Trading Statement

 

TIDMINST 
 
RNS Number : 7468L 
Instore PLC 
16 January 2009 
 
16th January 2009 
 
 
INSTORE PLC 
 
 
INTERIM MANAGEMENT STATEMENT 
 
 
 
 
The Board of Instore plc today gave the following update on trading. This 
statement constitutes the Company's Interim Management Statement issued in 
accordance with the Disclosure and Transparency Rules: 
 
 
As has been well documented, the Christmas trading period was an extremely 
challenging one across the retail sector. In particular the value sector has 
been significantly affected by the heavy discounting undertaken by the 
administrators of Woolworths throughout the run up to Christmas. 
 
 
Total sales for the 18 weeks ending 3rd January 2009 were up 0.52% on last year 
and down 0.70% on a like-for-like basis.For the final 5 weeks of this period, 
total sales were the same as last year and down 1.92% on a like-for-like basis 
 
 
Within these figures our food and toiletries offer has performed well across our 
core estate, and the pilot of the new store layout, which is now in 19 outlets, 
has shown an encouraging sales performance. In addition, we have continued to 
renegotiate our cost prices through direct sourcing and to significantly reduce 
the cost base.    As such, progress towards restoring the longer term 
profitability of the Company's core business continues and the Board remains 
confident, despite the current difficult trading environment, of the longer term 
outlook. 
 
 
If the Ponden Mill stores are excluded, the Board expects to report a similar 
level of loss pre exceptionals for the year as was reported for the year ending 
1st March 2008. 
 
 
The performance of the Ponden Mill stores, acquired in December 2007, has been 
disappointing. Of the 33 stores originally acquired, 13 have now been closed and 
the Board is considering various options for the future operation of this part 
of the Group. 
 
 
Given the performance of the Ponden Mill stores, and although there remain six 
weeks of trading before the year end on 28th February, the Board now expects to 
report a full year loss for the Group of between GBP4.5m and GBP5.0m. 
 
 
Finally, the Board is pleased to report that the Company's banking partners 
remain supportive of the initiatives being taken to restore the Company to 
longer term profitability. 
 
 
 
 
For further information, please contact 
 
 
Ebrahim Suleman    Group Finance Director                              01484 
431444 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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