Comet trading woes laid bare

Revenues slid by more than 18 per cent on a same-store basis in the period to October 31 after Comet bore the brunt of the consumer spending squeeze and comparisons with stronger trading during a World Cup year in 2010.

Kesa Electricals called time on its ownership of Comet last month by selling it to retail turnaround firm OpCapita in a deal that will see Kesa pump £50m into the business and take on the firm’s pension scheme.

The disposal for a token price left its mark on Kesa’s accounts today as the owner of Darty in France reported half-year bottom-line losses of 147.7m euros (£126.5m), compared with a profit of 27.2m euros a year ago.

Chairman David Newlands said: “Market conditions are becoming more challenging across all our markets. I am pleased therefore that we have reached agreement for the disposal of Comet, subject to shareholder approval.”

Excluding the Comet business, Kesa posted retail profits of 16.5m euros (£14.1m) for the six months, down by more than half on a year earlier. As well as a weakening market in France, Kesa has been hit by the economic crisis affecting its stores in Italy and Spain.

A meeting of shareholders to approve the Comet sale is scheduled for December 15 with the disposal expected to complete in early February. Comet operated from 245 stores at the end of October.