stock exchange announcement
IC Companys A/S - Interim Report H1 2008/09
Revenue increased 1% to DKK 2,041 million in the first half year of
the financial year. However, impacted by the currently unfavourable
market, operating profit is down to DKK 202 million, equivalent to a
33% decline. Consequently, the Executive Board has launched a number
of initiatives, which all are targeted at increasing the Group's
earning capacity and revenue.
At its meeting on 22 February 2009 the Board of Directors of IC
Companys A/S has approved the Interim Report for the period 1 July -
31 December 2008.
* The Group reported revenue of DKK 2,041 million (DKK
2,015 million) corresponding to a growth of 1%. Same-store sales in
the Group's own stores declined by 4% in the first half of the
financial year. The second quarter records a decline of 8%.
* Gross profit came to DKK 1,211 million (DKK 1,229
million) including additional inventory write downs amounting to
DKK 24 million. This equals a gross profit of 59.3% (61.0%).
* Operating costs came to DKK 1,009 million (DKK 928
million), the equivalent of a 9% increase. Adjusted for
non-recurring impacts of combined DKK 42 million, the increase came
to 4%. This corresponds to an adjusted cost rate of 47.4% (46.1%)
* Operating profit in the first half of the financial year
is down by 33% to DKK 202 million (DKK 301 million) corresponding
to an EBIT margin of 9.9% (14.9%). Adjusted for non-recurring
impacts of a total of DKK 66 million, the Group records an EBIT
margin of 13.1%.
* Order intake for all four collections for delivery in
2008/09 is completed showing a combined 1% growth. Order intake for
the 2009 summer collection reported a 21% setback and a decline for
the autumn collection 2009 is further expected.
* As previously announced in September 2008 in connection
with the annual report 2007/08, the Executive Board has launched a
number of initiatives within the areas of rationalisation of the
cost structure, adjustment of the distribution strategy and
optimisation of the value chain, all of which aimed at increasing
the Group's earnings capacity and revenue.
The action taken is expected to result in a cost base reduction
amounting to DKK 200-250 million as measured against the financial
year 2007/08. A regrettable consequence is that 140 employees will be
terminated - of which 60 are in Denmark. In addition, 150 employees
are expected to be transferred to new distributors. The cost savings
are expected to have full effect in the financial year 2009/10.
Reestimation future guidance
* For the full year 2008/09 expectations remain slightly
lower revenue as compared to the financial year 2007/08. For the
full year 2008/09, an operating profit in the region of DKK 110-160
million is now expected including total non-recurring impacts in
the region of DKK 100-120 million (previously: significantly lower
than in the financial year 2007/08).
* Investments in the region of DKK 120-140 million will be
carried through, primarily to direct sales promoting activities,
including interior design of stores and showrooms.
* The execution of the actions mentioned in the above
concerning rationalisation, distribution strategy and value chain
is expected to result in positive consolidated earnings in 2009/10
as well as the investment rate is expected to be maintained.
further information
Niels
Mikkelsen
Chris Bigler
Chief Executive Officer Chief
Financial Officer
Tel.: + 45 3266
7721 Tel.:
+45 3266 7017
financial highlights and key ratios
Disclaimer
This announcement contains future-orientated statements regarding the
Company's future development and results and other statements that
are not historic facts. Such statements are based on the currently
well-founded prerequisites and expectations of the management that
may prove erroneous. The actual results may deviate considerably from
what has been outlined as planned, assumed, assessed or forecast in
this announcement.
This announcement is a translation from the Danish language. In the
event of any discrepancy between the Danish and English versions, the
Danish version shall prevail.
summary
The last quarter was characterised by very unstable market conditions
for the Group's brands and markets, which resulted in a revenue
setback. The Group's profit margin was forced down as a result of the
level of operational costs, lower sell through at full price, higher
discounts and increased inventory write downs relative to last year.
In order to increase the Group's competitiveness, the Executive Board
initiated in August 2008 a number of actions, of all which aimed at
increasing earnings capacity and revenue. The actions concern:
* Rationalisation of the cost structure
* Adjustment of the distribution strategy
* Optimisation of the value chain
The subsequent market development has accentuated and increased the
necessity of these actions. Based on these actions, the Executive
Board believes that the Group will emerge stronger from the currently
unfavourable market conditions.
RATIONalisations
In the first quarter of 2008/09 significant rationalisations were
carried through. First of all, the managements of InWear and
Matinique were integrated under one Brand Director. The same was
executed in Jackpot and Cottonfield. Secondly, the allocation of
responsibilities between brands and sales countries was redefined
with a view to placing unequivocally all operational sales
responsibilities with the sales countries. Finally, a continuous
adjustment of staff was made in, among others, stores and regional
distribution centres. The adjustments have strengthened the executive
momentum for new actions while at the same time reducing the cost
base.
The Executive Board has decided to carry through rationalisations
within two general areas in the third quarter:
* Discontinuation of loss-making activities
* Structural adjustments
The overall objective is to bring down base costs by DKK 200-250
million relative to the financial year 2007/08. The cost savings are
expected to have full effect in the financial year 2009/10. Opening
new stores will, however, result in a decreased effect on total cost
savings.
A regrettable consequence of the actions mentioned in the above is
that 140 employees will be terminated - of which 60 are in Denmark.
In addition, 150 employees are expected to be transferred to new
distributors. Furthermore, apart from the opening of new stores,
since 1 August 2008 110 fulltime positions have been shed primarily
related to natural wastage and by not replacing positions.
Divestment of non-performing activities
The non-performing activities in China and Spain are divested under
their own auspices and are expected to be kept in operation by local
distributors. The divestment is expected to be executed no later than
in first half year of the financial year 2009/10. In addition, a
modest number of non-performing own stores will be discontinued.
Structural adjustments
A number of structural adjustments will be carried out in the shared
platform. Furthermore, a general adjustment of the Group's costs to
the actual activity level is planned. These activities will be
initiated presently and are expected to have full effect in the
financial year 2009/10. A detailed announcement will be published at
the time of implementation.
DISTRIBUTION STRATEGY
A very significant element of the distribution strategy is to
strengthen the cooperation with the Group's third party retailers.
Concurrently with the opening of a controlled number of own stores,
the number of franchise owned concept stores will be increased, and
expanded cooperation with the remaining wholesale will be
established.
More concept stores
In the next financial year, prioritisation is made to expansion to
the number of own stores for Peak Performance and Jackpot. For Peak
Performance, the expansion will primarily be in Scandinavia, and for
Jackpot primarily in Poland, the Czech Republic and Hungary. At the
present time, contracts have been made to open 16 new stores within
the next 15 months.
To run the franchise expansion, the Group has developed a new
franchise concept that fundamentally changes IC Companys' expansion
strategy. The goal is to attract financially strong partners that
each can open several stores without investment contributions from IC
Companys. For the next financial year, franchise expansion is
prioritised for Peak Performance, Jackpot, Saint Tropez, By Malene
Birger and Companys stores.
Controlled wholesale
The Group's goal is to further develop third party retailer relations
into a cooperation, which among other things entails the buying for
third party retailer stores. For the autumn collection 2009, the
Group brands have already worked out order suggestions to selected
customers in each market. The initiative was well received and is
expected to be extended gradually to include the main part of the
Group's customers.
Value chain optimisation
The following constitutes the three focus areas.
Best practice in the collection development
This involves development of the collections to controlled wholesale
and enhanced efficiency of the buying procedures of retail stores,
including own retail. A key element is order suggestions determining
both sales and buying.
Reduction of styles
Assortments offered for in-season sales (SSP) will be made more
efficient. This will reduce the inventory tied up while at the same
time increasing the Group's delivery capacity to the benefit of third
party retailers.
Optimisation of Group sourcing
With a view to counter the pressure from falling selling currencies
and rising sourcing currencies, the concentration of volume is also a
focus area. The goal of the project is to retain the Group's gross
margins at the existing high level.
revenue development
In the first half of the financial year revenue recorded DKK 2,041
million (DKK 2,015 million) equivalent to a 1% growth. Revenue growth
is positively affected by net store openings amounting to DKK 29
million and adversely affected by exchange rate conversions of DKK 31
million.
Sales performance for own brands:
The Group's own brands reported a modest progress of combined 1% in
the first half year of the financial year. However, this does not
reflect the substantial differences between the individual brands.
While Tiger of Sweden and InWear have lost ground, Part Two, By
Malene Birger, Saint Tropez, Soaked in Luxury and Designers Remix
Collection all achieve double-digit growth rates. Tiger of Sweden is
affected in particular on account of the significant share of men's
suits and outerwear, including especially in-season sales to third
party retailers.
Second quarter revenue developed negatively with a combined setback
of 6%. The shift from growth in the first quarter to setback in the
second quarter indicates that impacts derived from the financial
crisis reached full-blown effect from mid-September to mid-December
of 2008.
Sales performance for own brands per market:
Revenue development at country level records double-digit growth
rates in the first half of the financial year 2008/09 for Finland,
Germany, Switzerland, Austria and Russia. It is particularly positive
that Switzerland and Austria in the second quarter of the financial
year 2008/09 report solid progress by a revenue growth of 34% and
22%, respectively.
Recording a setback of 35%, Spain accounts for the weakest
development. As previously mentioned in the summary, the Executive
Board has decided to transfer the activities in Spain to an external
distributor.
In the second quarter of the financial year 2008/09 Sweden saw a
decline of DKK 26 million. To a wide extent this is caused by a
markedly weakened SEK, which accounts for 68% of the decline. The
remaining part of the decline is due to an actual revenue decrease,
to which primarily Tiger of Sweden contributes. A similar development
was observed for the Norwegian market, for which revenue declined DKK
14 million in the second quarter of the financial year 2008/09. For
Norway, a weakened NOK constitutes 62% of the decline. As the
currency risks for SEK and NOK were hedged in the second quarter, the
earnings loss is significantly lower.
Order intake
Order intake for 4 of 4 collections in 2008/09 was completed
recording a combined growth of 1% relative to 2007/08:
Peak Performance, Tiger of Sweden, Part Two, By Malene Birger and
Designers Remix Collection all advance by double-digit growth rates.
This progress is, unfortunately, counteracted by setbacks for InWear,
Jackpot and Cottonfield.
Order intake for the summer collection 2009 was completed showing a
setback of 21%. Order intake for the autumn collection 2009, which
started early January, is also expected to be completed reporting a
setback. Order intake is completed by mid-March 2009.
Distribution channels
Wholesale operation
In the first half of the financial year, wholesale revenue came in at
DKK 1,377 million (DKK 1,368 million) which corresponds to a growth
of 1%. Pre-order revenue increased by 2%, and in-season sales
decreased by 8%. Franchise revenue is included herein and records a
decline of 1%.
The distribution channel profit of the wholesale operation is down by
14% to DKK 248 million (DKK 287 million) which equals a distribution
channel profit margin of 18.0% (20.9%). The downturn in relative
earnings is chiefly caused by discounts and returns, which has
reduced the distribution channel profit margin by 1.2% percentage
point.
During the first half year of the financial year 2008/09 the Group
opened 5 new franchise net store openings.
* Unallocated corporate costs comprise IT, finance, HR and general
management.
Retail operation
In the first half of the financial year retail revenue came to DKK
580 million (DKK 576 million) which corresponds to a growth of 1%. As
a result of net store openings and expansions, retail revenue was
positively affected by DKK 29 million. The development in same-store
sales (organic revenue development) was in the second quarter of
2008/09 achieved by a setback of 8%. The decline in same-store sales
was combined 4% in the first half year of the financial year.
Retail profit decreased by 82% to DKK 14 million (DKK 77 million)
which equals a retail profit margin of 2.5% (13.4%). The
deterioration is mainly owing to lower sell through at full price and
higher discounts, but also impacts from new store openings.
During the first half year of 2008/09 the Group opened 31 new stores
and closed 17, primarily in China, which has resulted in a total net
store influx of 1,200 square metres. This brings the Group retail
operations to 37,600 square metres distributed between 248 locations.
Outlet operation
Outlet operation came to DKK 84 million (DKK 71 million) which
constitutes an 18% growth. Outlet profit decreased DKK 13 million,
which equals an outlet profit margin of 4.6% (24.3%). Again, the
heavy decline reflects that the economic crisis has necessitated
increased discounts.
Earnings development
Decreasing gross profit
For the first half year, gross profit came to DKK 1,211 million (DKK
1,229 million) which corresponds to a decrease of 1%.
Gross margin was 59.3% (61.0%). The 1.7% percentage point setback is
attributable to higher discounts and increased inventory write downs
relative to last year. Of these write downs, non-recurring write
downs made to Cottonfield Female constitute DKK 5 million in the
first quarter and DKK 19 million in the second quarter, in which
write downs were made to counter the increasing inventories.
Increased discounts and returns and also inventory write downs have
more than offset the effect of lower sourcing currencies, which seen
in isolation have benefited the gross margin by 1.9% percentage point
relative to last year. The effect on gross margin from shifts across
channels was neutral as compared to last year.
In order to ensure a healthy gross profit growth, a number of
activities will be carried through in 2008/08.
Rising capacity costs
Capacity costs came to DKK 1,009 million (DKK 928 million), which
translates to a 9% increase. The cost rate increased by 3.3%
percentage points to 49.4% as measured against last year. Excluding
non-recurring impacts amounting to DKK 42 million, the cost rate is,
however, increased by 1.3% percentage point to 47.4% relative to last
year.
The non-recurring impacts are partly owing to organisational
rationalisations implemented in the first quarter (DKK 18 million),
partly allowances for non-performing lease holds, write downs of
furniture and equipment in, among others, non-performing stores, and
a write down of goodwill in the second quarter of the financial year
(DKK 19 million). Additionally, a marketing inventory (DKK 5 million)
was recognised as a result of an interpretation of the international
accounting standard IAS 38 adopted.
The underlying cost increase in the first half year of the financial
year therefore constitutes DKK 39 million, and it is mainly
attributable to the effect of more retail stores (DKK 32 million). In
the second quarter, the underlying cost increase amounts to DKK 8
million. The effect of more retail stores constitute DKK 13 million
and increased allowances for bad debts amount to DKK 8 million. The
rationalisations carried out in 2008 alone therefore entail cost
savings of DKK 13 million in the second quarter.
The Executive Board expects to significantly bring down costs in the
second half year of the financial year.
Operating profit
Operating profit decreased to DKK 202 million (DKK 301 million)
representing a fall of 33%. Adjusted for the non-recurring impacts of
66 DKK million mentioned in the above, EBIT margin came to 13.1%
(14.9%).
Net financial items
Net financial items increased DKK 6 million to DKK 19 million (DKK 13
million). The increase is attributable to a higher interest rate
level of combined DKK 4 million as a result of averagely higher
utilisation of the Group's credit facilities. An averagely higher
average interest rate level increased the financial costs DKK 2
million.
In the second quarter, net financial items came to DKK 4 million (DKK
8 million). Consequently, net financial items saw a positive
development throughout the quarter. The development is due to
settlements of forward currency contracts in consequence of
unrealised sales, which resulted in a profit of DKK 7 million.
Income tax
Calculated income tax was recognised in the amount of DKK 56 million,
which corresponds to 31% of the pre-tax profit.
Net result
Net result for the first half year decreased by 39% to DKK 127
million (DKK 207 million).
Cash flows and Balance sheet
Balance sheet
Group assets decreased DKK 82 million to DKK 1,956 million as at 31
December 2008 (DKK 2,037 million). The decrease is mainly
attributable to a reduction of the Group's non-current assets.
Non-current assets decreased DKK 68 million relative last year. The
Group's deferred tax assets decreased DKK 58 million to DKK 81
million as at 31 December 2008. The development is due to the
utilisation of deferred assets in 2008/09 (DKK 27 million) and the
effect of calculated tax of unrealised profits from forward currency
contracts recognised directly over equity (DKK 37 million). Fixed
assets under construction increased DKK 30 million to DKK 50 million
(DKK 20 million). This is mainly attributable to rising inventories
for the interior to stores, showrooms and the relocation of the head
quarter of Tiger of Sweden.
Current assets decreased DKK 14 million to DKK 1,185 million (DKK
1,199 million). The decrease should be seen in relation to the
year-on-year increase of DKK 51 million in total inventory write
downs and an increase in write downs of debtors of DKK 27 million. In
consequence, the risk of further loss on these asset items is
assessed to be limited.
In addition to this, cash funds reported a decrease of DKK 120
million to DKK 77 million. Adversely, other trade receivables
increased to DKK 155 million (DKK 33 million), which chiefly reflects
that the market value of the Group's financial instruments for
currency hedging have increased.
Cash flows
Consolidated cash flows from operating activities in the first half
year of the financial year were a decrease in inflow of DKK 36
million to DKK 134 million (an inflow of DKK 170 million). The
development is primarily attributable to decreased earnings, which
more than offset the reduced accumulation of working capital as
compared to the first half year of 2007/08. Other adjustments
comprise currency adjustments to the balance sheet and the increase
of DKK 26 million owing to the considerable exchange rate
fluctuations in the first half year of 2008/09.
Gross investments in the first half year of the financial year
2008/09 came to DKK 81 million (DKK 75 million), of which the
interior design of stores and showrooms constitute DKK 66 million.
Cash flows from operating and investing activities were an inflow of
DKK 53 million (an inflow of DKK 95 million), which corresponds to a
deterioration of DKK 42 million relative to last year.
Cash flows from financing activities were an outflow of DKK 83
million (an outflow of DKK 76 million). In the first half of the
financial year repurchased shares constituted DKK 13 million and
dividend paid amounted to DKK 70 million, of which DKK 4 million were
allocated to minority interests.
The total cash flow in the first half year was an outflow of DKK 31
million (an inflow of DKK 19 million).
Net interest-bearing debt
Consolidated net interest-bearing debt came to DKK 681 million DKK
(DKK 538 million) which amounts to an increase of DKK 42 million
relative to 30 June 2008 and 143 million relative to 31 December
2007. The increase is caused by a decrease in cash funds, which is
mainly attributable to decreasing earnings owing to forced-down
margins.
Cash situation
Consolidated credit lines constitute a total of DKK 1,226 million in
non-committed withdrawal rights and DKK 168 in long-term debt against
security in the corporate head office. The utilisation of the
withdrawal rights has at no point in time exceeded 80%, including
currency hedging instruments, bank guarantees and the like.
The Executive Board has initiated a project that aims at
rationalising the working capital. This project is progressing
according to plan and funds tied up in working capital is expected to
be reduced DKK 150 million within 12 - 18 months. In conjunction with
the cost rationalisation previously outlined, a reduction of the
utilisation of credit lines is thus expected. The investment level
will be retained in order to support future revenue growth.
Based on the above together with the Group's outlook, cash generation
is expected to remain strong. Against this background the Executive
Board estimates that an extended commitment on the consolidated
credit lines is not required.
However, the future holds focus on reducing utilisation of
consolidated credit lines and consequently, a decision was made not
to pay dividends to the shareholders for the present, which is in
keeping with the previous announcement that share buyback programmes
are discontinued for the time being.
Equity
Equity is at 31 December 2008 decreased DKK 122 million to DKK 559
million. Equity ratio is at 31 December 2008 28.6% (33.4%).
At the Annual General Meeting of the Company 22 October 2008, the
proposal to pay dividends amounting to DKK 66 million was passed, and
dividends were subsequently paid.
Equity movements and the development in treasury shares are specified
on page 16.
Purchase of shares by related parties
On the 24 and 25 November 2008, the company Friheden Invest A/S,
owned by the Chairman of the Board of Directors, acquired 106,236 and
50.000 shares, respectively, at a total market value of DKK
9,374,160. The transaction was made at OMX - Nordic Exchange.
Reduction of share capital
At the Annual General Meeting of IC Companys held on 22 October 2008,
a resolution was adopted to reduce the company's share capital by DKK
9,768,250 nominal value, equivalent to the number of shares, 976,825,
that had been bought back under the share buyback programmes during
the period from 3 January to 27 July 2008.
As no objections against the capital reduction have been received
within the three-month period, the reduction has now been registered
at the Danish Commerce and Companies Agency as of 26 January 2009. A
number of shares equivalent to the reduction of capital, 976,825
shares, has concurrently been cancelled.
After the completion of the reduction, the company's share capital is
DKK 169,428,070 nominal value, consisting of 16,942,807 shares of DKK
10 nominal value each.
Shares of 49% sold to the company Designers Remix Collection A/S
IC Companys has entered into an agreement to sell 49% of its shares
in the company Designers Remix Collection A/S to the daily management
of the company, Creative Director Charlotte Eskildsen and her
partner, Managing Director Niels Eskildsen.
The sale was made to support the future brand strategy and to ensure
the long-term partnership with Charlotte and Niels Eskildsen. The
change in ownership does not carry any affect on the full year
revenue guidance to the current financial year.
A prerequisite for the transfer is approval of the transfer price by
the tax authorities.
reestimation future guidance
The outlook for 2008/09 is affected by uncertainty regarding the
economic development in Europe and implementation of the business
development and cost adjustment mentioned in the above.
For the full year 2008/09 expectations remain slightly lower revenue
as compared to the financial year 2007/08. For the full year 2008/09,
an operating profit in the region of DKK 110-160 million is expected
taking into account the combined non-recurring impacts in the region
of DKK 100-120 million (previously: significantly lower than in the
financial year 2007/08).
Investments in the region of DKK 120-140 million will be carried
through, primarily to direct sales promoting activities, including
interior design of stores and showrooms.
The execution of the actions previously mentioned concerning
rationalisation, distribution strategy and value chain is expected to
result in positive consolidated earnings in 2009/10 as well as the
investment rate is expected to be maintained.
Based on these actions, the Executive Board believes that the Group
will emerge stronger from the currently challenging market
conditions.
IC Companys A/S
Niels
Martinsen
Niels Mikkelsen
Chairman of the Board of Directors
Chief Executive Officer
Further information
Niels Mikkelsen, Chief Executive Officer
Chris Bigler, Chief Financial Officer
Tel.: + 45 3266 7017
Tel.: + 45 3266 7721
statement of the management
The Board of Directors and the Executive Board have considered and
approved the interim financial report for the period 1 July 2008 - 31
December 2008.
The interim financial report is unaudited and has been prepared in
accordance with IAS 34 "Interim Financial Reporting" as adopted by
the EU, cf. section on accounting polices and additional Danish
interim reporting requirements for listed companies.
We consider the accounting policies applied to the effect that the
interim financial report gives a true and fair view of the Group's
assets, liabilities and financial position as at 31 December 2008,
and of the results of the Group's operations and cash flows in the
period 1 July 2008 - 31 December 2008.
We further consider management's review to be a true and fair
presentation of the development in the Group's operations and
financial matters, the profit of the period and of the Group's
financial position as a whole and describes material risks and
elements of uncertainty pertaining to the Group.
Copenhagen, 22 February 2009
Executive Board:
Executive Board:
NIELS MIKKELSEN CHRIS BIGLER
ANDERS CLEEMANN
Chief Executive Officer Chief Financial Officer
Executive Brand Officer
Board of Directors:
NIELS ERIK MARTINSEN HENRIK HEIDEBY OLE
WENGEL
Chairman Deputy
Chairman Deputy Chairman
income statement
balance sheet - Assets
BALANCE sheet - equity and liabilities
movements in equity
Group cash flow statement
NOTes
1. Accounting policies
The interim financial report is prepared in accordance with IAS 34"Interim Financial Reporting" and additional Danish disclosure
requirements to the interim financial reports for listed companies.
The accounting policies applied in the interim financial report are
unchanged with respect to the Company's Annual Report for 2007/08.
For more information on the accounting policies, we refer to our
Annual Report for 2007/08. A few reclassifications are made in the
notes to the financial statements, which have had no affect on the
income statement, the balance sheet and the equity in the comparative
year.
2. seasonability
The Group's business area is influenced by seasonal fluctuations.
These fluctuations are attributable to seasonality in deliveries to
wholesale customers and a sales season of the Group's products that
varies over the year in retail and outlet operations. The Group's
wholesale peak quarters are historically first and third quarter. By
association, revenue and operating profit vary in the various
reporting periods, and interim financial reports are not necessarily
indicative of future trends. Results of the individual quarters are
therefore not reliable sources in terms of projecting the Group's
development.
3. sharebased remuneration
Stock option grants in 2008/09
The Executive stock option programme for the current Executive Board
comprised 142,302 stock options as at 30 June 2008.
The Board of Directors granted Anders Cleemann 30,000 stock options
after his appointment to the Executive Team. The stock options
granted give admittance to - in immediate continuation of the
company's release of the annual report for 2008/09, 2009/10 and
2010/11 - against payment in cash - to buy 10,000 shares annually.
By the use of the Black & Scholes model and under the assumption of
an exercise price of DKK 163 plus 5% per annum, a volatility of 25
per cent annually, an expected yield percentage of 2.8% and a
risk-free rate of return of 4.40 per cent annually, the market value
of the stock options can be assessed to DKK 0.3 million.
The Board of Directors has also granted Peter Fabrin 30,000 stock
options. The stock options granted give admittance to - in immediate
continuation of the company's release of the annual report for
2008/09, 2009/10 and 2010/11 11 - against payment in cash - to buy
10,000 shares annually.
By the use of the Black & Scholes model, and under the assumption of
an exercise price of DKK 113 plus 5% per annum, a volatility of 35
per cent annually, an expected yield percentage of 4.1% and a
risk-free rate of return of 4.0 per cent annually, the market value
of the stock options can be assessed to DKK 0.3 million.
The Executive stock option programme to the previous Executive Board
comprised as at 30 June 2008 60,000 unexercised stock options. In the
financial year 2008/09, 40,000 stock options lapsed as unexercised
stock options for one year cannot be transferred to a subsequent
year.
4. inventory
5. Trade receivables
Movements in allowance for bad debt:
6. restructuring costs
Profit for the first half year is affected by restructuring costs
recognised in the first quarter in connection with the integration
under joint management of, for one, Cottonfield and Jackpot, InWear
and Matinique and the discontinuation of Cottonfield Female.
