LONDON (ShareCast) - Electrical goods retailer Kesa slumped into losses for the year after one-off costs and poor performance in Spain and Comet (COTN.SW - news)
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The group also anticipates another difficult year, which it said it will combat with cost management actions, reducing losses in its new business and focusing on cash generation.
Underlying profits also nearly halved, with trading described as difficult in all markets, but especially Spain and the UK. But the group said it was pleased with Darty France and its established businesses in Holland, Belgium and the Czech Republic, which all maintained market positions and improved gross margins
Losses for the year to April came in £81.8m (profit £128.8m) after write-downs of £118.5m relating to the Menaje del Hogar operation in Spain. Further exceptional restructuring costs of £23.1m primarily related to actions taken at Comet in the UK and Menage del Hogar.
Ignoring the one-offs, profits still tumbled to £77m (2008: £141.3m) primarily due to a 76% drop in profits at Comet to £10.1m and wider losses at Menaje del Hogar of £23m (2008: losses £1.8m). Profits were also boosted by currency translation gains of £14.4m.
Group revenue was £4.95bn, up 9.8% on last year, but fell 1.2% in constant currency and by 6.2% on a like for like basis.
In France, total revenue fell 2.1%, and 5% on a like for like basis. In the UK, Comet's total revenue fell by 4.7% and by 7.7% on a like for like basis.
"Trading conditions across all our markets were difficult throughout the year," chief executive Thierry Falque-Pierrotin.
"Actions have been taken on costs across the Group, and particularly in the UK, to mitigate the impact of the market conditions," he added.
The dividend for the year is 5p, down 65% on last time.
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