Dixons sales boosted by 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."
Email this article to a friend
You need to be logged in to use this feature.
Please log in here