1086 AnnRep-Investment S04-3 - Pumpkin Patch investor relations

managing director’s reportOur yearThis has been an exciting period in the development of our company with the listingon the New Zealand Stock Exchange bringing new opportunities and responsibilities.We achieved sales and earnings growth and exceeded our prospectus forecast.Turnover grew to $220.3m, an increase of 13.8% on 2003 and 3.2% above forecast.We achieved strong results in all our markets, especially Australia and the UnitedKingdom. EBIT (before costs of restructuring pre-listing employee share schemes) was$22.9m versus forecast of $19.5m, and we achieved a very credible 10.4% EBIT toturnover. These results highlight the strength of our brand and the ability Pumpkin Patchhas to maintain strong margins.Pumpkin Patch was able to continue its expansion in New Zealand and Australia throughboth new store openings and consolidation of revenue from stores opened over the last18 months. Our refurbishment programme ensures our retail environment represents ourposition as the Australasian market leader in children’s specialty apparel.New Zealand retailActual Forecast 2003 1$000 $000 $000Turnover NZD 45,763 47,390 (3.4%) 42,333 8.1%EBIT 6,420 6,675 (3.8%)14.0% 14.1%StoresPumpkin Patch 27 25 21HBK 14 1441 39 211: Proforma 12 month period ended 31 July 2003.Sales grew 8.1% with the opening of 6 new Pumpkin Patch stores providing the backdropto a very successful year.6