Darty 's (DRTY) full-year results, likely to be the company's last as a standalone business, also marked the culmination of the European electronics retailer's three-and-a-half-year 'nouvelle confiance' strategy. The plan - exit loss-making markets, grow the core multichannel offer in France and strengthen the balance sheet - has been a success. For proof, Darty chairman Alan Parker says these self-help measures "created the circumstances" that culminated in Fnac's 170p-a-share final offer in April.
That core market focus was again demonstrated in the 12 months to April. French operations posted a chunky 39 per cent leap in retail profit - defined as total operating profits before all exceptional items and joint venture and associates interests - thanks to the launch of 29 new franchise operations. However, the introduction of a new warehouse IT system for the Netherlands-based BCC stores acquired in February 2015, together with a weaker performance from Vanden Borre in Belgium, caused retail profit margins outside of France to narrow sharply from 2.1 per cent to 0.7 per cent.
Still, the €114m increase in cash generated from operations, to €175m, shows why Fnac was so keen on the business. Aware it would not be paying a final dividend this year, Darty took the opportunity to use the spare cash to reduce net debt by €115m (£91m).
DARTY (DRTY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 169p | MARKET VALUE: | £892m | |
| TOUCH: | 168.5-169p | 12-MONTH HIGH: | 173p | LOW: 63p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 531 | |
| NET ASSET VALUE: | * | NET DEBT: | €109m | |
| Year to 30 Apr | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 3.89 | 38.6 | 3.4 | 3.5 |
| 2013 | 3.56 | 4.0 | 0.7 | 3.5 |
| 2014 | 3.40 | 37.4 | 2.1 | 3.5 |
| 2015 | 3.51 | 32.9 | 2.9 | 3.5 |
| 2016 | 3.66 | 28.4 | 0.4 | nil |
| % change | +4 | -14 | -86 | - |
Ex-div: na Payment: na £1=€1.26. *Negative shareholder equity | ||||
