15 Sep 2011 16:57
BEALE PLC
INTERIM MANAGEMENT STATEMENT AND TRADING UPDATE
TRADING UPDATE - SEPTEMBER 2011
15 September 2011
The Company reports that, in the face of challenging trading conditions, the total Group sales including concessions and VAT for the first 19 weeks of the second half year, to 10 September 2011, were 53.4% higher than the previous year. This was driven by the acquisition of 19 Westgate department stores from Anglia Regional Co-operative Society Limited which was completed on 22 May 2011 (the "Acquisition"). Like for like sales including concessions and VAT for the 19 weeks were 7.0% lower than the previous year.
The total Group sales including concessions and VAT for the 45 weeks to 10 September 2011 were 22.9% higher than the previous year. Like for like sales including concessions and VAT for the 45 weeks were 8.1% lower than the previous year, having been adversely affected by reduced sales of big ticket items such as furniture and electrical equipment and by the heavy snows before last Christmas.
The Acquisition increased the number of stores that the Group operates from 13 to 32.
The delayed completion of the Acquisition has affected the trading performance of the acquired stores. In addition, all the Company's stores have been operating against a backdrop of the difficult trading environment reducing both gross sales and margins. The effect has been particularly marked in electrical sales, which has had a significant impact on the acquired stores which have a large electrical business.
As a result the Company expects gross sales and margins for the financial year to be reduced resulting in a substantial increase in losses before tax for the year to 29 October 2011. Management remain confident in the mitigating actions that have been put in place.
For further information:
Beale PLC
Tony Brown, Chief Executive
Ken Owst, Finance Director
Tel: 01202 552022
Shore Capital
Anita Ghanekar
Edward Mansfield
Tel: 020 7408 4090