Kesa Electricals Share Discussion Threads

[cover] 26/4/2007 15:06

may 23rd? what happens then!?

[waldron] 26/4/2007 14:57

i guess there's no stimulating news out there,until 23 May is approached.

[cover] 26/4/2007 14:38

if its a hold at 348.75! why is it down today?! guys, ur thoughts welcome!

[cover] 26/4/2007 11:09

maywillow - 13 Jun'03 - 11:17 View 'maywillow' profile






News
27/03/07 15:32 UKREG Holding(s) in Company



Charts


Long Term Chart


Fundamental Data
Sector
Mkt.Sector FT25 Mkt.Segment SET2
Turnover 4,501 Profit 165
Norm EPS 20.70 PE Ratio 16.36
Market cap 1,794 NMS 75,000





Calendar


Description 2007
Pre-Close Announcement 18th January
Full Year Announcement 21st March
Q1 Announcement and AGM 23rd May
H1 Pre-Close Announcement 26th July
Interim Announcement 26th September (tbc)
Q3 Announcement 22nd November







waldron - 25 Mar'07 - 18:54 - 272 of 274


The Observer


Comet parent group Kesa Electricals is the latest retailer tipped for private equity interest. The group, which also trades in Europe as Darty, recently announced a slightly lower-than-expected 15.4% rise in profits to £165.4m last year and the chief executive reportedly said sales growth would be slow this year. But with mounting speculation of a bidder waiting in the wings to snap up Kesa, investors are tipped to hang on to their shares, at 348.75p.

[cover] 26/3/2007 22:26

lets hope it climbs tomorrow after the rebound in US stocks!

[waldron] 26/3/2007 18:22

extract


And finally, Kesa was off 8-3/4 at 340 after Credit Suisse downgraded the stock to 'underperform' from 'neutral' and Bridgewell Securities cut its stance to 'underweight' from 'neutral'.

In a note this morning, the broker said whilst it cannot fully discount the possibility of a bid for the electricals retailer, the broker believes at present the stock is overvalued.

source: advfn news bulletin

[waldron] 25/3/2007 18:54

The Observer


Comet parent group Kesa Electricals is the latest retailer tipped for private equity interest. The group, which also trades in Europe as Darty, recently announced a slightly lower-than-expected 15.4% rise in profits to £165.4m last year and the chief executive reportedly said sales growth would be slow this year. But with mounting speculation of a bidder waiting in the wings to snap up Kesa, investors are tipped to hang on to their shares, at 348.75p.

[ariane] 23/3/2007 15:53

Blackrock holding

Fallen below 5% to 4.76%

[andrewlewis] 23/3/2007 11:39

Waldron

Thanks for your cheeful update. KESA seems to have come into its own and having split off from KGF it certainly has shown its mettle

Have a good weekend

[waldron] 22/3/2007 13:06

perhaps better to use this kesa thread


cheers

[waldron] 22/3/2007 13:03

KESA Electricals "overweight," target price raised

Thursday, March 22, 2007 7:01:33 AM ET
J.P. Morgan Securities

LONDON, March 22 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on KESA Electricals Plc (KE4.ETR), while reducing their estimates for the company. The target price has been raised from 388p to 405p.

In a research note published this morning, the analysts mention that the company is commencing a significant expansion programme into new products and services as well as new markets, which is exerting pressure on earnings. The analysts expect KESA Electricals' Darty Box to meet the EBIT margin guidance of 25% going forward. The EPS estimates for 2007 and 2008 have been reduced from 21.0p to 20.5p and from 22.2p to 21.8p, respectively

[waldron] 22/3/2007 13:01

KESA Electricals "overweight," target price raised

Thursday, March 22, 2007 7:01:33 AM ET
J.P. Morgan Securities

LONDON, March 22 (newratings.com) - Analysts at JP Morgan maintain their "overweight" rating on KESA Electricals Plc (KE4.ETR), while reducing their estimates for the company. The target price has been raised from 388p to 405p.

In a research note published this morning, the analysts mention that the company is commencing a significant expansion programme into new products and services as well as new markets, which is exerting pressure on earnings. The analysts expect KESA Electricals' Darty Box to meet the EBIT margin guidance of 25% going forward. The EPS estimates for 2007 and 2008 have been reduced from 21.0p to 20.5p and from 22.2p to 21.8p, respectively.

[waldron] 22/3/2007 07:00

Kesa plans 40 two-storey Comet outlets
By Susie Mesure, Retail Correspondent
Published: 22 March 2007
Kesa Electricals unveiled plans for 40 two-storey Comet outlets yesterday as it cautioned that last year's bumper sales growth from the flat-screen television revolution would slow.

Kesa is putting 40 mezzanine levels into its 250 Comet stores, starting with 10 this year. The move will put further pressure on its rival DSG's Currys outlets.

Kesa, which recently launched a combined television, phone and internet service at its French chain Darty, ruled out bringing a similar service to the UK. Hugh Harvey, Comet's managing director, said the UK chain would stick to a "traditional retail offer while we watch Mr Murdoch and Mr Branson fight it out".

In France, 28,000 subscribers had signed up to Darty Box by the end of January. It expects a further 140,000 more subscribers by the end of 2007.

The company said losses related to Darty Box would be £3m more this fiscal year than it predicted in September. The new venture lost it €9m (£6.1m) last year and will cost the company €24m before it starts making a profit. Analysts at Panmure Gordon expect it to make £26m two years from now.

Jean-Noel Labroue, the chief executive, said he was "reasonably confident that customers are in reasonably good shape" across Europe, barring a "political or economic accident". He said sales in the past six weeks grew by "mid-single digits".

Strong demand for new technologies, particularly laptops, and a return to growth in the white goods market helped group pre-tax profits to rise by 15.4 per cent to £165.4m on sales up 9.8 per cent to £4.5bn in the year to 31 January. Despite a tight focus on costs, bigger sales of low-margin products such as flat-screen televisions knocked Kesa's margin.

Comet, which has around 250 stores in the UK, reported a 20.4 per cent increase in retail profit to £46.1m, while Darty's retail profit grew 3.9 per cent to £114.2m. BUT, its French furniture chain, lifted its retail profit by 5.6 per cent to £36.1m.

Mr Harvey said Comet was outperforming Currys because of the "quality of advice we give our customers". He said the chain also offered "greater choice and more options in terms of high-end brands".

Comet is rolling out a support service for baffled PC users called "Comet on Call" after a successful trial in 34 stores.

A year ago, Kesa turned down a possible 325p-per-share takeover approach as too low. Yesterday David Newlands, the chairman, said the group had not received any fresh approaches. Last night its shares closed down 6.25p at 344p.

[waldron] 21/3/2007 19:06

Kesa: what the analysts say


Wednesday March 21, 2007
Guardian Unlimited


Andrew Wade of Seymour Pierce said Kesa's increased profits for 2006 were due to a strong Christmas trading, with like-for-like sales up 7.8% over the year. He warned that its rollout of mezzanine floors at some Comet stores, which has boosted sales, will increase the company's capital expenditure.


"While this provides a significant sales uplift (around 50%!) at no increased rental cost in the short term, there is a bottom line cost of £300k per store."


He expects to cut his pre-tax profit forecast for 2008 to £165m, from an earlier estimate of £172m.


"Trading outlook is slowing, the flat-pane television cycle is maturing and the impact of the console cycle is mixed, but consoles, games and computers should drive sales for the year."





Richard Edwards of Citigroup predicted that Kesa's sales would only grow modestly this year, but maintained a buy recommendation on the stock.


"Kesa indicated that like-for-like sales are still positive but not at the same level as seen in Q4. We are expecting a group like-for-like sales increase of 3% in 2007/08."





Freddie George of Evolution Securities also kept a buy recommendation.


"Pre-tax profits of £166m came in at the low end of the consensus range, which varied from £163m to £171m. Management however, reassuringly stated that they are seeing the same sales trends continuing over the next year although at a lesser rate and are comfortable with consensus earnings estimates for 2007/8. We are unlikely to change our forecasts but will be upgrading our dividend projections. We are re-iterating our Buy recommendation with a price target of 400p per share."

[waldron] 21/3/2007 18:45

andrewlewis,

trust you are enjoying the excitement.

400p plus not bad eh.

why do people ignore re: your question.


andrewlewis - 19 Jan'07 - 20:22 - 259 of 264


waldron

Why is everyone avoiding Kesa. It is certainly performing well with takeover possibilitie.

This thread needs some rejuvenation.


andrew

no one is avoiding Kesa if you look at the volumes and share price movements.

Certain people don't find Kesa and other mature companys interesting because
it is difficult and in most not possible to borrow shares to enable
shorting. Volumes are high and shares are no doubt held by institutions
so share price cannot be easily manipulated by trades unless in vast amounts.

In other words this is not a BB traders share therefore no BB Posters as
it is not a small company.

i no longer own Kingfisher or its former co.s

good luck with your investments

Waldron de la GrupoGuitarlumber.

[maywillow] 21/3/2007 18:25

please feel free to start another thread, should you so wish.

[maywillow] 21/3/2007 18:24

Kesa warns of growth slow down Published: 11:22 Wednesday 21 March 2007
By Douglas Bence, Companies Correspondent

Kesa Electrical, Europe's third largest electrical retail group which includes Comet in the UK, is warning of a sales slow down in 2007.

Thanks to digital technology, flat screen television sales ahead of the World Cup and a return to growth for white goods, turnover in the year to 31 January increased 9.8% to £4.5 billion, up 7.8% from the previous £4.1 billion on a like-for-like basis.

'For 2007 we expect the same sales trends to continue, but not at the same rate as last year,' warned chief executive Jean-Noel Labroue. He said it was difficult to estimate how great the drop would be, but he said growth could fall to 3%.

To offset the negative mix effect he predicts on margins, he says the group will focus on cost control and productivity.

Group retail profit was £180.9 million, 9.7% higher than the previous year. Adjusted profit before interest charges and tax, which also excludes joint ventures and associates, de-merger award plan charges and the proceeds from property and equipment sales, rose 13.6% to £168.5 million.

This last figure was marginally short of the consensus £169 million. Broker Bridgewell, which forecast £170 million in profit before tax, remains neutral on Kesa shares which fell 5.25p before recovering to 349.25p, down a penny.

'The group continues to benefit from strong demand conditions in electrical driven by flat panel TV. However, there are dangers in the current year as the group faces daunting comparatives particularly in the period that anniversaries the pre-World Cup boom last year,' Bridgewell said in a note.

'We see serious long-run threats to profitability from the rapid migration to the web in the electricals market'.

Labroue says all the electrical businesses gained market share, that is Comet with 249 stores in the UK, Darty with 206 outlets in France along with BUT, which also sells furniture, with 106.

'Product and margin mix management and productivity gains helped us make good
progress in retail profit,' he said.

Total revenue growth at Darty was up 9% in local currency, 7.8% like-for-like. Comet's sales rose 9.6%, an increase of 8.8% like-for-like. BUT's total revenue grew 3.5% in local currency; total store revenue increased 3.9%, up 1.2% like-for-like.

Total revenue at the other businesses - BCC, Vanden Borre, Datart, Darty Italy
Darty Switzerland and Darty Turkey - grew 25.9% in local currency, 10.6% like-for-like.

Retail profit in the established businesses – BCC, Vanden Borre and Datart – increased 97.6% to €16.2 million. Start-up losses for Darty Italy, Darty Switzerland and Darty Turkey were €19.7 million.

Darty made £114.2 million (Bridgewell estimated £112 million) Comet £46.1 million (Bridgewell £51 million) and But £36.1 million (Bridgewell £34 million).

Bridgewell says the shortfall at Comet suggests that the business only made modest profit progress in the second half despite the high single-digit like-for-like growth.

A major plus point from the figures was the larger than expected £307.9 million of cash generated by the group which helped bring the net debt down from £166.3 million to £75.4 million.

Labroue says this gives the group confidence to accelerate its investments, notably Darty's new services, Comet's trading mezzanine floor development programme and the three new businesses in Italy, Switzerland and Turkey.

The mezzanine developments are expected to slice £3.25 million from Comet's profits in the current year, while the roll-out in France of Darcy Box will impact profits by a similar amount.

'While this will impact this year's earnings growth and cash flow, it will secure the future success of the group,' said Labroue.

Evolution Securities is still a buyer of Kesa as is Deutsche Bank which thinks the biggest risks to its recommendation is an acceleration of flat screen TV price deflation or a major downturn in the French consumer market.

[grupo guitarlumber] 21/3/2007 18:16

KESA Electricals "buy"

Wednesday, March 21, 2007 6:41:40 AM ET
Panmure Gordon & Co

LONDON, March 21 (newratings.com) - Analysts at Panmure Gordon maintain their "buy" rating on KESA Electricals Plc (KE4.ETR). The target price is set to 400p.

In a research note published this morning, the analysts mention that the company has posted its full-year pretax profits short of the estimates and the consensus. The trends in KESA Electricals' markets continue to be favourable, the analysts add. According to Panmure Gordon, KESA Electricals has less susceptibility to any regulatory action on the UK service contracts than DSGI.

[grupo guitarlumber] 21/3/2007 18:14

Kesa Electricals FY profits rise 15.4%

Wednesday, March 21, 2007 8:39:59 AM ET
newratings.com

LONDON, March 21 (newratings.com) – Electrical goods retailer Kesa Electricals Plc (KE4.ETR) Wednesday reported a 15.4% increase in its full year pre-tax profits, driven by continued demand for flat screen televisions and laptops.

Kesa Electricals, which trades under the Comet brand in the UK, reported full year pre-tax profits of £165.4 million. The company's annual revenues increased 9.8% to £4.5 billion due to a 7.8% increase in like-for-like sales. Kesa Electricals' retail profits increased 9.7% to £180.9 million, from £164.9 million posted in the previous year.

The company, which also operates the Darty retail chain in France, expects the robust sales trends to continue in the current year, albeit at a slower pace. The company said that it plans to continue its focus on cost control and productivity. Kesa Electricals has proposed a final dividend of 10.05p, taking the total dividend for the year to 13.3p per share, an increase of 9.9%.Kesa Electricals also announced plans to accelerate investments in the development of its new and existing businesses. The company had last year rejected a 325p per share cash bid proposal from an unidentified private equity firm.

[andrewlewis] 21/3/2007 18:03

waldron are you still there? What a brilliant result and excellent chance to be taken over. Panmure Gordon recommend they are worth £4.00. What are your views.

[andrewlewis] 19/1/2007 20:22

waldron

Why is everyone avoiding Kesa. It is certainly performing well with takeover possibilitie.

This thread needs some rejuvenation.

[waldron] 10/1/2007 20:10

And Kesa Electricals took on 5 pence at 354-1/2 after being upgraded to 'buy' from 'neutral' by UBS with an increased target price of 400 pence, up from 370.

[andrewlewis] 10/1/2007 18:56

Anybody notice how Kesa is really moving on good volume.

[andrewlewis] 06/1/2007 19:19

ariane

Everyone is selling them but people go into Comet for a variety of electrical and white goods and they take away the old set. Watch out for the takeover in 2007 estimate £4.25+. What do you think?

[ariane] 03/1/2007 16:47

Do be careful. M&S are also selling flat tv's now.