Umbro looks to China for further growth

Football kit maker Umbro is aiming for more growth in the fast-growing Chinese market this year after it said today that tough UK trading conditions would continue.

The firm said sales in China increased 48% to £30.4m (€44.7m) last year and Umbro has upped its stake in its Chinese licensee, Team and Sports, to 40%.

Chief executive Peter McGuigan said: “China has moved to the position of second largest Umbro licensee territory.

“The development of the country is well documented and Umbro is working with its licensee to continue to exploit the enormous potential of the Chinese market.”

While last year’s World Cup helped underlying pre-tax profits soar more than 15% to £26.6m (€39.1m) on wholesale sales 16% higher at £409.4m (€602.1m), Umbro said 2006 was highly competitive in the UK with pressure on margins throughout most of the year.