Christmas Trading Update

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
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