JJB.L Regulatory News (JJB)

17 Dec 2009 07:00



JJB Sports plc

Interim Management Statement

JJB Sports plc ("JJB" or the "Company") is today publishing its Interim Management Statement for the 20 week period to 13 December 2009.

Trading Update

Group revenue for the period to 13 December 2009 was 52% lower than for the same period last year. On a like-for-like basis (on operating units which have been trading for over 52 weeks) the total revenue was 29% lower.

Like for like sales have shown some improvement since the half year. August was -37%, September and October 

-27% and November -21%. However, like-for-like sales have fallen back to -32% in the first three weeks of December because last year the Sale started on 25 November 2008 and continued to March 2009. This year's sale will start on 26 December and we expect to launch the new Spring ranges before the end of January.

Overall gross margin has improved since the first half year by 12 percentage points to 46% for the 20 week period to 13 December.  This is 90 basis points lower than the comparative period last year.

We are beginning to take delivery of the new stock with the result that the stock holding has improved since the half year when it was £50m (56% lower than last year), and is now 19% lower than the same period last year at £81m.

Update on Capital Raising

Following the successful £100m capital raising on 28 October 2009, 400m new ordinary shares of 5p were listed on the London Stock Exchange on 3 November.  The net proceeds of approximately £94m were used to pay down the Company's borrowings with Bank of Scotland of £30.5m. The facility has now been amended to a 3 year £25m facility expiring on 30 September 2012. 

We were very pleased with the support received from existing and new shareholders.  Raising this capital through a Firm Placing and Placing and Open Offer has assisted in widening the Company's shareholder base. 

On 9 December 2009 J D Sports Fashion plc gave notification that they had disposed of their 9.99% holding in JJB and that they no longer held any interest in our shares.

Chief Executive

On 10 December 2009, the Company announced the appointment of Keith Jones as the new Chief Executive.  His start date will be on or before the 1 March 2010.  Mr Jones is currently employed as Group Retail Director of DSG international plc, the electrical retail group, where he has spent the last ten years in a variety of senior roles.

Outlook

We do not expect to receive our full stock package until the first quarter of 2010.  Consequently we continue to be cautious about Christmas and New Year and expect that trading within the current environment will remain difficult. 

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