1086 AnnRep-Investment S04-3 - Pumpkin Patch investor relations

PUMPKIN PATCH LIMITED & SUBSIDIARIESNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE 12 MONTHS ENDED 31 JULY 2004 (CONTINUED)• Share capital is lower than forecast due to the forecasted final price on listing being $1.25compared to the forecasted $1.32, and total issue costs being higher than forecasted.• Current assets includes higher than forecasted stock levels resulting from increased purchases forfuture sales seasons and higher than expected levels of goods in transit at year end.• Higher than forecasted borrowings is primarily the result of lower than forecasted net proceeds onthe issue of shares on listing.• Other current liabilities is higher than forecast due to increased accounts payable resulting fromincreased stock purchases.Cash Flow SummaryFor the year ended 31 July 2004ActualForecast2004 2004$000 $000Net cash flow from operating activities 14,956 13,199Net cash flow from investing activities (7,939) (6,168)Net cash flow from financing activities (7,221) (4,231)Net increase (decrease) in cash held (204) 2,800Forecasted landlord fitout contributions of $747,000 which were disclosed in the Prospectus as investingcash flows have been reclassified as operating cash flows to allow comparison with the Statement ofCash Flows for the year ended 31 July 2004.• Cash flows from operating activities were higher than forecast due to the improved trading resultfor the period, partially offset by increases in other working capital items.• Higher than forecasted cash out flows from investing activities was the result of the opening oftwo stores not forecasted and capital expenditure relating to the accelerated roll out of store instore concession arrangements with wholesale customers.• Net cash flow from financing activities was lower than forecast due to the final price on listingbeing $1.25 compared to the forecasted $1.32, and total issue costs being higher thanforecasted.57