TJ Hughes puts paid to plunging profits with a positive Christmas

The Liverpool-based retailer says it has stemmed tumbling profits and re-instigated expansion plans after parachuting in new management.

Chief executive Sue Tennant, who was drafted in after the departure of Robin Dickie in July, said the business was not distressed and profits in the current year are ahead.

She added that like-for-likes at the 49-store retailer were up 4 per cent in the nine weeks to December 29.

The showing marks an improvement on the disastrous performance in the year to January 27, 2007, when TJ Hughes’ operating profit before exceptionals fell 93.8 per cent to just£730,000, down from£11.8 million the previous year.

Tennant said the retailer’s backer, PPM Capital – which backed an MBO of the group with Bank of Scotland in 2003 – was “happy” with its performance and that a “solid platform” for growth was in place, including plans to open two stores in 2008.

She instigated a “back to basics” strategy after previous management drove fashion over home.

She said: “Three years ago, TJ Hughes wasn’t in a crowded value market. The mid-market was always going to be a threat. The supermarkets educated customers about the benefits of one-stop shops and department stores are in vogue again.”