Kesa FY earnings up 15.4 pct boosted by flat screen TV, laptop demand UPDATE |
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Published
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Wed, 21 Mar 2007 08:58
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(updates with further detail throughout)LONDON (AFX) - Kesa Electricals PLC, Europe's third-biggest electricals retailer, has reported a 15.4 pct increase in full year pretax profit, driven by continuing strong demand for flat screen televisions and laptops as well as a recovery in demand for white goods.For the year to Jan 31 2007 the group, which trades as Comet in the UK and Darty and BUT in France, made a pretax profit of 165.4 mln stg. This compares to analysts' forecasts of 163-171 mln stg and 143.3 mln stg last time.Group revenue increased by 9.8 pct to 4.5 bln stg during the period, up 7.8 pct on a like-for-like basis. Group retail profit rose by 9.7 pct to 180.9 mln stg from 164.9 mln stg the previous year.Chief executive Jean-Noel Labroue said the group expects the same sales trends to continue in 2007, but not at the same rate as last year.The group plans to accelerate its investments with particular emphasis on Darty's new services, Comet's trading mezzanine floor development programme, and developing its three new businesses in Italy, Switzerland and Turkey.'Whilst this will impact this year's earnings growth and cash flow, it will secure the future success of the group,' said Labroue.Kesa said overall trading since the year-end has remained positive. It anticipates sales will again be led this year by the strong new technology product cycle and that the small growth of the white goods market will continue.The group plans to maintain margins by focusing on cost control and productivity gains in logistics.The board is proposing a final dividend of 10.05 pence, making a total dividend for the year of 13.3 pence per share, an increase of 9.9 pct.Shares in Kesa closed Tuesday at 350-1/4 pence, valuing the business at 1.89 bln stg.This time last year Kesa rejected a 1.72 bln stg takeover proposal from an unnamed private equity consortium, widely reported to be made up of Kohlberg Kravis Roberts (KKR) and Permira. The retailer said the 325 pence a share offer undervalued the company and its prospects. Rumours of further private equity interest have persisted.newsdesk@afxnews.commsc/msc/tcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Kesa reports 11.3 percent increase in H1 sales 