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Presentation to Annual General Meeting 29 September 2004.

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Presentation on theme: "Presentation to Annual General Meeting 29 September 2004."— Presentation transcript:

1 Presentation to Annual General Meeting 29 September 2004

2 Review of Financial Year ended 30 April 2004 Platform for Growth Average Sales per Retailing Distributor per period (ASR) increased 19.6% to £610 Improved Operating Margin New distribution centre providing capacity for expansion New higher value brands introduced

3 Financial Year ended 30 April 2004 Dividend Resumed & Net Debt Down Turnover on continuing operations £158.9m (2003: £164.1m) Normalised operating profit unchanged at £8.5m Operating margin increased to 5% (2003: 4.7%) Normalised basic EPS increased to 12.8p (2003: 12.7p) Net debt reduced by 30% to £11.2m (2003: £16.0m) Final dividend 2p (2003: nil), total for the year 3p (2003: nil)

4 Financial Year ended 30 April 2004 Improved Performance at Kleeneze UK Average active distributors 14,900 16, % ASR 1 £610 £ % 1 ASR represents the average sales per retailing distributor per 4 week period

5 Financial Year ended 30 April 2004 Improved Margin at Farepak

6 Kleeneze UK Improve retention of distributors Focus on catalogue range & performance European expansion Operational efficiencies from new site Capacity for growth Farepak Focus on reduction of fixed overheads Group Reviewing acquisition opportunities to accelerate growth Summary of Financial Year ended 30 April 2004 Well Positioned for Future Growth

7 Trading Update Further Growth Opportunities Introduced Sales at Kleeneze UK in first 4 months ahead of last year Further increase in ASR - compounding 20% increase in previous year Acquisition of Cabouchon reflecting move to higher value, branded goods Commencement of trading of Dutch Operation Farepak trading in line with focus on cost base and vouchers Announcement of expansion into Television Shopping

8 Dutch Operation Launched in September Over 1,000 distributors signed up – above initial target Over 500,000 catalogues to be distributed by Christmas Network response positive First conference in Amsterdam in October – 1,000 attendees expected

9 Expansion into TV Shopping The Investment Investment of some £4 million over next 2 years Joint venture with JML Re-branded as eezee TV Currently broadcasting pre-recorded on Channel 664 To be relaunched as live channel in March 2005

10 Expansion into TV Shopping The Growth Opportunity TV shopping market same demographic characteristics as the Group Effective Recruitment and Retention tool for Kleeneze Significant cross selling opportunities for the Group TV shopping market worth over £500 million in 2004 Market forecast to grow to over £750 million by 2008

11 Strong Growth in TV Shopping Source: Mintel - figures exclude revenues from travel channels

12 TV shopping has benefited from the uptake of digital TV Freeview has been a major influence in growth FreeSat being launched in October Over 15 million homes forecast to have digital TV by the end of 2004 Analogue switch-off will further drive penetration levels Switch-off date has been set by the Government by 2012 Expansion into TV Shopping Digital TV driving the Growth

13 Group Strategy Kleeneze UK Increase product range Geographic expansion Increase channels to market Farepak Re-stimulate demand for shopping vouchers Reduction of fixed overheads Group To become the leading Home Shopping specialist

14 Presentation to Annual General Meeting 29 September 2004


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