Samedaybooks' figures make better reading as losses narrow
- Added:
- Jan 31, 2002
The company said its strategy of using the internet to help drive sales is “now showing its value”. It claims to be the only high street bookseller pursuing a ‘clicks and mortar' approach and has “cautiously” rolled out internet facilities in four of its stores.
As a consequence, customer orders within these stores have more than doubled, and the company is looking to convert further stores.
For the year ended 30 September 2001, the company recorded a marginally improved turnover of 7.02m, leading to a loss of 521,000, compared with 797,000 for fiscal 2000. Around two-thirds of the loss can be attributed to depreciation and amortisation relating to historical shop fitting costs. Gross margin for the period improved by 1% to 38.6%.
The company expects EBITDA in the current year to be “comfortable positive” as sales improve, costs are reduced and its internet activities contribute to its trading performance.
Samedaybooks non-executive chairman David Mahony said: “During the In the first quarter of this year (the three months to 31 December 2001) progress has been good with like for like sales rising 6.5% and total sales up 16%.
“During this period the internet business, now successfully installed in four stores, has passed monthly break even. This pattern of sales has continued into January.”
The company has net current assets of 838,000. Net asset value was stated at 2.19m as at the end of September 2001. This compares with a current market capitalisation of just 1.1m as shares are trading at a 50% discount to NAV, unchanged at 0.65p.