Deacons released its 1H13 performance figures, widening its loss from continuing business to KES 96m driven by an increase in expenses and slow revenue growth. The company restated its numbers taking into account the joint venture with Woolworth on its 7 stores. Total profit from the year was at KES 316m due to a gain on transfer of its Woolworths stores to the joint venture with Woolworths S.A. Sales grew at a slow rate 6.29%y/y due to reduced customer transactions, forcing the retail company to increase promotions and markdown prices in order to liquidate inventory. GP margins fell to 40.45% vs. 41.08% due to a rise in its cost of sales. Operating expenses climbed 22.58% driven by increased staff numbers and expansion costs. The retail chain is optimistic about the second half of the year citing increased foot traffic and customer transactions in Q3. Deacons opened 3 new stores in the recently opened Thika Road Mall, and intends to introduce a new brand Bossini to its portfolio. The firm is in the process of engaging a potential strategic investor who they expect to bring a wide portfolio of brands that will add value to its customers as well as shareholders(Company filings, Standard Investment Bank)