Electricals retailer Dixons Retail Plc. (DXNS.L) Thursday reported lower pre-tax profit for the year, particularly due to restructuring and impairment charges. However, underlying profit before tax was strong, with good growth in sales especially in the UK and Ireland. The company expects a good year ahead.
Sebastian James, Group Chief Executive, said, "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.''
Loss before tax was 115.3 million pounds, compared to loss of 118.8 million pounds last year.
The latest results included restructuring and impairment charges of 168.8 million pounds, relating mainly to PIXmania business and the main non-store UK B2B operations, following the disposal of Equanet.
Underlying profit before tax was 94.5 million pounds, while it totaled 82.1 million pounds in the previous year.
Loss attributable to equity shareholders of the parent company widened to 158.2 million pounds or 4.4 pence per share from 154.3 million pounds or 4.3 pence per share last year.
Total revenue grew to 8.439 billion pounds from 8.193 billion pounds in the prior year.
Underlying group sales rose 4 percent to 8.214 billion pounds. The growth was 4 percent on a like-for- like basis, outperforming local markets in general. Underlying group sales advanced 6 percent at constant exchange rates.
Like-for-like sales in the fourth quarter climbed 13 percent in the UK & Ireland and were up 14 percent in Northern Europe, reflecting strong share gains.
Total sales in the UK & Ireland division climbed 7 percent to 4.015 billion and like-for-like sales rose 7 percent. The division performed well throughout the year benefiting from improvements in stores, service, price and better supplier partnership.
In Northern Europe, which comprises the Elkjøp group and the Electroworld operations in the Czech Republic and Slovakia, sales grew 12 percent at constant exchange rates. Like for like sales were up 12 percent.
Southern Europe, which consists of operations in Italy, Greece and Turkey, saw sales decline amid weak economic environment.
Dixons noted that PIXmania experienced another very difficult year, but the business continues to operate a successful internet platform licensing business.
Looking ahead the CEO added, ''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.''
DXNS.L is up 2.2 percent in early trade at 43.25 pence.
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