26th Feb 2008 07:00
JJB Sports PLC26 February 2008 JJB Sports PLC Sale of Soccer Domes to Powerleague Fives Ltd ("Powerleague") JJB Sports PLC ("JJB") today announces the sale of its 5 UK Soccer Domesdivision to Powerleague (a subsidiary of Powerleague Group plc) for a cashconsideration of £17.4m. At the year ended 27 January 2008, the division's grossassets were £11.3m and it generated a net profit before tax of £0.8m on aturnover of £6.2m, as extracted from management accounts. All proceeds from thesale will be re-invested as part of JJB's strategy of re-energising its retailstores. As part of the sale agreement, JJB will retain ownership of the leasehold sitesand continue trading from the attached retail stores and healthclubs.Powerleague will lease from JJB the Soccer Domes as well as the wet salesfacilities within the Soccer Domes and will pay annual rent and rates to JJB. In addition, JJB has entered into a 5 year Sponsorship agreement asPowerleague's official Sports Retailer, giving JJB access to over 120,000 activegrassroots footballers who play on a weekly basis. JJB's Soccer Domes operate out of locations in Manchester, Wigan, Derby,Blackburn and North Shields and have a total of 69 pitches (57 indoors). Chris Ronnie, Chief Executive of JJB commented: "The sale of our Soccer Domes business to Powerleague is representative of ourstrategy of focusing on re-energising our retail offering whilst at the sametime looking for opportunities to increase the number, and profitability, of ourcombined healthclubs and retail stores. "I have every confidence that Powerleague, the premier operator of 5-a-sidefootball in the UK, will successfully integrate the Soccer Domes into its ownbusiness. Many joint opportunities exist for both companies to work together andwe look forward to developing these with Powerleague's management." ENDS For further information, please contact: JJB Sports 01942 221400Chris Ronnie, Chief ExecutiveDavid Madeley, Commercial Director Maitland 020 7379 5151Charlotte WalshRichard Farnsworth This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
JJB.L