EB pledges to build on improved results

Retail Interim figures cause share price increase for competitor.

Electronics Boutique has turned in strong results accompanied by. claims that the best is yet to come and that this year's results could outstrip last year's.

Pre-tax profit climbed to #1.5 million from #600,000 and turnover rose by 25 per cent to #53.5 million, with like-for-like sales up 10 per cent for the first six months to 31 July.

Peter Lewis, chairman of Electronics Boutique, stated: 'These results are outstanding compared with a year ago. Then, as we reported at the time, we benefited from "unusually favourable market and economic conditions" which have all but reversed.'

Lewis added he was confident about the future. 'The second half has begun well with sales in the eight weeks to 27 September up 41 per cent with a like-for-like increase of 20 per cent,' he said. Full year profit is already predicted to be #15 million.

However the industry's apparent strength has a flip side. High street competitor Game recently saw its share price plummet to a low of 115p, despite its first year on the Stock Exchange showing a good performance with profits of #7.2 million.

A source close to Game this week said: 'The stock market had a bit of a downer on the (IT) market and especially the retail area. The shares jumped 15p, though, on the news of the EB results.'

Jeremy Davies, analyst at Context, said: 'It's specialising that counts.

Having dedicated well-trained staff creates an ambience in store that lets you be the best in a niche. Electonics Boutique can also offer good prices and a huge range. These are the things that give it the upper hand over the likes of Virgin and pulls people in to the store.'

The strong performance will boost the spread of the company's stores in the UK and Europe, now standing at 166 in total.

Electronics Boutique has managed to create loyalty among consumers and attracted 600,000 gamers to its loyalty card.