John David Group profits plunge

PROFITS at John David Group – the company behind the JD Sports leisurewear chain - have slumped from £15.1m to £6m and new chairman Peter Cowgill, the former finance director who stepped in eight weeks ago, said he continues to review all 'strategic options'.

Like-for-like sales for the year ended 31 January were 0.4% lower although Cowgill said the group had moved into positive territory in the second half. Total sales for the year were £458m against £371m for the 10 months to end January 2003.

The group has issued a series of warnings and had already told the market its figures would be at the lower end of expectations.

The dividend is held at 6.5p. Cowgill says he is encouraged by current trading, with a like-for-like advance of 0.9% for the group over the 13 weeks to 1 May. If the struggling fashion shops are excluded, the core sports business is ahead by 2.5%.

Cowgill said his strategic review will take another three or four months to complete, but all options are being considered. No takeover approaches have been made to the board but JD's founders, John Wardle and David Makin, are said to be considering the sale of part of their 50% stake. Both remain on the board as non-executive directors but have invested heavily in Manchester City Football Club.

Cowgill said he was 'modestly pleased' with trading and is confident that the group can deliver a profits recovery.

The shares lost 10p to 214p in early trading.