JACQUES VERT PLC 

PRELIMINARY RESULTS

Jacques Vert Plc, the womenswear clothing retailer, is pleased to announce its preliminary results for the 52 weeks ended 26 April 2008, together with an update on trading for the 10 weeks since that date.

The Group retails four womenswear brands: Jacques Vert, Windsmoor, Planet and Precis. Sales are made predominantly in the UK, Canada and Eire through circa 940 outlets.

The key points are:

• Retail sales 1% higher than last year at  £114.9m (2007: £114.1m) and 0.5% ahead on a like for like basis

• Gross margin % in line with last year at 63.0%

• Operating profit before exceptional items of £4.7m (2007: £5.7m)

• Profit after tax of £1.6m after a net exceptional credit of £0.3m (2007: £19.6m after a net exceptional credit of £14.7m) 

• Year end cash of £2.5m (2007: cash of £3.6m less borrowings of £4.5m)

• Net assets at 26 April 2008 of £22.3m (2007: £19.7m)

• Sale of overseas subsidiary, Bairdwear Interfashion (Pvt) Limited, realising £0.4m net cash to the Group

• Retail sales decreased by 5.9% in the 10 weeks since 26 April 2008 and like for like sales decreased by 5.9%

Commenting, Steve Bodger, Chairman, said:

"Our brands have performed well in difficult trading conditions. I am confident that our strong financial position will enable us to benefit from any improvement in the market."

CHAIRMAN'S STATEMENT

The past year has proved to be a difficult trading environment and has affected most areas of the retail market. Against that background our brands have performed well.

Operating profit before exceptional items for the year at £4.7m is down on the previous year but the Company has improved the strength of the balance sheet considerably during this time. The net cash position at the year end also underlines this point. 

We sold the Group's subsidiary in Sri Lanka in January 2008, which means the business is now wholly focused on retail. This disposal simplifies the business and removes a distracting issue for the management team. 

I would like to express my thanks to my predecessor, Derek Lovelock, who stepped down earlier this year for the valuable contribution he has made to the business and to wish him all the best for the future. I also extend my thanks, on behalf of the Board, to all our staff for their contribution and support through the year.

I expect that the remainder of this financial year will be very challenging; but I am confident that the steps taken to consolidate our strong financial position will enable us to benefit from any improvement in the market.

Steve Bodger  Chairman

7 July 2008

CHIEF EXECUTIVE'S STATEMENT

Our financial results for the year have been impacted by the slowdown in the retail environment in the final quarter of the financial year.

Group operating profit before interest and exceptional items from continuing operations for the year ended 26 April 2008 was £4.7m (2007: £5.7m). Profit after tax was £1.6m after a net exceptional credit of £0.3m (2007: £19.6m after a net exceptional credit of £14.7m).

Continuing operations

Against a backdrop of a very challenging retail climate, the business has performed creditably. Sales for the year at £114.9m (2007: £114.1m) were 1% ahead of last year. Like for like sales are 0.5% ahead of last year. The results have been particularly impacted by the poor trading performance during the final six weeks of the financial year, traditionally a very important trading period for the Group. 

At the end of the year the Company operated from circa 940 outlets, a similar number to the level at the previous year end.

The market continues to be affected by an aggressive level of discounting by our competitors. In spite of this, gross margin for the year of 63% has been maintained at the same level as last year. 

Distribution costs, which comprise of mainly the costs of operating stores, were £57.0m (2007: £ 57.0m) and administrative expenses were £10.7m (2007: £9.3m).

Discontinued operations

On 31 January 2008, Jacques Vert completed the disposal of Bairdwear Interfashion (Pvt) Limited, a manufacturing operation in Sri Lanka. The results of this business have therefore been treated as discontinued operations in this statement.

After costs relating to the transaction, Jacques Vert received net cash of approximately £0.4m, which included the repayment of existing debt of £0.5m. An overall loss of £1.9m has been recognised in the accounts in respect of the disposal of this business.

Exceptional items

The result for the year includes a net exceptional credit of £0.3m (2007: £14.7m). This net credit comprises a reduction in the fair value of the phantom option over shares in the Company granted to the Baird Group Pension Scheme offset, in the main, by an increase in provisions for onerous properties.

Balance sheet 

Focus has continued on improving the strength of the balance sheet and at the year end net assets were £22.3m (2007: £19.7m). Cash generation in the year has been strong and at the year end cash balances were £2.5m (2007: Cash of £3.6m less borrowings of £4.5m).

The level of inventories has reduced by 11% to £24.9m (2007: £28.0m). Given the current trading environment, emphasis will continue on controlling and reducing working capital.

IFRS

For the financial year ending 26 April 2008 the Group is required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS). The parent company has opted to continue to prepare its accounts under UK GAAP.

Details of the differences may be found in note 2 of this announcement. At 26 April 2008, net assets are unchanged compared to UK GAAP however the total values of the Group's assets and liabilities are £0.5m higher under IFRS.

Current trading and prospects

Sales in the 10 weeks since the year end are 5.9% lower than last year and 5.9% lower on a like for like basis. Despite the pressure on sales, gross margin % is slightly ahead of the previous year. 

We expect the remainder of this financial year will continue to be characterised by the difficult trading conditions. Company plans and expectations have been formulated on this assumption and our emphasis will be focused on managing cash, which will include ensuring that stocks and costs remain under tight control.

Paul Allen  Chief Executive

7 July 2008

Group income statement             

For the 52 weeks ended 26 April 2008

Statement of recognised income and expense

52 weeks ended 26 April 2008

Group balance sheet                    

At 26 April 2008

Group cash flow statement                    

For the 52 weeks ended 26 April 2008

Notes to the Preliminary Results    

For the 52 weeks ended 26 April 2008

1.    Accounting Policies

For the period to 26 April 2008, 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 1985 applicable to companies reporting under IFRS. Accordingly, the directors have applied the accounting policies set out in Note 9. Due to the transition from UK Generally Accepted Accounting Principles ("UK GAAP") to IFRS, the comparative figures for the 52-week period ended 28 April 2007 are not as shown in the statutory accounts for that period. The financial statements for that period, prepared under UK GAAP, have been delivered to the Registrar of Companies. The auditors report on these financial statements was unqualified and did not include a statement under Section 237 (2) or (3) of the Companies Act 1985.

The financial information set out in this announcement does not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985 and is an abridged version of the Group's financial statements for the 52 weeks ended 26 April 2008 which were approved by the Directors on 7 July 2008. 

2.    Adoption of IFRS

a) Revised accounting policies

The Group adopted IFRS with effect from 29 April 2006 and has taken certain exemptions under IFRS 1, "First time adoption of international financial reporting standards" as follows:

IFRS 3, "Business combinations"

The Group has elected not to apply IFRS 3, "Business combinations" retrospectively to acquisitions that took place before the date of transition.

IAS 21, "The effects of changes in foreign exchange rates"

The Group has elected to set all brought forward translation gains and losses in equity to zero at the date of transition.

IAS 16, "Property, plant and equipment"

The Group has elected to continue to recognise property, plant and equipment at historic cost less accumulated depreciation on transition to IFRS.

The Group's accounting policies are set out in full in Note 9. Excerpts from those accounting policies adopted as a result of the application of IFRS and which affect the results or net assets of the Group are shown below:

IFRS 3, "Business combinations"

Goodwill on acquisition of subsidiaries is included within 'intangible assets'. Goodwill is not amortised but is tested annually for impairment. Impairment losses are not reversed. Gains and losses on the disposal of an entity include the carrying value of goodwill relating to the entity sold.

IAS 17, "Leasing"

Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Inducements to enter into a lease are recognised over the full lease term. 

IAS 32 and IAS 39, "Financial Instruments"

Financial instruments that are documented as part of an effective cash flow hedge are recognised directly in equity and recycled to the income statement when the underlying cash flows occur, or are no longer expected to occur.

IAS 1, "Presentation of financial statements"

The directors consider transactions that are material in size and/or nature warrant specific disclosure in the primary financial statements. These are highlighted as exceptional items in the income statement. Further details are included in Note 3. Such transactions are treated consistently in each period that they arise.

There are no differences between cash as previously shown under UK GAAP and cash and cash equivalents under IFRS.

3.    Exceptional items

The Group's operating profit for the period includes the following exceptional items: