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JJB profits slump
Profits at JJB Sports plunge with the group blaming a lack of major football tournaments for the fall
Revenue was down 4.3 per cent to £365 million with operating profit down 37 per cent to £11.6 million.
The Health club division fared better, as revenue increased 21.2 per cent to £33.1 million (2006:£27.3 million.) A further 5 combined health clubs/superstores are planned to open in the second half of the current year and 14 openings planned for next year.
Commenting today, Roger Lane-Smith, Non-executive Chairman, said, ‘Although we expected a fall in profits with no major football tournament this year, these results are still disappointing. Under the leadership of our new Chief Executive, Chris Ronnie, we are implementing measures to ensure we reduce our dependency on tournament years and improve the performance of all product categories in our retail stores, with particular focus on own brands.
Whilst the performance of our retail division has been worse than expected, our leisure division continues to expand and is now contributing substantially to overall Group revenue. This expansion will continue with further sites identified over the next few years. I look forward to the next year with enthusiasm as we work to re-energise our retail stores and our product offering.’ Earlier this month, JJB warned that falling revenues and sales - particularly replica kit sales - would affect its earnings.
Topics: JJB |
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