Courts sees further sales slip
UK business to generate second half loss
Furniture retailer Courts has further downgraded its earning forecasts and is in talks with its banks after continuing to struggle for sales in the UK.
The company, which has been through a major restructuring this year, said in September that this would result in a “very substantial” loss at the operating level in the first half, which would outweigh operating profits from its overseas operations.
The company has now said that, while August bank holiday trading was in line with expectations, since then the UK business has generated orders below expectations, mainly due to lower than expected customer footfall.
Courts has seen like-for-like orders across the eight weeks since the August bank holiday down 20 per cent down compared to the same period last year. The company said “as a result of these factors, it is now expected the UK business will be loss-making in the second half of the year.”
The Caribbean and Asia/Pacific bcontinue to trade in line with expectations, said Courts.
The company said: “Revised estimates for the losses generated by the UK business lead the board to believe that the group’s losses before tax for the year ended March 31 2005 will be significantly greater than current market expectations.”
Courts said it has held preliminary discussions with its principal lenders to discuss its situation. “These discussions have been constructive and are continuing.”
The company insisted its “strengthened management team is firmly focused on delivering improvements in trading as the peak Christmas trading period approaches.”
