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Thanks for your post. Don't seem to be able to get much info on Darty. Use to hold KESA shares at one point. Do you know much about this company? I've heard things in France are getting bad and Darty could go a French equivalent of HMV!!!
Darty hit is annual low about this time last year and recovered nicely. I will buy back in if it drops to v low 30's or high 20's. Lets wait and see what happens.
will this one go? Can see acrisis in France. Think 40p is way too high. Darty is one which could crash!!!
Darty: N+1 Singer shifts target price from 66p to 60p and upgrades to buy. Citigroup lowers target price from 40p to 32p keeping a sell recommendation.
UBS has cut its rating for electrical retailer Darty from 'buy' to 'neutral', saying that while its restructuring plan was well received, the company's core market remain subdued. UBS said that the medium-term investment case at Darty "requires an improvement in French profits above and beyond the cost savings we have factored in".
Darty: Exane BNP shifts target price from 50p to 60p and stays with its neutral rating.
A prospective dividend yield of 5 per cent isn't bad, although the payout will barely be covered if Darty's earnings come in around City estimates (see table). Meanwhile the shares, which are on a pre-Christmas run, are rated at 16 times forecast earnings for 2012-13. There are other retailers on similar ratings that, unlike Darty, are reporting decent sales growth - such as Halfords or Next. As the group continues to struggle in weak eurozone markets, expect the shares to have a drab time of it in early 2013. .....But as always dyor and good luck..
But a backdrop of significant management change isn't ideal for driving large-scale plans. After all, chief executive Thierry Falque-Pierrotin will leave Darty on 4 January, with finance director Dominic Platt set to perform that role until a replacement is found. And even when the restructuring is completed, Darty will still be heavily exposed to the grim conditions in France. Past restructuring hasn't yielded ideal results, either. Darty paid private equity group OpCapita £50m in February to take Comet off its hands. While that allowed Darty to exit the dire UK retail electricals market, the final cost of the disposal increased the group's debt by €175m, helping turn a previously comfortable cash pile into a significant debt burden. Darty, like all retailers, is also facing growing competition from the internet as price-conscious consumers surf the web for the best deals. And while Darty says that it is growing its web-generated sales faster than the market, overall progress looks modest, with just 11 per cent of product sales generated online. Argos, in contrast, generates 42 per cent of its sales online.
In response, management plans to focus on the group's core businesses in France, Belgium and the Netherlands. That involves exiting Italy, Spain, the Czech Republic and Slovakia - Darty has already announced the disposal of its Italian business to local retailer DPS. The aim is to sell or close the remaining chains over the next 12 months, while the Turkish operation will be kept under review. The move, says management, should eventually deliver €50m a year of costs savings, while the planned sale of non-core properties should realise €35m, more than offsetting the envisaged €30m cost of the restructuring.
Electronics retailer Darty (DRTY), formerly Kesa Electronics, is having a hard time. With nearly 70 per cent of its sales generated in France - where eurozone-induced misery has left the IMF forecasting growth of just 0.4 per cent in 2013 - Darty is under pressure as hard-pressed consumers rein in their spending. In fact, with its half-year figures, management revealed that like-for-like sales in France had tumbled 2.8 per cent year on year and that profits had slumped 44 per cent to €24.4m (£19.7m). Overall, Darty revealed a €7.3m pre-tax half-year loss, with group like-for-like sales having fallen 1.7 per cent. But Darty's problems go beyond France. Some 9 per cent of sales are generated in 'non-core' markets of Italy, Spain and Turkey and, in aggregate, those operations saw like-for-like sales fall 4.7 per cent and make a €19.8m half-year loss. Darty is also struggling with sub-scale operations in Slovakia and the Czech Republic. Its more established operations in Belgium and the Netherlands, responsible for 22 per cent of sales, are hardly booming, either. Like-for-like sales there grew 3 per cent at the half-year stage, but those businesses still delivered a €1.4m loss. "The consumer electronics market is tough across all countries in Europe and no respite is assumed in the near future," says new chairman Alan Parker.
Darty (DRTY) Director name: Mr Alan C Parker Amount purchased: 100,000 @ 58.86p Value: £58,860
Profit before tax As a result of the exceptional charges detailed above, the reported loss before tax was €7.3 million (2012: profit €0.8 million).
Alan Parker, Chairman, commented: "When I became Chairman in August this year I announced three priorities for Darty, namely to restore shareholder value, to review our markets and operations, and to renew the Board. "Today we are announcing the results of that strategic review - 'Nouvelle Confiance'. We will strengthen our position in France, Belgium and the Netherlands and drive greater efficiency at reduced cost across the Group. We will deliver a step change in performance, and eliminate the losses in our non-core markets of Italy, Spain, Czech Republic and Slovakia. We continue to keep Turkey under review. "We have substantially renewed our Board by the appointment of four new non-executive Directors with wide experience of European consumer markets. We are also making good progress with our recruitment of a new Chief Executive; in the interim Dominic Platt our current Finance Director will be acting Chief Executive. "Current market conditions remain challenging and have been deteriorating in recent months, but we have taken short term actions and continue to plan prudently. Our plan will nevertheless deliver an improvement in earnings over the medium term and in the light of this the Board has declared an interim dividend of 0.875 cents and, subject to full year performance, intends to maintain the dividend for the full year."
Operational Summary · Market share held or gained in our major markets. · Web-generated sales up over 10 percent. · Continued strong performance in Belgium and loss reduction at the Developing businesses. · New Darty Telecom agreement completed and cash received. · Agreement reached for the disposal of Darty Italy.
Statement of Results for the six months ended 31 October 2012 Financial Summary · Group revenue of €1,842.7 million (2012: €1,884.5 million), a decline of 2.3% in constant currency1 and 1.7% on a like-for-like basis. · Group retail loss2 of €3.9 million (2012: retail profit €16.5 million). · Adjusted3 Group loss before tax of €10.8 million (2012: profit €12.1 million). Reported loss before tax €7.3 million (2012: profit €0.8 million). · Adjusted loss per share of 2.3 cents (2012: earnings per share 1.0 cents). Basic loss per share of 1.5 cents (2012: continuing loss per share 1.1 cents). · Net cash outflow of €59.6 million (2012: outflow €85.1 million) with net debt at the end of the period of €187.8 million (2012: net cash €38.6 million). · The Board has declared an interim dividend of 0.875 cents, to be paid on 3 April 2013.
Strategic Review and Statement of Results for the six months ended 31 October 2012 Strategic Review - 'Nouvelle Confiance' · Creating value as the leading cross-channel retailer of technology products and services in our core markets of France, Belgium and the Netherlands. · Losses to be eliminated in non-core markets of Italy, Spain, Czech Republic and Slovakia. Turkey kept under review. · Net operating cost savings of c.€20m p.a. within three years. · Surplus property disposals expected to release c.€35m of net proceeds.
Darty: Alphavalue upgrades to buy; target price of 58p remains unchanged.
Darty: Seymour Pierce cuts target price from 50p to 45p, hold rating reiterated. UBS reduces target price from 65p to 50p, buy rating maintained.
Electrical retailer Darty, formerly Kesa Electricals, found trading tough in the first half and expects market conditions to remain challenging, although it expects to benefit from weaker comparatives in the second half. In a trading update for the period from May 1st to October 31st the company, which is without a Chief Executive following his resignation after a shareholder revolt over directors' pay, said that total revenues fell by 2.2% in euros, 2.3% in local currency and by 1.7% on a like-for-like basis. The worst performing business was Darty France, where revenues dropped 3.9%, while its developing businesses (Darty Italy, Darty Turkey and Darty Spain) also saw revenues fall 2.6%. In contrast, its established businesses (BCC, Vanden Borre and Datart) grew revenues by 3.7%. Given that gross margin was also down 100 basis points, albeit "with an improved trend in the second quarter", it will certainly require a strong second half to avoid further disappointment for Kesa's long-suffering shareholders. It will issue its half year results on Wednesday, December 12th.
Darty: Panmure Gordon reduces target price from 50p to 40p and reiterates sell recommendation. Seymour Pierce reduces target price from 55p to 50p, hold recommendation reiterated.
Darty: AlphaValue upgrades from reduce to add.
Darty: Nomura cuts target from 62p to 60p, neutral rating kept.
Outlook As with other companies in this sector, we face very tough trading conditions, with depressed consumer confidence and structural changes within the market. The aim is to put in place the right strategy and business model, building on the strengths of our brands and market positions to create long term success. As usual trading will overall be more weighted towards the second half of the financial year and we expect to benefit from weaker comparatives as the year progresses.