UK's Brown & Jackson like-for-like sales rise 3.9%
(Adds more detail, background)

By Dan Lalor

LONDON, July 28 (Reuters) - British discount retailer Brown & Jackson Plc's sales are growing ahead of target as its new Instore brand beats expectations, the company said on Wednesday.

Like-for-like sales rose 3.9 percent year on year in the 14 weeks to July 24, with total group sales up 2.5 percent. "Margins in the same period are ahead of last year and stock levels have reduced since the year end," chairman Christo Wiese also said in a statement.

At 1125 GMT, Brown & Jackson (LSE: BRJK.L - news) shares were up 6.7 percent at 64 pence to value the firm at 149 million pounds ($271 million).

House broker Numis Securities analyst Iain McDonald said it was an excellent performance "given that the retail sector as a whole does not appear to have had the best of summers".

But McDonald, who rates Brown & Jackson shares a "buy" with a 90 pence target, said he would not be changing his forecasts given that it was early in the company's financial year, which runs to the end of February.

Wiese said 31 Poundstretcher stores have been converted to 'Instore' in its current financial year, making a total of 38 stores trading under the brand. There are 291 Poundstretchers.

"Sales in these (Instore) stores are ahead of expectations, and we continue to be positive about prospects for the continuing conversion of Poundstretcher to Instore," Wiese said.

On April 22, Brown & Jackson launched a 25.4 million-pound rights issue to fund the conversion of Poundstretcher stores, whose downmarket image was deterring shoppers, into more modern Instores over the next three to four years.

Key categories for the retailer include homeware, which makes up around 40 percent of total sales, children's clothing and seasonal products, particularly those relating to gardening in the spring and summer months.

With all these buys going through, I think it's time the mm's stopped taking the p!ss and moved the price back up. A markdown of 3p is an insult.

am i seeing right 60 pence,it was 10% more than that yesterday,with no news.

Tell me about it. MM's are trying to steal the stock if you ask me. Down 3.5p on solid results. Give me a break!

Hi dave, hows it hanging??

;-)

ok sw,i have pinnid a few pound notes on this brown & jackson,i was full of confidence last night the figures where better than i thought they would be this morning ,but the share price does not reflect the same,its an odd one this and christmas sales still to come,december is a hot month for retail 25% of year yearly sales.10 mins until the close,,,,,,COME ON.

Seen it before.

Price pumped up prior to finals.

Excellent results everyones happy so they take profits, price falls.

Long termers wonder what went wrong!

Answer = nothing.

sw , held this for about 3 months,it dont owe me nothing,but would like to be out by christmas on a good profit,that will leave me 3 months before the year end,to sniff another out.....before april {tax}.

Well, I can only offer a good luck wish.


So Dave, good luck with this.

Better times ahead definitely sw , roll on monday morning.

another leg up to 68 level over the next week imho... nice new uptrend forming on the charts now.

I cant belive there still at these level`s,low 60s unbelievable a bargain in the short term.

65 to buy now, could of had 60.5 first thing today.. bullish move today so far... get the feeling these will get tipped soon in a few places...

Yes agree on that daveedwards,its off and running now,wake up you mm.I think there is a very big buy on the cards soon,,what do you think !!

Oh well a bit more interest today & still a cheap stock to buy in the run up to christmas sales !

One sold and one still a hold. Glad to be out at a small loss,a 1.75 pence a share.

Whats that ,,the old gray pants is on the up come on my 57.

do you normally talk to yourself?

Only if theres nobody here.

ever looked at CYC?

No never its on aim,yes.