Jacques Vert suffers restructuring costs

Clothing retailer Jacques Vert today said annual losses widened after restructuring linked to a company-transforming acquisition hit its results.

But the London-based firm said savings from the acquisition of manufacturer and retailer William Baird in December 2002 were at the higher end of expectations.

Trading since the end of the financial year was “satisfactory” despite difficult conditions in the womenswear sector.

Although pre-tax losses widened from £1.5m (€2.2m) to £5.2m (€7.7m), this was after exceptional items of £6m (€8.9m) relating to the restructuring of its European wholesale business.

After accounting for this, group operating profits increased by more than 250% to £3.1m (€4.6m) in the year to April 24.

Jacques Vert was transformed from a single womenswear retail brand into a multiple-branded retailer when it acquired William Baird.

The acquisition also added a wholesale operation comprising a menswear brand, Melka, and an outdoor clothing brand, Tenson.

The group sells its clothes through around 170 shops bearing the Jacques Vert name and also has concessions in a number of department stores, including House of Fraser and Debenhams.

Jacques Vert said today the integration of the group was “largely complete” and led to annual savings of more than £5m (€7.4m).

Within the retail division operating profits before exceptionals and interest nearly tripled when compared with the pro forma figure for last year.

This was partly due to progress made on the margins of the acquired brands, which increased by 2%.

However, total sales were £123.2m (€183.3m) compared with a pro forma figure of £135.4m (€201.5m) for last year. This decline represented a 9.4% fall in like-for-like sales at the Baird brands and the rationalisation of a number of these outlets.

During the year 81 new outlets were opened and 86 were closed, leaving the group operating from a total of 941 sites.

In the first 10 weeks of the new financial year group like-for-like sales increased by 1.9%.

Chairman Derek Lovelock said: “This has been a very creditable performance in what has been a difficult trading environment.

“Following the integration of Baird within Jacques Vert, the enlarged group is well positioned to move forward.”

All results for last year were calculated on a pro forma basis in order to give a meaningful comparison.