Interim Results - Pre-tax Profit Up 13.2%

John David Sports PLC 7 December 1999 INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 1999 John David Sports Plc, a leading specialist retailer of fashionable branded sports and leisure wear, today announces its 1999 Interim Results. Highlights:- * Turnover increased by 20.8% to £83.27 million (1998: £68.94 million) * Like for like sales growth of 5.2% since 30 September 1999 * 3 stores opened during the period with one closure * Continued focus on store format and product differentiation * Gross profit margin improved from 45.5% to 46.0% * Operating profit increased by 18.8% to £7.26 million (1998: £6.11 million) * Profit before tax up by 13.2% to £6.66 million (1998: £5.88 million) * Earnings per ordinary share up 13.5% to 9.76p (1998: 8.60p) * Dividend maintained at 2p John Wardle, Chairman, said: 'Against a difficult retail trading background I am pleased with the positive progress which the company has made. The financial results to date fully support the merchandising and retail strategies which have been successfully implemented and which we are continuing to develop.' Enquiries: John Wardle (Chairman)/ Peter Cowgill (Finance Director) John David Sports Plc Telephone: 0171 796 4133 (Hudson Sandler) on 7 December 1999 Andrew Hayes/James Cracknell Hudson Sandler Limited 01706 628000 (thereafter) CHAIRMAN'S STATEMENT Introduction In light of the well reported difficult market conditions in clothing retailing, I am pleased to report that the company has continued its sales and profit growth. For the six month period ended 30 September 1999 the company has increased its sales by 20.8% from £68.94m to £83.27m and its pre tax profit by 13.2% from £5.88m to £6.66m. The results support my comments in recent announcements that the company has successfully refined its merchandising and retail strategy and developed its market position as a brand leader in sports and leisurewear retailing. Results Operating profit for the six month period ended 30 September 1999 increased by 18.8% from £6.11m to £7.26m and profit before taxation increased by 13.2% from £5.88m to £6.66m. Earnings per ordinary share have increased by 13.5% from 8.60p to 9.76p. The improved net profit has been generated by an increase in turnover of 20.8% from £68.94m to £83.27m, combined with improved gross profit margin from 45.5% to 46.0%. Dividend The Board proposes to pay an interim dividend of 2p per ordinary share (1998: 2p) which will be paid on 3 March 2000 to shareholders on the register at the close of business on 14 January 2000. Trading Review The six month period under review was one of continued consolidation in the sportswear retail market. Certain weaker competitors have either been absorbed or diminished their representation on the high street but market conditions have remained competitive. In comparative terms the timing of Easter and the absence of the World Cup or a similar major sporting event created demanding comparatives and, therefore, the improvement in like for like sales during the period of 3.4% was encouraging. The ongoing emphasis upon differentiation in product offerings has benefited the sales performance of the company. This, together with improved merchandising controls, has increased the gross profit margin. As previously announced, the store opening programme has been highly selective during the current financial year. Three stores were opened during the period and, following the closure of one clearance outlet, the total number of stores in operation at the period end was 128 occupying a total of 393,000 retail sq ft. This total includes 17 out of town/edge of town stores which occupy 113,000 retail sq ft. Since 30 September 1999 four additional stores have been opened and one closed, increasing the retail square footage to 404,000 sq ft. Balance sheet and financial resources As previously referred, capital expenditure was curtailed during the period to £2.54m. Stock levels at 30 September 1999 increased by 1% from £27.44m to £27.73m. Whilst comparatives have been favoured by the timing of certain deliveries, the modest uplift in stock compared to the increased levels of turnover is a consequence of the improved stock and merchandising controls which have been implemented. The result has been to benefit cash resources and consequently the period end gearing position. Net borrowings at the period end amounted to £6.13m (1998: £8.04m) giving gearing of 18% (1998: 27%). Shareholders' funds as at 30 September 1999 increased to £34.46m. Year 2000 The majority of systems currently operated by the company have been developed and reviewed by an external software house who have confirmed that they are millennium compliant. A steering committee has reviewed all other systems and hardware operated by the company to ensure millennium compliance will be fully met. Any costs associated with the exercise are charged to the profit and loss account as incurred, and are not significant. Current trading and outlook Recent announcements by retail clothing companies and continued evidence of high street discounting confirm that difficult market conditions prevail. We are therefore encouraged by the continued achievement of positive like for like sales growth. The cumulative increase in like for like sales for the financial year to date is 3.8%. Since 30 September 1999 the growth in like for like sales is 5.2%. We have, however, achieved this growth partially through higher levels of promotional expenditure which will continue throughout the second half of the year. The results for the financial year will also, as ever, be heavily influenced by sales performance during the Christmas period and in the early months of the New Year. Sales comparatives are stronger from mid December onwards. Against a difficult retail trading background I am pleased with the positive progress which the company has made. The financial results to date fully support the merchandising and retail strategies which have been successfully implemented and which we are continuing to develop. John Wardle Chairman 7 December 1999 PROFIT AND LOSS ACCOUNT for the half year ended 30 September 1999 Unaudited Unaudited Audited first half first half year ended 1999 1998 31 March 1999 Note £'000 £'000 £'000 ----------------------------------------------------------------------------- Turnover 83,271 68,939 142,607 Cost of sales (44,957) (37,538) (77,674) ----------------------------------------------------------------------------- Gross profit 38,314 31,401 64,933 Operating expenses (net) (31,052) (25,290) (54,263) ----------------------------------------------------------------------------- Operating profit 7,262 6,111 10,670 Loss on sale of tangible fixed assets (236) - (212) ----------------------------------------------------------------------------- Profit on ordinary activities before interest 7,026 6,111 10,458 Interest receivable and similar income 22 115 164 Interest payable and similar charges (389) (345) (771) ----------------------------------------------------------------------------- Profit on ordinary activities before taxation 6,659 5,881 9,851 Taxation on profit on ordinary activities 2 (2,120) (1,880) (3,247) ----------------------------------------------------------------------------- Profit on ordinary activities after taxation 4,539 4,001 6,604 Dividends paid and proposed 3 (930) (930) (2,605) ----------------------------------------------------------------------------- Retained profit 3,609 3,071 3,999 ----------------------------------------------------------------------------- Earnings per ordinary share 4 9.76p 8.60p 14.20p Diluted earnings per ordinary share 9.76p 8.60p 14.20p ----------------------------------------------------------------------------- All amounts shown relate to continuing operations BALANCE SHEET as at 30 September 1999 Unaudited Unaudited Audited as at as at as at 30 September 30 September 31 March 1999 1998 1999 £'000 £'000 £'000 ----------------------------------------------------------------------------- Fixed assets Tangible assets 29,160 26,858 28,796 ----------------------------------------------------------------------------- Current assets Stocks 27,727 27,439 26,312 Debtors and prepayments 5,042 4,649 4,609 Cash at bank and in hand 2,081 1,556 337 ----------------------------------------------------------------------------- 34,850 33,644 31,258 Creditors: amounts falling due within one year (23,470) (21,548) (21,668) ----------------------------------------------------------------------------- Net current assets 11,380 12,096 9,590 ----------------------------------------------------------------------------- Total assets less current liabilities 40,540 38,954 38,386 Creditors:amounts falling due after more than one year (4,164) (7,574) (5,712) Provisions for liabilities and charges (1,917) (1,458) (1,824) ----------------------------------------------------------------------------- Net assets 34,459 29,922 30,850 ----------------------------------------------------------------------------- Capital and reserves Called up share capital 2,325 2,325 2,325 Share premium account 8,634 8,634 8,634 Profit and loss account 23,500 18,963 19,891 ----------------------------------------------------------------------------- Equity shareholders' funds 34,459 29,922 30,850 ----------------------------------------------------------------------------- RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS as at 30 September 1999 Unaudited Unaudited Audited as at as at as at 30 September 30 September 31 March 1999 1998 1999 £'000 £'000 £'000 ----------------------------------------------------------------------------- Retained profit 3,609 3,071 3,999 Opening equity shareholders' funds 30,850 26,851 26,851 ----------------------------------------------------------------------------- Closing equity shareholders' funds 34,459 29,922 30,850 ----------------------------------------------------------------------------- CASH FLOW STATEMENT for the half year ended 30 September 1999 Unaudited Unaudited Audited first half first half year ended 1999 1998 31 March 1999 £'000 £'000 £'000 ----------------------------------------------------------------------------- Net cash inflow from operating activities 6,628 3,087 9,652 Returns on investments and servicing of finance (367) (230) (607) Taxation paid (233) (231) (2,088) Capital expenditure (2,538) (5,476) (9,799) Equity dividends paid - - (1,592) ----------------------------------------------------------------------------- Net cash inflow/(outflow) before financing 3,490 (2,850) (4,434) Financing (1,746) 1,524 1,889 ----------------------------------------------------------------------------- Increase/(decrease) in cash 1,744 (1,326) (2,545) ----------------------------------------------------------------------------- NOTES TO THE INTERIM FINANCIAL STATEMENTS 1. The unaudited results have been prepared using the same accounting policies as those used for the financial statements for the year ended 31 March 1999. 2. Taxation has been estimated at the rate expected to be incurred in the full year. 3. The directors have declared an interim dividend of 2.0p per ordinary share of 5p, to be paid on 3 March 2000 to shareholders registered on 14 January 2000. 4. Earnings per ordinary share represents the profit for the period of £4,539,000 (1998: £4,001,000) divided by the weighted average number of ordinary shares in issue of 46,508,772 (1998: 46,508,772). 5. The financial information set out above does not constitute full statutory accounts within the meaning of Section 240 of the Companies Act 1985. The amounts shown in respect of the year ended 31 March 1999 have been extracted from the full statutory accounts, on which the auditors have made an unqualified report. The statutory accounts have been filed with the Registrar of Companies. 6. Copies of the interim financial statements will be posted to shareholders and are available to members of the general public from the company's registered office: P14 Parklands, Heywood Distribution Park, Pilsworth Road, Heywood, Lancashire, OL10 2TT.

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