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Beales feels effect of administrations

Published: 30 June 2009
Turnover remains stable with a small drop in post tax profit, but concession sales hit by administrations.
The results for the department store chain for the 26 weeks to May 2 this year saw revenue dip from to £26.7m from £26.8m in the same period last year, despite what the company described as "extremely difficult high street trading conditions".

Profit after tax for the period declined by £30,000 to £543,000 despite "good sales growth" in categories including housewares and linens.

However, concession sales were down 6% as a number of the concession brands fell into administration, including Royal Worcester.

Commenting on the results, chairman Mike Killingley said: "The economic environment in the UK provides extremely challenging trading conditions for retailers. We expect these conditions to continue in the second half. The key to improving the fortunes of [the] group remains to increase sales while improving margins.

"We are continuing to pursue an aggressive promotional strategy, growing our buying-in margins and focusing on cost control. When the economic environment improves we are confident that the action being taken will enable us to restore the group to full year profitability."

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