Christmas Trading Update
15 January 2004 - 6:00PM
UK Regulatory
RNS Number:2564U
Ottakar's PLC
15 January 2004
For Immediate Release 15 January 2004
Ottakar's PLC
Christmas Trading Statement
Ottakar's plc, one of the UK's leading specialist book retailers, announces
trading results for the important Christmas period. Sales performance for the 6
weeks, 23 weeks and 49 weeks to 10 January 2004 was as follows: -
Period to 10 January 2004
6 weeks 23 weeks 49 weeks
% increase % increase % increase
Total sales growth 39.9% 36.1% 36.8%
Like for like sales growth 7.7% 5.4% 6.9%
6 weeks 23 weeks 37 weeks
% increase % increase since acquisition
% increase
Former Hammicks stores 11.0% 3.6% 4.1%
Trading over Christmas 2003 showed continued good growth over the prior year
despite strong comparatives. Ottakar's produced a respectable performance in
like for like sales coupled with an encouraging gross margin result due to
further buying efficiencies.
Best selling titles included Lynne Truss's Eats, Shoots and Leaves,
autobiographies from Shane Ritchie, Sting and Martin Johnson, and Bill Bryson's
"A Short History of Nearly Everything".
All four stores opened during 2003, in Cheltenham (a relocation of a former
Hammicks store), Coventry, Guildford and Oban, as well as the concession opened
in De Gruchy's department store in Jersey, performed satisfactorily. The
exceptional costs of disposing of former stores (including those in East
Kilbride, Truro and Llandudno) have now totalled #0.7m as opposed to #0.4m as
expected at the time of the interim statement. The group's year end estate will
be 121 stores trading from 527,000 square feet, compared to 380,000 square feet
from 93 stores at the previous year end.
We acquired 24 stores from Hammicks in April, representing a 30% increase in
group square footage. The acquired stores also performed well; however, margin
gains materialised later than expected, and sales performance did not respond to
our operational improvements until December, once the stores had been relaunched
under the Ottakar's brand name. The exceptional restructuring costs of
integrating the Hammicks chain are forecast to be #0.8m in line with our
original expectations.
The Group intends to open a minimum of 50,000 square feet of trading space
during 2004, of which 30,000 square feet has already been committed, including a
10,000 square feet store in Canterbury, and relocations in Dundee and
Walthamstow.
Commenting on trading performance, Philip Dunne, Chairman, said:
'We are encouraged by the trading performance to date with the good Christmas
results demonstrating our core strengths, achieved during a year in which a
major acquisition was successfully integrated. The Board expects to report
pre-tax profit before exceptional costs broadly in line with market
expectations, although as a result of exceptional property disposal costs,
profit before tax and after all exceptional costs for the 52 weeks to 31 January
2004 is now expected to be in the range of #5.75-#6m.'
For further information, contact:
Ottakar's plc
James Heneage, Managing Director 01722 428 500
Edward Knighton, Finance Director 07714 458 566
Buchanan Communications
Charles Ryland / Nicola Cronk 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTGGGMMRDGGDZM