JJB on firmer footing as it gears up for World Cup

The sportswear retailer said underlying pre-tax losses more than trebled to 68.5m in the 12 months to January 31 – a year that saw JJB narrowly stave off administration by agreeing a rescue deal with its landlords.

JJB has since regained its poise and said comparable sales in the 16 weeks of the new financial year were up 7.5 per cent, with revenues in May growing by 19 per cent.

The World Cup tournament also offers a "significant opportunity" to boost business with replica kit sales, according to the group.

But it outlined a revival strategy that will widen its focus to all major sporting events and see its store network overhauled as it seeks to reclaim leadership of the 5bn sportswear market.

JJB said it was to begin testing new store formats this summer ahead of a wider refurbishment roll out due to start towards the end of the year.

The Wigan-headquartered group is also investing in its website, which it said will play a "critical role" in its future.

Keith Jones, chief executive of JJB, said: "We cannot pretend that the company's recovery will be either quick or easy. There is an enormous amount of work to be done to introduce modern retail standards and disciplines into the business."

However, he added the early signs were encouraging, with a "steady improvement" in like-for-like sales.

The recent trading performance would have been even more impressive, had it not been for the impact of freezing weather at the start of the year, which saw sales drop 2 per cent in February.

Profit margins have improved from 36.8 per cent to 43.6 per cent in the past 16 weeks and it said stock levels – hit amid its crisis last year after suppliers became reluctant to deal with the firm – were nearly double at 105m.

The group yesterday also confirmed the appointment of former senior independent director John Clare as chairman.

He has been acting in the role since chairman Sir David Jones stood down on health grounds.

Sir David, based in Ilkley, oversaw the company's rescue.

As well as leading the Company Voluntary Arrangement with landlords and creditors, he agreed the sale of JJB's fitness clubs and a City fundraising.

Mr Clare said the group could now "look to the future with cautious optimism".