REG - Kesa Electricals plc - End of Year Trading Statement

Thu May 17, 2012 2:00am EDT

* Reuters is not responsible for the content in this press release.

RNS Number : 5189D
Kesa Electricals plc
17 May 2012
 



 

 

 

                                                                                               

                                                                                               

17 May 2012                                                               

End of Year Trading Statement

 

Kesa Electricals plc today announces details of the trading period 9 January to 30 April for the financial year ended 30 April 2012, based on unaudited management accounts.

 

Summary

·     Total revenue for the Continuing Group¹ in the period fell 4.6 per cent in local currency, and by 5.9 per cent on a like-for-like basis, reflecting weak market conditions, particularly in Vision against the benefits of digital switchover in the prior year, notably in France

·      Continued benefit from our strategic cross-channel focus with web sales up 13 per cent

·      Strong performance in Multimedia and growth in White goods

·      Acceleration of operational efficiencies, particularly at Darty France

·      Improved positions at the Other established businesses and market outperformance at the Developing businesses

·      Disposal of Comet completed and new telecoms commercial agreement for Darty France

·      Adjusted profit before tax² for the year is expected to be around the mid-point of the range of current market expectations

 

Revenue change as reported in Euros   

 


Latest period

(9 January to 30 April)

H2

(6 months to 30 April)

Full Year

(12 months to 30 April)

Darty France

(8.6)%

(5.7)%

(4.2)%

Other established*

5.7%

7.7%

4.6%

Developing**

(3.6)%

(2.7)%

(1.7)%

Continuing Group

(4.7)%

(2.5)%

(2.0)%

 

Revenue change in local currency                                                 Like-for-like

 


Latest period

H2

 

Full Year


Latest period

H2

 

Full Year

 

Darty France

(8.6)%

(5.7)%

(4.2)%


(10.0)%

(7.6)%

(5.8)%

Other established*

6.2%

8.4%

4.7%


6.2%

7.3%

3.7%

Developing**

(3.2)%

0.7%

2.8%


0.8%

1.2%

(3.3)%

Continuing Group

(4.6)%

(2.0)%

(1.6)%


(5.9)%

(3.7)%

(3.5)%

 

* BCC, Vanden Borre and Datart

** Darty Italy, Darty Turkey and Darty Spain

 

¹  DartyFrance, Other established and Developing businesses.

² Adjusted profit before tax for the Continuing Group excludes the share of joint venture and associates' interest and taxation, the effects of valuation gains and losses on options to acquire non-controlling interests, profit on disposal of business operations, exceptional costs, amortisation and impairment of acquisition related intangible assets and exceptional finance costs.



Commenting on the Group's performance, Chief Executive Thierry Falque-Pierrotin said,

 

"Since last reporting in January trading conditions have been volatile and have remained weak in most of our markets, particularly in Vision and in Italy and Spain.

 

"We are however continuing to see benefits from implementing the Darty concept and our strategic cross-channel focus, with strong growth in web generated sales, improvement in our positions at the Other established businesses and market outperformance in our Developing businesses.

 

"We have taken significant steps to restructure the Group in the period with the completion of the sale of Comet in the UK and a new telecoms agreement for Darty France. We have accelerated the roll out of our successful cross channel policy with keener pricing, wider ranges and services, as well as enhanced and new platforms, improving the overall offer for our customers. At the same time, we have maintained our relentless focus on reducing costs and improving operational efficiencies, particularly at Darty France, so that we are well prepared for the coming year."

 

 

Trading for the period 9 January - 30 April

 

For the Continuing Group¹, revenue in the period fell by 4.7 per cent in Euros, by 4.6 per cent in local currency and by 5.9 per cent on a like-for-like basis. This reflected a more than 30 per cent decline in Vision due principally to the digital switchover last year, compensated in part by growth in White Goods and double digit growth in Multimedia. Group web generated sales continued to grow strongly, by 13 per cent in the period. Gross margin rate was down around 100 basis points compared to the same quarter last year reflecting competitive market conditions and product mix.

 

At Darty France total revenue fell by 8.6 per cent and by 10.0 per cent on a like-for-like basis, primarily due to the fall in Vision compared to the strong comparatives from the digital switch over in the Greater Paris region in the prior year. White goods and Multimedia saw positive sales growth. Underlying gross margin was down in line with the trend seen in Q3 at around 60 basis points, and with margin pressure at Darty Box in what has become a more competitive market, overall gross margin was down around 100 basis points. During the period a refreshed web site and mobile phone App were launched; and web generated sales continued to grow at 10 per cent, in spite of the poor Vision market. During the period Darty France started to see the benefit of actions which it has been taking to improve efficiencies both in store and back office with total costs down year on year.

 

At our Other established businesses total revenue increased by 6.2 per cent in local currency and on a like-for-like basis. This strong performance was supported by our cross-channel strategy, with web generated sales increasing by 20 per cent. Vanden Borre in Belgium again traded robustly and was awarded the best electricals web site by "BE-commerce", as voted for by consumers. We continued to see market share gains at BCC as the Darty concept is implemented and trading at Datart was flat in a negative market. All markets however were weaker than we had seen year to date. This  together with the mix effect from strong growth in Multimedia and Communications resulted in gross margin being down around 40 basis points.

 

At our Developing businesses total revenue was down 3.2 per cent in local currency and was up 0.8 per cent on a like-for-like basis, outperforming their markets, which remained very weak in Spain and Italy. All markets continued to be highly competitive and  promotional, and whilst we saw some overall improvement in the trend, gross margin was down around 210 basis points for the period.

 

 

Full Year Results

 

Adjusted profit before tax² for the Continuing Group¹ for the year ending 30 April 2012 is expected to be around the mid-point of the range of current market expectations.

 

Net debt as at 30 April 2012 is expected to be around €130 million. This reflects the disposal of Comet, including the weaker trading up to its disposal on 3 February 2012, as well as the timing of tax payments under the French tax system.

 

Given the geographic mix of profits within the Group the effective tax rate³ is expected to be around 47 per cent for the financial year just ended.

 

 

³ Effective tax rate on profit before exceptional items, including the share of joint venture and associates' tax.

 

 

ENDS

 

 

There will be a telephone conference call for analysts at 08:00 on 17 May 2012. If you would like to listen to a recording of this call, please visit the company's website www.kesaelectricals.com after 10:00.

 

The Group will announce its full year results to 30 April 2012 on Wednesday 20 June 2012.

 

Enquiries

 

Analysts

Kesa Electricals plc

Simon Ward                                                                +44 (0) 20 7269 1400

 

Media

Kesa Electricals plc

Simon Ward             UK                                              +44 (0) 20 7269 1400

Vinciane Beurlet       France                                        +33 (0) 1 43 18 52 00

 

Finsbury

Rollo Head               UK                                              +44 (0) 20 7251 3801

Jenny Davey

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
TSTEAKSKFLLAEFF