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Marchpole Holding's Annual General Meeting statement

Sep '06
At Marchpole Holding's Annual General Meeting to be held this morning, the non-executive Chairman of Marchpole Holdings plc, Christopher Phillips, will give the following statement and update on current trading.

At the time of the announcement on 28 June 2006 of our results for the year ended 31 March 2006 I was pleased to report continued improvement in the business with increased turnover and operating profit and a strong forward order book.

In line with our strategy, the Company continues to evolve from a single-brand, single country business to a diversified, international business with a portfolio of brands. We have significantly extended our global reach and now operate in the UK, Europe, Asia, the US and the Middle East.

The current financial year has started well, with deliveries and orders for Autumn/Winter collections at record levels and our Spring/Summer 2007 collections for all our brands having been well received and forward order books building in line with expectations.

We are pleased to report that the integration of Moda America, the US licensee for Emanuel Ungaro which was acquired in March 2006, has been successful and immediately earnings enhancing. It has provided the Company with an opportunity to expand significantly the business into the USA.

Importantly, the Board believes business from Moda will offset the termination of the YSL licence in December 2006.

Furthermore, not only does it strengthen our relationship with Emanuel Ungaro but it also provides us with the opportunity to re-launch our wholly-owned brand, Jean Charles de Castelbajac ('JCC'), into America with effect from Autumn/Winter 2006.

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