COMET owner Kesa Electricals posted maiden full-year profits of £202.7m, but warned of continuing uncertainty in its core markets.

The company, which demerged from B&Q owner Kingfisher in July last year, said retail profits fell 2.7 per cent during the 12 months to January 31 after stripping out the impact of currency swings.

Revenues improved in the second half of the year and this had continued since February, despite difficult market conditions on the high street in the UK and France.

Chairman David Newlands chairman said: "Nevertheless, prospects for a sustained economic recovery in our core markets remain uncertain."

As well as 250 Comet stores, Kesa owns Darty and But, in France, as part of a network of more than 650 outlets in seven European countries.

Comet sales during the year grew 2.7 per cent to £1.44bn as shoppers snapped up the latest technology, such as flat-screen televisions. Like-for-like sales also rose, up 0.8 per cent.

Kesa posted pre-tax profits of £202.1m for the year, compared with £178.7m for 2002.