The week ahead

Jun 20 2008 By Andrew Mernin

The difficulties facing retailers Kesa Electricals and DSG International will be in the spotlight next week when the pair issue full-year results.

Comet owner and European retailer Kesa Electricals will provide the latest update from the high street on Tuesday when it reports results for a 15 month period to the end of April.

In an update in March, Kesa said strong demand for laptops and flat screen televisions helped electricals chain Comet deliver a slender sales rise.

The chain, which has more than 250 UK stores and comprises just over a third group turnover, achieved a 0.4% improvement in like-for-like sales in the year to January 31. This compared to like for like sales growth of 0.9% during the first six months.

Sales of large white goods such as fridges and freezers were weaker during the second half amid a spending slowdown. And in a sign that prices of bigger ticket goods were coming down to attract more shoppers, retail profits for Comet dipped more than 4%.

Kesa chief executive Jean-Noel Labroue said the group had delivered ``excellent" sales growth but warned of difficult trading conditions ahead.

Philip Dorgan at Panmure Gordon said he was expecting pre-tax profits of £127 million for the 12 months to April 30, excluding those of the French BUT business which was sold earlier this year for 550 million euros (£404m). There were no figures available for a year earlier.

Online and in the Evening Gazette next week:

We report on the lucrative opportunities for Tees Valley businesses in Brazil.

Managing director James Munro on the burning growth at his fireplace empire. 

Online and in The Journal next week:

On Monday: Racehorses, broken bones and a passion for fashion. Lady Renwick tells Karen Dent how she found her niche at Northumberland’s Milkhope Centre.

On Wednesday read an in-depth report on how the credit crunch is holding back the expansion plans of North East businesses.