Laura Ashley : 17th August 2016 - Chairman's Statement June 2016

LAURA ASHLEY HOLDINGS plc

Laura Ashley Holdings plc announces its full final results for the 74 weeks to 30 June 2016.

• Profit before tax and exceptional items of £25.8m (2015: £22.9m - 53 week period).

• Profit before tax and after exceptional items of £23.9m (2015: £23.5m - 53 week period).

• Total like-for-like* retail sales up 4.1% with like-for-like* growth across all categories.

• Total Group sales of £400.9m (2015: £303.6m - 53 week period).

• Online revenue of £73.5m. (2015: £48.5m - 53 week period). Like-for-like* up 15.7%.

• Hotel revenue of £3.5m (2015: £1.9m - 53 week period).

• £5.0m net cash balance.

• Final dividend of 0.5 pence per share taking total dividends for the period to 2.5p.

*All references to "like-for-like" refer to a full 74 weeks comparison.

Commenting on the results, Tan Sri Dr Khoo Kay Peng, Chairman, said:

"I am pleased with the overall performance of the business. Continued like-for-like growth in the UK market, boosted by the good performance of our digital channel, is encouraging.

I am happy that the Company has signed a new licence partner for Australia and am confident that the business opportunity there will be optimised. Such partnership opportunities, in new territories, will continue to be explored and developed.

I am grateful for the enduring loyalty of our many worldwide customers, whose love of the Brand and its rich heritage, has helped to grow and strengthen the business.

The Company will continue to focus on enhancing the design and quality of its product ranges upon whose provenance the Brand has been built. In a time of uncertainty for retail and the global economy at large, I am optimistic and confident that Laura Ashley will remain a business with solid foundations to withstand challenges as they arise."

For the 74 weeks to 30 June 2016, total Group sales were £400.9m compared with the 53 week period last year (2015: £303.6m). Like-for-like* sales grew by 4.1% over the same period. e- Commerce sales grew to £73.5m (2015: £48.5m). Like-for-like* e-Commerce sales grew by 15.7%.

Group profit before taxation, excluding exceptional items, was £25.8m (2015: £22.9m). During the period, the Group incurred exceptional charges of £1.9m, which included a charge of £1.3m following a licence partner in Australia being placed into administration. Group profit before taxation, including exceptional items, was £23.9m (2015: £23.5m).

Operating expenses of £143.0m were recorded (2015: £105.3m - 53 week period).

As at 30 June 2016, bank borrowings stood at £23.0m and the net cash balance was £5.0m. Inventory of £51.9m was in line with requirements. The bank borrowings reflect the balance of the loan due in respect of the property in Singapore which was acquired during the period.

The Board has recommended the payment of a final dividend of 0.5 pence per share. This will take the total dividends paid for the 74 week period to 2.5p (period ended January 2015, 2.0p for a 53 week period). The dividend will be proposed at the forthcoming AGM and, subject to shareholders' approval, will be paid in due course.

As at 30 June 2016, the property portfolio in the UK comprised 192 stores (January 2015: 205). The portfolio is as follows: 117 Mixed Product stores, 48 Home stores, 25 concession stores, 1 Gifts & Accessories store and 1 Clearance outlet. During the reporting period, five stores were opened and eighteen were closed, reducing total selling space by 4.2% to 729,000 square feet.

Total UK retail sales of £363.2m were recorded during the period (2015: £267.4m - 53 weeks). Our UK retail business performed in line with the overall retail market and ahead of market in some product categories.

Total e-Commerce sales of £73.5m were recorded during the period (2015: £48.5m - 53 weeks). On a like-for-like* basis, sales grew by 15.7%.

The UK business is split into four main categories. For the 74 weeks ended 30 June 2016, the relative split of UK sales was as follows: Home Accessories 30%, Furniture 30%, Decorating 23% and Fashion 17%. All categories recorded like-for-like* growth.

Furniture

The Furniture product category includes upholstered and cabinet furniture, beds and mirrors.

Furniture sales for the 74 weeks to 30 June 2016 increased by 2.1% over the same period last year with like-for-like* sales up 4.3%. The depth of choice and diversity of style have enabled the furniture business to flourish. New finishes, textures and materials have complemented what was already a comprehensive range. The availability of financing products has also helped this category to grow.

Home Accessories

The Home Accessories product category includes lighting, gifts, bed linen, rugs, throws, cushions and children's accessories.

Home Accessories sales for the 74 weeks to 30 June 2016 increased by 3.4% over the same period last year with like-for-like* performance up by 6.8%. The continued growth of this category is based on range additions, new and innovative product categories such as cookware and kitchen products as well as an enhanced seasonal offering. As always, these products are designed to work with our decorating themes.

Decorating

This category includes fabric, curtains, wallpaper, paint and decorative accessories.

Decorating sales for the 74 weeks to 30 June 2016 fell by 1.2% with like-for-like* sales up 1.6%. This category draws on a combination of brand heritage and contemporary classic design to give a rich and varied choice to our customers. We are extremely proud that our wide variety of made- to-measure curtains, wallpapers and growing paint ranges are all manufactured by ourselves in the UK.

Fashion

This category includes adult fashion, fashion accessories and perfumery.

Fashion sales for the 74 weeks to 30 June 2016 decreased by 3.9% over the same period last year with like-for-like* sales up 2.2%.

We have started to partner with selected British retailers to give broader exposure to our fashion ranges.

The Laura Ashley hotel recorded sales of £3.5m (2015: £1.9m) over the period, reflecting the continued growth trend of recent years.