Kesa repeats its pledge to get Comet back on track as chief exec’s pay drops

ELECTRICALS retailer Kesa yesterday pledged to turn its struggling Comet business around in its annual report.

Chairman David Newlands gave a scathing account of the business, which is living in the shadow of Kesa’s better performing French chain Darty.

Newlands said: “Comet’s recent results have been neither satisfactory nor acceptable.

“As a result, changes to management have been made and a strong turnaround plan to restore profitability in the medium term is being prosecuted vigorously.

“We believe that Comet, with its strong brand awareness, is well placed to carve a leading position.”

Among the options that could be considered is the sale of the chain, with feelers already put out into the market.

The report also revealed that the total remuneration package for chief executive Thierry Falque-Pierrotin dropped from £2.3m in 2010 to £1.4m this year. The fall came because Falque-Pierrotin received a far smaller bonus payment for the year, due to Comet’s poor performance.

Kesa saw group retail profit fall by 2.7 per cent to €107m (£94.2m) this year, while group revenue rose 2.2 per cent to €5.9bn.

Falque-Pierrotin said in the report: “We have made progress against our strategic agenda despite the challenging market conditions. Overall we remained ahead of our markets.”