Hughes profits leap

By THIS IS MONEY
Updated: 18:00 EST, 27 March 2000

TJ Hughes proved discount retailers are still winning the high street battle today, by announcing a 27% leap in full-year profits. The fast expanding Liverpool-based chain also said it would continue its store roll-out plans.

Hughes said pre-tax profits for the year to January 29 had jumped to £6.5 million, up from £5.1 million last time.

And sales leapt to £125.8 million from £101.5 million.

George Foster, chief executive said: 'These record results demonstrate the strength of TJ Hughes' quality discount department store retail formula.'

Like-for-like sales during the year, stripping out the effect of new openings, were up by 7.3%. And comparable sales for the first eight weeks of the current year had also started well - up 8%.

The upbeat results follow similar trends among rival cut-price retailers and provide further evidence that discount chains are winning business from middle-priced shops.

Last month discount stores chain Brown & Jackson reported a jump in half year profits and sales.

Hughes said one benefit from the middle-ground retailers feeling the competitive pressure was that there was more opportunity to snap up retail sites.

During the year, Hughes opened three new stores in Eastbourne, Wrexham and Middlesborough.

Since the year end it opened two stores, in Boscombe and Crawley, while shops in Weston-Super-Mare and Burnley are due to open in the next two weeks - giving it a total of 29 stores.

Shareholders will benefit from the leap with a 15% increase in dividend - up from 3.88p to 4.46p.