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Brown (N.) Group PLC (BWNG)

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Tuesday 17 July, 2007

Brown (N.) Group PLC

IMS and AGM Statement

Brown (N.) Group PLC
17 July 2007

N Brown Group plc

17 July 2007

                               N BROWN GROUP PLC


At the Annual General Meeting being held today at 2.30 pm Lord Alliance,
Chairman, will make the following statement on current trading.

In the 20 weeks ended 14th July 2007 group turnover from continuing operations
is up by 15.8%. The like for like sales growth in our core home shopping
business is up by 11.1%.

The home shopping sales growth has been driven by another significant increase
in the average spend per customer, as a result of successfully implementing a
number of key strategies. We have targeted our key customer groups with expanded
catalogues and mid-season mailings which include further additions to our
extensive range of sizes and fittings of clothing and footwear for both men and
women. The 42% increase in our online sales reflects our plan to drive an
increasing proportion of customers to order over the internet where we are able
to maximise the cross-selling opportunities. In addition the focus on improving
the quality of customers recruited in recent seasons has also contributed
significantly to the increased spend per customer.

The credit policy changes introduced last year and the higher proportion of
younger customers in our debtor portfolio has, as expected, resulted in higher
bad debts. This is the principal reason for a reduction in the rate of gross
margin by 1.3%. However operational cost savings have offset most of this gross
margin reduction.

Sales of high summer product lines would have been even stronger barring the
recent spell of inclement weather, but our performance will now depend on the
late summer and autumn catalogues. The board remains confident that these offers
and the trading plans for the remainder of the financial year will deliver
further progress.


N Brown Group plc

Alan White, Chief Executive                      Tel: 0161 238 2202
Dean Moore, Finance Director                     Tel: 0161 238 2208

Gavin Anderson & Company

Fergus Wylie                                     Tel: 020 7554 1400
Clotilde Gros

                      This information is provided by RNS
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