Retail Corporation - Final Results

RNS No 7445n
RETAIL CORPORATION PLC
6 May 1999

THE RETAIL CORPORATION PLC

(The entire Ordinary share capital of the Company is held by Sears Limited,
formerly Sears plc)

PRELIMINARY RESULTS 
FOR THE YEAR ENDED 31ST JANUARY 1999
                                             Notes          1998/99    1997/98
                                                               #m         #m
TURNOVER                     
                     
Discontinued operations                                       36.6      576.2
                     
Cost of Sales                                                   -      (309.6)
                                                           -------     -------
                     
Gross profit                                                  36.6      266.6
                     
Distribution Costs                                            (6.7)    (208.5)
                     
Administrative expenses                                      (19.2)     (64.5)
                     
                                                           -------     -------
TRADING PROFIT/(LOSS)                     
                     
Discontinued operations                          1            10.7       (6.4)
                     
Profit/(loss) on sale of businesses              2            13.4     (150.0)
                     
Restructuring costs                                              -       (3.5)
                     
Loss on disposal of properties                                (1.3)      (0.7)
                                                           -------     -------
                     
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE INTEREST          22.8     (160.6)
                     
Net interest payable                             3           (30.5)      (4.6)
                                                           -------     -------
                     
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                   (7.7)    (165.2)
                     
Tax credit on ordinary activities                              8.3        3.4
                                                           -------     -------
                     
PROFIT/(LOSS) FOR THE FINANCIAL YEAR                           0.6     (161.8)
                     
Dividends on Preference shares                                (0.5)      (0.5)
                                                           -------     -------
                     
ATTRIBUTABLE TO EQUITY SHAREHOLDERS                            0.1     (162.3)
                     
Dividends on Ordinary shares                                 (75.0)     (20.0)
                                                           -------     -------
DEDUCTED FROM RESERVES                                       (74.9)    (182.3)
                                                           =======     =======
NOTES

1.       The trading results principally reflect the operations of Creation
Financial Services Limited (formerly Sears Financial Services Limited).  On
4th January 1999 Creation Financial Services Limited was sold to Sears Limited
for #25m.
       
2.       During 1998/99 the Group completed its exit from the Footwear
business and the surplus disposal provision of #9.4m was released to profit. 
The sale of Creation Financial Services Limited realised a profit of #4.0m. 
The Group is entitled to additional consideration equivalent to the additional
proceeds obtained on the sale of Creation Financial Services Limited by Sears
Limited.
       
3.       Net interest payable predominantly reflects interest on balances
between companies that are within the Sears Limited Group of companies.

The preliminary statement of results for 1998/99 is an abridged version of the
Company's audited 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.

END


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