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Comet stores improve H1 profits by 37% as UK swings back to help Kesa to H1 profit of £14.9 million
Kesa Electricals, Europe's No. 3 electricals retailer, today said it was well set for the Christmas period as it beat forecasts with a 37% increase in first-half profit helped by better trading in the UK.
"The outlook for the second-half of the year remains uncertain but our businesses are prepared and well positioned for the more significant peak trading period," Chief Executive Thierry Falque-Pierrotin said today.
The firm, which trades from 250 stores as Comet in the UK and from 221 stores as Darty in France and in eight other countries, made an underlying pretax profit of £14.9 million in the six months to October 31.
That compares with analysts' consensus forecast of £11 million, according to a company poll, and £10.9 million made in the same period last year.
Sales increased 7.6% to £2.35 billion, while sales at stores open over a year fell 2.5% as an improvement in sales trends in the group's two main markets of the UK and France were offset by decreases in other territories. The UK operation, despite the improvement, made an operating loss of £1.6million.
Kesa ended the period with net cash of £53 million and maintained its interim dividend at 1.75 pence.
The firm said it expected to stabilise and grow Darty France's profit margin, increase Comet's profitability and by 2011/12 eliminate losses at developing businesses.
It also said it was focussed on developing its store network and cross channel Web sales.
Shares in Kesa have increased in value by over two thirds in 2009 on hopes its markets will emerge from recession against a 27% rise in the DJ Stoxx European retail index .SXRP. The stock closed at 155.4 pence on Tuesday, valuing the business at about £823 million.
Last month DSG International, Europe's No. 2 electricals retailer, beat analysts' forecasts for first-half losses and reported a pick-up in recent sales.
Also in November Europe's No. 1 electricals retailer Metro said it expected Q4 trading to be as tough as Q3.
"The outlook for the second-half of the year remains uncertain but our businesses are prepared and well positioned for the more significant peak trading period," Chief Executive Thierry Falque-Pierrotin said today.
The firm, which trades from 250 stores as Comet in the UK and from 221 stores as Darty in France and in eight other countries, made an underlying pretax profit of £14.9 million in the six months to October 31.
That compares with analysts' consensus forecast of £11 million, according to a company poll, and £10.9 million made in the same period last year.
Sales increased 7.6% to £2.35 billion, while sales at stores open over a year fell 2.5% as an improvement in sales trends in the group's two main markets of the UK and France were offset by decreases in other territories. The UK operation, despite the improvement, made an operating loss of £1.6million.
Kesa ended the period with net cash of £53 million and maintained its interim dividend at 1.75 pence.
The firm said it expected to stabilise and grow Darty France's profit margin, increase Comet's profitability and by 2011/12 eliminate losses at developing businesses.
It also said it was focussed on developing its store network and cross channel Web sales.
Shares in Kesa have increased in value by over two thirds in 2009 on hopes its markets will emerge from recession against a 27% rise in the DJ Stoxx European retail index .SXRP. The stock closed at 155.4 pence on Tuesday, valuing the business at about £823 million.
Last month DSG International, Europe's No. 2 electricals retailer, beat analysts' forecasts for first-half losses and reported a pick-up in recent sales.
Also in November Europe's No. 1 electricals retailer Metro said it expected Q4 trading to be as tough as Q3.
Wed, 16th Dec 2009