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DSG Int. PLC (DXNS)

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Thursday 02 September, 2010

DSG Int. PLC

Interim Management Statement

RNS Number : 0176S
DSG International PLC
02 September 2010
 



Thursday, 2 September 2010

 

DSG INTERNATIONAL PLC

To be renamed Dixons Retail plc

Group trading in line with expectations

 

DSG international plc, one of Europe's leading specialist electrical retailers, is today updating the market on trading for the 12 weeks ended 24 July 2010.

·     Total Group sales up 3% in sterling and like for like sales up 3%

·     UK operations gained market share, benefiting from:-

·     Strong sales of TVs in the lead up to the World Cup as well as exclusivity of the iPad

·     Roll out of  store refurbishments as part of the Renewal and Transformation plan

·     Retail partnership with Phones4U with 50 mobile store in stores to be open in time for Christmas

·     Nordic operations performing in line with expectations, following a year of exceptional growth

·     Italian operations performing in line with expectations, offset by a weaker environment in Greece

·      Total internet sales  were up 12% driven by multichannel and Reserve&Collect

·     Gross margins across the Group were up 0.1% year on year

·     Store refit programme roll out on track with 200 stores reformatted in the UK, 43 completed during the period including 8 Megastores

·     Successful rephasing of debt profile following issue of new 2015 Bond and part repurchase of existing 2012 Bond.

 

 


12 Weeks ended 24 July 2010

Sales

Total growth

(Sterling)

Total growth

(Local Currency)

Like for like growth





UK & Ireland

+2%

+3%

+6%

Nordics

+9%

+6%

Flat

Other International

(2)%

Flat

(1)%

e-commerce

Flat

+3%

+3%





Total Group

+3%

+3%

+3%

 

Comparative figures for the Group for the 12 weeks to 25 July 2009 are set out in the appendix.

 

 

 

John Browett, Group Chief Executive, commented:

"This is an encouraging start to the year, especially given the challenging market conditions. Our UK businesses performed particularly well, most notably with customers responding to our strong World Cup promotion and the excellent product ranges on offer. The store transformation programme is making rapid progress and continues to improve the shopping trip for customers. Our international businesses have also performed well against competitors in varied market conditions.

 

We remain cautious about the economic outlook but we will continue to deliver on our Renewal and Transformation plan to make the business Better, Easier and Cheaper to run and deliver an unbeatable combination of Value, Choice and Service for customers."

 

- Ends -

 

For further information

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

Mark Webb,                                          Head of Media Relations, DSGi                       01727 205019

Laura Cummings/Jayne Rosefield  Brunswick                                                             020 7404 5959

 

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

 

 

NOTES:

1)     Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period.  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.

2)     The change in total sales for the Group excludes discontinued operations and closed businesses from the comparative period.  No equivalent sales applied to the current period.

3)     UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, operations in Ireland, DSGi Business and TechGuys.  Like for like sales exclude DSGi Business and TechGuys.

4)     Nordics comprises the Elkjop group.

5)     Other International comprises Greece (Kotsovolos), Italy (UniEuro and PC City Italy store in store), Spain (PC City Spain) and the Czech Republic, Slovakia and Turkey (ElectroWorld).

6)     e-commerce division comprises Dixons.co.uk and PIXmania.

7)     Movements in the financial position, including levels of borrowings, of the Group since the last balance sheet date are reflective of the trading performance and statements outlined above, the issue of £150 million from the issue of a new Bond due 2015 and the repurchase of £140 million of the Group's existing 2012 Bond.  Other than this, there have been no significant changes in financial position.

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 law, regulation or accounting standard, 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.

 



Appendix

 

For comparative purposes set out below is the comparable sales performance of the Group for the 12 weeks to 25 July 2009:-

 

 


12 Weeks ended 25 July 2009

Sales

Total growth

(Sterling)

Total growth

(Local Currency)

Like for like growth





UK & Ireland

(15)%

(15)%

(14)%

Nordics

+15%

+14%

+9%

Other International

(8)%

(15)%

(9)%

e-commerce

+12%

+5%

+5%





Total Group

(5)%

(7)%

(7)%

 

 


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