11 Nov 2010 07:00
JJB Sports Plc
11th November 2010
Interim Management Statement ("IMS")
JJB Sports plc ("JJB Sports" or the "Company") is today publishing its Interim Management Statement relating to the period from 2 August 2010 to the date of this IMS.
Current Trading
On a like-for-like* (excluding VAT) basis revenue for the period 2 August 2010 to 7 November was 11.5% higher than for the same period last year. Total Group revenue for the same period was up 9.1%.
Overall gross margin for the same period, which has been significantly affected by promotional activity, was 37.6%
Year-to-date like-for-like sales are up 13.4% compared to the equivalent period last year. Year-to-date gross margin is 40.6%.
Net debt at 7 November 2010 was £16.6 million.
The information on current trading and outlook given by the Company in its half year results on 28 September 2010 referred to the challenging prospects for UK retailers, the volatility in current sales and the need for effective promotion to stimulate sales and generate cash, albeit at the inevitable expense of margin. Like-for-like sales in the period from 27 September 2010 to 7 November 2010 increased by 13.1%, lower than anticipated after taking account of the Company's promotional initiatives and reflecting the weakening market environment. This also impacted gross margin for the same period (33.8%).
The Board believes that current trading conditions are having and will continue to have a negative impact on its expectations for the full year. However, as we said in our update on 28 September 2010, the full year outcome remains heavily dependent on our performance during the important pre-Christmas and New Year sale periods.
Business update for the period covered by this IMS
With the arrival of Kate Hayes as Trading Director on 1 November 2010, joining Ron Rome, Retail Director, Paul Mitford, HR and Training Director and Debbie Robinson, Marketing Director, the Company's Operating board is now complete; this provides a firm basis for continued operational and strategic improvement.
Following the re-opening of the Slough store in May, the Company completed the refurbishment of its stores in Wakefield, Northampton, Leicester Fosse Park, Enfield and Bath before the end of October and their performance is being closely monitored. As with Slough, the early signs are encouraging.
As reported in the half year report, Bank of Scotland, the Company's bankers, agreed in September that it would not test the EBITDAR covenant in October to enable more promotional trading.
Finally, the Company reported during October that the Serious Fraud Office was not bringing any charges against the Group. Later in the same month the Company announced the conclusion of an FSA investigation into the Company's historic compliance with the Disclosure and Transparency Rules; a fine of £455,000 was imposed on the Company, payable in 2011 on a date or dates to be determined.
* Like-for-like revenues represent that from operating units that have been trading for over 52 weeks
Enquiries
JJB Sports plc | 01942 221400 |
Keith Jones | |
Lawrence Coppock | |
Richard Manning | |
Maitland | 020 7379 5151 |
Neil Bennett | |
Emma Burdett |
A copy of this press release can also be viewed on the JJB Sports plc corporate website, www.jjbcorporate.co.uk.
About JJB Sports
JJB Sports plc (JJB: LSE) is one of the UK's leading sports retailers. The Group, headquartered in Wigan and listed on the Main Market of the London Stock Exchange, trades from 247 JJB branded retail stores in the UK and Ireland and employs over 6,500 people. Further information about the Group can be found on the Group's corporate website, www.jjbcorporate.co.uk.