OPERATING AND FINANCIAL REVIEW
Electro World performed ahead of expectations in the
second half despite continued competitive market conditions.
Good market share gains were achieved in both Hungary
and the Czech Republic. In the fourth quarter, the business
implemented new sourcing arrangements whereby common
supplier terms were agreed for Electro World and Elkjøp
to support margin improvement plans.
the year, three Electro World stores were opened –
one in Hungary and two in the Czech Republic. At the
year end, Electro World traded from nine stores, four
in Hungary and five in the Czech Republic. Since the
year end, the Group has opened another store in Hungary
and a further store – also in Hungary –
is expected to open during the next 12 months.
DISCONTINUED OPERATIONS – EUROPEAN PROPERTY
Operating profit in the discontinued European Property
division was £2.2 million (2002/03 £15.0
on sales of £34 million (2002/03 £39 million).
On 8 December 2003, the Group disposed of its 90 per
cent holding in Codic International S.A. for €33.3
million. The consideration was equal to the Group’s
share of the net asset value of Codic of €37.0
million at 31 October 2003. As part of the transaction,
the purchasers also assumed €41.8 million of net
1. An Electro World
customer takes advantage of spectacular opening
2. Electro World’s
Cerny Most store in Prague trades from 44,000
3. Young customers
at Electro World sample the wide range of games
4. The impressive
TV display at Electro World, Cerny Most, Prague.
5. Electro World stores
offer more than 9,000 product lines.