UK retailer Blacks Leisure H1 losses widen - AFX


LONDON, Oct 31 (Reuters) - Blacks Leisure Group, the British outdoor clothing and footwear retailer, on Friday said half year losses widened by 55 percent but the group's turnaround plan was making good progress.

The company, which has 428 stores selling camping equipment and outdoor clothing, reported a pretax loss for the six months to end-August of 6.7 million pounds on sales 9.4 percent lower at 133 million pounds.

Blacks, in the first year of a turnaround plan under new Chief Executive Neil Gillis, said its outdoor business -- 260 Millets stores and 110 Blacks Outdoor stores -- performed broadly in line with expectations in the first half, recording a 5.2 percent fall in like-for-like sales.

However, it said its boardwear business -- 57 Freespirit, Mambo, Animal and O'Neill stores -- endured a 'very difficult' market with like-for-like sales slumping 16.1 percent.

Blacks said group like-for-like sales were down 7.7 percent in the first-half but that its trading performance over Christmas would be key to shaping the group's annual results.

'The outlook for the remainder of the year will be influenced by trading over the important Christmas period and possibly, wider economic factors,' Chairman David Bernstein said in a statement.

The retailer, which has issued three profit warnings already this year, said the initial phase of its turnaround plan was going well and that it had reduced costs by 5.6 million pounds and had made improvements in working capital, with stock at the half year being 10.5 percent below the prior year.

Thinks this one is going to be a fantastic recovery stock especially when the new CEO takes over in the summer.

Published in Company Comment on 5 May 2011
8 comments With the worst seemingly behind it, is Blacks set to multi-bag?

Back in January 2010, I pointed out that a certain niche High Street retailer appeared to have come back from the dead. Arguing that fortune favours the brave, I pointed out that the shares looked cheap, and that a lot of any likely bad news was already reflected in the price.

Today, I'm going to point out that the shares still look cheap, that a lot of likely bad news seems to be already reflected in the price -- and that once again, fortune favours the brave.

In the meantime, the price in question has slumped from 55p to 15p, and shareholders have been tapped for cash to keep the business afloat.

So stop reading here, if you're of a nervous disposition.

Trainwreck ahead
The niche retailer in question, of course, is outdoorwear specialist Blacks Leisure (LSE: BSLA), which owns the Blacks and Millets retail brands, as well as -- for a few more months -- a handful of Freespirit surfwear stores.

And there's little doubt that management, shareholders and employees have had a torrid time of things over the past three years, with wholesale store closure programmes, debt-refinancing, and the withdrawal from once-promising markets. Corporate turnaround specialist Neil Gillis, chief executive for most of the last three years, has certainly had his hands full.

Yet, as this week's release of its latest results show, he does appear to have wrought his familiar magic. Blacks, in short, was once heading for the buffers -- and Mr Gillis has confounded many by managing to adroitly steer the business around the resulting trainwreck.

And, as he said when presenting the results, "I am proud of what we have been able to achieve, in particular the fact that we have been able to preserve a business which provides the livelihoods of around 4,000 dedicated staff across the British Isles."

For sure, at one point, that seemed a most unlikely outcome.

Painful cuts
There's no doubt that the medicine meted out by Mr Gillis was painful. 112 stores were closed, and a sub-brand put into administration. But new stores have been opened, expensive leases have been renegotiated, and the company has pulled through the worst recession for 60 years.

Highlights of its latest figures:

■Revenues down 16% to 202m


■Loss before tax reduced to 5.3m from 43.6m


■Loss per share down to 6.6p from 108.9p


■New stores performing strongly


■Banking facilities extended to July 2012, and further extended to November 2012 upon the new Chief Executive commencing employment with the Group
Yes, that's right: as had been half-expected, Mr Gillis is stepping down. He is, according to the Financial Times, "famed for his three-year periods of tenure", and the requisite three years ends shortly.

His replacement? Julia Reynolds, currently CEO at Figleaves.com -- and before that, category director at Tesco (LSE: TSCO) responsible for the introduction and subsequent success of the company's Florence & Fred clothing range.

Apart from that, the results look reasonable, given where the company has come from. Certainly, sales that are down 16% in the present retail environment -- and in a period where the company has closed something like a third of its stores -- seems no cause to rush for the exits.

So, is it a buy?
Clearly, this is a ghastly time to be in retail. Especially when what you're selling isn't the basic stuff of everyday life.

And -- as the current worrying slew of consumer confidence and Bank of England agents' reports point up -- the next few months aren't going to be easy.

But Blacks' worst days do seem to be behind it, even though the shares are down 80% from their pre-recession high. And while the shares could join the doomed club of companies that have lost over 90% of their value, that does to me seem to be increasingly unlikely.

In short, if you're looking for a retail multi-bagger that will hit paydirt over the next three or four years, you won't find it in Tesco, Marks & Spencer (LSE: MKS) and J. Sainsbury (LSE: SBRY). But you just might in Blacks.

More from Malcolm Wheatley:

Blacks Leisure: 'significant doubt' over future


Harry Wallop, 15:54, Thursday 27 October 2011

The fragility of finances at Blacks Leisure was laid bare after the camping and outdoor retailer unveiled a doubling in losses, and "dire" current trading.

The company, which has been hit by unseasonably warm weather, a consumer downturn and a shareholder battle, said that is future was in doubt. In a statement, published as part of its half-year results said: "A material uncertainty exists that may cast significant doubt about the Group's ability to continue as a going concern."

Its (Euronext: ALITS.NX - news) current banking facilities run out in November (Stuttgart: A0Z24E - news) 2012 and it has until the end of February next year to work out how it will it replace this 35m facility before more onerous banking covenants kicked in

Down and out..

Over and out.

A wind -up agreement before the years end I believe.

This is the end.
no surprise my local was run by long haired hippies more concrned with talking to their drug adled mtes than serving any customers.

http://www.bing.com/videos/search?q=video+of+dad's+army+were+doomed&docid=1280241697588&mid=6A8870D22D0050F274DA6A8870D22D0050F274DA&FORM=VIRE1#

were doomed..lol.

Not me . lol, You dont hold these mitzy?

http://www.bbc.co.uk/news/business-16313138

No way do I hold.

I thought you might buy in on the low today.lol . JJb sports could struggle soon to.

Staff will lose their jobs but its inevitable but still sad.

Trading less than 1 new penny.

1.25

+0.50 (+66.67%) wow

Incredible.

Blacks Leisure Group Share Price


1.12 -0.12 (-11.11%)

Into administaration according to SKY news .

From the proverbial - Blacks Leisure to go into administration

Blacks Leisure has said it is to briefly enter administration as part of a takeover deal.

The so-called prepack arrangement will wipe out the value of existing shares, which have now been suspended from trading on the London Stock Exchange.

MORE than 3500 workers face an agonising wait after outdoor chain Blacks confirmed plans to go into administration.

Blacks, who have 98 stores and own 208 Millets outlets yesterday said they had failed to find a buyer after they were put up for sale.

After they go into administration next week, the bulk of the chain is expected to be bought by JD Sports.

The deal would see most of their £36million debts wiped out and their worst-performing stores closed.

JD Sports’ £20million cash offer is believed to have beaten rivals including Newcastle United owner Mike Ashley’s Sports Direct, Blacks’ largest shareholder.

Dragons’ Den tycoon Peter Jones was thought to be among the bidders, as were Scots outdoor chain Trespass and Mountain Warehouse.

Millets and Blacks leisure in administration? Now is the winter of our discount tent.

Gausie ur so camp

JD Sports Fashion Plc

Acquisition of trading assets and trade of Blacks Leisure Group Plc

JD Sports Fashion Plc ('JD' or 'the Group'), the leading retailer of sport and athletic inspired fashion apparel and footwear, announces that it has acquired the trading assets and trade of Blacks Leisure Group Plc and certain of its subsidiaries ('Blacks') from its Administrators for a total cash consideration of £20 million excluding fees, Retention of Title and other claims arising consequent upon the Administration process. The assets acquired comprise principally inventories, fixtures and fittings and intellectual property and the consideration is being funded from cash resources and existing bank facilities.

Blacks is a long established retailer of specialist outdoor footwear, apparel and equipment and has two fascias (Blacks and Milletts) and was trading from around 290 stores at the point of its administration. In addition to selling third party brands such as North Face and Berghaus, Blacks has two strong own brands in Eurohike and Peter Storm. We will evaluate the performance of each store in the coming months in order to reach a conclusion about the number of stores which will be retained long term.

Blacks audited accounts for the period ended 26 February 2011 showed an operating loss of £2.5 million.

We will be retaining a senior management team at Blacks led by the Chief Executive, Julia Reynolds. Following the elimination of any underperforming stores and other cost reduction initiatives we believe the business can be run successfully as independent fascias within the Group.

Given that the acquisition has been completed in the quietest trading point of the year and with low current stock levels, we anticipate that the acquisition of Blacks will lead to a minor reduction in earnings in the remainder of the year to 28 January 2012. Thereafter, the earnings impact of Blacks will depend on how quickly we can deal with the store portfolio, rejuvenate the offer and realise the necessary cost reductions and synergies. We anticipate that Blacks will not make a material difference to the Group's overall performance in the year to January 2013.

Peter Cowgill, Executive Chairman of JD Sports Fashion Plc, said:

''We are delighted to add another leading multi-branded retail proposition to our portfolio of retail businesses. We believe with the support of JD's operational disciplines and financial strength, along with the existing Blacks management team, we can restore the Blacks business to a profitable market leading position.''

JD Sports Fashion Plc will be announcing its trading statement covering the Christmas period on Thursday 12 January 2012.

Appointment of Administrators.