Jessops end of year financial summary

The report summarises all business activity in the year ending 30th September which are detailed as follows:

Highlights

Strategic Review of the business undertaken

• Restructuring programme initiated and completed on schedule, enabling Jessops to trade from a clean base into the Christmas period:
• 81 stores closed by end of October
• 20% reduction in central overheads delivered
• £16.8m of clearance stock disposed of by the end of October

Strategic framework for the business developed and put in place

Financial performance

• Loss before financing fees, non-recurring items and tax £7.5m (2006: £13.2m profit as restated) in line with expectations
• Total revenue £325.5m (2006: £350.0m)
• Non-recurring costs related to restructuring of £26.2m, in line with previous guidance.
• A further £4.0m non-recurring costs from a balance sheet review commissioned by the Board
• 2006 prior year restatement of £3.9m pre tax from the balance sheet review
• Total cash cost of restructuring programme £3.6m, below previous guidance
• Goodwill impairment of £30.3m
• Committed new banking facilities put in place in August until 31 December 2008

Key trading points

• Increased share of DSLR market within retained share of total digital camera market
• Order@store launched in August 2007
• Supply chain review commenced in May 2007

David Adams, Executive Chairman, said: “We have put the business in a stronger position for the future. Despite challenging market conditions we have delivered on our initial goals, with the restructuring programme and have set out the strategic framework for the business to operate from; we have solid relationships with suppliers and an enviable market position; and our programme to deliver sustainable profitability in the future is on track, although there is clearly a long road ahead. The Christmas period is hugely important to the business. Whilst trading conditions remain tough we are well prepared with good stock availability and the key period is still to come.”