While revenue increased 12.1 per cent to £381.6 million compared to 2005, the retailer posted a 22.9 per cent reduction in profit after taxation compared to last year in its interim results for the 26 weeks to July 30. Net profit before taxation increased by half a per cent.
Says Roger Lane-Smith, JJB’s non-executive chairman: “Although we are encouraged by the revenue improvement and the marginal increase in pre-tax profit, difficult trading conditions continue to challenge the margin. This is most evident in the sale of replica kit, where the World Cup boosted sales but these sales were subject to intense competition on pricing.
“JJB is focusing on its ‘Serious About Sport’ strategy to differentiate itself from other retailers and to protect its margins by improving the quality of its stores and products. I am pleased to report that we are gaining support from the major brands in this approach.
“The Leisure Division also continues to grow and I am very happy to report both increased profitability and membership numbers.
“Looking forward, the latest trading results give us confidence for a satisfactory outcome to the current accounting period. However, the retail sector continues to be highly competitive and Christmas will be an important trading period for us.”
