Kesa Electrical, the owner of Comet in the UK has announced today said Wednesday that it swung to a net loss of £111.4 million in the twelve months to April 30, after taking £150.9 million of exceptional costs. In the 15 months to April 30 2008, Kesa posted a profit of £119.6 million pounds. Revenue declined to £4.95 billion, from £5.36 billion pounds.
The retailer said it had taken steps to reduce costs, especially at Comet where retail profits fell 76.5% to £10.1m.
“Trading conditions across all our markets were difficult throughout the year,” said CEO Thierry Falque-Pierrotin. “In anticipation of another difficult year we will continue with our cost management actions, reduction in the losses in our new businesses and focus on cash generation.”
In the year to the end of April it made a pre-tax loss of £81.8m, compared with a pre-tax profit of £128.8m last year.
The losses were largely due to a write-down of £118.5m in the value of its Spanish business Menaje del Hogars.
Chief executive Thierry Falque-Pierrotin said the company planned to spend less on investment this year.
As the company operates throughout Europe but, reports its results in sterling, the figures are made to look better due to the strength of the Euro.