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DSG Int. PLC (DXNS)

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Thursday 14 January, 2010

DSG Int. PLC

Interim Management Statement

RNS Number : 5246F
DSG International PLC
14 January 2010
 



PR 03/10

7.00am, 14 January 2010


DSG INTERNATIONAL PLC

TRADING AHEAD OF EXPECTATIONS IN ALL MARKETS

Renewal & Transformation plan delivering benefits


DSG international plc, one of Europe's leading specialist electrical retailers, is today issuing an interim management statement updating the market on trading for the 12 weeks ended 9 January 2010.

  • Underlying Group sales were up 11% in sterling and like for like sales were up 8%.

  • Good performance across all categories and in all markets, particularly in UK Electricals, Nordics, e-commerce and in Italy.

  • UK & Ireland Electricals grew like for like sales over the period by 8%.

  • UK Computing benefitted from launch of Windows 7, but overall sales were held back by continuing weakness of the B2B market.

  • Record-breaking Christmas in the UK in key categories including TVs, PCs and White Goods:-

  • A computer and a TV sold every 2 seconds over the Christmas period; and

  • All the Megastores seeing sales over £1million each in the first week of the Sale.

  • Gross margins across the Group were down 0.8% year on year, driven by the Group's decision to drive sales through the peak period as well as product and market mix.

  • Renewal & Transformation plan continues to deliver consistently strong results:-

  • All new format stores delivering consistent gross profit uplifts, especially the Megastores and combination 2-in-1 stores across the Group;

  • On track to deliver £50 million of cost savings this year as part of the £200 million 4 year cost saving programme.

  • Very good product availability over the Christmas period with stock turn up over 10% year on year.

  • The Group is entering into a period of consultation with its UK defined benefit pension scheme members to close the scheme to future accruals.



12 Weeks ended 9 January 2010

Sales

Underlying sales growth (Sterling)

Underlying sales growth (Local Currency)

Like for like growth

   UK & Ireland Electricals

+8%

+8%

+8%

   UK Computing

(8)%

(8)%

(3)%

UK & Ireland

+3%

+2%

+5%





Nordics

+40%

+28%

+18%





Other International

+1%

(1)%

+5%





e-commerce

+16%

+15%

+15%





Total Group

+11%

+8%

+8%



John Browett , Chief Executive, commented: 

"Customer response to Christmas and the Sale has been even better than we expected with strong demand across all the categories and countries. This performance reflects the benefits of the actions we are taking to revitalise the business as part of the Renewal & Transformation plan, with particularly pleasing performances in our Megastores and 2-in1 stores.

This excellent performance across the Group is testament to the hard work and commitment of our colleagues throughout the business.  

Looking forward, we expect 2010 to be tough across Europe and notably in the UK given the economic environment. However, we expect to continue to benefit from the self help of our Renewal & Transformation plan and continue to build solid foundations for future growth."



- Ends -


For further information 

David Lloyd-Seed,    Group Director of Communications, DSGi        01727 205065

Mark Webb,               Head of Media Relations, DSGi                           01727 205019


Information on DSG international plc is available at http://www.dsgiplc.com



NOTES:

1.    Underlying Group sales exclude sales from closed businesses and discontinued operations.  Sales for the 12 weeks ended 10 January 2009 have been re-

       presented to reflect this exclusion. Closed businesses comprise the operations of PC City in Sweden and Markantalo in Finland. Discontinued operations

       comprise Poland and Hungary.

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, and

       are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Operations that are

       subject to closure have sales excluded as of the announcement date. Stores subject to a refurbishment are excluded during the period of refurbishment

3.    UK & Ireland Electricals comprises Currys, Currys.digital and Dixons Tax Free as well as the operations in Ireland.

4.    UK Computing comprises PC World, DSGi Business and The TechGuys. Like for like sales are for PC World only.

5.    Nordics comprises the ElkjØp group.

6.    Other International comprises Greece (Kotsovolos and Electro World), Italy (UniEuro and PC City Italy), Spain (PC City Spain), Turkey (Electro

       World), Czech Republic (Electro World) and Slovakia (Electro World)

7.    e-commerce division comprises Dixons.co.uk and PIXmania.

8.    Movements in the financial position, including levels of borrowings, of the Group since the last Interim Report are reflective of the trading performance

       outlined above. Other than this, there have been no significant changes in financial position.    

9.    Certain statements made in this announcement are forward looking. 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 or otherwise.




This information is provided by RNS
The company news service from the London Stock Exchange
 
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