Arcadia Group Financial Results For The 53 Weeks Ended 2 September 2006, as follows:
Financial highlights Operating profit of £300.6m, down 8.1 percent from £327.2m. Total sales up 1.8 percent at £1,801.1m from £1,769.7m. Like for like sales down 1.9 percent.
Gross margin level with last year. Operating margin down 1.8 percentage points from 18.5 percent to 16.7 percent. EBITDA £357.5m, down £24.3m from £381.8m. Capital expenditure increased to £123m from £65m last year. No dividend has been declared.
Commenting on the announcement Philip Green said: “I am pleased to report an operating profit of £300.6m. This represents a strong performance when set against a competitive retail market, significant investment in new space by our competitors, and underlying cost inflation for all retailers. Our operating margin at 16.7 percent is still among the best in the industry.
Like for like sales since the year end are down 1 percent. However our disciplined stock control has enabled us to maintain our trading margins.
Our cash generation remains strong, enabling continued investment in all our brands. We have opened 46 new outlets comprising some 288,000 square feet during the year, and have re-sited a further 20.
Capital investment including new stores, refurbishments and e-commerce has increased from £65m last year to £123m this year.
We are continuing this investment, having already committed this year over £30mto new space and refurbishments, demonstrating our confidence in the business and the brand management teams.