5th Sep 2013 06:53
LONDON (Alliance News) - Multi-channel electrical retailing and services company, Dixons Retail plc(DXNS.L), Thursday said its multi-channel businesses comprising of UK & Ireland, Northern and Southern Europe, like for like sales increased 4 percent in the first quarter. UK & Ireland like-for-like sales grew 6 percent, in spite of unusual weather conditions. Northern Europe like-for-like sales grew 5 percent, driven by market share gains, while Southern Europe's like-for-like sales decreased 12 percent due to the cooler weather's impact on air-conditioning sales.
Separately, the company said that it entered into an agreement with an electrical specialist retailers, Bimeks, to sell its ElectroWorld operations in Turkey. The deal is expected to close by the end of this calendar year. Dixons Retail expects to receive a cash consideration of about 2 million pounds over two years. For the year to April 2013, the assets being disposed of generated retail operating losses of 9 million pounds and losses before tax of 13.8 million pounds on turnover of 170.7 million pounds and gross assets of 42.3 million pounds from 32 stores, the company said.
In another statement, Dixons said it received an irrevocable offer from a German listed industrial holding company, mutares A.G., to purchase PIXmania S.A.S. Pursuant to the offer, Dixons would pay about 69 million euros cash, which will be ring-fenced to support mutares' plan and for the ongoing funding of the business. In preparing for the offer, mutares have developed a plan to build on PIXmania's pure play ecommerce operations.
Copyright RTT News/dpa-AFX
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