Blacks Leisure plans to expand its newly-acquired Just Add Water chain by opening at least two more stores this year.
Just Add Water, bought by Blacks for£4.3 million this week, is a specialist retailer of surf, snowboard and similar clothing and equipment. There are 10 shops, mostly on the south coast.
Blacks outdoor managing director Terry Maywood said: 'Just Add Water is a complementary brand to those that Blacks already holds. It's a different kind of retailer than Free Spirit, with real heritage among hardcore surfers.' He said the store also sells more hardware than Free Spirit. Blacks plans to retain Just Add Water's management team.
Broker Seymour Pierce forecast that the deal will enhance earnings this year. Analyst Rhys Williams said that Blacks had performed well since selling off its sports and leisure division to concentrate on outdoor and boardwear.
The UK boardwear market is experiencing strong growth at the moment, he said.
Just Add Water generated year-to-January turnover of£10.2 million and profit before tax of£800,000. Net assets at January 31 were worth£2.1 million.
With approximately 300 stores, Blacks' retail chains include the eponymous Blacks Outdoor and Millets. Blacks sells its surf and snowboard equipment in more than 30 Free Spirit stores and is the UK distributor for O'Neill boarding equipment.
According to Blacks, the UK boardwear market is estimated to be worth£400 million. Chief executive Roy Crosland said the deal 'presents Blacks with additional opportunities in this fast-developing market'.
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