Umbro plc reported that first half profits before tax and exceptional items were £17.7 million ($31.5 mm), an increase of 55.2% over profits from the first half of last year of £11.4 million ($21.5 mm). Total Wholesale Equivalent sales were £249.3 million ($443.5 mm), an increase of 42.2% over the £175.4 million ($330.6 mm) reported the first half of last year.

Gross margins decreased by 1.3 percentage points to 54.4% compared to 55.7% last year driven by the greater volumes of England associated product which carry a lower margin than replica kits. The group increased brand marketing expenditure associated with World Cup and support of new ranges.

Adjusted earnings per share were 8.5 pence for the period compared to 5.8 pence last year. The Board is recommending an interim dividend of 1.76 pence, an increase of 10%. In addition, the group is now debt free.

Management said that the Umbro brand experienced “unparalled global exposure” at this year’s World Cup in Germany. In addition there was broad basis of growth demonstrated by both branded and licensed product groups and all geographical regions showing sales growth.

However there will be a first half sales bias as a result of the World Cup, so the group has increased marketing initiatives to promote Umbro by Kim Jones, Philip Treacy for Umbro and U by Umbro, all of which should “continue to enhance brand perceptions.”

The management team has been strengthened, in particular by the appointment of Steve Makin as Chief Financial Officer.

Commenting on the results, Peter McGuigan, Chief Executive of Umbro, said, “I am pleased with the great progress we have made in the first half and, in
particular, the strong performance of Group sales when compared to the last
tournament year. We have once again delivered results in line with expectations.

“The brand enjoyed unparalled global exposure during the World Cup in Germany,
and with the further initiatives that we have planned for the remainder of 2006
and beyond, we are confident of a satisfactory outcome for the year and remain
confident of enhancing shareholder value.”