Final Results

RNS Number:5367E
John David Sports PLC
1 June 2001



                                                                  1st June 2001




                          JOHN DAVID SPORTS PLC

              PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2001





John David Sports Plc, a leading specialist retailer of fashionable branded
sports and leisure wear, today announces its 2001 Preliminary Results.



Highlights: -



*        Strong like for like sales growth for the year of 9% (2000: 7%)

*        Turnover increased by 19% to #204.5 million (2000: #171.4 million)

*        Gross margin increased from 46.1% to 46.5%

*        Operating profit increased by 28% to #16.9 million (2000: #13.2
         million)

*        Pre tax profit increased by 35% to #16.5 million (2000: #12.2
         million)

*        Earnings per ordinary share increased by 35% to 24.4p (2000: 18.0p)

*        Final dividend increased by 15% from 4.0p to 4.6p (6.0p to 6.9p in
         total)

*        15 stores opened and eight small stores closed (Net 63,000sq ft.
         added)

*        Continued focus on our own brand and exclusive ranges

*        Like for like sales growth since year end 5%



John Wardle, Chairman said: "I am pleased to report on another excellent year
at JD Sports.  The continuing demand for branded sports and leisure wear is
evident and having successfully established our distinctive retail formats the
opportunity for further growth is substantial.



"I therefore look towards the future with great expectation and confidence."



Enquiries:

John Wardle (Chairman)/ Barry Bown (Chief Executive), John David Sports Plc.

Telephone:      [phone] (Hudson Sandler) on 1 June 2001

                01706 628000 (Thereafter)



Lesley Allan / Penny Davis, (Hudson Sandler)

Telephone:      [phone]







CHAIRMAN'S STATEMENT



I am pleased to report an excellent year of trading for the year to 31st March
2001.



Pre-tax profits have substantially increased as a result of new store
openings, strong like for like sales growth, uplifted gross profit margins and
controlled operating costs.



JD Sports has remained focused on its differentiated offer, targeted towards
its brand conscious, design led consumer.  Product categories have been
extended and new ranges introduced in order to expand our customer base.



Our proven retail capabilities, together with innovative partnerships with
leading brands and own brand design, continue to contribute to our distinct
market position and provide a sound base for the successful expansion of the
company.





RESULTS



Total sales increased by 19% during the year, which included a like for like
sales increase of 9%.



Gross profit margins also continued to improve from 46.1% to 46.5%, which
together with controlled operating expenses resulted in a 28% increase in the
operating profit from #13.2 million to #16.9 million.



Net interest payable fell from #0.6 million to #0.3 million as a result of the
reduction in net debt.



Net profit before taxation increased by 35% from #12.2 million to #16.5
million and earnings per share by 35% from 18.0p to 24.4p.





DIVIDEND



The Board is recommending a final dividend of 4.6p per ordinary share (2000:
4.0p) subject to the approval of shareholders at the Annual General Meeting.
This combines with the interim dividend of 2.3p per ordinary share (2000:
2.0p) to provide a total dividend of 6.9p (2000: 6.0p).



The final dividend will be paid on 5th October 2001 to shareholders on the
register at close of business on 7th September 2001.





OPERATING REVIEW



JD Sports has further enhanced its position as the leading design led sports
and leisure wear retailer.  The company has maintained its differentiation by
expanding its exclusive ranges and extending its own brand ranges within the
product offering.



The company continues to benefit from its in-house design capability which
develops our exclusive own brand products, under the McKenzie and Carbrini
labels, and also enables the company to work in partnership with the major
sportswear and leisure wear manufacturers such as Nike, Adidas, Reebok, Fred
Perry and Kickers to produce exclusive ranges under their label.  Distinctive
in-store formats and marketing initiatives have strongly supported the JD
concept and the company is at the forefront of visual merchandising.



Whilst extending its clothing ranges, the company has continued to enhance its
reputation as the leading retailer of design led sports and casual footwear.
This is supported by its "King of Trainers" logo which is actively promoted
in-store and in marketing literature.  Exclusive ranges also form a
significant part of the footwear proposition.



Our product sales mix for the year was 50% footwear, 46% clothing and 4%
accessories, which is consistent with the previous year.



The company has proved to be increasingly capable of trading successfully from
various store sizes in both high street or out of town locations.  In
particular, the successful expansion of key product ranges has enabled the
company to trade more effectively from larger stores.  Five stores were
upsized during the year and the results have been encouraging.



In-store formats are defined under the JDCasual, JDWoman, JDJunior,
JDExclusives and King of Trainer styles.  Marketing campaigns consistently aim
to promote these concepts to provide clear and distinctive offerings to a
wider customer profile.



During the year, 15 new stores were opened, including three out of town
stores, occupying a total of 85,000sq ft..  Eight small stores, which occupied
22,000sq ft were closed.  As at 31st March 2001, the company traded from 140
stores occupying 480,000sq ft., including 18 edge / out of town stores,
occupying 125,000sq ft.  Of the eight stores closed during the year, five (all
under 2,200sq ft.) were relocated to larger sites.





BALANCE SHEET & FINANCIAL RESOURCES



Shareholders' funds at the balance sheet date have increased by 23% from #36.4
million to #44.8 million.



Total expenditure on fixed assets during the year amounted to #11.5 million of
which #10.5 million related to stores.  Gearing reduced to 7% (2000: 22%), as
net borrowings decreased from #8.2 million to #3.1 million.



Stock levels increased by only 13% compared to a sales increase of 19%,
continuing the positive trend which has been evident in recent periods.





BOARD CHANGES



As previously reported, Peter Cowgill is leaving the company on 4th June 2001
to pursue alternative opportunities and Malcolm Blackhurst will be appointed
as his successor.  Malcolm has held the position of Group Financial Controller
of the company for the past nine years and has worked very closely with Peter.
I would like to thank Peter for his substantial contribution towards the
development of the company and wish Malcolm every success in his new position.



CURRENT TRADING



I am encouraged by the trading performance in the 8 weeks since the year end.
Total sales have increased by 18% against the same period last year and like
for like sales by 5%, which is measured against strong comparatives.  Gross
profit margins have also been maintained at the uplifted levels achieved last
year.



Since the year end, six new stores have been opened and one small store
re-located, providing an additional 40,000sq ft. of retail space.  Having
presently identified further suitable opportunities for an additional nine
store openings during the year, I would anticipate our retail space to
increase to c580,000sq ft. at the year end, with all stores continuing to be
selected by reference to our prudent financial criteria.





PROSPECTS



We have continued to develop and strengthen our main in-store formats of
JDCasual, JDWoman, JDJunior, JDExclusives and King of Trainers. These concepts
are most favourably promoted in our larger stores and create an interesting
shopping experience for the consumer and utilise available retail space
effectively.



In addition to the JD format, our Size, Ath-leisure and Cobra fashion footwear
and leisure wear concept stores are being refined and presently represent 12
stores in total. A Size concession in Selfridges will be piloted shortly and a
new store has recently been opened in Covent Garden.  These formats target the
particularly brand conscious, fashionable consumer with a relatively high
disposable income, typically aged 18-35. The formats materially benefit JD in
positioning the buying team at the cutting edge of leisure wear trends in
products which can be diffused into the more popular JD format.



Whilst the opportunity to develop alternative concepts is recognised, the
fundamental strategy of the company is focused towards the continued
improvement and controlled expansion of JD Sports.  Against 129 stores which
were trading at the year end under the JD Sports format, a target of 300 would
appear to be realistic.  However, the pace of our store opening programme will
remain subject to the current stringent financial criteria.



I am pleased to report on another excellent year at JD Sports.  The continuing
demand for branded sports and leisure wear is evident and having successfully
established our distinctive retail formats the opportunity for further growth
is substantial.



I therefore look towards the future with great expectation and confidence.



On behalf of the Board, I would like to thank senior executives, management
and all employees throughout the company for their continued commitment and
hard work, which has been a major contribution to our successful performance
for the year.





John Wardle

1st June 2001



Chairman




Profit and loss account
for the year ended 31 March 2001

                                                         2001            2000
                                                         #000            #000

Turnover                                              204,465         171,446
Cost of sales                                        (109,469)        (92,503)


Gross profit                                           94,996          78,943
Distribution costs                                    (72,014)        (60,073)
Administrative expenses                                (6,152)         (5,692)
Other operating income                                     22              19


Operating profit                                       16,852          13,197
Loss on sale of tangible fixed assets                     (95)           (383)


Profit on ordinary activities before                   16,757          12,814
interest
Interest receivable                                       154             106
Interest payable and similar charges                     (443)           (715)


Profit on ordinary activities before                   16,468          12,205
taxation
Tax on profit on ordinary activities                   (5,120)         (3,835)


Profit for the financial year                          11,348           8,370
Dividends paid and proposed                            (3,220)         (2,791)


Retained profit for the financial year                  8,128           5,579


Basic earnings per ordinary share                       24.38p          18.00p
Diluted earnings per ordinary share                     24.38p          18.00p




All amounts shown for both years relate to continuing operations.



The company has no recognised gains or losses during the current and previous
years other than the results reported above.  The results above also represent
the historical cost profit.


Balance sheet
as at 31 March 2001
                                         2001                   2000
                                    #000        #000       #000          #000
Fixed assets
Tangible assets                               34,404                   29,660

Current assets
Stocks                            30,103                 26,541
Debtors                            5,543                  5,045
Cash at bank and in hand             869                     71


                                  36,515                 31,657
Creditors: amounts falling due   (21,572)               (20,163)
within one year


Net current assets                            14,943                   11,494


Total assets less current                     49,347                   41,154
liabilities
Creditors: amounts falling due
after more than one year                      (2,331)                  (2,808)
                                              
Provisions for liabilities and                (2,173)                  (1,917)
charges


Net assets                                    44,843                   36,429


Capital and reserves
Called up share capital                        2,337                    2,325
Share premium account                          8,908                    8,634
Profit and loss account                       33,598                   25,470


Equity shareholders' funds                    44,843                   36,429







Cash flow statement

for the year ended 31 March 2001

                                                                      

                                                          2001          2000
                                                          #000          #000

Net cash inflow from                                    23,210        14,195
operating activities
Returns on investments                                    (289)         (609)
and servicing of
finance
Taxation                                                (4,462)       (3,769)
Capital expenditure                                    (10,765)       (5,767)
Equity dividends paid                                   (2,930)       (2,605)


Net cash inflow before                                   4,764         1,445
financing
Financing                                               (2,253)       (3,424)


Increase/(decrease) in                                   2,511        (1,979)
cash in the year








Reconciliation of net cash flow to movement in net debt

for the year ended 31 March 2001
                                                          2001          2000
                                                          #000          #000

Increase/(decrease) in cash in the year                  2,511        (1,979)
Cash outflow from movement in debt and                   2,539         3,424
lease financing


Movement in net debt in the year                         5,050         1,445
Net debt at start of year                               (8,175)       (9,620)


Net debt at end of year                                 (3,125)       (8,175)






Reconciliation of movements in shareholders' funds
                                                          2001          2000
                                                          #000          #000

Profit for the financial year                           11,348         8,370
Dividends                                               (3,220)       (2,791)

                                                         8,128         5,579
Proceeds from issue of ordinary shares                     286             -

Net movement in shareholders' funds                      8,414         5,579
Shareholders' funds at beginning of                     36,429        30,850
year

Shareholders' funds at end of year                      44,843        36,429




Reconciliation of operating profit to net cash inflow from operating
activities
                                                          2001          2000
                                                          #000          #000

Operating profit                                        16,852        13,197
Depreciation charge                                      5,926         4,520
Increase in stocks                                      (3,562)         (229)
Increase in debtors                                       (498)         (436)
Increase/(decrease) in creditors                         4,492        (2,857)

Net cash inflow from operating                          23,210        14,195
activities






Earnings per ordinary share

Basic earnings per ordinary share represents the post-tax profit for the
financial year of #11,348,000 (2000: #8,370,000) divided by the weighted
average number of ordinary shares in issue of 46,544,722 (2000: 46,508,772).

The diluted earnings per ordinary share is based on 46,551,320 (2000:
46,508,772) ordinary shares, the difference to the basic calculation
representing the additional shares that would be issued on the conversion of
all the dilutive potential ordinary shares.  There is no material difference
to earnings if all the dilutive potential ordinary shares are converted.

Notes

1.      These figures are abridged versions of the company's full accounts for
the years ended 31 March 2000 and 2001 and do not constitute the company's
statutory accounts within the meaning of Section 240 of the Companies Act
1985.  The company's auditors have audited the statutory accounts for the
company and have issued an unqualified audit opinion thereon within the
meaning of Section 235 of the Companies Act 1985 and have not made any
statement under Section 237 (2) or (3) of the Companies Act 1985 for the year
ended 31 March 2001.  Statutory accounts for the year ended 31 March 2000 have
been delivered to the Registrar of Companies.  Statutory accounts for the year
ended 31 March 2001 will be delivered to the Registrar of Companies following
the Annual General Meeting.

2.      Copies of the full accounts will be sent to shareholders in due
course.  Additional copies will be available from John David Sports Plc, Unit
P14 Parklands, Heywood Distribution Park, Pilsworth Road, Heywood, Lancs, OL10
2TT.