Digital cameras aid Jessops sales

Jessops opened 16 stores in the last year

Growing sales of digital cameras have boosted profits at Jessops in its first trading results as a listed company.

The specialist retailer, which floated on the stock market last month, said 75% of cameras sold last year were digital models.

The firm saw its annual profits before exceptional items and interest payments leap up 14% to £19.5m ($37.7m).

Jessops, which has 268 stores in the UK, added that current sales were encouraging.

Digital demand

The firm enjoyed a 11% rise in sales to £319m in the year to 30 September.

Like for like sales -excluding newly opened stores -rose 6.1%.

The firm paid £11.4m in interest charges on loans taken out to fund a 2002 management buyout which preceded the flotation.

Increased awareness of the Jessops brand..puts us at the forefront of this digital camera revolution Derek Hine, Jessops

Deducting interest payments and exceptional costs, Jessops made a profit of £1.3m, compared to a £2.9m loss in 2003.

Cash sales of digital cameras rose 30% while sales of analogue models slumped 45%.

"Our results show the continuing impact of growing consumer demand for digital photography products," said chief executive Derek Hine.

"Increased awareness of the Jessops brand and of our offer of value for money, impartial advice and the widest range of photographic products, puts us at the forefront of this digital camera revolution."

Mr Hine said that like for like sales were up 6% in October and November, in line with expectations.

Jessops recently raised £120m by listing its shares.

It used part of the proceeds to reduce its debt.

The firm intends to make its first dividend payment to shareholders next year, covering the six month trading period up to March 2005.

The firm's shares were up 1.5p to 150p at midday.