Marchpole is one of those stocks which have had a really bad time. Boardroom battles, losses, price collapse, profit warnings up the ying yang.

Now all of those things seem to be sorted out, new management are getting to grips, new contracts and the price is on the up. So much so that Monday ought to see a 50/200 day MA golden cross.

DYOR of course, but I think I will be putting a few of these away at the open.

Socco

Capa, yes the end is very positive, more broker coverage will be good. Still very positive about the company here. And you are right about the last time the big seller finished selling, was good to see at the time!

Thanks for the post, very helpful.I think the article is positive.Increases in revenue and profit talk, and I think the comments below indicate that we may have some serious activity if the interims live up to or exceed expectations about.
"Yesterday, it added another 1p to 34p as traders took the view that the fall at the start of the week was a buying opportunity ahead of half-year results on November 9."
"Several other brokers were also thought to be on the verge of initiating coverage in the next few weeks."
Good stuff

I take it we are all still holding?

A bit of movement at the end of the day. Very nice !!

capa

Still holding. Up over 5% now, good way to end the day! Is this the start of the push up to the intrims....

Agreement with Daikyung Global Co. Ltd ('Daikyung')

http://tinyurl.com/5en9n

Yes still holding Capa, no intention of selling these yet. From the RNS:

"Under the terms of the agreement, which guarantees a minimum of sales of JCC
products of 25 million over the term, Daikyung will distribute through their
five existing standalone stores and will add a minimum of one further store per
annum. Distribution will also continue through seven duty free stores and will
commence in 2005 through a further two duty free stores scheduled to open next
year."

Was a nice unexpected RNS.

Glad to hear it gav.

What impresses me about this company is the constant newsflow, particularly important for a small cap imo.

This latest one refers to JCC which is their owned label and not one of their licensed ones, so more profit retained. Lovely.

capa

You're right Capa, plenty of good news flow. Also, as you point out with JCC being our own lable, we will get all the profit from the 25m Euros on this deal until 2012, about 3.57m Euros minimum. Hopefully the brand will do well in Korea and we will get more than the 25m minimum.

Also, will we get more director buying after the results, maybe. And what other little deals do the management have up their sleeves??

"Marchpole signs Korean agreement
By Joan Gray
Published: November 4 2004 02:00 | Last updated: November 4 2004 02:00

Marchpole, the designer men's wear distributor that has licensing deals with Yves Saint Laurent and Ozwald Boateng, has reached an agreement with Daikyung Global Company, a South Korean partner, to distribute and market the Jean-Charles de Castelbajac brand in the country.

The agreement guarantees a minimum of 25m (17.3m) sales of JCC products until 2012.

Daikyung - which has been Marchpole's partner since 1999 - will distribute the JCC label through its five existing stores and will add at least one further store a year. Distribution will also continue through seven duty-free stores and will commence in 2005 through a further two duty-free stores scheduled to open next year.

In a trading update before it issues interim results later this month, the group said the JCC order books for this season's collections stood at 2.3m.

The label had helped give the group an overall performance above directors' expectations, with more than 80 per cent of the collection having been delivered. The YSL and Boateng order books for this season stood at 10m compared with orders of 8.5m for the spring-summer 2004 season at the same time last year.

Greg Tufnell, Marchpole chief executive, said this latest Daikyung agreement "provides the Jean-Charles de Castelbajac business with a strong partner in the important territory of Korea".

The company's shares rose 1p to close at 36p yesterday. Joan Gray"http://news.ft.com/cms/s/e1d93162-2e07-11d9-a86b-00000e2511c8.html

Is there anyone else worried about tomorrows results? The recent drifting in the price does not look good . Some information usually escapes and you get some indication of performance.It gives one an uneasy feeling

No probs or concerns.Marchpole wonderful long term investment.Hold.Money freed and plan to buy loads more if opens lower tomorrow.imho.

Marchpole Holdings PLC
09 November 2004


9 November 2004

Marchpole Holdings plc

'Marchpole shows strong growth'



Marchpole Holdings plc, which designs, produces and sells high quality clothing
and accessories for six world class brands (Yves Saint Laurent, Boateng,
Jean-Charles de Castelbajac ('JCC') and Jean-Charles de Castelbajac / Rossignol,
Emanuel Ungaro and Ungaro) announces its results for the six months ended 2
October 2004.



Highlights


Turnover up 97% to 15.7m (2003: 8.0m)


Operating profit up 194% to 2.6m (2003: 0.9m)


Profit before tax up 216% to 2.5m (2003: 0.8m)


EPS up 180% to 1.4p (2003: 0.5p)


Interim dividend of 0.25 pence (2003: nil) declared to be paid to
shareholders on the register at 31 December 2004


YSL and Boateng combined Spring Summer 2005 order books up 11% to
11.0m (9.9m at same time last year)


JCC Spring Summer 2005 sales order book of 2.5m


25m JCC seven year distribution agreement signed with Korean partner,
Daikyung, until 2012


Worldwide (excluding USA) licence agreement signed with Emanuel Ungaro
strengthens the portfolio and brings two well-defined collections per season
under the Emanuel Ungaro label and the Ungaro label





Commenting Greg Tufnell, Chief Executive, said:



'This strong set of half year results; the successful launch and integration of
Jean Charles de Castelbajac and the opening of the flagship store in Paris and
our new new licence agreement with Emanuel Ungaro show that Marchpole is
succeeding in its strategy of developing our current brands while extending our
portfolio through acquisitions and licensing agreements. We are very pleased
with Marchpole's performance and expect this continuing success to be reflected
in the full year results.'




For further information please contact:


Marchpole: 020 7908 7777
Greg Tufnell, CEO
Justin Hampshire, Finance Director

Shore Capital: 020 74084090
Alex Borrelli / Simon Edwards

Buchanan: 020 7466 5000
Tim Thompson / Nicola Cronk





Chairman's Statement



I am delighted to report another strong set of results for Marchpole Holdings
plc for the first half of the year. The results demonstrate the group's
continued progress with its dual strategy of growing its existing brands and
developing new opportunities and licences.



Results



The group has produced a profit before tax for the half year of 2,539,000, an
increase of 216% on the previous year (2003: 804,000). This performance was
ahead of our expectations and has been driven by strong sales of 15,668,000
(2003: 7,963,000). Earnings per share in the period were 1.4 pence per share;
an increase of 180% on the prior year (2003: 0.5 pence per share).



Overall sales for the group are up by 97%. YSL has increased like for like
sales by 61% and continues to benefit from improvements to the product, sourcing
and logistics management over the past year. The development of the Boateng
brand is progressing successfully; sales have increased by 101% compared to the
first season sales during the previous half year.



We are pleased with the performance of the Jean Charles de Castelbajac brand and
the speed with which it has been successfully integrated with the rest of the
group. Castelbajac sales and royalty income of over 2.7m have met our
expectation of first season's trading and we anticipate continued future growth
in sales and royalty income.



Following the acquisition of JCC and our new Ungaro licence, we believe the
group's cost structure is now able to support considerable increases in sales
without significant further investment in fixed costs. This provides us with a
strong platform to support our brands and gives the potential for margin
improvements as sales grow.



Outlook



The Autumn Winter 2004 order book currently stands at over 16.6 million of
which 86% has already been delivered to customers to date. Excluding JCC there
is a like for like improvement in the Autumn Winter 2004 order books of 28% for
the YSL and Boateng brands compared to this time last year. The combined Spring
Summer 2005 order books are currently over 13.5 million. This represents a
like for like growth of 11% over the forward orders at the same time last year
for combined YSL and Boateng.



In September we signed an eight year worldwide (excluding America) menswear
licence agreement with Emanuel Ungaro. Under the agreement Marchpole will
produce two collections per season; formal wear under the Emanuel Ungaro label
and a more casual collection under the Ungaro label. We were delighted to
welcome Jose Levy, the well known fashion designer, to the company in September
as the Head of Design for Emanuel Ungaro. The Autumn Winter 2005 collection is
currently being finalised, and will be launched to customers in January 2005.
We have already met with a number of key accounts to introduce them to the new
brand and collection and have received a very favourable response.



With these results, including the first season of JCC, and the new licence with
Emanuel Ungaro the group is fulfilling its strategy of developing new brands and
expanding the business; a strategy which it intends to continue. The board is
also currently in discussion with third parties to advance new opportunities
both in terms of licensing and brand acquisitions.



Dividend

The final dividend for the year ended 31 March 2004 was approved at our AGM on 8
September 2004 and was subsequently paid to shareholders. I am also pleased to
announce that the Board have agreed to pay an interim dividend of 0.25 pence per
share to shareholders on the register on 31 December 2004 payable in January
2005.



Prospects



We are very pleased with the progress of the group and are confident that the
strength of this first half performance together with our current order books
will result in a good performance for the year as a whole.



On behalf of the Board and shareholders I would like to thank the staff of
Marchpole, our suppliers and customers for their continued support.



Christopher Phillips
Chairman



Group profit and loss account
For the 6 months ended 02 October 2004



6 months to 2 6 months to 26 Year ended 31
October 2004 September 2003 March 2004
(unaudited) (unaudited) (audited)

Notes '000 '000 '000
Turnover 2 15,668 7,963 19,986
Cost of sales (7,767) (4,606) (10,968)
Gross profit 7,901 3,357 9,018
Distribution costs (1,728) (806) (2,124)
Administrative expenses (3,528) (1,652) (4,112)
Operating profit 2,645 899 2,782
Net interest payable (106) (95) (127)
Profit on ordinary activities 2 2,539 804 2,655
before taxation
Taxation on profit on ordinary 3 (691) (160) (925)
activities
Profit on ordinary activities after 1,848 644 1,730
taxation
Dividends proposed (331) - (331)
Retained earnings 1,517 644 1,399
Earnings per share basic and 5 1.4p 0.5p 1.4p
diluted




Group balance sheet
At 02 October 2004
As at As at As at
02-Oct-04 26-Sep-03 31-Mar-04
'000 '000 '000
(Unaudited) (Unaudited) (Audited)

Fixed assets
Intangible assets 3,548 - 3,625
Tangible assets 482 94 423
4,030 94 4,048
Current assets
Stock 2,194 1,465 1,986
Debtors 8,707 4,210 4,740
Cash at bank and in hand 183 614 2,102
11,084 6,289 8,828
Creditors: amounts falling due within one year (8,703) (3,710) (7,680)
Net current assets 2,381 2,579 1,148
Total assets less current liabilities 6,411 2,673 5,196
Creditors: amounts falling due after more than one year (333) (92) (588)
Net assets 6,078 2,581 4,608


Capital and reserves
Share capital 1,325 23,901 1,325
Share premium 2,666 15,626 2,666
Merger reserve (1,818) (38,584) (1,818)
Profit and loss account 3,905 1,638 2,435
Total shareholders' funds - equity interests 6,078 2,581 4,608





Group statement of cash flows
For the 6 months ended 02 October 2004


6 months to 6 months to Year to
2 October 2004 26 September 2003 31 March 2004
Notes '000 '000 '000
(Unaudited) (Unaudited) (Audited)

Net cash (outflow)/inflow from operating 6 (1,793) 775 2,979
activities

Returns on investments and servicing of finance
Interest received 3 - 7
Interest and facility fees paid (127) (95) (133)
Interest element of hire purchase and finance
lease rental (8) - (1)
(132) (95) (127)
Taxation (786) - (11)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (109) - (156)
(109) - (156)
Acquisitions
Costs of acquisitions - - (375)
Net cash acquired with subsidiary - - 52
- - (323)
Dividend (331) - -

Cash (outflow)/inflow before financing (3,151) 680 2,362
Financing
Capital element of hire purchase and finance
lease rentals (13) (33) (15)
New loans 1,031 - 93
Repayment of loans (641) (154) (459)
377 (187) (381)
(Decrease)/increase in cash in the period 7 (2,774) 493 1,981




Notes to the interim statement
At 02 October 2004



1. Basis of preparation

The interim statement has been prepared on the basis of the accounting policies
set out in the Group's statutory accounts for the year ended 31 March 2004



The financial information presented in this interim statement does not
constitute full financial information within the meaning of Section 240 of the
Companies Act 1985. The Group profit and loss account for the year ended 31
March 2004 and the Group balance sheet at that date have been extracted from the
statutory accounts for the period, which received an unqualified audit report,
and have been delivered to the Registrar of Companies.



2. Turnover and profit on ordinary activities before taxation

Turnover and profit on ordinary activities before taxation are wholly
attributable to the Group's principal activity.



3. Taxation

A provision for corporation tax has been made using the rate of 30% on profit
before taxation. The taxation for the period to 02 October 2004 also reflects
any under or over provisions for prior periods.



4. Interim dividend

An interim dividend of 0.25 pence per share has been declared in respect of the
period ended 2 October 2004 to shareholders on the register on 31 December 2004.
(No dividend was paid in the period ended 26 September 2003).



5. Earnings per share

Earnings per share for the period has been calculated based on the profit
attributable to shareholders of 1,848,000 (2003 - 644,000) and the weighted
average number of ordinary shares in issue throughout the period of 132,454,569
(2003 - 120,454,569).



6. Net cash (outflow)/inflow from operating activities


6 months to 6 months to Year to
02-Oct-04 26-Sep-03 31-Mar-04
'000 '000 '000
(Unaudited) (Unaudited) (Audited)
Cash inflow from operating activities
Operating profit 2,645 899 2,782
Depreciation 85 36 99
Amortisation 88 - 29
Foreign exchange movement (60) - (5)
Increase in stocks (208) (341) (845)
(Increase)/decrease in debtors (3,967) 89 (44)
(Decrease)/increase in creditors (376) 92 963
Net cash (outflow)/inflow from operating
activities (1,793) 775 2,979






7. Reconciliation of net funds/(debt)
6 months to 6 months to Year to
02-Oct-04 26-Sep-03 31-Mar-04
'000 '000 '000
(Unaudited) (Unaudited) (Audited)


Net funds/(debt) at beginning of the period 980 (554) (554)
(Decrease)/increase in cash (2,774) 493 1,981
Loans acquired with subsidiary - - (845)
Capital element of hire purchase and finance 13 - 15
lease rentals
Currency translation - - 17
New short term loans (1,031) (33) (93)
Loan repayments 641 154 459
Net (debt)/funds at end of the period (2,171) 60 980

Cash at bank and in hand 183 614 2,102
Bank overdraft (854) - -
Hire purchase and finance leases (34) - (78)
Loans (1,466) (554) (1,044)
(2,171) 60 980





Copies of the interim statement will be mailed to the shareholders during the
week commencing 8 November 2004, and can be obtained from the Company's
registered office, 19-20 Berners Street, London W1T 3LW.








This information is provided by RNS
The company news service from the London Stock Exchange

Looks good to me!

Cracking results! EPS up 180% to 1.4p and they will be paying another divi of 0.25p. Looks good to me as well!

Fabulous.Simply mouth watering.What a company.Buy and hold.40p here we come.

Couldn't agree more.

LONDON (AFX) - Marchpole Holdings PLC, which designs, produces and sells
clothing and accessories for six world class brands including Yves Saint
Laurent, Boateng and Jean-Charles de Castelbajac, said its continuing success
will be reflected in results for the full year.
The comments came alongside strong figures for the six months ended Oct 2
2004 which showed profit before tax up 216 pct to 2.5 mln stg from 0.8 mln on
turnover up 97 pct to 15.7 mln stg from 8.0 mln.
Operating profit was up 194 pct to 2.6 mln stg.
The board also declared an interim dividend of 0.25 pence, compared with nil
a year earlier.
newsdesk@afxnews.com
slm/

Well, we knew they would be good and an interim dividend to boot.

1.4p eps should equate to at least 3.5p eps for the full year. With the growth being shown a P/E of say 17 is hardly demanding which equates to a conservative share price of about 60p.

In my opinion these are about 40% undervalued at the moment.

capa

Capa,

Agree with what you say. I take it that no one is selling then! I wonder if we will see more director buying over the next few days? The divi payment was a nice surprise, wasn't really expecting that.

LONDON (AFX) - Marchpole Holdings PLC, which designs, produces and sells
clothing and accessories for six world class brands including Yves Saint
Laurent, Boateng and Jean-Charles de Castelbajac, said its continuing success
will be reflected in results for the full year.
The comments came alongside strong figures for the six months ended Oct 2
2004 which showed profit before tax up 216 pct to 2.5 mln stg from 0.8 mln on
turnover up 97 pct to 15.7 mln stg from 8.0 mln.
Operating profit was up 194 pct to 2.6 mln stg.
The board also declared an interim dividend of 0.25 pence, compared with nil
a year earlier.
YSL and Boateng combined Spring Summer 2005 order books are up 11 pct to 11.0
mln stg from 9.9 mln at same time last year. The JCC Spring Summer 2005 sales
order book is at 2.5 mln stg.
Chief executive Greg Tufnell said the strong set of half year results; the
successful launch and integration of Jean Charles de Castelbajac and the opening
of the flagship store in Paris and the new licence agreement with Emanuel Ungaro
show that Marchpole is succeeding in its strategy of developing current brands
while extending the portfolio through acquisitions and licensing agreements.
The group's overall Autumn Winter 2004 order book currently stands at over
16.6 mln stg of which 86 pct has already been delivered to customers to date.
Excluding JCC there is a like for like improvement in the Autumn Winter 2004
order books of 28 pct for the YSL and Boateng brands compared to this time last
year.
With these results, including the first season of JCC, and the new licence
with Emanuel Ungaro in September the group is fulfilling its strategy of
developing new brands and expanding the business -- a strategy which it intends
to continue. The board said it is also currently in discussion with third
parties to advance new opportunities both in terms of licensing and brand
acquisitions.
newsdesk@afxnews.com
slm/

Gav - selling ? nah !

Lovely sleep easy stock to have as a backbone to my portfolio, hold and occasionally add on any short term dips from now on is my plan.

regards

capa

Capa, you took the words right out of my mouth! Sell, don't think so! Shows that buying the dips on the way up has been good for us.

This part form the last AFX release:

"The board said it is also currently in discussion with third
parties to advance new opportunities both in terms of licensing and brand
acquisitions."

I would assume this to be the Feraud deal? Unless they have something else up their sleeves.All bodes well for us!

Gav

Looking at this again, it appears that the 1.4p was achieved without any help from JCC. Indeed JCC may have had a slight negative effect, with the winter season ahead this is when JCC will come into its own and contribute towards the second half, in which case my initial thoughts of 3.5p for the year could be hopelessly conservative.

capa