John Lewis of Hungerford Plc (AIM: JLH), the specialist manufacturer and retailer of kitchens, bedrooms and freestanding furniture, provides an update to the market on current trading.
We remain confident that the business continues to trade positively with deposits taken tracking ahead of those taken in the same period in the prior year. However, we have experienced a slow-down in converting deposits taken into full orders. We believe this is primarily due to the prevailing market conditions impacting customer confidence, which remain affected by uncertainty due to Brexit and the retail climate generally. Sales for the second half are expected to be approximately 10% ahead of the prior year, although lower than management expectations by approximately £400,000.
Further to the statement contained within our Interim Report announced on 18 March 2019, the Board therefore no longer expects to recover much of the loss reported for the six months ended 31 December 2018. As such, the Company expects to report a loss for the year ended 30 June 2019.
The Board continue to monitor sales closely and will provide a further update as appropriate.