Beales sales improve

Jun 29 2009 By nebusiness

Beales department stores today reported a slowing in sales declines and said action to turn the business around was starting to pay off.

The group’s same-store sales for the most recent 15 weeks dropped by 1.6% in a marked improvement on the 3.3% decline seen the previous 11 weeks and 7.8% plunge at the full-year stage.

But half-year pre-tax profits fell 38% to £543,000 and Beales reiterated warnings made earlier this year over a "material uncertainty" due to limited headroom in its banking covenants.

The Bournemouth-based firm confirmed it may have to renegotiate its banking agreements if economic conditions worsen and impact sales - a move that could threaten its ability to continue as a going concern.

Beales sought to reassure its current sales forecasts and revival plans were set to see it comply with bank terms and restore profits growth.

Mike Killingley, chairman of Beales, told investors: "The key to improving the fortunes of your 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."

Eight of the company’s stores trade as Beales - Bedford, Bournemouth, Horsham, Kendal, Poole, Tonbridge, Winchester and Worthing, while the remaining three trade under their own individual name - Broadbents & Boothroyds of Southport, Denners of Yeovil and Whitakers of Bolton.