Shares in Ted Baker rose 16% today, after the fashion retailer reported profits in line with forecasts and an encouraging start to the new year.
The shares, which have underperformed the general retailers’ sector by more than 50% over the past 12 months, were up 35.5p or 15.9% at 259.5p this morning, valuing the group at around £106m.
The group said total retail sales in the first nine weeks of the new financial year were 42.9% ahead of the same period the year before, in line with its expectations.
Pre-tax profits for the year to 27 January were £8.2m up 3.7% from last year’s £7.9m despite the retailer experiencing poor trading over Christmas. The group’s performance was also affected by the cost of moving to new headquarters.
“We are confident that the strength of our brand and the new infrastructure will ensure continued growth in the future,” chief executive Ray Kelvin said.
Sales grew by 28.1% to £47m in the last financial year.
Ted Baker proposed a final dividend of 4.6p a share, making a total payout of 7p, up 11.1%
EGi News 05/04/01
