Kesa electrical retail profits plunge

Kesa Electricals, owner of the Comet chain and Europe's third largest electrical retailer, today reported a 20.4 per cent fall in interim retail profits and warned that the rest of the year could be tough.

Kesa shares fell 5.5 per cent to 261p in early trading while rival DSG International's shares also fell, down 4.6 per cent to 128.6p.

In the six months to July 31 Kesa's retail profit, which strips out gains from joint ventures and associates, fell from £48 million to £38.2 million. Total pre-tax profit declined from £39.3 million to £32.4 million.

Group revenue rose 6.1 per cent to £2 billion, but like-for-like store sales were up only 3.9 per cent.