Jessops develops a £50m loss as picture looks grim

PHOTOGRAPHIC retailer Jessops yesterday reported full-year losses of almost £50 million after the digital camera market slowed down for the first time in "many years".

The deficit for the year to 30 September reflected heavy write-downs following a review of cash-flows.

Prior to one-off items, Jessops posted losses of £19.1m, against £9.3m in its previous financial year.

Like-for-like sales fell by 6.5 per cent in the year, although promotional activity helped Jessops to a 3.8 per cent rise in the past eight weeks.

Jessops said it was "highly likely" that sales would have continued to decline without the price cuts. Strong competition on the high street lifted sales volumes in the digital camera market by 7.9 per cent in the year, but in value terms trading was flat.

Jessops claimed a 15.9 per cent share of the digital camera market, down from 18.7 per cent a year earlier as a result of 81 store closures by the firm in 2007.

Executive chairman David Adams said: "These are the most difficult and uncertain retail trading conditions that we have seen in the photographic market for a long time."