prospectus for - Pumpkin Patch investor relations

PROSPECTIVE FINANCIAL INFORMATION (CONTINUED)Principal assumptions underlying the prospective financial informationThe principal assumptions upon which the forecast financial information is based are summarised below andshould be read in conjunction with ‘Risk and special trade factors’ on pages 27 to 31.The prospective financial information for the years ending 31 July 2004 (“FY04”) and 31 July 2005 (“FY05”) onpages 36 to 43 constitutes a forecast as defined by the New Zealand Financial Reporting Standard No. 29,‘Prospective Financial Information’ and has been prepared on the basis of assumptions as to future events thatthe Directors reasonably expect to occur associated with the actions the Directors reasonably expect to takeas at the date the information was prepared. The forecast was prepared as at 8 April 2004 for use in this OfferDocument. Actual audited results for the 6 month period to 31 January 2004 and actual unaudited results forFebruary 2004 and March 2004 have been incorporated into the forecast for the year ending 31 July 2004. Theforecast information has been prepared for the purposes of this prospectus and may not be suitable for anyother purpose. There is no present intention to update this prospective financial information or to publishprospective financial information in the future.In preparing the forecast financial information, the accounting policies set out on pages 49 to 52 as part of theGroup financial information have been applied without change. There is no expectation of any change to theaccounting policies that would require a material change in the reporting of Pumpkin Patch’s activities in thefuture.General assumptions across all countries in which Pumpkin Patch operatesEconomic EnvironmentThere will be no material change in the general economic environmentLegislative and regulatory EnvironmentThere will be no material change to the legislative and regulatory environment in which Pumpkin Patchoperates.Competitive EnvironmentThere will be no material changes to the competitive markets in which Pumpkin Patch operates and no newentrants that will materially change the competitive environment.Industry ConditionsThere will be no material change to the competitive activity, industry structure, unanticipated fashion trends,general industry conditions, third party retailer relationships or the employee environment.Other assumptionsIncome TaxThere will be no change to the tax regime in New Zealand, Australia or the UK, including no change to thecompany tax rate of 33%, 30% and 30% respectively.Management of Pumpkin PatchPumpkin Patch’s senior management and other key people will continue in their current roles.Disruptions to OperationsThere will be no material disruptions to Pumpkin Patch’s operations or brand arising from long term IT or powerfailures, natural disasters, fires and explosions, and major disruptions to freight distribution networks.40