UK growth gives Dixons solid start to FY13

Retail monolith in good cheer, despite continued softness in southern Europe

Robust growth in the UK offset a slump in southern European sales and helped Dixons Retail Plc make a solid start to its fiscal year.

In an interim management statement issued to the markets today, the high street giant revealed that total group sales rose two per annually in sterling during the 12-week period ending on 21 July. Revenue was up five per cent on a like-for-like basis, and eight per cent when measured in local currencies.

UK and Ireland sales rose six per cent in sterling terms, while central Europe and the Nordics enjoyed an eight per cent spike compared with the corresponding period last year. Unfavourable exchange rates tempered growth levels, however, with local currency growth for the Nordics and central Europe pegged at 18 per cent.

In Italy, Greece and Turkey, sterling revenue declined 13 per cent annually, and Dixons indicated that the Italian and Greek businesses are "taking appropriate actions in continued difficult economic environments".

First-quarter sales at online retailer PIXmania dropped 13 per cent in sterling terms. Dixons acquired a further 22 per cent stake in the business last month, taking its total holding to 99 per cent and giving it full control over the company's operations.

Sebastian James, chief executive of Dixons Retail Plc, said: "While it is still early in our financial year, I am encouraged by the start we have made across the group. We have had a real boost from a busy summer of events in the UK and our northern European operations continue to go from strength to strength. I am pleased that we now have day-to-day control of PIXmania, allowing us to take the decisive actions necessary to improve its performance.

"August has proven to be quieter across the retail sector in some of our markets and we continue to be cautious about the outlook. However, we are well placed for the back-to-school period and look forward to the launch of Windows 8 and the exciting new products that we will have available for customers for the Christmas period."

Last quarter was a typically tumultuous one for Dixons' B2B operations, as Phil Birbeck (pictured) brought an end to his 30-month spell as Equanet managing director. He takes over the reins at PIXmania.

His replacement, Felix Stauber, becomes the company's fourth boss inside four years. The two-year reign of Jerry Roest came to an end in late 2008. He was followed by Martin Dorchester and James Welsh, who racked up about 18 months between them, despite both nominally being appointed on an interim basis.