Discount store halts disastrous profits slide

Jul 23 2008 by Barry Turnbull, Liverpool Daily Post

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%.