Sales

Sales for the first half of the year reached €285.0M (-3.1%). Not including the UK, where conditions were particularly difficult, they were up by 1.9% (2.4% at constant rates), a figure that covers contrasting situations in the different countries.

France and Belgium grew respectively by 4.2% and 4.8%, boosted by good business in the shops, and between them made up for 75.6% of group sales.

Switzerland, after a difficult start to the season, ended the period down 13.7% (10.0% at constant rates), and Japan, where the group is in the process of withdrawing, was down by 32.6% (26.7% at constant rates).

The UK, for its part, fell by 20.1% (18.1% at constant rates). This poor performance was due to some logistics problems but was mainly the result of a succession of postal strikes, which are now finished.

Results

Operating current income stands at €12.1M for the six months (+30.2%), equivalent to 4.2% of turnover.

The main area of satisfaction comes from France whose contribution has gone up from €7.2M to €17.4M. This performance comes after maintaining a good level of business and from reductions in the main cost items as a result of initiatives undertaken recently to streamline and optimise operations (refocus new customer development, more targeted promotions, tighter running costs, …).

On the other hand, the UK's contribution went from €2.3M to €-5.1M, a fall essentially due to the problems caused by the postal strikes and the logistics issues (problems with order processing and shipping).

The other countries had contrasting fortunes with their results. Belgium's contribution went from €3.4M to €3.6M, Germany from €-2.1M to €-1.2M, The Netherlands from €-0.8M to €-0.7M, Japan from €-0.7M to €-1.3M and Switzerland from €0.0M to €-0.6M.

Net income for the period is €5.0M (-27.3%). This decline can be explained by increased taxes, which were significantly higher (x2.4) following the low tax rate last year on the same period, and the absence of any fiscal compensation between the profits in France and the losses in Germany and the UK.

Financial situation

Net cash at the end of December stands at €22.4M and net equity at €140.9M.

Outlook

The objectives originally announced will not be fully met due the difficulties encountered in the UK over the last months. The results recorded in France and Belgium during the first six months and the expected improvement in the UK over the second half of the year, however, mean we can expect a significant improvement in profitability for the year.

February 29th 2008

Profile
Damartex is one of Europe's leading distributors of clothing and accessories for seniors. The company sells through catalogues (home shopping) and stores with its main markets in France, Great Britain and Belgium.

Agenda
Publication of third quarter sales: April 25th 2008

Contacts
Damartex: Jacques Taccoen - Tel: +33/0 320 114 530
Shan: François-Xavier Dupont - Tel: +33/0 144 505 874

http://www.damartex.com

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