For the full year to 30 September, 2008, Jessops reported like-for-like sales down 6.5 per cent and loss before non-recurring items and tax was£19.1m, against£9.3m the previous year.
Gross profit margin increased slightly to 32 per cent, up from 30.8 per cent. Like-for-like sales for the eight weeks ending 25 January were up 3.8 per cent.
“In a difficult and uncertain retail environment we focused on improving margins and on strengthening our relationships with key suppliers,” said executive chairman David Adams. “We significantly reduced stock levels during the period with further reductions since the year end.”
Jessops said the increase in like-for-like sales in the eight weeks to January 25 was achieved at the expense of margin and its gross margin.
In a statement, the retailer said: “It is highly likely that had we not decided to increase our promotional stance during this period like-for-like sales would have continued to decline.”
The retailer said the total digital camera market for the year was up 7.9 per cent in volume but flat year on year in value terms. It said this represents a sharp reversal during the six months to 30 September, as in the six months ending 31 March the market was up 10 per cent in volume and 5.8 per cent in value.
Jessops signed an extension to its banking facility, which extends to 31 December, 2011. Under the terms, it has a committed facility of£52m and a revolving overdraft facility to provide working capital during the course of the year.
During the year Jessops opened a new store in Westfield London, which is now the blueprint for future store openings and major refurbishments.
Adams said: “It is not clear when economic conditions will improve but the combination of our strong market position, solid relationships with suppliers and continuing cost reductions should ensure that Jessops is in the best position operationally to deal with the very difficult economic conditions in which we are operating.”
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