30th Aug 2007 07:01
DSG International PLC30 August 2007 PR 114/06 7.00am, Thursday 30 August 2007 DSG INTERNATIONAL PLC INTERIM MANAGEMENT STATEMENT DSG international plc is today updating the market on trading for the 16 weeksended 18 August 2007. 16 Weeks ended 18 August 2007 Sales Total growth Like for like growth------------------------- ------------- ------------- ELECTRICALS UK & Ireland +4% +5% Nordic +9% +5% Southern Europe +11% 0% Italy +6% (5%) Greece +20% +11% Central Europe +25% n/a------------------------- ------------- ------------- Total Electricals Division +7% +4%------------------------- ------------- ------------- COMPUTING UK +5% +6% International +22% n/a------------------------- ------------- ------------- Total Computing Division +7% +5%------------------------- ------------- ------------- ------------------------- ------------- ------------- E-COMMERCE Division (Dixons.co.uk &FotoVista) +28%------------------------- ------------- ------------- ------------------------- ------------- ------------- Total Group +11% +6%------------------------- ------------- ------------- * Good Group sales growth, but too early to extrapolate trends for the remainder of the year. * UK and Nordics benefited from poor weather conditions. * Strong sales of flat panel televisions and laptops continue to drive sales growth. * Like for like gross margins across the Group down 0.6% largely driven by promotional activity in the UK to reduce computer hardware stock levels. * 24.8 million shares repurchased for a total consideration of £39.7 million. John Clare, Group Chief Executive, commented: "We have started the year well with total sales up 11%, despite toughcomparables driven by the World Cup last year. New technology products such asflat panel televisions and laptops continue to drive demand, and the white goodsmarket across most of our European businesses has been more encouraging. I am pleased with the performances of the Electricals businesses in UK &Ireland, Nordics, Central Europe and Greece. In UK and Nordics, sales wereboosted by the poor weather conditions, possibly bringing forward consumerspending. PC World delivered strong sales growth, however gross margins have beenmaterially impacted as a result of increased promotional activity to reduce oneoff hardware stock levels that resulted from lower than expected demand forVISTA products. In Italy, total sales, market shares and gross margins continue to improve.However following a good start to the year like for like sales in recent weekshave been impacted by more challenging market conditions. There is a strong pipeline of digital products to excite our customers. Whilstthe year has started well we remain cautious about the outlook for the consumerin the UK and across much of the rest of Europe in a higher interest rateenvironment. The first quarter is a relatively less significant one for theGroup and it is much too early to extrapolate trends out for the rest of theyear, especially with the important peak trading period still ahead. We areconfident that our focus on serving the needs of our customers, retailinnovation in addition to cost, margin and capital management position us wellfor the future." - Ends - For further information David Lloyd-Seed, Director of Investor Relations, DSGi, 01727 205065 Mark Webb, Corporate Media Relations Manager, DSGi, 01727 205019 Information on DSG international plc is available at http://www.dsgiplc.com NOTES: (1) The change in total sales for the Divisions and the Group are inSterling and exclude discontinued operations. All other figures are in localcurrency. (2) Like for like sales are calculated based on stores that have been openfor a full financial year both at the commencement and end of the financialperiod. Customer support agreement sales are excluded from all UK like for likecalculations to remove the distorting effect of the introduction of pay as yougo customer support agreements. Chains that are subject to closure have salesexcluded 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. Likefor like sales are for PC World only. (5) The numbers of PC City and Electro World stores trading are insufficientfor a meaningful like for like comparison to be made. (6) E-Commerce division comprises Dixons.co.uk and FotoVista. Total salesgrowth is not meaningful due to the acquisition of FotoVista in the prior year. (7) Like for like gross margins are calculated for the Group excluding thee-commerce division. (8) Certain statements made in this announcement are forward lookingstatements. Such statements are based on current expectations and are subject toa number of risks and uncertainties that could cause actual results to differmaterially from any expected future events or results referred to in theseforward looking statements. Unless otherwise required by applicable law,regulation or accounting standard, we do not undertake any obligation to updateor revise any forward looking statements, whether as a result of newinformation, future developments or otherwise. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DXNS.L