Press Releases
24 Nov 2011
Interim Results 2011
Dixons Retail plc, one of Europe's leading specialist electrical retail and services companies, today announces Interim results for the 24 weeks to 15 October 2011.
Key Highlights
- Total Group sales up 1%.
- Growing share across most markets, particularly in the UK and Nordics.
- Low cost operating model delivering Group performance ahead of expectations.
- Customer satisfaction and advocacy measures continue to show encouraging progress, particularly in the UK.
- Net debt reduced to £143.2 million from £215.1 million year on year.
- £60 million of cost reductions on track for the current year as part of the three year £150 million cost reduction programme.
John Browett, Chief Executive, commented:
"Our focus on building a service-led business model is differentiating our offer for customers and suppliers. In what remains a challenging environment, the pace and impact of improvements in our operating model is driving outperformance versus our competitors and market share gains. While we remain cautious about the economic outlook for the second half of the year, we are well positioned and remain focused on delivering world-class Value, Choice and Service for customers. We will continue to build our KNOWHOW service to further differentiate our offering. We are confident that customers will benefit from fantastic festive deals across an exciting range of technologies from our knowledgeable store colleagues this Christmas."
Financial Highlights
- Total Underlying Group sales(1) (2) up 1% to £3.29 billion (2010/11 £3.27 billion) and down 2% on a constant currency basis.
- Total Group sales, including those from the closed business, were £3.30 billion (2010/11 £3.35 billion).
- Group like for like sales(3) down 5%.
- Underlying Group gross margins down 0.6%, UK & Ireland gross margin up 0.2%.
- Total profit before tax of £2.4 million (2010/11 loss of £11.4 million), after non-underlying items of £27.7 million.
- Underlying pre-tax loss of £25.3 million (2010/11 loss of £6.9 million).
- Underlying diluted loss per share 0.7 pence (2010/11 nil). Basic earnings per share for continuing operations 0.1 pence (2010/11 loss per share of 0.1 pence).
Breakdown of sales by quarter:-
| Q1, 12 weeks to 23 July | Q2, 12 weeks to 15 October | |||||
| Total sales (sterling) | Total sales (local currency) | Like for like sales | Total sales (sterling) | Total sales (local currency) | Like for like sales | |
| UK & Ireland | (9)% | (9)% | (10)% | (2)% | (2)% | (5)% |
| Nordics | +15% | +5% | +4% | +16% | +11% | +6% |
| Other International | +3% | Flat | (6)% | +1% | +2% | (4)% |
| Pure play e-commerce | (11)% | (16)% | (16)% | (14)% | (16)% | (16)% |
| Total Group | (1)% | (4)% | (7)% | +2% | Flat | (3)% |
For further information
Investor Relations:
David Lloyd-Seed
Group Communications Director, Dixons Retail
01727 205065
Press and Media:
Mark Webb
Head of Media Relations, Dixons Retail
01727 205019
Zoe Bird
Nick Cosgrove
Brunswick Group
020 7404 5959
Information on Dixons Retail plc is available at http://www.dixonsretail.com/
An audio webcast of the analyst presentation being held this morning will be available from 3.00pm today at http://www.dixonsretail.com/ (click "Investors", then "Results, Reports & Presentations").
Information contained on the Dixons Retail plc website does not form part of this announcement and should not be relied on as such.
