FASHION retailer John David Group, the name behind the clothing chain JD Sports, hailed another year of progress as profits rose despite the ultra-competitve market place.

Unlike larger north west chain JJB Sports, Bury-based JD has positioned itself away from the discount end of the market, with an emphasis on sports-fashion wear.

Results for the 52 weeks to January 28 showed an increase in operating profits from é12.9m to é16.6m, on turnover of é490.2m, up from é471.6m.

After operating costs of é13m - relating to a programme of ditching under-performing stores and redundancy costs - bottom-line profits were flat at é3.65m.

" Efficient"

Chairman Peter Cowgill said: "We are pleased with progress, it's tough out there. We have raised profits, cut debts and become more efficient."

Mr Cowgill, who has been linked with a private-equity bid for JJB Sports, said: "It's absolute speculation. I am firmly entrenched at JD. I have got a job to do and I am focused on doing it."

Like-for-like sales at the company's 290 sports outlets were up 2.1 per cent since the financial year ended on January 28, marking an acceleration on the 0.3 per cent rise over the previous 12 months.

Sportswear, including tops and branded shirts, now represents 92 per cent of sales after the company rescued the Allsports chain from administration in October. The remainder comprises sales at its outlets devoted to fashion.

Brand dropped

A review of the Allsports business ended with the brand name being dropped, existing management being made redundant and 80 stores being retained and converted to the JD Sports fascia. Allsports had 270 sites.

Mr Cowgill said: "We had originally intended to keep the Allsports name, but it soon became clear there was not much mileage left in it . It had been a retailer in clearance mode for a long time."

JD said stock levels at the end of the financial year were only é1.6m higher and this is likely to come down as it wraps up a clearance sale of old Allsports products.

The increase in operating profits was applauded by analysts who noted the contrast with the 45 per cent fall in profits reported by JJB last month.

Fashion

However, JD said its results would have been better if losses of é2.5m from its 46 fashion outlets did not have to be absorbed.

Like-for-like sales at its fashion outlets fell back by 8.5 per cent during the year and are currently running 5.2 per cent lower.

JD has isolated the fashion division, which includes the stores acquired from RD Scott in December 2004, with its own management team and separate stock.

* JJB Sports has swooped for a company behind golf-related satellite TV. It is paying up to é3.3m for Golf TV Group, UK operator of The Golf Channel and The Golf TV Pro-Shop Channel.

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