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I agree 100% with David's (David_c) post above.
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Thanks for the news Simon, however I have removed due to the copyright. If you could post a link, that would be better
Jessops Trading Statement
28 February 2007
28 February 2007
Jessops plc, the UK's number one specialist photographic retailer, today
announces that it has experienced a further deterioration in trading conditions
since its Christmas trading update issued on 8 January 2007.
On the back of a difficult December, recent market data for January, just
received, shows that the UK digital camera market has deteriorated further. For
the UK market as a whole in January, digital compact camera sales were down
10.8% by value, memory cards down 14%, camcorders down 16.8% and digital SLR
camera sales up only 14%, compared to the 30% plus monthly sales increases
typically seen during 2006.
While Jessops achieved modest market share gains in January, this has not been
sufficient to offset the overall market softness. This is reflected in a decline
in total like for like sales in the past seven weeks of -3.4%, which given
weaker comparatives, is a deterioration since our Christmas trading update.
In the light of these worsening market conditions, the Board has decided that it
is in the interests of the business to drive sales volumes by lowering its
margin targets. In addition, the Board is taking a more prudent view of stock,
resulting in stock provisions being increased by #2 million. Accordingly, gross
margins for the year are now expected to be in the region of 2.4 percentage
points below last year's level.
The above factors have led the Board to take a considerably more cautious view
of the out-turn for the current financial year. It now anticipates that profits
for the year ending 30 September 2007 will be approximately #6.5 million.
Trading in the second half, which includes Easter and the key summer selling
season, will be the driver of the Group's profitability in 2007.
Jessops confirms that it has the continuing support of its bankers, HSBC, and is
in the process of renegotiating its banking facilities to reflect these revised
Chris Langley, Chief Executive of Jessops, said: "We had previously indicated
that we expected the digital compact camera market to peak in 2007 and confirmed
in January that the digital compact camera market had continued to be soft over
Christmas. What has surprised us from this latest data is the speed with which
this market appears to have deteriorated and it is very disappointing to have to
revise our forecasts down so significantly.
"In the short term we are taking further actions to minimise costs and control
working capital. In addition, we will accelerate and build on some of the
initiatives we have been exploring for the continued development of the
business, such as online digital printing, new consumer electronics ranges, and
rolling out our "buy online/collect in store" offer."
For further information please contact:
Jessops plc 0116 232 6000
Chris Langley, Chief Executive
Ian Harris, Finance Director
Hogarth Partnership 020 7357 9477
James Longfield/Rachel Hirst/Georgina Briscoe
Notes to Editors
Jessops is the UK's leading multi-channel specialist retailer of photographic
equipment and accessories. It sells a comprehensive range of cameras, camcorders
and photographic accessories, via a network of 315 stores across the UK and
online, at www.jessops.com. It also provides a range of high quality developing
and digital printing services, available in store and online, at Jessops Picture
The company differentiates itself from its competitors through the combination
of its national store portfolio, its online services, its broad product range,
its customer service ethos and the in-depth product knowledge of its staff.
This information is provided by RNS
The company news service from the London Stock Exchange
As with most people I've experienced differing levels of service from the stores but I do find that their pricing policy is way out of line with everyone (just check their memory card prices!).
A couple of things not raised which may add to the problems that Jessops are having:
1) Most consumers now have digital cameras and are usually quite happy with them until they break and need replacing. Unlike the mobile phone industry people don't seem to be as bothered at upgrading every 12 months.
2) More people are using mobiles to take pictures (no idea why but they do)
IMO the big mistake was to ignore your main customers i.e. us and instead chase the high street. I shoot both digitally and on film (have own darkroom) before I'd pop into Jessops on the way home for a roll of film, paper, chemicals, buy a secondhand lense or get them to price match one from the internet etc... but now I've no reason to go as they've stopped all that.
To the Mod who removed one of my postings:
The information is freely available on the net, and was simply cut n pasted, copyright included!
You missed the second one, which was from the same source!
Simon - the first one had a copyright notice that stated 'No reporduction without permission'. The second one didn't (and read like press release from Jesspos themselves).
Fair enough Matt, I missed that.
No point in posting the link to it, as you have to be registered on that site, there are other sites that would have the information though.
Quote: Thats interesting and would fall in line with the usual VC exit strategy that people such as Barclays Venture (the majority owners) take. Out of interest where did you hear this Peter?
The information regarding Warehouse Express comes from within the 'trade'. If you were to ask me 'is the information 100% accurate' I would have to say yes, BUT such exit strategies can take weeks, or even years to come to fruition. Take a prospective 'multi million pound business buyer' trip to the Warehouse Express website & compare its 2007 features to 2006. Keep the words ADDED VALUE running through your mind as a buyer (much the same way as buying, say, a car e.g. air con, extra paint finish, DAB radio etc) & imagine negotiating a valuation for their business.... :o)
Regarding the two Jessops on every High Street remark. This situation came about when they took over other businesses.
If they take over another business they would probably
have 2 options: close one of the shops or keep them both trading. If they closed the shop they would be liable for redundancy payments plus paying up the remainder of the lease. So they probably decided to keep the shop open till the lease expires.
At one time in Birmingham City Centre we had 4 branches all within 30 minutes walk of each other. Two of them just 1 minute walk apart. We now have three.
As for the second-hand equipment, one of the staff told me that the market collapsed when eBay became popular; although Jacobs still stock second-hand.
Bit off tangent re. Jessops but Blacks the outdoor people announced at the end of last week that they are in financial difficulties, making a profit but not as much as expected! Anyhow, they also own Millets and its not uncommon to have a Blacks and a Millets in the same town. Wonder which shops will close?
Millets. So they've said.
Jessops announcement looks like a standard Profit Warning to me. In other words they are coming in under what the spotty faced market boys forecast for them and they're just fulfilling their legal requirement.
Editamned daughters logging me out!!!
Exactly willabob ha ha well said.. Something tells me Jessops aren't going anywhere just now. There really are a lot of people out there waiting for them to fail though, very sad Britain is good at that and can t wait to jump on peoples misfortune.
Quote: spotty faced market boys forecast for them and they're just fulfilling their legal requirement.
How true that is. Its just number crunching and targets that is now taken up by all companies and even small firms. The slightest dip and the alarm goes off with the shareholders who demand an increase each year.
As for Blacks and Millet they are up against the growth of GoOutdoors. The former has the same staff problems that Jessops have.
I m guessing everyone on here that has tarred the staff in all the shops has visited every Jessops and all staff then and knows all their qualifications and experience? hmm thought not.
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