WOOLWORTH U.K. SAYS GROWTH PROSPECTS EXCITING

  Woolworth Holdings Plc &lt;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
  &lt;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 &lt;Underwoods Plc> had been
  called off and recently announced a 19.2 mln stg recommended
  offer for &lt;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 &lt;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.
  

