10th Sep 2008 07:00
Wednesday 10 September 2008
Interim Management Statement
Kesa Electricals plc today announces revenue performance for the three month period to 31 July 2008, based on unaudited management accounts.
Revenue growth as reported in sterling
|
Darty |
16.8% |
|
Comet |
(6.6)% |
|
Other* |
61.5% |
|
Group Total |
14.4% |
Revenue growth in local currency
|
Total |
Like-for-like |
|
|
Darty |
(0.2)% |
(3.2)% |
|
Comet |
(6.6)% |
(9.9)% |
|
Other* |
34.9% |
1.4% |
|
Group Total |
3.3% |
(4.7)% |
*BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey
and Menaje del Hogar
Commenting on the Group's first quarter revenue performance, Chief Executive Jean-Noel Labroue said,
"This quarter has, as anticipated, been very tough. Trading conditions across all our markets deteriorated, particularly in the UK, and have not changed since the period end. As we did not expect to see any improvement in the short term, we put in place a robust action plan to protect margins, adjust costs and generate cash while maintaining key strategic investments in our established businesses and start up operations to secure our long term growth."
Total Group revenue reported in sterling increased by 14.4 per cent, helped by the continued strength of the euro, representing a 3.3 per cent increase at constant exchange rates. Total Group like for like sales fell by 4.7 per cent.
At Darty, revenue fell by 0.2 per cent in local currency and 3.2 per cent on a like for like basis while product margins remained stable. Total net subscriptions for Darty Box, Darty's own triple play proposition, reached 150,000 at the end of the period and we still expect to meet our full year target of an additional 100,000 subscribers. During the period Darty opened three new stores and five further kitchen corners.
Comet's revenue decreased by 6.6 per cent, down 9.9 per cent on a like for like basis, with particularly weak sales of white goods. As a consequence, we now anticipate Comet will make a loss in the first half. During the quarter, Comet relocated one store and refurbished five stores all in the mezzanine format, bringing the total number of stores trading with a mezzanine floor to 29.
Revenue at our other businesses grew by 34.9 per cent at constant exchange rates. Against strong comparatives, like for like sales grew by 1.4 per cent.
The established businesses, BCC, Vanden Borre and Datart, delivered good overall total sales growth. Sales and results in Spain were disappointing, reflecting the very poor market conditions and we remain focussed on implementing our integration programme. Trading in Italy, Switzerland and Turkey continued to progress well. In Turkey we opened our first stores outside Istanbul, in Izmit and Izmir, during August.
Refinancing
We have signed a five year €500 million revolving credit facility expiring in 2013, replacing the existing facility which was due to expire in 2010.
ENDS
Note to Editors
As at 31 July 2008:
|
Store numbers |
Selling space (000sqm) |
|
|
Darty |
217 |
286.3 |
|
Comet |
251 |
271.5 |
|
Other* |
230 |
276.7 |
*BCC, Vanden Borre, Datart, Darty Italy, Darty Switzerland, Darty Turkey and Menaje del Hogar
There will be a telephone conference call for analysts at 08.00am on
10 September 2008. If you would like to listen to a recording of this call
please visit the company's website www.kesaelectricals.com after 10.00am.
The Group will issue its first half year results on Tuesday 16 December 2008.
Basis of Preparation
The above stated results do not include revenue from BUT, disposed of on 31 March 2008, but do include revenue from Menaje Del Hogar from the date of its acquisition on 17 September 2007.
Enquiries
Analysts
Kesa Electricals plc
Simon Ward +44 (0) 20 7269 1400
Media
Kesa Electricals plc
Annabel Donaldson UK +44 (0) 20 7269 1400
Finsbury
Ryan O'Keeffe UK +44 (0) 20 7251 3801
Euro RSCG
Benjamin Perret France +33 (0) 1 58 47 95 17
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