Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

Umbro PLC (UMB)

  Print      Mail a friend       Annual reports

Thursday 08 March, 2007

Umbro PLC

Final Results

Umbro PLC
08 March 2007


                                                  
                                   Umbro plc

         Preliminary Results for the Full-Year Ended 31st December 2006


Financial Highlights


   •Total wholesale equivalent sales* were £409.4m - an increase of 16.3% on
    2005 and 14.9% on 2004 the previous tournament year.
   •Profit before tax and exceptionals was £26.6m, an increase of 15.7% on
    2005 and a 21.9% increase on 2004.
   •Adjusted earnings per share was 13.7 pence compared to 10.9 pence for
    2005, an increase of 25.7%.
   •The Board is recommending a final dividend of 3.74p, a 16.9% increase on
    2005 reflecting the Balance Sheet strength and management confidence in the
    long term prospects of the business.


*Total wholesale equivalent sales is the sum of Umbro's buy/sell turnover and
the wholesale value of its licensees' sales upon which Umbro receives royalties.


Strategic & Operational Highlights

   •International development
      •14% growth at constant exchange rates
      •64% of Total Wholesale Equivalent sales are outside of the UK
      •All regions - Europe, Asia Pacific and the Americas in growth with
        highlights being Greater China - 48% growth and Russia - 40% growth.
   •Product development
      •Branded product categories globally grew by 10.2% at constant
       exchange rates, in line with the stated objective of 10%.
      •A successful 2006 World Cup drove a 22% growth in the UK market
       versus 2005 with significant increases in England kit, associated and 3
       Lions product sales.
      •Umbro's lifestyle ranges continue to enhance the image of the brand.
   •Operational development
      •Post the year end, Umbro announced the purchase of an additional 15%
       equity in its Chinese licensee Team and Sports bringing Umbro's total
       stake to 40%.
      •During 2006 a significant 15 year Distribution and License agreement
       was signed with Dick's Sporting Goods in the USA.
   •Umbro Asia Sourcing
      •Umbro's new Asian apparel sourcing operation based in Hong Kong
       became fully operational in January 2007.

Commenting on the results, Peter McGuigan, Chief Executive of Umbro, said:

"2006 has been a record year for Umbro and I am pleased with the progress we are
making.

The World Cup further reinforced the authenticity of Umbro as a global football
brand. The development of technical performance ranges along with the
distribution success of our lifestyle collections continues to enhance the image
of Umbro. I am particularly pleased with the growth of our international markets
and despite the challenging conditions in our home market, the performance of
Russia and China in particular show great promise for the future of Umbro."

Nigel Doughty, Chairman of Umbro commented:

"Umbro has grown significantly since flotation in 2004. The China joint venture
and the opening of our own Asian apparel sourcing office means that Umbro is
well positioned for future growth. In addition, the increasing strength of the
business will allow Umbro to take advantage of exciting growth enhancing
investments within the brand's priority markets."

Contacts:
Umbro
Peter McGuigan, Chief Executive                     020 7404 5959 (on the day)
Steve Makin, Chief Financial Officer                0161 492 2000 (thereafter)

Brunswick Group LLP
Simon Sporborg / Dominic McMullan / Tom Williams    020 7404 5959

Financial highlights
for the year ended 31 December


                                          2006       % change over        2005
                                                              year
                                         £'000                           £'000
-----------------------------           --------          --------      --------

Total wholesale equivalent sales *     409,366              16.3%      351,903
-----------------------------           --------          --------      --------

Turnover                               149,527              21.6%      122,990

Profit before tax and exceptionals      26,614              15.7%       23,005

Profit before tax                       26,614             (15.2)%      31,397

                                         pence                           pence
Basic earnings per share                  13.7              (9.9)%        15.2

Adjusted earnings per share               13.7              25.7%         10.9

Proposed final dividend                   3.74              16.9%          3.2


* Total wholesale equivalent sales is the sum of Umbro's buy/sell turnover and
the wholesale value of its licensees' sales upon which Umbro receives royalties.

CHAIRMAN'S STATEMENT

Performance in the year

I am pleased to report another year of continued growth in revenues and profit.
Total wholesale equivalent (TWE) sales globally rose 16.3% to £409.4m and profit
before tax was £26.6m up by 15.7% on the 2005 comparable pre-exceptional profit
before tax of £23.0m.

The World Cup provided a boost to sales of football team and club ("licensed")
products, up 32.5%. Sales excluding licensed increased by 9.6%, which is an
indicator of the underlying desirability of the Umbro brand. TWE also increased
in every region, showing that the brand is a global force in good health.

Sales from the Group's buy/sell operations increased by 20.8% and licensee
royalty revenues increased by 24.9%, the combination resulting in turnover
increasing by 21.6%.

Highlights of the year

The 2006 World Cup in Germany provided Umbro with unparalleled global exposure
through its national teams England and Sweden and its high profile sponsored
players. During the year Umbro extended its sponsorship agreement with England
captain, John Terry, and also increased its global portfolio of teams and clubs.

Positive developments occurred in the Group's principal growth markets China and
USA. TWE in Greater China grew by 48% to £30.4m and the equity stake in the
licensee contributed £0.8m to Group profits. In the USA a distribution agreement
was signed with Dick's Sporting Goods, one of the largest sportswear retailers,
which promises to deliver significant future revenues and improved visibility.

Corporate social responsibility

Corporate social responsibility is high on the agenda of the Group. Adherence to
the policies that the Board has set for third party manufacturing is monitored
by independent audits. Umbro is a member of the Fair Labour Association, an
organisation that exists to improve working conditions worldwide. Staff welfare
is equally high profile and the Group aims for high standards through its human
resource policies.

Umbro's charitable work was underpinned this year by being the proud kit
provider for the highly publicised UNICEF charity event "Soccer Aid" in
Manchester in May.

The Board and management

The Board welcomes Steve Makin who joined as CFO in July and has much experience
from his previous roles at Asda/Wal-Mart which will be of benefit to the Group.

In addition, the Board would like to express its thanks and appreciation to the
staff and partners of Umbro who have contributed to the success of the Group
over the year.

Outlook

Umbro has delivered consistent growth and increasing profitability over the
three years since flotation and has built a strong and broad-based foundation
globally for future growth and development. Its strategy of remaining true to
its football heritage is delivering the results shareholders and the Board
expect. The Board remains confident of the future prospects of the Group.

Nigel Doughty

Chairman

BUSINESS REVIEW - STRATEGY AND OPERATIONS

Continued growth in profits before exceptional items

The Board is pleased to announce profit before tax of £26.6m, an increase of
15.7% over last year's profit before tax and exceptional items. Total wholesale
equivalent sales (TWE) grew by 16.3% to £409.4m. TWE in each geographical region
increased on last year's equivalent, underlining the consistent, broad-based
growth pattern of recent years.

The growth in TWE in 2006, a World Cup year, came from not only licensed apparel
(football club and national team products) as would be expected, but also from
the Group's other non-licensed (branded) products. Licensed apparel sales
increased by 32.5% and branded sales by 9.6%. This is in line with the Group's
strategy of achieving growth in branded products of 10% each year.

The Board is pleased to recommend a dividend of 3.74 pence per share, a 16.9%
increase over 2005. This equates to a payment of £5.4m and is subject to
approval by shareholders at the AGM to be paid on 25 May 2007 to shareholders on
the register at the close of business on 27 April 2007. The ex-dividend date
will be 25 April 2007. The total dividend for the year will be 5.5 pence or
£7.9m in total.

Basic earnings per share is 13.7 pence (2005: 15.2p) and adjusted earnings per
share is 13.7 pence (2005: 10.9p).

Mission statement and business objectives

Football is a truly global sport whose popularity continues to grow. Television
audiences continue to rise, more money is invested in the game and the interest
in football across gender and social background are driving growth in the
football market.

Umbro is passionate about football and dedicated to the game at every level. Its
mission statement is "to inspire and excite the world of football". That mission
is accomplished every time a player gains an edge through a new technological
product, a striking design concept is seen for the first time or a sponsorship
enables a game of football to be possible for those that love it. Umbro has
encapsulated the passion for the game through its marketing campaign "one love".
The "one love" message transcends differences in sporting ability and background
and unites those who take part.

The Group has three business objectives:

(i) to be at least the number three football brand in every market in which it
operates as defined by sales of on-the-field product.

(ii) to grow its branded business by 10% per annum. Branded business is defined
as branded apparel, footwear and equipment.

(iii) to develop a category of football inspired lifestyle products that
directionally represent up to 5% of total wholesale equivalent sales.

Operating Review

• Product overview

TWE of licensed apparel increased by 32.5% to £137.5m, driven by the World Cup
and the participation of Umbro sponsored national teams England and Sweden in
the tournament. Umbro's team kits represent the pinnacle of technical
innovation, performance enhancing characteristics and design. This high profile
and high quality design has translated into robust sales of licensed kits during
the year. Sales of England kits were up 26.1% on 2005, a pleasing increase on a
solid base level of sales that has now been established. In the second half of
the year, slow post-tournament sell through at retail and price discounting of
England kit adversely affected margin.

Sales of England associated products, driven by the interest in the World Cup,
were strong and increased by 248% over last year and by 42% over 2004, the last
tournament year. These associated product sales are particularly strong in
tournament years and the level attained in 2006 will not therefore be repeated
in 2007, a non-tournament year.

The Three Lions range of leisurewear has sold very well in the UK, with sales
increasing by 461% over last year. Umbro has the exclusive right to use the
Three Lions insignia for clothing under its contract with The FA.

TWE of branded apparel grew by 9.1% to £146.5m and now represents 35.8% of total
TWE. It is pleasing to note such a strong level of growth in this product
category, which gives an indication of the underlying desirability of the Umbro
brand. The initiatives that the product team have executed over the last two
years, such as the successful Evolution X concept, have been effective in
strengthening this core element of business. The new SX range for 2007 will
continue to ensure the branded apparel offering remains aspirational and fresh.
The international business (licensees) accounts for 80% of the branded apparel
TWE, bringing diversity to the Group's product mix.

Footwear TWE has declined by 4.4% to £81.8m, driven by lower sales in the UK and
the lack of sales in the USA following on from the start-up with Foot Locker in
2005. International growth was 11.5%, which is highly positive showing that the
efforts being made to improve the product offering are having effect. The
Company is not satisfied with the overall performance of footwear and additional
focus and resource is being directed to improve performance, particularly in
respect of the leisure ranges.

Umbro football boots continue to command respect from players for their
technical and stylistic excellence. The product research that goes into the
design of the boots ensures the product offering remains at the cutting edge.
Umbro's collaboration with Michelin to develop high-grip surface properties is
an example of the exciting product development undertaken by the Group.

Equipment and other TWE grew by 53.7% to £43.6m, driven by a highly successful
football promotion during the World Cup. Excluding this promotion, underlying
TWE was 8.1% up on last year.

• Sponsorships

Team and player relationships remain at the heart of Umbro's marketing activity
and there are over 140 professional teams worldwide wearing Umbro team kits. The
Board is pleased to have secured the following new relationships in the UK: West
Ham United, West Bromwich Albion, Hull City, Heart of Midlothian, Sunderland and
Wigan Athletic. John Terry (Chelsea and England captain) was re-signed for
another six years. In Latin America, contracts with Santos (Brazil) and
Independiente (Argentina) were extended.

These additions and renewals complement a strong, ongoing portfolio which
includes the national teams of England, Republic of Ireland (extended in 2006 to
2014), Norway and Sweden and clubs Olympique Lyonnais, CSKA Moscow, Everton,
Glasgow Rangers, Gamba Osaka and Besiktas and many other local teams. High
profile sponsored players include Michael Owen (Newcastle and England), Deco
(Barcelona and Portugal), Luis Garcia (Liverpool and Spain), Tim Cahill (Everton
and Australia) and David James (Portsmouth and England).

Throughout the world Umbro is involved at every level of the game reaching those
who share the same passion.

Umbro's sponsorship activities cover the full spectrum of football clubs, grass
roots events and youth tournaments. Over the last year Umbro has sponsored the
Umbro International Cup, which is an amateur youth tournament held in Manchester
England and attracts four hundred teams of aspiring players from over twenty
countries. In addition, Soccer Aid, a charitable event in aid of UNICEF, was
provided with Umbro playing kit for the celebrities who took part in the event
in Manchester last year.

The sponsorship strategy of the Group is to target carefully teams and players
relevant to Umbro's territories, consumers, brand image and that integrate with
its existing portfolio. The sponsored entities are used in promotional
materials, endorsements and events appropriate to each region of the world.

• Marketing

Umbro appeared centre stage at the World Cup through the national teams of
England and Sweden and through the appearances of its sponsored players and
received unparalleled global exposure through the event. To coincide with the
World Cup, Umbro commissioned a photographic study of football with powerful
images taken around the world and published a book bearing the Group's marketing
slogan "one love". The imagery has been used extensively throughout the Umbro
network in various marketing activities and has been widely acclaimed.

Umbro works closely with key retailers to produce in-store and shop window
materials that display the Group's products in an exciting and innovative way.
This form of marketing is considered to be highly effective in its targeting and
cost efficiency.

• Performance in the markets

- International (all markets excluding UK and USA)

International TWE grew by 18.2% at constant exchange rates (c.e.r.) over 2005,
with every product category showing growth. In addition growth was achieved in
each of Europe, Asia-Pacific and the Americas, indicating that the brand is
making very good progress across a large number of markets. International
product category sales are weighted towards branded products, which account for
86% of the total.

Western European markets grew by 20.4% c.e.r., with the top 5 mature markets all
showing increases. Eastern European markets grew at 14.7% c.e.r. and include
Russia, which grew by 39.7% and is quickly becoming one of the Group's larger
territories.

Latin America has continued to deliver strong results, increasing TWE sales by
19.7% c.e.r.. Canada also produced excellent results with a 17.6% increase on
2005.

Asia Pacific including China increased by 15.1% c.e.r., but excluding China
declined by 3.5% due to the termination of the Korean licensee early in 2006. A
new licensee was appointed in late 2006 and will result in the recovery of sales
in 2007.

- China

Growth in Greater China continues apace and the associate company, in which
Umbro owned a 25% interest at the year end, recorded a sales increase of 48.2%.
China has moved to the position of second largest Umbro licensee territory. The
development of the country is well documented and Umbro is working in
partnership with its licensee to continue to exploit the enormous potential of
the Chinese market. Subsequent to the year end Umbro secured an additional 15%
equity stake in the licensee, which will enable Umbro to profit from the growth
of the company.

- USA

Performance in the USA in 2006 has not been in line with expectations, the
shortfall resulting from reduced revenues from Foot Locker. Overall, TWE is down
63.1%. However, excluding Foot Locker, sales with soccer speciality stores and
mail order have driven growth of 40.2% as a trading platform has become
established. To achieve the targeted growth levels expected, the Company has
entered into a 15 year distribution agreement with Dick's Sporting Goods Inc,
one of the largest sporting goods retailers in the USA with approximately 300
stores. This agreement will result in increasing revenues in 2007 and beyond.

- UK

TWE in the UK market, the Group's largest, increased by 22.0% over 2005. This
success is attributable to several factors: the volume of the hugely successful
England kits; the increase in England associated products which are sold in
higher quantities in tournament years; the success of the Three Lions brand sold
to non-sports trade retail; and the growth in branded apparel sales due to
product range improvement.

The sports retail trade was highly competitive in 2006, with pressure on margin
throughout most of the year. Further consolidation occurred during the year with
the largest retailer increasing its market share. Umbro will continue to work
closely with retailers to develop profitable ranges and support these by a
combination of advertising and in-store displays.

The strategy that Umbro has executed to offer differentiated ranges to major
retailers has contributed to a 32% growth in branded apparel TWE. Integrated
ranges have further strengthened the product offering and driven increased
sales.

Footwear sales were disappointing, declining by 30.7% to £10.0m. This was driven
by reduced business at retail due to their overstocking at the start of the year
coupled with aggressive discounting and clearances from other major brands. As
the market re-adjusts to normality in 2007, it is expected that sales will climb
towards levels previously attained.

A new England home shirt, traditionally selling in greater volumes than the away
strip, has been launched in 2007. Retail partnerships remain strong and
marketing exposure has been increased by new club signings.

• Ethical policy and social responsibility

Corporate social responsibility is of the utmost importance to the Group and a
rigorous system of policies and procedures has been established by the CSR unit.
Suppliers are required to comply with a written code of conduct which outlines
minimum standards in working conditions and manufacturing processes. Suppliers
are audited by an independent body to ensure continued compliance and action
plans where improvements are required are issued and monitored on an on-going
basis.

Staff welfare is equally important and is controlled by human resource policies
covering health and safety, discrimination, disciplinary processes, working
environment, staff evaluation and feedback and is supported by the Company ethos
of making Umbro an enjoyable place to work.

The environmental impact of the Group's activities is being more closely
monitored and is reported on in the Directors' Report. Initiatives are under way
to reduce key carbon-emitting activities such as air travel, office energy
consumption and supply chain activity. It is expected that the Company will
report in increasing depth and analysis on environmental costs year on year as
the subject's profile grows.

Dividend policy

The Board is recommending a final dividend for the year ended 31 December 2006
of 3.74p per share, an increase of 16.9% over the final dividend for 2005. This
reflects the performance in 2006, the strong operational cash flow of the Group
and the Board's confidence in the future growth opportunities.

The Directors have adopted a progressive dividend policy which is designed to
achieve an increase in dividends each year reflecting the medium term growth
prospects of the business.

Prospects

2007 is a non-tournament year and the group expects a reduction of licensed
apparel sales in the UK, particularly those of England associated product.
Whilst branded business in the UK will increase mainly as a result of the new
agreement with Sports World, trading conditions remain challenging. Continued
growth is anticipated from the international markets. The China business is
expected to continue its expansion and profits will be boosted by the increase
in the equity stake of Umbro from 25% to 40%. The USA business is expected to
show increases over 2006 as the Dick's Sporting Goods license begins to deliver
revenues.

The Group was, as expected, debt free at the year end. The investment in China
and the pattern of sales in 2007 are expected to result in a net debt position
at the end of 2007.

The global growth opportunities for the Group give the Board confidence of
increasing shareholder value in the medium term.

Peter McGuigan
Chief Executive Officer

BUSINESS REVIEW - FINANCIAL

• TWE sales


Total wholesale equivalent (TWE) sales by product and by segment
----------------------------------                 -------   -------    -------
                                                    2006    % change     2005
                                                   £'000                £'000
----------------------------------                 -------   -------    -------
TWE of licensed apparel                          137,512      32.5%   103,787
TWE of branded apparel, footwear and equipment   271,854       9.6%   248,116
----------------------------------                 -------   -------    -------
Total wholesale equivalent sales                 409,366      16.3%   351,903
----------------------------------                 -------   -------    -------

Buy/sell turnover                                119,717      20.8%    99,124
Wholesale equivalent of royalty income           289,649      14.6%   252,779
----------------------------------                 -------   -------    -------
Total wholesale equivalent sales                 409,366      16.3%   351,903
----------------------------------                 -------   -------    -------

Total wholesale equivalent sales (TWE) is the sum of the Group's buy/sell
turnover and the equivalent wholesale sales value of the royalty income received
from its licensees. TWE provides a clear measure of overall sales regardless of
whether the sales are derived from buy/sell operations of the Group or by its
licensees.

TWE increased by 16.3% overall. Licensed apparel, representing 33.6% of TWE,
increased by 32.5% and was driven by substantial increases in sales of England
kits, England associated products and Three Lions leisurewear. The success of
these three product ranges has more than compensated for the loss of Chelsea
sales recorded in 2005.

Branded sales (apparel, footwear and equipment), which represented 66.4% of TWE,
grew by 9.6% in line with Group strategy of a 10% increase per annum. Branded
sales have grown year on year for the last 3 years at a compound annual growth
rate of 8.9%.

TWE growth was positive in every region when comparing 2006 with both 2005 and
the last tournament year 2004. This is a good indicator of the broad-based
growth and diversified strength of the Group. The Group generated 63.8% of its
TWE from outside of the UK in 2006.

Wholesale equivalent sales under license increased overall by 14.6% to £289.6m,
reflecting the increasing strength of the brand and the quality of the licensee
network. Branded products accounted for 84.9% of wholesale equivalent sales
under license.

Pre-exceptional profit for the year
                                               2006    % change           2005
                                                                 Pre-exceptional
Buy/sell turnover                           119,717      20.8           99,124
Gross profit on buy/sell                     60,283      11.8           53,920
Gross margin %                                 50.4%                      54.4%

Royalty income turnover                      29,810      24.9           23,866
Sports marketing, design & development      (36,490)     13.1          (32,272)
costs
Selling and distribution costs              (20,774)     19.2          (17,421)
Administration costs                        (10,662)     13.8           (9,367)
Other operating income                        5,259      (9.6)           5,820
------------------------                     --------  --------         --------
Operating profit                             27,426      11.7           24,546

Net finance costs                            (1,661)     (8.2)          (1,810)
Share of post tax profits of associate          849                        269
------------------------                     --------  --------         --------
Profit before tax                            26,614      15.7           23,005

Taxation                                     (6,846)                    (7,176)
Effective tax rate                             25.7%                      31.2%
------------------------                     --------  --------         --------
Profit for the year                          19,768      24.9           15,829
------------------------                     --------  --------         --------

In the analysis below, comparisons with 2005 are made to the pre-exceptional
profits for that year.

• Margin and royalties

Buy/sell turnover increased by 20.8% with UK licensed apparel driving the
greatest increase.

The gross margin on buy/sell turnover reduced by 4.0 percentage points to 50.4%
due to the increased proportion of lower margin England associated product and
to discounting of England kits after the quarter finals of the World Cup. In
comparison to the last tournament year, 2004, which had a similar sales mix,
margin increased by 2.1 percentage points from 48.3% to 50.4%.

Royalty income was 24.9% higher than in 2005 reflecting the growth in
International sales under license, additional royalties for England kit sales by
international licensees and new license agreements, including the highly
successful Three Lions license, with UK retailers.

• Costs

Growth in costs reflected the targeted investment in the brand, specifically
from marketing, design and development costs. Aside from these items, costs were
tightly controlled.

Sports marketing cost increases reflected in part the volume increases in buy/
sell turnover, which in turn drive the payments to the sponsored clubs. Design
costs rose due to the development of the new lifestyle ranges.

Selling and distribution costs increased by 19.2% with greater marketing
expenditure relating to the World Cup.

Administration costs were 13.8% higher, after £0.5m of legal costs concerning an
on-going dispute with a licensee.

• Interest and other items

Net interest costs were 8.2% lower as borrowings reduced and the Group
negotiated improved interest rates from its lenders.

The share of post tax profits of the associate (the Chinese licensee) showed the
impact of a full year's worth of profits compared to one quarter's in 2005.
Subsequent to the year end, the Group acquired a further 15% equity share for
US$16.5m, taking the equity share to 40%.

The tax charge for the year benefited from the reversal of prior year tax
provisions of £1.5m.

Liquidity and financial resources
                                                               2006       2005
                                                              £'000      £'000
----------------------------                                --------   --------
Net profit before exceptionals                               19,768     15,829
Tax                                                           6,846      7,176
Depreciation and amortisation                                 2,573      2,044
Net interest expense                                          1,661      1,810
Other operating movements                                        82          -
Share of associate's profit                                    (849)      (269)
Increase in inventory                                        (4,672)      (526)
Decrease / (increase) in receivables                          3,756     (6,959)
Decrease in payables                                        (14,233)    (1,570)
Capital expenditure                                            (788)    (1,518)
----------------------------                                --------   --------
Free cash inflow before exceptionals                         14,144     16,017
Exceptional receipt - Chelsea                                24,500          -
Exceptional payments - OFT and FA                                 -     (7,769)
Interest paid                                                (1,460)    (1,593)
Tax paid                                                     (6,955)    (6,161)
Dividends paid                                               (7,169)    (6,504)
Investment in associate and subsidiary                       (2,068)    (2,784)
Non-cash changes, exchange differences and share issue         (181)      (215)
----------------------------                                --------   --------
Net cash flow                                                20,811     (9,009)
Net debt at start of year                                   (16,147)    (7,138)
----------------------------                                --------   --------
Net cash / (debt) at end of year                              4,664    (16,147)
----------------------------                                --------   --------

----------------------------                                --------   --------
Analysis of net debt
Cash                                                      4,732         1,580
Term loan                                                     -        (9,323)
Overdraft / revolving credit facility                         -        (8,872)
Unamortised bank fees                                         -           654
Finance leases                                              (68)         (186)
----------------------------                               --------    --------
Net cash / (debt) at end of year                          4,664       (16,147)
----------------------------                               --------    --------

Free cash flow before exceptional cash flows was £14.1m compared to £16.0m in
2005. Working capital movements were responsible for this difference, the
principal items being the two-yearly payment of volume related royalties to The
FA in 2006 (accounting for the decrease in creditors) and the increase in
inventory ahead of the launch in February 2007 of the new England kit (earlier
than the March launch in 2006).

The exceptional receipt of £24.5m from Chelsea from the termination compensation
resulted in the highly positive cash inflow for the year and the consequent
reduction of net debt from £16.1m to positive cash of £4.7m.

The Group's bank facilities were amended in August 2006, following receipt of
the Chelsea compensation, enabling the term loan to be repaid early and reducing
the interest margins to 0.9% and 0.75% above LIBOR for 2006 and 2007
respectively. The facilities have a £50m ceiling for borrowings plus guarantee
and foreign exchange facilities, which are ample for the future under current
plans. The Group manages its exchange risk by hedging its future cash flows in
dollars and euros. The Group policy is to reduce uncertainty and not to
speculate.

The final ordinary dividend of 3.74p proposed for 2006 will be payable on 25 May
2007, subject to shareholder approval.

Pension scheme

The Umbro final salary scheme, which has been closed to new entrants since 2001,
showed a deficit of £7.2m reducing by £0.8m since 2005. The Company adopted more
recent mortality tables, which increased the liabilities, but asset
over-performance offset this to generate the reduction in the net liability to
£7.2m. The Company and Trustees of the scheme agreed a deficit recovery plan in
2005 involving the payment by the Company of an extra £0.4m p.a. over 10 years
plus an increase in members' contributions and cap on inflationary pension
increases. This recovery plan is periodically reviewed in the light of the
Company's cash position by the Trustees and the Board.

Steve Makin
Chief Financial Officer

PRELIMINARY ANNOUNCEMENT OF AUDITED RESULTS

Income Statement - Group

for the year ended 31 December
                                  2006                         2005
                                          Pre-exceptional Exceptional    Total
                                                                items
                                                             (Note 7)
                        Note     £'000            £'000       £'000      £'000
--------------------   -----     -------          -------     -------    -------
Total wholesale           2      409,366          351,903           -   351,903
equivalent              -----    -------          -------     -------    -------
--------------------

Turnover                  2      149,527          122,990           -   122,990
Cost of sales                    (95,924)         (77,476)    (16,854)  (94,330)
--------------------    -----    -------          -------     -------    -------
Gross profit                      53,603           45,514     (16,854)   28,660

Selling and
distribution                     (20,774)         (17,421)          -   (17,421)
costs
Administration costs             (10,662)          (9,367)          -    (9,367)

Other operating income    4        5,259            5,820      25,715    31,535
--------------------    -----    -------          -------     -------    -------
Operating profit                  27,426           24,546       8,861    33,407

Finance costs             5       (1,762)          (1,936)       (469)   (2,405)
Finance income            6          101              126           -       126
Share of post tax
profits                              849              269           -       269
of associate            -----    -------          -------     -------    -------
--------------------
Profit before tax         3       26,614           23,005       8,392    31,397

Taxation                  8       (6,846)          (7,176)     (2,267)   (9,443)
--------------------    -----    -------          -------     -------    -------
Profit for the period             19,768           15,829       6,125    21,954
--------------------    -----    -------          -------     -------    -------

Attributable to:
Equity holders of the
Group                             19,743                                 21,900
Minority interests                    25                                     54
--------------------    -----    -------          -------     -------    -------
                                  19,768                                 21,954
  --------------------  -----    -------          -------     -------    -------
Earnings per share for
profit attributable to
the equity holders of
the Group during the 
year
Basic earnings per       10       13.7p                                   15.2p
share
Diluted earnings per              13.3p                                   14.9p
share
The results above are
in respect of
continuing activities.

Income Statement - Company
for the year ended 31 December
                                                              2006        2005
                                                 Note        £'000       £'000
--------------------------                      -------      -------     -------
Administration costs                                        (1,007)       (744)

Other operating income                              4          876         892
Dividend income from subsidiary undertaking                      -       5,000
--------------------------                      -------      -------     -------
Operating (loss) / profit                                     (131)      5,148

Finance costs                                       5            -        (177)
Finance income                                      6          216         469
--------------------------                      -------      -------     -------
Profit before tax                                   3           85       5,440

Taxation                                            8          (26)       (132)
--------------------------                      -------      -------     -------
Profit for the period                                           59       5,308
--------------------------                      -------      -------     -------

Statements of Recognised Income and Expense
for the year ended 31 December
                                                        Group            Company
                                             2006      2005      2006     2005
                                            £'000     £'000     £'000    £'000
--------------------------                 --------  --------  --------  -------
Exchange difference on retranslation of
net                                            11       (10)        -        -
assets in subsidiary undertakings
Cash flow hedges:
        - net fair value (losses) / gains  (5,292)    4,931         -        -
Actuarial gain / (loss)                       471    (2,442)        -        -
Deferred tax on actuarial (gain) / loss      (142)      733         -        -
Amortisation of share incentive schemes
credited to reserves                          876       597       876      597
Deferred tax on market value difference
of                                            353         -         -        -
share incentives schemes                   --------  --------  --------  -------
--------------------------
Net (loss) / income recognised directly
in                                         (3,723)    3,809       876      597
equity
Profit for the financial year              19,768    21,954        59    5,308
Adjustments arising on first time
adoption of                                     -    (2,597)        -        -
IAS 32 and 39                              --------  --------  --------  -------
--------------------------
Total gains recognised since last
financial statements                        16,045    23,166       935    5,905
--------------------------                 --------  --------  --------  -------

--------------------------     --------      --------      --------      -------
Attributable to:
Minority interests                 25            54             -            -
Equity shareholders            16,020        23,112           935        5,905
--------------------------     --------      --------      --------      -------

Balance Sheets
as at 31 December
                                                     Group               Company
                                          2006      2005       2006       2005
                                Note     £'000     £'000      £'000      £'000
--------------------------    -------   --------  --------   --------    -------
Assets
Non-current assets
Property, plant, and              11     2,517     2,662          -          -
equipment
Goodwill                          12    73,147    72,864          -          -
Intangible assets                 13     4,732     5,537          -          -
Investment in subsidiary          15         -         -    108,779    108,779
Investments accounted for
using                             14     1,118       269          -          -
equity method
Deferred income tax assets        16     3,192     3,061          -          -
--------------------------     -------  --------  --------   --------    -------
                                        84,706    84,393    108,779    108,779
Current assets
Inventories                       17    11,931     7,259          -          -
Trade and other receivables       18    28,587    56,843        120      6,345
Financial assets                  22         -     2,346          -          -
Cash and cash equivalents                4,732     1,580          -          -
--------------------------     -------  --------  --------   --------    -------
                                        45,250    68,028        120      6,345
Liabilities
Current liabilities
Trade and other payables          19    31,443    41,712          -          -
Financial liabilities             20     3,051    11,316          -          -
Current income tax                       4,357     4,549          -          -
liabilities                    -------  --------  --------   --------    -------
--------------------------
                                        38,851    57,577          -          -

Net current assets                       6,399    10,451        120      6,345

Non-current liabilities
Financial liabilities             20        27     6,411          -          -
Other non-current liabilities     21     1,910     7,162          -          -
Retirement benefit liability             7,202     8,008          -          -
--------------------------     -------  --------  --------   --------    -------
                                         9,139    21,581          -          -
--------------------------     -------  --------  --------   --------    -------
Net assets                              81,966    73,263    108,899    115,124
--------------------------     -------  --------  --------   --------    -------

Shareholders' equity
Equity share capital              23     1,445     1,445      1,445      1,445
Share premium account             24    89,225    89,216     89,225     89,216
Reserves                          24    (8,730)  (17,581)    18,229     24,463
--------------------------     -------  --------  --------   --------    -------
Total shareholders' equity              81,940    73,080    108,899    115,124
Minority interest in equity                 26       183          -          -
--------------------------     -------  --------  --------   --------    -------
Total equity                      24    81,966    73,263    108,899    115,124
--------------------------     -------  --------  --------   --------    -------


The notes are an integral part of these consolidated financial statements. The
financial statements were approved by the Board on 7 March 2007 and were signed
on its behalf by:

Steve Makin
Director

Statements of Cash Flows

for the year ended 31 December

                                                       Group             Company
                                           2006       2005      2006      2005
                                Note      £'000      £'000     £'000     £'000
--------------------------    -------     -------    -------   -------   -------
Cash flows from operating
activities
Cash inflow from operations       25     39,809     10,212     6,970     6,344
Interest and finance costs               (1,561)    (2,188)        -      (177)
paid
Interest received                           101        126       216       469
Income tax paid                          (6,955)    (6,161)      (26)     (132)
--------------------------     -------    -------    -------   -------   -------
Net cash from operating
activities                               31,394      1,989     7,160     6,504

Cash flows from investing
activities
Increase in investment in
subsidiary                        12       (459)       (29)        -         -
Deferred consideration on
acquisition of associate          14     (1,609)    (2,755)        -         -
Purchase of property, plant
and                                        (701)    (1,148)        -         -
equipment
Purchase of intangible assets               (45)      (317)        -         -
Proceeds from sale of
property,                                    59         23         -         -
plant and equipment            -------    -------    -------   -------   -------
--------------------------
Net cash used in investing
activities                               (2,755)    (4,226)        -         -

Cash flows from financing
activities
Issue of ordinary shares                      9          -         9         -
Repayments of borrowings                 (9,323)    (7,177)        -         -
Capital element of finance
lease                                      (160)      (313)        -         -
rental payments
Ordinary dividends paid                  (7,169)    (6,504)   (7,169)   (6,504)
--------------------------     -------    -------    -------   -------   -------
Net cash used in finance
activities                              (16,643)   (13,994)   (7,160)   (6,504)
Effects of exchange rate                     28          3         -         -
changes                        -------    -------    -------   -------   -------
--------------------------
Net increase / (decrease) in
cash                                     12,024    (16,228)        -         -
and cash equivalents

Cash and cash equivalents at
beginning of the period                  (7,292)     8,936         -         -
--------------------------     -------    -------    -------   -------   -------
Cash and cash equivalents at
end                                       4,732     (7,292)        -         -
of the period                  -------    -------    -------   -------   -------
--------------------------

Notes to the accounts

1.                   Statement of significant accounting policies

a.         Basis of preparation

These preliminary financial statements do not constitute statutory accounts for
the year ended 31 December 2006 or for the year ended 31 December 2005, but are
derived from those audited financial statements. Statutory accounts for the year
ended 31 December 2005 have been delivered to the Registrar of Companies. The
auditors have reported on the financial statements for the year ended 31
December 2005 and their report was unqualified and did not contain a statement
under section 237(2) or (3) of the Companies Act 1985.

These preliminary statements are based on financial statements which have been
prepared in accordance with EU endorsed International Financial Reporting
Standards (IFRS) and IFRIC interpretations and with those of the Companies Act
1985 applicable to companies reporting under IFRS. The financial statements have
been prepared under the historical cost convention as modified by the
revaluation of financial assets and liabilities held for trading. A summary of
the more important Group policies is set out below, together with an explanation
of where changes have been made to previous policies on the adoption of new
accounting standards in the year.

The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reported
period. Although these estimates are based on management's best knowledge of the
amount, event or actions, actual results ultimately may differ from those
estimates.

b.         Consolidation

The consolidated accounts drawn up to 31 December include the results of Umbro
plc and all of its subsidiaries. Intra-group sales and profits are eliminated on
consolidation and all sales and profit figures relate to external transactions
only.

Subsidiaries are entities that are directly or indirectly controlled by the
Group. Control exists where the Group has power to govern the financial and
operating policies of the entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for the acquisition of
subsidiaries by the Group. The excess of consideration and costs attributable to
the acquisition over fair value of net assets acquired is analysed into its
identifiable components of goodwill or intangible assets, which are tested for
impairment annually.

Associates are entities over which the Group has significant influence but not
control, generally accompanying a shareholding of between 20% and 50% of the
voting rights. Associate companies are accounted for using the equity method of
accounting. The excess of consideration and costs attributable to the
acquisition over fair value of net assets acquired is analysed into its
identifiable components of goodwill or intangible assets, which are tested for
impairment annually. The share of post tax profits or losses of the associate is
taken to the investment in associate on the balance sheet.

c.         Segment reporting

A business segment is a group of assets and operations engaged in providing
products or services that are subject to risks and returns that are different
from other segments. The group has identified the principal business segments as
buy/sell and licensee. Those costs which cannot be reasonably allocated to
either segment are separated as "unallocated".

A geographical segment is engaged in providing products or services within a
particular economic environment that are subject to risks and returns that are
different from those of segments operating in other economic environments.

d.         Goodwill and intangible fixed assets

Goodwill and intangible assets arising on the acquisition of subsidiary
undertakings is calculated as the excess of the fair value of the purchase
consideration over the fair value of the separately identifiable net assets
acquired. Fair values are attributed to the identifiable assets and liabilities
that existed at the date of acquisition, reflecting their condition at that
date. Goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses and accumulated amortisation to 1 January 2004,
the effective date for adoption of IFRS. Intangible assets are amortised over
their estimated useful lives as follows:

Brands and similar 5%

Customer lists and similar 10%

Other intangible fixed assets are stated at historical cost less amortisation.
Amortisation of intangible fixed assets is calculated to write off the cost of
the assets in equal annual instalments over their estimated useful lives at the
following rates:

Computer software 25%

e.         Tangible fixed assets and depreciation

Tangible fixed assets are stated at historical cost less depreciation.

Depreciation of tangible fixed assets is calculated to write off the cost of the
assets less net realisable value in equal annual instalments over their
estimated useful lives at the following rates:

Plant and machinery 20%

Fixtures 10%

Motor vehicles 25%

Computer and office equipment 25%

The assets' residual values and useful lives are reviewed and adjusted, if
appropriate, at each balance sheet date. Gains and losses on disposals are
determined by comparing the proceeds with the carrying amount and are recognised
within "other operating income" in the income statement.

f.         Investments

Investments are stated at cost less any provision for impairment.

g.         Inventory

Inventory is stated at the lower of cost and net realisable value. Provision is
made to reduce cost to net realisable value having regard to the age,
saleability and condition of inventory. Cost is determined using the
first-in-first-out (FIFO) method. Net realisable value is the estimated selling
price in the ordinary course of business, less applicable selling expenses.

h.         Deferred taxation

Deferred tax is recognised on all timing differences that have originated but
not reversed at the balance sheet date, where transactions or events that result
in an obligation to pay more, or a right to pay less, tax in the future have
occurred at the balance sheet date. Deferred tax assets are recognised only to
the extent that, based on all available evidence, it is considered more likely
than not that there will be suitable taxable profits from which the future
reversal of the underlying timing differences can be deducted.

Deferred tax is measured on a non-discounted basis at the tax rates that are
expected to apply in the periods in which the timing differences are expected to
reverse, based on tax rates and laws enacted or substantively enacted by the
balance sheet date.

i.         Foreign currency

1. Functional and presentation currency

Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates (the functional currency). The consolidated financial statements
are presented in sterling ('£') which is the Company's functional and
presentation currency.

2. Translation of foreign subsidiaries

Results of foreign subsidiaries are translated to Sterling using the net
investment method. Income statement balances are translated at the average rate
ruling for the year. The closing rate is used to translate the balance sheet.

Exchange differences arising from the translation of the net investment in
overseas subsidiaries are taken directly to reserves. All other translation
differences are taken to the income statement.

3. Transactions in foreign currencies

Transactions denominated in foreign currencies are translated into sterling at
the exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies which are held at the year-end are
translated into sterling at the rate of exchange ruling at the balance sheet
date.

4. Hedging activities - cash flow hedges

The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedges are recognised in equity. The gain or
loss on the ineffective part is shown in the income statement. Amounts
accumulated in equity are recycled into the income statement in the periods when
the hedged item will affect income. When the hedge is used to purchase a
non-financial asset, such as inventory, the amounts accumulated in equity are
transferred to the cost of the asset.

j.         Turnover

1. Buy/sell operations

Turnover represents amounts charged to external customers after deduction of
returns and allowances, discounts and VAT. Turnover is recognised on despatch of
goods.

2. Royalties

Royalty income from licensee activities is included in turnover and represents
royalties due on sales made (or in some cases on merchandise sourced from
suppliers) by royalty partners.

'Total wholesale equivalent sales' represents the Group's buy/sell sales (where
the Group acts as principal), plus the wholesale equivalent value of its
licensees' sales, from which Umbro is entitled to royalties (where the Group
acts as agent).

k.         Sports marketing costs

1. Basic payments

Payments under team and individual player sports marketing contracts are charged
to the income statement over the active life of the contract.

2. Additional payments

Some contracts include a requirement to make additional payments where wholesale
sales, over defined periods, exceed specified levels. The Group forecasts total
sales over the defined period and charges the additional royalty expense to the
income statement on a pro rata basis. Subsequent revisions to estimates for
earlier years are charged to the income statement in the current year, rather
than being spread prospectively. Other additional payments specified in team and
individual players' contracts are charged to the income statement as incurred.

3. Impairment

All contracts are individually reviewed annually and impairment charges raised
as needed.

l.         Leased assets

Assets held under finance leases where substantially all the benefits and risks
of ownership are transferred to the Group, are capitalised as tangible fixed
assets in the balance sheet and are depreciated over the useful economic life of
the lease. The interest element of the rental obligations is charged to the
income statement over the period of the lease and represents a constant
proportion of the balance of capital repayments outstanding.

Rentals in respect of operating leases, under which substantially all the
benefits and risks of ownership remain with the lessors, are charged to the
income statement on a straight line basis over the period of the lease.

m.         Pension costs

The Group operates a defined benefit scheme and defined contribution schemes.

A full actuarial valuation using the projected unit method of the defined
benefit scheme is carried out every three years with interim reviews in the
intervening years.

The liability recognised in the balance sheet in respect of the defined benefit
pension scheme is the present value of the defined benefit obligation at the
balance sheet date less the fair value of scheme assets. The defined benefit
obligation is calculated annually by independent actuaries using the projected
unit method. The present value of the defined benefit obligation is determined
by discounting the estimated future cash outflows using interest rates of
high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approximating to the
terms of the related pension liability.

Actuarial gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognised immediately through the Statement of
Recognised Income and Expense in the period in which they arise.

Past service costs are recognised immediately in income.

For defined contribution plans, the Group pays into private or group
administered plans and has no further obligation once the contributions have
been paid. The contributions are recognised as employee benefit expense when
they are due.

n.         Costs of raising debt finance

Costs of raising debt finance are deducted from the finance raised and amortised
on a straight-line basis to the income statement over the period over which the
finance is outstanding.

o.         Cost of sales

Cost of sales comprises the cost of purchasing products for the buy/sell
operations, sports marketing costs, and design and development costs.

p.         Share related payments

The fair value of equity-settled share-based payments to employees is determined
at the date of grant and is expensed on a straight-line basis over the vesting
period based on the Group's estimate of shares or options that will eventually
vest. In the case of options granted, fair value is measured by a Black-Scholes
pricing model. At each balance sheet date the entity revises its estimates of
the number of options that are expected to vest.

q.         Cash equivalents

The Group considers all highly liquid investments with original maturity dates
of three months or less to be cash equivalents.

r.         Dividends

Dividends are recognised in the financial statements in the period when they are
paid.

s.         Exceptional items

Exceptional items are those which are significantly large and unusual enough to
require separate disclosure so that the underlying trends within the business
can be identified.

2. Segment information
Primary reporting format- business segments
                                                               2006       2005
                                                              £'000      £'000

-------------------------------                  ---------  ---------  ---------
Turnover - Buy/sell operations
Licensed apparel                                             93,761     73,978
Branded apparel                                              14,672     11,365
-------------------------------                  ---------  ---------  ---------
Total apparel                                               108,433     85,343
Footwear                                                      7,002     10,409
Equipment and other                                           4,282      3,372
-------------------------------                  ---------  ---------  ---------
                                                            119,717     99,124
-------------------------------                  ---------  ---------  ---------

Turnover - Licensee royalty income
Licensed apparel                                              7,404      4,455
Branded apparel                                              12,746     10,706
-------------------------------                  ---------  ---------  ---------
Total apparel                                                20,150     15,161
Footwear                                                      6,776      6,609
Equipment and other                                           2,884      2,096
-------------------------------                  ---------  ---------  ---------
                                                             29,810     23,866
-------------------------------                  ---------  ---------  ---------
Group turnover
Licensed apparel                                            101,165     78,433
Branded apparel                                              27,418     22,071
-------------------------------                  ---------  ---------  ---------
Total apparel                                               128,583    100,504
Footwear                                                     13,778     17,018
Equipment and other                                           7,166      5,468
-------------------------------                  ---------  ---------  ---------
                                                            149,527    122,990
-------------------------------                  ---------  ---------  ---------
Wholesale equivalent of licensee royalty income
Licensed apparel                                             43,751     29,809
Branded apparel                                             131,781    122,819
-------------------------------                  ---------  ---------  ---------
Total apparel                                               175,532    152,628
Footwear                                                     74,846     75,194
Equipment and other                                          39,271     24,957
-------------------------------                  ---------  ---------  ---------
                                                            289,649    252,779
-------------------------------                  ---------  ---------  ---------
Total wholesale equivalent
Licensed apparel                                            137,512    103,787
Branded apparel                                             146,453    134,184
-------------------------------                  ---------  ---------  ---------
Total apparel                                               283,965    237,971
Footwear                                                     81,848     85,603
Equipment and other                                          43,553     28,329
-------------------------------                  ---------  ---------  ---------
                                                            409,366    351,903
-------------------------------                  ---------  ---------  ---------

Segment information
Primary reporting format- business
segments
The segment results for year ended
31 December 2006
                                      Buy/sell  Licensee  Unallocated    Total
                                       £'000     £'000        £'000      £'000
----------------------------        ---------  --------     --------   --------
Turnover                             119,717    29,810            -    149,527
Operating profit                       9,862    18,025         (461)    27,426
Net finance costs                          -         -       (1,661)    (1,661)
Share of post tax profits of
associate                                  -         -          849        849
----------------------------         ---------  --------     --------   --------
Profit before tax                      9,862    18,025       (1,273)    26,614
Tax                                        -         -       (6,846)    (6,846)
----------------------------         ---------  --------     --------   --------
Profit for the period                  9,862    18,025       (8,119)    19,768
----------------------------         ---------  --------     --------   --------

The segment results for year ended
31 December 2005
                                      Buy/sell  Licensee  Unallocated    Total
                                       £'000     £'000        £'000      £'000
----------------------------        ---------  --------     --------   --------
Turnover                              99,124    23,866            -    122,990
Operating profit                       7,050    17,083        9,274     33,407
Net finance costs                          -         -       (2,279)    (2,279)
Share of post tax profits of
associate                                  -         -          269        269
----------------------------         ---------  --------     --------   --------
Profit before tax                      7,050    17,083        7,264     31,397
Tax                                        -         -       (9,443)    (9,443)
----------------------------         ---------  --------     --------   --------
Profit for the period                  7,050    17,083       (2,179)    21,954
----------------------------         ---------  --------     --------   --------

Segment information
Primary reporting format- business
segments
Other non-cash segment items
included in the income statement for
year ended 31 December 2006
                                       Buy/sell  Licensee  Unallocated   Total
                                        £'000     £'000        £'000     £'000
----------------------------         ---------  --------     --------  --------
Depreciation                              847         -            -       847
Amortisation of intangible assets         520         -          330       850
Impairment of trade receivables            38       390            -       428
Value of employee services                657       219            -       876
----------------------------          ---------  --------     --------  --------

Other non-cash segment items
included in the income statement
for year ended 31 December 2005
                                      Buy/sell  Licensee  Unallocated    Total
                                       £'000     £'000        £'000      £'000
----------------------------        ---------  --------     --------   --------
Depreciation                             794         -            -        794
Amortisation of intangible assets        544         -           83        627
Impairment/(recovery) of trade
receivables                              (32)      271            -        239
Value of employee services               448       149            -        597
Exceptional items - compensation
for loss of contract                       -         -      (24,500)   (24,500)
Exceptional items - NFC contract
accrual                                    -         -       10,000     10,000
Exceptional items - FA contract
termination and renewal                    -         -        4,854      4,854
----------------------------         ---------  --------     --------   --------

Segment assets and liabilities and
capital expenditure for year ended
31 December 2006
                                      Buy/sell  Licensee  Unallocated    Total
                                       £'000     £'000        £'000      £'000
----------------------------        ---------  --------     --------   --------
Assets                                36,603     7,177       86,176    129,956
Liabilities                          (35,040)   (1,323)     (11,627)   (47,990)
Capital expenditure                      788         -            -        788
----------------------------         ---------  --------     --------   --------

Segment assets and liabilities and
capital expenditure for year ended
31 December 2005
                                      Buy/sell  Licensee  Unallocated    Total
                                       £'000     £'000        £'000      £'000
----------------------------         ---------  --------     --------   --------
Assets                                36,643     6,186      109,592    152,421
Liabilities                          (44,238)   (4,636)     (30,284)   (79,158)
Capital expenditure                    1,482         -            -      1,482
Acquisition of associated
undertaking                                -         -        6,799      6,799
----------------------------         ---------  --------     --------   --------

The business at the date of these accounts comprises two segments: buy/sell and
licensee. Items that cannot be reasonably allocated to these segments are
classified as "unallocated".

The buy/sell business is that in which the Group sells product to customers as
principal. The licensee business is that in which the Group licenses third
parties to sell product containing the Group's trademarks in return for a
royalty.

Unallocated represents exceptional items, holding company costs, interest, share
of associate's net profit, and tax in the income statement, and exceptional
items, investment in associate, loans and pension deficit in the balance sheet.

The Company operates as a holding company and therefore operates within a single
segment.

Segmental analysis
Geographical analysis
                                                            2006         2005
                                                           £'000        £'000
-------------------------------                         ---------    ---------
Turnover - Buy/sell operations
United Kingdom                                           113,855       93,230
Rest of Europe                                             2,541        3,073
North and South America                                    3,321        2,821
-------------------------------                          ---------    ---------
                                                         119,717       99,124
-------------------------------                          ---------    ---------

Turnover - Licensee royalty income
United Kingdom                                             7,635        4,283
Rest of Europe                                            13,371       11,384
Asia Pacific                                               5,787        5,022
North and South America                                    3,017        3,177
-------------------------------                          ---------    ---------
                                                          29,810       23,866
-------------------------------                          ---------    ---------
Group turnover
United Kingdom                                           121,490       97,513
Rest of Europe                                            15,912       14,457
Asia Pacific                                               5,787        5,022
North and South America                                    6,338        5,998
-------------------------------                          ---------    ---------
                                                         149,527      122,990
-------------------------------                          ---------    ---------
Wholesale equivalent of licensee royalty income
United Kingdom                                            34,132       28,096
Rest of Europe                                           148,320      124,667
Asia Pacific                                              61,601       55,170
North and South America                                   45,596       44,846
-------------------------------                          ---------    ---------
                                                         289,649      252,779
-------------------------------                          ---------    ---------
Total wholesale equivalent
United Kingdom                                           147,987      121,326
Rest of Europe                                           150,861      127,740
Asia Pacific                                              61,601       55,170
North and South America                                   48,917       47,667
-------------------------------                          ---------    ---------
                                                         409,366      351,903
-------------------------------                          ---------    ---------

Turnover and licensee royalty income is allocated based on where the customer is
located.

                                                         2006             2005
                                                        £'000            £'000
-------------------------------                      ---------        ---------
Total assets
United Kingdom                                        127,058          150,056
Asia Pacific                                              571              494
North and South America                                 2,763            1,871
-------------------------------                       ---------        ---------
                                                      130,392          152,421
-------------------------------                       ---------        ---------

Total assets are allocated based on where the assets are located.

                                                         2006             2005
                                                        £'000            £'000
-------------------------------                      ---------        ---------
Capital expenditure
United Kingdom                                            688            1,327
Asia Pacific                                               56            6,929
North and South America                                    44               25
-------------------------------                       ---------        ---------
                                                          788            8,281
-------------------------------                       ---------        ---------

Capital expenditure is allocated based on where the assets are located.

3. Profit before tax
                                                         Group           Company
                                              2006      2005     2006     2005
                                             £'000     £'000    £'000    £'000
        ----------------------------------    ------   -------  -------  -------
Profit before tax is stated after
charging:
Cost of inventories                         59,726    45,204        -        -
Sports marketing costs (included in cost
of                                          30,664    28,337        -        -
sales)
Design & development costs (included in
cost                                         5,534     3,935        -        -
of sales)
Staff costs                                 13,792    13,197        -        -
Depreciation of owned property plant and
equipment                                      671       510        -        -
Depreciation of leased property plant and
equipment                                      176       284        -        -
Amortisation of intangible assets
(included in                                   520       544        -        -
administration)
Amortisation of intangible assets of
associated undertaking (included in
administration)                                330        83        -        -
Profit on sale of fixed assets                 (41)      (11)       -        -
Audit services - fees payable to Company
auditor for audit of parent company and
consolidated accounts                          127       117        -        -
Non-audit services - fees payable to the
Company's auditor for other services:
Audit of the Company's subsidiaries             13        14        -        -
Tax services                                    82        94        -        -
IFRS compliance advice                           -        25        -        -
Fees payable to other auditors - non-UK         18         5        -        -
Operating lease rentals:
Land and buildings                           1,351     2,061        -        -
Plant and machinery                             31        35        -        -
Impairment of trade receivables                428       239        -        -
----------------------------------            ------   -------  -------  -------

4. Other operating income
                                                   Group                Company
                                        2006       2005        2006       2005
                                       £'000      £'000       £'000      £'000
-------------------------            ---------  ---------  ----------  ---------
Rental                                   193      1,312           -          -
Commissions                            3,047      2,716           -          -
Fee income                             1,978      1,488           -          -
Intra-group income                         -          -         876        599
Profit on disposal of fixed assets        41         11           -          -
Other                                      -        293           -        293
-------------------------            ---------  ---------  ----------  ---------
                                       5,259      5,820         876        892
-------------------------            ---------  ---------  ----------  ---------
Exceptional items
Compensation for early termination
of Chelsea                                 -     24,410           -          -
contract
Reduction in accrual for Office of
Fair                                       -      1,305           -          -
Trading fine                         ---------  ---------  ----------  ---------
-------------------------
Total other operating income           5,259     31,535         876        892
-------------------------            ---------  ---------  ----------  ---------

Rental income is in respect of money received for the leasing of unused
warehouse space. The lease ended in January 2006. Commissions income relates to
amounts earned for arranging stock purchases with suppliers, on behalf of
customers. Fee income includes franchise fees and league fees received in
relation to soccer league management in the United States.

5. Finance costs
                                                     Group               Company
                                         2006       2005       2006       2005
                                        £'000      £'000      £'000      £'000
-----------------------             ----------  ---------  ---------  ---------
Bank loans and overdrafts               1,301      1,633          -          -
Interest on finance lease assets           10         24          -          -
Interest on delayed payment of OFT          -        469          -          -
fine
Other interest payable                    233         61          -          -
Intra-group interest                        -          -          -        177
Finance costs amortised                   218        218          -          -
-----------------------              ----------  ---------  ---------  ---------
                                        1,762      2,405          -        177
-----------------------              ----------  ---------  ---------  ---------

6. Finance income
                                              Group                     Company
                               2006          2005          2006          2005
                              £'000         £'000         £'000         £'000
 ------------------------  ----------     ---------     ---------     ---------
Bank interest                    65            75             -             -
Intra-group interest              -             -           216           469
Other                            36            51             -             -
------------------------   ----------     ---------     ---------     ---------
                                101           126           216           469
 ------------------------  ----------     ---------     ---------     ---------

7. Exceptional items
                                                     Group               Company
                                         2006       2005       2006       2005
                                        £'000      £'000      £'000      £'000
--------------------------             --------  ---------  ---------  ---------
Exceptional items included under cost
of sales are:
Sponsorship of National Football            -     12,000          -          -
Centre
Termination and renewal of Football
Association contract                        -      4,854          -          -
--------------------------             --------  ---------  ---------  ---------
                                            -     16,854          -          -
--------------------------             --------  ---------  ---------  ---------
Exceptional items included under
other income are:
Compensation for loss of Chelsea            -     24,410          -          -
contract
Reduction in Office of Fair Trading
("OFT")                                     -      1,305          -          -
fine accrual                           --------  ---------  ---------  ---------
--------------------------
                                            -     25,715          -          -
--------------------------             --------  ---------  ---------  ---------
Exceptional items included under
finance costs are:                     --------  ---------  ---------  ---------
--------------------------
Interest on delayed payment of OFT          -        469          -          -
fine                                   --------  ---------  ---------  ---------
--------------------------

The contract with the FA, which was entered into in 2002, was terminated and
renewed for a further four years to July 2014 in December 2005. There was a
termination payment of £3m and other non-cash costs of £1.9m required to wind up
the previous agreements. In addition, the Company entered into a £12m
sponsorship contract with the National Football Centre, payable in intervals to
June 2007 and of which £2m was paid by December 2006. The full cost of this
sponsorship contract was charged in 2005 in line with generally accepted
accounting practice, and so this combined with the termination arrangements to
produce a net exceptional charge of £16.9m.

The tax effect of the exceptional items in 2005 was a charge for the year of
£2.3m.

8. Taxation
                                                     Group               Company
                                          2006      2005       2006       2005
                                         £'000     £'000      £'000      £'000
Analysis of charge for the year all
relating                                 6,956     8,501         26        132
to continuing operations
Current tax
UK Corporation tax
Current tax on income at 30% (2005:
30%)
Adjustments in respect of prior years   (1,499)        -          -          -
---------------------------             --------  --------  ---------  ---------
                                         5,457     8,501         26        132
---------------------------             --------  --------  ---------  ---------
Foreign tax                              1,309     1,156          -          -
Corporation taxes
---------------------------             --------  --------  ---------  ---------
Total current tax charge                 6,766     9,657         26        132
Deferred tax                               344        36          -          -
Origination and reversal of timing
differences
Timing differences on share incentive     (264)     (250)         -          -
schemes                                 --------  --------  ---------  ---------
---------------------------
Tax charge on profit on ordinary         6,846     9,443         26        132
activities                              --------  --------  ---------  ---------
---------------------------

The tax rate applicable on profit from ordinary activities varied from the
standard rate of corporation tax in the UK of 30%. The differences are explained
below:

                                                     Group               Company
                                          2006      2005       2006       2005
                                         £'000     £'000      £'000      £'000
---------------------------             --------  --------  ---------  ---------
Profit on ordinary activities before    26,614    31,397         85      5,440
tax                                     --------  --------  ---------  ---------
---------------------------
Profit on ordinary activities
multiplied by                            7,984     9,419         26      1,632
standard rate of corporation tax in
the UK of 30%
Effects of:                             (1,499)        -          -          -
Adjustments to tax in respect of prior
periods
Other timing differences                    10        36          -          -
Capital allowances                         245        48          -          -
Items not assessable for tax purposes:
Other potentially disallowable costs       216       191          -          -
Intra-group dividends                        -         -          -     (1,500)
Office of Fair Trading fine reduction        -      (251)         -          -
Current year losses unrecognised in        119         -          -          -
deferred tax
Excess foreign taxes suffered               25         -          -          -
Share of profits of associate             (255)        -          -          -
---------------------------             --------  --------  ---------  ---------
Tax charge on profit on ordinary         6,846     9,443         26        132
activities                              --------  --------  ---------  ---------
---------------------------

Analysis of tax movements taken to reserves:

                                                     Group               Company
                                          2006      2005       2006       2005
                                         £'000     £'000      £'000      £'000
---------------------------             --------  --------  ---------  ---------
Deferred tax on actuarial gains/
(losses) taken                             142      (733)         -          -
to reserves
Deferred tax on excess of market value
over                                      (353)        -          -          -
cost of share incentives                --------  --------  ---------  ---------
---------------------------

9. Dividends

Group and Company
                                                           2006           2005
                                                          £'000          £'000
------------------------                             -----------     ----------
Ordinary - Final 2004 paid: 2.9p per share                    -          4,191
Ordinary - Interim 2005 paid: 1.6p per share                  -          2,313
Ordinary - Final 2005 paid: 3.2p per share                4,625              -
Ordinary - Interim 2006 paid: 1.76p per share             2,544              -
------------------------                              -----------     ----------
                                                          7,169          6,504
------------------------                              -----------     ----------

The directors are recommending a dividend in respect of the year ended 31
December 2006 of 3.74p per share, subject to approval by the shareholders at the
AGM. The dividend will amount to £5,406,000 and will be paid on 25 May 2007 to
shareholders on the register on 27 April 2007.

10. Earnings per share

Earnings per share is calculated from the net profit attributable to equity
shareholders, divided by the weighted average number of shares in existence
during the year.

Adjusted earnings is profit after tax and minority interests before dividends,
adding back exceptional costs and deducting exceptional income.


Diluted earnings per share takes account of the potential number of shares that
may be issued under the SAYE and LTIP schemes, and the weighted average number
of such shares, being 3.7m (2005: 2.8m), is added to the shares in issue.

                                                              2006        2005
-------------------------                                -----------  ----------
Adjusted earnings per share (before exceptional items)        13.7p       10.9p
Adjusted diluted earnings per share                           13.3p       10.7p
-------------------------                                -----------  ----------

Reconciliation of adjusted earnings

                                                     2006                                2005
 -----------------------  --------       -------    -------    -------       -------    -------
                          Earnings  Weighted av.  Per-share   Earnings  Weighted av.  Per-share
                                   no. of shares                       no. of shares
                                      (millions)                          (millions)
                           £'000                     amount    £'000                     amount
                                                    (pence)                             (pence)
 -----------------------  --------       -------    -------    -------       -------    -------
Basic earnings
undiluted                 19,743         144.5       13.7     21,900         144.5       15.2
Basic earnings
diluted                   19,743         148.3       13.3     21,900         147.3       14.9
Adjustments after
attributable taxation:
Chelsea
exceptional income             -                             (24,410)
Tax on Chelsea income          -                               7,323
Exceptional interest
on OFT fine*                   -                                 469
Reduction in OFT fine
accrual*                       -                              (1,305)
England and NFC contract
exceptional costs              -                              16,854
Tax on England and NFC
contract exceptional
costs                          -                              (5,056)
-----------------------   --------       -------    -------    -------       -------    -------
Adjusted
earnings - undiluted       19,743         144.5       13.7     15,775         144.5       10.9
-----------------------   --------       -------    -------    -------       -------    -------
Adjusted
earnings - diluted         19,743         148.3       13.3     15,775         147.3       10.7
-----------------------   --------       -------    -------    -------       -------    -------

* Office of Fair Trading fine is non-deductible for taxation purposes.

11. Tangible fixed assets - Group
                                                          2006            2005
                                                         £'000           £'000
-------------------------------------                 ----------      ----------
Plant and Equipment                                      7,177           6,346
Cost
At 1 January
Additions                                                  743           1,165
Disposals                                                 (670)           (370)
Exchange differences                                       (66)             36
-------------------------------------                 ----------      ----------
At 31 December                                           7,184           7,177
-------------------------------------                 ----------      ----------
Depreciation                                             4,515           4,053
At 1 January
Charge for the year                                        847             794
Disposals                                                 (652)           (358)
Exchange differences                                       (43)             26
-------------------------------------                 ----------      ----------
At 31 December                                           4,667           4,515
-------------------------------------                 ----------      ----------
-------------------------------------                 ----------      ----------
Net Book Value                                           2,517           2,662
At 31 December
-------------------------------------                 ----------      ----------

The cost of fixed assets above includes assets held under finance leases
amounting to £364,000 (2005: £1,316,000) and their net book value as at 31
December 2006 amounted to £176,000 (2005: £377,000).

12. Goodwill - Group
                                                           2006           2005
                                                          £'000          £'000
--------------------------------------                  ---------      ---------
Cost                                                     96,533         94,116
At 1 January
Addition                                                    282          2,417
--------------------------------------                  ---------      ---------
At 31 December                                           96,815         96,533
--------------------------------------                  ---------      ---------
Amortisation
--------------------------------------                  ---------      ---------
At 1 January 2006 and 31 December 2006                   23,669         23,669
--------------------------------------                  ---------      ---------
--------------------------------------                  ---------      ---------
Net book value                                           73,147         72,864
At 31 December
--------------------------------------                  ---------      ---------

The addition is in respect of the purchase of a further 32% shareholding in
USISL Inc. (increasing the stake to 96%), for which the Group paid £459,000
(2005: £29,000) and the goodwill of £282,000 (2005: £18,000) represents the
excess of the payment over the share of net assets acquired. There was no
difference between the fair value and book value of the assets of USISL Inc. at
the date of acquisition.

The goodwill is reviewed annually for impairment on the basis of expected future
cash flows of the Group over 10 years discounted at the Company's cost of
capital rate.

13. Intangible fixed assets - Group

                               Computer     Brands     Customer lists    Total
                               software
                                £'000      £'000              £'000      £'000
 ---------------------------  ---------    -------          ---------    -------
Cost                            2,270      2,200              2,200      6,670
At 1 January
Addition                           45          -                  -         45
---------------------------   ---------    -------          ---------    -------
At 31 December                  2,315      2,200              2,200      6,715
---------------------------   ---------    -------          ---------    -------
Amortisation                    1,050         28                 55      1,133
At 1 January
Charge for year                   520        110                220        850
---------------------------   ---------    -------          ---------    -------
At 31 December                  1,570        138                275      1,983
---------------------------   ---------    -------          ---------    -------
 ---------------------------  ---------    -------          ---------    -------
Net book value                    745      2,062              1,925      4,732
At 31 December 2006
---------------------------   ---------    -------          ---------    -------
At 31 December 2005             1,220      2,172              2,145      5,537
---------------------------   ---------    -------          ---------    -------

The Directors have used a period of 10 years for the expected useful life of
customer list intangible assets and 20 years for brand related intangible
assets.

14. Investments accounted for using equity method

                                                           2006           2005
                                                          £'000          £'000
--------------------------------------                  ---------      ---------
Cost                                                        269              -
At 1 January
Share of profits of associate                               849            269
--------------------------------------                  ---------      ---------
At 31 December                                            1,118            269
--------------------------------------                  ---------      ---------

In 2005 Umbro International Limited acquired a 25% interest in the A and B
ordinary shares of Team and Sports Limited, a company incorporated in Hong Kong
with interests in Hong Kong, China and Taiwan. The interest has been treated as
an associate on the basis that the Umbro Group only has significant influence
and not control of the financial and operating policies of the company. There
were no net assets acquired under the acquisition agreement, and the total
purchase consideration and costs of £6,799,000 represent the intangible assets
and goodwill (see note 12) relating to an established business in mainland China
and Hong Kong.

The purchase consideration is payable as follows: £2.8m on acquisition (30
September 2005), £1.3m on 31 July 2006, and the balance of approximately £2.7m
over the period January 2006 to January 2011. The latter payments are based on
1.5% of the sales of Team and Sports Limited, and are the best estimates based
on the likely future sales.

The following represents the gross financial information of Team and Sports
Limited at 31 December 2006, unadjusted for intra-group transactions and group
accounting policies:

                                                        2006              2005
                                                       US$'000           US$'000
---------------------------                           -------           -------
Assets                                                51,733            50,198
Liabilities                                          (39,053)          (44,803)
Net profit for the year                                6,500             5,205
---------------------------                            -------           -------

15. Investments in subsidiaries - Company
                                                                         £'000
------------------------------                                      ------------
Net book value and cost at 31 December 2005 and 2006                   108,779
------------------------------                                      ------------

16. Deferred taxation - Group

Deferred income tax assets

                      Depreciation in  Pension deficit      Other Share incentive    Total
                           advance of                                     schemes
                              capital
                           allowances
                              £'000            £'000      £'000           £'000      £'000
 --------------------       ---------        ---------  ---------        --------  ---------
At 1 January 2005               260            1,658        196               -      2,114
Credit to reserves                -              733          -               -        733
Income statement
(charge)/credit                  39                -        (75)            250        214
--------------------        ---------        ---------  ---------        --------  ---------
At 31 December
2005                            299            2,391        121             250      3,061
--------------------        ---------        ---------  ---------        --------  ---------
At 1 January 2006               299            2,391        121             250      3,061
Credit to reserves                -             (142)         -             353        211
Income statement
(charge)/credit                (178)             (89)       (77)            264        (80)
--------------------        ---------        ---------  ---------        --------  ---------
At 31 December 200              121            2,160         44             867      3,192
--------------------       ---------        ---------  ---------        --------  ---------

17. Inventories

                                               Group               Company
                                         -------     --------  -------  --------
                                          2006         2005     2006      2005
                                         £'000        £'000    £'000     £'000
--------------------------------         -------     --------  -------  --------
Finished goods                          11,931        7,259        -         -
--------------------------------         -------     --------  -------  --------

The net replacement value of inventories is not materially different from that
stated in the balance sheet.

18. Current assets - Trade and other receivables

                                                 Group             Company
                                            -------  --------  -------  --------
                                             2006      2005     2006      2005
                                            £'000     £'000    £'000     £'000
                                           -------  --------  -------  --------
Trade debtors                              20,388    24,843        -         -
Less: provision for impairment               (229)     (150)       -         -
--------------------------------            -------  --------  -------  --------
Trade debtors - net                        20,159    24,693        -         -
Group debtors: amounts owed by subsidiary
undertakings                                    -         -      120     6,345
Other debtors                                  39    25,169        -         -
Prepayments and accrued income              8,389     6,981        -         -
--------------------------------            -------  --------  -------  --------
                                           28,587    56,843      120     6,345
--------------------------------           -------  --------  -------  --------

The "other debtors" balance in 2005 included £24,500,000 in respect of
compensation for early termination of the Chelsea contract.

Concentration of credit risk in relation to trade receivables is limited due to
the Group's customer base being large and unrelated. As a result management
consider no further credit risk provision is required in excess of normal
provisions for doubtful debts.

19. Current liabilities - Trade and other payables

                                              Group               Company
    
                                         -------    --------  -------  --------
                                          2006        2005     2006      2005
                                         £'000       £'000    £'000     £'000
--------------------------------         -------    --------  -------  --------
Trade creditors                         13,183      12,478        -         -
Other tax and social security              294         317        -         -
Other creditors                          1,850       2,743        -         -
Deferred income                              -       3,400        -         -
Accruals                                16,116      22,774        -         -
--------------------------------         -------    --------  -------  --------
                                        31,443      41,712        -         -
--------------------------------         -------    --------  -------  --------

20. Financial liabilities

                                                   Group            Company
-------------------------------              -------  -------  -------  -------
                                               2006     2005     2006     2005
                                              £'000    £'000    £'000    £'000
 -------------------------------             -------  -------  -------  -------
Current liabilities:
Bank borrowings (secured, all £ sterling):
Overdraft facility                                -    8,872        -        -
Term loan - amounts payable within one year       -    2,510        -        -
Less: issue costs not yet amortised               -     (218)       -        -
Forward foreign exchange contracts            3,010        -        -        -
Obligations under finance leases                 41      152        -        -
-------------------------------               -------  -------  -------  -------
                                              3,051   11,316        -        -
-------------------------------               -------  -------  -------  -------
Non-current liabilities:
Bank borrowings (secured, all £ sterling):
Term loan - amounts payable in more than one
year                                              -    6,813        -        -
Less: issue costs not yet amortised               -     (436)       -        -
Obligations under finance leases                 27       34        -        -
-------------------------------               -------  -------  -------  -------
                                                 27    6,411        -        -
-------------------------------               -------  -------  -------  -------

At 31 December 2006, the Company had issued fixed and floating charges over its
assets and those of its subsidiaries in respect of the Group United Kingdom bank
borrowings of £nil at that date (2005: £17,541,000).

There is also a maximum £50m overdraft and revolving credit facility which
expires on 28 April 2009 and a £6m guarantee facility with an expiry date of 31
December 2007.

The issue costs of £654,000 at 31 December 2005 were written off in 2006 when
the term loan was repaid.

21. Other non-current liabilities

                                                Group               Company
-------------------------------            -------     -------  -------  -------
                                            2006        2005     2006     2005
                                           £'000       £'000    £'000    £'000
-------------------------------            -------     -------  -------  -------
Other creditors and accruals               1,910       6,266        -        -
Deferred income                                -         896        -        -
-------------------------------            -------     -------  -------  -------
                                           1,910       7,162        -        -
-------------------------------            -------     -------  -------  -------

22. Financial instruments

Current assets - Financial assets               Group              Company
-------------------------------
                                           -------    -------  -------  -------
                                            2006       2005     2006     2005
                                           £'000      £'000    £'000    £'000
-------------------------------            -------    -------  -------  -------
Forward foreign exchange contracts             -      2,346        -        -
-------------------------------            -------    -------  -------  -------

23. Share capital (Group and Company)

----------------------------        --------    -------      --------    -------
                                      Number     2006          Number     2005
                                      '000      £'000          '000      £'000
----------------------------        --------    -------      --------    -------
Authorised:
Ordinary shares of 1p each      10,000,410    100,004    10,000,410    100,004
Allotted, called up and fully
paid:
Ordinary shares of 1p each         144,547      1,445       144,536      1,445
----------------------------        --------    -------      --------    -------

During the year 11,769 Ordinary shares were issued under the SAYE scheme to
qualifying employees.

24. Consolidated Statement of Changes in Equity - Group

                               Share        Share             Hedge     Exchange       Retained    Minority      Total 
                               capital      premium          reserve   differences      losses    interest       equity
                              £'000          £'000          £'000        £'000            £'000     £'000         £'000
 ---------------------         ------        -------         ------     --------         -------    ------       -------
At 1 January 2005               1,445         89,216              -          (88)         (34,101)      127       56,599
Adjustment on
adoption of
IAS 32 & 39                       -              -         (2,597)           -                -         -        (2,597)
Net fair value gains              -              -          4,931            -                -         -         4,931
Profit for financial
period                            -              -              -            -           21,900        54        21,954
Share options
- value of employee
services                          -              -              -            -              597         -           597
Actuarial losses on
pension fund                      -              -              -            -           (2,442)        -        (2,442)
Deferred tax on pension
deficit movement                  -              -              -            -              733         -           733
Other recognised gains /
(losses)                          -              -              -          (10)               -        13             3
Ordinary dividends (note 9)       -              -              -            -           (6,504)        -        (6,504)
Acquisition of minority
interest                          -              -              -            -                -       (11)          (11)
---------------------          ------        -------         ------     --------          -------    ------      -------
At 31 December 2005             1,445         89,216          2,334          (98)         (19,817)      183       73,263
---------------------          ------        -------         ------     --------          -------    ------      -------

At 1 January 2006       1,445    89,216     2,334      (98)   (19,817)    183    73,263
Net fair value losses      -         -    (5,292)       -          -       -    (5,292)
Profit for financial
period                      -         -         -        -     19,743      25    19,768
Shares issued               -         9         -        -          -       -         9
Share options -
value of employee
services                    -         -         -        -        876       -       876
Deferred tax on
excess of market
value over costs of
share incentives            -         -         -        -        353       -       353
Actuarial gains on
pension fund                -         -         -        -        471       -       471
Deferred tax on
pension deficit
movement                    -         -         -        -       (142)      -      (142)
Other recognised
gains / (losses)            -         -         -       11          -      (6)        5
Ordinary dividends
(note 9)                    -         -         -        -     (7,169)      -    (7,169)
Acquisition of
minority interest           -         -         -        -          -    (176)     (176)
----------------------   ------   -------    ------  -------    -------  ------   -------
At 31 December 2006     1,445    89,225    (2,958)     (87)    (5,685)     26    81,966
----------------------   ------   -------    ------  -------    -------  ------   -------

25. Cash generated from operations

Reconciliation of net profit to net cash flow from operations

                                                       Group             Company
                                           2006       2005      2006      2005
                                          £'000      £'000     £'000     £'000
----------------------------            --------   --------  --------  --------
Net profit                               19,768     21,954        59     5,308
Adjustments for:
Tax                                       6,846      9,443        26       132
Depreciation                                847        820         -         -
Amortisation of intangible assets           850        627         -         -
Interest income                            (101)      (126)     (216)     (469)
Interest expense                          1,762      2,405         -       177
Write off of unamortised bank fees upon
term loan repayment                         436          -         -         -
Amortisation of share incentive schemes     876        597       876       597
Transfer from hedge reserve                  64        (12)        -         -
Profit on disposal of fixed assets          (41)       (11)        -         -
Share of associate's profit                (849)      (269)        -         -
Changes in working capital (excluding
the effects of acquisition and exchange
differences on consolidation)
Increase in inventory                    (4,672)      (526)        -         -
Decrease / (increase) in receivables*    28,256    (31,459)    6,225       599
(Decrease) / increase in payables       (14,233)     6,769         -         -
----------------------------             --------   --------  --------  --------
Net cash inflow from operations          39,809     10,212     6,970     6,344
----------------------------             --------   --------  --------  --------

* Included in the receivables movement is £24.5m for compensation received from
Chelsea FC for contract termination.

26.      Post balance sheet events

Subsequent to the year end, the Group acquired a further 15% equity stake in its
Chinese licensee, Team and Sports Limited, for US$16.5m, taking its total stake
to 40%.

Five year record and key statistics

-----------------------         --------  --------  --------  --------  --------
                                  2006      2005      2004      2003      2002
                                    IFRS      IFRS      IFRS   UK GAAP   UK GAAP
                                                                        Restated
-----------------------        --------  --------  --------  --------  --------
Profit and Loss
Total wholesale equivalent       409.4     351.9     356.3     310.2     288.0
sales (£m)
Turnover (£m)                    149.5     123.0     140.4     127.4     127.0
Profit before tax, preference
dividends,
amortisation of goodwill and      26.6      23.0      21.8      16.0      12.7
exceptional
items (£m)
Profit/(loss) before tax (£m)     26.6      31.4      (7.1)      4.8       6.5
Profit/(loss) after tax (£m)      19.8      22.0     (11.8)      2.0       1.8

Balance Sheet
Net debt (£m)                        -      16.1       7.1      23.2      40.0
Net cash (£m)                      4.7         -         -         -         -
Net assets (£m)                   82.0      73.3      56.6      40.2      38.3

Cash Flow
Net cash inflow from operating
activities (£m)                   39.8      10.2      21.4      21.7      16.1

Ordinary Shares
Adjusted earnings per share       13.7      10.9      11.9       9.1       5.6
(pence)
Basic earnings per share          13.7      15.2      13.6       2.1       2.0
(pence)
Final dividends proposed per
share                             3.74       3.2       2.9         -         -
(pence)
Interim dividends paid (pence)    1.76       1.6         -         -         -
Final proposed & interim paid
dividend                           2.5       3.2       3.6         -         -
cover (times)
Shares in issue at 31 December   144.5     144.5     144.5      94.4      94.4
(m)
Share price during year
(pence)                          170.8     163.0     117.5         -         -
High
Low                              127.5      98.0      90.5         -         -
Share price at 31 December       134.0     163.0      98.0         -         -
(pence)
Market capitalisation (£m) at
31                               193.7     235.6     141.6         -         -
December

Average employees (number)         269       242       198       193       185
-----------------------         --------  --------  --------  --------  --------

Notes

1.  "Total wholesale equivalent" sales ("TWE") is the sum of Umbro's buy/
sell turnover and the wholesale equivalent value of its licensees' sales upon
which Umbro receives a royalty. Turnover is the sum of buy/sell sales and
licensee royalty income.

2.   Amortisation of goodwill is added back above in 2003 and 2002 in the UK
GAAP accounts for the purpose of comparison. The UK GAAP amortisation of
goodwill on acquisition ceased under IFRS in 2004.

3.   Net debt represents the net total of cash, loans, overdrafts and
finance leases.

4.   The Company was listed on the London Stock Exchange on 3 June 2004, and
before that date, the share capital comprised "A" and "B" ordinary shares and
preference shares. For comparative purposes, the ordinary share equivalent above
for 2002 to 2003 is 94.4m, being the share capital immediately prior to
flotation taking account of the restructuring of the share capital and
conversion of 33.2m preference shares into ordinary shares.

5.   Adjusted earnings is profit after tax and minority interests before
dividends, adding back exceptional costs and deducting exceptional income.




                      This information is provided by RNS
            The company news service from the London Stock Exchange