TDH
TDH
Tradehold - Trading statement - Instore plc
Tradehold Limited
(Registration number 1970/009054/06)
(Incorporated in the Republic of South Africa)
JSE code: TDH & ISIN: ZAE000026902
("Tradehold")
Shareholders" attention is drawn to a statement issued by Tradehold"s
subsidiary, Instore plc, on 13 February 2006 and which appears below.
"INSTORE plc"
TRADING STATEMENT
Since reporting relatively strong sales through the Christmas and New Year
trading period, Instore plc has seen a significant shortfall in sales against
internal expectations in the 4 weeks to 11th February 2006. As a result, full
year profits for the twelve-month period to February 25th 2006 will be
substantially below current market expectations.
Total like for like (LFL) sales for the 6 weeks ending 15th January 2006 were up
3.8% with instore up 5.4% LFL and Poundstretcher up 2.0% LFL. In subsequent
weeks, however, like for likes are broadly level, but significantly below
internal expectations.
Margins for the period have been slightly behind expectations though they
continue to be 1.0% ahead of last year.
Operating costs, in particular in our new Distribution Centre, have continued to
run ahead of forecast.
Not withstanding this disappointment we expect to close the year with a positive
cash position. We have embarked on an external review of our Distribution Centre
processes in order to bring down operating costs and believe we are taking the
necessary actions in other areas to reduce our cost base in readiness for the
new financial year.
As a result, the Board now expects profits before tax and exceptional items for
the year to be significantly below last year"s IAS-adjusted profit number of
GBP6.8m.
Commenting on the results, Christo Wiese, Chairman of Instore plc said:
"The downturn in trading against our expectations in the last 4 weeks is
disappointing. As a result, we expect the current challenging trading
environment to continue and our forward planning reflects this."
For further information, please contact
Instore Plc Angus Monro Chief Executive 0870 240 4600
Gary Brown Finance Director
ReputationInc Tom Wyatt 020 7758 2800"
Johannesburg
13 February 2006
Sponsor:
Barnard Jacobs Mellet Corporate Finance (Pty) Limited
Date: 14/02/2006 08:09:03 AM Produced by the JSE SENS Department
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