Brown (N.) Group PLC
23 January 2002
23 January 2002
N BROWN GROUP - CHRISTMAS TRADING UPDATE
Total sales increase of 12% over last year, with electrical
and household goods up 24%
Zendor has moved into profit, reversing first half losses
N Brown Group plc, the Manchester-based home shopping, fulfilment and financial
services company, today announces a trading update for the twenty week period
ending 19 January 2002.
The Group has achieved an overall increase in total sales of 12% over the same
period last year.
Home Shopping Division
The core home shopping division sales grew by 10% above last year, with
continued strong growth of 24% coming from electrical and household goods and an
increase of 6% in our womenswear ranges. Turnover from our younger catalogues,
which include Fashion World and Simply Be, has increased by 19% and there has
also been an increase of 7% in turnover from our largest category of middle-aged
customers. Home Shopping gross margins have remained constant with last year
and in line with expectations. Internet sales continue to perform well and are
now at an annualised rate of £15m per year.
Recently launched Spring and Summer ranges have had a positive reception from
our customers, although it is too early to predict sales performance over the
Fulfilment Division - Zendor and Eunite
Zendor, our fulfilment and consultancy division, has moved into profit in the
second half, reversing its earlier first half losses, and will show a small full
year profit. One of Zendor's recently acquired clients, Toys R Us, have reported
higher than expected sales volumes being fulfilled in the run up to Christmas.
Zendor has also been working with a number of other companies in a consultancy
capacity, including Safeway and Arcadia and continues to provide fulfilment
services for a number of high street retailers.
Eunite, the interactive part of the fulfilment division has more than halved the
level of first half losses by alignment of its business to current levels of
Financial Services Division
First Financial, our financial services division which acts as both a principal
and intermediary in the provision of financial products to the group's
customers, has traded in line with expectations and we are confident of further
complementary products being developed over the coming year.
Jim Martin, Chief Executive, said:
'I am delighted to be able to report in our Christmas Trading Update the strong
performance of the Group in all its business activities. Most encouragingly the
core home shopping division continues to perform well.
'The uncertain outlook in the world markets in the final quarter of last year
has currently had little adverse impact on the UK retail sector and I therefore
remain optimistic for N Brown Group's full year results.'
N Brown Group will be announcing its preliminary results for the year to 2 March
2002 on 16 May 2002.*
For further information please contact:
N Brown Group plc Tel: 0161 236 8256
Jim Martin, Chief Executive
Tim Kowalski, Finance Director
Gavin Anderson & Co Tel: 020 7457 2345
Neil Garnett/Charlotte Stone
Websites: www.nbrown.co.uk www.zendor.com www.eunite.co.uk
* Please note that the last financial year ended 3 March 2001 included a 53rd
week for comparative purposes.
This information is provided by RNS
The company news service from the London Stock Exchange