29 Nov 2012
Interim Results

Dixons Retail plc, one of Europe’s leading specialist electrical retail and services companies, today announces Interim results for the 24 weeks to 13 October 2012.

Key Highlights

• Encouraging start to the year with Group like for like sales(1) up 3% in the first half.
• Good improvement in Group EBIT(7), up by £5.1million.
• UK & Ireland returning to first half profitability, for the first time in five years.
• Group multi-channel sales up 29% and up 38% in Currys & PC World.
• On track to reduce costs by £90 million over two years.
• Day to day control of PIXmania taken, with decisive actions to improve its poor performance already underway.
• Strong cash generation and reduction in net debt.
• Good early progress on our three strategic priorities.

Sebastian James, Group Chief Executive, commented:

"We have made good early progress on our three strategic priorities of driving a sustainable business in a multi-channel world, building on our leading market positions and have started to make some progress in sharing best practices across the Group.  We have significantly reduced net debt, successfully undertaken a £150 million bond issue and delivered good underlying profit growth in the UK and Northern Europe.  We have also improved our performance in Southern Europe and having now assumed full day to day control of PIXmania, we are taking actions to improve its poor performance.

I am particularly encouraged by our performance in the UK & Ireland and in Northern Europe and we were particularly busy during the sporting and cultural events during the summer.  While August and September were, as expected, a bit quieter, we remain cautiously optimistic about the outlook.  It is increasingly clear in each of our markets that our service-based, multi-channel business model is what customers want.  We are outpacing our competitors, and have seen Comet enter administration in the UK and Expert exiting the market in Sweden.

The exciting pipeline of tablets, smart TVs and other technology means customers can look forward to a fantastic shopping trip with us this Christmas.”

Financial Highlights

• Total Underlying Group sales(2) (3) of £3.29 billion (2011/12 £3.29 billion), up 4% on a currency neutral basis.
• Total Group sales, including those from the closed business, were £3.29 billion (2011/12 £3.30 billion).

• Underlying(2) Group gross margins down 0.5%.
• Underlying pre-tax loss of £22.2 million (2011/12 loss of £25.3 million).
• Total loss before tax of £79.5 million (2011/12 profit of £2.4 million), after net non-underlying charges of £57.3 million, mainly comprising the write down of the goodwill value of PIXmania.

• Underlying diluted loss per share of 0.6 pence (2011/12 loss per share of 0.7 pence).  Basic loss per share of 2.5 pence (2011/12 earnings per share of 0.1 pence).
• Strong cash generation and net debt reduced to £9.9 million from £143.2 million year on year.
• £150 million 2017 Notes issued during the period enabling the Group to smooth its debt maturity profile and balance its financial resources better.
• Remaining £144.4 million 2012 Bonds redeemed and £59.1 million associated currency hedging instruments settled by 15 November 2012 from the Group’s cash resources.

For further information

Investor Relations:

David Lloyd-Seed
IR & Corporate Affairs Director, Dixons Retail
01727 205 065

Press and Media:

Mark Webb
Head of Media Relations, Dixons Retail
01727 205 019

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.

29 Nov 2012 Interim Results (839KB PDF)

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