BON.L Regulatory News (BON)

26 July 2018

Bonmarché Holdings plc ("Bonmarché", or the "Group")

Trading Update

13 week period ended 30 June 2018

Bonmarché, one of the UK's largest women's value retailers, presents its trading update for the 13 week period ended 30 June 2018 ("Q1" of FY19).

Sales in Q1 grew by 2.7% against the corresponding period in FY18; online sales grew by 27.3% and store only like for like ("LFL") sales declined by 1.2%. The comparatives for these figures were strong, with the online growth in Q1 of FY18 being 39.0% and store only LFL sales being 4.2%. The table below summarises the store, online and combined sales performance for Q1:

As at 30 June 2018, Bonmarché traded from 323 stores and online (2017: 322 stores and online).

Dividend policy

In the Group's preliminary results announcement on 19 June 2018 it was noted that the outcome of the Board's review of the dividend policy would be communicated within this update.

At the time of listing, the Group adopted a progressive dividend policy and looked to maintain dividend cover at between 2.5x to 3.0x earnings. In maintaining the level of dividends in recent years, and proposing to increase it in respect of FY18, the Board has deviated from that range, yet the dividends have remained comfortably covered by the Group's cashflow. In light of this, and of its confidence in the Group's prospects, the Board announces that it will continue to maintain a progressive dividend policy, but the guideline for the required earnings cover will be henceforth lowered to a range of 2.0x to 2.5x earnings. The Board's intention is that attainment of a cover within this range will be accomplished over a period of time, and that assuming profits grow, future dividends will be increased at a rate which simultaneously increases the dividend cover.

Helen Connolly, Chief Executive Officer of Bonmarché, said:

"I am pleased with the improvement in trading in stores compared to the second half of FY18 and in the continued momentum of our online sales, particularly against strong prior year comparatives.

"The improved sales performance during the first quarter, achieved in a clothing market which, whilst helped to some extent by more seasonal weather, remains challenging, underpins our confidence in the strategy, and the Board's expectations for the full year remain unchanged."

- Ends -

For further information regarding Bonmarché, please call:

Notes to Editors:

Bonmarché is one of the UK's largest women's value retailers, focused on selling stylish clothing and accessories in a wide range of sizes, via its own store portfolio and online. Established in 1982, Bonmarché has over 35 years of experience in this market segment, operating across the UK.