Half-year results from French electricals retailer Darty (DRTY) are inevitably overshadowed by the prospect of an all-share takeover by retail giant Fnac. The two companies agreed terms in November, roughly a month after the close of the financial period, but chief executive Régis Schultz insists it remains "business as usual" until the transaction formally completes. That should be at some point next summer, although it will depend when and if competition regulators give the green light.
Darty shareholders can expect 116p a share under the current terms, which equates to a 47 per cent premium to the share price as at 29 September 2015, prior to news of negotiations. Darty shareholders will own around 46 per cent of the enlarged Fnac entity.
Until the deal goes through, Mr Schultz is focused on the group's latest growth plan - 'Confiance 4.0' - which follows the 'Nouvelle Confiance' plan embarked upon three years ago. Priorities include strengthening the group's cash position, growing the multi-channel offer and improving customer service.
The new plan has been in motion since June and appears to be reaping rewards. French revenue grew 2.9 per cent on a like-for-like basis in the first half - enough to offset a 5.1 per cent decline in Belgium and the Netherlands. Losses in the latter country mounted following disruption as a result of a new IT system.
| DARTY (DRTY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 96p | MARKET VALUE: | £508m | |
| TOUCH: | 95.8-96.5p | 12-MONTH HIGH: | 112p | LOW: 62p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 43 | |
| NET ASSET VALUE: | * | NET DEBT: | €191m | |
| Half-yearto 31 Oct | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2014 | 1.6 | 7.0 | 0.2 | 0.9 |
| 2015 | 1.7 | 9.2 | 0.4 | 0.9 |
| % change | +1 | +31 | +100 | - |
Ex-div: 3 Mar Payment: 30 Mar *Negative shareholders' funds £1=€1.39 | ||||
