3rd Jan 2008 07:10
DSG International PLC03 January 2008 3 January 2008 DSG INTERNATIONAL PLC INTERIM TRADING STATEMENT DSG international plc, one of Europe's leading specialist electrical retailers,is today updating the market on trading for the 11 weeks ended 29 December 2007- prior year comparative data is attached in the appendix. -------------------------------------------------------------------------------- 11 Weeks ended 29 December 2007Sales Total growth Like for like growth-------------------------------------------------------------------------------- ELECTRICALS UK & Ireland 0% 0%Nordic +4% (1)%Southern Europe +5% (7)% Italy +3% (11)% Greece +9% +1%Central Europe +19% n/a--------------------------------------------------------------------------------Total Electricals Division +6% (1)%-------------------------------------------------------------------------------- COMPUTING UK (8)% (10)%International +6% n/a--------------------------------------------------------------------------------Total Computing Division (5)% (11)%-------------------------------------------------------------------------------- --------------------------------------------------------------------------------E-COMMERCE Division (Dixons.co.uk &FotoVista) n/a +31%================================================================================Total Group +5% (1)%================================================================================ Group like for like gross margin was down 0.3% driven by promotional activity inweaker consumer environments. Sir John Collins, Group Chairman, commented: "Total Group sales were up 5%, however like for like sales were down 1%reflecting generally weaker consumer environments across many of our markets.Overall trading for this important period, in which over half our annual profitsare usually generated, has been disappointing, particularly in the UK, Italy andSpain. This weaker trading, together with a more cautious outlook for thebalance of the year, means that we now expect full year profits before tax to besome £40 - £50million lower than current expectations. The UK & Ireland Electricals business saw stronger demand in the post Christmassale period. This was driven by promotions around flat panel televisions,laptops and digital imaging, negatively impacting gross margin for the period. Sales in UK Computing were very disappointing with lower demand for laptops inthe pre Christmas gifting period, but good demand for games consoles and digitalphoto frames. Driven by promotions, sales of laptops improved in the postChristmas period. Sales of accessories were lower year on year, in line with thetrends reported in the first half. The Nordics, Greece and Central European electricals businesses all delivered asatisfactory performance over this period. In Italy, strong promotions helped stimulate a better sale period, however theperformance remains disappointing and as a result it is expected that thecarrying value of the goodwill will be reviewed in the full year audit. In Spain, PC City experienced a slowdown in sales in line with the trends seenduring our second quarter. Our e-commerce businesses of Dixons.co.uk and FotoVista performed well withtotal sales up 31% year on year from a strong base." There will be a conference call for investors and analysts at 8.30am thismorning. The dial in number is +44 (0) 845 111 4059. For further information David Lloyd-Seed, Director of Investor Relations, DSGi 01727 205065 Mark Webb, Corporate Media Relations Manager, DSGi 01727 205019 Susan Gilchrist or Laura Cummings Brunswick Group 020 7404 5959 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 in Sterling and exclude discontinued operations. All other figures are in local currency. (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. Operations 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) International Computing comprises PC City in Spain, Italy and Sweden. (6) The numbers of International Computing and Central Europe stores trading are insufficient for a meaningful like for like comparison to be made. (7) E-commerce division comprises Dixons.co.uk and FotoVista. (8) Like for like gross margins are calculated for the Group excluding the e-commerce division. (9) 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. Appendix-------- The table below shows, for comparative purposes only, the total sales and likefor like sales performance for DSG international plc for the 11 week period to30 December 2006:- -------------------------------------------------------------------------------- 11 Weeks ended 30 December 2006Sales Total growth Like for like growth-------------------------------------------------------------------------------- ELECTRICALS UK & Ireland +1% +1%Nordic +33% +13%Southern Europe +3% (3)% Italy (2)% (8)% Greece +17% +7%Central Europe +25% n/a--------------------------------------------------------------------------------Total Electricals Division +9% +2%-------------------------------------------------------------------------------- COMPUTING UK +6% +6%International +18% n/a--------------------------------------------------------------------------------Total Computing Division +8% +4%-------------------------------------------------------------------------------- --------------------------------------------------------------------------------E-COMMERCE Division (Dixons.co.uk only) n/a +156%================================================================================ ================================================================================Total Group +15% +4%================================================================================ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DXNS.L