Strong like-for-like sales and jump in profit mark successful year for the retail group

‘A good year for Dixons,’ says group boss James

Dixons Retail, owner of PC World and Currys, has revealed strong sales in its financial results for the year ending April 30th, 2013.

Group underlying total and like-for-like sales were up four per cent.

Pre-tax profit was up 15 per cent to £94.5 million (against 2011/12 profit of £82.1 million). In UK & Ireland specifically it was even better, with profits up 39 per cent.

What no doubt helped, was reducing Group costs by £45 million as part of the firm’s two-year £90 million cost reduction initiative. 

Group chief executive Sebastian James commented: “It has been a good year for Dixons Retail with underlying profits up by 15%, and a great year in the UK and Ireland with profits up by 39%. We have returned to growth for the Group as a whole, and also to a net cash position, marking an important milestone in our transition from survivor to winner."

He highlighted the need to always improve the customer experience: "The year ahead offers many fantastic opportunities for us and we have plans which touch every part of our business to make things better, easier and faster. I believe that many of our stores are now among the very best in the world, but I recognise that we need to make sure that the experience in our stores is completely consistent – from Truro to Tromsø; every day we must find new ways to surprise, delight and improve the lives of our customers. I look forward to another good year, building on the momentum of this year, and one which proves rewarding for our customers, our teams and of course, our shareholders. In the meantime, nothing has given me more pleasure than to celebrate with my colleagues, very briefly, all we have achieved and to thank them for their hard work before launching headlong into the coming year.”

Dan Coen, director at advisory and restructuring firm Zolfo Cooper, commented on Dixons’ full year preliminary results: “Dixons is clearly reaping the benefits of being the last major electronics retailer left on the UK high street. With Comet and Best Buy out of the picture, Dixons has rapidly been able to take the lion’s share of the market.

"Dixons needs to take advantage of this position and continue its efficiency and restructuring strategies. Currys and PC World may dominate electronics retail on the high street right now, but parent company Dixons faces stiff competition from online rivals such as Amazon, and continues to have challenges in its European operations.”

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