Kesa Electricals Share Discussion Threads

[maywillow] 25/11/2004 12:55

LONDON (AFX) - Third-quarter data from Kesa Electricals PLC, the
Anglo-French retail group spun off from Kingfisher PLC last year, has confirmed
that 'big-ticket' expenditure on the UK high street is under pressure.
In the three months to Oct 31 the group's 249-outlet Comet chain, which
sells everything electrical from fridges to flat-screen TVs, delivered
like-for-like sales growth of 3.3 pct, down from 4.6 pct in the first half to
July 31.
Kesa noted that consumer spending slowed down throughout the latter half of
the third-quarter period.
Its update came a week after rival Dixons Group PLC warned sales growth had
slowed in the early weeks of November and said it was cautious about Christmas
trading.
Dixons also noted a recent outbreak of UK price competition in response to
weakening big-ticket demand, pointing the finger at GUS PLC's Argos.
Across the English Channel sales growth also slowed at Kesa's Darty chain.
Like-for-like growth was up 1.1 pct, down from 4.6 pct in the first half.
The retailer blamed the shortfall on strong heatwave-driven comparatives
with August last year and subdued sales in September due to a slower 'Back to
School' trading period. But it noted an improving sales trend throughout
October.
Kesa drew encouragement from the third-quarter performance of BUT, its other
French chain. Although like-for-like sales were down 0.5 pct this represented an
improvement from down 2.8 pct in the first six months.
Like-for-like sales for Kesa's 'other' businesses -- Vanden Borre, BCC and
Datart, grew 4.1 pct in the third quarter.
The group's total sales increased 2.8 pct to 949.7 mln stg. On a local
currency basis they were up 5.2 pct.
"Given the strength of last year's comparatives, the group's sales in this
quarter were solid, particularly in the newer technologies such as digital
cameras, flat-screen TVs and multi-media," maintained chief executive Jean-Noel
Labroue.
"Although the important peak trading period of December and January is still
ahead of us, we remain confident that overall the group is well placed to
deliver satisfactory results at the year end."
However, brokers edged down profit forecasts. Evolution Securities cut its
year to end-April 2005 profit before taxation and exceptional items forecast
from 194 mln stg to 190 mln stg, while Merrill Lynch reduced its forecast for
the following year by 2.5 mln stg to 215 mln stg.
The retailer will publish its next trading update on Jan 20.
At 12.07 pm shares in the retailer, which debuted at 192 pence in July 2003,
were up 4 pence at 276, giving a market capitalisation of 1.46 bln stg.
[e-mail]
jdd/ak

[waldron] 18/11/2004 17:15

4:01pm (UK)
Christmas Reprieve for Extended Warranties Reform

By Graham Hiscott, PA Consumer Affairs Correspondent


Retailers have convinced ministers to delay reform of the extended warranties market on electrical goods until after Christmas.

The Department of Trade and Industry (DTI) has also agreed to drop clauses relating to the sale of policies following lobbying by the industry.

In July this year the DTI published proposals to shake-up the £900 million a year market for extended warranties on households electrical items.

Consumer minister Gerry Sutcliffe said at the time: "Recognising the importance of the Christmas period for warranty sales, we intend to introduce the necessary changes by the end of November."

The DTI has now agreed to postpone implementing the reforms until next March following consultation with retailers.

The new regulations will force shops to show the price of the extended warranty alongside the electrical goods, in store and in adverts.

Consumers will be given information about their statutory rights and cancellation rights and a 45-day cooling-off period in which to cancel.

In addition, those who do not buy the policy immediately will have up to 30 days to take it up, including any discounts.

But the DTI has agreed to drop a clause that required retailers to give the price of the extended warranty "similar prominence" to the price of the electrical product.

Businesses argued that displaying the two prices same size could confuse consumers and that prices should be "clearly legible" instead.

Retailers will do no longer have to give a leaflet to help guide customers before buying a warranty either.

The DTI said many of the changes it proposed had already been adopted by major retail chains.

A consultation on the new changes will last until December 20.

Mr Sutcliffe said today: "Our proposals have been largely welcomed by businesses but there was concern about the speed of making these reforms before Christmas.

"While it is important to protect consumers, we have no desire to place unnecessary burdens on retailers, especially as many already have the proposed changes in place, which is why we have decided to delay implementation until next year."

But Tim Young, from the consumer organisation Which?, said: "Retailers have been ripping off their customers through overpriced warranties for far too long already.

"The DTI's decision to delay legislation until after the busiest shopping period of the year means it's the retailers who'll be celebrating this Christmas – yet again.

"Patricia Hewitt announced these rules before last Christmas, so the idea that implementing them a year later will place too much of a burden on retailers is nonsense.

"The DTI shouldn't be so tardy and the industry shouldn't be so cynical."

Warranty Direct, which sells warranties direct, said today's changes "plunged consumers into uncertainty and confusion".

Duncan McClure Fisher, managing director of Warranty Direct, said: "This consultation once again dilutes the protection the consumer was originally offered."

A report from the Competition Commission in December last year found high street chains guilty of charging excessive prices for extended warranties on household electrical products.

It said policies were up to a third more expensive because the current market favours the retailer.

Trade and Industry Secretary Patricia Hewitt backed the Competition Commission's proposals.

The report found 80% of policies taken out at the point of sale were supplied by five retailers in the UK – the Dixons Group (including Dixons, Currys, PC World and The Link), Comet, Powerhouse, Littlewoods and Argos.

The three electrical retailers made typical profit margins of between 8.1% and 9.1% on most products yet for warranties the figure was between 28.3% and 33.6%, it said.

The investigation into extended warranty was started by the Office of Fair Trading in October 2001 and referred to the Competition Commission in July 2002.

[grupo guitarlumber] 17/11/2004 12:41

LONDON (AFX) - Dixons Group PLC added to gloom on the high street with news
that sales growth over the last couple of weeks has slowed and cautious comments
on the outlook for 'big ticket' expenditure in the run-up to the crucial
Christmas period.
The downbeat assessment on second half trading offset a solid set of first
half sales figures, sending shares in Dixons 6 pct lower.
It adds to emerging signs of slowing consumer spending in the UK -- a gloomy
October report from the British Retail Consortium, anaemic recent weekly data
from John Lewis' department stores and yesterday's profit warning from fashion
retailer French Connection PLC and caution from luxury brand Burberry Group PLC.
Shares in other general retailers exposed to UK electricals and bigger
ticket durables were also under pressure -- GUS PLC, which owns Argos,
Kingfisher PLC, which owns B&Q, and Kesa PLC, which owns Comet, were all
sporting losses.
"Business performance in the year to date has been satisfactory," said
Dixons chief executive John Clare.
"However, the rate of sales growth has slowed in recent weeks and we are
cautious about the outlook for consumer expenditure on high-ticket discretionary
purchases across the balance of the year, particularly in the UK."
Clare noted that as always, Dixons' full year (to end-April 2005)
performance will be significantly affected by trading over the important
Christmas trading period.
"We are confident in our plans for Christmas and we are prepared for an
aggressive trading environment," he said.
Dixons' total group retail sales rose 9 pct in the 28 weeks to Nov 13 and
grew by 5 pct on a like-for-like basis, which strips out new space.
Gross margins across the group were 0.7 percentage points lower than last
year, having been down 0.4 points after 18 weeks -- implying a 120 basis points
decline in margins over the last 10 weeks.
Dixons attributed the margin fall to a higher level of business to business
sales, lower credit commissions, and product mix changes.
Analysts said Clare was "very gloomy" on the conference call about pricing
pressure in the UK and gross margin prospects.
They said the CEO pointed to a recent outbreak of UK price competition in
response to weakening big-ticket demand.
UK sales were up 6 pct on a like-for-like basis. Within this, like-for-like
sales were up 9 pct at Currys, 3 pct at PC World, 3 pct at the Dixons chain and
8 pct at The Link.
Analysts noted that UK like-for-like sales had been up 7 pct after 18 weeks
(reported Sept 8), implying sales growth of around 4 pct in the last 10 weeks.
They reckon like-for-like sales at PC World, the biggest ticket retailer in
the group, were flat over the last 10 weeks.
They pointed out the decline in growth has come despite a 10 pct increase in
advertising expenditure and noted that comparatives get much tougher from here
with like-for-like sales up 4 pct in the second half last year.
International sales in sterling, which included eight weeks of trading from
Greek retailer Kotsovolos, grew 14 pct in the first half, and 1 pct on a
like-for-like basis.
In local currencies, sales grew 19 pct. Like-for-like sales were up 2 pct at
Elkjop (Scandinavia), down 2 pct at UniEuro (Italy), and up 6 pct in Ireland.
Across the group, costs as a percentage of sales improved 0.5 pct.
"Management's cautious commentary confirms the slowdown in sales momentum
highlighted elsewhere," noted Citigroup Smith Barney. "As a result, downside
risks to forecasts now look to be a serious issue for the shares."
The US broker downgraded its recommendation to 'hold' from 'buy' and cut its
target price to 170 pence from 190 pence.
It reckons brokers' year to end-April 2005 pretax profit consensus will fall
by around 15 mln stg to about 345 mln stg, versus 332 mln stg last year.
Meanwhile Panmure Gordon downgraded its stance to 'sell' from 'hold',
Teather & Greenwood shifted to 'hold' from 'buy' and Evolution Securities cut to
'weak add' from 'buy'.
At 12.00 midday Dixons shares were down 9-1/4 pence at 157-1/2 pence,
valuing the group at 3.03 bln stg.
[e-mail]
jdd/ra

[waldron] 07/11/2004 16:10

its always tough at the top

[billdaly] 07/11/2004 14:18

I can see this reaching new highs soon - could be lonely up there by myself.

RT

[billdaly] 02/11/2004 23:17

Moving up nicely today - why so little interest in this stock?

RT

[rex taurus] 01/11/2004 15:53

3.1m O buy - £8.5m trade

what is going on?

The start of an MBO???

[ariane] 26/10/2004 08:24

Comet owner leaves bid trail

Neil Hume
Tuesday October 26, 2004
The Guardian

Could there be something corporate on the cards at Kesa, Europe's number three electrical retailer? That is what City professionals were wondering yesterday as the owner of Comet chalked up its fifth consecutive session of gains.
Since hitting an eight-month low of 262p last Tuesday, Kesa has risen 4.5% - a move which has fuelled speculation that the company, spun out of Kingfisher in July 2003, might soon be on the receiving end of a takeover approach.

There seems to be a consensus among brokers that Kesa is cheap. Having underperformed the market by 13% over the past three months, Kesa trades on a prospective price to earnings ratio of just 10 - a 20% discount to its sector.

Indeed, last week Swiss investment bank UBS, the company's joint broker, upgraded its rating on Kesa to buy, citing valuation. UBS also noted that Kesa, which makes most of its money in France through its BUT and Darty chains, could be a takeover target for a private equity firm.

Noting that Kesa's chief executive, Jean-Noel Labroue, was involved in the buyout of BUT in the late 1980s, UBS said the company's management team - with venture capital backing - could take advantage of Kesa's poor valuation and strong cashflow to launch an offer.

Bucking the weak market trend, Kesa shares closed 1.75p higher at 273.75p.

[waldron] 22/10/2004 07:07

Q3 Trading Statement 2004/5 25 November

[waldron] 22/10/2004 07:06

Market Position
Stores
m sq of selling space
Employees

Darty No. 1 in France
200
250,800
11,236

Comet No. 2 in the UK
250
243,300
10,637

BUT No. 2 in France for furniture
102*
315,800*
3,981*

BCC Leading player in Netherlands
34
41,000
930

VandenBorre No. 1 in Belgium
51
43,200
712

Datart No. 1 in the Czech Republic/Slovakia
22
25,000
816












* Excluding franchises

As at 31st January 2004

[waldron] 22/10/2004 07:03

LONDON, October 21 (newratings.com) - Analyst Andrew Hughes of UBS upgrades Kesa (KE4.ETR) from "neutral" to "buy." The target price is set to 310p.

[grupo guitarlumber] 22/7/2004 08:13

LONDON (AFX) - Kesa Electricals plc said it expects results for the first
half to be ahead of last year despite sterling strength and extra demerger
costs.
Kesa said UK sales in the 24 weeks to July 17 were up 7.8 pct and up 5.5 pct
on a like-for-like basis.
Darty sales in the same period were up 6.7 pct to 911.5 mln eur, up 4.9 pct
like-for-like. Sales from BUT were up 6.9 pct to 316.4 mln eur.
The group said growth has principally been in digital products, flat-screen
TVs and multimedia, in contrast to the decline in traditional analogue products.
BUT is estimated to have increased its share of the declining furniture
market, with total store turnover in local currency growing by 2.3 pct, although
down 3.2 pct on a like for like basis.
Turnover at BCC, Vanden Borre and Datart grew by 15.3 pct in local currency
and 9.9 pct on a like for like basis.
Chief executive Jean-Noel Labroue said that, to date, turnover in the second
quarter has confirmed the encouraging start to the year.
However, he said the on-going weakness of the French furniture market has
meant that the performance of the BUT stores continues to be disappointing, and
the group is focussed on mitigating this trend during the second half.
Despite the strengthening of sterling against the euro and the impact of the
additional central costs arising from the demerger, the group anticipates that
overall it will deliver half-year results ahead of last year.
[e-mail]
slm/

[waldron] 08/7/2004 07:32

RNS Number:6222A
Dixons Group PLC
08 July 2004


PR 41/2004

For release after 07.00 hours BST

8 July 2004



DIXONS GROUP AGREES TO ACQUIRE

CONTROLLING STAKE IN P KOTSOVOLOS SA



Dixons Group plc, Europe's leading electrical retailer, announces today that it
has agreed to acquire 38.7% of the issued share capital of P Kotsovolos SA
("Kotsovolos"), the leading electrical retailer in Greece, for cash
consideration of Euro53.7 million. This equates to Euro6.50 per share, which
represents a 28% premium over the last month's average trading price. This
purchase (the "Acquisition") will take Dixons Group's stake in Kotsovolos from
13.6% of the issued share capital to a controlling 52.3% stake.



Kotsovolos trades in Greece under the Kotsovolos, Radio Athinai and One Way
brands. The acquisition of Kotsovolos adds a complementary business with growth
potential to the Dixons Group.



Dixons Group will purchase these shares from Fourlis Holding SA and Fourlis
Trade SA (together "Fourlis") and Paravalos Marinos Group SA. For a transitional
period, Fourlis will retain a 20% stake in Kotsovolos, which (i) Dixons Group
will have the right to acquire after five years, and (ii) Fourlis will have the
right to sell to Dixons Group only in two equal tranches after two and four
years respectively.



The Acquisition is subject to certain conditions, including clearance by the
relevant competition authorities. Following completion of the Acquisition,
Dixons Group will be required to make a mandatory public tender for the
remaining shares in Kotsovolos at Euro6.50 per share in cash (the "Offer"), in
accordance with Greek regulations. If the offer is accepted in full, the
aggregate consideration of the Acquisition and the Offer will be Euro92.2 million.



As reported in the most recent audited consolidated financial statements for the
year ended 31 December 2003, prepared under Greek generally accepted accounting
principles, Kotsovolos' consolidated sales were Euro367.2 million and profit before
tax was Euro3.4 million. Net assets at 31 December 2003 were Euro88.9 million.

- Ends -

More information:



Kevin O'Byrne Retail Finance Director 01727 203201

Hamish Thompson Head of Press and PR 01727 203195

Jeremy Darroch Group Finance Director 01727 203201



About Dixons Group plc

Dixons Group is Europe's largest specialist retailer of consumer electronics. It
has more than 1,350 stores across the UK, the Republic of Ireland, the Nordic
countries, France, Spain, Italy, the Czech Republic, and Hungary. It trades as
Dixons, Currys, PC World and The Link in the UK and Ireland; Elkjop in the
Nordic countries; PC City in Spain, France, Italy and Sweden, and Electro World
in the Czech Republic and Hungary. Business to business operations include PC
World Business, Genesis Communications and Micro Warehouse. The Group
specialises in the sale of high technology consumer electronics, personal
computers, domestic appliances, photographic equipment, communication products
and related financial and after sales services.





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

END
ACQKGGGNVRKGDZG


Dixons GRP(DXNS)

[grupo guitarlumber] 26/5/2004 10:57

LONDON (AFX) - Kesa Electricals PLC, the Anglo-French retail group spun-off
from Kingfisher PLC last year, said it has made an encouraging start to the
year, driven by accelerating sales of new technology products.
For the three months to April 30 the group, which operates Darty and BUT in
France and Comet in the UK, made turnover of 825.2 mln stg, a rise of 5.2 pct
against weak comparatives in the same period last year.
On a local currency basis the increase in turnover was 7.4 pct, reflecting
the negative impact of translation.
"Taken as a whole, the group has performed in line with our expectations,"
said chief executive Jean-Noel Labroue.
Darty saw turnover grow 6.8 pct in local currency or 4.3 pct on a
like-for-like basis -- a performance in line with analysts' expectations and
which reflected continued growth in sales of multimedia and digital products.
In the UK, Comet's turnover increased by 6.5 pct or 4.4 pct like-for-like --
in line with analysts' hopes. The business continued to benefit from its ongoing
repositioning of products and ranges.
The one area of disappointment in Kesa's statement was the performance of
BUT, the home furniture chain.
Total turnover at BUT grew 8.4 pct in local currency, mainly due to
increases in its direct supply business. Its total store turnover grew by 3.5
pct but was down 3.0 pct on a like-for-like basis compared to analyst
expectations of a positive like-for-like outcome.
Better performances at Kesa's other businesses, BCC, Vanden Borre, and
Datart, saw combined turnover grow 12.5 pct in local currency and 7.4 pct
like-for-like.
"It has been an encouraging start to the year for sales for the group as a
whole, despite a disappointing performance at BUT," said Labroue.
"All our businesses have seen an accelerating rise in sales of the new
technologies, and as before we are continuing our programme of cost control to
reduce the resulting mix effect."
Most analysts left year to end-Jan 2005 profit forecasts unchanged.
"On balance we believe these figures are consistent with our full year
like-for-like (sales growth) estimates of 2 pct for Darty and Comet given the
tougher second half comparatives," noted Citigroup Smith Barney.
It is forecasting a profit before taxation and exceptional items of 193 mln
stg, giving earnings per share of 22.9 pence, up from 179.3 mln stg last time.
At 9.49 am Kesa shares, which debuted at 192 pence last July, were up 1-3/4
at 280-1/2 pence, valuing the group at 1.48 bln stg.
[e-mail]
jdd/slm/

[grupo guitarlumber] 26/5/2004 10:05

Updating to add more details)
LONDON (AFX) - Kesa Electricals PLC, the Anglo-French retail group, reported
a 5.2 pct rise in first quarter turnover, driven by sales of new technology
products.
For the three months to April 30, 2004, the electrical goods and furniture
retailer's turnover was 825.2 mln stg -- an increase of 5.2 pct or 7.4 pct on a
local currency basis.
In France, Kesa's Darty electricals chain saw turnover grow 6.8 pct in local
currency or 4.3 pct on a like-for-like basis -- a performance in line with
analysts' expectations and which was driven by continued growth in multimedia
and digital products.
In the UK, Comet's turnover increased by 6.5 pct or 4.4 pct like-for-like --
in line with analysts' hopes. The business continued to benefit from its
strategic repositioning.
Total turnover at BUT, the French home furniture chain, grew 8.4 pct in
local currency, mainly due to increases in its direct supply business. Total
store turnover grew by 3.5 pct but was down 3.0 pct on a like-for-like basis --
disappointing some analysts who were expecting a positive like-for-like.
Better performances at Kesa's other businesses, BCC, Vanden Borre, and
Datart, saw combined turnover grow 12.5 pct in local currency and 7.4 pct
like-for-like.
"It has been an encouraging start to the year for sales for the group as a
whole, despite a disappointing performance at BUT," said chief executive
Jean-Noel Labroue.
"All our businesses have seen an accelerating rise in sales of the new
technologies, and as before, we are continuing our programme of cost control to
reduce the resulting mix effect. Taken as a whole, the group has performed in
line with our expectations."
Prior to today's statement, analysts were forecasting a year to end-January
2005 profit before tax and exceptional items of around 195-198.5 mln stg versus
179.3 mln stg the last time.
At 8.24 am, Kesa shares, which demerged from Kingfisher PLC at 192 pence
last July, were up 2-1/2 pence at 280-1/2 pence, valuing the group at 1.49 bln
stg.
jdd/ra

[ariane] 04/4/2004 12:37

Dixons Group considering a Europe-wide expansion

source: Sunday Express via Citywire.

[waldron] 31/3/2004 19:46

LONDON, March 31 (New Ratings) - Analyst Philip Mitchell of JP Morgan maintains his "neutral" rating on Kesa (KESA.L). The fair value is set to 290p

[maywillow] 31/3/2004 12:13

LONDON (AFX) - Kesa Electricals PLC, the Anglo-French retail group which
demerged from Kingfisher PLC last July, reported full year profits which beat
market expectations but warned prospects for its core markets remain uncertain.
Pretax profit before goodwill and exceptionals came in at 179.3 mln stg,
ahead of analysts' forecasts of 175 mln stg, boosted by a strong performance
from the group's Comet chain.
Group retail profit (operating profit including share of joint ventures but
before exceptionals and goodwill) was 202.7 mln stg, on sales of 3.77 bln stg,
up 10.1 pct..
Excluding the increased central costs resulting from the demerger, group
retail profit grew by 8.2 pct driven at French chain Darty which showed 1.6pct
growth and Comet which achieved 9.5 pct growth.
Chairman David Newlands said the group had achieved "satisfactory results"
in a year which saw difficult market conditions in all its core markets. In the
current year, he said sales for the first two months are in line with the trends
seen at the end of the previous year.
However, he added that "prospects for a sustained economic recovery in our
core markets remain uncertain".
Kesa is paying a final dividend of 7.5 pence per share, making a full year
payment of 10 pence, in line with forecasts.
At 11.10 am, Kesa shares were trading at 267 3/4 pence, up from 5.
JP Morgan believes the results show that cost-cutting remains on track, and
extended warranty penetration has stabilised. However, the broker keeps a
'neutral' recommendation and 290 pence price target.
Merrill Lynch also has a 'neutral' stance.
"Until we see top line upgrades in France in particular, we believe
investors will continue to question the limitations of Darty's margin
maximisation model in what appears to be an increasingly deflationary market,"
said Merrill Lynch analyst Aymeric Poulain.
mps/rn

[maywillow] 31/3/2004 07:39

LONDON (AFX) - Kesa Electricals PLC year to January 31 2004
Sales - 3.77 bln stg vs 3.42 bln
Pretax profit - 178.7 mln stg vs 122.2 mln
Pretax profit before interest - 202.1 mln stg vs 178.7 mln
EPS - 21.4 pence vs 17.3
Final div - 7.5 pence
Total div - 10.0 pence

vjt/

[maywillow] 31/3/2004 07:37

LONDON (AFX) - Kesa Electricals PLC said sales in the first two months of
the current year have been in line with the trends seen in the second half of
last year.
However, it admitted prospects for a sustained economic recovery in its core
markets remain uncertain.
"We will make progress through improving our store portfolios, developing
further value-added services and continuing to focus on generating cash," said
chairman David Newlands.
Group retail profit (operating profit including share of joint ventures but
before exceptionals and goodwill) was 202.7 mln stg, up 4.9 pct on last year,
but down 2.7 pct in constant currency terms. Sales totalled 3.77 bln stg, up
10.1 pct on the previous year or 4 pct in constant currency terms. Earnings per
share were 21.4 pence.
Kesa said the cash generative nature of the business was demonstrated by an
operating cash flow of 296.6 mln stg, compared to 247.4 mln stg for the same
period last year.
The group has benefited from strong growth in sales of digital audio and
visual (cameras, LCD/Plasma televisions, DVD players) and multimedia products,
at the expense of the more traditional analogue ranges, with a resultant
pressure on product margins.
Kesa saidDarty made good progress, growing its overall market share. It
said the ongoing programme to manage business efficiencies led to an improvement
in its costs to turnover ratio, particularly in the second half.
Kesa said Comet's programme of repositioning its product ranges and services
with a tight control on costs led to an increase in profitability, despite a
decline in extended warranty turnover.
It said BUT has mitigated some of the effect of the depressed French
furniture market with increased turnover in its direct supply business and
electrical products. However, the resulting mix effect on gross margins impacted
on profitability.
Kesa said the e-businesses at Darty and Comet continued to grow strongly and
generated profits throughout the year.
The group is paying a final dividend of 7.5 pence, making a full year
payment of 10 pence.
Kesa demerged from Kingfisher PLC last July.
mps/ak

[maywillow] 31/3/2004 07:14

RNS Number:1404X
Kesa Electricals plc
31 March 2004


Preliminary Results for the year ended 31 January 2004

Highlights

* Group turnover increased by 10.1% to #3,771.1 million during the period
(4.0% in constant currency(1)).

*Group retail profit(2) grew by 4.9% to #202.7 million (down 2.7% in
constant currency).

* Excluding the increased central costs resulting from the demerger, Group
retail profit grew by 8.2% (0.4% in constant currency, driven by Darty,
+1.6%, and Comet, +9.5%).

* The second half results compared to the same period last year, including
the increase in central costs, saw Group turnover increase by 11.0% to
#2,187.4 million (4.9% in constant currency), and retailprofit by 10.2% to
#149.9 million (3.1% in constant currency).

* Profit on ordinary activities before interest and taxation, after
goodwill amortisation (#3.6 million) and the loss on disposal of fixed
assets (#2.7 million) and operating exceptional items (#5.7 million) was
#202.1 million, up 13.1%.

* Retail operations generated a strong cashflow of #296.6 million, compared
to #247.4 million for the same period last year, which enabled net debt to
be reduced to #272.0 million.

* Earnings per share were 21.4 pence. The Board recommends a final dividend
of 7.5 pence per share, making a total dividend for the year of 10.0 pence
per share.

1 Constant exchange rate of #1 = Euro 1.44

2 Retail profit equates to operating profit including share of joint ventures
and associates and after central costs but before exceptional items and
goodwill amortisation.

Jean-Noel Labroue, Chief Executive, commented:

"We have achieved satisfactory results in a year which saw difficult market
conditions in all our core markets. Our strategy as a specialist electrical
retailer of driving organic growth together with margin management and strong
cost control has led to market share gains and an improved year-on-year retail
profit in our all important second half. This progress gives me confidence for
the current year".

David Newlands, Chairman, commented:

"In the seven months since the demerger, the management team have donewell in
establishing Kesa Electricals as a leading European electrical retailing group.
I am particularly pleased that the strong cash flow has enabled us to reduce
debt significantly and allowed continued capital expenditure to fuel organic
growth".

"In the current year, turnover for the first two months are in line with the
trends we noted in the second half of last year. Nevertheless, prospects for a
sustained economic recovery in our core markets remain uncertain. We will make
progress through improving our store portfolios, developing further value-added
services and continuing to focus on generating cash".


Enquiries

Press:
Kesa Electricals plc
Annabel Donaldson [phone]
Guy Lavaud [phone]

Finsbury
Alice Macandrew [phone]

Euro RSCG
Laurent Dondey [phone]

Analysts:
Kesa Electricals plc
MartinReavley [phone]
Simon Ward [phone]

There will be a presentation today to analysts and institutions at 10am at UBS,
100 Liverpool Street, London EC2.

This announcement is available on the KESA Electricals website:
www.kesaelectricals.com. A live webcast of the presentation to analysts and
institutions will also be available on the site at 10am, and recorded for access
later in the day.


Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements

GROUP OVERVIEW

These are Kesa Electricals plc's first full-year financial results since the
demerger from Kingfisher plc on 7 July 2003.

Results as reported in sterling

Turnover 2003/04 Turnover 2002/03 Change Retail profit(1) 2003/04 Retail profit 2002/03 Change
#m #m #m #m
Darty 1487.2 1309.7 13.6% 112.3 100.5 11.7%
Comet 1444.4 1406.1 2.7% 47.4 43.3 9.5%
BUT 536.7 452.9 18.5% 53.7 53.4 0.6%
Other* 302.8 255.8 18.4% (0.9) (0.6) -
Central - - - (9.8) (3.3) -
Total 3771.1 3424.5 10.1% 202.7 193.3 4.9%

Euro/# exchange rates of 1.44 (2003/04) and 1.58 (2002/03)
*Includes BCC,New Vanden Borre and Datart. Euro/Czech KR exchange rates of 31.85
(2003/04) and 30.82 (2002/03)

Results as reported in local currency

Turnover 2003/04 Turnover Change Retail profit 2003/04 Retail profit 2002/03 Change
m 2002/03 m m
m
Darty Euro2141.6 Euro2069.3 3.5% Euro161.5 Euro159.1 1.8%
Comet #1444.4 #1406.1 2.7% # 47.4 # 43.3 9.5%
BUT Euro 772.8 Euro715.6 8.0% Euro77.3 Euro84.4 (8.4)%
Other* Euro 435.7 Euro404.9 7.6% Euro(1.3) Euro(0.9) -
Central - - - #(9.8) #(3.3) -
Total - - 4.0% - - (2.7)%

Financial Highlights

Group turnover was #3,771.1 million, up 10.1% on last year (4.0% in constant
currency). Group retail profit(1) was #202.7 million, up 4.9% on last year (down
2.7% in constant currency).

Operating exceptional items before taxation were a positive #5.7 million largely
relating to the refund of the fine imposed on Darty in 2002 (#10.6 million).

After goodwill amortisation (#3.6 million) and the loss on disposal of fixed
assets (#2.7 million), profit on ordinary activities before interest and
taxation was #202.1 million, up 13.1 %.

The net interest charge was #23.4 million, giving profit before tax and after
interest of #178.7 million.

1 Retail profit equates to operating profit including share of joint ventures
and associates and after central costs but before exceptional items and goodwill
amortisation.



The cash generative nature of the business was demonstrated by an operating cash
flow of #296.6 million, compared to #247.4 million for the same period last
year. This was achieved by increased operating profit and improved working
capital management. Net capital expenditure was #79.6 million (#87.8 million for
the previous year), which principally included investment in new stores,
refurbishments and warehousing facilities. Net debt was reduced by #96.0 million
to #272.0 million.

Net assets have grown from #230.5 million to #323.2 million.

Basic and diluted earnings per share were 21.4 pence. The Board recommends a
final dividend of 7.5 pence per share, making a total dividend for the year of
10.0 pence per share, representing 2.1 times earnings cover.

Trading

The Group has benefited from strong growth in turnover of digital audio and
visual (cameras, LCD/Plasma televisions, DVD players) andmultimedia products,
at the expense of the more traditional analogue ranges, with a resultant
pressure on product margins. Turnover of the Group's core white categories
remained stable.

Darty made good progress, growing its overall market share with a good
performance in grey goods and digital products. The on-going programme to manage
business efficiencies led to an improvement in its costs to turnover ratio,
particularly in the second half.

Comet's programme of repositioning its productranges and services with a tight
control on costs led to an increase in profitability, despite a decline in
extended warranty turnover.
BUT has mitigated some of the effect of the depressed French furniture market
with increased turnover in its direct supply business and electrical products.
However, the resulting mix effect on gross margins impacted on profitability.

The e-businesses at Darty and Comet continued to grow strongly and generated
profits throughout the year.

Outlook

Turnover for the first two months of the year are in line with the trends
observed in the second half of last year. Nevertheless, prospects for a
sustained economic recovery in our core markets remain uncertain. In the year
ahead we will make progress through improving our store portfolios, developing
further value-added services and continuing to focus on generating cash.

[maywillow] 31/3/2004 07:14

RNS Number:1404X
Kesa Electricals plc
31 March 2004


Preliminary Results for the year ended 31 January 2004

Highlights

* Group turnover increased by 10.1% to #3,771.1 million during the period
(4.0% in constant currency(1)).

*Group retail profit(2) grew by 4.9% to #202.7 million (down 2.7% in
constant currency).

* Excluding the increased central costs resulting from the demerger, Group
retail profit grew by 8.2% (0.4% in constant currency, driven by Darty,
+1.6%, and Comet, +9.5%).

* The second half results compared to the same period last year, including
the increase in central costs, saw Group turnover increase by 11.0% to
#2,187.4 million (4.9% in constant currency), and retailprofit by 10.2% to
#149.9 million (3.1% in constant currency).

* Profit on ordinary activities before interest and taxation, after
goodwill amortisation (#3.6 million) and the loss on disposal of fixed
assets (#2.7 million) and operating exceptional items (#5.7 million) was
#202.1 million, up 13.1%.

* Retail operations generated a strong cashflow of #296.6 million, compared
to #247.4 million for the same period last year, which enabled net debt to
be reduced to #272.0 million.

* Earnings per share were 21.4 pence. The Board recommends a final dividend
of 7.5 pence per share, making a total dividend for the year of 10.0 pence
per share.

1 Constant exchange rate of #1 = Euro 1.44

2 Retail profit equates to operating profit including share of joint ventures
and associates and after central costs but before exceptional items and
goodwill amortisation.

Jean-Noel Labroue, Chief Executive, commented:

"We have achieved satisfactory results in a year which saw difficult market
conditions in all our core markets. Our strategy as a specialist electrical
retailer of driving organic growth together with margin management and strong
cost control has led to market share gains and an improved year-on-year retail
profit in our all important second half. This progress gives me confidence for
the current year".

David Newlands, Chairman, commented:

"In the seven months since the demerger, the management team have donewell in
establishing Kesa Electricals as a leading European electrical retailing group.
I am particularly pleased that the strong cash flow has enabled us to reduce
debt significantly and allowed continued capital expenditure to fuel organic
growth".

"In the current year, turnover for the first two months are in line with the
trends we noted in the second half of last year. Nevertheless, prospects for a
sustained economic recovery in our core markets remain uncertain. We will make
progress through improving our store portfolios, developing further value-added
services and continuing to focus on generating cash".


Enquiries

Press:
Kesa Electricals plc
Annabel Donaldson [phone]
Guy Lavaud [phone]

Finsbury
Alice Macandrew [phone]

Euro RSCG
Laurent Dondey [phone]

Analysts:
Kesa Electricals plc
MartinReavley [phone]
Simon Ward [phone]

There will be a presentation today to analysts and institutions at 10am at UBS,
100 Liverpool Street, London EC2.

This announcement is available on the KESA Electricals website:
www.kesaelectricals.com. A live webcast of the presentation to analysts and
institutions will also be available on the site at 10am, and recorded for access
later in the day.


Certain statements made in this announcement are forward looking statements.
Such statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from any expected future results in forward looking statements

GROUP OVERVIEW

These are Kesa Electricals plc's first full-year financial results since the
demerger from Kingfisher plc on 7 July 2003.

Results as reported in sterling

Turnover 2003/04 Turnover 2002/03 Change Retail profit(1) 2003/04 Retail profit 2002/03 Change
#m #m #m #m
Darty 1487.2 1309.7 13.6% 112.3 100.5 11.7%
Comet 1444.4 1406.1 2.7% 47.4 43.3 9.5%
BUT 536.7 452.9 18.5% 53.7 53.4 0.6%
Other* 302.8 255.8 18.4% (0.9) (0.6) -
Central - - - (9.8) (3.3) -
Total 3771.1 3424.5 10.1% 202.7 193.3 4.9%

Euro/# exchange rates of 1.44 (2003/04) and 1.58 (2002/03)
*Includes BCC,New Vanden Borre and Datart. Euro/Czech KR exchange rates of 31.85
(2003/04) and 30.82 (2002/03)

Results as reported in local currency

Turnover 2003/04 Turnover Change Retail profit 2003/04 Retail profit 2002/03 Change
m 2002/03 m m
m
Darty Euro2141.6 Euro2069.3 3.5% Euro161.5 Euro159.1 1.8%
Comet #1444.4 #1406.1 2.7% # 47.4 # 43.3 9.5%
BUT Euro 772.8 Euro715.6 8.0% Euro77.3 Euro84.4 (8.4)%
Other* Euro 435.7 Euro404.9 7.6% Euro(1.3) Euro(0.9) -
Central - - - #(9.8) #(3.3) -
Total - - 4.0% - - (2.7)%

Financial Highlights

Group turnover was #3,771.1 million, up 10.1% on last year (4.0% in constant
currency). Group retail profit(1) was #202.7 million, up 4.9% on last year (down
2.7% in constant currency).

Operating exceptional items before taxation were a positive #5.7 million largely
relating to the refund of the fine imposed on Darty in 2002 (#10.6 million).

After goodwill amortisation (#3.6 million) and the loss on disposal of fixed
assets (#2.7 million), profit on ordinary activities before interest and
taxation was #202.1 million, up 13.1 %.

The net interest charge was #23.4 million, giving profit before tax and after
interest of #178.7 million.

1 Retail profit equates to operating profit including share of joint ventures
and associates and after central costs but before exceptional items and goodwill
amortisation.



The cash generative nature of the business was demonstrated by an operating cash
flow of #296.6 million, compared to #247.4 million for the same period last
year. This was achieved by increased operating profit and improved working
capital management. Net capital expenditure was #79.6 million (#87.8 million for
the previous year), which principally included investment in new stores,
refurbishments and warehousing facilities. Net debt was reduced by #96.0 million
to #272.0 million.

Net assets have grown from #230.5 million to #323.2 million.

Basic and diluted earnings per share were 21.4 pence. The Board recommends a
final dividend of 7.5 pence per share, making a total dividend for the year of
10.0 pence per share, representing 2.1 times earnings cover.

Trading

The Group has benefited from strong growth in turnover of digital audio and
visual (cameras, LCD/Plasma televisions, DVD players) andmultimedia products,
at the expense of the more traditional analogue ranges, with a resultant
pressure on product margins. Turnover of the Group's core white categories
remained stable.

Darty made good progress, growing its overall market share with a good
performance in grey goods and digital products. The on-going programme to manage
business efficiencies led to an improvement in its costs to turnover ratio,
particularly in the second half.

Comet's programme of repositioning its productranges and services with a tight
control on costs led to an increase in profitability, despite a decline in
extended warranty turnover.
BUT has mitigated some of the effect of the depressed French furniture market
with increased turnover in its direct supply business and electrical products.
However, the resulting mix effect on gross margins impacted on profitability.

The e-businesses at Darty and Comet continued to grow strongly and generated
profits throughout the year.

Outlook

Turnover for the first two months of the year are in line with the trends
observed in the second half of last year. Nevertheless, prospects for a
sustained economic recovery in our core markets remain uncertain. In the year
ahead we will make progress through improving our store portfolios, developing
further value-added services and continuing to focus on generating cash.