Profits rise but Kesa remains cautious
ELECTRICALS group Comet joined the list of under-pressure retailers today after its owner forecast a difficult market for its flagship business.
Kesa Electricals, which also has a string of businesses on the Continent, said the outlook for the UK market appeared 'challenging' after seeing consumer confidence remain subdued since the turn of the year.
The cloudy outlook emerged as Kesa said Comet - the UK's second biggest electricals retailer - had performed ahead of the rest of the market in the financial year to 31 January.
Like-for-like sales at the division rose 3.4% against a gain of 2.5% for the rest of the market, the company said.
Strong growth was seen in sales of LCD and plasma televisions while multimedia business benefited from strong demand for laptops and LCD monitors. American style fridge-freezers were among other products to sell well.
Overall, the 250-outlet chain achieved operating profits of £52m, up 9.7% on a year earlier following a 6.5% rise in turnover to £1.54bn.
Across the group, turnover increased by 5% to £3.96bn, with retail profits up by 2% to £206.7m, a performance dragged back by a disappointing showing from French furniture business But.
Pre-tax profits before exceptional items rose 8% to £193.7m, the company added.
Chief executive Jean-Noel Labroue described the results as satisfactory and said a new management team had been installed to boost But.
He added: 'All our electricals business have gained market share and improved retail profitability growth.'
