TIDMDXNS
RNS Number : 1643H
Dixons Retail PLC
15 May 2014
PR no:04/14
7.00am, 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 GBP150 million to GBP160
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 H2 ended 30 April Full year ended
2014 2014 30 April 2014
Underlying Sales Total Like for Total Like for Total Like for
growth like growth growth like growth growth like growth
Sterling Sterling Sterling
------------------ ---------- ------------- ---------- ------------- ---------- -------------
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%
------------------ ---------- ------------- ---------- ------------- ---------- -------------
- Ends -
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.comas well as on Carphone Warehouse's website at
www.cpwplc.com.
Sterling and local currency sales
Q4 ended 30 April H2 ended 30 April Full year ended
2014 2014 30 April 2014
Underlying Sales Total Total Total Total Total Total
growth growth growth growth growth growth
Sterling Local Sterling Local Sterling Local
currency currency 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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