UK the golden-haired child for improving Dixons

Like-for-like sales from home market up nine per cent in first half

Dixons Retail saw its underlying profits more than double in its fiscal first half as its core UK business enjoyed a barnstorming six months.

In the six-month period to 31 October, the electricals retailer saw underlying pre-tax profit rise from £14m to £30.2m year on year on revenue that grew five per cent to £3.43bn on a currency-neutral basis.

The performance of Dixons' home UK and Ireland business, which saw like-for-like sales up nine per cent to £1.86bn, was singled out for praise by chief executive Sebastian James, who added that its Nordic business is "holding its own" and that its Greek operation is gaining share despite "gusty headwinds".

Meanwhile, Dixons' disposal of loss-making e-tail arm PIXmania, which is set to close this month, alongside Unieuro and Electroworld in Turkey, have left it in a leadership position in all its major markets, James added.

"Quite apart from removing a significant profit-drag on the business, these changes mean that we can really focus on new and exciting opportunities to do more for our customers and suppliers, and on working more closely to drive tangible benefits from being part of our group," he said.

Dixons' share price has virtually doubled this calendar year but James remained cautious for the London-listed retailer's fiscal second half.

"Very strong trading this time last year, together with the fact that we have now annualised Comet's exit makes the second half more challenging," he said.

"Nevertheless, we have had a great first half and our stores have never looked better – or had better offers for customers."