15th Apr 2008 07:00
John David Group (The) PLC15 April 2008 15 April 2008 THE JOHN DAVID GROUP PLC PRELIMINARY RESULTS FOR THE 53 WEEKS ENDED 02 FEBRUARY 2008 The John David Group Plc (the "Group"), the leading retailer of sport andathletic inspired fashion apparel and footwear, today announces its PreliminaryResults for the 53 weeks ended 02 February 2008. 2008 2007 £000 £000 % ChangeRevenue 592,240 530,581 +12% ======== ========Gross profit % 49.2% 47.5% ======== ========Operating profit (before net financing costs,exceptional 44,019 27,301 +61%items and share of results of joint venture) ======== ========Profit before tax and exceptional items 43,407 25,066 +73%Exceptional items (8,404) (7,799) -------- --------Profit before tax 35,003 17,267 +103% ======== ========Basic earnings per ordinary share 48.79p 21.52p +127%Adjusted basic earnings per ordinary share (see 57.05p 36.41p +57%note 3)Total dividend payable per ordinary share 8.50p 7.20p +18%Net cash at end of period (1) 11,752 10,932 (1) Net cash consists of cash and cash equivalents together with interest bearing loans and borrowings, loan notes and finance lease and hire purchase contracts. Highlights • Total revenue increased by 11.6% in the year and by 11.1% on a like for like basis (Sports Fascias 11.3%; Fashion Fascias (excluding Bank) 7.6%). • Gross margin improved from 47.5% to 49.2%. • Group profit before tax and exceptional items up 73% to £43.4 million (2007: £25.1 million). • Profit before tax up 103% to £35.0m (2007: £17.3m). • Positive net cash position maintained at £11.7 million (2007: £10.9 million) after acquisitions, investments and associated asset purchases in the year totalling £31.3m and net capital expenditure of £21.0 million (2007: £5.2 million). • Exceptional items of £8.4m from the continuing store portfolio rationalisation. • Final dividend payable increased by 25% to 6.0p (2007: 4.8p) bringing the total dividends payable for the year up to 8.5p (2007: 7.2p), an increase of 18%. Peter Cowgill, Executive Chairman, said: "This has been a further period of very substantial progress for the Group withexcellent organic sales growth and margin enhancement. Group profit before taxhas increased by over 100% in the year (and by 73% pre-exceptionals) throughstrong buying, merchandising and own brand performance. "The Group's recent strong performance with regards to like for like sales andgross margins means that further improvement in these areas is becoming morechallenging. Furthermore, despite recent and current performance, the currenteconomic climate and outlook dictates a note of prudence. The Board is thereforecautious about the extent of future growth in earnings." Enquiries: The John David Group Plc Tel: 0870 873 0333Peter Cowgill, Executive ChairmanBarry Bown, Chief ExecutiveBrian Small, Finance Director Hogarth Partnership Limited Tel: 020 7357 9477Andrew JaquesBarnaby FrySarah Richardson EXECUTIVE CHAIRMAN'S STATEMENT INTRODUCTION The 53 weeks ended 02 February 2008 have been a further period of verysubstantial progress for the Group with excellent organic sales growth andmargin enhancement. We have improved our profit before tax and exceptional itemsby 73% in the year to £43.4 million (2007: £25.1 million). This follows on froma 51% increase last year. Group profit before tax has increased by 103% in the year to £35.0 million(2007: £17.3 million) and Group profit after tax has increased by 127% to £23.6million (2007: £10.4 million). Group operating profit (before exceptional items) for the year was up 61% to£44.0 million (2007: £27.3 million) and comprises a Sports Fascias profit of£45.6 million (2007: £29.7 million) and a Fashion Fascias loss of £1.6 million(2007: loss of £2.4 million). ACQUISITIONS On 07 December 2007 the Group significantly increased the Fashion Fascias storebase with the addition of 49 Bank Fashion stores through the acquisition of BankStores Holdings Limited ("Bank") for a total cash cost (including fees andrepayment of debt) of £18.6 million. Bank made a positive contribution to theoperating profit of the Fashion Fascias in the second half of the year of£434,000, helped by Christmas trading. The Group also made two smaller strategic stake acquisitions in other businessesin the second half. 49% of Focus Brands Limited, a designing, licensing, andsourcing wholesaler, was acquired at a cost of £3.0 million (including fees andloans of £2.5 million made to the business) on 03 December 2007. This deal waspart of a package in which the Sergio Tacchini sub-licensed UK brand rights werealso acquired directly by JD as well as a freehold property in St Albans whichcontinues to be occupied by Focus at an arm's length rent. The results of Focusfor the short post-acquisition period are presented as 'Share of results ofjoint venture'. Additionally, on 07 November 2007, 51% of Topgrade Sportswear Limited wasacquired for a consideration of £1.2 million (including fees). We took thedecision to acquire this wholesaler of end-of-line stock because of its buyingstrength and trading knowledge, which were considered a foundation for furtherbusiness development. The results of this business had no material impact on theGroup results for the 53 weeks ended 02 February 2008. SPORTS FASCIAS The Sports Fascias' turnover increased by 10.5% during the period to £544.4million (2007: £492.8 million) with like for like sales for the year up 11.3%.Gross margin rose to 49.9% (2007: 47.6%) as a result of continuing growth in ownbrand sales. The performance of our principal Sports Fascias, JD and Size, has been verystrong during the last year as a result of the current management team'sconsistent strategy over the last four years of eliminating underperformingstores, improving gross margins and reducing terminal stocks. The performance ofthe buying, merchandising and own brand departments has been excellent. In addition, the Group has conducted an ambitious programme of store developmentwith 13 new store openings and 28 store refurbishments. This programme willcontinue through most of 2008 and represents the most substantial refurbishmentprogramme the Group has ever undertaken. These store refurbishments often resultin full store closures for a number of weeks but we expect this to be justifiedby the subsequent performance. We have also made our most significant investmentto date in merchandising systems and training during the year. FASHION FASCIAS The Fashion Fascias now have two separately managed young branded fashionbusinesses trading as Scotts and Bank. The Scotts Fascia rationalisation has continued throughout the past year withunderperforming stores continuing to be eliminated and the remaining ATH- and AVstores being converted to the Scotts Fascia. There is now only one ATH- storeremaining in the 38 store portfolio. The Open Fascia no longer trades followingthe disposal of Glasgow Open in September 2007. In spite of a positive like for like sales performance in Scotts of 7.6% for theyear, turnover for this business declined to £34.5 million (2007: £37.7 million)as a result of the store disposal programme. Six underperforming stores wereclosed in the year. Losses were borne in most of these stores before they weredisposed of, meaning that the results suffered from the early year losses, anddid not benefit from the normal anticipated Christmas trading period profit inthe year. Gross margin declined to 44.0% (2007: 46.3%), principally as a resultof a clearance of stock following both the closure of Glasgow Open and asubstantial change in the management team mid year. Like for like sales andmargin performance have been encouraging so far this year. Last year we noted that the young branded fashion sector remained competitiveand that we believed the Fashion Fascias would only deliver profit to the Groupwhen its major property issues were resolved. The disposals within Scotts thisyear represent significant steps towards this goal. We are now very focussed onimproving the buying and merchandising decisions to deliver results from thisFascia. The head office of Scotts is being transferred to the Group's offices inBury in the next month and we believe that this move will further assist thisobjective. The acquisition of Bank gives the Group the opportunity to develop our presencein the young aspirational fashion sector and consequently provide a platform forgrowth through rollout. However, in advance of any rollout, the management teamwill need to ensure that the store model and brand offer can produce appropriatereturns from such expansion. We also expect the head office of Bank to move intothe Group's offices in Bury in May 2008. GROUP PERFORMANCE Revenue Total revenue increased by 11.6% in the year to £592.2 million (2007: £530.6million) as a result of the Group's positive like for like sales performance of11.1% (excluding the acquired Bank stores), combined with the turnover from theacquisitions made in the year and a full year effect from the ex HargreavesAirport stores. Gross margin We are pleased with the progress made in enhancing Group gross margin from 47.5%to 49.2%. Further progress on gross margin will be much more difficult toachieve because the scope both for stock management improvement and expansion ofown brand penetration is now much reduced. Overheads Selling and distribution overheads (excluding exceptionals), which include allstore costs, have been well contained with an increase of 6% against a salesincrease of 12% but normal administrative overheads have increased to £25.8mfrom £17.4m. This latter increase includes provision for £4m of a £5m loyaltyand retention package for the Executive Chairman, designed to ensure that hestays with the business for at least another two years. £3m of this was paid inMarch 2008 and the final two payments of £1m each will be made in March 2009 andMarch 2010, 50% of each further payment being dependent on performance. Furtherdetails of this and of LTIP schemes which will incentivise retention andperformance for the wider executive management team will be published in theRemuneration Report and the Shareholder Circular to be sent to shareholdersshortly. The LTIP schemes will require shareholder approval. The administrativeoverheads also include substantial increases in systems consultancy andmerchandising training associated with improvements in merchandise planning andstock management. Operating profits and results Operating profit before net financing costs, exceptional items and share ofresults of joint ventures increased by £16.7 million to £44.0 million (2007:£27.3 million) which represents a 61% increase on last year. Group operatingmargin (before net financing costs, exceptional items and share of results ofjoint venture) has therefore increased to 7.4% (2007: 5.1%). Although exceptional items increased slightly to £8.4 million (2007: £7.8million), Group operating profit after exceptional items but before share ofresults of joint ventures and net financing costs rose sharply from £19.5million to £35.6 million. The exceptional items comprise: £m Lease variation costs 2.9Impairment of fixed assets in underperforming stores 2.5Loss on disposal of fixed assets 3.0 -------- Total exceptional charge 8.4 -------- The lease variation costs were incurred in negotiating break options in onerousleases for stores in Liverpool, Gateshead Metrocentre and Glasgow Open. Theimpairment charge is on a further seven Sports stores and seven Fashion storeswhich are earmarked for disposal if suitable deals can be negotiated. Debt reduction and working capital Net financing costs are down from £2.2 million to £0.5 million as a result ofcontinuing core debt reduction. Year end net cash of £11.7 million represented a £0.8m improvement on theposition at January 2007 (£10.9 million). This net cash balance has beenachieved after expenditure on acquisitions, investments and associated assetpurchases in the year totalling £31.3 million and net capital expenditure of£21.0 million (2007: £5.2 million). Gross capital expenditure was £19.8 million(2007: £14.1 million) being £18.9 million in the Sports Fascias and £0.9 millionin the Fashion Fascias. The capital expenditure in the year included £7.8million on new stores and £10.2 million on refurbishments. Investment in thestore portfolio is likely to increase in the current year with three new SportsFascias stores already having been opened since the year end. Excluding the impact from acquisitions, stocks were reduced in the year by afurther £0.9 million. The other major element of our working capital that haschanged significantly has been trade and other payables within currentliabilities which have increased by £21.5 million to £80.4 million. Theacquisitions have contributed £13.4 million of this increase. Suppliers continueto be paid to agreed terms and settlement discounts are taken. STORE PORTFOLIO We have continued working hard to rationalise our store portfolio and it ispleasing to be reporting further substantial progress this year. We have closeda further 36 underperforming stores during the period with three further storesin the Sports Fascias having been closed since the year end. This programme isnow much closer to completion although we continue to find that new developmentsrender older locations redundant whether or not we take new stores in thosedevelopments. During the year, store numbers moved as follows: Sports Fascias Units '000 sq ft Start of year 362 1,098New stores 13 45Closures (30) (54) ------- ---------Close of year 345 1,089 ------- --------- Fashion Fascias Units '000 sq ft Start of year 44 117Acquisition Of Bank Fashion 49 106Closures (6) (32) ------- ---------Close of year 87 191 ------- --------- DIVIDENDS AND EARNINGS PER ORDINARY SHARE The Board proposes paying a final dividend of 6.00p (2007: 4.80p) bringing thetotal dividend payable for the year to 8.50p (2007: 7.20p) per ordinary share.The proposed final dividend will be paid on 04 August 2008 to all shareholderson the register at 09 May 2008. The final dividend has been increased by 25%with total dividends payable for the year increased by 18%. The adjusted earnings per ordinary share before exceptional items was 57.05p(2007: 36.41p). The basic earnings per ordinary share was 48.79p (2007: 21.52p). CURRENT TRADING AND OUTLOOK Given the weather and the timing of Easter, trading since the year end has beenencouraging with like for like sales for the Sports Fascias for the 10 weeksended 12 April 2008 up 4.0%. The Fashion Fascias have also had an encouragingstart to the year with like for like sales for the same 10 week period up 4.9%.The Group like for like sales for this 10 week period are therefore up 4.2%. In the current year, the Group is operating against exceptionally strongcomparatives. Additionally, the Focus and Topgrade investments are not expectedto produce returns in the next two years, other than of a defensive nature. TheGroup's recent strong performance with regards to like for like sales and grossmargins means that further improvement in these areas is becoming morechallenging. Furthermore, despite recent and current performance, the currenteconomic climate and outlook dictates a note of prudence. The Board is thereforecautious about the extent of future growth in earnings. EMPLOYEES The Group's excellent results would not have been possible without the supportof a dedicated and large workforce for which the Board are very grateful. We arecommitted to continue increasing training and other support to enhance boththeir career prospects and our own customer service. Peter CowgillExecutive Chairman15 April 2008 CONSOLIDATED INCOME STATEMENTfor the 53 weeks ended 02 February 2008 53 weeks to 52 weeks to 02 February 2008 27 January 2007 Continuing Continuing Operations Operations Note £000 £000 REVENUE 592,240 530,581Cost of sales (300,813) (278,331)-------------------------------------------------------------------------------- GROSS PROFIT 291,427 252,250Selling and distribution expenses -normal (222,720) (209,270)Selling and distribution expenses -exceptional (8,404) (3,799)Administrative expenses - normal (25,774) (17,409)Administrative expenses - exceptional - (4,000)Other operating income 1,086 1,730-------------------------------------------------------------------------------- OPERATING PROFIT 35,615 19,502--------------------------------------------------------------------------------Before exceptional items 44,019 27,301Exceptional items 2 (8,404) (7,799)-------------------------------------------------------------------------------- OPERATING PROFIT 35,615 19,502Share of results of joint venture (145) -Financial income 297 177Financial expenses (764) (2,412)-------------------------------------------------------------------------------- PROFIT BEFORE TAX 35,003 17,267Income tax expense (11,416) (6,879)-------------------------------------------------------------------------------- PROFIT FOR THE PERIOD 23,587 10,388-------------------------------------------------------------------------------- Attributable to equity holders of the parent 23,549 10,388Attributable to minority interest 38 ---------------------------------------------------------------------------------Basic earnings per ordinary share 3 48.79p 21.52p--------------------------------------------------------------------------------Diluted earnings per ordinary share 3 48.79p 21.52p-------------------------------------------------------------------------------- The Group has no recognised gains or losses other than the results reportedabove. CONSOLIDATED BALANCE SHEETas at 02 February 2008 As at As at 02 February 2008 27 January 2007 £000 £000ASSETSIntangible assets 41,371 20,562Property, plant and equipment 53,622 41,919Other receivables 5,025 2,753Investment property 4,151 -Equity accounted investment in joint venture 360 ---------------------------------------------------------------------------------TOTAL NON-CURRENT ASSETS 104,529 65,234-------------------------------------------------------------------------------- Inventories 58,669 51,469Trade and other receivables 15,899 13,012Cash and cash equivalents 11,969 11,230--------------------------------------------------------------------------------TOTAL CURRENT ASSETS 86,537 75,711-------------------------------------------------------------------------------- TOTAL ASSETS 191,066 140,945-------------------------------------------------------------------------------- LIABILITIESInterest bearing loans and borrowings (134) (106)Trade and other payables (80,389) (58,849)Provisions (1,893) (2,130)Income tax liabilities (9,147) (3,477)--------------------------------------------------------------------------------TOTAL CURRENT LIABILITIES (91,563) (64,562)-------------------------------------------------------------------------------- Interest bearing loans and borrowings (83) (192)Other payables (11,839) (8,189)Provisions (4,726) (4,829)Deferred tax liabilities (46) (1,571)--------------------------------------------------------------------------------TOTAL NON-CURRENT LIABILITIES (16,694) (14,781)-------------------------------------------------------------------------------- TOTAL LIABILITIES (108,257) (79,343)-------------------------------------------------------------------------------- TOTAL ASSETS LESS TOTAL LIABILITIES 82,809 61,602-------------------------------------------------------------------------------- CAPITAL AND RESERVESIssued ordinary share capital 2,413 2,413Share premium 10,823 10,823Retained earnings 69,573 48,366-------------------------------------------------------------------------------- TOTAL EQUITY 82,809 61,602-------------------------------------------------------------------------------- ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 81,627 61,602ATTRIBUTABLE TO MINORITY INTEREST 1,182 - RECONCILIATION OF MOVEMENT IN CAPITAL AND RESERVESas at 02 February 2008 Issued Ordinary Share Share Retained Minority Total Capital Premium Earnings Interest Equity £000 £000 £000 £000 £000 Balance at 28 January 2006 2,413 10,823 41,357 - 54,593Total recognisedincome and expense - - 10,388 - 10,388Dividends - - (3,379) - (3,379)-------------------------------------------------------------------------------- Balance at 27 January 2007 2,413 10,823 48,366 - 61,602Minority interest onacquisition - - - 1,144 1,144Total recognisedincome and expense - - 23,549 38 23,587Dividends - - (3,524) - (3,524)-------------------------------------------------------------------------------- Balance at 02 February 2008 2,413 10,823 68,391 1,182 82,809-------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOWSfor the 53 weeks ended 02 February 2008 53 weeks to 52 weeks to 02 February 2008 27 January 2007 £000 £000CASH FLOWS FROM OPERATING ACTIVITIESProfit for the period 23,587 10,388Share of results of joint venture 145 -Income tax expense 11,416 6,879Financial expenses 764 2,412Financial income (297) (177)Depreciation and amortisation of non-current assets 12,421 11,888Impairment of non-current assets 2,535 5,482Loss / (profit) on disposal of non-current assets 3,015 (1,491)Decrease in inventories 2,955 5,299Decrease / (increase) in trade and other receivables 1,396 (475)Increase in trade and other payables and provisions 6,877 1,488Interest paid (764) (2,412)Income taxes paid (7,619) (1,712)----------------------------------------------------------------------------------------- NET CASH FROM OPERATING ACTIVITIES 56,431 37,569----------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIESInterest received 297 177Proceeds from sale of non-current assets 1,257 11,099Disposal costs of non-current assets (2,432) (2,188)Acquisition of intangible assets (4,279) -Acquisition of property, plant and equipment (19,407) (13,665)Acquisition of investment property (4,160) -Acquisition of non-current other receivables (389) (434)Cash consideration of acquisitions net of cash acquired (1,135) (5,000)Investment in joint venture (505) -Amounts loaned to joint venture (2,479) ------------------------------------------------------------------------------------------ NET CASH USED IN INVESTING ACTIVITIES (33,232) (10,011)----------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIESRepayment of interest bearing loans and borrowings (18,917) (22,000)Payment of finance lease and hire purchase contracts (19) (285)Dividends paid (3,524) (3,379)----------------------------------------------------------------------------------------- NET CASH USED IN FINANCING ACTIVITIES (22,460) (25,664)----------------------------------------------------------------------------------------- NET INCREASE IN CASH AND CASH EQUIVALENTS 739 1,894----------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 11,230 9,336----------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 11,969 11,230----------------------------------------------------------------------------------------- ANALYSIS OF NET CASHas at 02 February 2008 At 27 On At 02 January Acquisition February 2007 Of Subsidiary Cashflow 2008 £000 £000 £000 £000 Cash at bank and in hand 11,230 189 550 11,969-------------------------------------------------------------------------------- Cash and cash equivalents 11,230 189 550 11,969 Interest bearing loansand borrowingsCurrent - (18,796) 18,796 -Loan notes (287) - 121 (166)Finance lease and hirepurchase contracts (11) (59) 19 (51)-------------------------------------------------------------------------------- 10,932 (18,666) 19,486 11,752-------------------------------------------------------------------------------- 1. SEGMENTAL ANALYSIS The Group manages its business activities through two Divisions - Sport andFashion. Revenue and costs for the 53 weeks ended 02 February 2008 are readilyidentifiable for each segment. The Divisional results for the 53 weeks to 02 February 2008 are as follows: INCOME STATEMENT Sport Fashion Total £000 £000 £000 Revenue 544,372 47,868 592,240--------------------------------------------------------------------------------------Operating profit/(loss) before financing and exceptional items 45,615 (1,596) 44,019Exceptional items (8,574) 170 (8,404)--------------------------------------------------------------------------------------Operating profit / (loss) 37,041 (1,426) 35,615Share of results of joint venture (145)Financial income 297Financial expenses (764)--------------------------------------------------------------------------------------Profit before tax 35,003Income tax expense (11,416)--------------------------------------------------------------------------------------Profit for the period 23,587-------------------------------------------------------------------------------------- The Board consider that share of results of joint venture and net funding costs arecross-divisional in nature and cannot be allocated between the Divisions in ameaningful way. BALANCE SHEET Sport Fashion Unallocated Total £000 £000 £000 £000 Total assets 127,546 47,260 16,260 191,066--------------------------------------------------------------------------------------Total liabilities (80,450) (18,614) (9,193) (108,257)-------------------------------------------------------------------------------------- Unallocated assets and liabilities relate to items which are cross-divisional includinginterest in joint venture, tax, elements of goodwill and bank debt. OTHER SEGMENT INFORMATION Sport Fashion Total £000 £000 £000 Capital expenditure:Property, plant and equipment 18,491 916 19,407Investment property 4,160 - 4,160Non-current other receivables 373 16 389Goodwill on acquisition - 11,109 11,109Other intangible assets 4,279 5,481 9,760-------------------------------------------------------------------------------------- Depreciation, amortisation and impairments:Depreciation and amortisation of non-current assets 10,918 1,503 12,421Impairment of non-current assets 1,500 1,035 2,535-------------------------------------------------------------------------------------- The comparative Divisional results for the 52 weeks to 27 January 2007 are asfollows: INCOME STATEMENT Sport Fashion Total £000 £000 £000 Revenue 492,833 37,748 530,581--------------------------------------------------------------------------------------Operating profit/(loss) before financing and exceptional items 29,658 (2,357) 27,301Exceptional items (4,786) (3,013) (7,799)--------------------------------------------------------------------------------------Operating profit / (loss) 24,872 (5,370) 19,502Financial income 177Financial expenses (2,412)--------------------------------------------------------------------------------------Profit before tax 17,267Income tax expense (6,879)--------------------------------------------------------------------------------------Profit for the period 10,388-------------------------------------------------------------------------------------- The Board consider that net funding costs are cross-divisional in nature and cannotbe allocated between the Divisions in a meaningful way. BALANCE SHEET Sport Fashion Unallocated Total £000 £000 £000 £000 Total assets 110,792 14,253 15,900 140,945--------------------------------------------------------------------------------------Total liabilities (54,650) (19,645) (5,048) (79,343)-------------------------------------------------------------------------------------- Unallocated assets and liabilities relate to items which are cross-divisionalincluding tax, goodwill and bank debt. OTHER SEGMENT INFORMATION Sport Fashion Total £000 £000 £000 Capital expenditure:Property, plant and equipment 11,045 2,620 13,665Non-current other receivables 339 95 434Goodwill on acquisition 4,045 - 4,045--------------------------------------------------------------------------------------Depreciation, amortisation and impairments:Depreciation and amortisation ofnon-current assets 10,625 1,263 11,888Impairment of non-current assets 2,840 2,642 5,482-------------------------------------------------------------------------------------- The financial operation and assets of the Group are principally located in theUnited Kingdom. Accordingly, no geographical analysis is presented. 2. EXCEPTIONAL ITEMS 53 weeks to 52 weeks to 02 February 27 January 2008 2007 £000 £000 Loss / (profit) on disposal ofnon-current assets 3,015 (1,491)Provision for rentals on onerous propertyleases - 1,558Impairment of property, plant and equipment 2,535 1,482Lease variation costs 2,854 2,250--------------------------------------------------------------------------------Selling and distribution expenses -exceptional 8,404 3,799-------------------------------------------------------------------------------- Impairment of intangible assets - 4,000--------------------------------------------------------------------------------Administrative expenses - exceptional - 4,000-------------------------------------------------------------------------------- 8,404 7,799-------------------------------------------------------------------------------- 3. EARNINGS PER ORDINARY SHARE Basic and diluted earnings per ordinary share The calculation of basic and diluted earnings per ordinary share at 02 February2008 is based on the profit attributable to ordinary shareholders of £23,549,000(2007: £10,388,000) and a weighted average number of ordinary shares outstandingduring the 53 weeks ended 02 February 2008 of 48,263,434 (2007: 48,263,434),calculated as follows: 53 weeks to 52 weeks to 02 February 27 January 2008 2007 Issued ordinary shares atbeginning and end of period 48,263,434 48,263,434--------------------------------------------------------------------------------Weighted average number ofordinary shares during the period 48,263,434 48,263,434-------------------------------------------------------------------------------- Adjusted basic and diluted earnings per ordinary share Adjusted basic and diluted earnings per ordinary share have been based on theprofit attributable to ordinary shareholders for each financial period butexcluding the post tax effect of certain exceptional items. The Directorsconsider that this gives a more meaningful measure of the underlying performanceof the Group. Note 53 weeks to 52 weeks to 02 February 27 January 2008 2007 £000 £000 Profit attributable to ordinaryshareholders 23,549 10,388Exceptional items excluding (loss) /profit on disposal of non-current assets 2 5,389 9,290Tax relating to exceptional items (1,405) (2,107)--------------------------------------------------------------------------------Profit attributable to ordinaryshareholders excluding exceptional items 27,533 17,571-------------------------------------------------------------------------------- Adjusted basic earnings per ordinary share 57.05p 36.41p-------------------------------------------------------------------------------- Adjusted diluted earnings per ordinary share 57.05p 36.41p -------------------------------------------------------------------------------- 4. ACCOUNTS These figures are abridged versions of the Group's full accounts for the 53weeks ended 02 February 2008 and do not constitute the Group's statutoryaccounts within the meaning of Section 240 of the Companies Act 1985. TheGroup's auditor has audited the statutory accounts of the Group and has issuedan unqualified audit opinion thereon within the meaning of Section 235 of theCompanies Act 1985 and have not made any statement under Section 237(2) or (3)of the Companies Act 1985 for the 53 weeks ended 02 February 2008. The comparative figures for the 52 weeks ended 27 January 2007 do not constitutethe Group's consolidated financial statements for that financial period. Thoseaccounts have been reported on by the Group's auditors and delivered to theRegistrar of Companies. The report of the auditor was unqualified and did notcontain statements under Section 237(2) or (3) of the Companies Act 1985. Theseaccounts were delivered to the Registrar of Companies following the AnnualGeneral Meeting. Copies of full accounts will be sent to shareholders in due course. Additionalcopies will be available from The John David Group Plc, Hollinsbrook Way,Pilsworth, Bury, Lancashire, BL9 8RR or online at www.thejohndavidgroup.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JD Sports