JJB Sports sounds alarm on trade

JJB SPORTS has warned that trading conditions remain tough and could worsen, and confirmed that it is still considering a management buyout following the collapse in its share price since its profits warning three months ago.

The group, Britain's biggest sports retailer, remains in shock after the suicide on Monday of its chief executive Duncan Sharpe, son-in-law of chairman Dave Whelan. Finance director David Greenwood said a buyout was only one option and the group was looking at a number of other areas, although he declined to be specific.

JJB has been hit by fierce competition, particularly from the resurgent Marks & Spencer and Bhs. Pre-tax profits for the six months to 31 July tumbled by 16.8% to £39.3m, including a poor performance from the discount clothing chain TJ Hughes, which it bought in April. The interim dividend is maintained at 2.25p.

Excluding Hughes, turnover rose by 4.2% to £362.5m but the like-for-like increase was only 0.1%. The sales performance has worsened in recent months, with like-for-like sales declining by 1.1% in the first 10 weeks of the second half, although this was better than some analysts had feared.

The Hughes business has also weakened further, with sales down by 9.2%. JJB's shares jumped as high as 150p on buyout hopes but later came back to 143 1/2p, up 7 1/2p on the day.