Kesa Electricals turns in full year results ahead of market expectations, with plans to expand web-based business and refurbish 40 Comet stores this year.
Comet's parent reported a rise in adjusted profit before tax of 18% to £81.9m, up from £69.5m in 2009, in its statement of results for the 12 months to April 30.

Group revenue was up 3.4% to £5,124m compared with the same period last year. On a like-for-like basis, revenue decreased by 1.5%. Web-generated sales increased by 23%, now representing 9.1% of total product sales for the group, which also owns French electronics chain Darty.

Profits at Comet rose by 14% from £10.1m in 2009 to £11.5m, while revenue declined by 0.6% to £1,650m (a decline of 1.4% on a like-for-like basis).

The company grew market share during the year and made significant gains in white goods. Comet's increase in profit was due to an easing of gross margin pressure through the year and a continuing strong focus on costs, said the report, as well as the merger of two regions and the closure of a regional distribution centre.

Web-generated sales grew by 8.9% and now account for 13.6% of total product sales. The company plans to launch a new web platform ahead of the next peak season, along with a dedicated mobile website.

During the year Comet opened one store and closed three. The retailer is set to refurbish 40 stores during 2010/11, following trials in seven stores last year. Three new stores will be opened this year, with three relocating and nine closing.

Kesa chief executive Thierry Falque-Pierrotin says he is "pleased with the progress we have made this year. He commented: "While we have started the year in line with our expectations, we anticipate our major markets remaining challenging for the rest of the current financial year. We remain focused on delivering our strategic plan - further rolling out our specialist business model and improving profitability across the group. In addition, we will maintain our track record of strong cash regeneration while increasing investment in the businesses."

A key challenge for the company comes from the entry of US chain Best Buy into the UK market this year.

Kesa's results came in ahead of market expectations with its adjusted pbt of £81.9m up on consensus of £76m, driven by an improved performance from Darty, said market analysts at Credit Suisse.

A Credit Suisse spokesperson added: "Within Comet, the division has posted a profit of £11.5m, ahead of our estimate of £7.2m but slightly below consensus expectations of £12m. This is despite aggressive cost containment and significant gains in large white goods."

Rival DSG international, owner of Currys and PC World, today reported a rise in underlying profit of 61% to £90.5m for the full year.