last updated: Friday 25 September 2009, 08:49am

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JJB report £42.9m losses

Sportswear retailer JJB has reported half-year losses of £42.9 million.

The year-on-year increase in losses of 189 per cent for the six months to July 26 came as stock shortages hurt sales and the firm attempted to get back on its feet with restructuring and refinancing efforts.

It staved off administration thanks to a deal with landlords and said recent sales figures were showing signs of improvement.

JJB said that while it believes it can continue trading and will meet its financial obligations for the foreseeable future, 'relatively small variations' in the assumptions underlying its forecasts could lead to funding shortfalls or a breach of banking facilities.

A report said: 'The directors have concluded that these conditions represent a material uncertainty which may cast significant doubt upon the group's ability to continue as a going concern and therefore the group may be unable to continue to realise assets and discharge liabilities in the normal course of business.'

The firm said recent trading had 'steadily improved' since the end of the first half, with like-for-like sales down 37 per cent in the four weeks to August 23, moving to a 28 per cent decline in the following four weeks.

Earlier this month JJB said it had blown the whistle to the competition watchdog on alleged cartel activity in the sports retail market and the firm, along with Sports World owner Sports Direct International, is now involved in a Serious Fraud Office (SFO) investigation.

JJB said the SFO had confirmed its inquiries were focused on 'the activities of certain individuals' rather than the company.

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