Merchant Retail sniffs stores deal
PERFUME shops group Merchant Retail is in 'serious talks' over the sale of its two remaining department stores, and chief executive Philip Newton is confident they can be sold on a going-concern basis.
Selling the stores will enable the group to focus on its 111-strong Perfume Shop chain, Britain's largest speciality fragrance retailer. Perfume Shop performed well over the first half, with a 7% rise in underlying sales despite teething problems with a new electronic point-of-sale system.
Those problems have yet to be fully ironed out and Newton is predicting a f iercely competitive Christmas as more-establishedrivals such as Boots get their acts together. The business earns the bulk of its profits in the next six weeks but he is confident it will win its share of festive spending.
Group trading profits rose 15% to £3.62m over the 26 weeks to 25 September on sales 12% higher at £77.65m. The dividend is raised 33% to 1p.
Pre-tax profits surged by more than 80% to £5.74m, boosted by property-disposal proceeds. The group has already announced the sale of one of its department stores to Tesco for £17m.
