Kesa dividend is halved ahead of name change

By GARETH MACKIE
Published on 21/06/2012 00:00

Electrical goods retailer Kesa, the former owner of the Comet chain in the UK, is to halve its dividend after reporting a 42 per cent drop in full-year profits.

The group will also change its name to Darty next month to reflect the importance of its French business, which accounts for more than half its total sales.

Kesa, which sold Comet for a token £2 to retail turnaround firm OpCapita in February, said pre-tax profits for the year to 30 April dropped to €59 million (£47.6m), from €102.4m the previous year. It blamed the fall on “exceptionally difficult” trading conditions across Europe.

Group revenues dipped two per cent to €4 billion and the board proposed a final dividend of 1.25 cents per share, bringing the total dividend to 3.5 cents, down from 7 cents a year earlier.

Chairman David Newlands, who is being replaced by Alan Parker in September, said the group hoped to reduce losses at its Darty chains in Italy and Spain by closing under-performing stores.