Electronics boutique sales surge

Electronics Boutique surged on the stock market today after revealing a huge increase in sales across its video and computer games stores.

The launch of a number of new titles for Sony’s PlayStation 2 games console contributed to a 23% rise in like-for-like sales in the first half of the year.

And the retailer said like-for-like growth had soared to 46% in the past two months as gamers snapped up both hardware and software.

Chairman Peter Lewis added that with a strong schedule of releases over the coming weeks, including a game based on the adventures of kid wizard Harry Potter, he was ‘‘very confident’’ for the all-important Christmas season.

The upbeat forecast sent shares in the Bracknell-based chain up 13% to 101p, their highest level for almost three weeks.

Electronics Boutique’s sales growth in the first half pushed turnover in the six months to July 31 up to £143.1m, a jump of 25%.

The increase helped cut pre-tax losses in the period, typically the slower half of the year, to £4.6m from £6.5m last time.

‘‘This is a good performance and we continue to make considerable progress on all fronts,’’ Mr Lewis said.

He added: ‘‘The encouraging thing to note is that in the period since 11 September our sales growth has not been affected.’’

Since the start of the year, Electronics Boutique has expanded into both Spain and Sweden in the first phase of a move into Europe.

The retailer also runs concessions in 75 Sainsbury’s supermarkets and an online games service.

Mr Lewis said that by having a mix of sales formats, the group was learning which ones would work best as it expands.

The launch of Microsoft’s Xbox console and Nintendo’s Game Cube next spring should ensure the retailer’s strong growth continues, he added.

Rowan Morgan, retail analyst at Teather & Greenwood, said his target price for the company was 150p.

He added: ‘‘What you have got is strong hardware sales driving strong software sales. You are in for a thundering good ride for a couple of years.’’

Shareholders will receive an interim dividend of 0.4p, up 21% on last time.