10th May 2006 07:01
DSG International PLC10 May 2006 PR 26/067.00am, Wednesday 10 May 2006 DSG INTERNATIONAL PLC TRADING STATEMENT DSG international plc is today updating analysts on trading for the 52 weeks ended 29 April 2006. All figures are based on local currency performance. 24 Weeks ended 52 Weeks ended 29 April 2006 29 April 2006---------------------------------------------- ------------------------Sales Total Like for Total Like for growth like growth growth like growth---------------------------------------------- ------------------------ UK & Ireland Electricals +10% +9% +4% +3%Currys +11% +9% +5% +3%Dixons +4% +8% (2)% +3%Ireland +36% +15% +30% +11% Northern Europe - Elkjop +18% +10% +14% +7% Southern Europe +7% +2% +21% +4%UniEuro +7% +2% +8% +3%Kotsovolos +8% +3% n/a +7% Central Europe - Electro World +20% n/a +11% n/a---------------------------------------------- ------------------------Electricals Division +11% +7% +9% +4%---------------------------------------------- ------------------------ UK Computing - PC World +7% 0% +3 (4)% International Computing - PC City +34% n/a +33% n/a ---------------------------------------------- ------------------------Computing Division +10% 0% +6% (3)%---------------------------------------------- ------------------------ Communications DivisionThe Link Communications Group (21)% (21)% (21)% (25)% ---------------------------------------------- ------------------------Total Group +8% +4% +6% 0%---------------------------------------------- ------------------------ Gross margins across the Group for the full year were in line with last year. NOTES:(1) In the second half, UK retail sales (Currys, Dixons, UK Computing and The Link Communications Group) were +5% in total and +3% like for like.(2) Like for Like sales exclude sales of customer support agreements.(3) Total sales of PC World include PC World Business. Like for like sales are for PC World stores only.(4) Total sales of The Link Communications Group comprise The Link and Genesis Communications. Like for like sales are for The Link stores only.(5) Store numbers for PC City and Electro World were insufficient in the comparative period for a meaningful like for like comparison.(6) The change in total Group sales excludes Codic, the discontinuing residual property operations. John Clare, Group Chief Executive, commented: "The Group delivered a satisfactory trading performance over the year, given a difficult retail environment in the UK. I was particularly pleased with our trading performance in the second half, when good progress was made across most of our operations. In aggregate, the electrical markets across Europe performed slightly better in the second half, led by new technology digital products, including flat panel televisions, MP3s and iPods, laptop computers and satellite navigation equipment. We continued to grow our market share in all countries, confirming the appeal to customers of our retail formula that focuses on advice and support, a wide choice of top brands and market beating propositions. As a result of this trading performance, we now expect our full year underlying profit before tax to be ahead of current market expectations, and in the £312 million - £318 million* range. Looking ahead, we expect strong sales of digital products to continue at least through the period leading up to the World Cup. We remain cautious about the speed of any long term recovery, and much will depend upon wider economic factors in relation to tax, pensions, employment and interest rates. Whatever the economic environment, we remain confident that our focus on serving the needs of our customers, in addition to cost management, margin protection, capital discipline and retail innovation will position us well for further growth." Electricals Division Total sales in the electricals division were up 11% in the second half, and up 9% over the full year. Like for like sales in the second half were up 7%. Currys were up 9% like for like in the second half, with market share gains in major appliances, televisions and computers. Dixons also performed well in its core digital product ranges, and were up 8% like for like in the second half. In the Nordic markets, Elkjop continued to perform well, with like for like sales up 10%. Market share gains were achieved in all Nordic countries. Once again, flat panel television sales were a significant contributor. In Southern Europe, like for like sales were up 2% in the second half, and up 4% over the year as a whole. We continued to gain market share in both Kotsovolos (Greece) and UniEuro (Italy). Like for like sales in Ireland were up 15% in the second half. Total sales in Central Europe were up 20% in the second half as we continued our store opening programme, including our first two stores in Poland. Computing Division Overall trading across Europe continued to be affected by significant levels of price deflation across most computing products throughout the year. As a result, whilst unit sales were very strong, like for like sales in value were down 3% over the year as a whole. However, like for like sales in the second half were flat, supported by very strong sales of laptops. In PC City, the performance in Spain was particularly encouraging, with like for like sales up 3% over the year, at the same time as the Group continued to aggressively expand the store base. Performance in Italy and Sweden was in line with management's expectations, but France was disappointing. Communications Division Whilst the overall performance of The Link continues to be disappointing, with like for like sales down 21% in the second half, an increased focus on new contract connections is beginning to deliver, with these showing a 12% improvement on last year in the fourth quarter. Genesis communications performed in line with expectations. DSG international plc's full year results for the 52 weeks ended 29 April 2006 will be announced on 21 June 2006. * Underlying results include net property profits but exclude non-recurring items (which include net restructuring costs and profits on sale of investments), amortisation of acquired intangibles and net fair value remeasurement gains on financial instruments. - Ends - Maylands Avenue John ClareHemel Hempstead Group Chief ExecutiveHertfordshire HP2 7TG 10 May 2006 For further informationDSG international plcDavid Lloyd-Seed, Director of Investor Relations 01727 205065Hamish Thompson, Director of Media Relations 01727 203 195 / 07702 684290 Information on DSG international plc is available at http://www.dsgiplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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