Trading Statement

PR no:07/13

7.00am, 16 May 2013

DIXONS RETAIL PLC

Strong performance across the year

Dixons Retail plc, Europe's leading specialist multi-channel electrical retailer and services company, today announces trading for the fourth quarter and full year to 30 April 2013.

·; Multi-channel businesses (UK & Ireland, Northern and Southern Europe) delivered encouraging performances throughout the year with like for like sales up 7% in the full year.

·; Strong cash generation has enabled us to achieve a year-end net cash position for the first time in a number of years putting the Group in an even stronger financial position.

·; In the fourth quarter we saw very pleasing momentum in these multi-channel businesses delivering like for like sales up 11%:

·; UK & Ireland traded very well benefitting from a stronger offer for customers and achieving our aim of gaining more than our share of the market following the demise of competitors resulting in like for like sales up 13%;

·; Northern Europe also saw very good growth with like for like sales up 14% and further market share gains;

·; Southern Europe performed well given extremely difficult market conditions with like for likes down 5%.

·; Trading at PIXmania continues to be very challenging. We have taken a number of actions through the year:

·; Full management control of the business taken in August 2012;

·; Significant restructuring, exiting from almost half of the countries in which it operates, closure of all stores, exiting non core categories and significantly reducing headcount;

·; Disposals of Webhallen and PLS agreed for a total consideration of approximately £15 million;

·; Work continues to resolve the strategic positioning of the business.

·; Group gross margins down 0.7% in the full year, driven largely by product mix as well as our continued drive for even better value for customers.

·; Group Full year underlying profit before tax expected to be at the top end of market expectations of £75 million to £85 million.

·; The annual non-cash defined benefit pension financing costs of £7.4 million will be reclassified as non-underlying meaning that the consensus range of expectations for the financial year ending 30 April 2013 will rise to £83 million to £93 million.

Sebastian James, Chief Executive, commented:

"This strong year puts Dixons in the best position it has been in for many years. We have worked hard to improve the conversation that we have with our customers and to improve our shops and our prices. This is paying off as customers increasingly choose us when they need electrical products, and - more importantly - tell us that they like what we are doing. I believe that we have a clear business model that allows us to flourish in an internet world. I am very pleased to see us gaining share in nearly all of our multi-channel businesses across Europe and could not be more excited or proud to be part of this team.

It has been a busy time with the start of a profound restructuring of parts of the portfolio, major changes in the competitive landscape, significant cost savings achieved and with the continued drive to transform our stores. But there is still lots to do - we are continuing with more customer initiatives across our brands, on-line and in all of our services operations to make Dixons an even better place to shop. We remain steadfastly focused on sorting out our businesses in more challenged markets and in particular Pixmania. Above all we are enjoying the feeling of a little wind in our sails and we want to make sure that, in spite of continued economic uncertainty, this carries on into next year and beyond."

- Ends -

For further information

David Lloyd-Seed, IR, PR & Corporate Affairs Director, Dixons Retail 01727 205065

Hannah Collyer, Head of Media Relations, Dixons Retail 01727 203041

Tom Burns, Helen Smith Brunswick 020 7404 5959

Investors & Analysts Conference Call

Sebastian James and Humphrey Singer will host a conference call for Investors and Analysts at 8.45am:

Dial in number: +44 (0) 1452 555 566

Conference call ID 70613253

A replay facility will be available after the call using the following details:

Dial in number: +44(0) 1452 550 000

Conference call ID 70613253

Information on Dixons Retail plc is available at http://www.dixonsretail.com

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Sterling and local currency sales

NOTES:

1) Like for like sales are calculated based on stores that have been open for a full financial year both at the beginning and end of the financial period and are calculated using constant exchange rates. Customer support agreement sales are excluded from all UK like for like calculations. Stores closed for refurbishment are excluded during the period of closure. Underlying sales are defined as excluding trading results from business exited/to be exited (including PC City Spain, Equanet, Webhallen and PLS).

2) UK & Ireland comprises Currys, CurrysDigital, Dixons Travel, PC World, combined 2-in-1 Currys and PC World, Harrods concession, operations in Ireland, Dixons.co.uk (closed in October 2012), and Knowhow.

3) Northern Europe comprises the Elkjøp group and ElectroWorld in the Czech Republic and Slovakia.

4) Southern Europe comprises Greece (Kotsovolos), Italy (Unieuro), combined 2-in-1 Unieuro and PC City stores and Turkey (ElectroWorld).

5) Certain statements made in this announcement are forward looking. 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.