TJ HUGHES plc, the quality discount department store operator with an outlet in Birkenhead Shopping Centre, has seen its share price soar from a low of £1.22.5 to a high of £3.36.

And at the annual meeting, Chairman David Winterbottom gave an encouraging trading update.

"The Board is encouraged by the trading performance for the first five months of the current financial year," he told shareholders.

"Despite challenging trading conditions for the retail sector, overall sales are up by 30 per cent and like-for-like sales are ahead by 10 per cent.

"This is in comparison with the good rate of growth experienced in the equivalent period last year. Overall operating costs are within budget and gross margins level with last year."

Progress, said Mr Winterbottom, was being made on new store development. "Since the financial year-end, the company has successfully opened its first store in the South of England, in Eastbourne.

"This, coupled with the openings in Wrexham and Middlesbrough in the Autumn, will add an additional 18 per cent net selling space in the current financial year. We have contracted to open a store in Burnley in Spring 2000 and other new store opportunities are being actively explored to continue the expansion programme for both this year and next."

Mr Winterbottom added: "Not withstanding the current level of sales being achieved by the Company, it is important to remember that a successful peak Autumn and pre-Christmas trading period is the key for the year as a whole.

"As a Board, we are heartened by trading this year and, in the absence of a deterioration in the trading environment, we hope to be able to report a satisfactory outcome for the current financial year."

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