Black's Leisure Group's total sales in the first half increased by 0.9% to £141.3 million ($254.9 mm) compared to £140.0 million ($259.3 mm) in 2005. Comparable retail sales fell by 0.5%. Profit before tax was £100,000 ($180,000) compared to £6.9 million ($12.8 mm) in 2005. Basic earnings per share were 12 pence (22 cents) compared to £11.11 ($20.57) per share in the first half of last year.
Gross margin increased slightly to 55.9% compared to 2005 when gross margins were 55.6% as price deflation caused by increased competition in certain sectors largely offset the positive effect on margins of the introduction of our exclusive ranges.
Operating costs increased in the first half of the year by £7.6 million. This is a result of three main factors; firstly the company's investment in new store openings, secondly a significant investment in the future of the business through the new commercial websites, and thirdly the company's investment in central services including the new distribution center. Management expects that these investments will begin to show benefits in the results of the Group over the next year.
