Brand Architekts Grp – Half-year Report

Brand Architekts Grp – Half-year Report

Business highlights

·      Disposal of the manufacturing business completed on the 23 August 2019

·      Quentin Higham appointed as Chief Executive Officer, he will join the Company and the Board on 4 May 2020

·      Operational transition to a stand-alone branded business now complete

·      New ERP system successfully implemented

·      A number of key 'drive' brands continue positive growth trend

·      Further growth in e-commerce sales

·      2 major brands relaunched, 99 new product lines launched


Financial highlights

Continuing Operations

·      Revenues declined by 15% to £10.6m significantly impacted by a strong decline in international sales (-23% vs prior year) resulting from currency devaluation in a key market and tariff pressures

·      UK sales declined by 13% vs prior year impacted by a challenging retail environment

·      Gross profit margin improved to 37.6% (FY19: 35.1%) helped by focus on higher margin brands and channels

·      Underlying operating profit (before central costs) of £1.6m (FY19: £2.5m)

·      Underlying operating profit margin (before central costs) is at 15% (FY19: 20%)



·      PBT of £6.6m (FY19: £0.7m) heavily impacted by profit on disposal of the manufacturing business (£8.8m) offset by a loss on discontinued operations (including exceptional costs) of £2.5m

·      Underlying PBT (continuing operations) declined 33% to £1.2m (FY19: £1.7m)

·      £15.1m net cash positions us well for future growth

·      Interim dividend proposed at 0.9p per share

 £m unless otherwise stated



 Reported results from continuing operations  ¹




 Underlying operating profit ¹



 Adjusted basic earnings per share ¹



 Statutory results for the whole group including discontinued operations




 Operating profit before exceptional items



 Profit on disposal of manufacturing business



 Basic earnings per share



 Total dividend per share



  Net cash / (debt)



¹ Underlying operating profit is calculated before LTIP, amortisation of acquisition related intangibles, exceptional items and net borrowing costs.  Adjusted earnings per share is calculated using operating profit before exceptional items and amortisation of acquisition related intangibles.


Brendan Hynes, Executive Chairman, commented: "The business is now through a challenging calendar year where the difficult market conditions, the distraction of the sale of the manufacturing business and significant management changes have all had an impact on results. Having now completed the operational transition to a fully focused branded business with a very strong balance sheet and appointment of a CEO with deep industry experience, the business is well positioned to build scale and deliver further profitable growth."

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