Performance
Like-for-like sales in the first 42 weeks of the financial year have increased by 1.6% with total sales up 2.1%. Like-for-like sales rose by 1.2% in the most recent nine weeks since we last reported. The month of the World Cup had a negative impact on food sales reducing overall like-for-like sales by approximately 2.0%, indicating an estimated underlying growth rate of 3.2% in the nine week period.
| Like-for-like sales | H1 2010 33 weeks to 15 May 2010 | Current Trading 9 weeks to 17 July 2010 | Total 42 weeks to 17 July 2010 |
|---|---|---|---|
Like-for-like sales Total | H1 2010 1.8%33 weeks to 15 May 2010 | Current Trading 1.2%9 weeks to 17 July 2010 | Total 1.6%42 weeks to 17 July 2010 |
Like-for-like sales | H1 2010 33 weeks to 15 May 2010 | Current Trading 9 weeks to 17 July 2010 | Total 42 weeks to 17 July 2010 |
Like-for-like sales Food | H1 2010 4.3%33 weeks to 15 May 2010 | Current Trading 2.7%9 weeks to 17 July 2010 | Total 3.9%42 weeks to 17 July 2010 |
Like-for-like sales Drink | H1 2010 0.3%33 weeks to 15 May 2010 | Current Trading 0.5%9 weeks to 17 July 2010 | Total 0.4%42 weeks to 17 July 2010 |
The Retail operating margin continues to improve with third quarter margins being slightly ahead of the same period last year.
Financial Position
The Company’s financial position is robust. Net debt continues to reduce, with drawings on the unsecured medium term facility at £291m excluding the £88m of proceeds from the recent disposal of 52 lodges.
Outlook
There continues to be uncertainty in the outlook for discretionary expenditure and associated pressure on the UK’s eating and drinking out market. However, our core brands’ effective marketing and value positioning have generated increases in sales and profitability this year and form a strong platform for future growth. We are making good progress towards achieving the objectives laid out in our strategic plans and are confident in the future prospects of the business.
There will be a conference call for analysts and investors at 9.00am; please dial +44 (0) 1452 555 566 and quote conf ID 89539517. The replay will be available until 04/08/10 on +44 (0) 1452 55 00 00, replay access number 89539517#.