21st Jul 2005 07:00
Kesa Electricals plc21 July 2005 21 July 2005 Trading Update Kesa Electricals plc today announces a trading update for the period1 February 2005 to 18 July 2005, based on unaudited management accounts. Turnover growth as reported in sterling Darty 5.7%Comet (3.1)%BUT 12.0%Other* 11.9%Group Total 3.8% Turnover growth in local currency Total Like-for-likeDarty 3.5% 1.8%Comet (3.1)% (5.0)%BUT 9.6% 3.1%Other* 8.2% 0.9%Group Total 2.3% (0.7)%*BCC, Vanden Borre, Datart and Darty Italy Total Group turnover for the period grew by 3.8 per cent, 2.3 per cent in localcurrency, a slowdown compared to the first quarter as we faced tougher marketconditions in the UK, a decline in consumer confidence in France and strongercomparatives. At Darty, sales grew by 3.5 per cent in local currency, 1.8 per cent on a likefor like basis, driven by flat screen TVs, MP3s and laptops relative to thetraditional analogue products and white goods. The consequent adverse mix effecton product margin and the one-off costs of the closure of the warehouse inMarseille, completing the logistics programme ahead of schedule, will result ina reduction in Darty's first half profitability. Comet's sales decline versus the same period last year confirmed the negativetrend observed at the end of the first quarter. Comet has taken action to managemargins and reduce costs and, as previously stated, is expected to make a smallloss in the first half. Total store turnover at BUT grew by 7.3 per cent in local currency, 3.1 per centon a like for like basis. The action plan continues to show encouraging signsfor improved results in the second half of the year. Our other businesses, BCC, Vanden Borre, Datart and Darty Italy, delivered anoverall turnover growth of 8.2 per cent in local currency, 0.9 per cent on alike for like basis. Sales in Belgium and the Czech Republic are progressingwell but we are still experiencing particularly poor market conditions inHolland. Chief Executive Jean-Noel Labroue commented, "The Group's performance in the period reflects the deteriorating retailconditions across our markets. Total sales continued to be driven by the demandfor multimedia and digital products while sales of more traditional products,particularly white goods, remained weak. "Anticipating that the difficult market conditions will continue, our businessesare working hard to manage margins and streamline their organisations inpreparation for our important second half." ENDS Kesa Electricals plc's interim results for the six months ended 31 July 2005will be announced on 28 September 2005. There will be a telephone conference call for analysts at 08.00 on 21 July 2005.If you would like to listen to a recording of this call, please visit thecompany's web site on www.kesaelectricals.com Enquiries Analysts Kesa Electricals plcSimon Ward +44 (0) 20 7269 1400 Media Kesa Electricals plcAnnabel Donaldson UK +44 (0) 20 7269 1400Guy Lavaud France +33 (0) 1 43 18 52 00 FinsburyAbigail Irving-Bell UK +44 (0) 20 7251 3801 Euro RSCGLaurent Dondey France +33 (0) 1 58 47 95 17 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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