annual report 2005 - Pumpkin Patch investor relations

id culture
United Kingdom retail
2005
$000
2004
$000
Turnover GBP 9,994 6,999 42.8%
Turnover NZD 26,408 19,537 35.2%
EBIT (283) (1,333) 78.8%
(1.1%) (6.8%)
Stores 16 9
The 42.8% growth in GBP sales came from new stores opened in the year and the continued growth in turnover at the
more established stores created by the increase in customer awareness of the Pumpkin Patch brand. Considering the soft
nature of the United Kingdom retail environment we are very happy with this sales result.
During the year 7 new stores were opened, taking the total number of stores to 16. The full trading impact of these
new stores will not be seen until the 2006 and 2007 years.
The trading loss for the year of $0.3m, was an improvement on the $1.3m loss in 2004.
The opening of the 7 new stores this year has significantly reduced the impact of
improved trading at the more established stores. The stores that have been open for more
than 24 months are generating acceptable earnings as a percentage
of sales. As we increase store numbers off a relatively low number of existing stores,
the impact of the improved trading results from more established stores will continue to
be understated.
Overall the result, especially that from the more established stores, reinforces our
confidence in this market and the future of the Pumpkin Patch brand in it. We plan
to open 6 new stores in the 2006 financial year.
wholesale and direct
2005
$000
2004
$000
Turnover NZD 38,225 16,002 138.9%
EBIT 9,626 2,127 352.6%
25.2% 13.3%
The relationships developed with wholesale customers over the last three to
four years resulted in increased wholesale orders in 2005. Turnover increased
across all major wholesale markets, especially the Middle East,
the United States and Ireland.
8
The very nature of the wholesale business, especially the time it takes to
convert a new relationship into confirmed wholesale orders, will give us some
fluctuations in sales growth each year.