Retail giant Dixons has posted a jump in revenue and profits ahead of its merger with Carphone Warehouse.
The two firms announced an intention to merge back in May, with the combined firm set to be renamed Dixons Carphone. The deal has now been cleared by the European Commission.
For the full year the group posted total sales of £7.2bn, up from £7.03bn the previous year. Total pre-tax profit after non-underlying items increased 53 per cent to £132.9m, compared with £86.6m last year.
On an individual territory level, the firm said it had seen "further strong progress" in the UK and Ireland with underlying profits up 24 per cent, its Elkjøp division posted record sales, and its Greek business turned in an improved performance.
In addition, the firm announced that its cost reduction strategy had yielded £45m savings for the year, bringing the total to £90m saved over the past two years.
Sebastian James, group chief executive, said: “This has been a great year for the group with some excellent performances across our multi-channel businesses, together with the achievement of a number of important strategic objectives. Our profits are up...This not only reflects the fact we have now exited all of our non-core markets, meaning we are now a leader in all our core markets, but is also a testament to the creativity and hard work of our teams.
“The group is in robust financial health with further cash generation resulting in a strong net cash position even after the costs incurred in exiting the non-core businesses,” he said.
James added that the results mean the firm is “well positioned” to “set sail into new waters”.
“I am very excited about the opportunities that the proposed merger with Carphone Warehouse offers for the group. We will build what I hope will be the first and best truly multi-channel proposition that allows customers not only to buy and experience the explosion of new connected products that are emerging, but to also get the advice, connectivity and services that will allow them to use technology as it should be used – to make their lives better.”
He said the World Cup had helped to lift TV sales, but believed there were signs of a consumer recovery.
“On this there is no certainty just yet, but what we know for sure is that if we maintain a tight rein on costs, our pricing sharp – against all comers – and our service levels high, customers will continue to choose us over others.”
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