MOSB.L Regulatory News (MOSB)

8 Aug 2006 07:01

Moss Bros Group PLC08 August 2006 MOSS BROS GROUP PLC Pre-close statement Moss Bros Group Plc, the UK men's fashion retailer, today reports on tradingahead of entering a close period for the half year ending 29 July 2006. In line with general trends experienced in the menswear retail sector, the firstsix months of the year were challenging; and were particularly affected byunusual weather conditions and the Football World Cup. Sales for the 26 weeks increased by 1.6% on last year but like for like saleswere down -0.75%. The fall in like for like sales followed seven consecutivehalf year periods of like for like sales growth. Retail gross profit margin forthe half was up +0.3% to 53.4% Due to significant increases in property and utility costs, fixed costs were up6.6% lfl. Controllable costs were down 0.1% lfl. The increase in fixed costs hasa disproportionately larger effect on the profits for the first half of the yearwhich has significantly lower sales than the second half. The average cash balance increased by £1.6 million from £6.8 million to £8.4million. The closing cash balance was £10.5million. After adjusting for newstores the stock was level on last year and the stock age profile has notdeteriorated. Philip Mountford, Chief Executive, commented: 'The Company has reacted well to the challenging retail environment, but theeffect of the World Cup and the unusual weather has impacted on tradingthroughout June and July. Prior to the World Cup, the business achieved positivecomparable sales of +1.6%. The World Cup cost the business £1.1 million in lostsales. The management expects that the Company will have a stronger second half andremains focused on continuing to expand the core Moss fascia. Nine new storeswere opened during the first half and initial performance is encouraging." The announcement of the Company's half-year results will be made on 12th October2006. For further information: Philip MountfordChief Executive Andrew BarclayHead of Marketing 020 7447 7394 This information is provided by RNS The company news service from the London Stock Exchange