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

chairman’s letterDear ShareholdersI am very pleased to report that Pumpkin Patch Limited has exceeded its prospectusforecast for the first year as a company listed on the New Zealand Exchange. I wouldalso like to extend a very warm welcome to all our new shareholders, and to reaffirm thecommitment of management and directors to maintaining our position of leadership inkid’s apparel across Australasia and developing new markets internationally.Net profit after tax (NPAT) (and before costs of restructuring pre-listing employee shareschemes) was $15.5m, compared with a prospectus forecast of $11.5m. Earnings beforeinterest and tax (EBIT) (and before costs of restructuring pre-listing employee shareschemes) at $22.9m was 17.6% ahead of forecast and 126.6% ahead of the 2003 year.The improved performance was due to better than expected sales performance in ourWholesale and United Kingdom businesses and improved margins in Australia andNew Zealand.The Company enters the new year in a very sound financial position. With borrowings ofjust $4.7m we have capacity to fund all foreseeable growth. Our store roll-outprogramme in Australia, New Zealand and the United Kingdom is on track to exceed theprospectus forecasts, and our Wholesale customer base is also performing strongly. ExtraWholesale outlets are planned in the Middle East and Ireland whilst our partners in theUnited States are now looking to introduce concept stores.Our corporate governance practices are now fully disclosed on our investor relationswebsite (www.pumpkinpatch.biz) and summarised in the corporate governance sectionof this report.We look forward to paying our first dividend in April 2005 (as forecast in the prospectus)based on the six months ending 31 January 2005.4