Information  X 
Enter a valid email address

DSG Int. PLC (DXNS)

  Print      Mail a friend       Annual reports

Wednesday 20 June, 2007

DSG Int. PLC

Final Results

DSG International PLC
20 June 2007





19 June 07 - PR 86/07
Strictly embargoed
For release at 07.00 hours
              This announcement is optimised for landscape printing

                             DSG international plc

        PRELIMINARY AUDITED RESULTS FOR THE 52 WEEKS ENDED 28 APRIL 2007

DSG international plc today announces preliniary audited results for the 52
weeks ended 28 April 2007:

Financial

   •Total Group sales up 14% to £7,929.7 million (2005/06: £6,984.4 million)

   •Group like for like sales(1) up 4%

   •International sales now represent 41% of total Group sales

   •Internet sales now represent 10% of total Group sales, up from 3% in the
    previous year

   •Underlying pre-tax profit(2) £295.1 million (2005/06: £311.0 million)

   •Underlying diluted earnings per share 10.9 pence (2005/06: 11.8 pence)

   •After previously announced impairment and restructuring charges, total
    profit before tax £114.1 million (2005/06: £295.9 million); Basic earnings
    per share 1.8 pence (2005/06: 11.2 pence)

   •Group target of zero paid days stock(4) achieved on average across the
    year

   •Cost savings of £25 million delivered during the period

   •Proposed final dividend of 6.85p, making total dividends for the period
    of 8.87p per share, an increase of 5%

   •£50 million special contribution made to the pension scheme


Key developments

   •Decision not to proceed with the option to acquire any interest in
    Eldorado

   •£100 million share buyback programme initiated

   •Retirement of John Clare and appointment of John Browett as Group Chief
    Executive

   •For the first time, Czech and Spain profitable for the full year

   •Initial benefits of Group buying initiatives delivering margin
    improvement in Currys

   •Successful transition of Dixons into pure-play e-tailer with sales growth
    of 182% in its first year

   •Acquisition of interest in FotoVista, serving e-tailing operations across
    26 countries, driving focus on e-tailing

   •Closure of PC City stores in France

   •Early success of The TechGuys following its launch; PC advice clinics
    rebranded under The TechGuys

   •Major restructuring programme in Italy completed

   •Sale of The Link stores and Genesis Communications

   •UK store colleague reward system enhanced with rewards based on team
    performance replacing personal sales commissions


John Clare, Group Chief Executive commented:

'The year was overall one of significant change for the Group, in which many of
the foundations for future growth were laid. In that context, I'm pleased with
the performance we have delivered in most of our core businesses, including UK,
Nordics, Greece and Ireland, and also in our start up businesses in Central
Europe and Spain. Our new e-commerce division has also delivered strong growth.
However, our overall Group result was disappointing, largely because of a weak
performance in Italy.

During the year we stepped up the pace of transition towards our goal of
becoming Europe's leading specialist electrical retailer and e-tailer.

Firstly we chose to discontinue or sell businesses that did not present good
opportunities to deliver future value to shareholders, PC City France and the
communications businesses.

Secondly we invested significantly to improve the service we offer our customers
through the introduction of The TechGuys and a major colleague engagement
programme in our UK stores that included moving from personal sales commissions
to team bonuses based on store performance.

We also invested in changes in both the people and physical infrastructures that
support our current operations. This included the significant change programme
in Italy, completing the reorganisation of our UK logistics infrastructure and
the development of international buying teams.

Finally, we have invested in creating or acquiring the business base to drive
our growth into the European e-tailing market. We acquired a majority interest
in Pixmania, Europe's leading electrical e-tailer. We reinvigorated the Dixons
brand by taking it off the high street and giving it the freedom to grow on the
internet and, with sales almost trebling in its first year, it has got off to an
excellent start. We have also enhanced our multi-channel offerings with the
introduction of reserve and collect options for our customers in Currys and PC
World, and will be rolling them out to our other operations.

Since we signed our option agreement with Eldorado, we have learnt a great deal
about both the company and the market in which it operates. This due diligence
has led the Board to conclude that it is not appropriate to proceed with this
investment. The Board has therefore notified Eldorado that it is terminating the
option agreement. We secured this agreement for no cost.

Russia remains an interesting and exciting market and we will continue to watch
the developments there, both commercially and politically, and I expect the
Group to re-examine opportunities for entering this market in the future.

In view of this decision the Board now plans to return up to £100 million to
shareholders through a share buy back programme over the next 12 months,
representing the capital that would have been invested in the first tranche of
Eldorado shares.

The Group is now in a very different and better position than one year ago. It
is well positioned in-store and on-line for future growth in its core markets,
including recovery in Italy. It is better meeting the needs of today's customers
in the stores, on the web and in after sales support.

The new year has started well, despite the strong comparatives due to  last 
year's World Cup and very strong television sales. Whilst we remain cautious
about the prospects for consumer expenditure in many of our markets, including
the UK, I am confident that we will continue to offer an exciting range of new
technology products that our customers will find appealing. I am also satisfied
that this Group is positioned to do well within its markets. The Group's clear 
focus is now on getting overall earnings growth back on track.

I recently announced my intention to retire from the Group at the AGM on 5th
September after 22 years, including 13 years as Chief Executive. Those years
have been challenging and competitive, always exciting and never dull. There
have been a significant number of successes and innovations over the years
including the development of PC World, Freeserve, our international expansion
and growth of our e-tailing operations both multi-channel and pure-play. I would
like to thank all the colleagues I have worked with over that period, many now
retired themselves. They taught me a great deal, and I hope I have passed on
much in return. It was great fun.

The Group I inherited had a culture that was very entrepreneurial. We try things
and do not fear failure. Despite the size of the Group today, that culture still
prevails, and I hope that it always will.

I pass the baton of leadership on to John Browett. I wish him, and all
colleagues in DSG international, well in the future. He takes on a great
business with great people, well positioned for future growth.'



For further information:

David Lloyd-Seed Group Director of Investor Relations  01727 205 065

Hamish Thompson        Director of Media Relations     07702 684 290

Jonathon Brill         Financial Dynamics              020 7269 7170


   --------------            ------------------------------------------

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

   --------------            ------------------------------------------

An audio webcast of the analyst presentation being held this morning will be
available from 3.00pm today at

http://www.dsgiplc.com (click 'financial information', then 'presentations').

   --------------            ------------------------------------------


NOTES

 1. 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.

 2. Throughout this statement, references are made to 'underlying' performance
    measures. Underlying results are defined as being before amortisation of
    acquired intangibles, exceptional asset impairments, restructuring and other
    one off items, profit on sale of investments, net fair value remeasurements
    of financial instruments and, where applicable, discontinued operations. The
    financial effect of these items is shown in the analyses on the face of the
    income statement and in note 3 to the financial information.

 3. Free Cash Flow relates to continuing operations and comprises net cash flow
    from operating activities before special pension contributions, plus net
    finance income, cash flows related to finance leases, less income tax 
    paid and net capital expenditure.

 4. Average paid days stock is a measure of average period stock days across the
    year less average period trade creditor days.

 5. Unless otherwise noted, throughout this statement figures relate to
    continuing operations. Total revenue including discontinued operations was
    £8,104.5 million (2005/06: £7,403.4 million).


   --------------            ------------------------------------------


UNDERLYING SALES AND PROFIT ANALYSIS

                               -------------------------------------------------             --------------------------
                                                    Sales                                  Underlying profit /(loss) (1)

                               -------         -------     ------         ------              --------        --------
                        52 weeks ended  52 weeks ended  Total (2)  Like for like        52 weeks ended  52 weeks ended
                         28 April 2007   29 April 2006                                   28 April 2007   29 April 2006
                  Note       £ million       £ million   % change       % change             £ million       £ million
-----------------  ---         -------         -------     ------         ------              --------        --------


UK Computing       3         1,850.8         1,752.3          6%             4%                124.8           129.4
International
 Computing         4           347.0           287.5         22%             -                 (28.2)          (22.2)
-----------------  ---         -------         -------     ------         ------              --------        --------
Total Computing              2,197.8         2,039.8          8%             3%                 96.6           107.2
-----------------  ---         -------         -------     ------         ------              --------        --------


UK & Ireland
 Electricals                 2,808.9         2,742.9          2%             3%                103.1            79.8
Nordic             5         1,394.3         1,155.1         24%             9%                 91.0            83.4
Southern Europe    6           917.0           895.4          4%            (3)%                 8.0            44.3
Central Europe     7           160.3           118.7         36%             -                  (9.3)           (9.9)
-----------------  ---         -------         -------     ------         ------              --------        --------
Total Electricals            5,280.5         4,912.1          8%             3%                192.8           197.6
-----------------  ---         -------         -------     ------         ------              --------        --------

e-Commerce                     451.3            26.3          -            182%                  1.2             0.0
-----------------  ---         -------         -------     ------         ------              --------        --------

-----------------  ---         -------         -------     ------         ------              --------        --------
Total Retail                 7,929.6         6,978.2         14%             4%                290.6           304.8
-----------------  ---         -------         -------     ------         ------              --------        --------


Corporate &
 Group Shared
 Services                        0.1             6.2          -              -                 (25.7)          (27.3)
Property
 profits                           -               -          -              -                   8.7             7.4
-----------------  ---         -------         -------     ------         ------              --------        --------
Corporate
 Centre                          0.1             6.2          -              -                 (17.0)          (19.9)
-----------------  ---         -------         -------     ------         ------              --------        --------


-----------------  ---         -------         -------     ------         ------              --------        --------
Group                        7,929.7         6,984.4         14%             4%                273.6           284.9
=================  ===         =======         =======     ======         ======              ========        ========


-----------------  ---         -------         -------     ------         ------              --------        --------
Underlying net
 finance income                                                                                 21.5            26.1
-----------------  ---         -------         -------     ------         ------              --------        --------

Group
 underlying
 profit before
 tax                                                                                           295.1           311.0
=================  ===         =======         =======     ======         ======              ========        ========


 Notes 

 1. Underlying results are defined as being before amortisation of acquired
    intangibles, exceptional asset impairments, restructuring and other one-off
    items, profit on sale of investments, net fair value remeasurements of
    financial instruments and, where applicable, discontinued operations.

 2. Total sales percentage change is reported in local currency for regional
    sales and in pounds sterling for divisional and Group totals.

 3. UK Computing comprises PC World, PC World Business and The TechGuys.

 4. International Computing comprises the PC City operations in Spain, France,
    Sweden and Italy.

 5. Nordic comprises the Elkjop Group, which operates in Norway, Sweden,
    Finland, Denmark, Iceland and the Faroe Islands.

 6. Southern Europe comprises UniEuro in Italy and Kotsovolos in Greece.

 7. Central Europe comprises Electro World that operates in Hungary, the Czech
    Republic and Poland.



BUSINESS PERFORMANCE

Group sales were up 14% to £7,929.7 million (2005/06: £6,984.4 million) and up
4% like for like. Group underlying profit before tax was £295.1 million (2005/
06: £311.0 million).

The Group estimates that it has a 6.3% European market share. Sales growth has
been driven in all markets by new technology, primarily flat panel TVs and
laptop computers as well as by digital imaging and audio products. White goods
continue to grow in Nordic, and Southern European markets, whilst in the UK
there were some early signs of improvement in this category towards the end of
the period. The Group's markets address a total population of some 300 million
with almost 100 million transactions carried out across the Group each year, in
stores and on-line.

ELECTRICALS DIVISION

Total sales in the Electricals division were up 8% to £5,280.5 million (2005/06:
£4,912.1 million) and like for like sales were up 3% with strong sales across
the year of flat panel televisions and digital products. Underlying operating
profit was £192.8 million (2005/06: £197.6 million).

UK & IRELAND

Total sales in the UK & Ireland operations were up 2% at £2,808.9 million (2005/
06: £2,742.9 million) with like for like sales up 3%. Underlying operating
profit was £103.1 million (2005/06: £79.8 million). The brown goods market grew
by 10% driven by flat panel televisions and the white goods market was
relatively subdued growing by 3% across the year.

UK

The UK electricals operations include Currys, Currys.digital and the Dixons Tax
Free stores. Total sales for the year were up 1% at £2,677.0 million (2005/06:
£2,639.7 million) while like for like sales were up 3%, as Currys continued to
reduce its exposure to smaller High Street retail sites.

During the year, Currys introduced a number of initiatives to improve the
offering and service levels to customers as well as improving profitability.
These include initial benefits from the Group's buying initiatives, improvements
in the logistics infrastructure in the UK reducing both cost to the Group and
delivery times to customers, as well as the move to team bonuses based on a
stores overall performance rather than individual sales commissions.

Currys superstores performed well with like for like sales up 4% across the year
and a gross margin improvement of 0.6% versus the previous year.

Currys.digital has had its first full year of operation since the stores were
rebranded from Dixons. The conversion of the stores was completed on plan and on
budget. The stores had minor refits to improve the display and increase the
range of high definition flat panel televisions as well as introducing new
categories such as small domestic appliances and white goods. The performance of
these stores under the new Currys.digital brand has been a success with a
significant reduction in costs and sales in line with expectations.

Sales at Dixons Tax Free were impacted by the disruption at UK airports during
the first half. Rents in these stores are tied to turnover and the business
managed to transition sales into higher margin products. Against this backdrop
the tax free operations delivered a good performance increasing its net
contribution to the Group. Dixons Tax Free currently operates from 21 stores
and has plans to open 4 new stores in the new Terminal 5 at Heathrow.

Ireland

Sales in Ireland grew by 29% at constant exchange rates to £131.9 million (2005/
06: £103.2 million) as the business continued to expand with 7 new stores added
during the period, taking the total store base in Ireland to 28 at the end of
the year. Like for like sales increased by 8%. Since the end of the financial
year the Group's first franchise store in Ireland was opened.

NORDIC

In the Nordic region, Elkjop grew total sales by 24% at constant exchange rates
to £1,394.3 million (2005/06: £1,155.1 million) with like for like sales up 9%.
Underlying operating profits grew by 9% to £91.0 million (2005/06: £83.4
million). This performance was impacted by adverse foreign exchange movements.
Excluding these, underlying operating profit was up 13%. Elkjop delivered
particularly strong performances in Sweden and Norway.

At the end of previous financial year Elkjop acquired Markantalo in Finland and
in December it acquired a 40% interest in F-Group in Denmark, consolidating
Elkjop's position as the number one electrical retailer across the Nordic
market. Elkjop grew its franchise operations by 9 stores taking the total number
to 78 stores. The model developed by Elkjop has provided the template for the
Group to roll out franchising operations in other European countries.

Elkjop extended its multi-channel offering in all of its markets, increasing its
online sales by 85%. It plans to introduce a reserve and collect service for
customers during the year.

Elkjop continues to go from strength to strength and as it grows its operations
outside its original market of Norway through organic growth, acquisition,
franchising and on-line. The changing sales mix has had a negative impact on its
gross margins in percentage terms. However this is in line with management's
expectations and Elkjop's growth plans and cash margin continues to grow.

Elkjop increased its share in all its markets. With the addition of 21 new
stores and 9 franchise stores, Elkjop now operates a total of 251 stores across
the region of which 173 are owned.

SOUTHERN EUROPE

Sales in the Group's Southern European operations grew in total by 4% at
constant exchange rates to £917.0 million (2005/06: £895.4 million), with like
for like sales down 3%. A strong performance in Greece has been more than offset
by the performance in Italy. Underlying operating profit was £8.0 million (2005/
06: £44.3 million). In Southern Europe the Group estimates that the brown goods
market grew by 7%, white goods by 9% and computing by 7%.

UniEuro

UniEuro in Italy had a disappointing year with total sales down 1% at constant
exchange rates to £621.4 million (2005/06: £632.7 million) and like for like
sales down 8%. During the period the programme to re-engineer all parts of
UniEuro's operations into a centralised structure, common to all other
businesses within the Group was a key focus. The impact of this significant
change programme was exacerbated by the challenging market environment existing
in Italy and the increased space opening programmes of UniEuro's main
competitors. As a consequence the electricals market in Italy became more
promotional and UniEuro reduced prices to remain competitive, impacting gross
margins.

During the year, UniEuro's management team was strengthened and is implementing
a plan to recover its market position. This includes improvements in the
customer proposition, increased marketing investments and a store refurbishment
programme covering a significant proportion of the stores. 35 stores were
refurbished over an 8 week period prior to Christmas, and a further 25 stores
are planned for the new financial year. The refurbished store format delivers a
much improved shopping experience for customers which includes the availability
and display of wider ranges of core products such as flat panel televisions,
computing products, communications and digital audio products. It also provides
additional space for carry out stock, accessories and peripherals. During the
final quarter of the financial year the new management team opened 5 new stores,
improved stock availability and is now operating with more confidence,
maintaining its market share.

Together with the move to a centralised operating model, these recent actions
have led to improvements at UniEuro. It is now able to provide customers with
wider ranges at better prices in a convenient and enjoyable environment. As a
result brand awareness and value perceptions have increased. The Group is
confident in the long-term prospects for the Italian market and UniEuro, as such
management have now put in place a programme to significantly increase the store
portfolio over the next 2-3 years.

Under accounting rules the Group is required to review the carrying value of
UniEuro on the Group's balance sheet. As a result of this review the carrying
value has been reduced by £115.1 million and goodwill in respect of UniEuro is
now carried at £325.9 million.

Kotsovolos

In Greece, Kotsovolos total sales were £295.6 million (2005/06: £262.7 million)
with like for like sales up 7%. At constant exchange rates and excluding sales
from the Radio Athinae chain, the closure of which commenced in the second half,
sales growth on an equivalent basis was 17%.

On 24th May, the Group announced that following the exercise of a put option by
Fourlis Holding SA ('Fourlis'), it had acquired a further 10% interest in
Kotsovolos for a cash consideration of €22.9 million (£15.6 million). The
consideration was calculated in accordance with the pricing formula agreed at
the time the Group acquired a controlling interest in Kotsovolos in September
2004. This acquisition takes the Group's total interest in Kotsovolos to 89% of
the issued share capital. Under the terms of the original acquisition agreement,
Fourlis retained a 20% interest in Kotsovolos, which has now fallen to 10% as a
consequence of this transaction. Fourlis has the right to sell its remaining
interest to the Group from September 2008 and the Group has the right to acquire
any outstanding interest held by Fourlis from September 2009.

Since becoming part of the Group, Kotsovolos continues to improve its
performance, as Greece's leading specialist electrical retailer. It is able to
leverage the Group's scale to deliver market leading prices and ranges to its
customers. It plans to open 5 further large space out of town stores in Greece
this year, taking the total to 14 and it continues to rationalise the legacy
store portfolio of smaller retail units to provide customers with new and
exciting retail environments. Kotsovolos now operates 85 stores across the
country, of which 6 are franchises. Gross margins in Kotsovolos were in line
with last year.

CENTRAL EUROPE

In Central Europe our Electro World operations continue to perform well with
total sales growth at constant exchange rates of 36% to £160.3 million (2005/06:
£118.7 million). Underlying investment operating losses were £9.3 million (2005/
06: £9.9 million).

The Group continues to invest across these important growth markets. In Poland,
Electro World now operates from 5 stores and all performed well. In Hungary,
Electro World operates from 7 stores and continued to make progress, despite a
difficult economic and political environment.

An important milestone was achieved by Electro World this year with the
operations in Czech Republic delivering a first time profit contribution from
the 12 stores.

COMPUTING DIVISION

Total sales in the Computing division were up 8% to £2,197.8 million (2005/06:
£2,039.8 million) with like for like sales up 3%. Underlying operating profit
was £96.6 million (2005/06: £107.2 million).

UK Computing

UK Computing comprises PC World, PC World Business and The TechGuys. Total sales
were up 6% at £1,850.8 million (2005/06: £1,752.3 million) with like for like
sales up 4%. Underlying operating profit was £124.8 million (2005/06: £129.4
million), including an investment of approximately £4 million in The TechGuys.

PC World continues to experience high levels of deflation in core hardware
products, however this was offset by strong sales growth, in particular in
laptops. PC World continues to deliver leading levels of attachments to its
hardware sales, however with laptops becoming a larger part of the sales mix
there has been a negative effect on the gross margin. The overall UK computer
hardware market grew by 7% in value, and PC World grew its share. Seven new PC
World stores were opened during the period.

PC World has been at the forefront of some of the Group's customer service
initiatives with [email protected] providing customers the 'Best of Both Worlds', as
well as through the introduction of team bonuses based on store performance and
removal of individual commissions. The launch of The TechGuys also helps PC
World to continue to deliver high levels of customer satisfaction. The
rebranding of all 157 PC advice clinics to The TechGuys is expected to be
complete in the first quarter of the new financial year. As a part of the
rebranding process all PC World stores are undergoing a comprehensive service
transformation programme, which includes further training and actions to improve
customer service.

During the year the PC World Business operations were brought together under one
unit, DSGi Business. This encompasses the PC World Business operations in-store,
over the telephone and online, together with the Equanet managed account
business and the MacWarehouse business supplying Apple products. This
integration will allow DSGi Business to reduce its operational costs
substantially and better align its operations with its customer base. During the
year DSGi Business sales grew by 8% to £407.3 million (2005/06: £376.5 million).

International Computing

PC City total sales were up 22% at constant exchange rates to £347.0 million
(2005/06: £287.5 million). The product trends across mainland Europe were
similar to those in the UK, with laptops and flat panel televisions selling
well.

Progress for the PC City operations was impacted by the weak performance of PC
City in France. The Group is exiting store based operations in France and
focusing on the e-tailing opportunities in that market. As previously reported,
the total costs associated with this closure are expected to amount to some £38
million of which approximately £20 million will be a cash cost.

Underlying investment operating losses were impacted as a result of these
changes and were £28.2 million (2005/06: £22.2 million) for PC City as a whole.

Excluding the operations in France, PC City grew total sales by 26% to £296.5
million with a strong performance from PC City Spain which has delivered a full
year of profit following good sales and margin growth from its 29 stores.

PC City in Italy and Sweden continue to perform in line with expectations with
sales growth of over 40% in each country operating from 10 and 9 stores
respectively.


E-COMMERCE DIVISION

This is the newest division of the Group and comprises Dixons.co.uk and
Pixmania.com. Total sales for the e-commerce division were £451.3 million (2005/
06: £26.3 million). Underlying operating profit was £1.2 million (2005/06:
£nil).

Just prior to the start of the year the Group transitioned the Dixons brand into
a pure-play e-tailer and it has had a very successful first year growing sales
by 182%. It has expanded the ranges and categories available which now account
for over a quarter of Dixons.co.uk's sales as well as helping to increase the
average transaction value.

Year on year Pixmania grew its sales by 42%. In March the Group announced that
Pixmania's operating profits this year would be impacted by fraud and control
issues in its supply chain operations. The Board is confident that these issues
have now been resolved.

During the second half of the year the range of products offered through
Pixmania was expanded to include Group ranges of computing and vision products,
particularly in France. Further ranges and categories will be introduced into
Pixmania in more countries during 2007 and the Board remains excited about the
opportunities for this business as part of the Group. The business will benefit
from Group buying, supply chain and logistics infrastructure. The acquisition of
the 77% interest in FotoVista S.A. the parent company of Pixmania has brought
expertise into the Group that is being used in the Group's other internet and
multi-channel operations.

CUSTOMER SERVICE

During the year, the Group took a number of actions to improve the shopping
experience and make life easier for our customers. We reduced complexity,
improved the range of services, simplified the information we provide and
changed the way in which store colleagues are rewarded.

The Group implemented a pioneering employee engagement and training initiative
in Currys stores in the UK. The programme is designed to foster a commitment to
teamwork in stores that improves motivation, spreads workload equitably and
delivers measurable improvements in customer satisfaction. This year's
authoritative Verdict report, 'How Britain Shops Electricals', pointed to Currys
achieving the biggest gains in customer loyalty of any of the retailers
profiled. The initiative has also been implemented in the Group's national
distribution operation in the UK.

The Group completed the removal of individual commission from its PC World and
Currys stores in the UK, replacing the traditional scheme with a new team bonus,
based on total store performance and customer service. This major change in
reward and store culture has been well received by store colleagues and has
delivered measurable improvements in customer satisfaction.

In September, the Group launched The TechGuys, the UK's first and only truly
national digital support service for UK homes. The TechGuys became the umbrella
brand for the Group's existing service operations. This service is now available
to owners of consumer electronics and computing equipment regardless of where
they bought their technology. This national operation combines a mobile field
force, instore support centres at PC World, a national call centre in Nottingham
and trials of standalone support centres on major commuter routes. Rebranding
the advice and support centres in PC World stores created an opportunity to
introduce a new training programme for in-store TechGuys to ensure we provide
customers with experienced technicians with first-rate customer service skills.

The Group is reviewing opportunities to extend the TechGuys brand outside the UK
and to provide TechGuys branded services to business customers. Other
initiatives include the introduction of a convenient remote fix service that
enables technicians to repair customers' PCs remotely via a broadband
connection.

The Group made major progress with the development of its international buying
operations. The goal is to combine our buying power and standardise our terms
for products on a pan-European basis. This will strengthen our competitive
retail price position in all of the countries in which we trade, delivering
substantial benefits and savings to customers.

The Group launched trials of new format PC World stores in south-east England as
part of PC World's mission to transition the business from a focus on computers
to a wider range of computing products. The new stores have been fully
remodelled. The focus is on helping customers to understand the potential of the
products we sell, by giving practical demonstrations of the features and
benefits. We are making further modifications to the format of these stores that
we will test before undertaking a full roll-out of the new format.

In PC World stores, we also invested in an out-of-hours replenishment programme
to improve stock availability and maximise the customer-facing time available to
store colleagues. This was particularly successful during peak season.

The Group completed the implementation of its multi-channel retail offering in
the UK, adding a reserve online and collect at store service to Currys. This
followed the successful earlier implementation of [email protected] at PC World, an
initiative that generates 7% of PC World's current turnover. Early indications
from Currys are that reserve and collect has been welcomed by customers,
contributing 2% of turnover in the second half of the financial year. The
service will be extended to a wider range of products in the current financial
year. Implementation is also underway in Norway and is likely to be extended to
other countries in the year ahead.

From 1st July, the Group will offer customers an in-store take back service for
end-of-life electrical products. Shoppers visiting Currys and PC World to buy a
product will be able to bring their old product back for recycling or 
refurbishment at the same time. This will apply regardless of where they bought 
their original product. In-store take back has been operating in our Nordic 
stores for several years and customer reaction has been very positive. We also
take back old products and packaging as part of our delivery service to 
customers. These services also meet our compliance obligations under the 
forthcoming electrical waste directive (WEEE).


FINANCIAL POSITION

The Group delivered underlying profit before tax of £295.1 million (2005/06:
£311.0 million), including property profits of £8.7 million (2005/06: £7.4
million). Underlying diluted EPS reduced 8% to 10.9 pence. Total Group profit
before tax was £114.1 million (2005/06: £295.9 million).

ADJUSTMENTS TO UNDERLYING RESULTS

                                          52 weeks ended  52 weeks ended

                                           28 April 2007   29 April 2006

                                                £million        £million
--------------------------                   -----------     -----------

Profit before tax                                 114.1           295.9

Add back operating items:

     Amortisation of acquired intangibles           4.7             1.8
     Distribution Network                          17.0             4.6
     Information Systems outsourcing                 -              7.0
     Electricals division operations and             
      brand portfolio                                -              6.0
     PC City France closure and re-organisation    38.4             4.8
     One off charges relating to UniEuro          115.1               -
     Other one off charges                            -             4.1
     Effect of changes in pension benefits         (4.7)              -
--------------------------                   -----------     -----------
                                                  170.5            28.3
--------------------------                   -----------     -----------

Add back financing items:

     Profit on sale of investments                    -            (2.9)
     Net fair value remeasurements                 10.5           (10.3)
--------------------------                   -----------     -----------
                                                   10.5           (13.2)
--------------------------                   -----------     -----------

Net charges to add back                           181.0            15.1
--------------------------                   -----------     -----------
Underlying profit before tax                      295.1           311.0
--------------------------                   -----------     -----------

Underlying profit before tax is reported before one off net operating costs of
£170.5 million and non-underlying financing charges of £10.5 million. A further
explanation of these charges is explained below:

   •£17.0 million in connection with the final stage of reorganisation costs
    associated with the distribution operations in UK and Italy. One off gains
    on the sale of the properties related to the distribution re-organisation
    are expected in 2007/08 financial year.

   •£38.4 million charge in respect of the closure and reorganisation of the
    PC City France operations described above.

   •£115.1 million relating to the impairment of UniEuro. Such charges
    comprise the impairment of goodwill of £98.1 million, together with a
    provision for onerous lease commitments and fixed asset write downs of £12.0
    million and £5.0 million respectively.

   •£4.7 million gain relating to changes in benefits accruing to members of
    the UK defined benefit pension scheme following changes in legislation
    concerning lump sums allowed on retirement.

   •The charge of £10.5 million relates to the net fair value remeasurement
    gains and losses on revalutation of financial instruments as required by IAS
    32 and 39. It includes a £9.3 million charge in respect of the re-valuation
    of put options held by the minority shareholder of Kotsovolos, Fourlis, who
    held 20% of the share capital at 28th April 2007. As described above, on
    24th May 2007, Fourlis exercised options amounting to 10% resulting in the
    Group now owning 89% of this business.


Free Cash Flow

In the period Free Cash Flow generated was £164.0 million, compared with £284.1
million in the previous year.

                             52 weeks ended  52 weeks ended        Change
                              28 April 2007   29 April 2006  Year on Year
                                   £million        £million      £million
---------------------------     -----------     -----------     ---------

Underlying profit before tax        295.1           311.0         (15.9)
Depreciation & amortisation         138.6           132.1           6.5
Working capital *                    57.1            94.3         (37.2)
Working capital impact of 
 pay-as-you-go customer support
 agreements                         (67.3)          (86.5)         19.2
Taxation                           (100.8)          (85.0)        (15.8)
Capital expenditure +              (136.1)         (152.7)         16.6
Sale of freehold property            51.9            33.6          18.3
Other                               (10.9)            3.4         (14.3)
---------------------------     -----------     -----------     ---------
Free Cash Flow before 
 restructuring items                227.6           250.2         (22.6)
Net (expenditure)
 / proceeds from the restructuring
 of distribution assets +           (26.8)           37.0         (63.8)
Other restructuring and one off
 items                              (36.8)           (3.1)        (33.7)
---------------------------     -----------     -----------     ---------
Free Cash Flow                      164.0           284.1        (120.1)
---------------------------     -----------     -----------     ---------

* Working capital includes dividend payments to minority shareholders of £nil in
the period (2005/06: £8.2 million).

+ Capital expenditure excludes £31.1 million relating to the restructuring of
distribution assets in the UK.

Underlying working capital improvements in the period were £57.1 million (2005/
06: £94.3 million), driven by higher stock turns and creditor days. The Group
achieved its target of zero average paid days stock across the year. The
introduction of the monthly pay-as-you-go customer support agreements
proposition impacted working capital by £67.3 million (2005/06: £86.5 million).

Capital expenditure was £136.1 million (2005/06: £152.7 million). Cash generated
from the sale of freehold property was £51.9 million (2005/06: £33.6 million).
In addition, in the period, £4.3 million cash was generated from properties sold
relating to the restructure of the UK distribution network.

Available net funds

At 28 April 2007 the Group had available net funds (which exclude funds held
under trust for customer support agreement liabilities) of £113.7 million,
compared with £246.1 million in the previous year.

                                      52 weeks ended      52 weeks ended
                                       28 April 2007       29 April 2006
                                            £million            £million
                                         -----------         -----------

Opening net funds                            439.6               523.9
Free Cash Flow                               164.0               284.1
 Dividends                           (157.5)             (149.9)
 Share buy back programme                 -              (107.6)
 Acquisitions & disposals            (199.8)              (68.7)
 Pension contribution                 (50.0)                  -
 Other items                           28.6               (42.2)
                                    ----------------     ---------------
Other movements in net funds                (378.7)             (368.4)
                                         -----------         -----------
Closing net funds                            224.9               439.6
Less: Funds held under trust                (111.2)             (193.5)
                                         -----------         -----------
Available net funds                          113.7               246.1
                                         -----------         -----------

Movements in net funds include £157.5 million dividend payments, £199.8 million
representing the net cash impact of acquisitions and disposals, principally
£179.3 million for FotoVista S.A., and £50.0 million for the special pension
contribution made in the period. Other items include £20.8 million inflow from
the issue of ordinary share capital.

Dividends

The directors have proposed a final dividend of 6.85 pence per share (2005/06:
6.53 pence), an increase of 5%. Subject to shareholder approval at the AGM on
5th September, it will be paid on 28th September 2007 to shareholders registered
on 24th August 2007. This gives total dividends for the year of 8.87 pence (2005
/06: 8.45 pence) an increase of 5%. The Group's policy is to increase dividends
in line with earnings over time however in the short term this will be balanced
against rebuilding dividend cover.

TAX

The Group's tax rate on underlying profit was 30% (2005/06: 28.8%). The increase
in the tax rate reflects the reduced benefit of lower overseas tax rates.

COST SAVINGS

In the period, the Group delivered £25 million of cost savings and is targeting
further savings of £25 million for 2007/08. Of these initiatives the outsourcing
of the Group's IS service and the reorganisation of the logistics infrastructure
are delivering savings over a number of years as follows:

   •The outsourcing of the IS services will save the Group approximately £10
    million per annum. As a result of the phasing of this contract the Group
    realised £5 million of this during the 2006/07 financial year. The full
    benefits of this contract are expected to be realised during the 2007/08
    financial year.
   •The reorganisation of the Group's logistics infrastructure in the UK and
    in Italy is expected to save approximately £20 million per annum. This is a
    significant change programme over a number of years, and is expected to be
    completed during the first quarter of the new financial year. In 2006/07 £5
    million of this benefit was realised as the changes were implemented. In
    2007/08 this is expected to rise to £15 million with the full benefits being
    realised in the 2008/09 financial year.

The balance of the cost savings initiatives are being delivered from a number of
areas within the Group including a programme to rationalise the retail support
functions under a 'One Group' structure.

PENSIONS

At 28 April 2007, excluding deferred tax benefits, the deficit of the UK defined
benefit pension scheme amounted to £38.4 million (29 April 2006 £141.7 million).
Including deferred tax benefits the deficit amounted to £17.0 million (29 April 
2006 £99.8 million). The Group has been implementing a programme of changes to
pension arrangements in order to address the deficit over the longer term. These
have included the gradual increase in the Group contribution rate which is
currently 12.9 per cent and the change of benefits to operate on a career
average earnings basis rather than 'final salary' for future service. The
deficit has mainly been reduced by a special contribution made by the Group of
£50 million in March 2007 coupled with a significant increase in the discount
rate applied to liabilities in the period which reflects returns on long term
gilts. 

The charge to operating profit for the scheme was £11.8 million (2005/06:
£18.3 million) and includes the one off benefit of £4.7 million relating to the
change in legislation concerning lump sum payments allowed on retirement. 

Also included in the income statement is a net financing income of £4.5 million
(2005/06: cost of £0.6 million) which represents the expected return on assets 
of the scheme, based on market conditions prevailing at the start of the 
financial period, offset by the unwinding of the discount applied to the 
liabilities of the scheme. The defined benefit section of the UK pension scheme
was closed to new entrants on 1 September 2002.

FINANCIAL CALENDAR

Following the adoption by the UK Listing Authority of the European Union's
Transparency Directive, the Group has reviewed the impact on its reporting
calendar. As a result of the new timing restrictions applying to reporting dates
the Group will now report interim results in respect of a 24 week period rather
than the previous 28 week period.

The financial calendar for the 2007/08 financial year will comprise a 53 week
period due to the effect of the leap year falling in 2008. As a result the
second half for this financial year will be 29 weeks and the draft financial
calendar in chronological order from the date of this announcement will now be
as follows:-

5 September 2007     AGM

                     Trading Statement in respect of the 16 week 
                     period to 18 August 2007

13 October 2007      Half year end

24 October 2007      Trading Statement for the 24 week period to 13th October
                     2007

28 November 2007     Interim results announcement

16 January 2008      Trading Statement for the 12 week period to 
                     5th January 2008

3 May 2008           Financial year end

14 May 2008          Trading Statement in respect of the full year.

25 June 2008         Preliminary Results announcement




OUTLOOK

Commenting on the outlook John Clare said:

'The new year has started well, despite the strong comparatives due to last 
year's World Cup and very strong television sales. Whilst we remain cautious 
about the prospects for consumer expenditure in many of our markets, including 
the UK, I am confident that we will continue to offer an exciting range of new 
technology products that our customers will find appealing.

I am also satisfied that this Group is positioned to do well within its markets.
The Group's clear focus is now on getting overall earnings growth back on
track.'


                                    - ENDS -



Maylands Avenue                                               John Clare

Hemel Hempstead                                              Group Chief
                                                               Executive

Hertfordshire HP2 7TG                                       20 June 2007

--------------------------------------   -------------------------------



Report and Accounts publication date                        24 July 2007

Ex dividend date for final dividend                       22 August 2007

Record date for final dividend                            24 August 2007

Annual General Meeting                                  5 September 2007

Proposed final dividend payment date                   28 September 2007

Copies of the Report and Accounts will be available from the Company
Secretary at the above address and on the Group's website at http://
www.dsgiplc.com

------------------------------------    ---------------------------------





CONSOLIDATED INCOME STATEMENT



                                                  52 weeks ended 28 April 2007             52 weeks ended 29 April 2006
--------------------                           -------      -------    -------          -------       -------    -------
                                                               Non-                                      Non-
                                           Underlying*  underlying*      Total      Underlying*   underlying*     Total
                                    Note      £million     £million   £million         £million      £million  £million
Continuing Operations
Revenue                               2        7,929.7         -       7,929.7          6,984.4          -      6,984.4
--------------------                           -------      -------    -------          -------       -------    -------

Profit from operations before associates         271.2      (170.5)      100.7            284.6        (28.3)     256.3
Share of post tax results of associates            2.4         -           2.4              0.3          -          0.3
--------------------                           -------      -------    -------          -------       -------    -------
Operating profit                      2          273.6      (170.5)      103.1            284.9        (28.3)     256.6

Profit on sale of investments                      -           -           -                -            2.9        2.9
Finance income                                    94.5        12.7       107.2             91.4         15.0      106.4
Finance costs                                    (73.0)      (23.2)      (96.2)           (65.3)        (4.7)     (70.0)
--------------------                           -------      -------    -------          -------       -------    -------
Net finance income / (costs)          4           21.5       (10.5)       11.0             26.1         13.2       39.3
--------------------                           -------      -------    -------          -------       -------    -------

Profit before tax                                295.1      (181.0)      114.1            311.0        (15.1)     295.9
--------------------                           -------      -------    -------          -------       -------    -------
Income tax expense                    5          (88.5)       11.2       (77.3)           (89.2)         1.0      (88.2)
--------------------                           -------      -------    -------          -------       -------    -------
Profit after tax - continuing operations         206.6      (169.8)       36.8            221.8        (14.1)     207.7

Net loss on disposals                              -         (28.8)      (28.8)            -             -          -
(Loss) /profit after tax from
discontinued operations                            -          (5.6)       (5.6)            -             4.0        4.0
--------------------                           -------      -------    -------          -------       -------    -------
(Loss) /profit after tax -
discontinued operations                            -         (34.4)      (34.4)            -             4.0        4.0
--------------------                           -------      -------    -------          -------       -------    -------

--------------------                           -------      -------    -------          -------       -------    -------
Profit for the period                           206.6       (204.2)        2.4           221.8         (10.1)     211.7
--------------------                           -------      -------    -------          -------       -------    -------

Attributable to:
Equity shareholders of the parent company       203.0       (198.0)        5.0           220.6          (4.7)     215.9
Minority interests                                3.6         (6.2)       (2.6)            1.2          (5.4)      (4.2)
--------------------                           -------      -------    -------          -------       -------    -------
                                                206.6       (204.2)        2.4           221.8         (10.1)     211.7
--------------------                           -------      -------    -------          -------       -------    -------
Earnings per share (pence)           6
--------------------                           -------      -------    -------          -------       -------    -------
Basic   - total                                                            0.3p                                    11.7p
Diluted - total                                                            0.3p                                    11.6p
Basic   - continuing operations                                            1.8p                                    11.2p
Diluted - continuing operations                                            1.8p                                    11.1p
--------------------                           -------      -------    -------          -------       -------    -------
Underlying earnings per share (pence)6
--------------------                           -------      -------    -------          -------       -------    -------
Basic     - continuing operations                11.1p                                    12.0p
Diluted   - continuing operations                10.9p                                    11.8p
--------------------                           -------      -------    -------          -------       -------    -------
    * 'Underlying' profit and earnings per share measures exclude the impact of amortisation of acquired intangibles, 
      exceptional asset impairments, restructuring and other one-off items, profit on sale of investments, net fair
      value remeasurements of financial instruments and, where applicable, discontinued operations. Such items are 
      described as 'Non-underlying'. Further information on these items is shown in notes 3,4 and 5.

CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE


          ------------------------------                                                       ---------        --------
                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
          ------------------------------                                                       ---------        --------

Profit for the period                                                                              2.4           211.7

Actuarial gains on defined benefit pension scheme                                                 45.7            47.1
Cash flow hedges                                                                 
   Fair value remeasurement gains                                                                  7.9             8.3
   Losses transferred to carrying amount of inventories                                           (3.1)           (4.4)
   Losses transferred to income statement                                                         (5.4)           (7.8)
Net investment hedges 
   Fair value measurements                                                                        13.2           (18.7)
Investments 
   Fair value measurement losses                                                                  (0.1)           (0.3)
Tax on items taken directly to equity                                                            (18.1)           (7.2)
Currency translation movements                                                                   (24.5)           27.1
          ------------------------------                                                       ---------        --------
Net income recognised directly in equity                                                          15.6            44.1
          ------------------------------                                                       ---------        --------
Total recognised income and expense for the period                                                18.0           255.8
          ------------------------------                                                       ---------        --------
Attributable to:
Equity shareholders of the parent company                                                         20.7           259.8
Minority interests                                                                                (2.7)           (4.0)
          ------------------------------                                                       ---------        --------
                                                                                                  18.0           255.8
          ------------------------------                                                       ---------        --------




CONSOLIDATED BALANCE SHEET

        ------------------------------  ----------                                              ---------       --------
                                              Note                                          28 April 2007  29 April 2006
                                                                                                 £million       £million
        ------------------------------  ----------                                              ---------       --------
        Non current assets
        Goodwill                                                                                 1,057.1        1,087.6
        Intangible assets                                                                          127.7          109.7
        Property, plant & equipment                                                                580.6          641.4
        Investments in associates                                                                   21.8            2.2
        Trade and other receivables                                                                 40.2           50.4
        Deferred tax assets                                                                         82.2          134.4
        ------------------------------  ----------                                              ---------       --------
                                                                                                 1,909.6        2,025.7
        ------------------------------  ----------                                              ---------       --------
        Current assets
        Inventories                            7                                                 1,030.6          873.4
        Trade and other receivables                                                                393.3          370.4
        Income tax receivable                                                                       16.6              -
        Short term investments                                                                     185.9          232.6
        Cash and cash equivalents                                                                  440.5          617.5
        ------------------------------  ----------                                              ---------       --------
                                                                                                 2,066.9        2,093.9
        ------------------------------  ----------                                              ---------       --------
        Total assets                                                                             3,976.5        4,119.6
        ------------------------------  ----------                                              ---------       --------
        Current liabilities
        Bank overdrafts                                                                             (5.7)             -
        Borrowings                                                                                  (2.9)          (8.8)
        Obligations under finance leases                                                            (1.0)          (0.5)
        Trade and other payables                                                                (1,807.5)      (1,644.2)
        Income tax payable                                                                         (19.6)         (67.9)
        Provisions                                                                                 (32.7)         (27.7)
        ------------------------------  ----------                                              ---------       --------
                                                                                                (1,869.4)      (1,749.1)
        ------------------------------  ----------                                              ---------       --------
        Net current assets                                                                         197.5          344.8
        ------------------------------  ----------                                              ---------       --------
        Non current liabilities
        Borrowings                                                                                (290.4)        (301.1)
        Obligations under finance leases                                                          (101.5)        (100.1)
        Retirement benefit obligations                                                             (38.4)        (141.7)
        Other payables                                                                            (335.2)        (387.0)
        Deferred tax liabilities                                                                   (18.9)          (6.1)
        Provisions                                                                                 (18.4)         (10.8)
        ------------------------------  ----------                                              ---------       --------
                                                                                                  (802.8)        (946.8)
        ------------------------------  ----------                                              ---------       --------
        Total liabilities                                                                       (2,672.2)      (2,695.9)
        ------------------------------  ----------                                              ---------       --------
        ------------------------------  ----------                                              ---------       --------
        Net assets                                                                               1,304.3        1,423.7
        ------------------------------  ----------                                              ---------       --------
        Capital and reserves                   8
        Called up share capital                                                                     46.1           45.6
        Share premium account                                                                      166.2          145.9
        Other reserves                                                                            (420.8)          26.1
        Retained earnings                                                                        1,490.2        1,196.8
        ------------------------------  ----------                                              ---------       --------
        Equity attributable to equity  holders                                                    
        of the parent company                                                                    1,281.7        1,414.4
        Equity minority interests                                                                   22.6            9.3
        ------------------------------  ----------                                              ---------       --------
        Total equity                                                                             1,304.3        1,423.7
        ------------------------------  ----------                                              ---------       --------

    The financial statements were approved by the directors on 20 June 2007 and
    signed on their behalf by:



        John Clare                          Kevin O'Byrne

        Group Chief Executive               Group Finance Director


    CONSOLIDATED CASH FLOW STATEMENT

    ---------------------------------  -----                                                     --------       --------
                                                                                    Note         52 weeks       52 weeks
                                                                                                    ended          ended
                                                                                            28 April 2007  29 April 2006
                                                                                                 £million       £million
    ---------------------------------  -----                                                     --------       --------
    Operating activities - continuing operations
    Cash generated from operations                                                 *  10          358.0          422.8
    Special contribution to defined benefit pension scheme                                        (50.0)             -
    Income tax paid                                                                *             (100.8)         (85.0)
    ---------------------------------  -----                                                     --------       --------
    Net cash flows from operating activities                                                      207.2          337.8
    ---------------------------------  -----                                                     --------       --------
    Investing activities - continuing operations
    Purchase of property, plant & equipment and other intangibles                  *             (167.0)        (196.4)
    Purchase of subsidiaries                                                                     (185.0)         (56.8)
    Purchase of investment in associate                                                           (16.8)             -
    Purchase of non-current investments                                                               -           (3.9)
    Interest received                                                              *               47.6           53.3
    Decrease in short term  investments                                                            46.9           74.7
    Disposals of property, plant & equipment and other intangibles                 *               56.2           69.2
    Disposals of non-current investments                                                              -            8.2
    Proceeds from sale of discontinued operations                                                  33.8              -
    ---------------------------------  -----                                                     --------       --------
    Net cash flows from investing activities                                                     (184.3)         (51.7)
    ---------------------------------  -----                                                     --------       --------
    Financing activities - continuing operations
    Issue of ordinary share capital                                                                20.8            2.5
    Purchase of own shares                                                                            -         (109.9)
    Capital element of finance lease payments                                      *               (0.2)          (0.3)
    Interest element of finance lease payments                                     *               (7.0)          (4.4)
    Decrease in borrowings due within one year                                                     (6.6)         (11.8)
    Decrease in borrowings due after more than one year                                            (0.5)          (3.3)
    Cash received on inception of finance leases                                   *                  -           45.4
    Interest paid                                                                  *              (22.8)         (20.5)
    Equity dividends paid                                                                        (157.5)        (149.9)
    ---------------------------------  -----                                                     --------       --------
    Net cash flows from financing activities                                                     (173.8)        (252.2)
    ---------------------------------  -----                                                     --------       --------

    (Decrease) / Increase in cash and cash equivalents                            (i)
    Continuing operations                                                                        (150.9)          33.9
    Discontinued operations                                                                       (30.0)         (13.5)
    ---------------------------------  -----                                                     --------       --------
                                                                                                 (180.9)          20.4

    Cash and cash equivalents at beginning  of period                             (i)  10         617.5          597.4
    Currency translation differences                                                               (1.8)          (0.3)
    ---------------------------------  -----                                                     --------       --------
    Cash and cash equivalents at end of   period                                  (i)  10          434.8          617.5
    ---------------------------------  -----                                                     --------       --------

    Free Cash Flow                                                               (ii)              164.0          284.1
    ---------------------------------  -----                                                     --------       --------
 i. For the purposes of this cash flow statement, cash and cash equivalents comprise those items disclosed as 'cash and
    cash equivalents' on the face of the balance sheet, less overdrafts, which are classified within current liabilities
    on the face of the balance sheet. A reconciliation to the balance sheet amounts is shown in note 10.
ii. Free Cash Flow comprises those items marked * and comprises cash generated from continuing operations before 
    special pension contributions, plus net finance income, cash flows related to finance leases, less income tax paid
    and net capital expenditure. The directors consider that 'Free Cash Flow' provides additional useful information to 
    shareholders in respect of cash generation and is consistent with how business performance is measured
    internally.

    NOTES TO THE FINANCIAL INFORMATION


    1 Basis of preparation

    The financial information, which comprises the consolidated income statement, consolidated statement of recognised 
    income and expense, consolidated balance sheet, consolidated cash flow statement and extracts from the notes to the 
    accounts for 28 April 2007 and 29 April 2006, has been prepared in accordance with the accounting policies set out 
    in the full financial statements.

    The financial information set out in this announcement does not constitute statutory accounts within the meaning of
    Section 240 of the Companies Act 1985 and is an abridged version of the Group's financial statements for the
    52 weeks ended 28 April 2007 which were approved by the directors on 20 June 2007. Statutory accounts for the 
    52 weeks ended 29 April 2006 have been delivered to the Registrar of Companies and those for the period ended 28
    April 2007 will be delivered following the Company's annual general meeting. The auditors have reported on those 
    accounts, their reports were unqualified and did not contain statements under Section 237(2) or (3) of the Companies
    Act 1985.

    The consolidated financial statements have been prepared in accordance with International Financial Reporting 
    Standards (IFRS) as adopted by the EU and IFRS issued by the International Accounting Standards Board (IASB) and 
    those parts of the Companies Act 1985 applicable to those companies reporting under IFRS. 

    The consolidated financial statements incorporate the financial statements of the Company and its subsidiary 
    undertakings for the 52 weeks ended 28 April 2007. Comparative figures are for the 52 weeks ended 29 April 2006.

    The Directors consider that the 'underlying' performance measures, together with their associated income statement
    provide additional useful information for shareholders on underlying performance of the business, and are consistent
    with how business performance is measured internally. It is not a recognised profit measure under IFRS and may not
    be directly comparable with 'adjusted' profit measures used by other companies.  Such measures exclude the
    amortisation of acquired intangibles, exceptional asset impairments, restructuring and other one-off items, profit
    on sale of investments, fair value remeasurements of financial instruments and, where applicable, discontinued
    operations.

    2 Segmental analysis

    On 5 April 2006 the Group announced that the Dixons brand was to focus exclusively on e-commerce operations. As a 
    result, the e-commerce operations of Dixons together with the operations of FotoVista which were acquired
    during the period, now form an e-commerce division. Comparative figures for the Electricals division have been 
    restated to reflect the change in management responsibility for the e-commerce activities of Dixons.

    During the period, the Group completed the sale of its 60 per cent stake in The Link Stores Limited (The Link) 
    together with the sale of Genesis. These businesses comprised the Communications division which operated solely
    within the UK and have been treated as discontinued operations.

    The Group is now managed and reported according to three operating divisions: Computing, Electricals and e-commerce.

    These divisions are the basis on which the Group reports its primary segmental information. The principal activities
    of each division are as follows:

   •The Computing division is engaged in the retail and business to business sale of computer hardware and software, 
    associated peripherals and services and related financial and after-sales services. The division operates in the
    UK and Southern Europe (which also includes the small Nordic operations).

   •The Electricals division is engaged in the retail sale of high technology consumer electronics, domestic appliances,
    photographic equipment and related financial and after-sales services. The division operates in the UK,
    Ireland, the Nordic region, Southern Europe and Central Europe.

   •The e-commerce division is engaged in activities being the on-line retail sale of high technology consumer 
    electronics, domestic appliances, photographic equipment and related financial and after-sales services. The
    division operates in the UK, Ireland and across continental Europe.

    Corporate centre and shared services includes the residual Codic property operations in Germany retained by the 
    Group following the sale of the remainder of the European Property division in 2003. Corporate Centre and
    Shared Services assets and liabilities mainly comprise freehold land and buildings, investments, cash and cash 
    equivalents, borrowings, net retirement benefit obligations, inter segment eliminations and related tax
    assets and liabilities.

    The Group's secondary reporting segments are geographical and comprise four territories, the UK & Ireland, the 
    Nordic region, Southern Europe and Central Europe. There were no material exports from the locations in which
    the Group operates.

 
    Primary segments - Business
                                                                                            52 weeks ended 28 April 2007
------------------      -------    -------   -------  -------  -------  --------  --------  --------  --------  ------- 
                                                                                                     Corporate
                                                                                                      centre &
                                                                                                        shared 
                                                       Computing       Electricals    e-commerce      services    Total 
                                                        £million          £million      £million      £million £million 
-------------------------                               -------          --------      --------      --------   --------
  Income statement - continuing operations
  Revenue                                                2,197.8           5,280.5         451.3          0.1   7,929.7
-------------------------                               -------          --------      --------      --------   --------
  Underlying operating profit / (loss) before associates    96.6             190.4           1.2        (17.0)    271.2
  Share of post tax result of associates                      -                2.4            -            -        2.4
-------------------------                               -------          --------      --------      --------   --------
  Underlying operating profit / (loss)                      96.6             192.8           1.2        (17.0)    273.6 
  Amortisation of acquired intangibles                      (1.4)             (1.0)         (2.3)          -       (4.7)
  Net restructuring charges                                (38.4)            (17.0)           -            -      (55.4)
  Other one off charges - impairment                          -             (103.1)           -            -     (103.1)
                        - other                               -              (12.0)           -            -      (12.0)
  Effect of changes in pension benefits                      1.4               2.4            -           0.9       4.7
-------------------------                               -------          --------      --------      --------   --------
  Operating profit / (loss)                                 58.2              62.1          (1.1)       (16.1)    103.1
-------------------------                               -------          --------      --------      --------   --------

 Underlying operating profit is stated after recognising net property profits of £8.7 million in Corporate centre and 
 shared services.

  
                                                                                           52 weeks ended 29 April 2006
-------------------------                               -------          --------      --------      --------   --------
                                                                                                     Corporate
                                                                                                      centre &
                                                                                                        shared 
                                                      Computing       Electricals    e-commerce      services    Total 
                                                       £million          £million      £million      £million £million 
-------------------------                               -------          --------      --------      --------   --------
  Income statement - continuing operations
  Revenue                                               2,039.8           4,912.1          26.3           6.2   6,984.4
-------------------------                               -------          --------      --------      --------   --------
  Underlying operating profit / (loss) before associates  107.2             197.3            -          (19.9)    284.6
  Share of post tax result of associates                    -                 0.3            -             -        0.3
-------------------------                               -------          --------      --------      --------   --------
  Underlying operating profit / (loss)                    107.2             197.6            -          (19.9)    284.9
  Amortisation of acquired intangibles                     (1.2)             (0.6)           -             -       (1.8)
  Net restructuring charges                                (9.7)            (12.7)           -             -      (22.4)
  Other one off charges - impairment                        -                  -             -           (1.3)     (1.3)
                        - other                             -                  -             -           (2.8)     (2.8)
  Effect of changes in pension benefits                     -                  -             -             -        - 
-------------------------                               -------          --------      --------      --------   --------
  Operating profit / (loss)                                96.3             184.3            -          (24.0)    256.6
-------------------------                               -------          --------      --------      --------   --------

 Underlying operating profit is stated after recognising net property profits of £7.4 million in Corporate centre and 
 shared services.

  Secondary segments - Geographical

                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
    ------------------------------                                                            ----------       ---------
  Revenue - continuing operations 
  UK & Ireland                                                                                  4,790.3         4,521.5
  Nordic                                                                                        1,442.5         1,155.1
  Southern Europe                                                                               1,492.7         1,182.9
  Central Europe                                                                                  204.1           118.7
  Corporate centre & shared services                                                                0.1             6.2
    ------------------------------                                                            ----------       ---------
  Total                                                                                         7,929.7         6,984.4
    ------------------------------                                                            ----------       ---------

    3 Non-underlying items

                                                                             Note         52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
------------------------------                                                                ----------       ---------
Included in operating profit:
     Amortisation of acquired intangibles                                                          (4.7)           (1.8)
     Net restructuring charges                                                 (i)                (55.4)          (22.4)
     Other one off charges including impairment                               (ii)               (115.1)           (4.1)
     Effect of changes in pension benefits                                   (iii)                  4.7               -
------------------------------                                                                ----------       ---------
                                                                                                 (170.5)          (28.3)
Included in net finance income:
     Profit on sale of investments                                            (iv)                   -              2.9
     Net fair value remeasurements  on financial instruments                   (v)                (10.5)           10.3
------------------------------                                                                ----------       ---------
                                                                                                  (10.5)           13.2

------------------------------                                                                ----------       ---------
     Total                                                                                       (181.0)          (15.1)
------------------------------                                                                ----------       ---------
 
i. Net restructuring charges:
                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
------------------                                        -------     --------       --------    --------        -------
                                                     Net property        Asset          Other 
                                                             loss   impairment        charges      Total           Total
                                                         £million     £million       £million    £million       £million
------------------                                        -------     --------       --------    --------        -------
    Distribution network transformation                     (1.9)        (3.0)        (12.1)       (17.0)         (4.6)
    Information systems outsourcing                           -            -              -            -          (7.0)
    Electricals division operations and brand portfolio       -            -              -            -          (6.0)
    PC City France closure and reorganisation               (5.5)       (19.4)        (13.5)       (38.4)         (4.8)
------------------                                        -------     --------       --------    --------        -------
                                                            (7.4)       (22.4)        (25.6)       (55.4)        (22.4)
------------------                                        -------     --------       --------    --------        -------
    Net property profits include gains and losses on sale of properties associated directly with the reorganisation 
    plans net of onerous lease costs. Asset impairments relate to intangible assets, items of property,
    plant & equipment which are to be eliminated from the business over a shorter period than their current useful 
    expected lives and inventories. Other charges are predominantly employee severance and incremental
    transition costs.

ii. Other one-off charges including impairment: Such charges are defined as those costs deriving from 
    non-restructuring events outside the ordinary course of business together with exceptional asset impairments. For 
    2006/07 such charges relate to the impairment of UniEuro and comprise £98.1 million and £5.0 million for the 
    impairment of goodwill and property, plant & equipment, respectively together with £12.0 million of onerous lease 
    costs. Property, plant & equipment relates to assets in individual under performing stores connected with the 
    impairment review of UniEuro as a whole (2005/06 £2.8 million related to remedial work associated with damage 
    caused to the Group's head office premises by the Buncefield oil depot explosion in December 2005, which is the 
    subject of an insurance claim, together with £1.3 million relating to the impairment of a small minority investment.

iii.Effect of changes in pension benefits: Relates to the change in actuarial valuation methodology concerning 
    commutations.

iv. Profit on sale of investments: 2005/06 related to profit arising from the sale of a minority shareholding in 
    Monstermob Group PLC.

 v. Net fair value remeasurement gains and losses on revaluation of financial instruments: Items excluded from 
    underlying finance income and expense represent the gains and losses arising from the revaluation of derivative
    financial instruments under methodologies stipulated by IAS 39 compared with those on an accruals basis. IAS 39 
    requires gains and losses on the value of derivative contracts to be taken through the income statement based on 
    their value at the balance sheet date. Included within this amount is a remeasurement loss relating to a put option 
    held by a minority shareholder. Such a treatment is a form of revaluation gain or loss created by an assumption that
    the derivatives will be settled before their maturity. Such gains and losses are unrealised and in the directors' 
    view also conflict with both the commercial reasons for entering into such arrangements as well as Treasury policy 
    whereby early settlement in the majority of cases would amount to speculative use of derivatives.


4 Net finance income
    
                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
    ------------------------------                                                            ----------       ---------
Profit on sale of investments                                                          *             -              2.9

Bank and other interest receivable                                                                 51.7            57.0 
Expected return on pension scheme assets                                                           42.8            34.4
Fair value remeasurement gains on financial instruments                                *           12.7            15.0
    ------------------------------                                                            ----------       ---------
Finance income                                                                                    107.2           106.4
    ------------------------------                                                            ----------       ---------
6.125% Guaranteed Bonds 2012 interest and related charges                                         (18.6)          (18.6)
Bank loans, overdrafts and other interest payable                                     (i)          (9.1)           (7.3)
Finance lease interest payable                                                                     (7.0)           (4.4)
Interest on pension scheme liabilities                                                            (38.3)          (35.0)
Fair value remeasurement losses on financial instruments                                *         (23.2)           (4.7)
    ------------------------------                                                            ----------       ---------
Finance costs                                                                                     (96.2)          (70.0)
    ------------------------------                                                            ----------       ---------

Total net finance income                                                                           11.0            39.3
    ------------------------------                                                            ----------       ---------
    ------------------------------                                      
Underlying total net finance income                                                  (ii)          21.5            26.1
    ------------------------------                                                            ----------       ---------
(i) Included within bank loans, overdrafts and other interest payable is £4.3 million arising from exchange differences 
    (2005/06 £4.8 million).
(ii) Underlying total net finance income excludes items marked *. See note 3 for a description of such items.


 5. Taxation

    (a) Income tax expense - continuing operations
                                                                                        52 weeks ended   52 weeks ended
                                                                                         28 April 2007    29 April 2006
                                                                                              £million         £million
    ------------------------------                                                            ----------       ---------
    Current tax:
    UK corporation tax at 30%                                                                     31.5            56.3
    Credit in respect of non-underlying items                                 *                   (9.1)              -
    ------------------------------                                                            ----------       ---------
                                                                                                  22.4            56.3
    Double tax relief                                                                                -           (22.8)
    ------------------------------                                                            ----------       ---------
                                                                                                  22.4            33.5
    Overseas taxation                                                                             23.7            21.9
    Adjustment in respect of earlier periods:
          - UK corporation tax                                                                   (16.6)           (1.9)
          - Overseas taxation                                                                      0.8             0.6
    ------------------------------                                                            ----------       ---------
                                                                                                  30.3            54.1
    Deferred tax:
    Current period                                                                                32.1            42.4
    Credit in respect of non-underlying items                                 *                   (2.1)           (1.0)
    Adjustment in respect of earlier periods:
          - UK corporation tax                                                                    10.5            (7.3)
          - Overseas taxation                                                                      6.5               -
    ------------------------------                                                            ----------       ---------

                                                                                                  47.0            34.1
    ------------------------------                                                            ----------       ---------

    ------------------------------                                                            ----------       ---------
    Total income tax expense - continuing operations                                              77.3            88.2  
    ------------------------------                                                            ----------       ---------
    
    ------------------------------                                                            ----------       ---------
    Underlying income tax expense - continuing operations                                         88.5            89.2
    ------------------------------                                                            ----------       ---------
    Underlying income tax expense excludes those items marked *.





    6 Earnings per share


        -------------------------------------                                                  ---------       ---------
                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
        -------------------------------------                                                  ---------       ---------
        Basic and diluted earnings
        Total (continuing and discontinued operations)                                              5.0           215.9
        Discontinued operations - loss/(profit) after tax                                          34.4            (4.0)
                                - minority interest                                                (6.2)           (5.4)
        -------------------------------------                                                  ---------       ---------
        Continuing operations                                                                      33.2           206.5
        -------------------------------------                                                  ---------       ---------
        Adjustments
        Amortisation of acquired intangibles                                                        4.7             1.8
        Net restructuring charges                                                                  55.4            22.4
        Other one off charges including impairment                                                115.1             4.1
        Profit on sale of investments                                                                -             (2.9)
        Effect of change in pension benefits                                                       (4.7)             -
        Net fair value remeasurements of financial instruments                                     10.5           (10.3)
        -------------------------------------                                                  ---------       ---------
                                                                                                  181.0            15.1
        Tax on adjustments                                                                        (11.2)           (1.0)
        -------------------------------------                                                  ---------       ---------
        Total adjustments (net of taxation)                                                       169.8            14.1
        -------------------------------------                                                  ---------       ---------
        -------------------------------------                                                  ---------       ---------
        Underlying basic and diluted earnings                                                     203.0           220.6
        -------------------------------------                                                  ---------       ---------

                                                                                                Million         Million
        -------------------------------------                                                  ---------       ---------
        Basic weighted average number of shares                                                 1,836.7         1,844.7
        Employee share option and ownership schemes                                                19.1            18.5
        -------------------------------------                                                  ---------       ---------
        Diluted weighted average number of shares                                               1,855.8         1,863.2
        -------------------------------------                                                  ---------       ---------
                                                                                                   Pence           Pence
        -------------------------------------                                                  ---------       ---------
        Basic earnings per share
        Total (continuing and discontinued  operations)                                             0.3            11.7
        Discontinued operations                                                                     1.5            (0.5)
        -------------------------------------                                                  ---------       ---------
        Continuing operations                                                                       1.8            11.2
        Adjustments (net of taxation)                                                               9.3             0.8
        -------------------------------------                                                  ---------       ---------
        Underlying basic earnings per share                                                        11.1            12.0
        -------------------------------------                                                  ---------       ---------
        Diluted earnings per share
        Total (continuing and discontinued operations)                                              0.3            11.6
        Discontinued operations                                                                     1.5            (0.5)
        -------------------------------------                                                  ---------       ---------
        Continuing operations                                                                       1.8            11.1
        Adjustments (net of taxation)                                                               9.1             0.7
        -------------------------------------                                                  ---------       ---------
        Underlying diluted earnings per share                                                      10.9            11.8
        -------------------------------------                                                  ---------       ---------

    Basic and diluted earnings per share are based on profit for the period attributable to equity shareholders. 
    Underlying earnings per share are presented in order to show the underlying  performance of the Group.
    Adjustments used to determine underlying earnings are further described in note 3.

    7 Inventories

        -------------------------------------                                                      ---------    --------
                                                                                                       2007        2006
                                                                                                   £million    £million
        -------------------------------------                                                      ---------    --------
        Finished goods and goods for resale                                                         1,079.7       917.4
        Provision for obsolete and slow moving goods                                                  (43.7)      (43.2)
        Impairment arising from restructuring                                                          (5.4)       (1.7)
        -------------------------------------                                                      ---------    --------
                                                                                                    1,030.6       872.5
        Properties held for development or resale                                                         -         0.9
        -------------------------------------                                                      ---------    --------
                                                                                                    1,030.6       873.4
        -------------------------------------                                                      ---------    --------

8 Reconciliation of movements in equity

---------------------                            ------    ------    ------     ------     ------     ------     ------
                                                            Share    
                                                 Share    Premium        Other  Retained              Minority     Total
                                                capital   account      Reserve  earnings  Sub total  interests    equity
                                               £million  £million     £million  £million   £million   £million  £million
---------------------                           ------    ------    ------     ------     ------     ------     ------
At 1 May 2005                                      47.3     142.1         42.6   1,165.8    1,397.8      21.5   1,419.3
Total recognised income and expense for the period   -         -         (16.0)    275.8      259.8      (4.0)    255.8
Equity dividends paid                                -         -           -      (150.2)    (150.2)       -     (150.2)
Dividend paid to minority shareholder                -         -           -         -          -        (8.2)     (8.2)
Purchase and cancellation of own shares            (1.8)       -           1.8    (107.6)    (107.6)       -     (107.6)
Investment in own shares                             -         -          (1.5)      -         (1.5)       -       (1.5)
Vesting of own shares                                -         -          (0.8)      -         (0.8)       -       (0.8)
Share based payments                                 -         -           -         8.8        8.8        -        8.8
Tax on share based payments                          -         -           -         5.6        5.6        -        5.6
Ordinary shares issued - employee options           0.1       2.4          -         -          2.5        -        2.5
                       - employee trusts             -        1.4          -        (1.4)       -          -         -
---------------------                            ------    ------    ------     ------     ------     ------     ------

At 29 April 2006                                   45.6     145.9         26.1   1,196.8    1,414.4       9.3   1,423.7

Total recognised income and expense for the period   -         -           8.7      12.0       20.7      (2.7)     18.0
Equity dividends paid                                -         -           -      (157.0)    (157.0)       -     (157.0)
Minority interests     - acquisitions                -         -           -         -          -        11.7      11.7
                       - disposals                   -         -           -         -          -       (16.5)    (16.5)
Transfers                                            -         -        (455.6)    434.8      (20.8)     20.8        -
Share based payments                                 -         -           -         0.6        0.6        -        0.6
Tax on share based payments                          -         -           -         3.0        3.0        -        3.0
Ordinary shares issued - employee options           0.5      20.3          -         -         20.8        -       20.8
---------------------                             ------    ------    ------     ------     ------     ------     ------
At 28 April 2007                                   46.1     166.2       (420.8)  1,490.2    1,281.7      22.6   1,304.3
---------------------                             ------    ------    ------     ------     ------     ------     ------

    Minority interests for 2006/07 comprise shareholdings in P Kotsovolos S.A.(Kotsovolos) and FotoVista S.A. (2005/06
    comprised shareholdings in The Link Stores Limited and P Kotsovolos S.A.). The transfer between retained earnings 
    and minority interests relates to the fair value remeasurement of a put option held by a minority shareholder as
    described in note 3.

    A transfer of £425.5 million between other reserves and retained earnings has been made during the period. This
    relates to amounts within capital reserves which have been reclassified as available for distribution following 
    approval by the Court on 2 April 2007. A transfer of £20.8 million has been made between minority interests and 
    other reserves to better classify the initial valuation of a put option held by a minority shareholder. A further 
    transfer of £9.3 million has been made between retained earnings and other reserves representing the
    reclassification of the revaluation in 2006/07 of the above put option.


9 Dividends paid and proposed

             ------------------------                                          ---------       ---------       ---------
                                                                               per share  52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
Amounts recognised as distributions to equity
shareholders in the period
- on ordinary shares of 2.5p each
Final dividend for 2004/05                                                        6.22p              -           115.2
Interim dividend for 2005/06                                                      1.92p              -            35.0
Final dividend for 2005/06                                                        6.53p          119.8               -
Interim dividend for 2006/07                                                      2.02p           37.2               -
------------------------                                                       ---------       ---------       ---------
                                                                                                 157.0           150.2
------------------------                                                       ---------       ---------       ---------
Proposed final dividend for 2006/07                                               6.85p          126.4               -
------------------------                                                       ---------       ---------       ---------

As at 28 April 2007, the proposed final dividend for 2006/07 is subject to approval by shareholders at the annual 
general meeting and, accordingly, has not been recognised as a liability in these financial statements.


10 Notes to the cash flow statement

    (a) Reconciliation of operating profit to net cash inflow from operating activities
           -------------------------------------                                               ---------       ---------
                                                                                          52 weeks ended  52 weeks ended
                                                                                           28 April 2007   29 April 2006
                                                                                                £million        £million
           -------------------------------------                                               ---------       ---------
        Operating profit                                                                          97.4           261.9
        Operating loss / (profit) - discontinued operations                                        5.7            (5.3)
        -------------------------------------                                                  ---------       ---------
        Operating profit - continuing operations                                                 103.1           256.6
        Amortisation of acquired intangibles                                                       4.7             1.8
        Amortisation of other intangibles                                                         24.1            23.8
        Depreciation                                                                             109.8           106.5
        Share based payment charge                                                                 2.8             9.0
        Share of post tax results of associates                                                   (2.4)           (0.3)
        Profit on disposal of property, plant & equipment                                         (7.6)           (7.6)
        Profit on disposal of property, plant & equipment arising from restructuring              (4.4)           (9.0)
        Net additions to non-underlying provisions and impairment                                138.1            34.2
       -------------------------------------                                                  ---------       ---------
        Operating cash flows before movements in working capital                                 368.2           415.0
        
        Movements in working capital
        Increase in inventories                                                                 (164.2)          (16.5)
        Increase in trade and other receivables                                                  (11.9)          (11.4)
        Decrease in trade and other payables                                                     165.9            35.7
        -------------------------------------                                                  ---------       ---------
                                                                                                 (10.2)            7.8
        -------------------------------------                                                  ---------       ---------
        Cash generated from operations - continuing operations                                   358.0           422.8
        -------------------------------------                                                  ---------       ---------
 b. Analysis of net funds


----------------  --------    ------    ------    -------       ------      ------    -------    ------
                                                                                 Other non- 
                                      30 April     Cash  Disposals      Acquis-       cash      Exchange  28 April
                                          2006     flow       (ii)   itions (ii) movements     movements      2007     
                                      £million £million   £million     £million   £million      £million  £million
----------------  --------      ------    ------  -------   ------      ------    -------      ------        ------
Cash and cash equivalents       (i)      617.5   (175.2)      -           -          -           (1.8)      440.5
Bank overdrafts                            -       (5.7)      -           -          -             -         (5.7)
----------------  --------      ------    ------  -------   ------      ------    -------      ------        ------
                                         617.5   (180.9)      -           -          -           (1.8)      434.8
----------------  --------      ------    ------  -------   ------      ------    -------     ------       ------
Short term investments                   232.6    (46.9)      -          0.1         -            0.1       185.9   

Borrowings due within one year            (8.8)     6.6      0.1          -        (1.2)          0.4        (2.9)
Borrowings due after more than one year (301.1)     0.5       -           -         9.9           0.3      (290.4)
Obligations under finance leases        (100.6)     0.2       -         (2.0)      (0.1)           -       (102.5)
----------------  --------      ------    ------  -------   ------      ------    -------     ------       ------
                                        (410.5)     7.3      0.1        (2.0)       8.6           0.7      (395.8)
----------------  --------      ------    ------  -------   ------      ------    -------     ------       ------       
----------------  --------      ------    ------  -------   ------      ------    -------     ------       ------
Net funds                                439.6   (220.5)     0.1        (1.9)       8.6          (1.0)      224.9
----------------  --------      ------    ------  -------   ------      ------    -------     ------       ------

    Funds held under trust to fund customer support agreements were £111.2 million (29 April 2006 £193.5 million). 
    Net funds excluding amounts held under trust to fund customer support agreements totalled £113.7 million (29
    April 2006 £246.1 million).

 i. Cash and cash equivalents are represented as a single class of assets on the face of the consolidated balance 
    sheet. For the purposes of the consolidated cash flow, cash and cash equivalents comprise those amounts represented
    on the consolidated balance sheet as cash and cash equivalents, less bank overdrafts (which are disclosed separately
    on the consolidated balance sheet).

ii. Excluding cash and cash equivalents and overdrafts.



11 Post balance sheet events

    On 24 May 2007, following the exercise of a put option by Fourlis Holding SA, the main minority shareholder of 
    Kotsovolos, the Group acquired a further 10% in Kotsovolos for a cash consideration of €22.9 million 
    (£15.6 million). The acquisition increases the Group's total interest in Kotsovolos to 89.1%.
    
    In 2004/05, a co-operation agreement was entered into by the Group with Eldorado Group (Eldorado) to acquire
    Eldorado in tranches up to 100% by 2011.  On 19 June 2007, the directors notified Eldorado that the Group was 
    terminating this option arrangement.

    Details of the dividends proposed but awaiting approval and relating to the current financial period are shown in 
    note 9.


ADDITIONAL INFORMATION

Retail Store data


                                                             Number of stores                   Selling space'000 sq ft
-----------------                               ------------         --------                   --------        -------
                                               28 April 2007    29 April 2006              28 April 2007  29 April 2006
-----------------                               ------------         --------                   --------        -------
Computing
PC World                                                 157              150                    2,505            2,420
The Tech Guys                                              7                1                        8                1
-----------------                               ------------        --------                    --------        -------
UK Computing                                             164              151                    2,513            2,421

PC City Spain                                             29               25                      491              424
PC City France                                            11               11                      190              190
PC City Italy                                             10                7                      166              125
PC City Sweden                                             9                8                      152              136
-----------------                               ------------         --------                   --------        -------
International Computing                                   59               51                      999              875
-----------------                               ------------         --------                   --------        -------
Total Computing                                          223              202                    3,512            3,296
-----------------                               ------------         --------                   --------        -------
Electricals
Currys *                                                 535              568                    4,966            5,005
Ireland                                                   28               21                      281              211
-----------------                               ------------         --------                   --------        -------
UK & Ireland Electricals                                 563              589                    5,247            5,216
-----------------                               ------------         --------                   --------        -------

Elkjop - Norway                                           99               96                    1,191            1,087
Elkjop - Sweden                                           56               51                      985              941
Elkjop - Denmark                                          28               26                      490              447
Elkjop - Finland                                          62               43                      786              667
Elkjop - Iceland                                           3                2                       32               30
Elkjop - Faroe Islands                                     3                3                        9                9
-----------------                               ------------         --------                   --------        -------
Nordic **                                                251              221                    3,493            3,181
-----------------                               ------------         --------                   --------        -------

UniEuro **                                               153              110                    2,505            2,111
Kotsovolos **                                             85               77                      789              671
-----------------                               ------------         --------                   --------        -------
Southern Europe                                          238              187                    3,294            2,782
-----------------                               ------------         --------                   --------        -------

Electro World Hungary                                      7                6                      239              207 
Electro World Czech Republic                              12                8                      393              280 
Electro World Poland                                       5                2                      178               91
-----------------                               ------------         --------                   --------        -------
Central Europe                                            24               16                      810              578
-----------------                               ------------         --------                   --------        -------
-----------------                               ------------         --------                   --------        -------
Total Electricals                                      1,076            1,013                   12,844           11,757
-----------------                               ------------         --------                   --------        -------
-----------------                               ------------         --------                   --------        -------
Total Retail                                           1,299            1,215                   16,356           15,053
=================                               ============         ========                   ========        =======

* Comprises Currys, Currys.digital and Dixons Tax Free.

** Includes franchise stores











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

a d v e r t i s e m e n t