Dixons sales boosted by new iPad
Dixons Retail, the owner of Currys and PC World, has reported a fall in annual sales and profits although like-for-like sales picked up in the final quarter boosted by sales of the new iPad.
In the 52 weeks to 28 April, group underlying total sales were flat compared to the year before, while group like-for-like sales were down 3% in the full year, but up 5% in the final quarter.
Revenue edged up to £8,187 million from £8,154 million in previous year. This was ahead of expectations of £8,151 million.
Like-for-like sales in the group’s core UK market picked up in the final quarter with growth of 8% driven by sales of the new iPad. Dixon’s said the UK & Ireland division had performed strongly against a tough market as a result of the work it had undertaken in its Renewal and Transformation plan. This enabled the division to grow operating profits by 15% in the year.
The group now has 269 refurbished stores in the UK and Ireland with a further 63 stores expected to be reformatted in the year ahead.
Group underlying profit before tax was £70.8 million compared to £85.3 million in the previous year. The rise in profits in the UK & Ireland and a 12% profit increase in the Nordic division was offset by a weaker performance in Southern Europe where the group made a loss of £30.4 million. This compared to a loss of £18.1 million the year before. In addition the group’s PIXmania online business made a loss of £19.8 million, after making a profit of £3.5 million in the previous year.
Sebastian James, chief executive, commented: "I am pleased that by focusing our efforts on delighting customers, we have outperformed our competitors and ended the year with positive momentum delivering results at the top end of expectations. Against a tough economic backdrop, we have continued to deliver on a clear plan to transform the business and today we are setting out our three strategic priorities to further improve our market position and build a business that is stronger, more profitable and sustainable.
"Our service-led business model, now underpinned by the launch of KnowhowTM, is increasingly valued and trusted by our customers and our suppliers. The new financial year has got off to a good start with the trends seen in the final quarter of last year broadly continuing. However, we continue to plan cautiously and manage costs aggressively. Our business is well-positioned for the year ahead."
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