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JJB’s leisure division sees 37 per cent increase in operating profit

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JJB Sports’ leisure division has seen a 37 per cent increase in operating profit for the 26 weeks to 30 July, rising to £10.8m compared with £7.6m for the same period last year.

The sports retail giant’s fitness chain opened five combined health club/superstores in the first half of this year, bringing its total number of clubs to 37.

As a result, membership rose from 136,200 in January to 156,200. In July last year, the chain had 116,300 members in its 28 clubs.

The company plans to open 12 more clubs in the remainder of this year and at least as many as that in 2007.

Despite a replica kit sales boost from the World Cup in its retail division, the company as a whole suffered from price deflation and tighter margins.

As next year is a non-competition year for international football, this is unlikely to improve. However, Tom Knight, chief executive, said much of this would likely be offset by the “continuing increasing profitability” of the leisure division. Details: www.jjbsports.com

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JJB Sports’ leisure division has seen a 37 per cent increase in operating profit for the 26 weeks to 30 July, rising to £10.8m compared with £7.6m for the same period last year.
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