Final Results

RNS Number:5025X
John David Sports PLC
20 June 2002

20th June 2002



                             JOHN DAVID SPORTS PLC
              PRELIMINARY RESULTS FOR THE YEAR TO 31ST MARCH 2002

John David Sports Plc ("J.D.Sports"), a leading specialist retailer of
fashionable branded sports and leisure wear, today announces its 2002
Preliminary Results.

Highlights:-

•         Turnover increased by 20.1% to £245.6 million (2001: £204.5 million)
•         Operating profit increased by 21.3% to £20.44 million (2001: £16.85
          million)
•         Pre tax profit increased by 21.8% to £20.07 million (2001: £16.47
          million)
•         Earnings per ordinary share increased by 21.4% to 29.61p (2001:
          24.38p)
•         Final dividend increased by 13% from 4.6p to 5.2p (6.9p to 7.8p in
          total)
•         Like for like sales growth of 3.1%
•         Continued improvement in gross margin from 46.46% to 47.01%
•         29 stores opened and 5 small stores relocated increasing retail space
          by 35% during the year.
•         Acquisition of the Sport & Fashion Division of Blacks Leisure Group
          Plc ("Blacks"), completed on 21st May 2002. This division currently 
          trades from 209 stores occupying 495,000 sq.ft. of retail space.

John Wardle, Chairman said:  "I am pleased to announce our results for the year
ended 31st March 2002 and to again report a continued improvement in sales,
margin and operating profits. The acquisition of the Sport and Fashion Division
of Blacks Leisure Group Plc was completed in May 2002 representing a land mark
event in the history of J.D.Sports. The acquisition of this division
significantly enhances the size of the existing group and integration is
progressing well.

I am confident of our continuing success and remain excited by the future
prospects of the company."

Enquiries:

John David Sports Plc                                             01706 628000
Barry Bown (Chief Executive)
Malcolm Blackhurst (Finance Director)

Hogarth Partnership Limited                                       020 7357 9477
Andrew Jaques
Chelsea Hayes


CHAIRMAN'S STATEMENT

I am pleased to report another year of continued improvement during the year to
31st March 2002.

Sales, margins and operating profits have again increased and our competitive
position has also continued to strengthen due to our differentiated offer and
continuing focus on our brand conscious consumer. I am also pleased to report
continued controlled capital expenditure and stock levels, resulting in a
healthy balance sheet at the end of the year.

Integration of the recently acquired Sport and Fashion Division from Blacks
Leisure Group Plc is progressing well and proceeding to plan. This acquisition
significantly increases our market share of the sports and fashion wear market
and earnings should therefore be enhanced in the future, following successful
completion of our integration programme.

As a consequence of the acquisition, the number of stores will increase from 166
to 375 and retail   square footage from 659,000 sq.ft. to 1,154,000 sq.ft.,
significantly increasing the retail space and turnover potential of the enlarged
group.

We remain totally committed to improving profitability and progression of the
enlarged group and will remain focused on our consumer, retail disciplines and
differentiated offer. These factors, together with our unique brand
relationships continue to provide a sound base for the future successful
expansion of J.D.Sports.

RESULTS

Total sales increased by 20.1% during the year to £245.6 million, which included
a like for like sales increase of 3.1%.

Gross profit margins also continued to improve to 47.01% from 46.46% in the
previous year. The improvement in gross margin, together with controlled
operating expenses resulted in an overall increase in operating profits of 21.3%
to £20.44 million from £16.85 million. Operating profit margin therefore
improved to 8.32% from 8.24% in the previous year.

Net profit before taxation increased by 21.8% to £20.07 million in contrast with
£16.47 million in the previous year. Net interest reduced from £0.29 million to
£0.18 million and the effective tax charge for the year remained at 31%.

Earnings per ordinary share improved to 29.61p per ordinary share - an increase
of 21.4% - over the previous year's performance of  24.38p per ordinary share.

DIVIDEND

The Board is recommending a final dividend of 5.2p per ordinary share (2001:
4.6p) subject to the approval of shareholders at the Annual General Meeting.
This combines with the interim dividend of 2.6p per ordinary share (2001: 2.3p)
to provide a total dividend of 7.8p (2001: 6.9p).

The final dividend will be paid on 18th October 2002 to shareholders on the
register at close of business on 20th September 2002.

OPERATING REVIEW

We are pleased to have again improved our sales and margin performance during
the year. Our sales improvements have been achieved against strong comparatives
in the same period last year and in the face of economic uncertainties created
by world events in September 2001.

Our expansion has continued during the period, opening 29 new stores and
relocating 5 smaller stores, adding a net 170,000 sq.ft. of retail space during
the year. At the end of March 2002, therefore, the company traded from 164
stores occupying a total of 650,000 retail sq.ft.. This total includes 27 out of
town / edge of town stores which occupy 191,000 retail sq.ft..

Although our average store size continues to increase we have demonstrated
consistently that we are able to trade profitably from small, medium and larger
stores ranging from 1,500 sq.ft. to 12,000 sq.ft.. New stores continue,
therefore, to be assessed on demanding criteria prior to acceptance and the
performance of existing stores is reviewed on a regular basis.

The company has continued with its strategy of providing main brand fashionable
product, supported by a great number of lines available only at J.D.Sports; the
offer is also further enhanced by an innovative and exclusive mix of own brand
merchandise. Our in house design capabilities ensure that our own brand product
remains at the forefront of fashion and shorter manufacturing lead times
guarantee a rapid response to changes in trends and market opportunities.

Our product mix is 51% footwear, 45% clothing and 4% accessories for the year as
a whole; this mix is broadly consistent with the previous year. Replica kit
represents approximately only 0.25% of our total turnover.

We have continued with our in-store formats of JD Casual, JD Woman, JD Junior,
JD Limited Edition and King of Trainers; marketing campaigns have also remained
consistent with these formats. We strive continually to provide a varied and
pleasurable shopping experience to our brand conscious consumers. This is
achieved via a unique store ambience and high standards of display, which in
turn complement the desirable and innovative branded sports and leisure wear we
have to offer.


BALANCE SHEET & FINANCIAL RESOURCES

Shareholders' funds at the balance sheet date have increased by 22.7% to £55.03
million from £44.84 million as at the end of the previous year.

Total expenditure on fixed assets during the year amounted to £11.9 million
(2001: £11.5 million) of which £10.9 million relates to stores (2001: £10.5
million). Net borrowings decreased from £3.1 million to £2.3 million resulting
in a modest gearing level of 4% (2001: 7%).

Stock levels increased by 21% - broadly in line with increased turnover during
the year.

SPORT & FASHION DIVISION

The acquisition of the Sport and Fashion Division of Blacks was announced in
early May, approved by our shareholders on 20th May 2002 and the transaction was
completed on 21st May 2002.

The acquisition price was £53.2 million, comprising £48.2 million for net assets
and £5 million for goodwill, funded by a new bank facility. The available bank
facility is £80 million in total, comprising a 5 year term loan of £40 million,
together with a revolving working capital facility of £40 million, over the same
period. The acquisition is therefore adequately funded and has been suitably
hedged against any adverse movement in interest rates.

Net turnover of this division for the year to 28th February 2002  - per the
preliminary results of Blacks Leisure Group Plc - was £190.9 million with
operating profits of £4.6 million; gross margin was 46.5% and operating profit
margin 2.4% in contrast with the current operating margin in J.D.Sports of 8.3%.

The division comprises 209 stores providing an additional 495,000 sq.ft. of
retail space. As referred to above, therefore, the enlarged group will now total
375 stores being 1,154,000 sq.ft. of retail space. Around 100 of these stores
presently trade in locations where J.D.Sports has no current representation and
as such do not compete with J.D.Sports in these areas; many stores in other
locations have co-existed for a number of years. The performance of all these
stores should now be further enhanced by increased retail focus, improved
ambience and product differentiation.

The key benefits of the acquisition include increased geographical coverage and
cross-selling opportunities via own brand merchandise. Warehouse space has also
been increased via the acquired business which includes long leasehold
warehousing facilities with future expansion capability as and when required.
Future group cost savings should also ensue via economies of scale and the
enlarged group will also benefit from some centralised efficiencies. The
division will continue to trade as an autonomous business and primarily in its
existing formats.

CURRENT TRADING - SPORT & FASHION DIVISION

Total sales in the 3 weeks since effective control of the division on 21st May
2002, have increased by 3.0% and like for like sales by 1.2% over the same
period last year. Gross margin, as planned, has initially been at a lower level,
in order to clear certain stock lines.

For comparison purposes, total sales for the 11 weeks since the end of March
2002 are down by 6.5% and underlying like for like sales down by 6.1% on a
comparable basis.

No stores have been opened or closed since the date of acquisition.

CURRENT TRADING - J.D.SPORTS

I am encouraged by the trading performance in the 11 weeks since the year end.
Against strong comparatives, total sales have increased by 12.5% against the
same period last year including an underlying like for like sales performance of
3.2%. Gross profit margins have also been maintained during the period.

Since the year end, a further three stores have been opened and one store
relocated increasing retail space in J.D.Sports to 659,000 sq.ft. and number of
stores to 166. A further six sites have presently been identified and one
earmarked for closure.

PROSPECTS

Following the recent acquisition of Blacks' Sport & Fashion Division (which
includes the First Sport, Active Venture and Pure Woman fascias), there will be
an initial period of integration, which will take a number of months. The lead
times of product to store from date of order - for major brands - is
approximately six to eight months. We should, therefore, be in a position to
influence stock content, mix and depth of product in this division, to a greater
extent, from December / January onwards. In the meantime, existing stocks,
accessories and fragmented lines will be sold through - preserving margins as
far as possible - in readiness for the Christmas period.

The division will be refocused, applying attention to detail and our retail
disciplines. Stock content and depth will be improved and our merchandising and
replenishment strategies will be implemented. Some cosmetic adjustments will
also be made to existing store ambience and product displays in order to cater
for our brand conscious consumers. There will ultimately be substantial
cross-selling opportunities via our own brand labels and particularly regarding
around 100 locations where there is no current representation by J.D.Sports.

J.D.Sports will therefore have greatly increased scale and buying power together
with the ability to control the management of fascia, brand and product
positioning in the newly acquired division.

In the future, we will strive to increase the operating profit margin of this
division from its current level of 2.4% to nearer our present level of 8.3%.
There is, therefore, significant upside in profitability if this can be
achieved.

As far as the current J.D.Sports chain is concerned, there still remains a
significant expansion opportunity. From our present store base of 166 stores, we
believe that this can be further expanded in the U.K. to around 300 to 350
stores. As new stores are now generally larger - i.e. between 6,000 and 8,000
sq.ft. on average -  this effectively means that retail space can be greatly
increased via the J.D.Sports fascia alone. There will also be further expansion
opportunities via the First Sport and Active Venture formats.

As both J.D.Sports and the acquired division co-exist in the sports market and
the much wider fashion market, this level of expansion in the future should be
comfortably accommodated within the total clothing and footwear markets.
Controlled expansion of the J.D.Sports chain will therefore continue on an
annual basis, to the eventual levels indicated.

In summary, I am pleased with our continued improvement in sales, margin and
operating profits. The acquisition of the Sport and Fashion Division from Blacks
represents a land mark event in the history of J.D.Sports.

I am confident of our continuing success and remain excited by the future
prospects of the company.

John Wardle
Chairman


20th June 2002



Profit and loss account
for the year ended 31 March 2002

                                                                                    2002             2001
                                                                                    £000             £000

Turnover                                                                         245,621          204,465
Cost of sales                                                                  (130,144)        (109,469)

Gross profit                                                                     115,477           94,996
Distribution costs                                                              (88,346)         (72,014)
Administrative expenses                                                          (6,759)          (6,152)
Other operating income                                                                67               22

Operating profit                                                                  20,439           16,852
Loss on sale of tangible fixed assets                                              (187)             (95)

Profit on ordinary activities before interest                                     20,252           16,757
Interest receivable                                                                  104              154
Interest payable and similar charges                                               (283)            (443)

Profit on ordinary activities before taxation                                     20,073           16,468
Tax on profit on ordinary activities                                             (6,235)          (5,120)

Profit for the financial year                                                     13,838           11,348
Dividends paid and proposed                                                      (3,646)          (3,220)

Retained profit for the financial year                                            10,192            8,128

Basic earnings per ordinary share                                                 29.61p           24.38p
Diluted earnings per ordinary share                                               29.60p           24.38p

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 2002
                                                            2002                       2001
                                                            £000          £000         £000           £000
Fixed assets
Tangible assets                                                         40,033                      34,404

Current assets
Stocks                                                    36,472                     30,103
Debtors                                                    6,574                      5,543
Cash at bank and in hand                                     986                        869

                                                          44,032                     36,515
Creditors: amounts falling due within one year          (22,880)                   (21,572)

Net current assets                                                      21,152                      14,943

Total assets less current liabilities                                   61,185                      49,347
Creditors: amounts falling due after more than
 one year                                                              (3,134)                     (2,331)
Provisions for liabilities and charges                                 (3,016)                     (2,173)

Net assets                                                              55,035                      44,843

Capital and reserves
Called up share capital                                                  2,337                       2,337
Share premium account                                                    8,908                       8,908
Profit and loss account                                                 43,790                      33,598

Equity shareholders' funds                                              55,035                      44,843



Cash flow statement
for the year ended 31 March 2002
                                                                              2002                  2001
                                                                              £000                  £000

Net cash inflow from operating activities                                   21,460                23,210
Returns on investments and servicing of finance                              (179)                 (289)
Taxation                                                                   (5,324)               (4,462)
Capital expenditure                                                       (11,816)              (10,765)
Equity dividends paid                                                      (3,365)               (2,930)

Net cash inflow before financing                                               776                 4,764
Financing                                                                    (659)               (2,253)

Increase in cash in the year                                                   117                 2,511


Reconciliation of net cash flow to movement in net debt
for the year ended 31 March 2002
                                                                                2002                      2001
                                                                                £000                      £000

Increase in cash in the year                                                     117                     2,511
Cash outflow from movement in debt and lease                                     659                     2,539
financing

Movement in net debt in the year                                                 776                     5,050
Net debt at start of year                                                    (3,125)                   (8,175)

Net debt at end of year                                                      (2,349)                   (3,125)


Reconciliation of movements in shareholders' funds
for the year ended 31 March 2002
                                                                                     2002              2001
                                                                                     £000              £000

Profit for the financial year                                                      13,838            11,348
Dividends                                                                         (3,646)           (3,220)

Retained profit for the financial year                                             10,192             8,128
Proceeds from issue of ordinary shares                                                  -               286

Net movement in shareholders' funds                                                10,192             8,414
Shareholders' funds at beginning of year                                           44,843            36,429

Shareholders' funds at end of year                                                 55,035            44,843


Reconciliation of operating profit to net cash inflow from operating activities
for the year ended 31 March 2002
                                                                                   2002                2001
                                                                                   £000                £000

Operating profit                                                                 20,439              16,852
Depreciation charge                                                               6,000               5,926
Increase in stocks                                                              (6,369)             (3,562)
Increase in debtors                                                             (1,031)               (498)
Increase in creditors                                                             2,421               4,492

Net cash inflow from operating activities                                        21,460              23,210


Earnings per ordinary share

Basic earnings per ordinary share represents the profit for the financial year 
of £13,838,000 (2001: £11,348,000) divided by the weighted average number of 
ordinary shares in issue of 46,740,477 (2001: 46,544,722).

The diluted earnings per ordinary share is based on 46,749,756 
(2001: 46,551,320) 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 2001 and 2002 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 2002.  Statutory accounts for the year ended 
     31 March 2001 have been delivered to the Registrar of Companies.  Statutory
     accounts for the year ended 31 March 2002 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.

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