John Lewis Of Hungerford PLC Pre Close Update (5378O)
08 November 2016 - 6:00PM
UK Regulatory
TIDMJLH
RNS Number : 5378O
John Lewis Of Hungerford PLC
08 November 2016
John Lewis of Hungerford plc
Pre Close Update
The Board of John Lewis of Hungerford plc (AIM:JLH) provides a
trading update ahead of reporting its results for the year ended
31st August 2016, which it expects to announce in December
2016.
H2 Trading
Based on unaudited management information, the Board expect to
report sales for the year to 31st August 2016 of GBP8.2 million.
The 5% increase over the GBP7.8m reported in 2015 was achieved
almost entirely in the second half. These sales figures are based
on the Company's statutory revenue recognition policy, which is to
recognise revenue at the point orders are despatched.
The sales growth contributed to the business delivering an
underlying profit in the second half although, as highlighted at
the time of the interim results, this was insufficient to recover
in full the loss incurred in the first half. Based on unaudited
management information we expect to report an underlying loss for
the full year of GBP0.3m excluding exceptional items, which include
the previously announced closure costs of our Tunbridge Wells and
Harrogate showrooms.
The Board have previously announced steps which have been taken
to rationalise its cost base and generate annualised savings of at
least GBP0.3 million from the beginning of the new financial year.
These changes have ensured a more streamlined internal structure,
without compromising our high standards of customer service. The
Board expect that this improvement in the underlying cost base of
the business will ensure the company is able to work towards a
sustained return to profitability and improved shareholder
value.
Current Trading
In the current financial year despatched sales and forward
orders (which we consider to be the best measure of current
trading) for Q1 stand at GBP1.8million (2015: GBP1.9 million). The
forward order book remains comparable with last year at GBP1.3m
(2015: GBP1.3m). Steps taken during the second half of 2016 to
address the recent pressures on gross margin are now beginning to
take effect and have contributed to a small improvement in the
current year. Reversing the recent decline in gross margin remains
a focus of the management team.
The new Board look forward to engaging positively with
shareholders and notification of the final results will be
accompanied by an opportunity for shareholders to meet with the
Board to discuss recent developments. Further details will be
provided in due course.
Enquiries:
John Lewis of Hungerford plc
Kiran Noonan 01235 774 300
Smith & Williamson Corporate Finance
Limited
Martyn Fraser 0117 376 2213
Katy Birkin 0207 131 4000
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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