Umbro has continued to perform in line with expectations internationally with year-to-date total wholesale equivalent sales (TWE) 14% ahead of 2005. However, in the UK, market conditions remain challenging and as a consequence, Umbro’s full-year results are likely to be marginally below the Board’s expectations at the interim stage.

Peter McGuigan, Chief Executive said, “We have produced a satisfactory performance whilst making strong progress on a number of fronts strategically. Looking ahead to 2007 it is expected that we will continue to deliver good growth internationally with the UK market place remaining challenging.

“The Board remains confident that the group strategy of driving brand credibility through technical performance product, lifting the brand image through lifestyle ranges, developing key markets and identifying opportunities for investment will increase shareholder value.”

The licensee network continues to grow with year to date TWE across all territories and product categories being ahead of last year.

Umbro’s China licensee (Team and Sport) continues to show impressive growth with year to date TWE ahead of 2005 by over 50%. The store opening program is continuing ahead of previous expectations with an anticipated store count of 935 by the year end.

There has been no change to the trading pattern in the USA, which, as outlined previously, will be below initial expectations. The Board are pleased with the performance in the soccer speciality sector and the progress being made with the Dick’s Sporting Goods partnership and remain confident of achieving strong growth in this market.

TWE growth in the UK, across both the buy/sell and royalty based business, is expected to be approximately 20% for the year, significantly influenced by licensed sales in the first half of the year. Non-licensed TWE is currently below the 2005 level but is expected to show modest growth for the full year.

As indicated at the half year and by other operators, the UK market place remains an extremely tough and ‘price led’ environment in which to operate. The Group’s ability to maintain margins in the UK is coming under increasing pressure and UK margins will be below expectations for the full year. The Group is free of England related inventory, although post tournament sell through at retail has been slow resulting in an increase in debtor days and a subsequent increase in the annual interest charge.