In its half yearly results, Comet’s parent company Kesa Electricals (LSE: KESA) reported that group revenue increased by 7.6% to £2.3 billion, improved profitability and further strengthened its balance sheet.
The group’s overall pre-tax profit swung back into the black to £6 million, compared with 2008’s H1 loss of £103.8 million. The group’s improved retail performance was primarily driven by the Darty chain in France and the Comet branded stores in the UK. Retail profits increased approximately 50% on a constant currency basis, at £24.3 million (2008: £13m).
"Trading conditions across all our markets continued to be challenging with widely varying geographic market conditions. However, the Group has delivered a solid performance over the first half of the year, ahead of our major markets”, Thierry Falque-Pierrotin, Kesa Chief Executive said, “The outlook for the second half of the year remains uncertain but our businesses are prepared and well positioned for the more significant peak trading period."
The group’s cash position has been substantially improved compared with the same period last year. Although cash generation was reduced at £113.3 million (2008: £122.3m), the retailer’s net expenditure was reduced by almost two thirds at £24.3 million (2008: £74.9). On the 31st October Kesa net cash was £53 million compared to £5.2 million in the previous year.
The FTSE250 constituent reported return to positive earnings per share (EPS), following last years H1 loss of 19.4 pence per share, basic EPS for the six months was 0.6p. The board has decided to maintain its interim dividend of 1.75p.
Into the second half, Kesa said its outlook remains uncertain but it is prepared and well positioned and well positioned for the more significant peak Christmas trading period. According to the European retailer its first half performance and its strong financial structure provides the foundations for future growth.