10th Dec 2008 10:43
JJB Sports plc ("JJB", the "Group" or the "Company")
INTERIM MANAGEMENT STATEMENT
JJB is today publishing its Interim Management Statement relating to the period from 28th July 2008 to 7th December 2008.
TRADING UPDATE
During this period, total Group sales (excluding the Original Shoe Company and Qube), on a like-for-like basis, (on operating units that have been trading for over 52 weeks) were 7.5% lower than the same period last year. This consisted of a 6.7% increase in revenue for health clubs and a 8.9% decrease in retail sales.
The core retail gross margin achieved during the same period was 210 basis points higher than last year.
The stock holding in the retail business is 28% lower than last year.
Given the difficult trading conditions, we started our sale early, two weeks ago, and so far are pleased with the increased sales achieved, albeit at reduced gross margin. Achievement of market expectations of profit before tax and exceptional items will depend on continuing the good sales performance in the traditional January sales' period.
As announced on 1st December 2008 the Company exchanged contracts for the assignment of the leases of four retail stores for a consideration of £3.4 million and as announced on 20th October 2008 placed 11,944,360 new JJB ordinary shares with proceeds totaling approximately £3.4 million.
UPDATE ON POTENTIAL DISPOSALS
Further to the announcement on 4th December 2008, discussions continue in relation to JJB's Fitness Clubs and JJB's non-core assets and businesses. A number of enquiries have been received regarding the Fitness Clubs business in recent weeks and the Board has requested that Lazard engage with potentially interested parties. The preliminary approach for the LifeStyle division referred to in our announcement of 15th October did not result in a transaction. The LifeStyle division continues to trade at a loss and the Board continues to consider its options in respect of the future of this business.
UPDATE ON THE COMPANY'S BANKING ARRANGEMENTS
The Company's lenders Barclays, HBOS and Kaupthing have agreed that the Kaupthing £20 million bridging facility need not be repaid in full on the due date of 14th December 2008, but the Company will instead repay £20 million pro rata across the three banks today. The banks are continuing constructive discussions with the Company and are reviewing the Company's plans and forecasts with a view to agreeing a basis for providing continuing support.
Roger Lane-Smith, Non-executive Chairman of JJB, said:
"During the period we have made good progress on a number of fronts in the face of the difficult trading conditions that have afflicted the entire high street. The economic outlook is challenging but I am confident that the work we are doing will put JJB in the best possible shape to trade through it."
The Company will be hosting a conference call for analysts and investors at 11:00 this morning. Please contact Kate Heighes at Maitland on 020 7379 5151 or kheighes@maitland.co.uk for the dial-in details.
Enquiries
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JJB Sports plc Chris Ronnie David Madeley
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01942 221 400 |
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Lazard & Co., Limited Melanie Gee Gregory Bret
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020 7187 2000 |
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Maitland Neil Bennett Richard Farnsworth |
020 7379 5151 |
Lazard & Co., Limited is acting solely for JJB in connection with the matters referred to in this announcement and will not be responsible to anyone other than JJB for providing the protections afforded to clients of Lazard & Co., Limited or for providing advice in relation to the matters referred to in this announcement.
Related Shares:
JJB.L