Unfairpak Forum - How Farepak Stole Christmas

On Friday 13th Oct 2006 - Farepak Hampers went into administration. Over 100,000 customers were told that no food hampers or vouchers or other goods will be supplied this Christmas as promised, and no refunds! Share your thoughts here...
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PostPosted: Wed Dec 13, 2006 8:55 pm 
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Kleeneze Annual Report 2005 | 1
Turnover from continuing operations
up 10.7% to £175.9 million
(2004: £158.9 million)
Total dividend for the year up 10% to
3.30 pence (2004: 3.0 pence)
Profit before tax of £5.9 million
(2004: loss £2.0 million)
Basic earnings per share of 10.21 pence
(2004: loss 5.76 pence per share) and
normalised basic earnings per share
of 10.17 pence (2004: 12.85 pence)

2 | Kleeneze Annual Report 2005
Kleeneze Group at a Glance
Kleeneze Europe is a leading network
marketing company with 15,500
self-employed distributors operating
in the UK, Ireland and, most recently,
the Netherlands. Kleeneze Europe’s
success is based on the combination
of its strong retail proposition, the
network opportunity and the operational
infrastructure which the business
continues to build on.

Farepak is a Christmas savings club
business where customers place orders
for a wide range of products including
shopping vouchers, Christmas hampers
and other gifts for which they pay in weekly
instalments and then have delivered
to their door in time for Christmas.
Kleeneze Annual Report 2005 | 3
IWOOT Kitbag eeZee tv
Kitbag is one of Europe’s largest online
sports retailers, delivering a broad range
of sportswear products from the leading
sports brands to an audience of
customers worldwide. Kitbag has the
exclusive rights to operate the official
website stores for FC Barcelona, Reebok,
Manchester United, Chelsea Football Club,
UEFA.com, Puma and Nike Football.
active customers
active customers
products at time of launch

4 | Kleeneze Annual Report 2005
During the year ended 28th April 2005
we have significantly re-shaped the Group
to become a home shopping specialist,
selling across three channels: Catalogue
Home Shopping, Internet Retailing and
Television Shopping, using our core skills
of consumer marketing, product sourcing
and next day delivery. We have achieved
this through the launch of Kleeneze
Europe in the Netherlands, the
acquisitions of I Want One of Those.com
Limited (“IWOOT”) and Kitbag Sports
Limited (“Kitbag”), and the launch of
eeZee tv LLP (“eeZee tv”), our joint
venture television shopping channel
broadcasting on Sky Channel 659.
To reflect the re-shaping of the
Group into a home shopping specialist,
we are recommending to shareholders
that Kleeneze plc be re-named European
Home Retail plc effective from the
Annual General Meeting (“AGM”)
on 28th September 2005.
The first step in the creation of the
newly focused Group was the September
2004 launch of Kleeneze Europe in the
Netherlands. This is our first operation
in continental Europe and trading has
begun well with 2,000 distributors at
the end of April. The growth in distributor
numbers in the Netherlands was
accompanied by an increase in distributor
numbers in the UK and Ireland where the
downward trend over the last 18 months
was reversed in the second half of the
year such that the number of active
distributors at the end of April was
13,524 (2004: 13,397).
On 25th October 2004 we acquired IWOOT
for £6.0 million in cash to be paid over a
three year period plus performance related
deferred consideration of up to £4.65 million,
payable over three years. IWOOT is the
number one visited site in its sector
(source: Hitwise), selling gifts, gadgets and
lifestyle accessories on its award-winning
website http://www.iwantoneofthose.com.
We commenced live broadcasting of eeZee
tv on 1st March 2005. eeZee tv provides
both entry into the fast-growing television
shopping market and another route to
source and develop new products for the
Kleeneze network.
On 1st April 2005 we acquired Kitbag
for £7.2 million in cash plus 1.3 million
shares in Kleeneze plc. Kitbag is a leading
internet retailer of sports and fitness
merchandise through http://www.kitbag.com.
Kitbag also has long term contracts with
leading football clubs for the provision of
their online and mail order sales in the UK
and certain other territories. The football
clubs include Manchester United, Chelsea
and Barcelona.
These acquisitions enable us to develop
a range of products that can be sold
across all of our distribution channels.
This completes the virtuous circle of a
product’s life beginning on the internet,
migrating to television shopping, then
retailed through Kleeneze’s catalogues.
Against the background of a significant
fall in hamper volumes at Farepak in
April 2005 we took the decision to close
production of hampers in Swindon and
agreed a three year outsourcing contract.
We have been working hard to reduce
the fixed cost base of Farepak for the
last two years. This action marks a major
step forward in this process, freeing
management to focus on the marketing
of both the savings club business
and our nascent third party contract
voucher business.
Results for the year
Turnover from continuing operations for
the year was up 10.7% to £175.9 million
(2004: £158.9 million) including
£5.3 million from acquisitions during
the year. Excluding acquisitions, turnover
was up 7.3%.
Operating profit from existing operations
before goodwill amortisation and exceptional
items was £7.7 million (2004: £7.9 million)
excluding losses of £0.6 million from
acquisitions during the year.
Profit before tax from continuing
operations before goodwill amortisation
and exceptional items fell to £7.0 million
(2004: £8.2 million), principally due to
the start-up losses from our new joint
venture television shopping business,
eeZee tv, where our share of losses was
£0.8 million (2004: nil) in the first six
months of trading.
Profit after tax was £4.8 million
(2004: loss £2.7 million). Profits of
£1.4 million were generated on the
disposal of shares in Premier Direct
Group plc and a surplus property.
These were offset by £0.5 million incurred
in closing production at Farepak;
£0.3 million of goodwill amortisation;
£0.8 million of start-up costs in the
Netherlands and Kleeneze TV; £0.3 million
of restructuring costs across the Group
following the acquisitions made during
the year and other costs of £0.5 million.
There was also a tax credit of £1.1 million.
Basic earnings per Ordinary share were
10.21 pence (2004: loss 5.76 pence).
The Group generated cash from
continuing operations of £3.2 million
(2004: £6.2 million), after the cash flow
relating to exceptional costs. Following
expenditure of £13.1 million on
acquisitions during the year, including
the investment in eeZee tv, the Group
had a cash outflow before financing of
£9.3 million (2004: inflow £4.8 million).
Chairman’s Statement
Kleeneze Annual Report 2005 | 5
During the year we significantly re-shaped the
Group to become a home shopping specialist
and we are recommending that the Group
be re-named European Home Retail plc in
September 2005.
Net debt at 28th April 2005 rose to
£27.0 million (2004: £11.2 million)
including £5.7 million of discounted loan
notes issued to the vendors of IWOOT.
At 28th April 2005 the Group’s net
liabilities decreased to £7.5 million
(2004: £12.8 million).
The Board is recommending a final
dividend of 2.23 pence per Ordinary share
(2004: 2.0 pence), which together with the
interim dividend of 1.07 pence per Ordinary
share (2004: 1.0 pence) will result in a
dividend of 3.30 pence per Ordinary share
for the year as a whole (2004: 3.0 pence),
an increase of 10%.
The dividend is payable on 3rd October
2005 to shareholders on the register
on 15th July 2005.
The Board
Chris Hulland will be leaving the Group and
his date of departure will be determined
upon the appointment of his successor.
He has worked for the Group in his current
capacity for 17 years and we wish him well
for the future.
Stephen Roberts has decided not to seek
re-election and will, therefore, step down at
the close of the AGM on 28th September
2005. Stephen has been a non-executive
director for 20 years and we would like to
take this opportunity to thank him for his
very valuable contribution over that period.
Michael Johns has been invited to
join the Board on 28th September
2005 as a non-executive director
representing the Johnson family interests.
He is senior partner at Kirkpatrick
& Lockhart Nicholson Graham LLP
and is also a non-executive director
of Merchant Retail Group plc. Michael,
aged 61, qualified as a lawyer in 1968
and specialises in corporate finance.
The Board proposes Michael Johns for
election at the AGM.
Nicholas Gilodi-Johnson retires by rotation
and, being eligible, is standing for re-election.
We appreciate that our principal assets are
our people and I would like to record my
thanks to all of them for their continued
support and hard work during the last year.
I would also like to take this opportunity
to welcome to the Group everyone who
works for IWOOT, Kitbag and eeZee tv and
thank them for their contribution in their
first months as part of the Group.
Resolutions at the AGM
We are proposing three Resolutions
at the AGM as Special Business. I am
summarising them below:
Resolution 9 proposes that the name of the
Company be changed from Kleeneze plc to
European Home Retail plc in order to reflect
the changed nature of the Group’s activities.
Resolution 10 proposes that the Articles
of Association be amended to continue the
limit of £60 million on the Group’s borrowing
powers up to 30th April 2008. This proposal
reflects the revised financial structure of the
Group following the acquisitions that have
been made this year. The Resolution also
proposes that the limit of £250,000 on
directors’ fees be increased to £350,000.
Resolution 11 proposes that the directors
be authorised to make an offer to
purchase the issued Preference Shares
at their nominal value of £1 per Preference
Share. This follows representation to the
Company by certain of the holders wishing
to sell their shares.
The return to growth at Kleeneze Europe
has been driven by a combination of
increased distributor numbers and a
further increase in average sales per
retailing distributor. The acquisitions
of IWOOT and Kitbag together with the
launch of eeZee tv will improve our ability
to source a wider range of new products
for our catalogues. This should help
to drive further increases in Kleeneze
Europe’s turnover. We will also build on
our successful launch in the Netherlands
with further expansion later this year.
The decision to outsource production
of hampers at Farepak further reduces
our fixed cost base, thereby significantly
de-risking the business in the future and
enabling us to focus more clearly on
strengthening our voucher business.
Both IWOOT and Kitbag should benefit
from the growth in internet shopping
and we are in a strong position to take
advantage of the growth in this sector.
At eeZee tv we are focusing on an
offering of daily specials, the “Big eeZee”,
to increase the number of viewers.
We believe that the new shape of the
Group will enable us to grow more quickly
and take advantage of the increase in the
Internet Retailing and Television Shopping
markets. Our priority in the period ahead is
to realise the potential of the acquisitions
made last year and to build on the good
start to this new financial year.
Sir Clive Thompson
10th August 2005
“I was very impressed
with the range of
great value, practical
products offered in the
Kleeneze catalogue.”
Karina Beesley
Distributor and Customer, Kleeneze
Product sourcing:
Kleeneze Europe sources
a varied product range from
around the globe. The buying
and merchandising teams
are particularly focused at
developing direct supply from
high quality Far East sources.
Sales channel:
Kleeneze Europe produces
a range of catalogues that
the distributor places with the
customer. Our catalogues
are distributed across the UK,
Republic of Ireland and
the Netherlands.
The customer places their
order with the distributor
who in turn places their order
with Kleeneze Europe. Over
97% of distributor orders are
placed via the internet.
Distribution Centre
The order is picked and
packed from Kleeneze
Europe’s new fulfilment centre
in Bristol and then dispatched
to the distributor within
24 hours.
Following day delivery:
The distributor receives the
order and then delivers to
the customer. That customer
order now carries the
additional reassurance
of the newly awarded Office
of Fair Trading code.
Kleeneze Annual Report 2005 | 7
Chief Executive’s Review
In order to reflect the re-shaping of the
Group into a home shopping specialist
selling through three channels: Catalogue
Home Shopping, Internet Retailing and
Television Shopping, I am setting out
my Chief Executive’s Review for these
divisions as follows:
Catalogue Home Shopping
The Catalogue Home Shopping division
comprises Kleeneze Europe and Farepak.
Kleeneze Europe
Kleeneze Europe provides good value,
everyday products through a range of
catalogues delivered direct to the home
by self-employed distributors covering
the UK, Ireland and the Netherlands.
Turnover at Kleeneze Europe grew 7.6%
to £88.9 million (2004: £82.6 million)
and the UK and Ireland grew by 6.4%
to £87.9 million (2004: £82.6 million).
Operating profit before exceptional
items was up 12.1% to £7.4 million
(2004: £6.6 million).
The number of distributors at the year
end in the UK and Ireland rose slightly
to 13,524 (2004: 13,397) as we reversed
the downward trend seen over the last
18 months. The effort that we have put into
improving the retention rates of distributors
has started to have a positive effect on
the distributor base. These efforts are
continuing into the new year as we are
providing more training and support.
In October 2004 we successfully launched
Kleeneze Europe in the Netherlands and
at the year end we had 2,000 distributors.
The catalogues and range of products have
been well received by the Dutch consumers
and we have already issued our third
catalogue, with two more planned for
the remainder of this year. Before the
exceptional charge of £0.5 million reflecting
the write-off of the start-up costs, the Dutch
business was profitable. This is an excellent
start to our new continental European
business and we are on track to expand
our operations further later this year.
In September 2004 we acquired the
assets and trademarks of Cabouchon for
£0.4 million in cash. We have re-launched
the brand with a new catalogue updating
the product range. This should re-stimulate
interest in the brand and drive recruitment
of consultants, which had slowed down
at the end of last year. Although the brand
and the network remain separate, we have
integrated the operations with those of
Kleeneze Europe.
During the year Kleeneze Europe and its
distributors raised £3,000 for Macmillan
Cancer Relief and £30,000 for the Tsunami
Disaster Committee Appeal.
We have improved the operating margin
at Kleeneze Europe to 8.3% (2004: 8.0%),
primarily due to the first full year of
efficiencies from the new distribution
centre. This improvement in margin was
achieved despite significant increases
in distribution costs, which prevented a
larger improvement. The efficiencies should
continue to increase and we expect to see
further improvements in margin in the
current year.
Kleeneze Europe continues to be a
dynamic business, which has grown
year on year despite poor retailing
conditions in the UK. We have launched
successfully in continental Europe and
the potential of the European market
is enormous. We have the capacity
to increase our turnover significantly
in the UK and intend to distribute from
continental Europe in the near future.
2005 has seen the Group make significant
progress towards becoming a leading European
home shopping specialist.
Kim Rawson
Deputy Managing Director
Kleeneze Europe
“This has been a particularly exciting
year for Kleeneze Europe, and we
are all very focused on maximising
the potential from our market expansion
in the UK, Republic of Ireland and
the Netherlands. Our distributors remain
key to that development.”
people attended our training conferences
during the year
8 | Kleeneze Annual Report 2005
Chief Executive’s Review continued
Farepak sells Christmas hampers, gifts
and shopping vouchers on a monthly
instalment basis through catalogues
distributed by independent agents across
the UK. Farepak operates two brands,
Farepak and Home Farm, which is 60%
owned by Findel plc.
Turnover at Farepak grew by 7.1% to
£81.7 million (2004: £76.3 million) but
operating profit before goodwill amortisation
and exceptional items fell to £0.2 million
(2004: £1.3 million).
The year was very difficult for Farepak
as agent numbers fell 6% to 55,931
(2004: 59,429) and, more importantly,
the number of hampers sold, as opposed
to shopping vouchers, fell by 16%.
As a result of this decline, which has
accelerated in the current year, we have
closed the production of hampers at
Farepak and agreed a three-year contract
with FHSC Limited, another Christmas
hamper company, under which they will
produce all of our Christmas savings club
hampers. This will reduce our fixed costs
significantly and allow us to react more
flexibly to further declines in hamper
volumes. We had to make 34 people
redundant and these redundancies,
together with other one-off costs, have
resulted in the exceptional charges
of £0.5 million. We continue to examine
the way in which we operate to react
to the changes in the market place.
The ongoing decline in hamper volumes
has resulted in shopping vouchers now
representing 80% (2004: 76%) of total
turnover. This is a trend that has been seen
over the last five years and will continue
in the future.
To take advantage of this trend we
launched a new voucher-only offering,
Freedom, which has the widest range of
shopping vouchers in the market place and
is aimed at a younger market than our
traditional Farepak customers. Although
it is early days, we are pleased with the
response rate in the first year. We have
also started a third party voucher operation
providing vouchers for businesses
and charities.
Farepak employees are still proud to be
supporting Macmillan Cancer Relief and to
date more than £16,500 has been raised
through Agent donations and staff activities.
Farepak was also pleased to give assistance
in the aftermath of the Tsunami disaster
at the end of 2004 and was able to offer
much needed packaging to local volunteer
aid organisations who were collecting
and dispatching vital supplies to the
stricken areas.
As we have said before, the Christmas
hamper market is in decline as customers
are changing the way in which they shop for
Christmas. Savings clubs are, however, still
popular as people become more concerned
about their own levels of personal debt, but
any future growth in the market as a whole
will only come from low margin shopping
voucher sales. The closure of hamper
production will significantly de-risk the
business in the future and allow us to
focus more on growing our shopping
voucher operation. 400,000
Farepak sorted and dispatched over 400,000
gift vouchers on 19th October 2004
Nicholas Gilodi-Johnson
Managing Director
“We have embraced the migration of sales
from hampers to lower margin shopping
vouchers by launching Freedom, a new
catalogue which offers our customers the
widest range of vouchers available in the
market. Freedom represents an exciting
growth opportunity for us to target a
younger audience new to the savings club
market, thereby enabling us to expand our
customer base.”
“The vouchers I saved
for helped me give
my family a Christmas
to remember.”
Joan Elliott
Agent and Customer, Farepak
Product sourcing:
Our product sourcing expertise
is combined with that of Findel
plc, our joint venture partner.
Farepak is responsible for the
sourcing of the hampers and
vouchers, while Findel sources
the non-food product ranges.
Sales channel:
Farepak’s Christmas catalogue
is published in September.
Agents then show the
catalogue to friends, family
and work colleagues and
collect orders from them.
Customers place orders with
their agents by the start of
the year, paying in 45 weekly
instalments, collected by their
agent. Our service centre
manages our relationship with
56,000 agents.
Distribution Centre
Hampers are sized, picked
and packed from August
through to December. Voucher
sorting and dispatch takes
place in a secure environment.
In order to deliver our hampers
to agents in peak condition,
Farepak uses the off season
capacity of various distribution
companies. Hampers and
other gifts are delivered to
agents who then deliver in
person to their customers.
“I can keep up to
date with the latest
gadgets from IWOOT
purchased using
my own computer.”
Sarah Willingham
Customer, IWOOT
Product sourcing:
The buying team source
products worldwide attending
trade fairs in the gifts,
homewares, consumer
electronics and toy sectors.
Sales channel:
IWOOT has several sales
channels to market: online
channels including email
newsletters and partnerships,
and offline channels including
a catalogue.
Customers can purchase
via the website (85%) or by
telephone to IWOOT’s 24 hour
call centre (15%). Our service
centre also handles incoming
query calls and emails.
Distribution Centre
IWOOT has its own fulfilment
centre in South London.
During 2005, the business
will move to larger premises
to provide increased capacity
for Christmas 2005.
Following day delivery:
All orders received by 5pm
are dispatched for next day
courier service or Royal Mail
First-Class which accounts for
70% of all orders processed.
Kleeneze Annual Report 2005 | 11
Internet Retailing
The Internet Retailing division comprises
the recent acquisitions, IWOOT and Kitbag.
IWOOT is the market leading internet
business selling a wide range of gifts
and gadgets from its award-winning
website http://www.iwantoneofthose.com.
Turnover for the six months post acquisition
was £4.7 million with an operating loss
before goodwill amortisation of £0.1 million.
We acquired IWOOT on 25th October
2004. Since acquisition we have
increased the product range on the
website by over 25% from 409 to 515
products at the end of April. The most
popular products over the last six months
have included Aurora Mood Clocks and
Phlat Balls, illustrating the wide range of
appeal of our products. IWOOT had its
most successful Christmas in its history
and during the busiest week the website
handled 324,000 visitors with a
conversion rate of 6%. We are building
on that success and turnover in the last
quarter of the year was up 80% on the
previous year, although the conversion
rate has fallen, as expected, from the
seasonal peak.
We are improving the ways in which
we communicate with our customers
and as a result we have increased
our customer database by 30%. A key
contributor to the increased database is
our high levels of service with guaranteed
next day delivery if products are ordered
before 5pm. We have also reviewed our
email campaigns with customers and
published a number of catalogues to
complement our online service. We are
improving the effectiveness of our website
adding increased functionality to the
site such as the addition of a reminder
service for birthdays.
During the year we have seen significant
growth within our corporate sales
establishing working partnerships with
a number of blue chip companies.
Established partnerships include
lastminute.com where we provide third
party products and fulfilment for their
website offering.
We have started the process of integrating
IWOOT into the Group and are increasing
the number of products sourced from
the Far East using Kleeneze Europe’s
expertise. There will be further integration
of back office services during the
remainder of this year.
The cross-fertilisation of products has
already started and we have sold various
IWOOT products both on eeZee tv, during a
dedicated IWOOT hour, and through Kleeneze
Europe. In June this year we launched our
first Gifts and Gadgets flyer for the Kleeneze
Europe network and the initial reaction was
positive. We are planning another Gifts and
Gadgets catalogue for Christmas. We have
also introduced various cross-promotional
activities with Kitbag.
IWOOT is one of the leading internet
retailers in the fastest growing area of the
UK’s retail sector. We will continue to invest
in IWOOT to drive the business forward
more quickly and ensure that we can
develop more products for use across
the Group.
over 8,000 orders dispatched on
13th December 2004
Chief Executive’s Review continued
David Booth
Managing Director
“IWOOT continues to develop into one of
the major brands on the internet high street
having gained the number one position for
gifts and flowers over the Christmas period.
The purchase by Kleeneze has now opened
up new and exciting opportunities which
will deliver significant growth and cost
savings in the current year.”
12 | Kleeneze Annual Report 2005
Kitbag is the leading internet sports and
leisure wear retailer. As well as selling all
major branded products and its own branded
product on its website http://www.kitbag.com,
Kitbag also runs online and catalogue
retailing for major football clubs.
Turnover for the one month post acquisition
was £0.5 million and there was a small
operating loss.
We acquired Kitbag on 1st April 2005.
We have already made progress with the
integration of the back office services
and the call centre is now being managed
and run by Kleeneze Europe. As well as
reducing costs this will also enhance
Kitbag’s offering as the Kleeneze Europe
service centre is open 24 hours a day,
seven days a week. This should increase
Kitbag’s sales both in the UK and, more
importantly, in the USA where we already
have a small presence.
We are working closely with our major
football club partners, Manchester United,
Chelsea and Barcelona, in preparation for
new kit launches later this year. We expect
to see the 2005/06 season kit launches
perform well. Chelsea have a new Home
kit launch in their Centenary year as
Premiership champions, Barcelona have
new Home and Away shirts as La Liga
winners and Manchester United have
a new Away shirt. Kitbag holds long term
contracts with all of its major football club
partners. We have recently entered into a
five-year contract with Celtic FC to provide
the official website store and all fulfilment
services. Kitbag produces catalogues as
well as a variety of other direct mail pieces
to support the online activity of each of the
clubs. A catalogue will shortly be produced
to support the Kitbag website.
We have also won an 18-month contract
with Nike to manage the e-commerce
activities on their football website,
http://www.nikefootball.com, across Europe.
This contract takes us beyond the next
football World Cup, which will be held
in Germany in the summer of 2006.
The site went live in July 2005 and it
has started well.
We have also established a series of
partnership programmes with leading
retailers including American Express Cards,
where we are the exclusive online sports
retailing partner, Lucozade and Gillette.
We have run several successful hours
on eeZee tv selling a variety of football
kits and memorabilia and are planning a
catalogue for the Kleeneze Europe network
in September this year.
As with IWOOT, high levels of service
are very important to Kitbag and we
also offer a guaranteed next day delivery
service for all products ordered before
3pm. We enhance the quality of the
service by offering unique bespoke services
such as shirt naming and numbering and
embroidering of football boots.
Kitbag is a well-respected internet
retailer operating in a growing part of
the sports apparel market. The win of the
pan-European Nike football website gives
us a presence in continental Europe which
opens up a new market. We will continue
to bid for major football club contracts and
work with the leading brands to build the
business across Europe.
Kitbag provides a next day delivery service
to 80% of US zip codes
Chief Executive’s Review continued
Chris Gibson
Managing Director
“Joining the Kleeneze Group has enabled
Kitbag to accelerate brand awareness
and sales, improve operational efficiencies
and reduce costs. In June 2005 we
launched the official Celtic FC Store
powered by Kitbag on an exclusive basis
followed by the Nike football website in
July. Preparation for the World Cup 2006
in Germany is already under way.”
“My children were
really pleased
with this season’s
Chelsea kit which
I purchased for
them online.”
Louise Jacobs
Customer, Kitbag
Product sourcing:
The football clubs operated
by Kitbag have contracts with
our key suppliers – Nike and
Umbro – for product. Kitbag
also has relationships with
Puma, Adidas and Reebok.
Sales channel:
Kitbag hosts the websites for
Chelsea, Manchester United,
Barcelona and, most recently,
Celtic. The websites are
supported by direct mailings
including a catalogue.
Customers are able to order
via the internet or through our
24-hour customer order line
which has recently transferred
to Bristol.
Distribution Centre
All orders for both Kitbag and
the football clubs are fulfilled
from the distribution centre
in Ilkeston, Derby.
Following day delivery:
Orders received before 3pm
are guaranteed for next day
delivery using either Amtrak,
the Royal Mail or DHL for
overseas deliveries.
“I can shop from the
comfort of my own
home for a great range
of products which are
always delivered to me
the very next day.”
Jean Dunn
Customer, eeZee tv
Product sourcing:
Bulk product is bought from
the Far East to enable the
most competitive pricing in the
industry. Local sourcing is also
utilised to ensure continuation
of supply, variety of product and
a ready supply of branded goods.
Sales channel:
eeZee tv sells top quality
discounted products
live on Sky Channel 659
broadcasting 14 hours a day.
The channel is also streamed
live on the internet via
The call centre is managed
in-house by our experienced
team in Bristol. Customers
can also order through our
website with the same high
level of service.
Distribution Centre
eeZee tv is the only shopping
channel in the UK to offer
guaranteed next day delivery
on all products. Fulfilment is
through our distribution centre
in Bristol.
Following day delivery:
eeZee tv has benefited
from the Group contract with
Amtrak for the provision of
a next day delivery service.
Kleeneze Annual Report 2005 | 15
Television Shopping
eeZee tv
eeZee tv is a joint venture broadcasting live
for 14 hours per day on the Sky platform
channel 659 as well as streamed live over
the internet on http://www.eezeetv.com. eeZee tv
sells a wide range of products across six
major product ranges at a discount to High
Street prices.
In the seven months since we launched
the joint venture our share of turnover was
£0.3 million and our share of the operating
losses was £0.8 million. Additionally we
have incurred £0.3 million of start-up costs.
We founded the 50/50 joint venture
with John Mills Limited (“JML”) on
29th September 2004 and started
live broadcasting on 1st March 2005.
We formed the joint venture with JML
to combine their product sourcing and
broadcasting expertise with our operational
expertise and all of the products are
dispatched from Kleeneze Europe’s
distribution centre.
eeZee tv should become a new part of our
product sourcing over the next few years
as we will be using television to test new
products for our catalogues. A product that
sells well on television will be migrated
into our Kleeneze Europe catalogues.
We are also selling other Group products
on television.
We are using JML’s position as an
advertiser on terrestrial and satellite
television to promote eeZee tv. JML also
has over 4,000 video promotion units
in major retailers across the UK, such as
B&Q, Woolworths and Boots and we are
using this presence to promote eeZee tv
as well as promoting it in our Kleeneze
Europe catalogues. These cross promotions
should drive viewers to our station in
a targeted and cost-effective manner.
On 1st July 2005 we launched a new
series of daily specials, the “Big eeZee”
and we are continuing this initiative across
the summer into the Christmas period.
We broadcast our programmes
simultaneously on our website, eezeetv.com,
which already accounts for some 15% of our
turnover with a conversion rate of over 5%.
We have launched a “Kleeneze show”
on eeZee tv at 8am on Saturday mornings
with shows repeated at 8am on Wednesday
mornings. This is designed to enhance the
profile and reputation of Kleeneze Europe
and bring it to the attention of a wider
audience. We are planning to broadcast
these shows throughout the year.
eeZee tv provides us with an opportunity
to develop a presence in television shopping
and extend our product development
and sourcing.
William Rollason
Chief Executive
10th August 2005
an average discount from the High Street
of 22%
Chief Executive’s Review continued
Pete Mills
Managing Director
eeZee TV
“eeZee tv successfully launched in March
2005 broadcasting 14 hours of live TV
shopping from our London studios every
day. We are the only channel in the UK to
guarantee next day delivery on all products,
which puts our customer service proposition
leagues ahead of the competition.”
16 | Kleeneze Annual Report 2005
Summary of results
Turnover from continuing operations for the year increased by 10.7% to £175.9 million (2004: £158.9 million) including £5.3 million from
acquisitions made during the year. Excluding acquisitions, turnover was up by 7.3%.
Operating profit from existing operations before goodwill amortisation and exceptional items was £7.7 million (2004: £7.9 million) excluding
losses of £0.3 million from acquisitions during the year. Statutory operating profit was £4.9 million (2004: £3.2 million). The overall margin
on existing operations fell to 4.5% (2004: 5.0%), due to disappointing results at Farepak; Kleeneze Europe’s margin, however, increased to
8.3% (2004: 8.0%), reflecting the first full year of the efficiency benefits arising from the new fulfilment centre.
Share of joint venture
Our share of the new joint venture Television Shopping business, eeZee tv, recorded losses of £0.8 million (2004: £nil) during the seven
months’ trading from commencement on 1st October 2004.
Share of associate
Operating profits from Home Farm Hampers Limited (“Home Farm”) were £0.5 million (2004: £0.6 million).
The total net interest charge was £0.1 million (2004: £0.3 million). Net interest payable of £0.3 million has fallen from last year’s £0.6 million
charge. The major outflows on acquisitions occurred during the second half, particularly with the purchase of Kitbag on 1st April 2005.
Additionally, there is a charge of £0.2 million relating to the unwind of the discount on the base and contingent deferred consideration
arising on the IWOOT acquisition, details of which are given in note 6. Interest income from Home Farm was £0.3 million
(2004: £0.3 million).
Exceptional items
2005 2004
£m £m
Operating exceptional items
Closure of production at Farepak (0.5) –
Abortive acquisition costs (0.3) –
Start-up costs in the Netherlands (0.5) –
eeZee tv start-up costs (0.3) –
Management re-structure at Kleeneze Europe (0.3) –
Change in VAT legislation (0.2) –
Costs on termination – (0.9)
Transfer of operations in Kleeneze Europe – (1.1)
(2.1) (2.0)
Non-operating exceptional items
Profit on disposal of fixed assets 0.5 1.2
Profit/(loss) on disposal and closure of discontinued operations 0.9 (6.8)
1.4 (5.6)
Operating exceptional items
• The closure of Farepak’s hamper production facility in Swindon resulted in an exceptional charge of £0.5 million during the year in respect
of redundancies and related costs.
• During the year, the Group reviewed a number of potential acquisitions and £0.3 million of costs were incurred in business reviews that were
not pursued.
• Kleeneze Europe incurred £0.5 million in start-up costs relating to the entry into the Netherlands.
• Start-up costs relating to the setup of eeZee tv including fulfilment and Service Centre operations were £0.3 million.
• £0.3 million costs were incurred by Kleeneze Europe in respect of a management restructuring programme.
• £0.2 million costs were expensed as a result of an anticipated change in VAT legislation.
Non-operating exceptional items
During the year, Farepak disposed of freehold premises for cash proceeds of £2.1 million. The net book value of the fixed assets disposed
was £1.5 million and the costs of disposal were £0.1 million, giving a profit on disposal of £0.5 million.
The disposal of 190,763 Ordinary shares in Premier Direct Group plc realised £1.2 million and gave rise to a profit of £0.9 million.
An analysis of the taxation charge is set out in note 9. The total taxation charge as a percentage of the profit before tax was 17.4%.
The tax charge on continuing operations before exceptional items represents 30.6% of the profit before tax.
£1.1 million was credited to the profit and loss account in respect of the tax on exceptional items, over provisions in previous years and deferred
tax released upon the sale of the freehold property.
Earnings per share
Basic earnings per share were significantly improved to 10.21 pence per share (2004: loss of 5.76 pence).
Normalised basic earnings per share reduced by 20.9% to 10.17 pence (2004: 12.85 pence).
Finance Review
For the year ended 28th April 2005
Kleeneze Annual Report 2005 | 17
The Group declared an interim dividend of 1.07 pence per Ordinary share in December 2004 (2004: 1.0 pence); a final dividend of 2.23 pence
per Ordinary share is proposed (2004: 2.0 pence) and is subject to approval by shareholders at the AGM on 28th September 2005.
Cash and borrowings
The Group generated cash from continuing operations of £3.2 million (2004: £6.2 million), after the cash flow relating to exceptional costs.
Following expenditure of £13.1 million on acquisitions during the year, including the Group’s investment in eeZee tv, the Group had a cash
outflow before financing of £9.3 million (2004: inflow £4.8 million). Net debt at 28th April 2005 rose to £27.0 million (2004: £11.2 million)
including £5.7 million of discounted loan notes issued to the vendors of IWOOT.
The Group’s committed borrowing facilities of £40 million expire on 31st October 2006 and are more than sufficient to provide for its financial
requirements for the foreseeable future. At 28th April 2005, the overdraft with Bank of Scotland, drawn under these facilities, was £21.2 million
(2004: £11.6 million).
Bank of Scotland has rights to offset cash balances against overdrafts with Group companies.
Shareholders’ funds
The shareholders’ funds deficit at 28th April 2005 is £7.5 million (2004: £12.8 million deficit).
Derivatives and other financial instruments
The Group’s principal financial instruments, other than derivatives, comprise Preference Shares, bank overdrafts, loan notes, loans and cash.
There are also various other operating financial instruments, such as trade debtors and trade creditors.
The Group enters into derivative transactions (forward currency contracts) in order to manage the currency risks that arise from trading.
The Group does not trade in financial instruments.
Interest rate risk
Interest income is earned at variable interest rates on cash deposits, on balances due from Kleeneze Europe distributors and on loans
advanced to eeZee tv.
Interest is payable on the Group’s borrowings at a variable rate based on Bank of Scotland’s base rate. Loan notes of £0.3 million issued
by the Company bear interest at a floating rate based on LIBOR and the balance of £6.0 million (£5.7 million net of discount) issued by a
subsidiary company are non-interest bearing. No interest accrues on the contingent deferred consideration of £4.65 million (£4.23 million net
of discount) relating to the acquisition of IWOOT.
Foreign currency risk
Kleeneze Europe purchases around 50% of of its product range from overseas suppliers who usually invoice in either US Dollars or Hong Kong
Dollars. Forward currency contracts are negotiated in order to limit currency exposure and the effect of these contracts at 28th April 2005 is
given in note 26.
All of the Group’s principal businesses trade in the United Kingdom. Turnover generated by Kleeneze Ireland, which supplies distributors based
in the Republic of Ireland, and by Kleeneze Europe in the Netherlands is denominated in Euros; however, the majority of operating costs are
denominated in Sterling. Some exchange differences arise on currency balances held in Euros from time to time.
International Financial Reporting Standards (“IFRS”)
IFRS will apply for the Group’s financial year ending April 2006. The interim results for the six months ending 31st October 2005 will
be prepared in accordance with the new accounting standards.
An impact analysis has been completed and the most significant areas for the Group are currently expected to include:
• The cessation of goodwill amortisation, which will become subject to an annual test for impairment
• The recognition of intangibles arising on acquisitions and the amortisation of those assets
• The introduction of a charge in respect of the grant of share options
• The introduction of pension accounting rules which require a defined benefit pension scheme surplus or deficit to be reflected in the
balance sheet
• The non-provision for dividends until declared.
The Group’s review of the impact of the change to IFRS is ongoing as standards and associated interpretations continue to be refined and
developed and practical application continues to evolve.
C J S Hulland
Finance Director
10th August 2005
18 | Kleeneze Annual Report 2005
Corporate Social Responsibility Report
We are a people business. We touch the lives
of millions of people – not just our customers
and employees, but also our distributors,
agents, shareholders, suppliers and the
local communities in which we operate. As
stakeholders in our business, they expect
us to operate our business in an ethical
and socially responsible manner.
Our Environmental Policy crystallises our
commitment to maintaining and promoting
sound environmental practices. We intend to:
• Comply with, and where possible perform
better than, all relevant environmental laws
and regulations.
• Consider the environment in all strategic
business decisions.
• Establish key environmental objectives that
will allow us to minimise our impact on the
• Set targets to meet our key environmental
objectives and measure our performance
against these targets year on year.
• Report to our stakeholders on our
environmental performance.
Following the acquisitions of IWOOT, Kitbag
and eeZee tv, we are reviewing the measures
by which we monitor our performance in line
with our objectives.
During the year Kleeneze Europe implemented
a recycling programme for the 1.25 tonnes
of cardboard waste that is generated on a
daily basis. This waste is now being shredded
and used as packing material replacing the
non-biodegradable infill which was previously
used to pack parcels for distribution.
The key differentiator in our business is
our people. We, therefore, seek to create
a positive working environment that allows
them to grow and develop as individuals.
Training is an important part of this
development and we encourage employees
to take advantage of internal and external
training opportunities. As part of this process,
our appraisal programme identifies staff
training requirements and provides them
with appropriate training to further their
development. During 2004 we commenced a
management training programme designed to
realise the potential of our management team.
Whilst we operate our businesses in a manner
designed to harness the synergies between
them, we seek to maintain the distinctive
internal culture that characterises each of our
businesses, because we want our people to
work and take part in a business they believe
in – this is an important part of what gives
each business its competitive edge.
• Our relationship with the community remains
important to the Group. Kleeneze Europe’s
support for the National Neighbourhood
Watch Association (“NNWA”) has continued
in the current year.
• Macmillan Cancer Relief remains the
principal charity for Farepak and Kleeneze
Europe who together with significant staff
contributions have raised £7,000 this year.
At the beginning of 2005 distributors and
staff responded generously to the Tsunami
earthquake appeal raising donations which
were matched by a Group contribution
making a total contribution of £30,000.
Farepak also donated packaging and
surplus food products.
• Kitbag worked with Sport Relief, a charity
which supports projects that use sport
and exercise to strengthen communities
and provide opportunities for people who
are excluded or disadvantaged.
Industry involvement
As founder members of both the Direct
Selling Association (“DSA”) and the Hamper
Industry Trade Association, we believe
strongly in protecting the rights of our
customers and encouraging other businesses
in our industry to adopt similarly high
standards of corporate practice. This past
year, we have worked closely with the DSA
and the Office of Fair Trading (“OFT”) to
achieve the OFT’s official endorsement
of the Consumer Code of Practice by which
we abide.
As an evolving medium, the internet has had
to work hard to gain the trust of consumers
as a secure environment in which they can
trade. Our two internet businesses, IWOOT
and Kitbag, adhere to the highest principles
set out by the internet retailing industry.
IWOOT is accredited by the Safebuy Assurance
Scheme, TrustUK and ISIS.
Ethical trading
We endeavour to apply the principles of
fair and ethical trading in all our business
areas. An ethical trading policy has been
incorporated into our standard terms and
conditions for suppliers and we have made
good progress in signing up our suppliers
to ensure that they abide by this policy.
Nicholas Gilodi-Johnson
10th August 2005
Above from top Kleeneze Europe has
replaced the packaging materials previously
used for delivery of goods to distributors
to opt for shredded recycled cardboard.
In January 2005, Farepak provided food
and packaging to victims of the Tsunami
earthquake and Megan Chaplin carries
a box of aid.
Kleeneze Annual Report 2005 | 19
01 02
03 04
05 06
01 Sir Clive Thompson (62)
Appointed to the Board in 1988 and
Chairman in August 2001. Deputy Chairman
of Strategic Equity Capital plc. Member of
the advisory boards of CVC Capital Partners
and SVG Strategic Recovery Fund. Retired
as Chairman of Rentokil Initial plc in 2004
where he was Chief Executive for 20 years.
Past President of the Confederation of British
Industry (CBI). Former director of Sainsbury plc,
Wellcome PLC, BAT Industries PLC, Seeboard plc
and Caradon PLC. Former Deputy Chairman
of the Financial Reporting Council and member
of the Committee on Corporate Governance.
02 William Rollason (44)
Chief Executive
Appointed in January 2003. He is also
a non-executive director of Jessops plc.
Previously Group Finance Director of National
Express Group plc and prior to that a director
at Carlton Communications plc. He qualified
as a Chartered Accountant with KPMG in 1986.
03 Chris Hulland (53)
Finance Director and Company Secretary
Appointed to the Board in July 1988, having
previously been Finance Director of H P Bulmer
(Overseas Holdings) Limited since 1985.
He previously held positions with Newey
& Eyre International Limited and GKN PLC.
He qualified as a Chartered Accountant in
1976 with PricewaterhouseCoopers in London.
04 Nicholas Gilodi-Johnson (34)
Executive Director
Appointed to the Board in September 2001,
Nicholas Gilodi-Johnson was appointed
Managing Director of Farepak Food and
Gifts Ltd in February 2005. He was previously
Corporate Strategy Manager with United Pan
Europe Communications NV and, prior to that,
was with News International PLC.
05 Paul Munn (42)
Senior Independent Non-executive Director
Appointed in November 2002, Paul Munn
is a director of Rockworth Management
Partners Limited and prior to that was
Chief Executive of Dawson International PLC.
He is a Member of the Chartered Institute
of Management Accountants and he has
previous experience with Mars Confectionery,
PricewaterhouseCoopers and BUPA.
06 Neil Gillis (40)
Independent Non-executive Director
Appointed in August 2003, Neil Gillis
is Chief Executive of health club group,
Esporta. Neil has previously worked at
Greene King PLC and Heinz.
07 Stephen Roberts (64)
Non-executive Director
Appointed in 1985. He is a consultant to
Kirkpatrick & Lockhart Nicholson Graham LLP.
20 | Kleeneze Annual Report 2005
Information not subject to audit
The Board has delegated responsibility for establishing remuneration policy during the year and the remuneration of the Chairman and the
executive directors to the Remuneration Committee. The members of the Remuneration Committee during the year were:
Neil Gillis (appointed Chairman on 27th October 2004)
Paul Munn
Sir Clive Thompson (resigned 27th October 2004)
Stephen Roberts (resigned 27th October 2004)
The Board is responsible for confirming fees payable to the non-executive directors which are recommended by the Non-Executive Directors’
Fees Committee which consists of:
Sir Clive Thompson (Chairman)
William Rollason
Chris Hulland
The Remuneration Committee and the Non-Executive Directors’ Fees Committee have used the Committee members’ wide knowledge of
current good practice relating to directors’ remuneration.
Remuneration policy
In framing its policy, the Remuneration Committee has given full consideration to the Combined Code. The remuneration policy is designed,
by reference to listed public companies of similar size and financial record, to attract, retain and motivate the executive directors. The policy is
intended to provide both a fixed salary and short term and long term benefits through inclusion of performance-related bonuses and share options.
The policy in relation to subsequent years will be kept under review to ensure that it reflects changing circumstances. In addition the Committee
reviews the salaries of senior management. The remuneration policy remains unchanged for the financial year ending 30th April 2006 but
performance criteria are designed to be flexible and allow for specific targets to be set in the light of new developments.
Emoluments consist of annual salary, fees, pension and other non-cash benefits, which include health insurance and car benefits.
Fees and salaries are reviewed annually. The level of fees and remuneration for the Chairman and for each director is designed to provide
a competitive remuneration package to attract and retain quality individuals.
The Remuneration Committee is sensitive to the wider scene, including pay and conditions throughout the Group, especially when determining
annual salary increases.
There are no bonuses payable in respect of the financial year ended 28th April 2005. Bonuses relating to the year ended 30th April 2004 were
paid to William Rollason (£75,000), Chris Hulland (£20,000) and Nicholas Gilodi-Johnson (£7,500).
For the financial year ending 30th April 2006 bonus arrangements in respect of William Rollason and Chris Hulland are dependent upon growth
in normalised earnings per share. The maximum bonuses are 75% for William Rollason and 40% for Chris Hulland. Nicholas Gilodi-Johnson has
a maximum bonus of 30% of salary which is dependent upon profit targets related to the performance of Farepak.
Bonus payments do not form part of pensionable emoluments.
Other benefits
William Rollason, Chris Hulland and Nicholas Gilodi-Johnson are entitled to death in service benefit of four times salary and to permanent
health insurance cover which applies after 6 months’ continuous absence due to illness.
Directors’ Remuneration Report
For the year ended 28th April 2005
Kleeneze Annual Report 2005 | 21
Service contracts
The executive directors have service contracts with the Company. These are rolling contracts which continue unless terminated in accordance
with the terms of the contract. These agreements are summarised as follows:
Compensation on
termination by the Company
Name Date of agreement Notice periods without notice or cause
William Rollason 8th January 2003 6 months from the director; 150% of basic annual salary
12 months from the Company at the date of termination
Chris Hulland 13th November 2002 6 months from the director; 150% of basic annual salary
12 months from the Company at the date of termination
Nicholas Gilodi-Johnson 24th February 2005 6 months from the director; 6 months’ salary at date
6 months from the Company of termination
Sir Clive Thompson has a rolling service agreement, dated 5th April 2003, which provides for a notice period of 12 months from either
Sir Clive Thompson or the Company.
The terms of the directors’ service contracts have been set to reflect market practice and provide contractual protection for the directors
that is fair and in the interests of shareholders. Compensation payments on termination of directors’ contracts will only be made where the
circumstances surrounding the departure of the relevant director justify such payments. Compensation will not apply where the director’s
departure is due to poor performance.
Neil Gillis and Paul Munn have letters of appointment dated 8th August 2003 and 26th September 2002, respectively, which do not allow
for any notice period. Stephen Roberts does not have a letter of appointment.
There are no pre-determined special provisions for the Chairman and non-executive directors with regard to compensation in the event of loss
of office.
All non-executive directors are subject to triennial re-election at the AGM. The Nomination Committee considers nominations in respect
of Board appointments.
Share options
Share options granted to directors and the performance criteria for options that have been granted to directors are set out later in this report.
It is the Board’s intention that share options, other than those issued in relation to the Savings Related Share Option Scheme, will be issued
subject to performance criteria.
The Remuneration Committee has concluded that share price improvement should be a priority for the Chief Executive and his remuneration
package has been appropriately structured. The Committee considers that a continuing improvement in the share price is important to all
shareholders and is one of the best measures to assess the performance of the Chief Executive.
Total shareholder return
The following graph shows the Company’s performance between 1st May 2000 and 28th April 2005, measured by total shareholder return,
assuming that dividends are re-invested on the ex-dividend date, compared with the performance of the FTSE Small Cap index, also measured
by total shareholder return. The FTSE Small Cap Index has been selected for this comparison as the directors believe that this is the most
appropriate benchmark.
2000 2001 2002 2003 2004 2005
Total Shareholder Return
----- Kleeneze plc
----- FTSE Small Cap Index
22 | Kleeneze Annual Report 2005
Information subject to audit
Directors’ remuneration
Remuneration, excluding pension contributions, paid to each director was:
Benefits- 2005 2004
Fees Salary in-kind Total Total
£’000 £’000 £’000 £’000 £’000
Sir Clive Thompson* 100 – – 100 100
William Rollason – 275 15 290 376
George Pollock (resigned 17th December 2003) – – – – 680†
Chris Hulland – 186 26 212 232
Nicholas Gilodi-Johnson – 62 6 68 73
Neil Gillis 20 – – 20 14
Paul Munn 20 – – 20 20
Stephen Roberts 20 – – 20 20
160 523 47 730 1,515
* Director’s fees were paid to Storm Financial Ltd, a company of which Sir Clive Thompson is a director and a shareholder.
† Includes £493,000 paid in respect of compensation for loss of office.
Benefits-in-kind include health insurance and car benefits.
William Rollason and Chris Hulland are entitled to pension contributions of 25% of salary to be paid into a personal pension scheme of their
choice. Chris Hulland was a member of the Group’s Defined Benefit Pension Scheme until 1st November 2003 when his membership ceased.
Nicholas Gilodi-Johnson is entitled to a pension contribution of 10% of salary paid into the Kleeneze plc Group Personal Pension Scheme.
Contributions made during the financial year were:
2005 2004
£ £
William Rollason 49,844 14,000
Chris Hulland 69,750 13,950
Nicholas Gilodi-Johnson 3,125 1,155
George Pollock – 25,000
122,719 54,105
The value of pension contributions unpaid as at 28th April 2005, all of which related to William Rollason, was £95,604. At 30th April 2004 the
value of contributions unpaid was £92,000 of which £68,750 related to William Rollason and £23,250 related to Chris Hulland. These sums
have been provided for in the financial statements.
Pension details in respect of the Defined Benefit Pension Scheme for Chris Hulland are:
Increase Transfer
before value of
Accumulated Accumulated Increase in inflation in increase,
accrued accrued accrued accrued before
benefits benefits benefits benefits inflation less
at 28th April at 30th April during during directors’
2005 2004 the year the year contributions
£ £ £ £ £
Chris Hulland 48,757 47,275 – 1,482 12,389
The transfer value of accrued benefits for Chris Hulland at the end of the financial year is as follows:
At 28th April At 30th April directors’
2005 2004 contributions
£’000 £’000 £’000
Chris Hulland 452 286 166
The transfer value represents a liability of the Farepak Limited Pension & Life Assurance Scheme (1984), not a sum paid or due to Chris Hulland.
Directors’ Remuneration Report continued
Kleeneze Annual Report 2005 | 23
Share option schemes
Options held by directors during the year are shown below:
Exercise At 28th At 30th
price April 2005 April 2004
Date of grant Exercise dates £ Number Number
William Rollason (2)09.01.2003 09.01.2006 to 08.01.2013 0.6150 845,528 845,528
(3)09.01.2003 09.01.2006 to 08.01.2013 0.6150 48,780 48,780
(2)17.12.2003 17.12.2006 to 16.12.2013 1.4500 379,310 379,310
(2)15.12.2004 15.12.2007 to 14.12.2014 1.2850 428,015 –
1,701,633 1,273,618
Chris Hulland (1)20.01.1997 20.01.2002 to 19.01.2007 1.9625 16,738 16,738
(2)20.01.1997 20.01.2000 to 19.01.2007 1.9625 191,198 191,198
(1)28.09.1999 28.09.2002 to 27.09.2009 2.8750 83,652 83,652
(3)04.10.1999 04.10.2002 to 03.10.2009 2.8750 10,434 10,434
(1)31.10.2000 31.10.2003 to 30.10.2010 1.8800 127,559 127,559
(1)27.09.2001 27.09.2004 to 26.09.2011 1.7750 74,472 74,472
(1)27.09.2002 27.09.2005 to 26.09.2012 1.1000 148,710 148,710
652,763 652,763
Nicholas Gilodi-Johnson (1)27.09.2002 27.09.2005 to 26.09.2012 1.1000 11,993 11,993
The Company operates share option schemes for executive directors and other senior management. Options are normally exercisable between
three and ten years after the date of grant. There are a limited set of circumstances such as leaving employment due to injury, disability or
redundancy, when performance conditions (if applicable) may not apply.
Share options awarded by the Remuneration Committee may be conditional on the Company’s future performance.

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If you've found it on a web-site, just copy the URL, then we can go look for ourselves. Or people could pm you their e-mail address & you can e-mail it as a .pdf file, coz I think it's a large file.
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Pm a Mod or nommo who is site admin. and welcome to the site.

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Hi , if people want to pm then I'll happily send it ,
just wondering but does anyone know if Kleeneze agents have sent money to the Farepak fund , cos there is someone in Kleeneze ( lives in Sheffield) bragging down the voicemail about his £120, 000 lambourghini , how many christmas could that have paid for , thats why we quit cos we hated this attitude....
and people are self-employed who don't declare to the taxman....
did Farepak customers money pay for Kleenze expansion into Germany in may 2006 ??

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Large? Mike. Glad i was nt the one typing that. Thanks Jo and welcome to our forum. :lol:


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PostPosted: Wed Dec 13, 2006 9:52 pm 
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Joined: Sat Oct 28, 2006 9:36 pm
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Location: aberdeen
i'd like someone to try and argue that farepak did not fund kleenezes expansion in 2006.

more chance of getting money back from mr krabbs! robbers!

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PostPosted: Wed Dec 13, 2006 9:59 pm 
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spongebob wrote:
i'd like someone to try and argue that farepak did not fund kleenezes expansion in 2006.

WHOOPS! Nearly had a Youngman moment there. Decided not to bother trying, I'm staying in the wings. :)


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PostPosted: Wed Dec 13, 2006 10:08 pm 
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Location: aberdeen
oh go on :lol: i like old youngman , and i genuinely would like an explanation, don't panic about falling out, i'll change me mind if you present the case. Do you know which members of kleeneze board went on the travel incentive trip this year? looks lovely! I have nothing against kleenezes workforce or methods , just want to find out a bit more of the higher management, and what the mood was like during 2006. :D or :cry:

more chance of getting money back from mr krabbs! robbers!

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