- Part I: Summary
- Part II: Risk Factors
- Part III: The Scheme of Arrangement and Share Capital Consolidation
- Part IV: Directors, Company Secretary, Registered Office and Advisers
- Part V: Presentation of Statisical Data and Other Information
- Part VI: Information on The Group
- Part VII: Directors and Corporate Governance
- Part VIII: Selected Financial Information
- Part IX: Operating and Financial Review
- Part X: Accountant's Reports and Financial Information
- Part XI: Interim Financial Information of The Group for The 26 Week Period Ended 2 August 2008
- Part XII: Additional Information
- Part XIII: Definitions
5. CURRENT TRADING, TRENDS AND PROSPECTS
In the 26 weeks ended 2 August 2008 Group income before income taxes excluding non-recurring costs of $10.5 million related to the move of the primary listing to the NYSE fell by 28.6% to $81.2 million (H1 2007/08: $113.7 million). Like for like sales were down by 3.4% and total sales by 0.6% to $1,591.4 million (H1 2007/08: $1,601.8 million). The average US dollar exchange rate for the period was £1/$1.98 (H1 2007/08: £1/$1.99). The components of the change in sales are set out below:
| Change in sales | US % |
UK % |
Group % |
|---|---|---|---|
| Like for like sales | (5.2) | 2.3 | (3.4) |
| Change in new store space | 4.4 | (1.9) | 2.9 |
| Exchange translation | - | (0.5) | (0.1) |
| Total sales growth as reported | (0.8) | (0.1) | (0.6) |
Operating income excluding relisting costs fell by 24.1% to $93.9 million (H1 2007/08: $123.7 million) and operating margin was 5.9% (H1: 2007/08: 7.7%). On a reported basis the operating income was $83.4 million.
The tax rate was 35.8% (H1 2007/08: 34.7%) and net income for the financial period was $45.4 million. Diluted earnings per share were 2.7c (H1 2007/08: 4.4c). The Signet Board has approved an unchanged interim dividend of 0.96c.
The Group’s strong balance sheet and superior operating metrics on both sides of the Atlantic enables the business to continue to implement its proven strategy. Appropriate adjustments in execution are being made to reflect the challenging economic conditions with tight control of costs, inventory, gross merchandise margin and investment in new space. As a result the business will be well positioned when the economy improves. However, in the short term, the consumer environment in both the US and the UK remains very challenging. As always, the results for the year will be significantly influenced by the Group’s performance during the important Christmas period.
As at the date of this document, there have been no material changes in the capitalisation and indebtedness of the Company or the Group since 2 August 2008.