Dixons CEO: We are winning not just surviving

Demise of Comet boosts retailer's full-year numbers, with UK sales soaring 13 per cent in Q4

Dixons Retail is not just surviving, but also now winning, its chief executive proclaimed as the electricals retail giant unveiled a barnstorming set of annual results.

Group and underlying total and like-for-like sales rose four per cent to £8.21bn in Dixons' year to 30 April, with underlying pre-tax profit jumping 15 per cent to £94.5m.

Dixons admitted its market share in the UK and Ireland, where it posted 13 per cent growth in the final quarter, was boosted by the closure of a number of its competitors, most notably nearest rival Comet. The competitor shake-out has left Dixons with more than a fifth (21 per cent) of the UK market in its pocket, it estimated.

Dixons' share price, which has trebled in the past year, rose more than 1.5 per cent on news of the results.

Chief executive Sebastian James boasted that it had been a good year for the London-listed giant.

"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," he said. "On all our strategic priorities I am pleased with the progress we have made, even though I am, of course, impatient for us to achieve even more, even faster, particularly in focusing on markets where we are, or can be, a leader."

James acknowledged that Dixons had been able to exploit the recent consolidation in the market, but argued that the upturn in fortunes should be attributed to a "fundamental shift in our trading philosophy" that sees the retailer "increasingly standing shoulder to shoulder with customers".

The UK and Ireland – which saw profits soar 39 per cent on annual sales that rose seven per cent to £4.014bn – benefitted from improvements in stores, service, price and generating value through better supplier partnerships, Dixons claimed. Its numbers were also boosted by the Jubilee and Olympics, as well as strong sales of tablets in the second half.

Dixons said its UK services brand, KNOWHOW, grew added-value services by 54 per cent. The retailer is now rolling this out across northern Europe and Italy.

Last year it introduced its "pay&collect" model, which allows customers to access its full range of products from local stores, and this year it said it plans to move its last time for next-day delivery to 10pm.

Dixons swallowed restructuring and impairment charges of £168.8m for the year. Some £22.9m of that figure related to the reorganisation of its site in Bury and the residual retained business following its sale of Equanet to Kelway. It also absorbed a £64.6m charge relating to its restructuring of Pixmania following its decision to purchase the 22 per cent of the firm that was owned by its founders last summer.

"The year ahead offers many fantastic opportunities for us and we have plans which touch every part of our business to make things better, easier and faster," said James. "I believe that many of our stores are now among the very best in the world, but I recognise that we need to make sure that the experience in our stores is completely consistent – from Truro to Tromsø."