Profits tumble at Comet

Down over ?30m, but retailer manages to control spending reducing impact on revenue
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Comet saw its profits slashed by over three quarters to £10.1m during the past year, with the retailer blaming the weak economy and strong promotional activity.

Revenue was also down at the UK's second largest consumer electronics retailer for the year to April 30th, but strong cost action managed to limit it to 4.7 per cent. That figure was down 7.7 per cent like-for-like to £1.7bn.

Much of the cost management was focused on cutting a number of positions at its head office in Hull and the closure of four service centres around the UK.

It also reviewed its logistics structure, resulting in the closure of two home delivery centres and the relocation of one distribution centre. One further regional distribution centre will also close, parent company Kesa confirmed.

However, it was more optimistic about its retail performance, with the company saying it had continued to successfully improve costs in its chain due to the current mezzanine programme.

Nine stores were converted, while a further three relocations took place during the year, brining the total number of stores with second floor selling space to 39.

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