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2 Dec 2010 07:00
2 December 2010
JJB Sports plc
Trading Update
Current trading and outlook
Since publication of the Company's IMS on 11 November 2010, trading conditions have remained extremely challenging and like for like sales have remained below expectations. The Company believes that this will be further exacerbated by current adverse weather conditions.
At this stage, with two months of important trading remaining before the year end, covering the pre-Christmas and New Year sale periods, the outlook for the full year remains uncertain.
The performance of the six transformed stores continues to be encouraging, with sales 11% above the Company average and money margin 21% above the Company average, measured in the period from 1 November 2010 to 28 November 2010.
Update on financing of the business
At the time of publication of the Company's half year results, the Group's forecasts did not show any funding shortfalls or breaches of financial covenants in the next 12 months, but as part of their going concern assessment, the directors highlighted the uncertainties inherent in the Group's forecasts if future trading was not in line with expectations.
In light of continued difficult trading conditions, the Company now believes that it is likely that it will breach certain financial covenants in the £25 million revolving facility provided by Bank of Scotland ("BoS") when they are next tested at the end of January 2011. The Company is actively engaged in constructive discussions with BoS and their advisers in relation to the testing of these financial covenants and more generally in relation to the future financing of the business.
Separately, and again as highlighted in the Company's half year results, the Company is exploring further business restructuring options and considering alternative sources of finance.
BoS have welcomed the steps taken by management and continue to be supportive.
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 6,300 people. Further information about the Group can be found on the Group's corporate website, www.jjbcorporate.co.uk.
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