Beales refinancing as stores post £6m loss

Outgoing chief executive, Tony Brown Outgoing chief executive, Tony Brown

BEALES has refinanced its debt as it announces a loss of almost £6 million in its latest results.

For the year ended November 3, 2012, the Bournemouth-based department store’s preliminary results recorded a pre-tax loss of £5.8 million, down from a £500,000 profit year-on-year.

Like-for-like sales were down 5.6 per cent, but the operating loss was reduced from £3.8 million in 2011 to £2.9 million in 2012.

Sales over the Christmas period were down 1.6 per cent, but the results said Beale PLC still retained in excess of £9.5 million in assets.

As has been reported, Beales has refinanced its debt for the next three years with Burdale Financial Limited.

Group chairman Keith Edelman said there was still much to do to return the company to profitability, but said there was “the leadership, energy and resilience required” to do so.

As reported in the Daily Echo, chief executive Tony Brown has now left the firm, being replaced by finance director Michael Hitchcock. In what was his final set of results, Mr Brown said it was hard to predict consumers’ attitudes over the next year.

He added: “We will therefore focus our attention on what we can control.

“We will continue to monitor our customers’ reaction to any changes and adjust our trading strategy accordingly, but in my view the uncertain economic environment will continue to make our customers cautious throughout the year.

“Our increased focus on commercial direct purchasing has assisted us to date, benefiting our input margins.

“Our balance sheet remains strong. As a management team, we are continuously and rigorously focused on improving our business, not just for today, but also for when the economic upturn comes.”

Bournemouth-based Beales group operates 32 shops.

It can trace its roots back to 1881, when mayor John Elmes Beale opened the first store in the town.

Comments(19)

BmthNewshound says...
9:57am Mon 11 Feb 13

A very well timed exit by Tony Brown.
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It made be smile when Brown (rightfully) blasted the Christmas market for selling tat but then replicated their offering in the basement of his own store.
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There are two sectors of retail that are doing well - the discount end with Primark, 99p store etc and the top end and speciality stores like Hotel Chocolat and a number of the designer led fashion chains. The mid-market stores like M&S and Beales are the ones who are suffering the most. They have sacrificed quality in a desparate bid to retain market share and this has backfired big time.
.
Beales needs to decide whether its designer or discount, trying to mix the two is a receipe for disaster.

Ebb Tide says...
10:07am Mon 11 Feb 13

A refinancing package to give just one more chance to be worthy of the legacy from John Elmes ?

Go for it ! Delivery of reliable quality will be paid for, if the Chancellor lets us all (including our cousins in the North) keep some cash.

Will be looking for reliable quality from the current management team.

HRH of Boscombe says...
11:18am Mon 11 Feb 13

'Our balance sheet remains strong', yeah right!
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£9m existing assets won't last long with 3£3m a year losses.
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Burdale Financial Limited is helpful refinancing just to swallow up what's left of your assets.

uvox44 says...
11:18am Mon 11 Feb 13

I went to Bournemouth town centre last Tuesday , admittedly a cold day, and it was dead- I'm sure Castlepoint wasn't.

speedy231278 says...
12:07pm Mon 11 Feb 13

Beales is just silly expensive and out of touch. Just like HMV, Jessops, etc. I know someone who works there and it seems to be run by people who don't have the first clue, and stuff is just done on a whim.

At this rate, this time next year they'll probably all be looking for jobs...

nigggel says...
12:16pm Mon 11 Feb 13

As a local shop owner a few yards from Beales I could give a list as long as my arm of things they do wrong.
But the most important thing they must do is get away from the constant discount .. 25% off culture they have developed. They should be the flagsh of Bournemouths shopping and not the third department store which is where they are now

bobsworthforever says...
12:16pm Mon 11 Feb 13

Concentrate on Customer Service too much chatter between staff put some leadership on the store floors. Also which stores are losing the money Up North ill bet.

demonmonster says...
12:18pm Mon 11 Feb 13

The share price has also taken a bit of a blow since the news hit the markets !

I think speedy is right, things were not done right under the old boss, the reason being, they were scared of him !!

Beales now needs to rethink its core target customers, along with its stock ranges.

They need to invest in their web services and move away from how its done now, which is a bit of a botch !
Having known several people that have used it, I can vouch for its lack lusture operation.

Its all about the three Ss, and if one of those is wrong, you have a problem.
Staff
Stock
Space

Roband65 says...
12:51pm Mon 11 Feb 13

It wont get any better for them this year either !

MrPitiful says...
6:31pm Mon 11 Feb 13

Never even been in there. Looks like an overpriced tat-shack full of dithering old biddies.

gameon says...
7:52pm Mon 11 Feb 13

bobsworthforever wrote:
Concentrate on Customer Service too much chatter between staff put some leadership on the store floors. Also which stores are losing the money Up North ill bet.
Poole and Bmth must lose money anything to do with that 70s out of touch Poser Tony Brown is bound to lose Grace Brothers in are you being served is more fashionable than that ailing elephant

Ebb Tide says...
8:26pm Mon 11 Feb 13

Ebb Tide wrote:
A refinancing package to give just one more chance to be worthy of the legacy from John Elmes ?

Go for it ! Delivery of reliable quality will be paid for, if the Chancellor lets us all (including our cousins in the North) keep some cash.

Will be looking for reliable quality from the current management team.
Looks like its 'game on' in 2013 if even the Bournemouth locals perceive problems with that highly respected brand name of 'Beales'.

I know Robbs of Hexham should have a strong following and hopefully the current management team knows how to re-affirm customer loyalty with the other 31 outlets.

Beales is not a 'down market' organisation and has delivered good quality in the past - also the internet can't provide the ambience and the opportunity to inspect before you buy.

Let us support Beales if they try not to waste this opportunity and do exclude the real risk of 'asset stripping' by the financial wizards.

willybach says...
12:55am Tue 12 Feb 13

“Our increased focus on commercial direct purchasing has assisted us to date, benefiting our input margins". Could somebody translate this for me in plain English please?

speedy231278 says...
1:27pm Tue 12 Feb 13

willybach wrote:
“Our increased focus on commercial direct purchasing has assisted us to date, benefiting our input margins". Could somebody translate this for me in plain English please?
"We're forcing our suppliers to lower their prices so we can make a bigger profit to fritter away on pointless reorganising behind the scenes yet again, while still flogging overly expensive stuff in a pretend sale. It might mean the suppliers have to tighten their purses, but we don't care."

Mcfly77 says...
2:40pm Tue 12 Feb 13

In my 30's and considering myself a fella that likes a nice bit of clobber, I occasionly find myself in the menswear conssession.
My observations are that the staff are incredibly snotty and fail with the basic level of customer service. I must say, it's not just them, it's most shops you walk into.Burtons in Castlepoint the other day, the assistant would rather stand and stare into space than offer a smile or asistance.(My tip for the next big store to bite the dust).Saying hello, smiling and can I help may sell things you never know! Reallllllllly isn't that hard. Also the brands in the store need to be updated with what people want.

High Treason says...
4:40pm Tue 12 Feb 13

You only have to look at John Lewis and Beales to see what is obviously wrong.
John Lewis has well set out stores, easy parking, extremely pleasant skilled staff, no tac and a fantastic customer service. I doubt if Beales could match any of the above.

teenie says...
9:42pm Tue 12 Feb 13

Mcfly77 wrote:
In my 30's and considering myself a fella that likes a nice bit of clobber, I occasionly find myself in the menswear conssession. My observations are that the staff are incredibly snotty and fail with the basic level of customer service. I must say, it's not just them, it's most shops you walk into.Burtons in Castlepoint the other day, the assistant would rather stand and stare into space than offer a smile or asistance.(My tip for the next big store to bite the dust).Saying hello, smiling and can I help may sell things you never know! Reallllllllly isn't that hard. Also the brands in the store need to be updated with what people want.
There's one thing I hate is being 'pounced' on the moment I walk into a store or on to a dept.However I do hate it when I'm in a supermarket at the checkout and the cashier 'becomes my new best friend' asking what plans I have for the rest of the day(it's so false!)Guys usually are known for making a quick decision when buying clothes where women have to 'bring' the whole family in to buy an item of clothing!Beales staff do phone customers when an item of clothing that they know they are interested in/or when a new collection comes in(something any other store doesn't do)I do agree that some brands do need to be updated.my pet hate in other stores is when staff members continue to chat whilst serving at the till making me feel like an outsider.

teenie says...
9:54pm Tue 12 Feb 13

High Treason wrote:
You only have to look at John Lewis and Beales to see what is obviously wrong. John Lewis has well set out stores, easy parking, extremely pleasant skilled staff, no tac and a fantastic customer service. I doubt if Beales could match any of the above.
When I was purchasing an item from a wedding list in John Lewis I was past from pillar to post and was told to go back up to the dept having been told by the dept to go downstairs to pay and then at the till point being asked by the cashier (in a loud voice in front of a large queue of people) what my card limit was as the purchase transaction was not going through propertly.I did write in to complain but received a 'standard' letter back.Bournemouth council did not do the 'high street' any favour by putting in street parking meters especially when there is free parking at castlepoint!

Gastines3 says...
8:12am Wed 13 Feb 13

Totally out of date.How many locals know they have a carpet/furniture department or would even bother to get a quote? Only way to make a building like this pay is to make the top 2 floors into apartments.Middle offices with retail only on ground plus a decent cafe,restaurant on 1st floor.Resident parking on lower ground.A decent modern thinking architect would be able to deal with the idea. The whole store is relying on concessions to pay it's way and their idea of retail space is to cram in as much as possible.No style to attract todays money.Debenhams and Dingles will be going the same way with the out-dated Bournemouth's view of a town-centre.Vision? Not a chance.

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