Comet owner predicts lean times

Consumer electronics titan Kesa Electricals, which owns UK retail chain Comet, has warned of more difficult trading conditions to come despite a 14 per cent hike in yearly revenues.

Kesa's revenue for the 12 months to 30 April was up 14 per cent on a pro forma basis to £4.15bn, while retail profit was up 3.1 per cent to £141.3m. These are the first results Kesa has published since moving its financial year, and revenue for the 15 months to the end of April was £5.36bn. Retail profit for this period was £143.3m.

For the 15 months to 30 April, Comet's revenue was £2.09bn, while retail profit was £40.4m. For the 12 months to the end of April, revenue was £1.74bn, up 2.9 per cent on a pro forma basis, while retail profit increased 0.9 per cent to £43m.
Kesa chief executive Jean-Noel Labroue said: "The Group delivered solid revenue and profit growth in overall positive market conditions, although these weakened over the last six months of the period. Sales continued to be helped by customer demand for new technologies and the negative mix effect on margin eased.

"We are seeing a continuing decline in consumer confidence and we anticipate further difficult trading conditions ahead. Consequently, more than ever, our priorities are to focus on maintaining product margin and improving productivity while reinforcing our strong service proposition and continuing to invest in the existing businesses and new markets to secure our longer term growth."

Chairman David Newlands added: "These results represent a pleasing performance from all our businesses in deteriorating market conditions. The Group has again demonstrated its strong cash generative nature, allowing us to continue with our important investments to secure our future success."