LIVERPOOL discount chain TJ Hughes has endured a roller-coaster ride over the last few years, following a tricky period in the ownership of JJB Sports.
The hangover of that deal has taken years to work out, but the latest financial figures from the London Road-based operation show things back on an even keel.
Turnover remained steady at £239m, but the disastrous slide in profits to just £1.1m, in 2006, has been halted with a £5.1m figure for 2007, though that figure includes a £3m one- off receipt of compensation for a store closure.
The company says it will now concentrate on growing business at its existing portfolio of 49 stores, and adding stores in a more measured fashion, rather than following the aggressive expansion plans of previous years.
The directors’ report for the year to January, 2008, states: "The current trading period has been a positive one with an operating profit before exceptional items of £2.9m compared with £700,000 last year. During the 52-week period, total sales increased by £67,000 to £239.5m, despite the closure of one store. Gross profit increased by £2m with gross profit percentage improving from 36.8% to 37.6%.
"In September, 2007, the company vacated a store in Blackburn where the town centre is being redeveloped. This resulted in reduced net trading space of 43,000 sq ft to 1.739m sq ft. The company received compensation of £3m.
"A return to like-for-like sales growth was achieved in the year along with gross profit percentage and profit.
"The company plans to continue this trend of sales growth while maintaining gross profit percentage and controlling costs.
"The external environment remains challenging with retail high street footfall in decline, growth in internet shopping, non-food value merchandising from supermarkets and some mid-market players. However, the company's ability to offer discounted branded product across a wide portfolio remains its key strength."
TJ's was bought by sports chain JJB in 2002, but was later sold and is now owned by private equity firm Silver Fleet Management.
BARRY TURNBULL
