JJB in takeover speculation as sales rise
10 January 2007 09:35
It has been reported that private equity firm Permira is to offer over £500 million for JJB sports. According to the speculation, a replacement is being sought for the company’s chairman and founder Dave Whelan who would leave should the acquisition be completed. This report is the latest in a run of speculation as to the future of JJB, with other private equity groups previously being linked to the sports retailer. Last July it was reported that Sports World owner Mike Ashley had bought a 10% stake in the company through securities firm Man Financial although this was never confirmed.
However, no reference to the takeover was made in a trading statement issued today by JJB. The company indicated that performance for the 22 weeks to December 31st and the five week period covering Christmas and the New Year were both within expectations. Total revenue for the 22 weeks to December 31st 2006 was 6.0% higher than in the comparative period last year and included an increase in like-for-like revenue of 6.3%. Total revenue for the five weeks to December 31st 2006 was 4.5% higher than the equivalent period, including a like-for-like increase of 5.4%.
Roger Lane-Smith, JJB Sports’ non-executive chairman, commented: "I am pleased with JJB's trading performance throughout the current accounting period, including around Christmas and New Year. Looking forward to 2007, I believe that the progress we have made following the introduction of new distribution arrangements with Nike and adidas gives us the opportunity to further emphasise our 'Serious about Sport' stance and that the continuing roll-out of combined health clubs/superstores, will result in an increased contribution to profits from our leisure division."
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