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Sales fall at Beales

Beale PLC, the specialist department store operator annonuced this morning that gross sales for the 52 weeks to 29 October 2005 , including the full value of concession sales and VAT, were 1.5% lower than the pr evious year. Like for like sales for the last 20 weeks of the financial year were 0.6% below those of the pr evious year.

The company said "We expect the trading environment during the all-important Christmas period to be extremely competitive and any increased pr omotional activity is likely to adversely affect margins. However, we are confident that we now have the right team in place to meet the challenges of what we believe will continue to be a difficult trading environment in 2006 and the Board's attention will remain focused on the further enhancement of the pr oduct mix, control of costs and the im pr ovement of sales and margins.

3 November 2005

Beales No Longer In Talks To Sell

Department store group Beales has seen concerns over its pension liabilities deter potential bidders and confirmed that it has ended talks with a potential bidder for the business. Beales said in February that it had received a preliminary approach. Beales said that those talks did not progress to detailed due diligence or an offer. However, in the wake of the announcement of a possible offer, other expressions of interest were made by other parties. These also did not progress "primarily as a result of the group's defined benefit pension liabilities".

In the half year to April 30, Beales saw gross sales fall by 2.4 per cent to £57.9m "reflecting the intensely competitive retail environment". Turnover, which excludes non-commission element of sales made by in-store concessions, fell 5.5 per cent to £34.2m. Pre-tax profits down to £1.08m from £1.27m.Mike Killingley, chairman, said: "In the seven weeks to June 18 gross sales, on a like for like basis, were level with those of last year. The trading environment remains difficult and we do not foresee any significant improvement during 2005.

"The board's attention remains focused on running the business well and delivering value for shareholders. In the short term any improvement in the group's trading performance will come from the continued implementation of our business plan changes, both in product mix and merchandise presentation."

27 June 2005

Beales In Takeover Bid

Department store group Beales has received a potential takeover approach from an unnamed bidder. The 12-store group confirmed the approach in a statement to the stock exchange following movements in its share price. Beales said that "it has held very preliminary discussions with a third party which may or may not lead to an offer for the company", adding that "discussions are at a very preliminary stage."

The business has been struggling against a general downturn in department store sales, as well as price deflation in the UK fashion sector as value retailers grow market share. Last month, the company reported a 5.5 per cent fall in turnover to £65.3m in the year to October 30 2004, with like-for-like sales for the 11 weeks to January 15 were down 3.6 per cent. The City has speculated that investor Lawdene, which owns 24 per cent of the business, could lead a move to take Beales private.

www.beales.co.uk
28 February 2005

Beales Sees Losses

Regional department store group Beales has reported a fall in sales and profits after a year of "intense competition, price deflation and more cautious consumer spending in a very competitive high street". In the year to October 30 2004, Beales saw turnover fall 5.5 per cent to £65.3m, with pre-tax profit down to £0.26m from £1.08m. Gross sales fell by only 4 per cent across the year to £109.6m, down by 5.2 per cent in the first half and by 2.7 per cent in the second half as business plan changes implemented by the group took effect. Gross margin improved from 51.24 per cent to 52.41 per cent.

The group said its first half was disappointing after a very challenging Christmas 2003 trading period. However, the second half saw a more positive sales trend, helped by an improved merchandise selection. The introduction of young womenswear, now in all the group's 12 stores except Winchester, has been particularly successful. The exclusive b. womenswear range has performed to expectations, supporting the branded fashion offer. The refocused trading strategy includes improved product range, shop keeping standards and the store refurbishments. The current year will see the introduction of new departments including audio/TV, childrenswear and arts & crafts into selected stores.

Chairman Mike Killingley said: "We continue to believe that the actions we have taken over the past two years to improve our product range and our stores is making a difference and will be particularly beneficial when the trading environment improves." He added: "The difficulties facing us serve to reinforce our corporate objectives of driving sales growth, improving product selection and profit margins, more focused direct marketing and continued concentration on stock management controls and cost reduction. We hope to build on our improving sales trend, however, given the increasingly challenging trading environment, we do not anticipate dramatic improvements in the present climate."