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| Comet owner swings to loss and warns of tough trading | Comet owner swings to loss and warns of tough trading |
| (about 2 hours later) | |
| Anglo-French electrical retailer Kesa, which is selling its Comet business, has reported a half-year loss and said market conditions are more challenging. | |
| The group reported a pre-tax loss of 9.2m euros (£7.9m) for the six months to the end of October, compared to a profit of 32.4m euros a year earlier. | The group reported a pre-tax loss of 9.2m euros (£7.9m) for the six months to the end of October, compared to a profit of 32.4m euros a year earlier. |
| Comet made a pre-tax loss of 25.7m euros over the period. | Comet made a pre-tax loss of 25.7m euros over the period. |
| Last month, Kesa announced plans to sell off Comet for just £2 to a private equity group. | Last month, Kesa announced plans to sell off Comet for just £2 to a private equity group. |
| Sales at the UK electrical retailer slumped 18.6% in the six months period. | Sales at the UK electrical retailer slumped 18.6% in the six months period. |
| Kesa had exceptional charges of 133.6m euros, 109.9m euros of which was due to the sale of Comet. | Kesa had exceptional charges of 133.6m euros, 109.9m euros of which was due to the sale of Comet. |
| Group chairman David Newlands said the sale of Comet would being financial relief. | Group chairman David Newlands said the sale of Comet would being financial relief. |
| "The disposal is expected to improve significantly the group's financial strength," he said. | "The disposal is expected to improve significantly the group's financial strength," he said. |
| Comet's buyer is a group of companies under the name Hailey, advised by retail turnaround specialists OpCapita. | Comet's buyer is a group of companies under the name Hailey, advised by retail turnaround specialists OpCapita. |
| The sale is expected to involve the closure of some of Comet's 250 stores. | The sale is expected to involve the closure of some of Comet's 250 stores. |
| 'Well prepared' | 'Well prepared' |
| Excluding Comet, Kesa's retail arm made a profit of 16.5m euros in the six months to the end of October, compared to a profit of 38.8m euros a year earlier. | Excluding Comet, Kesa's retail arm made a profit of 16.5m euros in the six months to the end of October, compared to a profit of 38.8m euros a year earlier. |
| Chief executive Thierry Falque-Pierrotin said there was some positive news from other European economies: "A strong performance in Belgium and... an improving trend in Turkey, the Netherlands and Spain." | Chief executive Thierry Falque-Pierrotin said there was some positive news from other European economies: "A strong performance in Belgium and... an improving trend in Turkey, the Netherlands and Spain." |
| He said the company was "well prepared" for the peak season and had cut its costs by 7%, the benefits of which would be seen in its next half-year results. | He said the company was "well prepared" for the peak season and had cut its costs by 7%, the benefits of which would be seen in its next half-year results. |
| Although revenues at the group fell 7.9% to 2.57bn euros, gross margins improved due to a strategy of focusing on small domestic appliance sales that are more profitable, the group said. | Although revenues at the group fell 7.9% to 2.57bn euros, gross margins improved due to a strategy of focusing on small domestic appliance sales that are more profitable, the group said. |