This year we put into action our three-year transformation plan. We have set about revitalising our stores business, driving growth from new channels and generating significant cost savings.
We are managing change in the entertainment markets, which is evident in the HMV product mix, and maximising our strong market position in existing categories. An inspiring store format has been created for the next generation of entertainment retailing.
Waterstone’s continues to lead with books on the high street, where our ranges and product passion are unrivalled. We have given a renewed focus to the genres that are growing fastest through our shops, and we have enhanced our related product offer.
Both our brands have established credibility online, and we have made the first steps to rewarding customers’ loyalty, regardless of how or where they choose to shop with us. As digital delivery becomes a reality across a wider range of our product categories, we are now poised to grow faster.
We are acting more like a Group. As our business and markets are changing, so too are our ways of doing business, and we are driving out unnecessary cost.
We set ourselves the task of stabilising the financial performance of the Group in Year One of our Plan, but we exceeded expectations by achieving excellent profit growth.
Financial summary 2008
Total sales from continuing operations of £1,874.9m (up 11.3% on 2007), including like for like growth of 7.3%
Profit before tax and exceptional items from continuing operations up 25.2% to £56.6m (2007: £45.2m)
Exceptional profit after tax on disposal of HMV Japan of £51.8m
Adjusted earnings per share from continuing operations of 10.1p (2007: 7.4p). Total basic earnings per share of 22.1p (2007: 4.0p)
Net debt virtually eliminated at £0.2m (2007: £130.6m)
Final dividend of 5.6p, making a total dividend of 7.4p (2007: 7.4p)