Updates

JJB Sports - Excellent price for TJ Hughes

January 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In a highly positive development, JJB has sold its department store chain, TJ Hughes, for Â£55.8m (Â£49m cash and repayment of a Â£6.8m loan), a price that beat analysts expectations of around Â£50m. TJ Hughes was never liked by investors, who perceived the business as an unwanted distraction to the core sports retailing business, yet JJB still made a handsome profit of nearly Â£14m â€“ not bad for 20 months work! At a stroke this deal makes JJB cash rich, with Numis forecasting net cash to reach Â£35m next January, rising to Â£70m a year later and the broker expects JJB to hand back around Â£50m (21p a share) in due course. Strong hold. ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Landround - Gain to date: 228%

Wembley - Receives several bid approaches

JJB Sports (June 2004)

JJB Sports - Largest sports retailer sees recovery in margins (December 2003)

JJB Sports - Founder confirms buyout interest (May 2003)

JJB Sports (November 2002)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X