5: contents performance highlights 1 f
Page 6 and 7: financial highlights Year ended 31
Page 8 and 9: id culture
Page 12 and 13: id culture United Kingdom retail 20
Page 14 and 15: ur team spirit! directors Greg Muir
Page 16 and 17: ur team spirit! senior management t
Page 19 and 20: corporate governance The Board of D
Page 21: external auditor independence To en
Page 24 and 25: directors shareholdings 31 July 200
Page 27 and 28: Pumpkin Patch Limited & Subsidiarie
Page 56 and 57: shareholder information for the yea
Page 59 and 60: corporate directory registered offi

annual report 2005 - Pumpkin Patch investor relations

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