Full Year and Q4 Trading Statement 2014

15 May 2014

DIXONS RETAIL PLC
Another excellent year
Merger with Carphone Warehouse GROUP plc announced

Dixons Retail plc, Europe’s leading specialist multi-channel electrical retailer and services company, today announces trading for the fourth quarter and full year to 30 April 2014.

  • A strong outturn across the Group with full year underlying sales up 3% and like for likes up 3%.
  • Group Full year underlying profit before tax expected to be at the top end of market expectations of £150 million to £160 million.
  • Good cash generation resulting in improvement in net funds year on year.
  • Group gross margins were down 0.2% in the full year, showing improvement in the second half.
  • Disposals of PIXmania, UniEuro in Italy and Electroworld in Turkey, delivering against one of the Group’s core strategic objectives of focusing on markets where we are leaders.
  • The Group delivered robust trading in the fourth quarter, on top of a very strong performance in the prior year.
    • UK & Ireland traded strongly, delivering a stronger performance than expected. Fourth quarter like for like sales of (2)% was a robust performance having delivered +13% in the same period last year.
    • Northern Europe with flat like for like also delivered a strong performance on top of +14% in the same period last year.
  • Merger of equals with Carphone Warehouse Group plc announced separately today.

Sebastian James, Chief Executive, commented:

“This year we set out to achieve strong profit growth in our core business, and to tidy up the Group so that we are focused on those markets where we are winners. I could not be more pleased with the way it has turned out, with real success achieved in both of these areas thanks to some very creative and determined work by an excellent team.

I am also very encouraged to see that our balance sheet has strengthened, even while we have sorted out some of our European issues. The result is that the Group is in robust good health and set fair to take advantage of the fledgling recovery that seems to be taking hold in our main markets.

Today we also announce that we are setting out on a new journey with Carphone Warehouse and it is good to be in such a strong position as we embark on this adventure. The ability to take what we have built in electrical retailing and add the profound expertise of Carphone Warehouse in connectivity would make us a leading force in retailing for a connected world. Together, we can create a seamless experience for our customers that will enable technology to deliver what it promises – that is, to make their lives better.”

 

Q4 ended
30 April 2014

H2 ended
30 April 2014

Full year ended 30 April 2014

Underlying Sales

Total growth Sterling

Like for like growth

Total growth Sterling

Like for like growth

Total growth Sterling

Like for like growth

UK & Ireland

(3)%

(2)%

Flat

+1%

+3%

+5%

Northern Europe

(7)%

Flat

(4)%

+1%

+2%

+2%

Greece

(3)%

+1%

+1%

(3)%

Flat

(9)%

Total Group

(4)%

(1)%

(1)%

+1%

+3%

+3%

For further information

David Lloyd-Seed,
IR, PR & Corporate Affairs Director, Dixons Retail
01727 205065

Hannah Collyer,
Head of Media Relations, Dixons Retail
01727 203041

Tom Burns, Helen Smith;
Brunswick
020 7404 5959

Information on Dixons Retail plc is available at http://www.dixonsretail.com

Follow us on Twitter @DixonsRetail

There will be an investor and analyst presentation in connection with the proposed merger with Carphone Warehouse plc at the Shangri-La Hotel, Shard (35th Floor), 31 St Thomas Street, London Bridge, London, SE1 9RL at 9.00a.m. BST on 15 May 2014. There will be a live webcast of this presentation available on our website at www.dixonsretail.com as well as on Carphone Warehouse’s website at www.cpwplc.com.

Sterling and local currency sales

 

Q4 ended
30 April 2014

H2 ended
30 April 2014

Full year ended
30 April 2014

Underlying Sales

Total growth
Sterling

Total growth
Local currency

Total growth
Sterling

Total
growth Local currency

Total growth
Sterling

Total growth
Local currency

UK & Ireland

(3)%

(2)%

Flat

Flat

+3%

+3%

Northern Europe

(7)%

+1%

(4)%

+2%

+2%

+3%

Greece

(3)%

Flat

+1%

+2%

Flat

(3)%

Total Group

(4)%

(1)%

(1)%

+1%

+3%

+3%

NOTES:

  1. Like for like sales are calculated based on underlying store and internet sales using constant exchange rates. New stores are included where they have been open for a full financial year both at the beginning and end of the financial period. Closed stores are excluded during the period of closure. Customer support agreement sales are excluded from all UK like for like calculations. Underlying sales are defined as excluding trading results from businesses exited (PC City Spain and Equanet) and discontinued operations (Electroworld Turkey, Unieuro and PIXmania).
  2. UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, Harrods concession, operations in Ireland, Dixons.co.uk (closed in October 2012), and Knowhow.
  3. Northern Europe comprises the Elkjøp group and ElectroWorld in the Czech Republic and Slovakia.
  4. Greece comprises solely our Kotsovolos business.
  5. Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above. Other than this, there have been no significant changes in the financial position of the Group.
  6. Certain statements made in this announcement are forward looking. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.
  7. The directors of Dixons Retail plc confirm that the profit guidance for the vear ended 30 April 2014 has been properly compiled on the basis of the assumptions stated within this paragraph and that the basis of accounting used is consistent with the accounting policies of the company. The company’s financial results for the year ended 30 April 2014 (being the period to which the profit guidance refers to) are as at the date of this document being audited by the company’s auditors, therefore the confirmations set out in this paragraph have been made on the assumption that there will be no material adjustments to the Dixons Directors’ expectations of the results during this audit process. Dixons expects to announce its audited financial results for the year ended 30 April 2014 on 26 June 2014.

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