Retail Corporation - Final Results

RNS No 6155j
THE RETAIL CORPORATION PLC 
28th April 1998


             THE RETAIL CORPORATION PLC AND SUBSIDIARY UNDERTAKINGS
   (The entire Ordinary share capital of the Company is held by Sears plc)
                                       
                              PRELIMINARY RESULTS
                      FOR THE YEAR ENDED 31 JANUARY 1998
                                       
                                                   Notes 1997/98 1996/97
                                                           #m       #m
TURNOVER                                                             
Continuing operations                                1    31.5     26.9
Discontinued operations                              2   544.7    758.7
                                                         _______  ______
                                                         576.2    785.6
TRADING PROFIT/(LOSS)                                                
Continuing operations                                      9.5      3.9
Discontinued operations                                  (24.6)   (22.5)
                                                         ______   ______
                                                         (15.1)   (18.6)
                                                                     
Loss on sale of continuing operations                       -     (4.8)
Loss on sale of discontinued operations              3   (150.0)    -
Loss on disposal of properties                            (0.7)   (1.9)
                                                         ______   ______
LOSS ON ORDINARY ACTIVITIES BEFORE INTEREST              (165.8)  (25.3)
                                                                     
Net interest payable                                      (4.6)   (7.1)
                                                         ______   ______
                                                                     
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION              (170.4)  (32.4)
                                                                     
Taxation                                                   5.1     24.8
                                                         ______  _______
                                                                     
LOSS FOR THE FINANCIAL YEAR                              (165.3)  (7.6)
                                                                     
Preference Dividends                                      (0.5)   (0.5)
                                                         _______  ______
ATTRIBUTABLE TO ORDINARY SHAREHOLDERS                    (165.8)  (8.1)
                                                                     
Dividends on Ordinary shares                             (20.0)  (250.0)
                                                         ______   ______
DEDUCTED FROM RESERVES                                   (185.8) (258.1)
                                                         ======= =======
                                                            

NOTES

1.    Continuing operations principally reflect the results of SearsCard.

2.    The decrease in turnover from discontinued operations reflects progress
      made in withdrawing from the Footwear business and the sale of Selfridges
      on 27 November 1997.

3.    Loss on sale of discontinued operations includes #150m charged for the
      exit from Footwear. This principally comprises net losses on disposal of
      individual businesses, asset impairment,redundancies and other exit costs,
      partially offset by net profit on disposal of footwear properties. The
      sales agreements include transitional arrangements for the provision of
      support services to the purchasers for periods to July 1998.

 Selfridges Ltd was sold to Sears plc on 27 November 1997 for a price equal
 to the value of net assets at that date, hence no profit or loss arose on
 disposal.

      ********************************************************************

 The preliminary statement of results for 1997/98 is an abridged version of
 the Company's unaudited full accounts and has been agreed with the Company's
 auditors. The statutory accounts will be filed with the Registrar of
 Companies in due course.

FOOTWEAR

Following the decision to exit from Footwear the process is going according to
plan. The expected cost of exiting from the remaining businesses remains
within the anticipated cost of #150m.

SELFRIDGES

The sale of Selfridges Ltd. to Sears plc was completed on 27 November 1997.
Profits from the Oxford St. store declined due to increased markdowns caused
by a number of factors including the refurbishment programme and higher
depreciation in respect of MasterPlan investment.

SEARSCARD

SearsCard increased its profit in 1997/98, reflecting a successful year.
Income was higher with 18% more accounts opened during the year. A joint
venture agreement with Equifax, signed recently, will improve the future cost
base. The business will continue to maximise the potential from relationships
with retailers and at the same time benefit from extending customer services
and processing capability to third parties.


END

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