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

fashion created for kidsUnited Kingdom retailActual Forecast 2003 1$000 $000 $000Turnover GBP 6,999 6,351 10.2% 5,260 33.1%Turnover NZD 19,537 17,323 12.8% 14,480 34.9%EBIT (1,343) (2,472) 45.7% (2,586) 48.1%(6.9%) (14.3%) (17.9%)Stores 9 10 91: Proforma 12 month period ended 31 July 2003.The United Kingdom business showed a substantial increase in revenue per store duringthe 2004 year. We opened 1 new store in Nottingham and closed our loss making store inSwindon with very little cost to the Company. After adjusting for these changes ouraverage turnover per store increased 14.4% over the past year and it is expected toincrease further as brand recognition develops.Significantly, during the year, our increased emphasis on logistics and IT systems hasmeant we have been able to better satisfy customer needs and these changes willposition us for future growth. On the whole the United Kingdom performance wassatisfactory with our loss reducing by $1.1m on what was forecast in our Prospectus. Whilewe are still in the infancy of being a credible childrenswear offer in the United Kingdom,management is confident that the improvements made in the last year will enable us toopen at least 3 more stores in the 2005 financial year. While these will not be profitablefor the first 18 months of operation, we anticipate the United Kingdom will break even inthe 2005 financial year.Our goal for the next 12 months is to deliver the same high standards of customer servicethat Australasia now expects from the Pumpkin Patch brand. Our new team of skilledprofessionals has shown a wonderful ability to adapt to the Pumpkin Patch operatingmodel and we are confident that our team will even further enhance our offer to theUnited Kingdom customers.8