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24 Jun 2010
A stellar performance online and in the Nordics helped DSG international (DSGi) grow revenue last year, but the continued struggles of DSGi Business saw UK sales decline.
Total group sales for the 52 weeks to 1 May rose four per cent on last year to £8.53bn. Pre-tax profit was up 61 per cent to £90.5m while, over the course of the year, net debt was more than halved to £220.6m. A new £360m revolving credit facility has also been agreed with the firm's banking syndicate.
The company said it has been operating against a tough economic backdrop across Europe all year and expects more of the same in 2010/11. But profitability will continue to improve, asserted DSGi, as it is "well prepared for this environment".
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Chief executive John Browett said: “Focus on our customers drives everything we do and I am delighted with the excellent progress we have made over the past 12 months as we continue to transform the group, despite the recessionary environment across Europe.
"We are now two years into the renewal and transformation plan and are encouraged by the improved profitability and competitiveness it continues to deliver.”
UK and Ireland sales for 2009/10 stood at £4bn, a five per cent fall on the preceding year. The decline was fuelled by another weak set of numbers from the high street giant's business-to-business operations.
Revenue from DSGi's UK Computing division, which includes PC World, The Tech Guys and DSGi Business, plummeted 13 per cent last year to £1.36bn.
The Nordics was the company's star performer with sales in the region soaring 22 per cent in local currency – and 29 per cent in sterling – to £2.1bn. DSGi's e-commerce division also delivered impressive numbers, with sales up 14.1 per cent to £921.2m. Total internet sales stood at £1.4bn – 16 per cent of the overall total.
DSGi also announced today that, at the company's upcoming AGM, shareholders will vote to ratify the changing of the firm's name to Dixons Retail plc. DSGi said the rebranding is being undertaken "in order to harness the strength of the Dixons name and to reflect the resurgence of the company".
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