Sports specialist JJB, which is at the start of a turnaround programme, told investors that “good progress” is being made.
JJB has shut 38 stores as part of a CVA and cut costs. The retailer warned that trading conditions remain harsh, but reassured that overall financial performance was in line with internal expectations.
Seymour Pierce, the brokerage firm, with a share price target of 15p, acknowledged that JJB’s directors had done well to save it from administration.
However, Seymour Pierce maintained: “Management now needs to focus on improving poor retail disciplines and coming up with a credible strategy to take advantage of major sporting events in 2012.”
House broker Panmure Gordon rates JJB a buy with a 40p price target. Panmure reasoned: “Change will take time to come through in the numbers.”