The struggling sportswear retailer JJB Sports today said that its pre-tax losses for the year ended 30 January had more than doubled and that its restructuring plan to get it back on track could take up to five years to implement.
Revenue during the year dropped slightly from £372.5 million to £362.9 million, however pre-tax losses soared from £68.6 million to £181.4 million.
As well as the rise in sales there were small glimmers of hope to be seen in the group's results, such as the fact that its six transformed stores had reported gross profit 30 per cent above the company's average.
During the year the group also appointed a new Chairman, Chief Executive and Chief Financial Officer to take charge of turning the company around.
Since the end of the period JJB said it had raised £96.5 million from two capital raisings and had closed 18 stores in a bid to cut down costs.
Mike McTighe, Chairman of JJB Sports, said, "The financial restructuring was completed on schedule by the end of April and since then the operational restructuring has progressed well. Underperforming stores have closed as part of our CVA, and headcount and operating costs have been significantly reduced.
"Whilst the sales environment remains challenging, Management's prudent controls mean that business performance in the first quarter has met the Board's expectations.
"The fundraising in April also provided us with the funds to refurbish our store portfolio, following the success of last year's trial. A further 150 stores are targeted for refresh or refit in the current year, with 50 targeted for 2012/13.
"The restructuring of JJB will not be easy or quick and will most likely take three to five years. The retail environment is challenging, will remain so for some time and we face intense competition. But the work undertaken over the past six months, together with the crucial support of all our stakeholders have given JJB a chance to survive and ultimately to prosper and I look forward to working with our management team to make this happen."