14th May 2009 07:00
Thursday 14 May 2009
End of Year Trading Statement
Kesa Electricals plc today announces details of the remaining trading period (9 January to 30 April) for the financial year ended 30 April 2009, based on unaudited management accounts.
Revenue growth as reported
|
Latest period (9 January to 30 April) |
H2 (6 months to 30 April) |
Full Year (12 months to 30 April) |
|
|
Darty |
12.0% |
14.8% |
15.0% |
|
Comet |
(5.3)% |
(2.8)% |
(5.1)% |
|
Other* |
10.6% |
15.2% |
21.5% |
|
Group Total |
5.6% |
8.2% |
8.3% |
Revenue growth in local currency Like for like
|
Latest period |
H2 |
Full Year |
Latest period |
H2 |
Full Year |
||
|
Darty |
(3.2)% |
(3.4)% |
(2.1)% |
(5.8)% |
(6.0)% |
(4.9)% |
|
|
Comet |
(5.3)% |
(2.8)% |
(5.1)% |
(7.3)% |
(4.8)% |
(7.7)% |
|
|
Other* |
(3.8)% |
(3.2)% |
2.2% |
(12.4)% |
(10.9)% |
(6.0)%** |
|
|
Group Total |
(4.0)% |
(3.2)% |
(2.4)% |
(7.5)% |
(6.5)% |
(6.1)% |
*BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey and Menaje Del Hogar
**Includes Menaje Del Hogar for the first time from 1 November 2008
Commenting on the Group's performance, Chief Executive Thierry Falque-Pierrotin said,
"During the period, overall the Group traded in line with its markets. A strong focus on managing gross margin and costs helped us deliver a cashflow and retail profit performance for the full year in line with expectations.
"A series of initiatives across the Group are underway to prepare us for another challenging year."
Trading
Total Group revenue increased by 5.6 per cent in sterling and declined 4.0 per cent in local currency, down 7.5 per cent on a like for like basis, for the period 9 January to 30 April 2009.
In France trading conditions remained challenging and Darty's revenue fell by 3.2 per cent in local currency, down 4.5 per cent excluding Darty Box and 5.8 per cent on a like for like basis, against a strong comparative period last year. Gross margin remained stable. Darty Box subscribers totalled 210,000 at the end of April.
In the UK following the successful peak Christmas trading period, Comet continued to trade satisfactorily although revenue fell by 5.3 per cent, 7.3 per cent on a like for like basis. The rate of gross margin decline significantly eased during the period.
At our other businesses* revenue declined by 3.8 per cent in local currency and by 12.4 per cent on a like for like basis. BCC in the Netherlands and Datart in the Czech Republic saw significant slowdown in their markets. Darty Italy again improved its overall position and Darty Turkey continued to grow very strongly. Menaje del Hogar faced extremely difficult market conditions in Spain and we saw another significant fall in revenue. Retail losses for this business will be higher than anticipated, at around €26 million, and restructuring plans to reduce losses substantially in the coming year are in progress.
Restructuring
Comet has taken further actions to improve its operational efficiency. These include the consolidation of distribution and service centres plus a reduction in head office headcount. An exceptional charge of approximately £9 million will be taken in the year just ended, with annualised cost savings expected to be approximately £14 million.
Given the extremely weak trading conditions experienced by Menaje Del Hogar and increased trading losses, actions are being taken to stabilise the business. These include the closure of one warehouse and distribution centre, streamlining the head office functions, store closures and a reduction in the number of staff working in the remaining store chain. An exceptional charge of approximately €10 million will be taken in the year just ended. These actions are expected to generate annualised cost savings of approximately €11 million and contribute to a reduction in the retail loss for the coming financial year.
Other
The Group continues to maintain a strong financial position with net cash at 30 April 2009. Net interest paid on financing will be in line with expectations. Non cash funding costs will be in the range of £12 to £15 million and relate to IAS 19 notional pension interest and an IAS 39 charge for changes in fair value of cash investments, the impact of which does not reflect the underlying performance of the business.
The geographic mix of profits within the Group has resulted in an expected tax charge for the year just ended to be approximately £37 million.
* BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey and Menaje Del Hogar
ENDS
There will be a telephone conference call for analysts at 08.00 BST on 14 May 2009. If you would like to listen to a recording of this call, please visit the company's website www.kesaelectricals.com after 10.00 BST.
The Group will announce its full year results on Wednesday 24 June 2009.
Enquiries
Analysts
Kesa Electricals plc
Simon Ward +44 (0) 20 7269 1400
Media
Kesa Electricals plc
Annabel Donaldson +44 (0) 20 7269 1400
Finsbury
Charles Watenphul UK +44 (0) 20 7251 3801
Euro RSCG
Benjamin Perret France +33 (0) 1 58 47 95 39
Related Shares:
DRTY.L