21 Jun 2012
Dixons Retail 2011/12 Preliminary Results
Full year results at the top end of expectations
Dixons Retail plc, one of Europe's leading specialist multi-channel electrical retail and services companies, today announces preliminary audited results for the 52 weeks to 28 April 2012.
- Group underlying total sales(1) (2) flat in the full year with strong momentum in the final quarter.
- Group like for like sales(3) down 3% in the full year, up 5% in the final quarter.
- Like for like sales in the final quarter up 8% in the UK & Ireland and up 10% in the Nordics
- Growing share across most markets, particularly in the UK and Northern Europe.
- Underlying pre-tax profit(1) of £70.8 million (2010/11 profit of £85.3 million).
- Good progress in UK & Ireland and Northern Europe with profits up 15% and 12% respectively
- Offset by weaker performances in Southern Europe and PIXmania.
- Strong growth in multi-channel with sales up 30% in the second half.
- Net debt reduced to £104.0 million from £206.8 million year on year.
- £300 million revolving credit facility signed, extending the maturity date to June 2015.
- On target to repay £160 million 6.125% Bonds due 15 November 2012 and associated hedge cost of approximately £65 million.
- Customer satisfaction and advocacy measures continue to show good progress, particularly in the UK.
- Total Underlying Group salesflat at £8.19 billion (2010/11 £8.15 billion).
- Group gross margins down 0.3% in the full year.
- Gross margins flat in the UK in the full year.
- Northern Europe gross margins down 0.5% in the full year but recovering to flat in the second half.
- Total loss before tax of £118.8 million (2010/11 loss of £224.1 million), after non-underlying items(1) of £189.6 million, which are predominantly non-cash and comprise the write off of goodwill relating to Unieuro, Kotsovolos and PIXmania.
- Underlying diluted earnings per share(1) 1.1 pence (2010/11 earnings of 1.6 pence). Basic loss per share for continuing operations 4.3 pence (2010/11 loss per share of 6.6 pence).
- £60 million of cost reductions delivered in the year with £90 million targeted over the next two years.
The Renewal & Transformation plan has made significant improvements to our business. Today we are setting out three strategic priorities that will build on that work and improve our business for customers that we believe will deliver improving returns for shareholders:-
- Drive a successful and sustainable business model in a multi-channel world
- Be a leader in each of the markets in which the Group operates
- Align the Group to leverage consistently our scale and knowhow
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."
For further information
IR & Corporate Affairs Director, Dixons Retail
Head of Media Relations, Dixons Retail
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.