Shares of Kesa Electricals Plc (KESA.L) dropped about 8 percent Wednesday morning after the electrical and electronic retailer reported a pre-tax loss for the year ended April 30, hurt by tough market conditions, particularly in Europe. The company expects the market across Europe to remain tough.
Thierry Falque-Pierrotin, chief executive of the company, said, "Markets throughout Europe were exceptionally difficult in 2011/12. As a result the Group took some major steps to realign its business portfolio, sharpen the implementation of the commercial policy, and reduce costs."
Following the disposal of Comet in the UK, the board has decided to rename the Group as Darty to reflect in its name the iconic brand.
For the fiscal ended April 30, 2012, the company posted a loss before tax of 17 million euros, compared to a pre-tax profit of 85.6 million euros a year ago. Adjusted profit before tax was 59 million euros, much lower than 102.4 million euros last year.
On a per-share basis, loss was 59.2 cents, compared to earnings of 6 cents per share in the previous year. Adjusted earnings declined to 6.2 cents from 12.6 cents per share a year ago. The company said its prior-year results were restated following the sale of Comet.
Annual revenues dropped 2 percent year-over-year to 4.03 billion euros. On a like-for-like basis, revenue decreased 3.5 percent.
Overall gross margin dropped 80 basis points, reflecting pressure from declining markets, particularly at Darty France and developing businesses.
The board is also recommending a final dividend of 1.25 cents per share. This will bring the full-year dividend to 3.5 cents, lower than 7 cents paid last year.
Kesa Electricals also said it has appointed Alan Parker, who will succeed David Newlands as Chairman effective from the conclusion of its 2012 Annual General Meeting on September 13. Parker is currently the senior independent director.
KESA.L is currently trading at 51.25 pence, down 4 pence or 7.24 percent, on a volume of 673 thousand shares on the LSE.
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by RTT Staff Writer
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