Just Group continues to fight its corner

Listed retailer Just Group continues to flout Premier Investments' hostile bid, with a recent trading update posting "solid" results following the release of an ambitious strategic plan.

On July 31 Just Group revised its FY08 results, claiming it expected unaudited pro-forma sales revenue to increase to approximately $387.5 million for the 26 weeks ending July 26 2008.

"This is a solid result that brings unaudited pro-forma full year FY2008 sales to approximately $812.2 million, above the mid-point of Just Group's pro-forma sales guidance of $808 million to $814 million."

In a separate move on July 23, Just Group released a strategic plan designed to achieve earnings per share (EPS) guidance of at least 40 cents by FY2010. It outlined Australasian and overseas growth, investment in retail infrastructure - including a New Zealand distribution centre to open in September and upgrades to the group's e-commerce platform - and scope for further acquisitions. Retail expansion was also planned, following 15 store expansions and 40 clothing store openings in the last 12 months.

New store openings comprised 12 Jay Jays sites, 11 Portmans sites, four Jacqui E sites, nine Dotti sites and four Peter Alexander sites (excluding the latter's recent entry into the US). The group also predicted strong US growth and potential expansion into other international markets for Peter Alexander.

Just Group's confidence was rebuffed by Premier however. A Premier statement on July 31 pointed out that Just had downgraded its EPS guidance from its original Target's Statement by 11 per cent to 15 per cent in early July.
"Despite lowering the bar massively, Just did not even manage to hit the top end of its revised downgraded guidance."
The results update showed Just Group's Special Board Committee had "no credibility," Premier chairman Solomon Lew claimed. "Just's poor results further highlight the attractiveness of Premier's offer," Premier's statement concluded.

By Belinda Smart