Sales

Sales for the year just ended came to €539.1M, a fall of 3.3%.

France was down by 4.4% to €316.4M. International sales were down by 1.6% to €222.7M (up in Belgium, flat in the UK and down in Switzerland and Japan).

This slowdown, particularly in France, the company's main market, is primarily due to poor consumer sales in the textile sector as a result of abnormal weather conditions (temperatures were unusually high throughout the Autumn-Winter season and unusually low at the end of the Spring-Summer season).

The base effect also had a negative impact at the end of the period because the high-cost extra promotional campaigns run over the same period last year were not renewed.

Results

The operating current income for the year is down by 30.9% to €14.5M. It was down by 42.8% for the first half of the year, particularly badly hit by the difficult market conditions, and up by 8.3% in the second half.

Excluding development costs, France's contribution goes from €13.3 M to €12.0M with the international contribution going from €10.9M to €6.8M.

This fall comes from the declining sales but also as a result of the many ongoing actions within the company (upgrading information systems, renewing the logistics system in the UK, reinforcing the organisation in Germany and the Netherlands, …).

Net income is down by 29.4% to €10.8M. This figure takes into account small amounts for exceptional items and financial costs, and a reduction in taxes.

Financial situation

Net cash at the end of June stands at €15.4M. This is down on last year because of the contextual increase in working capital, mainly because of an exceptional advance payment to suppliers and an earlier intake of inventory for the Autumn-Winter season.

Outlook

After the results of this last period, the company has stepped up its drive to improve and optimise processes and cost control (reducing break-even point). It has also worked on a more streamlined business model and development strategy. These actions will expectedly return the company to growth, and to a profitability level more in line with mid term objectives.

Dividends

At the next shareholders' meeting, the directory will propose the distribution of a net dividend of €0.55 per share, the same amount as last year.

September 11th 2007

Profile
Damartex is one of Europe's leading distributors of clothing and accessories for seniors. The company sells through catalogues (home shopping) and stores with its main markets in France, Great Britain and Belgium.
Agenda
Publication of first quarter sales: Friday October 26th 2007.

Contact
Damartex: Jacques Taccoen – Tel: +33 320 11 45 30 / Shan: François-Xavier Dupont – Tel: +33 144 50 58 74

http://www.damartex.com

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