DSG International PLC
18 October 2007
7.00am, Thursday 18 October 2007
DSG INTERNATIONAL PLC
INTERIM TRADING STATEMENT
DSG international plc is today updating the market on trading for the 24 weeks
ended 13 October 2007.
24 Weeks ended 13 October 2007
Sales Total growth Like for like growth
UK & Ireland +5% +6%
Nordic +8% +4%
Southern Europe +6% (3)%
Italy +2% (8)%
Greece +13% +7%
Central Europe +16% n/a
Total Electricals Division +7% +4%
UK +2% +2%
International +16% n/a
Total Computing Division +4% +1%
E-COMMERCE Division (Dixons.co.uk & FotoVista) n/a +26%
Total Group +9% +5%
Group like for like gross margin down 0.6%, in line with trends experienced in
the first quarter, largely driven by slower VISTA related hardware sales and a
changing sales mix in Computing.
Sir John Collins, Group Chairman, commented:
'With total Group sales up 9% and like for like sales up 5% in the first half, I
am pleased with the performances of the UK Electricals businesses as well as in
our operations in the Nordics, Greece and our expanding Central European
operations. Across the UK and Europe sales continue to be driven by flat panel,
high definition televisions, laptop computers, digital SLR cameras, games
consoles and accessories.
In the UK and Nordics the strong start to the year continued through the first
PC World delivered good sales performance against a tough prior year comparative
in the back to school period. The reduction in laptop stocks that arose out of
disappointing sales of VISTA related products and a changing sales mix have
reduced gross margins by around 2% in the computing division, impacting Group
profits by around £20 million in the first half. Stocks are now at normal
levels and we expect to recover some of the lost margin through the second half.
Our performance in Italy remains disappointing with a weak consumer backdrop
continuing to affect sales growth. We continue to reposition the UniEuro brand
and improve our proposition to the customer supported by the restructured
operational base. We are investing in the store portfolio and initial sales
from the new and refurbished stores are encouraging.
As shown in the numbers we are reporting today our largest markets, particularly
the UK, have been resilient. There is much debate about the uncertain outlook
in some of our markets for the consumer environment in 2008. Whilst profits in
the first half will be down year on year, the next 3 months include the
important Christmas peak season, a period in which over half our annual profits
are generated. We are well prepared for this period and are cautiously
optimistic that our product pipeline and market leading propositions will excite
our customers. It already seems certain that products like high definition
televisions, i-Pods, MP3 players, laptops, digital cameras, games consoles and
satellite navigation equipment will be popular with our customers throughout
Europe over Christmas.'
The Group will announce interim results for the 24 weeks to 13 October 2007 on
28 November 2007.
- Ends -
For further information
David Lloyd-Seed, Director of Investor Relations, DSGi, 01727 205065
Mark Webb, Corporate Media Relations Manager, DSGi, 01727 205019
Jonathon Brill, Financial Dynamics, 020 7269 7170
Information on DSG international plc is available at http://www.dsgiplc.com
(1) The change in total sales for the Divisions and the Group are in Sterling
and exclude discontinued operations. All other figures are in local
(2) Like for like sales are calculated based on stores that have been open for
a full financial year both at the commencement and end of the financial
period. Customer support agreement sales are excluded from all UK like for
like calculations to remove the distorting effect of the introduction of
pay as you go customer support agreements. Chains that are subject to
closure have sales excluded as of the announcement date.
(3) UK Electricals comprises Currys, Currys.digital and Dixons Tax Free.
(4) UK Computing comprises PC World, DSGi Business and The TechGuys. Like
for like sales are for PC World only.
(5) The numbers of International Computing and Central Europe stores trading
are insufficient for a meaningful like for like comparison to be made.
(6) E-commerce division comprises Dixons.co.uk and FotoVista. Total sales
growth is not meaningful due to the acquisition of FotoVista in the prior
(7) Like for like gross margins are calculated for the Group excluding the
(8) Certain statements made in this announcement are forward looking
statements. Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause actual
results to differ materially from any expected future events or results
referred to in these forward looking statements. Unless otherwise required
by applicable laws, regulations or accounting standards, we do not
undertake any obligation to update or revise any forward looking
statements, whether as a result of new information, future developments
(9) As announced on 11 October 2007, underlying Group profit before tax in the
comparative period was £70.3 million.
This information is provided by RNS
The company news service from the London Stock Exchange