Corporate | 4 April 2002 07:59

Ludwig Beck am Rathauseck english

Presentation of the Annual Accounts and Consolidated Statement for 2001 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Presentation of the Annual Accounts and Consolidated Statement for 2001 LUDWIG BECK AG: High level of earnings maintained with EBIT margin of 6.1 per cent despite slight drop in sales, dividend remains at EUR 0.87. Munich, 4 April 2002. The LUDWIG BECK Group (WKN 519 990) did not remain completely unscathed by the downward economic trend that prevailed in the fiscal year 2001, and achieved a gross turnover of EUR 98.0 (previous year: 100.3) million. Thanks to a tight cost management regime, however, the Group was able to maintain its high level of earnings as reflected in its operating result (EBIT) of EUR 5.4 (6.5) million. LUDWIG BECK thus remains one of the most enterprises in Germany’s retail sector. The fiscal year 2001 was marked by a permanently worsening economic situation. Though forecasts at the beginning of the twelve months anticipated growth of 2.75 per cent, Germany’s gross domestic product (GDP) just about reached a figure of 0.6 (3.0) per cent in real terms by year-end. This development had a particularly strong impact on the retail sector in view of the fact that the consumers became increasingly restrained in terms of their spending behaviour throughout the year. In the second half-year, following the warmest-ever October, the textile trade in particular experienced a slump of hitherto unknown dimensions. Besides ludwigbeck-online GmbH, LUDWIG BECK AG now also includes the newly established Ludwig Beck Vertriebs GmbH and Ludwig Beck Beteiligungs GmbH. ludwigbeck-online GmbH has comprehensively restructured its website, as a result of which the old software system has now been fully written down. The newly installed system will reduce the relevant day-to-day running costs significantly, so that it will be possible to reach the break-even point by as early as 2005. As of 2002, Ludwig Beck Vertriebs GmbH will be handling business activities on the franchise systems front and, within the framework of strategic partnerships, will be operating self-owned mono-label shops with such brands as S.Oliver, Esprit, Gerry Weber and Tommy Hilfiger. Ludwig Beck Beteiligungs GmbH has taken a 50.1 per cent holding in Feldmeier GmbH & Co Betriebs KG, owner of LUDWIG BECK’s headquarters at the Marienplatz location in Munich. An operating result (EBIT) of EUR 5.2 (6.1) million was achieved at Group level. The Group’s consolidated net income after minority interests comes to EUR 4.2 (5.3) million. The level of earnings is extremely satisfactory in view of the unfavourable situation of the economy as a whole. Due to its expanded consolidated entity, the LUDWIG BECK Group’s balance sheet total has increased to EUR 93.6 (previous year: 30.8). Besides LUDWIG BECK AG as parent company and ludwigbeck-online GmbH, the consolidated entity now also includes Ludwig Beck Vertriebs GmbH (being consolidated for the first time) as well as Ludwig Beck Beteiligungs GmbH with its holding in Feldmeier GmbH & Co. Betriebs KG, the latter being owner of the Group’s real estate. The real estate is shown with a value of approximately EUR 65 million on the balance sheet. Equity capital now stands at EUR 38.9 million, an extremely respectable figure in view of the high proportion of real estate totalling 41.6 (57.5) per cent. As corporate financial director Dieter Münch comments: “In times of uncertainty, investors again tend to put a high value on companies with a solid financial structure.” Though there is not likely to be any medium-term improvement in the economy and in the state of the German retail trade, LUDWIG BECK anticipates being able to maintain its own positive trend. Group chief executive Reiner Unkel: “We see the provision of competent customer advice, the quality of our products, and innovative concepts as forming the basis for solid growth in earnings, with growth in earnings having priority over sales growth.” In this context, the first half of 2002 will see LUDWIG BECK establishing a “Wellness Store”. Renovation and the extension of floor area will create an additional sales area of 250 m2 for the cosmetics department with special spa-oriented wellness applications. The lingerie department too is also being reoriented on a new sales area. Decisive growth is expected of the newly established Ludwig Beck Vertriebs GmbH, which will be operating its own mono-label shops as franchisee. No less than 6 shops are to be opened or taken over in 2002 on this basis. ludwigbeck-online GmbH will be increasing its online and mail order sales significantly, as a result of which its loss this year will only be slight. On this footing, LUDWIG BECK will maintain its successful development, even in the face of a difficult economic environment. The Management Board and Supervisory Board will be proposing a dividend of EUR 087 to the General Meeting of Shareholders. Losses carried forward mean that this dividend is tax-free and, as before, is not taxable on the part of the investor. Contact: Lothar Fiss, Investor Relations and Public Relations Tel. +49(0)89 23691-663, Fax +49(0)89 23691-600 EMail: lothar.fiss@ludwigbeck.de end of message, (c)DGAP 04.04.2002