Information  X 
Enter a valid email address

John David Sports (JD.)

  Print      Mail a friend

Wednesday 14 June, 2000

John David Sports

Preliminary Results

John David Sports PLC
14 June 2000

                                                                              
                             JOHN DAVID SPORTS PLC
               PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2000
                                       
John David Sports Plc, a leading specialist retailer of fashionable branded
sports and leisure wear, today announces its 2000 Preliminary Results.
Highlights:-

-    Strong like for like sales growth for the year of 7.2%.
-    Turnover increased by 20.2% to £171.45 million (1999: £142.61 million).
-    Operating profit increased by 23.7% to £13.20 million (1999:
     £10.67million).
-    Pre tax profit increased by 23.9% to £12.21 million (1999: £9.85
     million).
-    Earnings per ordinary share increased by 26.7% to 18.00p (1999: 14.20p).
-    Final dividend increased by 11.1% from 3.6p to 4p (5.6p to 6p in total).
-    10 stores opened (3 closures).
-    Continued extension of own brand and exclusive product offerings.
-    Like for like sales growth since year end 8.3%.
-    Cobra format opportunity.

John Wardle, Chairman said:  'I am confident that the company will continue to
demonstrate its management and trading disciplines to capitalise on the retail
opportunities which are available to it.  The success of our approach is
demonstrated by the positive momentum in current trading.

I remain excited by the future prospects of the company.'

Enquiries:
John Wardle (Chairman)/Peter Cowgill (Finance Director), John David Sports Plc
Telephone:  0207 796 4133 (Hudson Sandler) on 14 June 2000, 01706 628000
thereafter)

Andrew Hayes/Penny Davis, Hudson Sandler
Tel:  0207 796 4133


CHAIRMAN'S STATEMENT

I am very pleased to report that the company has produced a strong trading and
financial performance for the year ended 31 March 2000.  A significant
increase in net profit before tax has been achieved largely from 7.2% like for
like sales growth.  Our merchandising and retail strategies have led to a
particularly encouraging performance in the second half of the year.

The positive impact of our approach is reflected in the improvement in all our
key financial ratios.  Quite apart from the substantial increase in net
profit, I am pleased to note the further improvement in gross profit margin, a
considerably improved stock turnover ratio, controlled capital expenditure and
lower gearing.

From an external perspective, the company has continued to benefit from
increased segregation into price led and design led retailers within the
sportswear market place, and the decline of weaker competitors.  JD Sports is
a major contributor to this process and has enhanced its recognised position
as the leading design led sports and leisurewear retailer in the UK, not just
for the established brands but also increasingly for its own brands.

We have continued to benefit considerably from our proven design and retail
capabilities which have resulted in the significant progress and brand
development of JD Sports.



RESULTS


Turnover for the year ended 31 March 2000 increased by 20.2% with a like for
like increase of 7.2%.  The sales growth was accompanied by an increase in
gross profit margin from 45.5% to 46.1%.

Operating cost increases have mainly resulted from additional store openings
together with an uplift in the marketing spend, both of which have impacted
positively on the sales performance of the company.

Net profit before tax for the year increased by 23.9% from £9.85 million to
£12.21 million.   The effective tax rate has decreased from 33.0% to 31.5%
mainly due to a reduction in tax rates.  Earnings per share has increased from
14.2p to 18.0p.

Following an extremely strong Christmas performance, with sales in December up
17.6% on a like for like basis, the company continued to achieve positive like
for like sales growth in the final quarter of the financial year of 7.8%.  The
results for the year as a whole, therefore, have benefited particularly from
second half trading which produced like for like sales growth of 11% and a
comparative net profit increase of 39.7%.

DIVIDEND

The Board is recommending a final dividend of 4.0p per ordinary share (1999:
3.6p) subject to the approval of the shareholders at the Annual General
Meeting.  This combines with the Interim dividend of 2.0p (1999: 2.0p) per
ordinary share to provide a total dividend of 6.0p.  The final dividend will
be paid on 9 October 2000 to shareholders on the register at close of business
on 8 September 2000.

OPERATING REVIEW

The improved management of the buying and merchandising function has produced
significant benefits.  The number of product lines within specific footwear
and clothing categories has been reduced to accommodate greater depth of
stockholding which has enhanced the level of customer satisfaction.  This has
also increased the retail space available to display a broader range of
product categories and consequently appeal to a broader customer base.

During the year the distinctive features of the 'JD' brand were enhanced.
Imaginative store displays were supported by differentiated product offerings
at the leading edge of the sports fashionwear retail market.  In particular,
the ranges and value of own brand product and exclusive product were expanded.
The JD Casual, JD Junior and JD Woman ranges have also been successfully
extended.  As a consequence, the company is now able to operate more
profitably from larger retail outlets and has noted a much improved
performance from these stores.

Sales initiatives have been substantially supported by promotional campaigns
focusing largely on our fashion conscious teenage customers.  Marketing
programmes have also significantly advertised the extended product ranges on
offer.  The JD Gold Card scheme passed its first anniversary and together with
the ancillary Solid Gold Magazine continues to promote customer loyalty.
Information has been gained from the resultant database to generate additional
customer spend from our target audience.

During the year 10 new stores were opened including one out of town occupying,
in total, 39,000 square feet and 3 were closed occupying 9,000 square feet.
As at 31 March 2000, the company traded from 133 stores occupying 416,000
square feet, including 17 edge/out of town stores occupying 115,000 square
feet.  The company continues to be in a position to trade successfully from
various outlets and has notably improved its ability to trade from larger unit
space including out of town.

MANAGEMENT

In order to manage the successful growth of the company, we have created an
Executive Board which comprises the main Board Executive Directors and five
Senior Executives.  The members have been carefully selected to harness their
experience and expertise in a structure to support the Main Board.  Improved
sales turnover and the increased gross profit margins achieved have been
delivered by management policies and strategies agreed by this team.

BALANCE SHEET AND FINANCIAL RESOURCES

Shareholders' funds at the balance sheet date have increased from £30.85
million to £36.43 million, arising from the retained profit of £5.58 million.
Total expenditure on fixed assets in the year amounted to £5.81 million, of
which £4.76 million related to stores.  Net borrowings at 31 March 2000 were
£8.18 million (1999: £9.62 million).
Gearing reduced to 22.4% (1999: 31.2%), particularly benefiting from the
control of stocks and a limited capital expenditure programme.  Stock levels
increased by only 0.9% against a turnover increase of 20.2%, whilst improving
customer service levels.

CURRENT TRADING

Trading since the year end has been encouraging.  Total sales have increased
by 17.4% compared to the same period in the previous year.  This includes an
underlying like for like increase of 8.3%, which is also ahead of the final
quarter of last year.  Gross profit margins have also been maintained during
this period of growth.

Two new stores have been opened since the year end occupying 4,600 square feet
and they are trading successfully.

PROSPECTS

We continue to implement a stringent store selection programme with continued
emphasis on in-store formats and style driven product offerings.  We have
developed a successful base from which we can progressively expand.  King of
Trainers, JD Woman, JD Junior, JD Casual and JD Exclusives continue to
represent in store formats which are synonymous with the distinctive JD brand.
The continuing development of this brand will be supported by selective store
openings and imaginative marketing campaigns.

We have also recently acquired the 'Cobra' name, for a nominal sum.  The Cobra
brand is particularly strong in specific regions of the UK.  Together with
'Athleisure', this provides us with the opportunity of servicing brand
responsive locations from differentiated formats and thereby providing further
opportunity for growth.  We have also piloted the 'Size' brand which has
evolved from the JDFC format and targets a more specific high fashion retail
footwear consumer.

We have dedicated senior management resource to prioritise the development of
our E-commerce site from which a limited product range may already be
purchased.  As the leading edge sports fashionwear supplier, the company
acknowledges its customer base is receptive to on-line trading and we
anticipate significant further  development in this area during the current
year, but only on a cost effective basis.

I am confident that the company will continue to demonstrate its management
and trading disciplines to capitalise on the retail opportunities which are
available to it.  The success of our approach is demonstrated by the positive
momentum in current trading.

I remain excited by the future prospects of the company.


John Wardle
14 June 2000

Chairman

Profit and loss account
for the year ended 31 March 2000

                                   2000       1999
                                   £000       £000
Turnover                        171,446    142,607
Cost of sales                   (92,503)   (77,674)
                                       
                                                  
Gross profit                     78,943     64,933
Distribution costs              (60,073)   (48,846)  
Administrative expenses          (5,692)    (5,440)
Other operating income               19         23
                                                  
Operating profit                  13,197    10,670
Loss on sale of tangible fixed      (383)     (212) 
assets                                            
                                     
                                                  
Profit on ordinary activities     12,814    10,458
before interest                          
Interest receivable                  106       164
Interest payable and similar                      
charges                             (715)     (771)
                                                  
Profit on ordinary activities      12,205    9,851
before taxation                                  
Tax on profit on ordinary          (3,835)  (3,247)    
activities                    
                                                  
Profit for the financial year        8,370   6,604
Dividends paid and proposed                       
                                    (2,791) (2,605)
                                        
                                                  
Retailed profit for the financial                 
year                                 5,579   3,999
                                                  
Basic earnings per ordinary share    18.00p  14.20p
Diluted earnings per ordinary share  18.00p  14.20p
                                        


All amounts shown for both years relate to continuing operations.

The company has no recognised gains or losses during the current and previous
years other than the results reported above.  The results above also represent
the historical cost profit.


Balance sheet
as at 31 March 2000


                                    2000            1999
                                 £000    £000    £000    £000
                                                             
Fixed assets                                                 
Tangible assets                        29,660          28,796
                                                             
Current assets                                       
Stocks                         26,541          26,312
Debtors                         5,045           4,609
Cash at bank and in hand           71             337
                                               31,258        
Creditors: amounts falling     31,657                
due within                    (20,163)        (21,668)
  one year                                                                    
                               
Net current assets                     11,494           9,590
                                                             
Total assets less current              41,154          38,386
liabilities                            (2,808)                
Creditors: amounts falling                             (5,712)
due after more                                              
  than one year                        (1,917)         (1,824)
Provisions for liabilities                                 
and charges
                                                             
Net assets                             36,429          30,850
                                                             
Capital and reserves                                         
Called up share capital                 2,325           2,325
Share premium account                   8,634           8,634
Profit and loss account                25,470          19,891
                                                             
Equity shareholders' funds             36,429          30,850

Cash flow statement
for the year ended 31 March 2000



                                          2000    1999
                                          £000    £000
                                                     
Net cash inflow from operating          14,195   9,652
activities                                     
Returns on investments and servicing of   (609)   (607)
finance                                
Taxation                                (3,769) (2,088)
Capital expenditure                     (5,767) (9,799) 
Equity dividends paid                   (2,605) (1,592)    
                                         
                                            
                                                     
Net cash inflow/(outflow) before         1,445  (4,434)
financing                                
Financing                               (3,424)  1,889 
                                                     
Decrease in cash in the year            (1,979) (2,545)
                                            
                                                     

Reconciliation of net cash flow to
movement in net debt
for the year ended 31 March 2000


                                          2000   1999
                                          £000   £000
                                                     
Decrease in cash in the year            (1,979)(2,545)
Cash outflow/(inflow) from movement in   3,424 (1,889)     
debt and lease financing                
                                         
                                                     
                                                     
Movement in net debt in the year         1,445 (4,434)
Net debt at start of year               (9,620)(5,186)
                                                     
Net debt at end of year                 (8,175)(9,620)


Earnings per ordinary share
Basic earnings per ordinary share represents the post-tax profit for the
financial year
£8,370,000 (1999: £6,604,000) divided by the weighted average number of
ordinary shares in issue of 46,508,772 (1999: 46,508,772).
There is no difference between the basic earnings per ordinary share and the
diluted earnings per ordinary share for either year.


Reconciliation of movements in                         
shareholders' funds
                                          2000     1999
                                          £000     £000
                                                       
Profit for the financial year            8,370    6,604
Dividends                               (2,791)  (2,605)
                                            
                                                       
Net movement in shareholders' funds      5,579    3,999
Shareholders' funds at beginning of     30,850   26,851
year                                         
                                                       
Shareholders' funds at end of year      36,429   30,850
                                             



Reconciliation of operating profit to net cash inflow
from operating activities

                                                       
                                          2000     1999
                                          £000     £000
                                                       
Operating profit                        13,197   10,670
Depreciation charge                      4,525    4,525
Increase in stocks                        (229)  (4,757)
Increase in debtors                       (436)    (366)
Decrease in creditors                   (2,857)    (420)
                                            
                                                       
Net cash inflow from operating          14,195    9,652
activities                                   


Notes

1.  These figures are abridged versions of the company's full accounts for
    the years ended 31 March 1999 and 2000 and do not constitute the
    company's statutory accounts within the meaning of Section 240 of the
    Companies Act 1985.  The company's auditors have audited the statutory
    accounts for the company and have issued an unqualified audit report
    thereon within the meaning of Section 235 of the Companies Act 1985 and
    have not made any statement under Section 237 (2) or (3) of the Companies
    Act 1985 for the year concerned.

    Statutory accounts for the year ended 31 March 1999 have been delivered
    to the Registrar of Companies.  Statutory accounts for the year ended 31
    March 2000 will be delivered to the Registrar of Companies following the
    Annual General Meeting.

2.  Copies of the full accounts will be sent to shareholders in due course.
    Additional copies will be available from John David Sports Plc, Unit P14
    Parklands, Heywood Distribution Park, Pilsworth Road, Heywood, Lancs,
    OL10 2TT.