Beales No Longer In Talks To Sell

Department store group Beales has seen concerns over its pension liabilities deter potential bidders and confirmed that it has ended talks with a potential bidder for the business. Beales said in February that it had received a preliminary approach. Beales said that those talks did not progress to detailed due diligence or an offer. However, in the wake of the announcement of a possible offer, other expressions of interest were made by other parties. These also did not progress "primarily as a result of the group's defined benefit pension liabilities".

In the half year to April 30, Beales saw gross sales fall by 2.4 per cent to £57.9m "reflecting the intensely competitive retail environment". Turnover, which excludes non-commission element of sales made by in-store concessions, fell 5.5 per cent to £34.2m. Pre-tax profits down to £1.08m from £1.27m.Mike Killingley, chairman, said: "In the seven weeks to June 18 gross sales, on a like for like basis, were level with those of last year. The trading environment remains difficult and we do not foresee any significant improvement during 2005.

"The board's attention remains focused on running the business well and delivering value for shareholders. In the short term any improvement in the group's trading performance will come from the continued implementation of our business plan changes, both in product mix and merchandise presentation."