WOOLWORTH U.K. SAYS GROWTH PROSPECTS EXCITING
Woolworth Holdings Plc <WLUK.L> which
earlier announced a 1986 pre-tax profits rise of 42 pct over
1985, said its prospects for growth were very exciting.
    The profit figure of 115.3 mln stg exceeded a forecast by
some 10 pct made during the hostile bid by Dixons Group Plc
<DXNS.L> last year and the company said the results were a
major step towards the aim of making Woolworth the most
profitable retailing group in the U.K.
    It aimed to produce growth from all its businesses and look
for opportunities to acquire specialist retail businesses.
    Earlier this month the group said that tentative merger
talks with the high street pharmacist <Underwoods Plc> had been
called off and recently announced a 19.2 mln stg recommended
offer for <Charlie Browns Car Part Centres Plc>.
    The B and Q Do it Yourself centres raised sales by 31 pct
and retail profit by 37 pct, with its pretax contribution of
45.5 mln making it the largest single component.
    The company said that the improvement had been achieved by
substantial organic growth in existing stores as well as by the
opening of a further 29 new outlets and enhanced margins.
    In other sectors, the Comet electrical chain raised retail
profits by 46 pct to 17.4 mln stg, while the Woolworth chain
reported a 120 pct improvement to 38.7 mln.
    The company said its property operations would increase
substantially following the start of a joint venture deal with
developers <Rosehaugh Plc>.
    The defence costs against the 1.9 billion stg bid from
Dixons resulted in a 16.0 mln stg extraordinary charge.
    The results were 10 mln stg up on most analysts forecasts.
As a result, the group's shares rose strongly, peaking at 865p
from last night's 842p before easing to 860p at 1155 GMT.
 Reuter
