Darty announces Results for the twelve months ended 30 April 2016

LONDON, 2016-Jun-19 — /EPR Retail News/ — A strong performance in revenue, profit and cash

  • Like-for-like sales¹ up 6.1 per cent in France and 3.9 per cent for the Group.
  • Web sales up 13 per cent and market share gains in both France and Belgium.
  • Retail profit up 24 per cent for the Group to €93.1 million (2015: €74.9 million).
  • Over €150 million improvement in cash flow and a €115 million reduction in net debt year on year.

Financial Summary for the twelve months ended 30 April 2016²

  • Group revenue up 4.1 per cent to €3,656.8 million (2015: €3,512.1 million). Group like-for-like sales up 3.9 per cent (2015: down 1.6 per cent).
  • Group retail profit³ up 24 per cent to €93.1 million (2015: €74.9 million). Retail profit up 39 per cent in France including €21.5 million of gross property profits (2015: €6.8 million). Increased losses in the Netherlands following disruption from a new IT system.
  • Exceptional items of €36.5 million (2015: €13.7 million) principally relating to asset write offs and business disruption costs in the Netherlands, restructuring in France and Offer related costs.
  • Adjusted profit before tax4 up 36 per cent to €69.6 million (2015: €51.3 million). Adjusted earnings per share 7.3 cents (2015: 5.8 cents).
  • Profit for the year from continuing operations was €2.1 million (2015: €15.1 million). Total profit for the period was €3.7 million (2015: €13.8 million).
  • Net debt at the end of the period was down €115 million at €108.8 million (€223.8 million as at 30 April 2015) with net cash inflow including discontinued operations of €115.7 million (2015 outflow: €36.5 million).
  • An interim dividend of 0.875 cents per share (2015: 0.875 cents per share) was paid but, given the terms, and current expected timing, of the offer from Groupe Fnac S.A., the company does not currently intend to recommend a final dividend.

Offer from Groupe Fnac S.A. (“Fnac”)

  • On 25 April 2016 Fnac announced a third increased final offer for Darty of 170 pence per Darty share or 1 new Fnac share for every 25 Darty shares held.
  • The offer represents a premium of approximately:
    • 110 per cent to the closing price of 81 pence per Darty share on 29 September 2015 (being the last business day before the date of Fnac’s possible offer announcement);
    • 61 per cent to the value of the original offer of approximately 105 pence per Darty share based on the closing price of €55.6 per Fnac share on 19 November 2015 (being the last business day before the date of the original offer).
  • Phase 2 competition clearance expected July5 .
  • First closing date for acceptances 15 July5 .
  • Offer expected to be declared unconditional on or before 5 August with settlement no later than 14 days thereafter.

Chairman Alan Parker commented “Today we are reporting a strong set of results which represents the culmination of the Nouvelle Confiance strategy the Board set out in 2012 to restore shareholder value. This strategy involved two distinct elements. The first was the early action we took to exit loss making markets in Italy, Spain, Turkey, Czech Republic and Slovakia. The second was to grow our core markets and in particular France where our focus on developing multi-channel, growing the store network through franchises and improving the customer experience 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. 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.”

1 Calculated based on stores that have been open for a full year and the first full four weeks of trading have passed. Stores where retail space has been added or where a complete format redesign has taken place which involves material capital expenditure are excluded. Sales through internet sites, excluding Mistergooddeal.com, are included.

2 Excluding results of discontinued operations except where stated otherwise.

3 Represents total operating profit before the share of joint venture and associates’ interest and taxation, gain on disposal of available for sale investments, legacy UK retirement benefit scheme expenses, exceptional items and amortisation and impairment of acquisition related intangible assets.

4 Represents retail profit less finance costs excluding net interest on pension schemes.

5 Based on the statements contained in Fnac’s offer document published on 31 May 2016.

Please note: There will not be a conference call with analysts and institutions today.

Enquiries

Analysts:

Darty plc
Simon Ward
+44 (0) 20 7269 1400

Media
UK
Finsbury
Jenny Davey
+44 (0) 20 7251 3801

France
Le Public Système
Ségolène de Saint Martin
+33 1 41 34 23 31 / +36 6 16 40 9073

Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, Darty plc does not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.

Download in full Statement of Results for the twelve months ended 30 April 2016

Source: Darty