Dividend up as JJB profits slump

PROFITS have slumped by 26% at JJB Sports but the group, Britain's biggest sportswear retailer, has cheered shareholders with a 33% rise in the half-time dividend.

Chairman and founder David Whelan, who earlier this year abandoned plans to take the business private, also confirmed that the group is negotiating the sale of the TJ Hughes discount department stores business it bought for £43m less than two years ago.

Hughes is expected to raise £50m or more, which JJB is considering returning to shareholders.

Sales remained under pressure at the group amid fierce competition, but have improved in recent weeks, as have margins.

Like-for-like turnover in the core JJB chain for the six months to 27 July was down by 3%, but that has been reduced to a 1.1% fall for the second half so far.

Profits fell from £34.3m to £25.5m. The 33% dividend rise takes the half-time payment to 3p a share, earning just under £3m for the Whelan family, which holds about 40% of the shares.

Finance director David Greenwood said recovering sales gave the group confidence for the full year. He stressed there were no hard feelings after the abortive management buyout.

'It was really a back-handed compliment that they did not want to sell their shares,' he said. 'We have listened to the City about the dividend, and we have raised the payment. They didn't like TJ Hughes, so we have listened and we are selling that. We are firmly back in the Plc fold.'