16 Sep 2010 07:00
BEALE PLC
INTERIM MANAGEMENT STATEMENT
TRADING UPDATE - SEPTEMBER 2010
16 September 2010
The Company is pleased to report that despite challenging trading conditions, total Group sales including concessions and VAT for the 45 weeks to 11 September 2010 were 0.8% higher than the previous year. The past quarter has been most productive for the Group, with two new stores added to the portfolio.
Robbs of Hexham was acquired from the administrators in early June. A new fifteen year lease was agreed with the landlord and following an extensive review of the operation and significant capital investment the store was refurbished and relaunched on schedule and within budget on 1 September.
The Group was pleased to complete the second acquisition on 5 September, signing a twenty five year lease on the anchor store to The Market Place shopping centre in Rochdale. The former Westgate department store will trade under the name of Whitakers from completion of the first phase refurbishment in October.
Like for like sales including concessions and VAT for the 45 weeks to 11 September 2010, were 1.7% lower than the previous year, being adversely affected by reduced big ticket sales. There has been strong sales growth from womenswear, toys and linens.
The achieved gross margin including concessions for the second half-year is marginally below the previous year, primarily due to the product mix of Hexham which includes a food hall. The Group is maintaining a vigorous approach to expense control, with costs for the period on a like for like basis being lower than the previous year.
The board is most encouraged by the early results of Hexham and expects the store to contribute to Group performance in the new financial year. The investment we have made in our recent acquisitions will limit the overall performance of the Group in the current financial year.
The board is also pleased to announce that in early September we have been able to secure the Group's banking facilities. A £9.0m term loan with an operating overdraft of £112,000 has been renewed with HSBC for a two year period.
The retail outlook continues to be challenging, but the Board believes the strategies and actions that have been and are being taken are beginning to show improving returns. We shall report more fully on progress when we announce our results for the 52 weeks ending 30 October 2010.
For further information:
Beale PLC
Tony Brown, Chief Executive
Ken Owst, Finance Director
Tel: 01202 552022
Shore Capital
Andrew Raca
Anita Ghanekar
Tel: 020 7408 4090
About Beale
The Company offers branded, functional and aspirational merchandise for men, women and the home from 13 department stores in England. The stores mostly trade under the well established Beales brand, apart from Broadbents & Boothroyds (Southport), Whitakers (Bolton), Denners (Yeovil), Robbs (Hexham) and Whitakers (Rochdale).