JJB Sports Plc has reported a drop of 28.5 per cent in full year profits for the full year 2007. The sports retailer said that its total pre-tax profits fell from £47.2 million down to £33.8 million last year.
The company reported a slight increase in revenue from £810.3 million to £811.8 million in 2007 and proposed a final dividend of 7.0 pence per share, unchanged from the previous year.
JJB Sports said that it had made a restructuring provision of £25 million to implement a store closure programme, designed to strengthen the company's store portfolio.
In the seven weeks to 16 March 2008 JJB Sports said that its total revenue was 3.5 per cent lower than in the same period last year.
Roger Lane-Smith, chairman of the company, said, We are taking significant action to improve the performance of JJB's retail
stores. Whilst we have identified a number of stores for closure, which will itself strengthen our remaining store portfolio, we are also investing to improve the quality of our stores and product with further store refits, the introduction of new products from our own brands and the implementation of staff training and incentivisation programmes.
We also plan to continue to open more combined fitness clubs and superstores, which continue to deliver strong results.
Whilst we expect current difficult market conditions to continue to affect consumers in the short term, we believe the action we are taking represents a turning point for the Company, which will benefit performance over the medium-term.