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Dixons Retail posts pre-tax losses 20 June 2013

Dixons Retail plc, the owner of Dixons and PC World, has announced a pre-tax loss of £115.3m for the financial year ending 30 April 2013.

Despite UK and group like-for-like sales increasing 7% and 4% respectively, the retailer was hit by costs incurred by online outlet PIXmania.

Sebastian James, group chief executive, said: “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.

“The economic backdrop remains tough – we will have to strive hard to keep up our momentum and will flourish only if we continue to offer ever high levels of service, and the sharpest possible prices, no matter which channel our customers choose.”

The PIXmania subsidiary suffered a 27% contraction in sales, falling to £357.5m in 2013 from £491.4m in 2012.

Following the purchase of the 22% of PIXmania owned by the founding partners, PIXmania went through a significant reorganisation under a new management team, further impacting overall performance.

This restructuring included closing PIXmania’s 19 stores, exiting non-profitable categories and markets and reducing headcount from 1,400 to 649 in France and 149 in the Group’s shared services centre in the Czech Republic.

Dixons Retails’ annual statement says that as a result, PIXmania “has been refocused on its core business and costs have been significantly reduced.”

Dixons Retails’ total sales in the UK & Ireland were up 7% to £4.01bn from £3.75bn in 2012, and like for like sales were also up 7%.

Underlying operating profits increased 39% to £113.3m from £81.5 million in the previous year.



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