JD Sports Regulatory News (JD.)

21 Jul 2005 07:01

John David Group (The) PLC21 July 2005 21 July 2005 THE JOHN DAVID GROUP PLC AGM TRADING STATEMENT At the AGM of The John David Group Plc ("the Group"), to be held today at 1pm,the following trading update will be provided to attending shareholders: On 11 May 2005 in the Preliminary Announcement of the Group's results for theyear ended 31 January 2005, we reported like for like sales growth of 2.4%(Sport 2.7%; Fashion 0.3%) for the thirteen weeks ended 30 April 2005. Since that time, as widely reported, there has been general weakness on the highstreet as a result of the economy tightening. In addition, the Sport Fasciasbenefited last year from Euro 2004 during May and June. Whilst such combinedinfluences have resulted in a decline in performance over the last eleven weeksin total, we are pleased to report that the like for like sales performance hasbeen positive over the last four weeks, despite the adverse influence of theLondon bombings. The rationalisation of stocks and brands relating to the original JD Fashionchain and the recently acquired Scotts business has been largely completed witha resultant improvement in the overall stock position; however this exercise hasadversely limited sales in the short term. We expect that the coordinatedapproach to the Autumn ranges currently being delivered will produce a morepositive performance. Like for like sales for the 24 weeks ended 16 July 2005 were up in the SportFascias (0.2%), but down in the Fashion Fascias (-3.4%). Overall like for likesales for the 24 weeks ended 16 July 2005 were marginally down at -0.1%. Notablyhowever, overall gross margins improved in both divisions and operating costsare within expectations. The Board remains confident that current market expectations will be met for theyear. Progress continues to be made with the store portfolio reorganisation and afurther thirteen stores (9 Sport; 4 Fashion) have been closed since the yearend. We have also opened one JD store. The rebranding of the original JD Fashionstores (ATH- and AV) to Scotts has commenced and will be a priority over thenext 12 months. The Fashion Fascias are now autonomously managed by a team, based in Cheshire,led by Rob Frost who was the Managing Director of Scotts when it was acquired inDecember 2004. The move onto new systems and the consolidation of the division'swarehousing requirement in Middlewich have now been successfully completed. Following the Pentland Group PLC's ("Pentland") offer for the entire sharecapital of the Group ("the Offer"), approximately 57% of our shares are now heldby them through their Manchester Square Enterprises Limited subsidiary. TheBoard composition remains as before, but Pentland may appoint a representativeto the Board in due course. Two members of the current Board retain share options under the old share optionscheme, which, following the Offer, have to be exercised before 30 November 2005or they will lapse. Given that a large part of the remaining exercise periodwill be a close period it is expected that those Directors will exercise theseoptions in the near future. The Board expects to present its interim results on 5 October 2005. Enquiries: Tel: 0161 767 1000 The John David Group PlcPeter Cowgill, Executive ChairmanBarry Bown, Chief ExecutiveBrian Small, Finance Director Hogarth Partnership Limited Tel: 020 7357 9477Andrew JaquesBarnaby Fry This information is provided by RNS The company news service from the London Stock Exchange