Darty full year profits soar ahead of Fnac takeover

16th Jun 2016 07:05

(ShareCast News) - France based electrical retailer Darty said full year group retail profits rose 24% to €93.1m with revenue up 4.1% to €3.6bn and like-for-like sales up 3.9%.Adjusted profits before tax jumped 36% to €69.6m and adjusted earnings per share rose to 7.3 cents from 5.8 in 2015. However pre-tax prodits fell to €28m from €32m due to an impairment charge from loss-making operations in the Netherlands.Darty said in May that its board had recommended shareholders approve a 170p-per-share takeover offer from French retailer Fnac. On that basis it decided not to recommend a final dividend.The London-listed FTSE 250 company saw strong sales in white goods in the first quarter benefitting from hot weather related purchases of refrigeration and air conditioning products.Vision sales were weak at the start of the financial year against a successful World Cup football campaign last year but then showed an improving trend as the replacement market returned supported by the new Ultra HD and OLED television models and in particular in the final quarter by the terrestrial high definition switchover in France.Chairman Alan Parker said the company's Nouvelle Confiance strategy set out in 2012 to restore shareholder value, which saw it exit loss making markets in Italy, Spain, Turkey, Czech Republic and Slovakia and grow core markets, has delivered a "step change in performance including a significant improvement in the cash position and balance sheet"."These actions created the circumstances that led to the interest in Darty from third parties, culminating in the recommended offer from Fnac," said chairman Alan Parker."The share price has more than trebled since commencing our Nouvelle Confiance strategy. We have created a leading European retailer which can deliver attractive synergies for investors, benefits for our customers and development opportunities for our colleagues. Darty is now in a significantly stronger position than before and can look forward to the future with confidence."