24 Jun Pentland Group’s FY Revenues Climb 10 Percent
Pentland Group plc reported revenues rose 10 percent in its year ended Dec. 31, fueled by record revenues from Speedo, Lacoste Chaussures and Ted Baker footwear. The gains were also helped by a robust performance by JD Sports Fashion
Pentland Group own Berghaus, Canterbury of New Zealand, Speedo, Boxfresh, Brasher, Ellesse, KangaROOS, Mitre, Prostar and Red or Dead. It’s also the global licensee for Lacoste Chaussures and Ted Baker footwear, the UK licensee for Kickers, and are shareholders in Butterfly Twists and Hunter Boot. The Group is also the majority owner of JD Sports Fashion plc, which operates over 800 sports, fashion and outdoor stores across Europe.
The full year results reflect the quality and continued international development of Pentland’s portfolio of brands in sports, outdoor and fashion, and another strong performance from the core fascias of JD Sports Fashion plc, in which Pentland Group is the majority shareholder.
Highlights
- Total revenue up 10 percent to £1.9 billion ($3.24 bn); organic growth (excluding contribution from acquisitions during the year) of 8 percent;
- Revenue from Pentland Brands and other non-retail businesses up 11 percent to £590 million ($1.0 bn), fueled by record revenues from Speedo, Lacoste Chaussures and Ted Baker footwear;
- Another robust performance from the Retail Division, comprising JD Sports Fashion, with revenue up 9 percent to £1.3 billion ($2.21 bn), mainly driven by core Sports fascias (JD and Size?);
- Group operating profit* up 39 percent to £124 million ($211.1 mm) in both Pentland Brands and Retail Division;
- Group profit before tax up 36 percent to £85 million ($144.7 mm);
- Net cash at year end of £119 million ($202.6 mm) (2012: £97 million);
- Net assets increased by 8 percent to £597 million ($1.02 bn).
- In June, Pentland Group awarded ‘Top European Family Business of the Year’ at the European Families in Business Awards 2014.
(* before tax, amortisation of intangibles and exceptional items)
Business review
The activities of Pentland Group primarily comprise Pentland Brands and the Retail Division.
Pentland Brands is building a diversified portfolio of world class brands covering sports, outdoor and fashion. It manages owned brands such as Berghaus, Canterbury, Speedo, Boxfresh, Ellesse, KangaROOS, Mitre and Red or Dead. It is also the global licensee for Lacoste Chaussures and Ted Baker footwear and Kickers in the UK.
The Retail Division represents the activities of JD Sports Fashion plc, the leading retailer and distributor of branded sportswear, fashionwear and outdoor clothing and equipment, in which Pentland Group holds a 57 percent share.
Pentland Group also holds investments in businesses across a number of different industries.
Pentland Brands
Pentland Brands continues to perform strongly with revenue up 11 percent. The continued development of a global presence has helped achieve record performances for a number of our brands.
Highlights include:
- In May, the Great Place to Work Institute naming Pentland Brands one of the top 10 Best Workplaces in the UK and one of the top 20 Best Workplaces in Europe.
- Speedo delivering a record year, with considerable growth in the UK and China in particular and with Speedo’s Sculpture range achieving 39 percent growth. Launching its highly successful ‘Get Speedo Fit’ global marketing campaign – championing the brand’s role in the fitness category and inspiring people to swim. Speedo winning ‘Fan Brand of the Year’ at the 2014 Sports Technology Awards, voted by fans on Twitter.
- Lacoste Chaussures having another record year driven by global growth, notably in Brazil, China, Russia and Turkey.
- Canterbury being fully integrated into the Pentland Brands portfolio, strengthening Pentland Brands position in Australia and New Zealand, where the businesses are now 100 percent owned. Canterbury further building its on-field presence with a sponsorship agreement with the Ireland RFU. Teams wearing Canterbury at the Rugby World Cup in 2015 will include England, Ireland, Japan, Russia, Spain and USA.
- Berghaus continuing to expand in Europe and Japan and launching in the USA.
- Ted Baker footwear delivering double digit growth with strong performance in the UK and internationally and winning ‘UK Men’s Footwear Brand of the Year’ in the Drapers Awards 2014.
- Kickers winning ‘UK Young Fashion Footwear Brand of the Year’ in the Drapers Awards 2014.
Retail Division
JD Sports Fashion produced another good performance in a challenging retail environment. Its Sports facia (JD and Size?) reported record revenue growth in its core UK and Irish market, and this was further supported by investment in overseas retail.
The Outdoor group consisting of Blacks and Millets has undergone significant change under JD’s ownership which has created a strong platform for growth and development in 2014.
In 2013, JD continued to invest through the acquisition of various brands/businesses such as Cloggs, Ark Fashion, Activeinstinct and Tiso.
Further information on JD Sports Fashion, and its results for the year ended 1 February 2014, is available at www.jdplc.com.