JJB Sports , the struggling British retailer rescued by a deal with landlords in March, said it will not run out of cash, when issuing a full-year profit warning alongside a wider first-half loss.

We looked at our forecasts fairly hard for the next 12 months and ran a number of scenarios based on the macroeconomic environment and the consumer environment and under all cases we have sufficient funds, finance director Dave Williams told Reuters on Monday.

Wigan, northwest England-based JJB, which counts America's richest man Bill Gates among its major shareholders, ended its half year with net funds of 17 million pounds, having raised 96.5 million over the past year to fund a turnaround plan.

JJB shares fell 19 percent after it said trading had got worse since mid-September as retail market conditions deteriorated.

Retailers are generally struggling as disposable incomes are squeezed by rising prices, subdued wage growth, a lack of credit and government austerity measures.

As with most retailers, our year-end outturn is dependent on Christmas trading, nevertheless if current trading conditions continue our year-end outturn is likely to be worse than our base-budget indicates, JJB said.

Philip Dorgan, analyst at Panmure Gordon, JJB's house broker, said investors' focus would be on whether management can continue to fund the business.

He said there was a risk an expected sales recovery would not materialise and raised his forecast underlying pretax loss for the year to end-January to 50 million pounds from 40 million.

On our new numbers, JJB has minimum headroom of 10 million pounds over its banking facilities, said Dorgan.

JJB, which competes with larger rival Sports Direct as well as supermarkets and online retailers, made an underlying pretax loss of 35.5 million pounds in the 26 weeks to July 31 versus a loss of 21.9 million in the same period a year ago.

The firm, which trades from 195 stores, employing over 4,500, said revenue fell 22.6 percent to 142 million pounds, with sales from stores open over a year slumping 17.7 percent. Gross margin was down 6.4 percentage points.

The results were impacted by the closing of 49 unprofitable stores and the sell-out of old and obsolete stock.

JJB's rescue deal with landlords in March was the second in two years, and allowed it to close poorly performing stores and cut rent payments on others. Without the deal, it would have fallen into administration.

The firm's new strategy is to target keen amateurs, recreational sports participants and sporting families, with better stores and new and improved product ranges.

It is hopeful of a fillip to sales from the Euro 2012 football championships and London Olympics.

We always said it was not going to be quick and it wasn't going to be easy ... but we are making good progress and I think the shareholders at the point at which we went through the capital raisings earlier on this year were very clear this is a three to five year window, said Chief Executive Keith Jones.

Shares in JJB, which prior to Monday's update had lost 85 percent of their value over the last year, were down 2.75 pence at 11.5 pence at 9:59 a.m. British time, valuing the business at 34 million pounds. ($1 = 0.619 pound)

(Reporting by James Davey; Editing by Mark Potter and Helen Massy-Beresford)