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MOSS BROS GROUP PLC
CHAIRMAN’S STATEMENT
The year to the end of January reflected continuing progress in building profitability,although in a
more demanding market than in the previous year and after having to overcome disproportionate
increases in property costs.
Sales of £133m were achieved with a comparable sales growth of 2.5%.The total sales figure also
reflected the opening of ten new Moss stores during the year.Profit before tax at £6.2m was after
£0.5m of one-off restructuring costs.Excluding these the underlying profit before tax of £6.7m
was up 16%on the comparable £5.7m achieved in the previous year.Earnings per share were
4.62 pence,an increase of 16%.
The closing cash balance was £17.7m compared with £16.8m at the previous year-end.Capital
expenditure for the year amounted to £5.2m.
Current trading has continued broadly in line with last year's trends,with sales for the first ten
weeks of the year up 2.0%(which is estimated to be approximately 2.5%adjusting for the change
in the timing of Easter).The rate of profit growth in the new year will continue to be affected by the
need to offset excessive cost inflation in utility costs,property taxes and non-performance related
labour costs.The management recognises that it will need to continue to outperform to overcome
these issues.
Encouragingly,since the start of the new year five new Moss stores have been opened and a
new Hugo Boss store has been opened at Trafford Park.
The Board is proposing a final dividend of 1.30 pence,giving total dividends for the year of
1.80 pence an increase of 20%.
The accounts this year have been produced in accordance with International Financial Reporting
Standards.This has involved a good deal of extra work for the finance team with,in my opinion
no benefit to the Company and its shareholders.
In November 2005,Roddy Murray resigned as our Finance Director.He joined the Company in
2002 and played a major part in the turnaround of the business from a difficult period;he has
the good wishes of the Company.We hope to make an announcement about his successor in
the near future.
Andrew Allner also left the Board in June 2005,having chaired the Audit Committee and been
an independent Non-Executive Director.Andrew agreed to join in 2001 before the extent of our
then difficulties was realised.However,he stuck with us in spite of other demands on his time
and only left the Board once the Company's position was secure.
We have been looking for a suitable replacement as an independent Non-Executive Director who
could add value to the Company.There is a shortage of suitable candidates for this role which has
delayed the appointment but we are continuing to work to complete this objective.Technically
this has temporarily left the Company with one fewer independent Non-Executive Director than we should have under the Combined Code.However,I am sure we are correct not to make an
appointment until we have found somebody who can add value to what is already a large Board.
The progress being made in the business is set out in the reviews on pages 6 to 22.As you will
see,the Company is continuing to realise the potential of its brands and assets.It is also starting
the work of developing and growing the business from the secure and efficient base which has
been created.This development covers improved product,new product brands,investment in
existing stores,the expansion of the Moss chain and investment in people and systems.
The Company has a youthful and talented management team – which gets results through ability
and hard work.The results they are achieving are a credit to them.
I would like to thank all those who have worked to enable the progress made to date to be achieved
in what is a highly competitive retail environment.
Keith Hamill
Chairman
Download the Annual Report & Accounts
2005/06.
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