24th Jun 2009 07:00
24 June 2009
Statement of Results for the Twelve Months ended 30 April 2009
Financial Highlights
12 months to 30 April 2009 (compared with proforma 12 months to 30 April 2008), Continuing Group*
Group revenue increased by 9.8% to £4,954.1 million (2008: £4,513.1 million), and declined by 1.2% in constant currency1 and by 6.2% on a like for like basis
Group retail profit2 was £77.0 million (2008: £141.3 million)
Exceptional costs were £150.9 million of which £144.6 million were non-cash (2008: £2.5 million)
Loss before tax was £81.8 million (2008 profit: £128.8 million)
Adjusted earnings per share3 were 5.7 pence (2008: 16.2 pence)
Net cash on 30 April 2009 was £7.5 million (30 April 2008: £46.5 million)
The Board is recommending a final dividend of 3.25 pence per share, bringing the total dividend for the 12 month period to 5.0 pence per share
12 months to 30 April 2009 as reported (compared with 15 months to 30 April 2008), Continuing Group*
Group revenue was £4,954.1 million (2008: £5,356.6 million)
Group operating loss was £65.0 million (2008 profit: £141.0 million)
Basic losses per share were 21.7 pence (2008: Earnings per share: 15.8 pence)
*In order to improve internal planning processes, the Group moved its financial year end to 30 April. These accounts reflect the transitionary period to this new reporting date and are accordingly compared to the 15 months to 30 April 2008.
1 Constant exchange rate of £1 = €1.1827 (the weighted average £/€ exchange rate for the 12 months ended 30 April 2009)
2 Retail profit represents total operating profit before the share of joint venture and associates' interest and taxation, valuation gains /(losses) on options to acquire minority interests, amortisation and impairment of acquisition related intangible assets and exceptional restructuring costs.
3 Adjusted earnings per share excludes the effects of valuation gains and losses on options to acquire minority interests, exceptional restructuring costs and exceptional finance costs and amortisation and impairment of acquisition related intangible assets.
Thierry Falque-Pierrotin, Chief Executive, commented:
"Trading conditions across all our markets were difficult throughout the year. However I am pleased that Darty France and our established businesses in Holland, Belgium and the Czech Republic all maintained their market positions and improved gross margins. In addition, our start up operations in Italy and Turkey continued to grow scale with a clear, differentiated offer and restructuring in Spain is well advanced. Actions have been taken on costs across the Group, and particularly in the UK, to mitigate the impact of the market conditions.
"In anticipation of another difficult year we will continue with our cost management actions, reduction in the losses in our new businesses and focus on cash generation which will be aided by lower capital expenditure.
"In the medium term, we will continue to focus on improving the execution of our service led business model and better leverage our size and expertise."
David Newlands, Chairman, commented:
"In conditions that remained extremely difficult throughout the year I am very satisfied that the Group again demonstrated the strength of its cash generative business model. This strength, together with our significant unleveraged freehold property portfolio, extended debt facility and operational restructuring actions, gives us confidence that the Group is well positioned for another challenging year.
"Given the difficult conditions, the Board has recommended a final dividend of 3.25 pence per share, bringing the total dividend for the full year to 5.0 pence per share. We intend to resume the Group's progressive dividend policy when the economic environment improves."
ENDS
Enquiries
Analysts:
Kesa Electricals plc
Simon Ward +44 (0) 20 7269 1400
Press:
Kesa Electricals plc
Annabel Donaldson +44 (0) 20 7269 1400
Finsbury
Charles Watenphul +44 (0) 20 7251 3801
Euro RSCG
Benjamin Perret +33 (0) 1 58 47 95 39
There will be a presentation to analysts and institutions at 09.00 today and a live audio webcast of the event is available via our website www.kesaelectricals.com.
This announcement is also available on our website.
On 10 September 2009, we will hold our AGM and issue the first quarter interim management statement.
Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements
KESA Electricals is a specialist electrical retailer. It employs more than 26,000 people and trades in 12 countries. KESA Electricals is a member of the FTSE 250. Its ordinary shares are listed with the UK Listing Authority and trade on the market for listed securities on the London Stock Exchange under the symbol KESA.L. It is also listed on the Premier Marche of the Paris Stock Exchange. For further information, please visit the company's website, as above.
OPERATING AND FINANCIAL REVIEW
|
Group income statement
|
12 months ended
30April
2009
£m
|
15 months ended
30 April
2008
£m
|
|
12 months ended
30April
2009
£m
|
12 months* ended
30April
2008
£m
|
|
Revenue
|
4,954.1
|
5,356.6
|
|
4,954.1
|
4,513.1
|
|
Retail Profit
|
77.0
|
143.2
|
|
77.0
|
141.3
|
|
Share of joint venture and associates interest and taxation
|
(0.7)
|
(0.6)
|
|
(0.7)
|
(0.6)
|
|
Valuation gains / (losses)
|
0.3
|
(0.6)
|
|
0.3
|
(0.6)
|
|
Exceptional restructuring costs
|
(23.1)
|
|
|
(23.1)
|
|
|
Amortisation and impairment of acquisition related intangible assets
|
(118.5)
|
(1.0)
|
|
(118.5)
|
(1.0)
|
|
Total operating (loss)/ profit
|
(65.0)
|
141.0
|
|
(65.0)
|
139.1
|
|
Finance costs (net)
Exceptional finance costs
(Loss) / profit before income tax
Total taxation
(Loss) / profit for the financial period from continuing operations
Profit for the financial period from discontinued operations
|
(7.5)
(9.3)
(81.8)
(32.8)
(114.6)
3.2
|
(11.6)
(1.5)
127.9
(45.0)
82.9
36.7
|
|
(7.5)
(9.3)
(81.8)
(32.8)
(114.6)
3.2
|
(8.8)
(1.5)
128.8
(46.4)
82.4
32.2
|
|
(Loss) / profit for the financial period
|
(111.4)
|
119.6
|
|
(111.4)
|
114.6
|
|
Earnings per share – basic and diluted (pence)
Continuing operations
Discontinued operations
|
(21.7)
0.6
|
15.8
6.9
|
|
(21.7)
0.6
|
15.6
6.1
|
|
Total (losses) / earnings per share
|
(21.1)
|
22.7
|
|
(21.1)
|
21.7
|
|
Segmental analysis - Continuing Group |
12 months ended 30 April 2008 £m |
15 months ended 30 April 2008 £m |
12 months ended 30 April 2008 £m |
12 months* ended 30 April 2008 £m |
|
|
Revenue Darty France Comet Other |
2,299.9 1,659.6 994.6 |
2,371.0 2,086.7 898.9 |
2,299.9 1,659.6 994.6 |
1,988.8 1,741.6 782.7 |
|
|
Total |
4,954.1 |
5,356.6 |
4,954.1 |
4,513.1 |
|
|
Retail profit / (loss) Darty France Comet Other Central costs |
103.9 10.1 (23.2) (13.8) |
121.9 40.4 (4.3) (14.8) |
103.9 10.1 (23.2) (13.8) |
111.5 43.0 (0.8) (12.4) |
|
|
Total |
77.0 |
143.2 |
77.0 |
141.3 |
|
Cash Flow Summary - Total Group |
12 months ended 30 April 2008 £m |
15 months ended 30 April 2008 £m |
12 months ended 30 April 2008 £m |
12 months* ended 30 April 2008 £m |
|
|
Cash generated from operations Interest and tax paid |
250.6 (41.7) |
186.4 (87.3) |
250.6 (41.7) |
291.9 (70.3) |
|
|
Net cash flow from operating activities |
208.9 |
99.1 |
208.9 |
221.6 |
|
|
Net capital expenditure and investments Dividends paid Other |
(131.3) (85.6) (31.0) |
128.2 (72.2) (33.2) |
(131.3) (85.6) (31.0) |
159.6 (72.2) (34.0) |
|
|
Movement in net debt |
(39.0) |
121.9 |
(39.0) |
275.0 |
*Proforma
GROUP OVERVIEW
For the 12 months to 30 April 2009
To facilitate understanding of the main business trends, the following analysis and narrative covers the 12 month periods to 30 April 2009 and 30 April 2008 for the continuing business.
Proforma results as reported in sterling
|
|
Revenue for 12 months ended
30April
2009
£m
|
Revenue for
12 months ended
30April
2008
£m
|
Change
|
|
Retail profit for
12 months ended
30April
2009
£m
|
Retail profit for
12 months ended
30April
2008
£m
|
Change
|
|
Darty*
|
2,299.9
|
1,988.8
|
15.6%
|
|
103.9
|
111.5
|
(6.8)%
|
|
Comet
|
1,659.6
|
1,741.6
|
(4.7)%
|
|
10.1
|
43.0
|
(76.5)%
|
|
Other**
|
994.6
|
782.7
|
27.1%
|
|
(23.2)
|
(0.8)
|
|
|
Central
|
-
|
-
|
-
|
|
(13.8)
|
(12.4)
|
(11.3)%
|
|
Total
|
4,954.1
|
4,513.1
|
9.8%
|
|
77.0
|
141.3
|
(45.5)%
|
Proforma results as reported in local currency
|
|
Revenue for 12 months ended
30April
2009
m
|
Revenue for
12 months ended
30April
2008
m
|
Change
|
|
Retail profit for 12 months ended
30April
2009
m
|
Retail profit for
12 months ended
30April
2008
m
|
Change
|
|
Darty*
|
€2,718.0
|
€2,777.3
|
(2.1)%
|
|
€121.6
|
€156.5
|
(22.3)%
|
|
Comet
|
£1,659.6
|
£1,741.6
|
(4.7)%
|
|
£10.1
|
£43.0
|
(76.5)%
|
|
Other**
|
€1,176.9
|
€1,085.5
|
8.4%
|
|
€(27.8)
|
€(0.9)
|
|
* Darty France
**Includes BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey and Menaje del Hogar from
17 September 2007.
Financial Highlights
Group revenue was £4,954.1 million, up 9.8 per cent on last year (down 1.2 per cent in constant currency) and down 6.2 per cent on a like for like basis.
Group retail profit was £77.0 million (2008: £141.3 million) primarily due to the profit decline at Comet to £10.1 million (2008: £43.0 million) and losses at Menaje del Hogar of £23.0 million (2008: losses £1.8 million).
The reported results in sterling were favourably impacted by the strengthening of the euro. The weighted average rate for the 12 months was 1.1827 (2008: 1.3967). The impact of the strengthening euro compared to last year was to increase revenue by £549.7 million and retail profit by £14.4 million in the 12 months to 30 April 2009.
The reported operating loss of £65.0 million (2008: profit £139.1 million) was after exceptional non cash charges relating to Menaje del Hogar goodwill and intangible assets write off of £118.5 million. Exceptional restructuring costs of £23.1 million (2008: £nil) primarily related to actions taken at Comet and Menage del Hogar.
The net interest charge was £7.5 million (2008: £8.8 million). The net interest charge included £3.8 million (2008: £1.4 million) for IAS 19 notional pension interest. Exceptional finance costs comprised an IAS 39 charge of £9.3 million (2008: £1.5 million) for changes in fair value of cash investments classified in the balance sheet as cash and cash equivalents.
Loss after interest and before tax was £81.8 million (2008: Profit £128.8 million).
Including the charge for the joint venture and associates the effective tax rate was 56.6 per cent (2008: 35.9 per cent). The rate is principally the effect of unrelieved start up losses and trading losses in Spain. Actions are being taken to reduce this high effective rate going forward.
Cash generated from operations was £250.6 million (2008: £291.9 million).
Net capital expenditure and investments was £131.3 million compared to a net inflow of £159.6 million last year due to the sale of BUT and the acquisition of Menaje del Hogar.
Basic and diluted losses per share were 21.7 pence (2008: earnings per share 15.6 pence) and adjusted earnings per share were 5.7 pence (2008: 16.2 pence).
The Board has recommended a final dividend of 3.25 pence, making a total of 5.0 pence for the full year. The ex dividend date will be 16 September 2009, the record date 18 September 2009 and payment date 9 October 2009.
Trading Highlights
Trading conditions were difficult across all our markets, particularly in Spain.
In France, revenue excluding Darty Box fell by 3.4 per cent and retail profit fell by 22.3 per cent to €138.6 million in local currency. Total revenue fell 2.1 per cent, and 5.0 per cent on a like for like basis.
Comet's total revenue fell by 4.7 per cent, 7.7 per cent on a like for like basis, and retail profit fell by 76.5 per cent to £10.1 million.
Total revenue at our other businesses, BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey and Menaje del Hogar, grew by 8.4 per cent in local currency, and fell 6.3 per cent on a like for like basis. Total retail losses increased from €0.9 million to €27.8 million largely due to increased losses at Menaje del Hogar of €26.9 million (2008: losses €2.3 million from 17 September 2007 acquisition date).
Outlook
In anticipation of another difficult year we will continue with our cost management actions, reduction in the losses in our new businesses and focus on cash generation which will be aided by lower capital expenditure.
In the medium term we will continue to focus on improving the day to day execution of our service led business model and better leverage our size and expertise.
DARTY FRANCE
|
|
Results for
12 months
ended
30April
2009
£m
|
Results for
12 months
ended
30April
2008*
£m
|
Change
|
|
Results for 12 months ended
30April
2009
€m
|
Results for
12 months ended
30April
2008*
€m
|
Change
|
|
Revenue
|
2,299.9
|
1,988.8
|
15.6%
|
|
2,718.0
|
2,777.3
|
(2.1%)
|
|
Retail profit
|
103.9
|
111.5
|
(6.8)%
|
|
121.6
|
156.5
|
(22.3)%
|
|
|
|
|
|
|
|
|
|
|
No of stores
|
221
|
214
|
+7
|
|
|
|
|
|
Sales space
(000s sq m)
|
296
|
283
|
4.6%
|
|
|
|
|
In France trading conditions toughened during the year. However Darty maintained its overall market position and total revenue fell by 2.1 per cent in local currency compared to the same period last year, and by 5.0 per cent on a like for like basis. White goods and accessories performed better than brown and grey goods helping gross margin improve.
Total revenue fell by 3.4 per cent and retail profit fell by 22.3 per cent before taking into account the €77.2 million revenue (2008: €43.2 million) and €16.9 million losses (2008 loss: €22.0 million) for Darty Box.
Despite the difficult trading conditions Darty continued to leverage its strong brand position. Twelve stores now have the successful new kitchen range and the offer will be rolled out to a similar number of stores in the coming year.
The Darty web site was revamped during the year which, together with its new 'Click and Collect' offer, continued to deliver strong growth with web generated sales increasing by 30.5 per cent.
Darty also continued to improve its store portfolio. During the period seven new stores were opened and 11 stores were relocated, refurbished or extended. Over the next year, two new stores are planned with a further three relocations.
At the end of the period there were a total of 210,000 subscribers to Darty Box. Overall, performance was in line with our financial plans and losses are now reducing. In early November a new high speed Box was launched utilising the fibre optic network of the commercial partner Numericable. Compared to ADSL, it offers high speed web surfing, high definition TV and simultaneous access to all multimedia services. With this improved offer we plan to achieve monthly profitability during 2010.
COMET
|
|
Results for
12 months ended
30April
2009
£m
|
Results for
12 months
ended
30April
2008*
£m
|
Change
|
|
Revenue
|
1,659.6
|
1,741.6
|
(4.7)%
|
|
Retail profit
|
10.1
|
43.0
|
(76.5)%
|
|
|
|
|
|
|
No of stores
|
250
|
251
|
(1)
|
|
Sales space
(000s sq m)
|
276
|
268
|
3.0%
|
*Proforma
Comet faced a tough economic climate throughout the year. Total revenue was £1,659.6 million, a fall of 4.7 per cent compared to the same period last year and a fall of 7.7 per cent on a like for like basis.
Retail profit fell to £10.1 million (2008: £43.0 million) but the impact of the trading conditions was limited by strong actions on costs. During the year, Comet continued its cost optimisation of the store portfolio with the successful mezzanine format. With nine conversions and three relocations all completed during the year, we now have 39 stores trading with a mezzanine floor.
Also during the year, store and head office staffing levels were reduced, four service centres were closed and the logistics structure was rationalised with the closure of two home delivery platforms and the relocation of one distribution centre. In addition, one regional distribution centre will close in the first half of this year. Whilst this restructuring meant we had to take an exceptional charge of £9.6 million this year, we expect the future annualised cost savings to be approximately £14 million.
Comet continued to improve its service offer with on-line delivery tracking, additional installation services for integrated appliances, a 24-hour helpline for Comet on Call customers and the extension of free 30-day helplines for televisions and multi-media ranges.
The on-line offer was also further developed with an easier to navigate site, enhanced advice, product advice videos and customer product reviews and web generated sales now account for over 12 per cent of Comet's total sales.
|
|
Results for 12 months ended
30April
2009
£m
|
Results for
12 months ended
30April
2008*^
£m
|
Change
|
|
Results for
12 months ended
30April
2009
€m
|
Results for 12 months ended
30April
2008*^
€m
|
Change
|
|
Revenue
|
994.6
|
782.7
|
27.1%
|
|
1,176.9
|
1,085.5
|
8.4%
|
|
Retail loss
|
(23.2)
|
(0.8)
|
|
|
(27.8)
|
(0.9)
|
|
|
|
|
|
|
|
|
|
|
|
No of stores
|
243
|
227
|
+16
|
|
|
|
|
|
Sales space
(000s sq m)
|
289
|
274
|
5.5%
|
|
|
|
|
Related Shares:
DRTY.L