15th Jan 2009 07:00
PR 04/09
7.00am, 15 January 2009
DSG INTERNATIONAL PLC
INTERIM MANAGEMENT STATEMENT
DSG international plc, one of Europe's leading specialist electrical retailers, is today updating the market on trading for the 12 weeks ended 10 January 2009.
In the 12 week period, total Group sales were down 1% in sterling and like for like sales were down 10%.
In the two week period to 10 January, Group like for likes were up 2%, with a better performance in UK computing and electricals and with Nordics flat.
Gross margins across the Group were down 0.8% year on year, primarily as a result of both the increased proportion of revenue in the sale period as well as a higher mix of televisions and laptops.
The Group remains focused on cash, cutting costs, managing margins and reducing stock.
Further cost reductions in the current year of £20 million in response to trading environment, bringing total cost savings for the year to £95 million.
Careful stock management has resulted in stock levels 16% lower than last year at constant exchange rates.
The Group is operating within its £400 million committed credit facility which is currently undrawn and available, although it is expected that some drawdown will occur in the final quarter, as anticipated.
Renewal and Transformation plan on track:
New format stores continue to perform strongly with sales 15% to 25% ahead of the rest of the chain;
41 PC World, 11 Currys Superstores, 4 Currys.digital, 1 Currys Megastore and 1 trial combined PC World and Currys store all traded through Christmas Peak;
Currys Megastore sales and gross profit contribution exceeded expectations and should generate over £30 million of sales per year.
John Browett , Chief Executive, commented:
"The sales pattern through the period was as we anticipated with customers waiting for the post Christmas sales to purchase discretionary products, particularly televisions and laptops.
Our Renewal and Transformation plans continue to progress well. Early results from the new store formats, which have now traded through Peak, have continued to exceed our expectations and give us confidence that our plans are delivering for our customers.
We expect 2009 to be challenging across most of our markets and are actively planning and managing the business for negative like for likes."
|
12 Weeks ended 10 January 2009 |
|||
|
Sales |
Total growth (Sterling) |
Total growth (Local Currency) |
Like for like growth |
|
UK & Ireland |
|||
|
UK & Ireland Electricals |
(8)% |
(9)% |
(12)% |
|
UK Computing |
(12)% |
(12)% |
(13)% |
|
Nordics |
+4% |
(5)% |
(9)% |
|
Other International |
|||
|
Southern Europe |
+8% |
(11)% |
(14)% |
|
Central Europe |
+7% |
(20)% |
n/a |
|
e-commerce |
+26% |
+6% |
+6% |
|
Total Group |
(1)% |
(8)% |
(10)% |
- Ends -
For further information
David Lloyd-Seed, Group Director of Communications, DSGi 01727 205065
Mark Webb, Head of Media Relations, DSGi 01727 205019
Information on DSG international plc is available at http://www.dsgiplc.com
NOTES:
1) The change in total sales for the Group excludes 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. Operations that are subject to closure have sales excluded as of the announcement date.
3) UK & Ireland Electricals comprises Currys, Currys.digital and Dixons Tax Free as well as the operations in Ireland.
4) UK Computing comprises PC World, DSGi Business and The TechGuys. Like for like sales are for PC World only.
5) Nordic comprises the ElkjØp group which now includes PC City in Sweden.
6) Southern Europe comprises Greece (Kotsovolos and Electro World), Italy (UniEuro and PC City Italy), Spain (PC City Spain), Turkey (Electro World) and PC City France which was discontinued in 2007.
7) Central Europe comprises Electro World in Poland, Czech Republic, Hungary and Slovakia. These are excluded from like for like comparisons as the number of stores trading are insufficient for a meaningful like for like comparison to be made.
8) e-commerce division comprises Dixons.co.uk and PIXmania.
9) Gross margins for the Group now include the e-commerce division.
10) Movements in the financial position, including levels of borrowings, of the Group since the last Interim Report are reflective of the trading performance outlined above. Other than this, there have been no significant changes in financial position.
11) Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future events or results referred to in these forward looking statements. Unless otherwise required by applicable law, regulation or accounting standard, we do not undertake any obligation to update or revise any forward looking statements, whether as a result of new information, future developments or otherwise.
Appendix
The table below provides a restatement, for comparative purposes only, of the total sales and like for like sales performance for DSG international plc for the 12 week period to 5 January 2008 under the new Group structure:-
|
12 Weeks ended 5 January 2008 |
|||
|
Sales |
Total growth (Sterling) |
Total growth (Local Currency) |
Like for like growth |
|
UK & Ireland |
|||
|
UK & Ireland Electricals |
+1% |
+1% |
+1% |
|
UK Computing |
(7%) |
(7%) |
(9%) |
|
Nordics |
+9% |
+1% |
(2%) |
|
Other International |
|||
|
Southern Europe |
+15% |
+6% |
(8%) |
|
Central Europe |
+28% |
+16% |
n/a |
|
e-commerce |
n/a |
n/a |
+31% |
|
Total Group |
+5% |
+2% |
(1%) |
NOTES:
1. Southern Europe excludes PC City France, which was discontinued in 2007. Total growth for Southern Europe including PC City France was up 11% and local currency growth was up 2%. Like for like growth was the same.
2. See also notes to the current year numbers in the main body of the announcement.
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