10th Apr 2008 07:01
DSG International PLC10 April 2008 PR 32/08 7.00am, Thursday 10 April 2008 DSG INTERNATIONAL PLC BUSINESS UPDATE DSG international plc, one of Europe's leading electrical specialist retailers,is today updating the market on trading for the 25 week period to 5 April 2008.In addition, the company announces that the first phase of the Chief Executive'sbusiness review will be presented on 15 May 2008. • Total Group sales up 6%, like for like sales down 1% in the period. • Trading environment remains challenging, particularly in the UK, Italy and Spain. • Sales trends are in line with those previously reported on 3 January 2008. • Increased promotional environment has resulted in Group like for like gross margins down approximately 0.8% for the period. • Full year underlying profit before tax expected to be in the range of £200m - £210m. • First phase of business review will be announced on 15 May 2008. John Browett, Chief Executive, commented:- "The trading environment since welast reported has remained challenging across our markets, particularly in theUK, Italy and Spain. Whilst like for like sales patterns are broadly in linewith those we reported over the Christmas period, it is clear that customershave become increasingly promotion and deal driven, impacting gross margins. Going forward it is important that we increase our focus on delivering thevalue, choice and service that our customers demand, particularly in theprevailing difficult economic environment. I will present the first phase of thebusiness review I have carried out since joining DSGi on 15 May 2008." Divisional Commentary The UK & Ireland Electricals business has seen good demand in response topromotions on flat panel televisions, laptops and large white goods,particularly over the Easter period. However demand outside of these promotionshas been lower than expected, with a negative impact on margins. Overall sales in UK Computing remain disappointing, despite reasonable demandfor laptops and games consoles. Sales of stand alone non-hardware products werelower year on year, in line with the trends previously reported. The Nordics, Greece and Central European businesses all delivered satisfactoryperformances over the second half of our financial year. Trading in Spainremains difficult. The performance in Italy remains disappointing, not helped by the difficulteconomic environment. Our e-commerce businesses continue to grow strongly. - Ends - For further information Investor Relations: David Lloyd-Seed, Group Communications Director, DSGi 01727 205065 Press and Media: Mark Webb, Head of Media Relations, DSGi 01727 205019 Laura Cummings Brunswick Group 020 7404 5959 Information on DSG international plc is available at http://www.dsgiplc.com Appendix Like for like sales for the 11 week period to 29 December 2007 and 25 weekperiod to 5 April 2008:- -------------------------------------------------------------------------- 11 Weeks ended 25 Weeks ended 29 December 2007 5 April 2008Sales Like for like growth Like for like growth----------------------------------------------------------------------------- ELECTRICALSUK & Ireland 0% 0%Nordic (1)% 0%Southern Europe (7)% (9)% Italy (11)% (14)% Greece +1% +2%Central Europe n/a n/a-----------------------------------------------------------------------------Total Electricals Division (1)% (1)%-------------------------------------------------------------------------------COMPUTING UK (10)% (9)% International n/a n/a------------------------------------------------------------------------------Total Computing Division (11)% (10)%----------------------------------------------------------------------------------------------------------------------------------------------------------------E-COMMERCE Division(Dixons.co.uk & FotoVista) +31% +29%-------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Group (1)% (1)%------------------------------------------------------------------------------- NOTES: (1) The change in total sales for the Group is in Sterling and exclude discontinued operations. (2) Like for like sales are calculated based on stores that have been open for a full financial year both at the commencement and end of the financial period. Customer support agreement sales are excluded from all UK like for like calculations to remove the distorting effect of the introduction of pay as you go customer support agreements. Chains that are subject to closure have sales excluded as of the announcement date. (3) UK Electricals comprises Currys, Currys.digital and Dixons Tax Free. (4) UK Computing comprises PC World, DSGi Business and The TechGuys. Like for like sales are for PC World only. (5) The numbers of International Computing and Central Europe stores trading are insufficient for a meaningful like for like comparison to be made. (6) E-commerce division comprises Dixons.co.uk and FotoVista. (7) Like for like gross margins are calculated for the Group excluding the e-commerce division. (8) Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable laws, regulations or accounting standards, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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