However, JJB, along with many other retailers, cannot escape the effects of what is clearly an economic downturn in the retail industry which in turn leads to margin pressure as retailers seek to maintain market share. Current trading conditions continue to be difficult, although the decrease in like-for-like revenue for the 10 weeks to 9 October 2005 was 4.3%, an improvement over the results for the 26 weeks to 31 July 2005.Ĭommenting today, Roger Lane-Smith, Non-Executive Chairman, said, “These are the first results since I was appointed Chairman in July and it is disappointing for me to present results which show a lower profit than that achieved last year.The interim dividend is maintained at the same level as last year.Increase in operating profit, before a share of head office and distribution centre costs, from £4.5 million to £7.6 million, benefiting from the change in the calculation of depreciation of £1.6 million. The increased rate of expansion within the Leisure Division has seen an increase in revenue of 37.8% and an.
Penalty of £1.3 million (2004: restated £NIL). 2005 operating profit benefited from a change in the basis of calculation of depreciation of £4.3 million, and from the creation of provisions relating to the OFT Operating profit fell from £27.4 million to £17.6 million.Increased health club revenue on which a materially higher gross margin is achieved. The gross margin increased due both to a slightly higher gross margin obtained in the retail stores together with.The high street, together with the impact of replica kit sales during the Euro 2004 tournament in the comparativeįigures for which there was no equivalent competition in 2005. Like-for-like revenue decreased by 8.8% in the face of difficult trading conditions and strong competition on.“We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.JJB Sports, UKs largest sports retailer, announced its interim results for the 26 weeks to 31 July 2005.
“Unfortunately the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties,” he said. David McCorquodale, a corporate finance partner at KPMG who led the sales process, said that more than 100 parties had expressed interest in buying parts of the company, but none had been viable. The administration is being handled by financial services firm, KPMG. The company has been struggling to stay afloat for a number of years, after a number of poor acquisitions made between 20 saddled it with significant debts. The chain’s remaining 133 stores were unable to be saved and were closed with immediate effect.
It has also purchased the freehold of JJB’s Wigan headquarters. Sports Direct has also bought up all of the remaining JJB stock and Slazenger Golf brand licences. Sports Direct, a long-time arch rival of the chain, scooped up 20 of the beleaguered chain’s stores in a deal worth £24 million, saving around 550 jobs, including those of warehouse staff. Administrators appointed to JJB Sports were able to sell on 20 of the chain’s 153 national stores before the company finally collapsed into administration last night.