Olympic joy as Dixons posts first H1 UK profit for five years

Retailer feeling flush after summer success, but declines elsewhere see pre-tax loss near £80m

Dixons Retail has posted a profit in the UK and Ireland during its fiscal first half for the first time in five years.

In an interim results statement released today, the tech retail titan revealed that total sales for the 24 weeks to 13 October were flat in sterling terms at about £3.3bn. But the top line grew three per cent when measured in local currencies and three per cent on a like-for-like basis.

The UK and Ireland saw revenue grow two per cent, while the Nordics and central Europe posted a top-line increase of six per cent in sterling and 13 per cent in constant currencies. Southern Europe was predictably soft, with reported turnover dropping 13 per cent, while the PIXmania online trading brand saw revenue slip 15 per cent.

Despite the return to profitability in its homeland, Dixons booked a total pre-tax loss of £79.5m, compared with a £2.4m profit in the corresponding period last year. The firm claims its cost-cutting measures have put it on track to reduce costs by £90m.

Group chief executive Sebastian James said: "We have made good early progress on our three strategic priorities of driving a sustainable business in a multi-channel world, building on our leading market positions and have started to make some progress in sharing best practices across the group.

"I am particularly encouraged by our performance in the UK & Ireland and in Northern Europe, and we were particularly busy during the sporting and cultural events during the summer. While August and September were, as expected, a bit quieter, we remain cautiously optimistic about the outlook."