BAE.L Regulatory News (BAE)

Beale Plc

("Beales" or the "Group")

Interim Management Trading Statement and Trading Update

19 September 2014

The total Group sales including concessions and VAT were 0.6% lower for the 19 weeks to 13 September 2014 and 3.5% lower for the 45 weeks to 13 September 2014, compared to the same periods last year.

These sales decreases include the impact of the board's decision to close certain loss making stores on cessation of leases and the exit from one store due to landlord site redevelopment on cessation of the lease; Maidstone in June 2013, Cinderford in July 2013 and Keighley Home Store and Harrogate in August 2014.

Like for like sales including concessions and VAT were 1.7% higher for the 19 weeks to 13 September 2014 and 1.1% lower for the 45 weeks to 13 September 2014, compared to the same periods last year.

The cessation of 'mega' promotions which, in the prior year generated heightened sales at little or no margin, the exit from the TV/Audio sector and the slow start to the current financial year on the back of lower disposable incomes, pulled sales lower. That said, an improving macro-economic environment and a more positive consumer, aligned with a more consistent seasonal weather pattern in the second half of the year, has improved trading markedly.

Operationally management believe the business has made significant strides in taking the Beales brand back to its core values of a local high street department store, offering value for money branded and own brand product for the person and the home and ensuring the best customer experience every time. This is reflected in the ongoing sign up of loyalty card members, which now stands at in excess of 350,000 members, the sales penetration on the loyalty card and the increasing number of customer compliments received every day.

Michael Hitchcock, CEO, comments "I truly believe that the high street in the UK can survive and thrive with a local trusted and quality driven offer, which emanates theatre and personality. The early signs of the blood sweat and tears that the people in our business have given up, are starting to positively show through."

For further information:

Beale Plc

Michael Hitchcock, Chief Executive

Tel: 01202 552022

Shore Capital

Anita Ghanekar / Edward Mansfield

Tel: 020 7408 4090