Nick wheeler charles tyrwhitt email

BUSINESS MODEL DECONSTRUCTION

Task Description

To be completed individually, you are required to prepare a 1500-word business report that deconstructs an organisation's business model and identifies the critical success factors that make the business sustainable. Your analysis will demonstrate your critical thinking skills and your ability to professionally articulate your findings.

please ensure the business report addresses each of the assessment criteria detailed below and which is elaborated in the marking rubric.

Length: 1500-words

Format: Business Report

Business Model Canvas format: From Osterwalder & Pigneur (2010)

Charles tyrwhitt shirts

Assignment 1

MGMT 20143 Think BiG

Lecturer

Student

12345678

30 march 2018

Charles Tyrwhitt Shirts Student 12345678 Page 14 of 14

Executive summary
This report explores the Charles Tyrwhitt business model using the nine component Business Model Canvas approach to identify the features that had such an immediate impact on Australian fashion retailing. The analysis relies on publically available information.

Charles Tyrwhitt’s online model draws on core elements of a direct mail order business relying heavily on renting mailing lists of potential customers with the propensity to buy using the internet capture orders.

Growth in inventory holdings and a slowing of the inventory cycle have been compounded by opening new stores in low growth markets and largescale owner capital drawings.

Charles Tyrwhitt can reshape its business model and avoid being disrupted by potential new entrants. The following are recommended to achieve future growth:

· Move from a propensity driven to a job to be done customer segmentation model

· Better understand whether the disruptive innovation concept of zero consumption competition applies to CT

· Halt UK store growth and focus on applying the lessons learned in Germany and Australia to Scandinavia and other English speaking markets respectively.

Charles Tyrwhitt Shirts Student 12345678 Page 3 of 14

Table of Contents
Executive summary 2

Table of Contents 3

List of Tables 3

I. Introduction 4

II. Business model 4

A. Building blocks 4

1. Customer segments 4

2. Key partners 4

3. Value proposition 5

4. Key activities 5

5. Channels 5

6. Revenue streams 5

7. Cost structure 6

8. Key resources 6

9. Customer relationships 6

B. Interrelationships 6

C. Critical success factors 6

D. Downside risks 7

E. Business model changes 7

III. Conclusion 7

IV. Recommendations 8

Appendix 1 – Charles Tyrwhitt Business Model Canvas 9

Appendix 2 – Charles Tyrwhitt performance benchmarks & comparators 10

References 12

List of Tables
Table 1 Charles Tyrwhitt UK & US mailing list profiles 4

Table 2: Charles Tyrwhitt web referral commissions Australia 5

Table 3: Charles Tyrwhitt sales supported per store by major market 5

Table 4: Charles Tyrwhitt Australian sales (2013-2016) 6

Table 5: Charles Tyrwhitt Business Model Canvas 9

Table 6: Charles Tyrwhitt Australian fashion industry comparison 10

Table 7: Charles Tyrwhitt LLP & Shirts Ltd financial performance (2011-2017) 11

I. Introduction
In 2012 Charles Tyrwhitt (CT) launched an Australian website selling men’s English-style cotton business shirts (Loadman, 2013) with the promise to ‘make it easy for men to dress well’ (Charles Tyrwhitt Shirts Ltd., 2017) and save money buying proper quality shirts in multiples of four. The launch followed the Australian arrival of two fellow tennants from London’s Jermyn Street, the famed home of English shirtmakers for 200 years. Thomas Pink and TW Lewin both opened Australian stores in 2012 (Loadman, 2013). CT offered a web-based shopping experience tailored to men’s apparent dislike of shopping drawing on the infrastructure of a traditional mail-order business. Since 1986 CT has sold over 34 million made-to-measure shirts off the shelf (Confessions of a shirtmaker, 2017) in its principal markets in the UK, USA, Germany and now Australia.

II. Business model
CT runs a traditional high/low retail strategy (Kaufmann, Smith, & Ortmeyer, 1994) also drescribed as ‘was/now’ (ACCC 2016) where new season stock is quickly discounted and sold cheaply driving sales and moving stock. Their Australian arrival was accompanied by a huge direct marketing and newspaper insert brochure campaign that also sold Jermyn Street in seeming equal measure to CT itself.

A. Building blocks
Osterwalder & Pigneur’s (2010) nine building blocks approach details CT’s business model (see Appendix 1 – Charles Tyrwhitt Business Model Canvas).

1. Customer segments
The defining feature CT’s direct mail advertising is precisely targeting people with a propensity to buy by renting lists. CT now rents its own lists out. Table 1 below describes affluent professional males.

Table 1 Charles Tyrwhitt UK & US mailing list profiles

Note: nd not disclosed

Source: (NextMark Inc, 2018), (NextMark Inc, 2018a)

2. Key partners
Access to mailing lists, newspapers and third party referral websites (see Table 2) are essential for CT to develop brand awareness and generate sales traffic.

Table 2: Charles Tyrwhitt web referral commissions Australia

Source: (Charles Tyrwhitt Shirts Ltd., 2017)

Australia Post and couriers to deliver brochures, catalogues, customers orders and product returns.

Manufacturers in Vietnam, Sri Lanka and India ensure consistent product quality and supply at lowest cost.

3. Value proposition
i. Make it easy for men to dress well,

ii. Make Jermyn Street quality and style affordable for everybody by cutting out the middle man and selling direct. (Confessions of a shirtmaker, 2017)

4. Key activities
Reliable brochure mailing and courier delivery of finished orders accepted over the internet.

A direct mail advertising ‘match back’ process links individual purchases with the particular offer presented to the customer and the rented mailing list by a code (Data Services Inc, 2015).

5. Channels
Table 3 details CT sales supported per store in each major market assuming Jermyn Street store supports all sales globally. Australia, Germany and the Rest of the World have no in country stores and buy exclusively online but support 26 percent of 2015 sales at £44.16 millon.

Table 3: Charles Tyrwhitt sales supported per store by major market

Source: (Charles Tyrwhitt LLP, 2016)

6. Revenue streams
In 2012 CT recognised approximately £1 million of Australian turnover driven by former expats that had jumped to £10 million by 2014 (see Table 4). Long term operating profit averages 10 percent (see Table 7)

Table 4: Charles Tyrwhitt Australian sales (2013-2016)

Source: (Data Services Inc, 2015), (Charles Tyrwhitt LLP, 2016), (Speed, 2014)

7. Cost structure
Stock costs are 40 percent of the sale price (see Table 7). Distribution and selling costs are about 30 percent of revenue while administration costs account for approximately 20 percent.

8. Key resources
Mailing lists and match-back capabilities/infrastructure are indispensible for direct mail advertisers, along with a website to accept orders.

9. Customer relationships
Regular direct mail and email of current offers, promotions and catalogues to past customers and potential future prospects supported by an internet order platform.

B. Interrelationships
CT prints and mails 35 million brochures annually with 15 million sent to prospective buyers identified from rented lists (Data Services Inc, 2015) that generates 75 percent of sales turnover (Elejalde-Ruiz, 2014). The linkage between mailing houses, key partners, that rent lists to CT of potential buyers, customer segments, is foundational.

The CT value proposition ‘make it easy’ links the customer to the cost advatages of a direct channel online/mail order distribution and the revenue strategy of multibuy bundles of four shirts ‘affordable’. ‘Quality and style’ also links offshore suppliers with cost and revenue through profit margins.

CT’s 130,000 square foot warehouse in the UK fitted with 30,000 square feet of racking ensures customer segment demand is met by sufficient stock to avoid missed revenue opportunities due to stock run outs (Roberts, 2017). It also allows for apparent mass customisation by holding stock in multiple sleeve lengths and fits thereby linking customer demand for well fitting shirts and revenue opportunity.

Linking the cost and revenue is inventory mangement and the ‘was/now’ pricing tactic (ACCC, 2016) that ensures old stock doesn’t become dead stock by continuous rolling discounting of slow moving stock. It delivers savings to customers and clears stock, albeit at a reduced margin.

The centrality of the Jermyn Street brand to CT’s marketing success is interesting. Cooperating with Thomas Pink and TW Lewin by promoting Jermyn Street quality separately CT itself, makes an interesting link between lost revenue through competition and key partners that support sales. This was first described by Nash (1950) and extended (1953).

C. Critical success factors
"I used to run a dodgy old catalog business and suddenly I was running a very sexy Internet business, almost overnight"

Nick Wheeler, founder Charles Tyrwhitt (Elejalde-Ruiz, 2014)

The match-back process is fundamental by linking the customer characteristics that decribe a propensity to buy on the rented mailing list, with the offer presented and the composition of purchase outcome. Feedback refines insights into future list selection and offer creation (Data Services Inc, 2015).

Continuous process improvement and the application of capital investments allows CT to improve speed of fulfilment at lower cost and with fewer errors. Recent commissioning of a conveyor system in the warehouse facility enables 7500 orders to be processed each day by two people rather than seven or eight staff previously. (Roberts, 2017)

In 2016 CT stores supported on average £6,778,000 in sales for each store against between $500,000 and $776,000 on average in Australian stores. Table 3 above breaks this down by CT primary market to the point where a single store in London’s Jermyn Street supports £44,160,000 in sales in Australia, Germany and the Rest of the World.

D. Downside risks
In the five years between 2011 and 2015 CT owners withdrew and distributed £44,971,000 (Table 7) potentially impeding CT’s ability to grow and invest.

CT holds stock for on average from 75 days in 2011 to 131 days in 2016 (see Table 7). Australian fashion retailers hold between 90 and 100 days (Table 6). Old stock is harder to move and is often written off at great financial cost.

The ‘was/now’ tactic resulted in the ACCC fining CT $10,800 for essentially fabricating the ‘was’ price; no customers had purchased at the high price. If trust in the credibilty of the retailer diminishes the business model is at risk of failing.

Movements in foreign exchange (FX) markets can add costs to global businesses. CBA (2015) reported 70 percent of retailers had FX induced cost increases but only 43 percent had raised prices. Further the UK’s exit from the European Union is predicted to add a further 10 percent to costs (Bridge, 2017).

E. Business model changes
I would move toward better understanding buyer behaviour moving away from propensity to causality (Christensen et al, 2016). I would seek to observe buyers and precisely understand what job needs to be completed that gives rise to a purchase.

CT’s success may in part be attributable to Christensen’s (2016) disruptive innovation concept of competing against zero consumption. Perhaps men didn’t buy shirts at all and their partners, parents and children were in fact purchasing shirts in department stores for them. Web based purcahsing by men themselves possibly was an ideal market entry point that needs to be understood.

Expansion in high growth, low cost markets such as Germany and Australia is potentially undermined by the expansion of stores in low growth markets such as the UK and France (BCG, 1970). I would halt UK store growth. Expand online offerings in Scandinavia following the learnings from the Germany and similarly expand into Ireland, Canada and New Zealand applying Australian lessons.

III. Conclusion
The preceding analysis is based on public information. CT has been wonderfully successful in the application of old school direct marketing practices to the cost and distributional efficiencies of the internet. The future is not without risk. Perhaps the greatest risk is that without next level insights, CT may be open to disruption itself.

IV. Recommendations
· Move from a propensity driven to a job to be done customer segmentation model

· Better understand whether the disruptive innovation concept of zero consumption competition applies to CT

· Halt UK store growth and focus on applying the lessons learned in Germany and Australia to Scandinavia and other English speaking markets respectively.

Appendix 1 – Charles Tyrwhitt Business Model Canvas
Table 5: Charles Tyrwhitt Business Model Canvas

Source: (Osterwalder & Pigneur, 2010, p. 44)

Appendix 2 – Charles Tyrwhitt performance benchmarks & comparators
Table 6: Charles Tyrwhitt Australian fashion industry comparison

Source: (Charles Tyrwhitt Shirts Ltd, 2016)

Table 7: Charles Tyrwhitt LLP & Shirts Ltd financial performance (2011-2017)

Source: (Charles Tyrwhitt LLP, 2011-16), (Charles Tyrwhitt Shirts Ltd, 2016), (Bectin Ltd, 2018)

References
Asher, N. (2013, Sep 2). Charles Tyrwhitt. Facebook. Retrieved 03 20, 2018, from https://en-gb.facebook.com/CharlesTyrwhitt/posts/555871587799306 Australian Competition and Consumer Commission. (2016, Sep 16). Charles Tyrwhitt pays penalty for an alleged false or misleading ‘was/now’ pricing representation. Media Release. Retrieved 03 13, 2018, from https://www.accc.gov.au/media-release/charles-tyrwhitt-pays-penalty-for-an-alleged-false-or-misleading-%E2%80%98was-now%E2%80%99-pricing-representation Bain & Company. (2014, July). Nick Wheeler. Alumni Newsletter. Retrieved 03 16, 2018, from http://www.bain.com/careers/why-bain/future-career-potential/nick-wheeler.aspx Bectin Ltd. (2018, Jan 26). Filing History 09630291 2017 Annual Accounts. Retrieved 03 18, 2018, from Companies House UK: https://beta.companieshouse.gov.uk/company/09630291/filing-history Bridge, S. (2017, May 14). 'I backed Brexit but it's cost me my shirt deal': Four for £100? Not any more, says Charles Tyrwhitt founder... it will be £110. Financial Mail on Sunday. Retrieved from http://www.thisismoney.co.uk/money/news/article-4502836/I-backed-Brexit-s-cost-shirt-price.html Business Wire. (2017, Oct 19). Charles Tyrwhitt Selects Tinyclues Platform for AI-Driven Customer Marketing Campaigns. Retrieved 03 23, 2018, from Venture Beat: https://venturebeat.com/2017/10/19/charles-tyrwhitt-selects-tinyclues-platform-for-ai-driven-customer-marketing-campaigns/ Cameron, A. C., & Trivedi, P. K. (1990). Regression-based tests for overdispersion in the Poisson model. Journal of Econometrics, 46(3), 347-364. Charles Tyrwhitt LLP. (2011-16). Filing History OC305896 Annual Reports. Retrieved 03 18, 2018, from Companies House UK: https://beta.companieshouse.gov.uk/company/OC305896/filing-history Charles Tyrwhitt Shirts Ltd. (2016, Nov 24). Filing History 02914928 2016 Annual Accounts. Retrieved 03 18, 2018, from Companies House UK: https://beta.companieshouse.gov.uk/company/02914928/filing-history Charles Tyrwhitt Shirts Ltd. (2017). Retrieved 03 13, 2018, from Charles Tyrwhitt: https://www.ctshirts.com/au/home Christensen, C., Hall, T., Dillon, K., & Duncan, D. (2016). Know your customers' "jobs to be done" . Harvard Business Review, 54-62. Citrina, A. V., Stem, D. E., Spangenberg, E. R., & Clark, M. J. (2003). Consumer need for tactile input An internet retailing challenge. Journal of Business Research, 56, 915 – 922. Commonwealth Bank of Australia. (2015). Retail Insights. Retrieved 03 15, 2018, from CommBank. Confessions of a shirtmaker (2017). [Motion Picture]. Vimeo. Retrieved 03 15, 2018, from https://vimeo.com/198329586 Cormack, L. (2016, Sep 17). Charles Tyrwhitt pays $10,800 ACCC fine for misleading pricing on shirts. The Sydeny Morning Herald. Retrieved 03 13, 2018, from https://www.smh.com.au/business/consumer-affairs/charles-tyrwhitt-pays-10800-accc-fine-for-misleading-pricing-on-shirts-20160917-grihuk.html crdb. (2017, Sep 27). Australian Members - Part II - if you read the first post, you'll get what this is all about. Retrieved 03 13, 2018, from https://www.styleforum.net/threads/australian-members-part-ii-if-you-read-the-first-post-youll-get-what-this-is-all-about.518027/page-382#post-9019897 Data Services Inc. (2015, Aug 19). How Charles Tyrwhitt Does It With Mail. Retrieved 03 22, 2018, from http://www.dataservicesinc.com/newsletter/how-charles-tyrwhitt-does-it-with-mail/ Elejalde-Ruiz, A. (2014, Oct 22). Charles Tyrwhitt founder offers business lessons. Retrieved 03 23, 2018, from Chicago Tribune: http://www.chicagotribune.com/business/ct-retail-noteook-1022-biz-20141021-story.html Fenech, C., & Perkins, B. (2015). Made to order: The rise of mass personalisation. Deloitte LLP, The Deloitte Consumer Review. Retrieved 03 12, 2018, from https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/consumer-business/ch-en-consumer-business-made-to-order-consumer-review.pdf Graham, N. (2017, Feb 7). My First Million: Nick Wheeler, Charles Tyrwhitt founder. Financial Times. Retrieved 03 16, 2018, from https://www.ft.com/content/a421b5b4-bc85-11e6-8b45-b8b81dd5d080 Jim. (2012, Sep 21). Online comment following 'Democratising tax evasion'. The Drum . Retrieved 03 20, 2018, from http://www.abc.net.au/news/2012-09-21/janda-democratising-tax-evasion/4272502 Kaufmann, P., Smith, N., & Ortmeyer, G. (1994). Deception in retailer high-low pricing: a 'rule of reason' approach. Journal of Retailing, 70(2), 115-138. Loadman, J. (2013, Apr 18). Best of British for web-savvy shirt shoppers. The Age. Retrieved 03 12, 2018, from https://www.theage.com.au/lifestyle/best-of-british-for-websavvy-shirt-shoppers-20130418-2i1bs.html Mayer, E. (1951). Direct Mail Advertising. Harvard Business Review, 37-51. Nash, J. (1950, Jul). The bargaining problem. Econometrica, 18(2), 155-162. Nash, J. (1953). Two-person cooperative games. Econometrica, 21(1), 128-140. NextMark Inc. (2018, Jan 10). Charles Tyrwhitt - UK Buyers (Masterfile) Mailing List. Retrieved 03 28, 2018, from Nextmark Mailing List Finder: https://lists.nextmark.com/market?page=order/online/datacard&id=262864 NextMark Inc. (2018a, Jan 31). CHARLES TYRWHITT CATALOG BUYERS Mailing List. Retrieved 03 28, 2018, from Nextmark Mailing List Finder: https://lists.nextmark.com/market?page=order/online/datacard&id=345239 Octavius Lucien. (2017, Sep 27). Australian Members - Part II - if you read the first post, you'll get what this is all about. styleforum.net. Retrieved 03 13, 2018, from https://www.styleforum.net/threads/australian-members-part-ii-if-you-read-the-first-post-youll-get-what-this-is-all-about.518027/page-382#post-9019843 Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, New Jersey: John Wiley & Sons Inc. Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition. Hoboken, New Jersey: John Wiley & Sons Inc. Roberts, F. (2017, Oct 30). UK’s largest fine shirt retailer Charles Tyrwhitt is dressed for success. Supply Chain Digital. Retrieved 03 12, 2018, from http://www.supplychaindigital.com/company/uks-largest-fine-shirt-retailer-charles-tyrwhitt-dressed-success# Speed, A. (2014, Mar 15). Shirt front: Wheeler knows his game. The Australian. Retrieved 03 12, 2018, from https://www.theaustralian.com.au/life/shirt-front-wheeler-knows-his-game/news-story/b034b17bb2766c4c24f1ab0d67c391cb?sv=13ea2c601407686ae9519677f973a74f The Boston Consulting Group. (1970). The product portfolio. Perspectives, 66, 1-2. The Ernesto. (2013, Apr 25). Australian Members. styleforum.net. Retrieved 03 13, 2018, from https://www.styleforum.net/threads/australian-members.88856/page-2016#post-6308012 Tse, T. (2013). Paradox resolution: A means to achieve strategic innovation. European Management Journal, 31, 682– 696. UK: Solution Saves Charles Tyrwhitt 80% On IT Costs. (2004, May 18). Retrieved 03 19, 2018, from just-style.com: http://link.galegroup.com.ezproxy.cqu.edu.au/apps/doc/A116740715/ITOF?u=cqu&sid=ITOF&xid=0f1137a1 Wheeler, N. (2013). Business Shapers: Nick Wheeler. Mishcon de Reya in association with Jazz FM Jazz Shapers. Retrieved 03 13, 2018, from https://www.mishcon.com/news/tv/business_shapers_nick_wheeler_11_2013 Wheeler, N., Fenech, C., Mak, S., & Fox, J. (2016, Oct 20). Made to measure for the masses. The Money. (R. Aedy, Interviewer) ABC. Radio National. Retrieved 03 12, 2018, from http://www.abc.net.au/radionational/programs/themoney/the-arrival-of-mass-customisation/7943646 Williams-Grut, O. (2017, Jul 22). 'You've got to plug away:' The founder of shirt-maker Charles Tyrwhitt shares his advice for entrepreneurs. Retrieved 03 29, 2018, from Business Insider UK: http://uk.businessinsider.com/charles-tyrwhitt-founder-nick-wheeler-advice-for-entrepreneurs-2017-7 Wright, J. (2016, June 17). Charles Tyrwhitt: selling shirts to one customer at a time. internetretailing.net. Retrieved 03 20, 2018, from http://internetretailing.net/2016/06/charles-tyrwhitt-selling-shirts-one-customer-time/ Zott, C., Amit, R., & Massa, L. (2011, July). The Business Model: Recent Developments and Future Research. Journal of Management, 37(4), 1019-1042.

UKUSA

Sex76% male90% male

Income

67% greater than

£30,000

Average

$100,000

Consumer classificationABC1nd

Age30 - 54nd

Average transaction spendnd$165

Other characteristics

Home owners,

Credit card users,

Frequent travellers,

Majority married

nd

Number of list names109,562562,094

Website type

New

customers

Extisting

customers

General websites12%6%

Voucher/code websites6%3%

Loyalty & cash back websites10%10%

UKUSAFrance

Australia +

Germany +

RoW

Sales £ 80,900 £ 47,574 £ 1,300 £ 44,160

Stores16510

Jermyn Street Store1111

Sales supported per store (£'000) £ 4,759 £ 7,929 £ 650 £ 44,160

2015

2016201520142013

Australian turnover £ 15,861 £ 12,843 £ 10,000 £ 1,000

NoteData Services

2015 N

Wheeler

projected 9%

of turnover

CTLLP 2016Data Services

2015 N

Wheeler

reported

single year

growth

Speed 2015

reported N

Wheeler sales

to former

expats

Reporting year2016

Company nameCharles Tyrwhitt Shirts LtdNoni B LtdSpecialty Fashion Group LtdPAS RetailGazal Ltd

ActivityRetailerRetailerRetailerRetailerWholesaler

Clothing marketMen's & women'sWomen's

Women's & men'sWomen's & men'sWomen's & men's

Sales revenue (£/$'000) £ 176,233311,483$ 808,914$ 140,890$ 62,112$

Revenue growth (%)2%190%-2%4%4%

Store count26 614 1,043 258

Store growth (%)18%169%-4%7%

Sales supported per store (£/$'000) £ 6,778507$ 776$ 546$

Online sales (%)65%4%10%12%

Online sales growth (%)57%18%48%

Gross margin (%)58%63%44%69%37%

Operating income before tax (£/$'000) £ 12,3235,910$ 6,474-$ 13,138$ 11,919$

Operating margin (%)7.0%1.9%-0.8%9.3%19.2%

Net cash earnings margin (%)4.9%-0.2%-1.1%-16.0%

Stock turnover (times pa)2.783.923.993.652.33

Average stock held (days pa)1319391100157

Intangible Goodwill (£/$'000) £ 51,15238,625$ 10,095$ $57,0423,323$

Intangible Brand (£/$'000) £ 79,20336,300$ 8,505$ $25,502-$

Intangible Customer relationships (£/$'000) £ 3,018-$ -$ $0-$

Amortisation expense £ 7,916-$ -$ $0-$

NotesCTSL reports 2017 results in April

2018. CTSL did not report a cash

flow statement for the 2016

financial year or reveal turnover

by channel (retail, mail order,

internet). CTSL year runs 1

August - 31 July. FT reported 65%

online sales in Feb 2017

interview with Nick Wheeler.

Operating income adjusted by

amortisation expense for

comparability. CTSL amortises

intangibles on a 5% straight line

method over 20 years.

Purchased new businesses with

368 stores. Goodwill & Brand are

not amortised but rather subject to

annual impairment testing as Brand

& Goodwill have indefinite life.

Goodwill & Brand are not

amortised but rather subject to

annual impairment testing as Brand

& Goodwill have indefinite life.

Balance sheet and cash

flows not separately

reported for retail.

Figures reported for

wholesale & retail.

Goodwill & Brand are not

amortised but rather

subject to annual

impairment testing as

Brand & Goodwill have

indefinite life.

Recently sold all retail

operations and no longer

operates retail stores.

Gazal owns 50% of the

wholesale distributor (PV

Brands Aust) for Van

Heusen & Pierre Cardin

shirts and suits. Goodwill is

not amortised but rather

subject to annual

impairment testing as

Goodwill has indefinite life.

2017

Reporting year2017201620152014201320122011

Company nameCharles Tyrwhitt Shirts LtdCharles Tyrwhitt Shirts LtdCharles Tyrwhitt LLPCharles Tyrwhitt LLPCharles Tyrwhitt LLPCharles Tyrwhitt LLPCharles Tyrwhitt LLP

ActivityRetailerRetailerRetailerRetailerRetailerRetailerRetailer

Clothing market

Men's & women'sMen's & women'sMen's & women'sMen's & women'sMen's & women'sMen's & women'sMen's & women's

Sales revenue (£'000) £ 194,400 £ 176,233 £ 172,634 £ 145,213 £ 120,857 £ 98,361 £ 78,629

Revenue growth (%)10%2%19%20%23%25%39%

Store count29262221201817

Store growth (%)12%18%5%5%11%8%30%

Sales supported per store (£'000) £ 6,703 £ 6,778 £ 7,847 £ 6,915 £ 6,043 £ 5,465 £ 4,625

Staff count821803690578480400

Sales per staff member (£'000) £ 215 £ 215 £ 210 £ 209 £ 205 £ 197

Operating profit per staff member (£'000) £ 5 £ 23 £ 25 £ 25 £ 16 £ 18

Gross margin (%)58%59%61%60%59%60%

Operating income before tax (£'000) £ 4,407 £ 18,612 £ 17,523 £ 14,454 £ 7,636 £ 7,187

Operating margin (%)3%11%12%12%8%9%

Net cash earnings margin (%) 9%3%8%11%9%

Stock turnover (times pa)2.783.113.464.384.494.86

Average stock held (days pa)131117105838175

Member income OR dividends (£'000) £ 0 £ 1,518 £ 720 £ 1,410 £ 0 £ 0

Net member OR shareholder drawings (£'000) £ 0 £ 8,837 £ 11,364 £ 7,506 £ 7,627 £ 5,989

Net Goodwill (£'000) £ 51,152 £ 0 £ 346 £ 384 £ 422 £ 461

Net Brand (£'000) £ 79,203 £ 0 £ 0 £ 0 £ 0 £ 0

Net Customer relationships (£'000) £ 3,018 £ 0 £ 0 £ 0 £ 0 £ 0

NotesFigures quoted by CTSL parent

Bectin Ltd for 1 April - 31 March

financial year. CTSL reports from

1 August - 31 July financial year.

Direct comparisions are not

possible until CTSL next reports

in April 2018. Bectin Ltd did not

report turnover by channel

(retail, mail order, internet) for

CTSL.

New corporate structure

implemented 2 August 2015. CTLLP

purchased by CTSL, 95% owned by

Bection Ltd. Beneficial owners of

CTLLP and Bectin are essentially

the same. Balance sheet inflated

by value of goodwill, brand &

customer relationship value as well

as offsetting debts owed by Bectin

Ltd to CTSL that in turn owes a

similar amount to CTLLP. CTSL did

not report a cash flow statement

for the 2016 financial year or

reveal turnover by channel (retail,

mail order, internet). 2016 CTLLP

annual report identified 2015

turnover by region.

CTLLP did not report turnover by

channel (retail, mail order,

internet) or total number of stores.

Store counts are sourced from

media reports. First year Australia

is identified as a key market by

directors.

CTLLP did not report

turnover by channel

(retail, mail order,

internet), geography (UK,

USA, Germany) or total

number of stores. Store

counts are sourced from

media reports.

CTLLP did not report

turnover by channel (retail,

mail order, internet),

geography (UK, USA,

Germany) or total number

of stores. Store counts are

sourced from media

reports.

CTLLP did not report turnover by

channel (retail, mail order,

internet), geography (UK, USA,

Germany) or total number of

stores. Store counts are sourced

from media reports.