Interim Management Statement

Beale Plc

Interim Management Trading Statement and Trading Update

19 September 2013

The total Group sales including concessions and VAT were 10.5% lower for the 19 weeks to 14 September 2013 and 8.4% lower for the 45 weeks to 14 September 2013, compared to the same periods last year.

These sales decreases include the impact of the board's decision to close certain loss making stores on the cessation of leases, namely Skipton in October 2012, Maidstone in June 2013 and Cinderford in July 2013.

Like for like sales including concessions and VAT were 7.7% lower for the 19 weeks to 14 September 2013 and 7.3% lower for the 45 weeks to 14 September 2013, compared to the same periods last year.

The board's decision to exit the low margin TV and audio market in November 2012 and the decision in February 2013 not to chase sales at the expense of gross margin through highly promotionally driven offers have also had a material impact on sales, although the impact on gross profit was not as material. Sales have also been adversely affected by the unusually extreme weather patterns experienced in the UK, with wet and warm weather during the early autumn/winter 2012 season and severely cold weather during the early spring/summer 2013 season, three concessions falling into administration affecting nearly all stores, and the poor performance of a number of women's fashion concessions.

Management have responded to these challenges through ongoing work on stocking to ensure the correct mix of product resulting in a higher quality and cleaner stock profile and less discounting. This has resulted in improved gross margins during the period under review, mitigating some of the volume gross profit reduction.

Michael Hitchcock, CEO, reports "I am proud to report that everyone across the business has continued to work tirelessly over the last nine months to position the business for growth and to continue the turnaround that is taking place. The business has a great new range of products, motivated staff and greatly improved store environments and the next four months are important in the ongoing turnaround strategy."

For further information:

Beale Plc

Michael Hitchcock, Chief Executive

Tel: 01202 552022

Shore Capital

Anita Ghanekar, Edward Mansfield

Tel: 020 7408 4090