Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Jul 27, 2006

News Details

Corporate | 27 July 2006 07:00

Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG: LUDWIG BECK confirms forecasts: sales growth and robust increase in EBIT in the first half of 2006

Corporate news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, 27 July 2006 – The LUDWIG BECK group developed positively in the first half of 2006, continuing to grow in a market environment characterised by sideways movement. In the first six months of the financial year 2006, gross sales at group level amounted to € 44.0m, compared with € 43.7m in the previous year. This represents a growth rate of 0.6 %. Adjusted for changes in floor space, sales grew at a significantly higher rate of 3.7 %. In the same period, according to TextilWirtschaft, the industry increased its sales by 1.0 %. In the months from April to June 2006, the group posted gross sales of € 22.0m, an improvement of 0.8 % compared with the previous year’s figure (€ 21.9m). Adjusted for changes in floor space, the increase came to 3.4 %. Net gross earnings at group level increased slightly from € 17.7m to € 17.9m in the first half of 2006. The net gross earnings ratio, at 47.1 %, remained at around its previous year’s level. The cost ratio (expenditure set off against the corresponding earnings) was reduced again by 1.7 percentage points and, at 45 %, was significantly lower than its previous year’s level (46.7 %). LUDWIG BECK also posted a robust increase in its income in the first half of the year. Operating earnings (EBIT) in the first six months of 2006 amounted to € 0.8m, an increase of € 0.7m compared with the same period last year (€ 0.1m). The number of employees (excluding trainees) in accordance with § 267 Section 5 HGB (German Commercial Code), remained stable at 522 in the first half of 2006 (previous year: 522). Weighted to take account of full-time employees, staff numbers at group level decreased by 4.9% to 372 (previous year: 391). All in all, 54 trainees were on the payroll as of the reporting date June 30, 2006 (previous year: 51). Outlook In its June survey, the German market research institute GfK (Gesellschaft für Konsumforschung) reported a positive consumption climate with an upward trend. At LUDWIG BECK the assessment of the position is similar. “All in all, we can look back on a positive first half of 2006”, summarises Dieter Münch, Chief Financial Officer at LUDWIG BECK. “And we are confident that we will continue this pleasing trend as we pursue our business activities“, continues Dieter Münch. The combination of high earnings power, the organic growth of the flagship store at Marienplatz and rigorous cost savings should continue to shape the group’s business trend in the remainder of the year. The corporate strategy’s central growth pillar is its core business activities at the “Kaufhaus der Sinne” department store at Marienplatz. Here, in the future too, LUDWIG BECK will rely on its successful trading-up strategy, in other words, the enhancement of overall brand and product range quality and the redesign of the commercial premises in line with modern requirements. In addition, the sales and earnings potential from the branch concept is being optimised continuously and stringent cost management implemented. Positive effects are also expected from, in particular, the Oktoberfest period with its high customer numbers and high sales, and from the traditionally successful Christmas period. With Oliver Haller joining the Executive Board as the new head of purchasing, sales and marketing on January 1, 2007, and with a new management structure in the team involving Dieter Münch as Chief Financial Officer, LUDWIG BECK is expecting to benefit from a great deal of growth momentum. More information about Oliver Haller can be found on the corporate website at www.ludwigbeck.de. The full half-year report is being made public on a parallel basis over the Internet at www.ludwigbeck.de/Finanzpublikationen. The printed version will be available on August 2, 2006. The group’s key figures (€m) Gross sales (including VAT) 44.0 (43.7); Net gross earnings 17.9 (17.7); Earnings before interest, taxes, depreciation and amortisation (EBITDA) 2.6 (1.9); Earnings before income and taxes (EBIT) 0.8 (0.1); Investments 0.9 (1.0); Employees (number as of reporting date 30.6) 523 (522) Investor Relations contact: Buchanan Capital Group Metis-Corinna Tarta +49 8151 95966-25 m.tarta@buchanan-ag.com Ludwig Beck Accounts contact: Ludwig Beck am Rathauseck Martin Gehrke +49 89 23691-788 martin.gehrke@ludwigbeck.de (c)DGAP 27.07.2006 ————————————————————————— Language: English Issuer: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG Marienplatz 11 80327 München Deutschland Phone: +49 (0)892 36 91-0 Fax: +49 (0)892 36 91-6 00 E-mail: info@ludwigbeck.de WWW: www.ludwigbeck.de ISIN: DE0005199905 WKN: 519990 Indices: Listed: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————