Darty sees light at the end of the tunnel

That includes integrating Mistergooddeal.com, an online electricals retailer acquired at the end of the last financial year. Trading there was weaker than expected in the first half, amid tough competition from other value players. The business made a €4.8m loss, which partly explains the 43 per cent fall in retail profit to €15.3m in the France division. But heavy promotional activity and lower underlying sales also weighed on the divisional result, as French consumers reined in their spending. Analysts expect Mistergooddeal to make a €9m loss this year, but to break even in the next financial year.

Meanwhile, trading picked up in Belgium and the Netherlands, with lower losses in the latter and cost-cutting boosting divisional profit by €2.2m to €3.3m. Group-wide, like-for-like sales fell 1 per cent, while retail profit sank 38 per cent to €13.9m. The reported pre-tax loss was down to considerably higher borrowing costs following a refinancing in August.

Prior to the results, analysts at UBS were expected pre-tax profit of €69m for the full year, giving EPS of roughly 7p.