Interim Results

RNS Number:8907U
John David Sports PLC
29 November 2000


                                                              29 November 2000


JOHN DAVID SPORTS PLC


           INTERIM RESULTS FOR THE SIX MONTHS TO 30 SEPTEMBER 2000

John David Sports Plc, a leading specialist retailer of fashionable branded
sports and leisure wear, today announces its 2000 Interim Results.

Highlights:-



*     Turnover increased by 20.6% to #100.43 million (1999: # 83.27 million).

*     Like for like sales increased by 9.1%.

*     5 stores opened during the period with 2 closures.

*     Gross profit margin improved from 46.0% to 46.5%.

*     Operating profit increased by 32.0% to #9.58 million (1999: #7.26         
     million).

*     Profit before tax up by 40.0% to #9.32 million (1999: # 6.66 million).

*     Earnings per ordinary share up 40.0% to 13.65p  (1999: 9.76p).

*     Dividend increased to 2.30p (1999: 2.00p), an uplift of 15%.

*     Like for like sales growth of 7.1% since 30 September 2000.



John Wardle, Chairman, said: "I am pleased with our performance in the first
half of the year and consider that the company is in extremely good shape to
fulfil its strategic objectives."



Enquiries:       John Wardle (Chairman)/Peter Cowgill (Finance Director)
                 John David Sports Plc

Telephone:       [phone] (Hudson Sandler) on 29 November 2000
                 Andrew Hayes/Penny Davis
                 Hudson Sandler Limited
                 01706 628000 (thereafter)


CHAIRMAN'S STATEMENT


Introduction

When considered against the relatively weak market demand for clothing and
footwear, I am particularly pleased that the company has maintained its trend
of outperformance in both sales and net profit growth.  In the six month
period ended   30 September 2000, the company has increased it sales by 20.6%
from #83.27m to #100.43m and its pre-tax profit by 40.0% from #6.66m to #
9.32m.

The results strongly support the clearly defined strategy of the company in
developing further market differentiation from its extended product categories
and the expanded ranges of exclusive and own brand merchandise.  The profit
growth is also derived from a modest increase in the number of retail units
which continue to evidence the profitable retail opportunities which are
available in extensive geographical locations.



Results

Turnover increased by 20.6% from #83.27m to #100.43m, and the gross profit
margin continued to rise from 46.0% to 46.5%.  Operating profit for the six
month period ended 30 September 2000 increased by 32.0% from #7.26m to #9.58m
and profit before taxation increased by 40.0% from #6.66m to #9.32m.  Earnings
per ordinary share have increased by 40.0% from 9.76p to 13.65p.



Dividend

The Board proposes to pay an interim dividend of 2.30p per ordinary share
which is 15% ahead of 1999 (2:00p).  This will be paid on 22 February 2001 to
shareholders at the close of business on 12 January 2001.



Trading Review

The six month period under review was one where the results of the retail
strategy have been compelling.  Like for like sales increases of 9.1% have
been derived from the focused approach towards brand differentiation within
the sportswear market place.  Increased market share has been achieved
particularly in the casualwear and ladieswear markets.  JD Sports may be
clearly identified as the leading design led sports and leisurewear retailer.

5 stores were opened during the period and 2 closed, whilst continuing to
apply our demanding store selection criteria.  At the period end, the company
traded from 136 stores occupying a total of 430,000 retail sq ft.  The total
includes 16 out of town/edge of town stores which occupy 109,000 retail sq ft.

The results for the period reflect a charge of accelerated depreciation in
relation to anticipated store closures during the remainder of the year.

Improved operating and balance sheet ratios continue to reflect the improved
management disciplines.

Since 30 September 2000, 6 additional stores have been opened and 2 closed
increasing the retail square footage to 459,000 sq ft.   A further 4 store
opening opportunities have been identified and committed for the remainder of
the year.



Balance sheet and financial resources

The balance sheet as at 30 September 2000 reflects the comparatively low level
of capital expenditure during the period of #3.51m.   Net cash inflows
amounted to #5.88m reducing gearing from 18% at 30 September 1999 to zero at
30 September 2000.  Net cash outflows are, however, anticipated in the second
half of the year which will result in modest gearing levels at the year end.
Shareholders funds at the period end increased to #41.71m.



Current trading and outlook

Despite discounting in the sportswear market, I am confident that the company
is suitably placed in terms of its strategic and brand strength in the market
to deliver continued growth.  Our trading is succeeding in our in town, edge
of town and out of town formats which support considerable further expansion.
Our balance sheet strength also provides a solid platform for growth.

We have noted strong performances in upsized retail locations as a direct
result of the fact that we are able to display our full product ranges which
have been broadened to appeal to a wider customer base.  The improvement in
trade from our larger out of town stores also continues and we have refined
our merchandising and in store trading formats to accommodate our target
customer in such locations.

Our strategic strength, therefore, is that we are sufficiently flexible to
adapt our retailing proposition to the demands of specific locations, thereby
increasing the number of suitable retail opportunities which are available.

Trading continues to be strong with like for like sales in the 8 weeks since
30 September increasing by 7.1% and the gross profit margin has been
maintained in line with the first half uplift.  I acknowledge the significant
influence of Christmas trading on our results for the second half of the year
and turnover comparatives for this period are more demanding than those faced
in the first half.

I am pleased with our performance in the first half of the year and consider
that the company is in extremely good shape to fulfil its strategic
objectives.



Board change

It is with regret that I announce that Peter Cowgill will be resigning his
position as Finance Director of the company as he wishes to pursue alternative
opportunities.  I would like to express sincere thanks for the significant
contribution which Peter has made in establishing the company to its present
strong financial position.



John Wardle

Chairman

29 November 2000



PROFIT AND LOSS ACCOUNT

for the half year ended 30 September 2000


                                         Note  Unaudited Unaudited      Audited

                                                   first     first   year ended
                                                    half      half
                                                                       31 March
                                                    2000      1999         2000

                                                    #000      #000         #000


Turnover                                        100,426    83,271      171,446

Cost of sales                                   (53,754)  (44,957)     (92,503)


Gross profit                                     46,672    38,314       78,943

Operating expenses (net)                        (37,092)  (31,052)     (65,746)


Operating profit                                  9,580     7,262       13,197

Loss on sale of tangible fixed assets               (83)     (236)        (383)


Profit on ordinary activities before              9,497     7,026       12,814
interest
                                                     
Interest receivable and similar income               55        22          106

Interest payable and similar charges               (228)     (389)        (715)


Profit on ordinary activities before              9,324     6,659       12,205
taxation

Tax on profit on ordinary activities       2     (2,977)   (2,120)      (3,835)


Profit on ordinary activities after               6,347     4,539        8,370
taxation
                                        
Dividends paid and proposed                3     (1,070)     (930)      (2,791)


Retained profit                                   5,277     3,609        5,579



Basic earnings per ordinary share          4      13.65p     9.76p       18.00p

Diluted earnings per ordinary share               13.63p     9.76p       18.00p



All amounts shown relate to continuing operations.



BALANCE SHEET

as at 30 September 2000

                                             Unaudited    Unaudited    Audited
                                                 as at        as at      as at
                                          30 September 30 September   31 March
                                                  2000         1999       2000

                                                  #000         #000       #000

Fixed assets

Tangible assets                                29,282       29,160     29,660


Current assets

Stocks                                         29,839       27,727     26,541

Debtors and prepayments                         5,537        5,042      5,045

Cash at bank and in hand                        4,236        2,081         71


                                               39,612       34,850     31,657

Creditors: amounts falling due within         (23,890)     (23,470)   (20,163)
one year


Net current assets                             15,722       11,380     11,494


Total assets less current liabilities          45,004       40,540     41,154

Creditors: amounts falling due after more      (1,534)      (4,164)    (2,808)
than one year

Provisions for liabilities and charges         (1,764)      (1,917)    (1,917)
                                               


Net assets                                     41,706       34,459     36,429


Capital and reserves

Called up share capital                         2,325        2,325      2,325

Share premium account                           8,634        8,634      8,634

Profit and loss account                        30,747       23,500     25,470


Equity shareholders' funds                     41,706       34,459     36,429





RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS
as at 30 September 2000


                                       Unaudited         Unaudited      Audited
                                            as at            as at        as at
                                     30 September     30 September     31 March
                                             2000             1999         2000
                                             #000             #000         #000

Retained profit                             5,277            3,609        5,579

Opening equity shareholders'               36,429           30,850       30,850
funds


Closing equity shareholders'               41,706           34,459       36,429
funds



CASH FLOW STATEMENT

for the half year ended 30 September 2000




                                              Unaudited Unaudited      Audited
                                                   first     first   year ended
                                                   half      half
                                                                      31 March
                                                   2000      1999         2000

                                                   #000      #000         #000


Net cash inflow from operating activities       12,619     6,628       14,195

Returns on investments and servicing of           (173)     (367)        (609)
finance

Taxation                                        (1,184)     (233)      (3,769)

Capital expenditure                             (2,988)   (2,538)      (5,767)

Equity dividends paid                                -         -       (2,605)



Net cash inflow before financing                 8,274     3,490        1,445

Financing                                       (2,396)   (1,746)      (3,424)


Increase/(decrease) in cash                      5,878     1,744       (1,979)




NOTES TO THE INTERIM FINANCIAL STATEMENTS


1    The unaudited results have been prepared using the same accounting         
    policies as those used for the financial statements for the year
     ended 31 March 2000.

2    Taxation has been estimated at the rate expected to be incurred in the     
    full year.

3    The directors have declared an interim dividend of 2.30p per ordinary      
    share of 5p, to be paid on 22 February 2001 to shareholders
     registered on 12 January 2001.

4    Basic earnings per ordinary share represents the profit for the period of  
    #6,347,000 (1999: #4,539,000) divided by the weighted average number of     
   ordinary shares in issue of 46,508,772 (1999: 46,508,772).

5    The financial information set out above does not constitute full statutory 
    accounts within the meaning of Section 240 of the Companies Act 1985.  The  
   amounts shown in respect of the year ended 31 March 2000 have been           
  extracted from the full statutory accounts, on which the auditors have        
 made an unqualified report.  The statutory accounts have been filed with       
the Registrar of Companies.

6    Copies of the interim financial statements will be posted to shareholders  
    and are available to members of the general public from the company's       
   registered office:  P14 Parklands, Heywood Distribution Park, Pilsworth      
  Road, Heywood, Lancashire, OL10 2TT.