At the AGM of The John David Group Plc, reported that results for the 24 weeks ended July 15, 2006 have improved in both groups. The non-Allsports Sports stores are now up by 4.0%, having benefited to some extent from the World Cup. The Fashion locations are now down by only -0.6%.
The overall performance of the acquired Allsports property portfolio, which continues to be refocussed, remains satisfactory and the acquisition is proving useful in demonstrating varying product preferences in different localities. Overall gross margins continue to improve gradually in both Fascias and operating costs are in line
with expectations.
The Board remains confident that current trading remains in line with its
expectations.
The main development in the business since we last reported has been the
acquisition on 23 June 2006 of 14 airport stores in various terminals at
Heathrow, Gatwick and Stansted from Hargreaves (Sports) Limited. The Hargreaves
business was acquired earlier in the year by Sportsworld International Limited
which has a holding of approximately 10% in the Group. The consideration for
this transaction was £5 million. The Board believes that airport retailing is
particularly relevant to the Group’s product offer and that these stores
complement the Manchester Airport store acquired last year with Allsports.
Progress also continues to be made with the rationalisation of the legacy store
portfolio from which a further 11 stores (8 Sport; 3 Fashion) have been closed
since the year end and two small stores have been opened in the Sports Fascias.
