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News Flash
Blacks Outdoor performs broadly in line with expectations
05 Nov '08
5 min read
Store closure programme - The store closure programme announced on 1 March 2007 is progressing steadily and a further 8 sites have been closed or assigned during the first half. This brings the total number of assigned or disposed stores to 21.
Due to unfavourable trading conditions the assumptions made at the year-end, for the stores under the onerous lease provision, were understated. As a result an additional exceptional onerous lease provision of £1.0m has been recognised in the period.
Dividend - The Board has decided not to declare an interim dividend this year as the recent performance of the business does not warrant the resultant cash outlay. We will resume dividend payments as soon as circumstances permit.
People - Following the departure of our Finance Director, Keith Fleming, and as announced in August, Marc Lombardo was appointed to the Board as Finance Director on 20 August 2008.
Also, as announced on 27 August 2008, the board appointed Nick Samuel and Andrew Mallet as non-executive Directors of the Company. Nick Samuel was Chief Executive of Hobbs Limited, and Andrew Mallett, is currently an executive Director of Aspire Oil Services Limited and a non-executive Director of Powerleague Group plc. I am also pleased that Claude Littner has taken on the new position of Deputy Chairman.
Clive Sherling has decided to leave the Company and I would like to thank Clive for his highly valued input provided during his time at Blacks Leisure.
Current trading and outlook - In the third quarter to the 29 October Group like for like sales decreased by 0.8% (2007: 0.2% decrease), with Outdoor increasing by 4.5% (2007: 2.1% increase) and Boardwear decreasing by 26.6% (2007: 9.1% decrease). Total retail sales were 3.3% lower (2007: 0.1% decrease). Gross margins have been maintained and operating cost reductions continue.
We are encouraged by this better start to the second half and our plans for restoring sales growth to the business will be the key focus for the remainder of the current year and into 2009. The outlook for the remainder of the year will be influenced by trading over the important Christmas period and possibly, wider economic factors.
As a new management team we were given a very clear mandate at the beginning of 2008 to undertake a major turnaround of the Blacks Leisure Group plc business over a three year period. After our first half year of the turnaround I am pleased to report that we have made strong operational progress against this plan.
The turnaround plan was based on the following four components:
- Delivering a rapid, short term improvement in retail standards;
- Developing, testing and subsequently rolling out an updated retail format for the two key brands, Blacks and Millets;
- Managing working capital more effectively; and
- Reducing our cost base.
Click here to read more details:
Due to unfavourable trading conditions the assumptions made at the year-end, for the stores under the onerous lease provision, were understated. As a result an additional exceptional onerous lease provision of £1.0m has been recognised in the period.
Dividend - The Board has decided not to declare an interim dividend this year as the recent performance of the business does not warrant the resultant cash outlay. We will resume dividend payments as soon as circumstances permit.
People - Following the departure of our Finance Director, Keith Fleming, and as announced in August, Marc Lombardo was appointed to the Board as Finance Director on 20 August 2008.
Also, as announced on 27 August 2008, the board appointed Nick Samuel and Andrew Mallet as non-executive Directors of the Company. Nick Samuel was Chief Executive of Hobbs Limited, and Andrew Mallett, is currently an executive Director of Aspire Oil Services Limited and a non-executive Director of Powerleague Group plc. I am also pleased that Claude Littner has taken on the new position of Deputy Chairman.
Clive Sherling has decided to leave the Company and I would like to thank Clive for his highly valued input provided during his time at Blacks Leisure.
Current trading and outlook - In the third quarter to the 29 October Group like for like sales decreased by 0.8% (2007: 0.2% decrease), with Outdoor increasing by 4.5% (2007: 2.1% increase) and Boardwear decreasing by 26.6% (2007: 9.1% decrease). Total retail sales were 3.3% lower (2007: 0.1% decrease). Gross margins have been maintained and operating cost reductions continue.
We are encouraged by this better start to the second half and our plans for restoring sales growth to the business will be the key focus for the remainder of the current year and into 2009. The outlook for the remainder of the year will be influenced by trading over the important Christmas period and possibly, wider economic factors.
As a new management team we were given a very clear mandate at the beginning of 2008 to undertake a major turnaround of the Blacks Leisure Group plc business over a three year period. After our first half year of the turnaround I am pleased to report that we have made strong operational progress against this plan.
The turnaround plan was based on the following four components:
- Delivering a rapid, short term improvement in retail standards;
- Developing, testing and subsequently rolling out an updated retail format for the two key brands, Blacks and Millets;
- Managing working capital more effectively; and
- Reducing our cost base.
Click here to read more details:
Blacks Leisure Group plc
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