Beale PLC, the specialist department store operator, announces Interim Results for the 26 weeks ended 3 May 2008.


• Like for like gross sales* declined by 6.4%, because of the continuing depressed retail environment. Gross sales for the period declined by 14.5%, reflecting the closure of the Ealing store at the end of October 2007.

• Revenue for the period was £27 million (2007: £32.4 million including Ealing).

• Substantial cost reductions achieved during the period with like for like costs £1.25 million lower than the comparative period. Total administration expenses for the period of £13.9 million reduced from £16.6 million (including Ealing).

• Despite the fall in sales, Group profit before tax increased slightly to £881,000 (2007: £875,000).

• Tight control of working capital has resulted in net debt of £5.3 million, unchanged from the comparative period end.

• Tony Brown, previously retail director of British Home Stores, joined the company as Chief Executive on 1 June 2008 bringing invaluable experience and energy to Beales.


Mike Killingley, Chairman, commented: “The deterioration of the UK economy since this time last year has dramatically affected consumer confidence and it seems likely that the economy will remain depressed for some time. We have limited the impact of these difficulties by reducing our cost base substantially and we are continuing to examine costs critically to enable further savings to be made. A return to profitability, however, depends on reversing the decline in sales. Our senior management team, under Tony Brown, is developing its strategy to deliver such improvements, and we will report on this strategy and its implementation more fully at the time of the full year results. We do not anticipate any significant improvement in our sales performance during the remainder of the current financial year.”


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