IMS and Trading Update

Brown (N.) Group PLC 14 January 2008 Interim Management Statement and Trading Update N Brown Group plc, the home shopping retailer, today announces a trading update for the 20 weeks ended 12th January 2008. Group sales both in total and on a like for like basis have increased by 14.0%. Sales are now exclusively derived from our home shopping business following the disposal of Zendor, our fulfilment business, in December 2007. This upward momentum in sales growth has been delivered across all key customer groups and product ranges, including a strong performance from ladies clothing. Sales from our established customers have been ahead of our expectations due to higher response rates and an increase in average spend, driven by improvements to our product ranges, catalogues and websites. In addition sales from new customers recruited in the second half have increased by 30%. This is as a result of significant extra recruitment advertising for both existing catalogue brands and the new titles launched in 2007, namely Simply Yours, Marisota and Jacamo. Online sales growth has accelerated to 48% in the period from 40% in the first half, and orders taken over the internet now account for 28% of our total sales. In the period gross margin is 0.5% below last year's rate, in line with our expectations, due to the ongoing changes in customer and product mix. Additional operational cost savings have more than offset this margin decline and funded the expanded customer recruitment and reactivation campaigns which will provide a stronger customer file from which to trade as we enter our new financial year. The financial position of the group remains stable and has not significantly changed since the interim results. The success of our overall strategy to focus on niche customers and products is evidenced by our continued sales growth, which has been achieved despite the postal strike in October 2007, and the impact of other external retail market conditions. The board is confident that we can meet our profit expectations for the 53 weeks to 1st March 2008 and that we are well placed for the next financial year. ENDS The company will be hosting a conference call for analysts and investors at 8:00 am GMT today. Participants are invited to call five minutes prior to this time. Direct Dial-in number 01296 31 7500 Passcode 620 380 A replay facility will be available for a week after the announcement: Dial-in number 0207 136 9233 and passcode 1068 8295 For further information please contact: N Brown Group plc Alan White, Chief Executive Tel: 0161 238 2202 Dean Moore, Finance Director Tel: 0161 238 2208 Website: www.nbrown.co.uk Gavin Anderson & Company Fergus Wylie / Clotilde Gros Tel: 020 7554 1400 This information is provided by RNS The company news service from the London Stock Exchange D MSCFKDKQABKDNDD
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