The Anglo-French electricals combine reported a rise in retail profit of 3.1 per cent to £141.3 million in the 12 months to April 30, when revenues rose 14 per cent to £4.51 billion.

The shine was dulled, however, by gloomy comments about trading conditions and the absence of a hoped-for share buy-back.

Chairman David Newlands described the results as “pleasing”, but warned: “We are seeing a continuing decline in consumer confidence and anticipate further difficult trading conditions.”

Panmure Gordon analyst Philip Dorgan, advising sell, said: “The failure to put in place a buy-back programme, despite the 20 per cent fall in the shares since the EGM circular, is disappointing and tells us that the company is not sure that the shares have yet fallen far enough.”

Kaupthing’s Matthew McEachran, recommending buy, said: “We still believe that [Kesa] is by far the most attractive potential target for Best Buy, if indeed it is acquisitive.”

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