Jacques Vert PLC – Preliminary Results

Embargoed until 000am,

Ian Johnson, Group Finance Director

Photographs available: Please contact , as above

, the womenswear clothing retailer, is pleased to announce its Preliminary results for the 5 weeks ended 0 April 2011, together with an update on trading for the nine weeks since that date.

The Group retails four womenswear brands: Jacques Vert (LSE: JQV.L news) , Windsmoor, Planet and Precis. Sales are made predominantly in the UK, Canada and Ireland (Berlin: IIK.BE news) through circa 870 outlets and through the Group’s own website and third party websites.

o Retail (Santiago: RETAIL.SN news) sales up % to £.m (2010: £11m)

o Gross margin of 8% (2010: .7%)

o Profit before tax up .1% to £m (2010: £1m)

o Dividend proposed of 0. pence per share representing an increase of %

o Year end cash of £10.1m (2010: £1m)

o Net (Berlin: NETK.BE news) assets of £25m (2010: £m)

o On a like for like basis, retail sales in the nine weeks since 0 April 2011 were 7% higher than the same period in the prior year.

Commenting, , , said: “With positive like for like sales, our brands have performed well in what has been a difficult trading environment. Operationally, we have taken significant steps forward and are well positioned for the future. Although we have made a good begin to the new financial year we remain cautious for the year as a whole.

“Our return to the dividend list last year after such a long absence, was well received so I am very pleased we are proposing a higher payment this year”.

The trading environment has been difficult over the last year which has affected most areas of the retail market and against that background I believe that our brands have performed well.

Profit before tax for the year of £m compares with a profit of £1m in the prior year. We have made amusing progress in developing the ecommerce business and it is also worth noting the Jacques Vert and Precis brands have both performed particularly strongly. Our international business also delivered encouraging growth.

On the operational front we have taken significant steps forward and the on-going investment programme in new systems and infrastructure will position us well for the future.

The return to the dividend list last year was well received by shareholders and I am pleased to report the Board is proposing an increased final dividend of % to 0.p per share in respect of the year ended 0 April 201

I believe that this financial year will be challenging but I am pleased with the begin we have made and I am confident that the business is well positioned to benefit from any improvement in the market.

Finally, I would like to extend my thanks on behalf of the Board to all our staff for their contribution and support through the year.

Group operating profit for the 5 weeks ended 0 April 2011 was £m (2010: £m). Profit before tax was £m (2010: £1m), an increase of .1%.

Against a backdrop of an unpredictable retail climate the business has performed well. (Euronext: FP.NX news) sales for the year at £.m (2010: £11m) were % ahead of last year. Like for like sales were 0% ahead of last year.

At the end of the year the Group operated from 87 outlets compared with 90 outlets at the beginning of the year.

One of the features of the current retail market, which has become increasingly apparent as the year has progressed, is the level and frequency of markdown activity which has had a negative impact on gross margins. In addition, as noted at the time of the Interim statement, gross margin is also being eroded by supplier cost inflation. The cumulative effect of these factors has resulted in gross margin declining slightly to 8% (2010: .7%).

, which comprise mainly of the costs of operating stores, were £58.m (2010: £9m).

at £10.m (2010: £1m) have declined by % compared to the prior year. The higher level of administrative expenses in the prior year was due to significant one off costs and the level of expense in the current year reflects a more normal level of activity.

Cash at the year end amounted to £10.1m (2010: £1m). The Group has embarked on a significant investment programme to replace its IT and ecommerce systems and to invest in the retail estate. As a result, capital expenditure in the year amounted to £9m (2010: £1m). In addition there was a further outflow of £m during the year relating to the payment of a dividend to shareholders (the first since 95) together with a buy of shares on behalf of the ESOP Trust of £1m.

Working capital requirements also increased during the year to support the increase in trading and in particular the investment in stock for ecommerce.

Sales since the year end have continued to be unpredictable and it has been difficult to discern a particular trend and as a result we are cautious about the outlook for this financial year. The Group has, however, made an encouraging begin to the new financial year and sales in the nine weeks since the year end have increased by 7% on a like for like basis. Gross margin is marginally lower than last year, primarily due to on-going cost pressures from suppliers. We continue to reevaluate our supply base and the wider supply chain in an effort to improve margins.

Despite the challenging market conditions we are well placed for the new financial year; the new Jacques Vert Autumn/Winter (Stuttgart: A0XFUK news) 2011 collections have been well received by customers, we have secured new premium concession space in host stores and believe there are further opportunities to develop our ecommerce business both in the UK and internationally. In addition, when the new systems implementation has been finished it will open up opportunities to improve significantly the operating effectiveness of the business, even though the benefits will not be seen until the next financial year.

For the 5 weeks ended 0 April 2011

(Stockholm: NOTE.ST news)

5,1

attributable to holders of the Group

for profit attributable to the holders of the Group during the year

Group statement of comprehensive income

For the 5 weeks ended 0 April 2011

5 weeks ended

0 April 2011

2 April 2010

Actuarial gain / (loss) arising in defined benefit pension

Currency translation differences

(55)

Other comprehensive expenses for the year, net of tax

comprehensive income for the year attributable to holders of the Group

,091

,089

Group statement of changes to

For the 5 weeks ended 0 April 2011

,599

(,97)

20,11

Actuarial loss on pension

(,07)

Fair value of transferred to inventories

comprehensive income for the 52 weeks to 2 April 2010

,81

,089

Adjustment for employee share

()

Balance at 2 April 2010

,599

()

(1,92)

2,10

Actuarial gain on pension

cashflow hedges

(1,1)

Fair value of transferred to inventories

(55)

comprehensive income for the 5 weeks to 0 April 2011

(55)

5,0

,091

(1,)

Adjustment for employee share

Balance at 0 April 2011

,599

()

25,

The merger reserve arose on business combination prior to transition to IFRS which had been accounted for according to the provisions of merger accounting.

The hedge reserve reflects the fair value of effective , deferred in under the provisions of hedge accounting, less amounts recognised in hedged inventories, received prior to the year end.

The translation reserve reflects the cumulative movement in the value of foreign denominated subsidiaries in the financial statements from fluctuations in exchange rates.

At 0 April 2011

0 April 2011

2 April 2010

2,1

,175

9,18

2,580

22,89

10,85

Derivative financial instruments

5,12

7,95

(22,50)

(2,500)

Derivative financial instruments

(99)

(0)

(2,97)

(2,10)

Noncurrent liabilities

(8)

(50)

for liabilities and charges

(5,20)

(,0)

(59)

()

liabilities

(1,591)

25,

2,10

Calledup share capital

,599

()

(1,92)

25,

2,10

For the 5 weeks ended 0 April 2011

5 weeks ended

0 April 2011

2 April 2010

Cashflows from operating activities

Loss on disposal of property, plant &mp; equipment

1,8

(Decrease) / increase in working capital

,577

(1,85)

(1,55)

Charge relating to share based payments

Net cash inflow from continuing operations

9,11

()

(22)

Net cash generated from operating activities

Cashflows from investing activities

Purchase of property, plant and equipment

(2,98)

Net cash outflow used in investing activities

Cash flows from financing activities

paid to company’s shareholders

(1,)

Purchase of shares by ESOP Trust

()

Net cash used in financing activities

()

Net (decrease)/ increase in cash and cash equivalents

(2,20)

8,08

at beginning of period

on cash and cash equivalents

()

at end of period

s to the Preliminary Results

For the 5 weeks ended 0 April 2011

For the period to 0 April 2011, the Group has prepared its consolidated financial statements in accordance with International Financial Reporting Standards as adopted for use in the EU (“IFRS”) and those parts of the Companies Act 200 applicable to companies reporting under IFRS. Accordingly, the Directors have applied the accounting policies set out in

The figures for the 5 weeks ended 0 April 2011 included in this announcement have been extracted from the audited financial statements for the 5 weeks ended 0 April 2011 which were approved by the Board of Directors on July 201 The figures for the 5 weeks ended 0 April 2011 and do not constitute statutory accounts within the meaning of section 5 of the Companies Act 200. The figures for the 52 weeks period ended 2 April 2010 have been extracted from the financial statements filed with the Register of Companies and contain an unqualified audit report and no statements under sections 98(2) or 98() of the Companies Act 200.

and costs

5 weeks ended

0 April 2011

2 April 2010

Unwinding of discount on provisions

(0)

Net finance cost of pension

(1)

(11)

The income tax expense comprises:

5 weeks ended

0 April 2011

2 April 2010

Basic / diluted earnings per share

The basic earnings per share have been calculated by dividing the profit after taxation for the year by the weighted average number of shares in issue during the year excluding those held by the Employee Share Ownership Trust (“the Trust”). At 0 April 2011 8,98,178 shares were held in the Trust (2 April 2010: 1,98,178).

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has two classes of dilutive potential ordinary shares: those share options allowed to Directors where the exercise price is lower than the average market price of the Company’s ordinary shares during the year and the awards under the Long Term Incentive Plan (“the Plan”) to the extent that performance criteria attached to those awards are expected to be met.

0 April 2011

2 April 2010

Weighted average number of ordinary shares in issue

Adjustment for shares held by the Trust

(,851)

Weighted average number of ordinary shares in issue for basic earnings per share

185,59

1,2

Dilutive shares shares committed under the Plan

10,52

,72

Weighted average number of ordinary shares in issue for diluted earnings per share

,15

8,12

The Directors propose a final dividend of 0.p per share (2010: 0.5p) amounting to £1,2,000 (2010: £1,,000). The final dividend will be paid on 1 October 2011 to shareholders whose names are on the Register of Members at the close of business on 1 September 201

7,2

(1,8)

(1,12)

Charged to the income statement

()

Actuarial loss on pension

At 2 April 2010

,97

(22)

(1,1)

(1,57)

Charged to the income statement

Actuarial gain on pension

()

At 0 April 2011

5,20

relate to costs faced by the Group which do not relate to current trading activity. They include: the costs of onerous leasehold property including dilapidations; potential claims against the Group in respect of industrial diseases; and the expected cost to the Group associated with the Group’s pension .

The charge made during the year to 0 April 2011 comprised the movement in fair value of the phantom option over 10 million shares in allowed to the Trustee of the Jacques Vert (200) pension scheme, together with costs expected in connection with the Group’s pension , less a release following the settlement of an onerous lease during the year.

The following new standards, amendments and interpretations issued by the International Accounting Standards Board (“IASB”) are mandatory for the first time for the financial year beginning 25 April 2010 but none has had a material effect on the results or the net assets of the Group:

· IFRIC 1 “Hedges of net investment in a foreign operation”.

· IAS 9, “Financial Instruments: Recognition and measurements” regarding eligible hedged items.

· Amendments to IRFRS 1, “First (OTC BB: FSTC.OB news) time adoption” regarding disclosures on financial instruments.

· IFRS 2, “” regarding group cashsettled sharebased payment transactions.

The following new interpretations are mandatory for the first time for the financial year beginning 25 April 2010, but are not currently relevant for the Group:

· IFRIC 15, “Agreements for the construction of real estate”.

· IFRIC 17, “Distributions of noncash assets to owners”.

· IFRIC 18, “Transfer of assets from customers”.

The following new standards, amendments and interpretations have been issued, but are not effective for the financial year beginning 25 April 2010. They are not currently relevant to the group:

· Amendments to IAS 2 (revised), “Related party disclosures”

· Amendments to IFRIC 1, “IAS the limit on defined benefit assets” regarding the prepayment of the minimum funding requirement.

· IFRIC , “Extinguishing financial liabilities with instruments”.

The consolidated financial statements have been prepared under the historical cost convention, as altered by the revaluation of financial assets and liabilities at fair value.

The Group financial statements consolidate the results of (“the Company”) and its subsidiary undertakings (together “the Group”) under acquisition accounting for the 5 weeks ended 0 April 201 Under this method, the assets and liabilities of subsidiary undertakings acquired are incorporated at their fair value at the date of acquisition and the includes only that proportion of the result of subsidiaries arising whilst meeting the definition of a subsidiary.

Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

recognition

represents sales by the Group to third parties, net of returns, trade discounts and value added tax. Retail revenue is shown net of provisions for customer returns representing the Group’s estimate of the amount of product sold during the year that will be returned in the following year. is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer which is generally when goods are delivered to the customer.

and expense

Interest income and interest payable is recognised in the as it accrues.

The Group operates an settled Employee Share Ownership Plan (“ESOP”). The Group has also allowed settled share options (“Options”). Share awards made under the ESOP and the Options are measured at fair value at the date of grant. The fair value is measured by use of the BlackScholes model and expensed on a straightline basis over the vesting period based on an estimate of the number of shares that will eventually vest.

The level of vesting is reviewed annually, together with the value of employers NICs arising from the expected vesting and the charge is adjusted to reflect actual and estimated levels of vesting.

Shares held by the Employee Share Ownership Trust (“the Trust”) to meet the commitments of the ESOP are shown as a deduction from shareholders’ . The cost of the ESOP is borne by the Group.

The Group operates several defined contribution and defined benefit for its employees.

Defined contribution are pension under which the Group pays fixed contributions into separate entities. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Defined benefit are pension that are not defined contribution .

The liability recognised in the balance sheet in respect of defined benefit pension is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognised pastservice costs. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to in the Group statement of comprehensive income in the period in which they arise.

Actuarial surpluses in defined benefit are recognised in the to the extent of the expected future cash receipts from the .

arising on consolidation represents the excess of the cost of acquisitions over the Group’s interest in the fair value of the identifiable assets and liabilities of the acquired entities at the date of acquisition.

is recognised as an asset and is assessed for impairment at least annually. Any impairment is recognised immediately in the and is not subsequently reversed. Upon disposal of a subsidiary the attributable goodwill is included in the calculation of the profit or loss arising on disposal.

The tax charge comprises current tax payable and movement on deferred tax. The current tax payable is provided on taxable profits using tax rates enacted or substantively enacted at the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.

A net deferred tax asset is recognised as recoverable and therefore recognized only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on an undiscounted basis.

Deferred tax is recognised in respect of the retained earnings of overseas subsidiaries only to the extent that, at the balance sheet date, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future periods has been entered into by the subsidiary.

are said at the lower of cost less accumulated depreciation and recoverable amount. Cost includes the original buy price of the asset plus the costs attributable to bring the asset into working condition for its intended use. Depreciation is calculated so as to write off the cost of property, plant and equipment less any residual value over their estimated useful economic lives by equal annual installments at the following rates:

10% %

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Asset carrying values are written down immediately to the estimated recoverable amount where the estimated recoverable amount is less than the carrying value.

Rentals payable under operating leases are charged to the on a straightline basis over the life of the lease.

The value of any lease incentives received on leasehold properties is recognised as deferred income and released to the income statement on a straightline basis over the life of the lease.

are valued at the lower of cost and net realisable value. Cost comprises the cost of direct materials and labour and an appropriate proportion of overheads. Net realisable value is the value at which inventories and work in progress can be realised in the ordinary course of business.

Trade receivable are amounts due from customers for merchandise sold in the ordinary course of business. are recognised at fair value less any provision for impairment.

Transactions denominated in foreign currencies are translated at the exchange rates at the date of the transaction. Foreign exchange gains and losses arising from such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the .

The results and financial position of subsidiaries which have a functional currency other than Sterling are translated as follows:

assets and liabilities for each balance sheet presented are translated at the closing rate at the date of the balance sheet;

income and expenses for each income statement presented are translated at weighted average exchange rates;

all resulting exchange differences are recognised as a separate component of until the disposal of the relevant subsidiary when they are recycled to the .

are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. are held at their nominal value.

Derivative financial instruments

The Group uses derivative financial instruments, in particular forward currency contracts, to manage the financial risks associated with the Group’s underlying business activities and the financing of those activities. Such financial instruments are initially recorded at fair value and are thereafter revalued to fair value at each balance sheet date. The Group does not enter into speculative currency contracts.

Gains or losses on derivative financial instruments that are designated as effective hedges against future cash flows are recognised directly in (“hedge accounting”). Any gain or loss relating to an ineffective hedge or a derivative financial instrument that does not qualify for hedge accounting is immediately recognised in the , and where material as an exceptional item.

Where a hedged commitment results in the recognition of an asset or a liability, the gain or loss on the hedge previously recognised in is thereafter included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or liability, amounts deferred in are recognised in the income statement in the same period in which the hedged commitment affects profit and loss.

Hedge accounting ceases in respect of a financial instrument when it expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. The cumulative gain or loss relating to the instrument that has previously been recognised in is retained in until the hedged transaction occurs or hedge accounting ceases to apply.

comprise cash balances and short term deposits. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

are recognised when either a legal or constructive obligation, as a result of a past event, exists at the balance sheet date and where the likely outcome and the amount of the obligation can be measured with reasonable certainty. are discounted at an appropriate discount rate.

are made against Group assets under the following conditions:

is allocated to the Group’s cash generating units (CGU (SNP: ^CGUY news) ‘s) and the recoverable amount of each CGU is determined based on a valueinuse calculation where appropriate.

is tested when circumstances indicate a possible impairment. In those circumstances a valueinuse calculation is performed.

Assumptions used in the calculations to assess impairment of goodwill and property, plant and equipment are based on performance and the latest financial plans approved by the board. If the recoverable amount of a CGU is less than the carrying value of all assets allocated to that CGU, an impairment is recognised.

is the first asset class to be impaired, followed by property, plant and equipment.

Critical estimates and judgements

The preparation of financial statements under IFRS requires management to make estimates that affect the reported amounts of assets and liabilities, income and expenses. These estimates are based on historical experience and various other factors that are believed to be reasonable in the particular circumstance. Actual results may differ from these estimates.

The Group’s critical judgement areas relate to the recognition of pension scheme assets; legacy and other business provisions, including industrial diseases, together with the assessment of the highly probable nature of cashflow hedges as follows:

(a) scheme assets Jacques Vert (200) pension scheme

Any repayment to the Group of the surplus held within the scheme at 0 April 2011 is at the discretion of the pension scheme Trustee. It is currently considered that no repayment will be made to the Group in the future. At 0 April 2011 the value of the surplus was £10,807,000 (2010: £8,277,000).

(b) Legacy and other business provisions

The level of provisions held against legacy and current activities is assessed with reference to payments made during the period; expectations of future payments and receipts and, where relevant, to independent advice. At 0 April 2011 the value of such provisions was £5,20,000 (2010: £,0,000) (see note ).

(c)

are tested for effectiveness based on estimated currency requirements assuming a substantially consistent supplier base. At 0 April 2011 the net value of was a liability of £892,000 (2010: net asset of £25,000).

ENDS

source : uk.finance.yahoo.com