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Jjb Sports - Half Year Losses

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Losses in the half-year to the end of July widened from £23.9m to £66.5m, after the sportswear retailer was forced to slash prices to shift out-of-date stock, which it described as "grotty". The company insists that it had plenty of cash, but analysts said they were not convinced.


The company said it had just £17m of cash on its balance sheet at the half year, having raised £96.5m in the past year as part of its turnaround plan. But finance director Dave Williams said: "We have looked out for 12 months and examined various working capital scenarios. And even if economic conditions remain difficult, we have plety of working capital."

Philip Dorgan, analyst at Panmure Gordon, JJB's house broker, said investors' focus would be on whether management can continue to fund the business.

He said there was a risk an expected sales recovery would not materialise and raised his forecast underlying pretax loss for the year to end of January to £50m from £40m.

Long term share price chart http://uk.finance.yahoo.com/echarts?s=JJB.L#symbol=jjb.l;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=;

That cashflow issue is worrying as they seem to have burned through that raised in the rights issue. Also the house broker comments aren't great.

Then there's always asking Bill gates for more cash....

Edited by Ash4781

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They could try releasing a loyalty card, or issue feedback customer surveys or even launch a JJB shopping channel to "drive sales" well into the "2012 Olympic Games". Or they can just cut their losses, close and just accept the booms over, the property bubble killed us and people are broke.

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Who needs another expensive football shirt? :(

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