Improved buying and stock control make impact
Department store chain Beales has unveiled half-year profits up 86.6 per cent, but warned investors not expect a similar performance in the second half.

Pre-tax profit increased to£2.01 million for the 26 weeks to April 29, compared with£1.08 million last year. Gross sales rose by 2.8 per cent to£59.5 million.

In a statement released today, group chairman Mike Killingley cautioned shareholders that the costs of opening a store in Horsham and refurbishing the ground floor of the Bournemouth branch would have a significant impact on full-year profits.

Gross margins have improved during the period thanks to improved buying and stock control.

Killingley said: 'Looking beyond the second half, we remain cautiously optimistic that with the benefits we are deriving form our new buying team, coupled with the new store at Horsham and refurbished ground floor in Bournemouth, we will provide further improvements in our trading performance.'

The Ealing branch in London was the only store trading down on last year, with sales down about 4 per cent.

The group said it would continue to look for new space in towns that 'reflect our skills and product performance'.

Like-for-like sales were down 1.1 per cent for the seven weeks to June 17. The department store chain attributed the downturn in trading to the World Cup and wet weather in May.

Beales operates 11 department stores across the UK.

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