Comet: Consumer confidence in decline

Sales of laptops and TVs are up but consumer confidence is in decline, Comet parent Kesa said in its annual results.

Profit at electricals retailer Comet was up 0.9 per cent to £43 million over the year to April 30th, Kesa said.

Sales were helped by the continued strong demand for flat screen televisions and laptops, the retailer said, while sales of white goods weakened over the period.

White goods, including fridges, freezers and washing machines, are generally affected by movements in the property market.

Chief executive Jean-Noel Labroue said: "We are seeing a continuing decline in consumer confidence and we anticipate further difficult trading conditions ahead.

"Consequently, more than ever, our priorities are to focus on maintaining product margin and improving productivity while reinforcing our strong service proposition and continuing to invest in the existing businesses and new markets to secure our longer term growth."

Comet, which has 251 stores in the UK, said its re-positioning programme to a more specialist service made good progress.

'Comet on Call', providing expert PC and laptop support for the home and small business customers, has been available from all stores nationwide since June 2007.

Group retail profit increased by 3.1 per cent to £141.3 million, Kesa said. The group also owns electricals chain Darty in Europe.

The group is recommending a final dividend of 3.6p per share, bringing the total dividend for the 15 months to April 30th 2008 to 17.9p, compared to last year's 14.4p per share.