Blacks Leisure suffers another half-year loss

The task facing Blacks Leisure boss Neil Gillis was underlined today when half-year results showed another loss and a slump in sales.

Gillis rescued Blacks from administration last year, agreeing a deal with creditors that saw it shut 88 stores.

But the company, which owns the Blacks Outdoor and Millets chains, is far from out of the woods.

In the 26 weeks to the end of August, sales fell 23% to £90.6 million, partly reflecting the reduced number of shops.

Blacks made a loss in the period of £7.1 million.

That's less than last time around, and below what City analysts were expecting, but a clear sign that the company is still facing serious difficulties.

Gillis described it as "slow and steady progress".

"The new stores are doing well but it's going to be a long, hard slog," he said.

Blacks is embroiled in takeover talks with private equity houses said to include Lions Capital.

The company did not elaborate on these talks today and Gillis, constrained by his own lawyers and City takeover rules, declined to comment when asked if a period away from the glare of the stockmarket might help Blacks return to profit.

The company suspended its interim dividend today.

The shares fell 0.75p to 39p, valuing Blacks at £33 million.